Major International Business Headlines Brief::: 17 October 2023

[Bulls n Bears]

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Major International Business Headlines Brief:::  17 October 2023 

 


 

 


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

 


 

 


 

ü  Kenya: KQ Named Africa's Leading Airline for the 5th Time

ü  Kenya: Portland Cement Issues Notice of Its Intention to Sell Some of Its
Land

ü  Africa: How African Economies Can Cope With China Slowdown

ü  Afreximbank Holds 7th Babacar Ndiaye Lecture in Marrakech

ü  Nigeria: Govt Proposes N26.01trn for 2024 Fiscal Year

ü  Rwanda: Report Reveals Factors Affecting Employees' Mental Well-Being

ü  Africa: The World Bank and the IMF Need to Keep Reforming to Become Fit
for Purpose

ü  Nigeria's Inflation Hits 26.72% As Food Prices Rise

ü  South Africa: Transnet Says Operational, Financial Turnaround Plan
Completed

ü  Angola: MPs Reject Presidential Impeachment Proposal

ü  Kenya: Ruto in China for Infrastructure Development Talks

ü  East Africa: News - Ethiopia Plans to Earn $182 Million From Electric
Power Export, Eyes Tanzania

ü  Angola Expecting Oil Production Above 1.1 Million Barrels Per Day

ü  Belt and Road Initiative: Is China's trillion-dollar gamble worth it?

ü  Wages overtake inflation for first time in nearly two years

 


 

 


 <https://www.cloverleaf.co.zw/> Kenya: KQ Named Africa's Leading Airline
for the 5th Time

Nairobi — Kenya Airways (KQ) has been named Africa's Leading Airline for its
economy and in-flight magazine (Msafiri) by the World Travel Awards.

 

This is the 5th year KQ has scooped the title after receiving similar awards
in 2011, 2018, 2019, and 2020.

 

It is also the second consecutive year that Msafiri magazine has been named
Africa's Leading Inflight Magazine.

 

"This award is a testament that our 'customer-first' strategy is bearing
fruit. It is also a vote of confidence from customers in the initiatives we
have implemented to improve customer experience across all touchpoints,"
Allan Kilavuka, Kenya Airways Group Chief Executive Officer and MD, said.

 

 

"It is about listening to the customers and understanding their
needs,"Kilavuka said adding that the company's goal is to be the preferred
Africa carrier by improving it's customer experience," Kilavuka added.

 

KQ revamped its Economy Class inflight service in 2023, which included a
rollout of tray service in economy class to replace the existing box service
and an extra hot meal starter and yoghurt for breakfast on specific mid- to
long-haul flights across the network.

 

On the other hand, Msafiri has been part of the inflight entertainment,
offering KQ guests education and entertainment while onboard.

 

This year, the World Travel Awards (WTA) mark their 30th anniversary of
rewarding travel excellence.

 

WTA was established in 1993 to acknowledge, reward, and celebrate excellence
across all sectors of the tourism industry.

 

"As we celebrate 30 years of travel and tourism excellence through the World
Travel Awards, we are excited to see how the industry has grown over the
last 30 years," said Graham Cooke, Founder, World Travel Awards.

 

-Capital FM.

 

 

 

Kenya: Portland Cement Issues Notice of Its Intention to Sell Some of Its
Land

Nairobi — East African Portland Cement (EAPC Plc) has notified the public
that it will regularise and sell some of its land.

 

The EAPC said that first and preferential priority shall be offered to the
parties currently occupying sections of the said parcels.

 

Interested parties have been given a two-week window to file their claim.

 

"Those in this kind of situation are advised to state their claim of the
same within 14 days from the date of this notice," EAPC said in a noticed
issued Tuesday.

 

The notice comes after the demolition of residential buildings, churches and
schools in Machakos County's Athi River township, entered its fourth day.

 

 

At the expiry of this notice, EAPC said that all unclaimed portions shall be
competitively offered to the general public on a willing buyer willing
seller basis.

 

A site office has been set up and an office for this purpose is also
available within EAPC Plc premises along Namanga Road.

 

On October 9, a Machakos High Court declared EAPC the legitimate owner of
land LR NO. 10424 located within Athi River in Mavoko, Machakos County and
that those who had settled on it had done so illegally.

 

The demolition which began Saturday has elicited mixed reactions from
Kenyans and members of the political class

 

President William Ruto said last week that part of the recovered land will
be used to expand the Export Processing Zone (EPZ).

