Major International Business Headlines Brief::: 31 March 2023
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Major International Business Headlines Brief::: 31 March 2023
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ü UK-Asia trade deal to boost UK economy by 0.08%
ü Heathrow strikes to go ahead for 10 days over Easter break
ü Energy bill help cut: ‘We can only work four days'
ü 2 Sisters: 700 jobs go as Anglesey chicken plant shuts
ü Probe into meat 'falsely labelled' as British at supermarkets
ü Elon Musk among experts urging a halt to AI training
ü Warning UK car industry under threat without help
ü Angola Intends to Export Green Hydrogen in 2025
ü Seychelles: IMF and Seychelles Reach Staff-Level Agreement On Resilience Facility and EFF
ü Mozambique: At Montepuez Ruby Mining Go On Strike
ü Rwanda Signs Global Agreement on Tax Transparency
ü Namibia: Opposition Condemn 'Mafia-Style Corporate Governance'
ü BMW bets on design and recycling, not mining, to lower battery costs - finance chief
ü Virgin Orbit: Sir Richard Branson's rocket company lays off 85% of staff
ü GSK licenses companies to make cheap copies of HIV prevention drug
<https://www.cloverleaf.co.zw/>
UK-Asia trade deal to boost UK economy by 0.08%
The UK has signed a deal to join a trade pact with 11 Asia and Pacific nations, three years after it officially left the European Union.
Joining the group will boost UK exports by cutting tariffs on goods such as cheese, cars, chocolate, machinery, gin and whisky, the government said.
However, the government's own estimates show being in the bloc will only add 0.08% to the size of the UK's economy.
The trade area covers a market of around 500 million people.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership - or CPTPP - was established in 2018, and includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Membership of the CPTPP loosens restrictions on trade between members and reduce tariffs - a form of border tax - on goods.
UK to join Asia's trade club - what is the CPTPP?
Together, the 11 members account for about 13% of the world's income and after 21 months of negotiations, the UK has become the first European country to join.
The government said the agreement was the UK's "biggest trade deal since Brexit".
However, the gains for the UK from joining are expected to be modest. The UK already has free trade deals with all of the members except Brunei and Malaysia, some of which were rolled over from its previous membership of the EU. And even with some gains in trading the government only estimates it will add 0.08% to the size of the economy in 10 years. The Office for Budget Responsibility (OBR), which provides forecasts for the government, has previously said Brexit would reduce the UK's potential economic growth by about 4% in the long term.
'Prime position'
But Prime Minister Rishi Sunak said the deal demonstrated the "real economic benefits of our post-Brexit freedoms".
"As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation," he said.
"British businesses will now enjoy unparalleled access to markets from Europe to the south Pacific."
Business and Trade Secretary Kemi Badenoch added joining the CPTPP would "support jobs and create opportunities for companies of all sizes and in all parts of the UK".
The government said other "benefits" of being in the bloc included, a boost to the services sector, by UK firms not being required to establish a local office or be resident to supply a service, meaning they will be on a par with local firms.
The government said it and CPTPP members would make the final legal and administrative steps required for the UK to formally sign in 2023. -bbc
Heathrow strikes to go ahead for 10 days over Easter break
Heathrow airport has said that some passengers may face longer queues to get through security during the Easter holiday period after it was unable to strike a deal with security worker unions over pay.
More than 1,400 security officers in the Unite union, who work for Heathrow Airport, are going ahead with a ten-day strike beginning on Friday. Eleventh-hour talks on Thursday broke down without a resolution. It threatens disruption at the UK's largest airport at the start of the Easter school holidays.
The strike involves security guards at Terminal 5, which is only used by British Airways, and those who check cargo. Unite has accused the airport of a real-terms wage cut.
Heathrow said it had offered a 10% pay increase back-dated to 1 January, plus a lump sum payment (of over £1000).
The airport says contingency plans will keep the airport operating. But these next few days are expected to be very busy as people get away on Easter holidays. And with staffing stretched, getting through security could take longer.
Ahead of the strike, Heathrow asked airlines to stop selling tickets and allow customers to change travel dates. British Airways pre-emptively cancelled 300 flights and Virgin Atlantic confirmed it had limited new ticket sales and introduced a flexible policy.
The strike reduces the number of security staff available to the airport on what is expected to be a very busy weekend.
The airport has said it has contingency plans to keep it operating "as normal" but it is likely it will take passengers longer to get through security.
Heathrow said it was deploying 1,000 extra colleagues and Heathrow's management team to assist passengers.
Heathrow is advising travellers to check the status of their flight before travelling to the airport, arriving at Heathrow no earlier than two hours before short-haul flights and three hours before long-haul flights, and being ready for security.
It says passengers will only be permitted to go through security with two items of hand luggage, to help the flow.
The aviation industry more broadly is under pressure from the government and the industry regulator to avoid a repeat of last year's Easter's queues, delays and cancellations, which were largely caused by staff shortages.
A leaked letter to businesses from the Civil Aviation Authority and the Department for Transport, seen by the BBC, says it would be unacceptable for consumers to face the same level of disruption this year.
Airlines and airports have told the BBC they are confident of having enough staff in place this time round, although external factors such as strikes in France affecting air traffic control could cause issues.-bbc
Energy bill help cut: ‘We can only work four days'
Firms have warned they have had to cut hours due to high energy bills, ahead of government help being scaled back.
>From Saturday, firms will get a discount on wholesale prices, as the government said the current scheme which caps costs was too expensive.
The boss of knitwear manufacturer Jack Masters in Leicester told the BBC it had already shifted to a four-day week after its annual energy bill tripled.
"We're stuck. We want to produce more but it'll cost more," the firm said.
Business groups have warned thousands of firms may have to shrink or close altogether when the level of support becomes less generous.
In 2021, Jack Masters said it was spending around £60,000 a year on energy for the business, it is now looking at an annual bill of between £180,000 to £200,000.
"We've cut back on the number of days we're switching on our gas boiler and we've had to reduce staff shifts", said Snahal Patel, the managing director of the family run firm, which specializes in making Christmas jumpers.
The Treasury says that under the new scheme, bills will automatically be discounted by up to £6.97 per megawatt hour (Mwh for gas bills and up to £19.61 per Mwh for electricity)
Heavy users of energy like steel and glass makers will get a larger discount than other sectors.
Mr Patel said his firm has benefitted from government support, but said his bills were still unsustainably high and threaten the future growth of the business.
"What are we going to do over the next 12 months? I think we're going to reduce investment across the board, and I doubt we'll take any new staff on unless we get some really big new orders", he said.
"Energy bills leave us with absolutely nothing"
Shaf Islam
In Leicester city centre, Shaf Islam is also grappling with the impact of high energy costs for his restaurant, Chutney Ivy. His bill has quadrupled, from £1,000 in 2021, to around £4,400 this year.
"It leaves us with absolutely nothing", he said.
"It puts pressure on us when other big bills are due like VAT. And we're dealing with huge food price increases at the same time," he said.
"We also can't decorate the restaurant or buy new furniture, which we'd like to do", he added.
Late last year, gas and electricity prices were so high that Shaf jumped at the chance to keep costs down by signing up to a deal at a lower rate.
Since then, wholesale energy prices have fallen substantially, although they're still high historically, and it has left Mr Islam locked into his expensive contract for a year.
"Prices were all over the place last year. At one point they were eight times what I was paying," he said.
"We leapt on a contract that offered us just four times what I was paying. But now prices have plummeted and I feel trapped," he added.
Mr Islam would like the opportunity to renegotiate his contract, and he's not alone. The Federation of Small Businesses (FSB) estimates that over 300,000 firms who locked into expensive contracts last year may have to downsize, restructure, or even close in the coming months.
It is urging energy companies to show leniency to firms stuck on high contracts.
"There's much that could and should be done rather than leaving small firms high and dry," said Tina McKenzie, policy chairwoman at the FSB.
"Allowing the most vulnerable small businesses to renegotiate or 'blend and extend' their energy contacts to be better reflect wholesale energy prices is the least the government and energy suppliers could do", she added.
A spokesperson for the government said: "Companies large and small will benefit from the baseline discount through our new energy bills scheme and do not need to apply for it, and a higher level of support will be provided to the most energy and trade intensive businesses of all sizes."
Energy UK, which represents energy firms, said they were continuing to work with regulator Ofgem, the government and business groups on the issues.
"It's a commercial issue for suppliers when contracts have been agreed and signed and energy already purchased - but suppliers are trying to come up with innovative solutions that will help customers afford their bills," it said.-bbc
2 Sisters: 700 jobs go as Anglesey chicken plant shuts
A chicken processing plant is closing its gates for the last time after more than 50 years, causing 700 job losses.
The 2 Sisters poultry giant announced plans to shut down operations at Llangefni, Anglesey, in January.
Despite a taskforce setup in a bid to save the factory, its owners confirmed it would shut at the end of March.
Some workers said the closure was a "crying shame" but others remain optimistic the local economy will grow in other sectors creating new jobs.
When the decision was first made in January, Anglesey council's leader, Llinos Medi described the move as a "devastating blow".
It is a view shared by Des Edwards, who has worked night shifts as a hygiene operative for the past 10 years.
He said: "It's a crying shame - it really is."
Now 58, he said he was trying for other work, but it was all off Anglesey.
"There's nothing whatsoever on the island. It's really getting worse, as time goes by," he said.
"Who's going to employ someone who is 58 years of age that's going to retire at 67. They'd rather employ someone young."
Mr Edwards fears there will be "nothing on the island whatsoever" for his two young grandchildren once they reach working age.
Friend and colleague Vince Williams has been a mechanical fitter at the factory for two years.