 

"We have now been cleared by the courts on the land that is adjacent to the
EPZ that belong to Portland cement, my instructions are; we will take either
1,000 or 1,500 acres of that land and make it part of EPZ here in Kenya,"
Ruto said.

 

EAPC land has been disputed for over 10 years.

 

-Capital FM.

 

 

 

Africa: How African Economies Can Cope With China Slowdown

Cape Town — The International Monetary Fund (IMF) has urged sub-Saharan
African nations to take steps to offset the recent slowdown of growth in
China.

 

In a briefing published during the IMF's October meetings in Marrakech, the
fund urged countries to "strengthen their resilience and implement
structural reforms to foster  economic diversification, deepen
intra-regional trade, enhance competitiveness, and catalyze domestic
growth."

 

Noting that China is now sub-Saharan Africa's region's largest trading
partner, the briefing said exports have more than quadrupled in nominal U.S.
dollar terms since 2000, with  a fifth of the region's total exports of
goods now going to China, with three-fifths of those comprising metals,
mineral products and fuel.

 

As a consequence, the IMF said, the slowing of China's economic growth "is
likely to affect African trading partners negatively over the medium term,
mainly through reduced  trade..."

 

 

The briefing also noted that China is the single largest source of imports
for African countries, mainly comprising manufactured goods and machinery,
and that it has become a major funding source for African governments,
especially for public infrastructure projects.

 

China increased its share of external public African debt from less than two
percent before 2005 to about 17 percent in 2021, thus  becoming the largest
bilateral official lender to the region. But since 2017, "sub-Saharan Africa
has seen a retrenchment of Chinese investment and lending..." the fund said.

 

"Although China's annual growth rate averaged about 10 percent in the 2000s,
it grew by less than 8 percent per year on average in the 2010s. China's
growth has declined even further since the pandemic, and the latest IMF
projections show average annual growth of only about 4 percent in the next
five years, with notable trends toward reduced investment and greener
technologies...

 

"Given the deep economic ties, a further slowdown in China's growth in the
medium to long term is likely to affect economic activity negatively in
sub-Saharan Africa."

 

 

 

Afreximbank Holds 7th Babacar Ndiaye Lecture in Marrakech

Africa will need a system to discover and nurture entrepreneurial talents to
grow its economy and create jobs for its young population. This
recommendation was made by Jim Clifton, chairman of the globally renowned
polling and analytics firm, Gallup, when he delivered the 7th annual Babacar
Ndiaye lecture on 14th October 2023. The lecture, which was held at the
Fairmont Royal Palm Hotel in Marrakech, Morocco, was under the theme "The
New World Order and the Future of Entrepreneurship in Africa"., An
initiative by the Africa Export-Import Bank (Afreximbank) in honour of its
founder, It was the first time that the lecture series was being held in
Africa with the IMF/Annual Meetings being held on African soil for the first
time since Nairobi in 1973.

 

In his welcome remarks, Professor Benedict Oramah, President and Chairman of
the Board of the Bank, reminded the audience of the changing nature of
global trade, particularly the slow-down of globalisation at a time when
Africa was poised to benefit from rising wages in China. The growth in
global trade, following the collapse of the Soviet Union, the emergence of
the World Trade Organisation and the opening-up of China had seen global
trade accelerate dramatically, rising from $2 trillion to $7 trillion in the
year 2000 and $24 trillion by 2022. The uneven benefits of globalisation,
Oramah said, had led to a backlash, with populations in the west and some
political leaders souring on the idea. "The discontentment of the army of
displaced "Blue Collar" workers [in the west] had unprecedented political
consequences, leading to the emergence of anti-globalisation sentiments and
movements amongst political parties and candidates across most of the
economies of the West," he observed.

 

These adverse currents have led to an end of what Oramah called the "golden
age of entrepreneurship," characterised by a reversal in the flows of
foreign direct investment to developing countries, restrictions on
technology transfers, re-emerging trade barriers, including a trade war
between the world's two largest economies and an environment in which
building businesses in the developing world has become riskier and more
difficult. These developments pose a challenge to Africa and require the
continent to prepare for this new era. "The world as we know it has
dramatically changed, and it has changed for the worse at a time when Africa
was expecting to benefit from globalisation that pulled almost a billion
people out of poverty in China. However, as businesses explore new
investment destinations, they can either consider their home country or
elsewhere. What of Africa? What must we do to attract these investments in
Africa?" Oramah questioned, introducing Clifton as someone with the capacity
to help address these questions.