"In the beginning I was a bit gutted, but at least we know what is happening. You've just got to go on with life," said the 55-year-old from the town.
"Life doesn't stop because 2 Sisters has finished. You've just got to get on with it, and go to the next chapter in your life."
Freeports for Wales named
What does Wales sell to the world?
Like others, he has concerns for what the future holds for the island.
"So many big companies have closed over the last 20 years," he said, pointing to Anglesey Aluminium at Holyhead and the Eastman Chemical Company at Peboc among others.
He said the island needs new investment if the economy is to survive.
During the official consultation period, the union Unite accused 2 Sisters of failing to engage with the Welsh government, UK officials and the union to actively save the plant from closure.
But the company insisted the Llangefni site remained unviable.
"The facts of the matter are the site is old - it's over 50 years old. It's small, it's inefficient, the transport costs are too high," said 2 Sisters chief executive Ronald Kers, when the decision was first taken back in January.
"If there was an easy solution, we would have definitely explored it in more detail."
The company has offered to relocate some of the workforce to its other sites, including its largest poultry site at Sandycroft on Deeside in Flintshire.
The move might be attractive for more mobile members of staff, especially for a large number of predominantly European workers.
But on the island, the focus has turned to helping those who still need to find work get the support they need.
An employment and advice hub has been running at the nearby Bryn Cefni Business Centre since the consultation started.
Coleg Menai specialises in vocational training, especially in engineering, technology and health and social care. It is part of the taskforce set up to help workers.
"Our hearts go out to the families that have been affected by the sad closure," said the college principal, Aled Jones-Griffith.
"We will work with them to see if we can identify new opportunities for them, or if we can identify re-skilling opportunities for them."
He is convinced there are opportunities on Anglesey, saying it is not "all doom and gloom".
It is a view shared by some of the younger students on the campus.
Cai Pritchard is 18, and studying TV and film production at Coleg Menai.
"Young people tend to choose jobs and careers that are more relevant to their interests - rather than skills that have been pointed out by other people," he said.
"Recently, there's a studio opened, Aria (in Llangefni), and that means there will be a bunch of film productions coming up which doesn't normally happen in north Wales.
"It means creative opportunities for young people."
Carly Hughes, 20, wants a career in health and social care. She said it was a profession that is in great demand.
"The 2 Sisters food group is devastating, especially for Llangefni, because there are a lot of jobs that have gone.
"But I do think there are various job opportunities on the island for people. I do think the future is brighter."
Irish ferries roll on roll off ferry Ulysses unloads as Stena Adventurer arrives in Holyhead port on 2 January
In just the past week, the decision was taken to name Holyhead as one of Wales' two new Freeports, projects that are setting out to create 20,000 jobs and investment worth £5bn.
Last year, Stena Line UK acquired the former site of Anglesey Aluminium for plans to boost its operations at the Port of Holyhead.
Work is also continuing on developing a hydrogen energy hub on the island.
Off-shore, the Morlais tidal energy project is continuing to progress - it received one of the last EU grants worth £31m last year.
These are all projects with the potential to provide a new generation of high-skill, well-paid jobs in years to come.
But that may come as little comfort to many of those walking out of the gates of 2 Sisters on Friday, without work and wondering what the next few weeks will bring.-bbc
Probe into meat 'falsely labelled' as British at supermarkets
A criminal investigation is under way into allegations that a rogue meat supplier falsely labelled huge quantities of foreign pork as British.
The Food Standards Agency is also looking into claims that the firm also mixed rotten pork with fresh meat.
It is understood the meat may have ended up in many UK supermarkets.
Farmers Weekly, which first reported the story said that the company was passing off industrial scale quantities of foreign pork as British.
It said this may have been in products up until at least 2020 and could have been included in many items such as ready meals, quiches and sandwiches sold in a number of UK supermarkets, with schools, hospitals, care homes and prisons also indirectly supplied.
The Food Standards Agency is not naming the business involved whilst it continues to gather evidence and so as not to prejudice any possible future action by the courts.
Based on the investigation so far, the FSA said "There is no indication that food is unsafe or there is an increased risk" to consumers.
"Criminal investigations take time and need to be done with due process and fairness. The FSA will work tirelessly on behalf of consumers to ensure that this criminal investigation is done to the highest possible standards," Emily Miles, the chief executive of the Food Standards Agency added.
Retail industry lobby group, the British Retail Consortium said it could not comment on an ongoing investigation.
"Whilst we cannot comment on an ongoing investigation, retailers will support the FSA with its investigation into the individual supplier in question," it added.
It is understood that the Food Standards Agency's National Food Crime Unit (NFCU) started its initial investigation into the firm in September 2021.
bbc
Elon Musk among experts urging a halt to AI training
Key figures in artificial intelligence want training of powerful AI systems to be suspended amid fears of a threat to humanity.
They have signed an open letter warning of potential risks, and say the race to develop AI systems is out of control.
Twitter chief Elon Musk is among those who want training of AIs above a certain capacity to be halted for at least six months.
Apple co-founder Steve Wozniak and some researchers at DeepMind also signed.
OpenAI, the company behind ChatGPT, recently released GPT-4 - a state-of-the-art technology, which has impressed observers with its ability to do tasks such as answering questions about objects in images.
The letter, from Future of Life Institute and signed by the luminaries, wants development to be halted temporarily at that level, warning in their letter of the risks future, more advanced systems might pose.
"AI systems with human-competitive intelligence can pose profound risks to society and humanity," it says.
The Future of Life Institute is a not-for-profit organisation which says its mission is to "steer transformative technologies away from extreme, large-scale risks and towards benefiting life".
Mr Musk, owner of Twitter and chief executive of car company Tesla, is listed as an external adviser to the organisation.
Advanced AIs need to be developed with care, the letter says, but instead, "recent months have seen AI labs locked in an out-of-control race to develop and deploy ever more powerful digital minds that no-one - not even their creators - can understand, predict, or reliably control".
The letter warns that AIs could flood information channels with misinformation, and replace jobs with automation.
Is the world prepared for the coming AI storm?
The letter follows a recent report from investment bank Goldman Sachs which said that while AI was likely to increase productivity, millions of jobs could become automated.
However, other experts told the BBC the effect of AI on the labour market was very hard to predict.
Outsmarted and obsolete
More speculatively, the letter asks: "Should we develop non-human minds that might eventually outnumber, outsmart, obsolete [sic] and replace us?"
Stuart Russell, computer-science professor at the University of California, Berkeley, and a signatory to the letter, told BBC News: "AI systems pose significant risks to democracy through weaponised disinformation, to employment through displacement of human skills and to education through plagiarism and demotivation."
And in the future, advanced AI's may pose a "more general threat to human control over our civilization".
"In the long run, taking sensible precautions is a small price to pay to mitigate these risks," Prof Russell added.
But Princeton computer-science professor Arvind Narayanan accused the letter of focusing on "speculative, futuristic risk, ignoring the version of the problem that is already harming people".
'Slow down'
In a recent blog post quoted in the letter, OpenAI warned of the risks if an artificial general intelligence (AGI) were developed recklessly: "A misaligned superintelligent AGI could cause grievous harm to the world; an autocratic regime with a decisive superintelligence lead could do that, too.
"Co-ordination among AGI efforts to slow down at critical junctures will likely be important," the firm wrote.
OpenAI has not publicly commented on the letter. The BBC has asked the firm whether it backs the call.
Mr Musk was a co-founder of OpenAI - though he resigned from the board of the organisation some years ago and has tweeted critically about its current direction.
Autonomous driving functions made by his car company Tesla, like most similar systems, use AI technology.
The letter asks AI labs "to immediately pause for at least six months the training of AI systems more powerful than GPT-4".
If such a delay cannot be enacted quickly, governments should step in and institute a moratorium, it says.
"New and capable regulatory authorities dedicated to AI" would also be needed.
Recently, a number of proposals for the regulation of technology have been put forward in the US, UK and EU. However, the UK has ruled out a dedicated regulator for AI.-bbc
Warning UK car industry under threat without help
The UK's car sector could disappear unless the government follows the US and EU in helping with the switch to electric, an industry veteran says.
It was "probable" car firms would leave the UK without a huge subsidy package similar to the billions in support the US is providing, Andy Palmer said.
The sector is facing the "last throw of the dice", Mr Palmer added, who has had senior jobs at Nissan and Aston Martin.
The chancellor has said the UK will not go "toe-to-toe" with the US and EU.
Jeremy Hunt told the Times newspaper that the UK's approach to attract investment would be "better".
Mr Palmer is now chairman of electric battery firm InoBat, but has previously worked as chief operating officer at Nissan and is a former chief executive of Aston Martin.
He told the BBC's Today programme that the UK was "managing decline" in its car-making industry, but had a "last opportunity" to boost the sector and jobs in the move to electric vehicles.
However, he warned huge subsidy packages were needed for UK-based companies, similar to such schemes announced in the US and being consulted on currently by the EU.
If such schemes are not created, Mr Palmer said, it was "not only possible, it's probable" that car manufacturers currently based in the UK would leave and go elsewhere.
"You are into a period of either you compete... or you manage the decline of the British industry down to fundamentally next to zero," he said.
"We have the last throw of the dice in order to bring back some part of that industry, if we don't then we have to look for alternative employments for the 820,000 people."
The warning comes after the US announced the Inflation Reduction Act (IRA), which offers billions of dollars in subsidies and tax credits to US businesses producing greener technologies, including electric vehicles, renewable electricity and sustainable aviation fuel.
The EU has responded with plans for a Net Zero Industry Act to increase its subsidies for green industry.