 

 

Afreximbank

Mr Jim Clifton, chairman of the globally renowned polling and analytics
firm, Gallup, delivered the 7th annual Babacar Ndiaye lecture

In his keynote address, Clifton said one of the major challenges in the
world now is that economies are not growing as much as they used to. The
search for growth and the desire to boost it has led many countries to focus
on innovation and invest in systems to facilitate innovation. Clifton argued
that this is the wrong approach pointing out that it is building businesses
that brings innovation to life and engenders economic activity. "There are a
lot of innovations but they have no value unless a customer is willing to
pay for them," he stressed. It is important to distinguish between academic
talent and the ability to generate ideas from entrepreneurship, which
requires a different set of skills, he argued. "We have to understand that
while innovation is really important, if we have a system to support and
grow entrepreneurs or rainmakers, everything will change."

 

At a rate of 3% the global economy can grow to $200 trillion over the next
generation, which Clifton said would be a failure. To reach $300 trillion
which would need growth of 4.5%, there must be a clear understanding of the
respective roles of innovation and entrepreneurship. "We have to understand
that it's a cart and a horse situation and I would suggest to you that the
cart is innovation, and the horse is entrepreneurship and we have to get
really good with the horse," he said. According to Clifton, there are about
5 people in every thousand who have the capacity to build huge companies and
have the entrepreneurial impact that the late founder of Apple, Steve Jobs
had, which means there have to be about 7.5 million of such people in
Africa. The challenge, he said, is to find them. The solution is to have a
"dragnet" that helps to identify and support these individuals, he said.
"This continent has plenty of talent, perhaps more than anywhere else and
there's no reason why you can't build the biggest businesses in the world
here. There are all kinds of minerals here in Africa, but the big money is
still in the human spirit, and we haven't done a good job of unlocking
that," he concluded.

 

In his closing remarks, Dr Hippolyte Fofack, chief economist of Afreximbank,
highlighted the role that entrepreneurs play in economic growth, pointing
out that while Africa has abundant labour and natural resources, it needs
more capital and entrepreneurship to make up the complete quartet required
for production. "Entrepreneurship is one of the most important drivers of
growth in both the developed and developing countries. but I would argue
that it is even more critical in Africa where it is not a choice but a
necessity," he argued, explaining that the low levels of employment require
much more entrepreneurship. "It takes an ocean of entrepreneurs to develop a
continent and entrepreneurial governments to effectively facilitate and
coordinate their actions as we have heard tonight," he added. Dr Fofack
celebrated the role that Afreximbank is playing in supporting
entrepreneurship in Africa through its subsidiaries and initiatives such as
the Fund for Export Development in Africa, Creative Africa Nexus, African
Medical Centre of Excellence and other programmes to support entrepreneurs
and small businesses around the continent.

 

 

Afreximbank

The 7th Annual Babacar Ndiaye Lecture 2023 took place on 14th October 2023
at the Fairmont Royal Palm Hotel in Marrakech, Morocco, was under the theme
“The New World Order and the Future of Entrepreneurship in Africa.” The
lecture series is intended to cement the legacy of the late Dr. Babacar
Ndiaye and sustain his vision of structural transformation of African
economies.

 

About the Lecture:

Afreximbank has hosted this Lecture every year since 2017 in honour of the
late Dr Babacar Ndiaye, the fifth President of the African Development Bank.
Dr Ndiaye transformed the Bank during his decade-long leadership and was
also instrumental in establishing several other enduring Pan-African
institutions including, among others, Afreximbank, Shelter Afrique, and the
African Business Roundtable.

 

About Afreximbank:

African Export-Import Bank (Afreximbank) is a Pan-African multilateral
financial institution mandated to finance and promote intra-and
extra-African trade. For 30 years, the Bank has been deploying innovative
structures to deliver financing solutions that support the transformation of
the structure of Africa's trade, accelerating industrialization and
intra-regional trade, thereby boosting economic expansion in Africa. A
stalwart supporter of the African Continental Free Trade Agreement (AfCFTA),
Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS)
that was adopted by the African Union (AU) as the payment and settlement
platform to underpin the implementation of the AfCFTA. Working with the
AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion
Adjustment Fund to support countries to effectively participate in the
AfCFTA. At the end of 2022, Afreximbank's total assets and guarantees stood
at over US$31 billion, and its shareholder funds amounted to US$5.2 billion.
The Bank disbursed more than US$86 billion between 2016 and 2022.
Afreximbank has investment grade ratings assigned by GCR (international
scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch
(BBB). Afreximbank has evolved into a group entity comprising the Bank, its
impact fund subsidiary called the Fund for Export Development Africa (FEDA),
and its insurance management subsidiary, AfrexInsure, (together, "the
Group").