The UK government told the BBC officials were engaging with the US administration "to address serious concerns" about the IRA, as well as talking to other countries across the world "who are similarly affected".
The government said it would "continue to robustly defend the interests of UK industry".
The latest comments come after Mr Hunt said the UK would not go toe-to-toe with its allies and get involved what he called "some distortive global subsidy race".
"Our approach will be different - and better," Mr Hunt said. "With the threat of protectionism creeping its way back into the world economy, the long-term solution is not subsidy but security."
We are going to be hearing a lot about the US Inflation Reduction Act (IRA) in the coming months.
Today, the chancellor wrote sceptically about it, saying that the UK would not engage in a trade war on green subsidies.
Some in the industries involved are deeply concerned that the US is cornering markets for once-in-a-generation investments which will transform the geography of manufacturing across the world.
A similar strategy is also being tried in both the US and EU for restoring the production of critical microchips from East Asia.
The UK's role in this changing world is unclear. The chancellor told MPs on Wednesday that the UK's full response to IRA would be made in full after the EU responded. Andy Palmer's response about the entire industry under threat without "a British Inflation Reduction Act" shows how significant the stakes are.
The car industry is undergoing a massive transformation as governments across the world look to move away from using fossil fuels, meaning traditional petrol and diesel vehicle combustion engines are to become a thing of the past.
A part of plans to cut carbon emissions, the government has said sales of new petrol and diesel cars will be banned in the UK by 2030.
But there are concerns that firms are not getting enough state support in the journey to electric cars becoming mainstream.
In recent years, Honda has closed its Swindon car plant, with the loss of about 3,500 jobs. However, BMW is understood to preparing to invest up to £600m in its Mini plant in Cowley, Oxford, for building electric models, though no final decision has been announced.
'Don't squander advantage'
In January, the number of new cars made in the UK sank to its lowest level since 1956, but in February car production rose 13.1% on the same month in 2022.
The SMMT said Britain had a "firm foundation" for expanding the production of electric vehicles, but warned "we must not squander these advantages".
The government said it was providing support through existing schemes.
It said Nissan and Envision investing £1bn to create an electric vehicle factory in Sunderland was an example of car manufacturers "choosing the UK thanks to our competitive investment environment".
But Mr Palmer, who played a role in the launch of the Nissan Leaf car, said firms were "bound to look at where the biggest subsidies are coming from" while making investment decisions.
"If you're not prepared to compete, then you'll have to start managing decline," he said.-bbc
Angola Intends to Export Green Hydrogen in 2025
Luanda — The minister of Energy and Waters, João Baptista Borges, has announced that Angola intends to export green hydrogen in 2025, in the form of ammonium, an extremely useful product in agriculture.
Speaking at the 9th edition of the Energy Transition Dialogue in Berlin, Germany, held on March 28,29, the minister said that in terms of employment, the country could generate more jobs, with the creation of a new hydrogen industry.
According to a press release tha ANGOP had access Thursday, João Baptista Borges said the country could take advantage of the human capital and knowledge of the oil industry to qualify this new sector.
In the 9th edition of the Energy Transition Dialogue, the minister participated in the panel on "Industry Decarbonization - Success Stories and Challenges of the Global Hydrogen Economy", as well as had two meetings with heads of companies Commerzbank and ILF, accompanied by the Angolan ambassador to Germany, Balbina da Silva.
Held under the motto "Energiewende - Securing Green Future" , at least 2000 people from more than 130 countries participated in the event, including 50 Ministers of Foreign Affairs and Energy and Secretaries of State and 100 speakers.
The Berlin Energy Transition Dialogue was created in 2015 and has become one of the most important in the world on the global energy transition.
It is a joint initiative of German institutions such as the Federation of Renewable Energies, the Solar Association and the Energy Agency, with the support of the German Federal Government.
-ANGOP.
Seychelles: IMF and Seychelles Reach Staff-Level Agreement On Resilience Facility and EFF
Seychelles News Agency (Victoria)
Seychelles will be assisted with approximately $46.19 million under a newly negotiated Resilience and Sustainability Facility (RSF) and $56.96 million under a new Extended Fund Facility (EFF) with the International Monetary Fund (IMF).
IMF staff and the Seychellois authorities reached a staff-level agreement on a successor to the two facilities following a mission in Seychelles led by Calixte Ahokpossi, from March 16-29 to review the previous EFF which will end in June.
The two programmes will support the island nation's economic policies and reforms. Seychelles is the second African country to reach a staff-level agreement to access the Resilience and Sustainability Trust (RST).
The IMF chief of mission, Calixte Ahokpossi, told reporters on Wednesday that "to address long-term challenges, the authorities have requested access under the new facility, which helps countries make progress on their climate agenda, and we know that Seychelles is that forefront of climate policies."
He added that "the new EFF would support the authorities in their efforts to build on the progress in macroeconomic, fiscal, and financial reforms started under the EFF that was approved in July 2021."
The agreement is subject to approval by the IMF management and executive board and consideration by the board is tentatively scheduled for May 2023.
Seychelles' finance minister, Naadir Hassan, explained that as the previous programme will end this year, a new EFF was negotiated to help finance new reforms.
"We have negotiated for a smoother pathway to reach our targeted debt to GDP ratio, where initially we had to reach 50 percent by 2026, but now we have to move it to 2028. This will give us more space to be able to invest, especially where it concerns the country's infrastructures," Hassan added.
The International Monetary Fund also reviewed the progress made by Seychelles from the previous EFF and Ahokpossi said the IMF is satisfied.
"The government has made significant progress in implementing policies and reforms set out in the current IMF-supported EFF programme and in restoring macroeconomic balances," he said.
"Quantitative performance has been strong and the broader structural reform agenda has also proceeded at a good pace. The current programme is expected to be cancelled and replaced by the new one," said Ahokpossi.
The IMF's report after the review states that despite a difficult global environment, tourism recovered strongly in 2022, with arrivals hitting about 87 percent of pre-pandemic levels.
>From 5.4 percent in 2021, GDP growth accelerated to 9 percent and this year the economy is anticipated to grow at a reduced rate of 4.3 percent. The challenging global environment, however, exposes this outlook to risks on the downside linked to tourism.
"Inflation in Seychelles was relatively low in 2022, reflecting the lagged effects of currency appreciation as well as base effects. After averaging 9.8 percent in 2021, inflation declined to 2.6 percent on average in 2022. For 2023, inflation is expected to keep moderating and decline to 1.4 percent on average in 2023," the report added.
In contrast to deficits of 3.2 percent in 2021 and 15.2 percent in 2020, last year Seychelles reported a primary fiscal surplus of 0.7 percent of GDP.
Mozambique: At Montepuez Ruby Mining Go On Strike
Maputo — A group of workers at Montepuez Ruby Mining (MRM), in the northern Mozambican province of Cabo Delgado, went on strike on Tuesday, demanding a wage increase and better working conditions.
According to a note from the company, the stoppage interrupted a number of activities at the mine, and the strikers "prevented colleagues who did not join the strike from working, which led the company to take security measures to protect the camp, through the Mozambican Police'.
The company warned that wildcat strikes only benefit "the illegal miners operating in the area, since the protection mechanism of the project was effectively diverted to the management of the stoppage'.
According to the note, this group of workers has not followed the established trade union process for issues of this type. MRM says it hopes that, "by working with the recognized union and state labour authorities, a solution to the situation will be found soon.'
The document also points out that MRM workers have a recognized union, which represents their interests, but this time no formal communication was made about the strike.
"We were taken by surprise with a letter from the group that only reached MRM on 27 March', the company said. "We were forced to inform the district, provincial and national authorities about the strike, which is considered illegal'.
MRM fears that the losses resulting from the stoppage will affect the results of the next ruby auction. The ruby auctions are one of the major sources of tax revenue in Cabo Delgado.
The MRM note says that the welfare of the company's workforce is of utmost priority, which has been proved over the years in gestures such as maintaining jobs and paying wages throughout the year-long interruption of activities due to the Covid-19 pandemic.
Rwanda Signs Global Agreement on Tax Transparency
Rwanda, on Tuesday, March 28, signed the Multilateral Competent Authority Agreement (MCAA); a framework that provides an efficient mechanism for information exchange among member countries of the Global Forum (GF) on Transparency and Exchange of Information For Tax Purposes.
With 166 members, the Global Forum, run by the Organization for Economic Cooperation and Development (OECD), is the world's leading international body working on the implementation of global transparency and exchange of information standards.
Under the agreement, countries exchange key information and are able to trace and fight tax malpractices and crimes, among others, the tax evasion and illegal financial activities, Rwanda Revenue Authority (RRA) said.
The multilateral framework agreement, signed by the RRA Commissioner General, Pascal Bizimana Ruganintwali, marks another step towards achieving full tax transparency.
Ruganintwali said the signing underscores Rwanda's commitment to the fight against tax evasion and illicit financial flows as it positions itself as a regional business hub.
We want to become a trusted financial hub, and a destination of foreign direct investments. We want investment banks to establish operations in Rwanda and they have to be assured that tax transparency is guaranteed and thus, the financial transactions are safe," he said.
"Due to terrorism financing and money laundering, today, the world is vigilant and no one is willing to take the risk of investing in a country where there are such illegal financial transactions. Therefore, we have to assure investors that Rwanda works according to global standards". Among other assurances, the government has set up the Financial Intelligence Centre (FIC), which is tasked with tracking the illicit financial flows among other things. In the same spirit, a suite of laws is being finalized and it is designed to increase tax transparency and curb tax evasion by complex structured businesses.
According to the UN, offshore tax evasion and illicit financial flows rob Africa of an estimated $88 billion each year, money that should be invested for development.
The Global Forum (GF)'s member countries are required to implement GF exchange of information standards and fight against illicit financial flows and terrorism financing in their territories.
In 2017, Rwanda joined the Global Forum. Ruganintwali said Rwanda has been working tirelessly to implement the standards overseen by the OECD.
The 166 member countries of the Global Forum have implemented robust standards that have prompted an unprecedented level of transparency in tax matters.
In 2022, Rwanda ratified the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), to which 147 countries are signatory.
The signed agreement (MCAA) provides an efficient mechanism for the automatic exchange of financial account information, in the spirit of expanding the information exchange relationship which was in place based only on bilateral agreements. This is another good step in a series of measures to achieve complete tax transparency in Rwanda, Ruganintwali said.
Though Rwanda was exchanging information on request for tax purposes with treaty partners using double tax avoidance agreements; which are bilateral agreements, it can now exchange information on request with any of the member countries of the Global Forum signatory of the MAAC from 1st January, 2023 by the use of the MAAC which is a multilateral agreement.
In 2025, the Rwandan fiscal authority will start exchanging information for tax purposes in an automated way; that will be the implementation of the Automatic Exchange of Information (AEOI) and from that time, member countries will be able to access the financial account information for their tax residents without prior request.
New Times.
Namibia: Opposition Condemn 'Mafia-Style Corporate Governance'
The recent allegations of impropriety and controversies surrounding the leadership of the National Petroleum Corporation of Namibia (Namcor) have sparked widespread concern.
Two opposition parties this week expressed dismay and suggested probes into the embattled State-owned fuel company.
In particular, the Popular Democratic Movement (PDM) has called for the suspension of Namcor's managing director Imms Mulunga within 48 hours.
This follows a New Era report that the finance minister Iipumbu Shiimi on Tuesday summoned Namcor board members to an impromptu crisis meeting over the mess the parastatal finds itself.
During the meeting, it was reported that Shiimi expressed strong disapproval over the improprieties at Namcor, stressing that all outstanding procedural matters should be resolved before the week's end.
One such matter includes the potential disciplinary action to be taken against Mulunga.
The controversies stemmed from allegations of misconduct within the company, including Mulunga's purported involvement in a payment exceeding N$100 million for two Angolan oil blocks that were executed without board authorisation.
The subsequent disputes between Mulunga and the board's chairperson Jennifer Comalie, further fuelled public scrutiny.
Comalie's recent arrest with drugs, valued at N$57 000, in her official vehicle before a meeting, allegedly discussing potential disciplinary measures against Mulunga, further complicated matters.
She was subsequently released on bail on Tuesday.
In a press statement yesterday, oppositions argues that these scandals will put the entity's integrity and reputation at stake.
They expressed concern over the management of the country's oil resources and the need for urgent investigation and reform to improve transparency and governance at Namcor.
The PDM has promised to initiate a parliamentary investigation into what it calls "mafia-style cooperate governance" [Sic] at Namcor.
"The motion will move to have this investigation referred to a relevant Parliamentary Standing Committee, fully invoking the powers of said committees to subpoena witnesses to appear before it, as provided for by the Powers, Privileges and Immunities of Parliament Act 17 of 1996," the party said yesterday.
Meanwhile, the Independent Patriots for Change (IPC) has called for accountability for any wrongdoing and public disclosure of investigation findings.
"The findings of the investigation must be made public to restore the public's trust in the company and ensure that Namibia's natural resources are being used to benefit its people and promote sustainable economic development," reads the IPC statement.
Attempts to get comments from Comalie and Mulunga proved futile, as their phones rang unanswered.
They also did not respond to questions sent to them.
However, the board's deputy chair, Tim Ekandjo, told New Era to wait for its pronouncement "before reporting rumours that are not true".
New Era.
GSK licenses companies to make cheap copies of HIV prevention drug
(Reuters) - British drugmaker GSK (GSK.L) has signed deals with three companies allowing them to make inexpensive generic versions of its long-acting HIV preventive medicine for use in lower-income countries, where the majority of new cases occur.
The injected drug cabotegravir was approved by regulators in the United States in late 2021. Last July, GSK announced a program with the United Nations-backed healthcare organisation, the Medicines Patent Pool, which aims to get poor countries access to new HIV therapies far earlier than they did for previous HIV medicines.
During the HIV/AIDs epidemic in Africa in the 1990s and early 2000s, in which many millions of people died, treatments used widely in wealthy countries were unavailable on the continent.
GSK said last year the new program could result in the generic form of its injection being available in lower-income countries beginning in 2026.
The drugmaker's HIV treatment division, ViiV Healthcare, said in a statement on Wednesday it had issued voluntary licenses - waiving intellectual property rights - to Aurobindo Pharma (ARBN.NS) , Cipla (CIPL.NS) and Viatris (VTRS.O), which will manufacture the generic versions of cabotegravir.
The generics will be supplied in 90 countries, subject to regulatory approvals there, the statement said.
Indian drugmaker Cipla will make the injections in India and has plans to manufacture in South Africa, which is trying to grow its drugs manufacturing industry to meet the continent's needs and reduce a dependency on imports that was exposed by the COVID-19 pandemic.
Pre-exposure prophylaxis (PrEP) is an effective way for an at-risk HIV-negative person to reduce the risk of infection. But until recently, PrEP was only available in pill form. GSK's product is the first non-pill option.
Describing the licences as "welcome" in a statement, Médecins Sans Frontières (MSF)/Doctors Without Borders said that GSK should provide more information on the current availability and price of the drug in low- and middle-income countries while waiting for generic production to begin.
The medical NGO said it had been in negotiations with ViiV for months to get enough supplies of the drug, but was still unable to meet demand.
"ViiV should be ashamed: it has a lifesaving HIV prevention drug at its fingertips but is failing to ensure there’s enough available for people who need it," said Dr. Helen Bygrave, chronic disease adviser for MSF's access campaign.
A GSK spokesperson said the company shared MSF's ambition to enable broad access to the drug.
"We are moving at pace to increase capacity... to meet the demand," the spokeperson said, adding that it planned to update partners including MSF "in the coming weeks" to share its progress.
Virgin Orbit: Sir Richard Branson's rocket company lays off 85% of staff
British billionaire Sir Richard Branson's rocket company Virgin Orbit says it will lay off 85% of staff after failing to secure new investment.
The firm will also cease operations for the foreseeable future, according to media reports.
It comes weeks after the company paused operations in an apparent attempt to shore up its finances.
Earlier this year, a Virgin Orbit rocket failed to complete the first ever satellite launch from UK soil.
The company's shares plunged by more than 44% in after-hours trading in New York on Thursday.
In a US regulatory filing, Virgin Orbit said it made the decision "in order to reduce expenses in light of the company's inability to secure meaningful funding."
The layoffs will impact approximately 675 employees who "are located in all areas of the company."
It said that Sir Richard's investment firm Virgin Investments has injected $10.9m (£8.8m) into Virgin Orbit "to fund severance and other costs related to the workforce reduction".
Virgin Orbit said it expects payments to laid off staff and other costs to total around $15m.
It comes amid media reports that the company's boss has told staff the firm will suspend its activities until further notice.
"We have no choice but to implement immediate, dramatic and extremely painful changes," Virgin Orbit chief executive Dan Hart said at a meeting with employees, according to CNBC, which first reported the news.
Virgin Orbit did not immediately respond to a BBC request for comment.
The firm, which was founded in 2017, has not turned a profit as a public company.
It develops rockets to carry small satellites and is part of Sir Richard's business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic.
In January, Virgin Orbit attempted the first ever satellite mission launched from UK soil in January, which ended in failure.
The company's LauncherOne rocket - which was launched from the Boeing 747 aircraft Cosmic Girl - reached space but fell short of reaching its target orbit.
The mission was billed as a milestone for UK space exploration. It was hoped it would mark a major step forward in fulfilling an ambition to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports.
Earlier this month, Virgin Orbit said it was "initiating a company-wide operational pause" and "anticipates providing an update on go-forward operations in the coming weeks."-bbc
BMW bets on design and recycling, not mining, to lower battery costs - finance chief
(Reuters) - BMW (BMWG.DE) is betting on efficient design and recycling to bring down battery costs and is steering clear of investing in mines, its finance chief said on Friday, setting it apart from some competitors digging deep into the supply chain.
"We don't think it is right to invest in mines. We view it as more important to get back raw materials from cars and other products," finance chief Nicolas Peter said in an interview.
BMW has its own battery cell research centre in Germany, but has left large-scale development to partners, placing multi-billion-euro orders with CATL (300750.SZ) and EVE Energy (300014.SZ) to produce battery cells in China and Europe.
Bringing down battery costs, most of which come from raw materials, is the key challenge for carmakers attempting to generate profits from EVs equivalent to those reaped from combustion engine cars, a target BMW hopes to reach with its "Neue Klasse" EV-only line launching mid-decade.
Some, like Volkswagen, are betting big on expanding their own battery production and investing in mines to secure control down the supply chain.
Mercedes-Benz said on Thursday it had made a "fundamental decision" to allocate capital to mining and had set up a raw material office in Canada, where it signed a raw materials agreement last year.
Investing in technologies requiring less raw critical minerals, including hydrogen-powered cars, was another way to bring down costs, Peter said.
The carmaker has a battery cell recycling facility via its joint venture in China, but does also not see the need to develop large cell recycling facilities of its own, Peter said.
Instead, it would prove demand for recycled raw materials via the sales growth of its electric cars, and work with partners to recycle at scale, he said.
"With our business development, we are creating the motivation to invest - but we do not need to develop big recycling facilities for battery cells ourselves," Peter said.
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