 

 

 

Nigeria: Govt Proposes N26.01trn for 2024 Fiscal Year

FEC also approved the use of concrete for road projects across the country
including those of new ones, depending on the level of completion.

 

The federal government has proposed the sum of N26.01 trillion for the 2024
appropriation based on the oil price benchmark of $73.96 and 21 per cent
interest rate.

 

Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this to
State House Correspondents at the end of the Federal Executive Council (FEC)
meeting on Monday in Abuja.

 

He said the budget would be presented to the National Assembly before the
end of the year since President Bola Tinubu was already engaging with the
legislative arm towards getting their buy-in

 

He said the budget was expected to consolidate the various economic reforms
initiated by the present administration aimed at improving the standard of
living of Nigerians and attracting investors.

 

 

Mr Bagudu said that the assumption of the budget was based on the various
diplomatic engagements by the president and other government functionaries
that were expected to improve inflow and boost the exchange rate.

 

Concrete for road projects

 

Dave Umahi, minister of works, also disclosed that FEC approved the use of
concrete for road projects across the country including those of new ones,
depending on the level of completion.

 

He said, "FEC was also informed on the ongoing projects and to mitigate so
much inflation and variation of the projects, to have some of the projects
that have attained completion to be redesigned on concrete and going forward
for new projects to be done on concrete.

 

"FEC approved that concept that most of the ongoing projects should be
designed on concrete pavements depending on the level of completion and if
you're doing Asphalt there are also conditions for that.

 

 

"FEC also approved the coastal road running from Phase 1 which runs from
Lagos to Port Harcourt to Calabar. Phase 2 runs from S4 tearing off from
this stretch to Sokoto and to Ogoja.

 

"It was approved to be done on Engineering, Procurement and Construction
plus Financing.

 

"Eight roads that were started in the past administration for concessioning
that have gone through all the processes were also approved and that the
financial closure should be reached November."

 

Mr Umahi also said that a 24-hour approval would be given to any state
interested in taking over road projects in their domain, while particular
conditions must be met for the agreement to take effect.

 

He said the project by the states must conform to the standard of the
Federal Ministry of Works as well as meet the tolling system through which
they would recoup their investment.

 

The minister also disclosed that FEC approved the NNPC and FIRS road
projects, which they oversee and fund across the country.

 

(NAN)

 

-Premium Times.

 

 

 

 

Rwanda: Report Reveals Factors Affecting Employees' Mental Well-Being

A report from Mental Health Hub, a mental health organisation in Rwanda, has
revealed that 30.1 per cent of employees in private and public institutions
are experiencing work-related stress due to fear of job loss or lack of
promotion.

 

Personal finances, family responsibilities, poor leadership, working in
shifts, changes in duties, working away from families, changes in the
organisation, harassment, discrimination and hate, workplace relationships
or conflicts, several projects with deadlines, and physical health concerns
are among the issues impacting employees' mental health.

 

The 'State of Mental Health at Work' report launched as part of a month
dedicated to mental health, shows 30.4 per cent reported heavy workloads and
long hours.

 

 

According to the report, high or extreme stress increased from 34.1 per cent
in 2021 to 37.8 per cent in 2023, while moderate stress increased from 77.6
per cent to 80. 4 per cent.

 

Due to the impact of stress on work life, 30.4 per cent of respondents
reported an increase in physical health issues and 17.5 per cent in mental
health issues in 2023, while 48. 3 per cent said they became less
productive.

 

The report shows that due to mental health issues at work, 51.4 per cent
said they have difficulties in concentrating while 25.5 per cent find it
harder to collaborate with co-workers. At least 64 per cent said it is
important that employers offer emotional and mental health support.

 

The sectors with a large number of workers with mental health issues include
hospitality and tourism, public servants, education, telecommunication,
banking and finance, manufacturing, ICT, and others.

 

 

The survey showed that in the last 30 days, 16 per cent had bad interactions
with others while about 20 per cent had difficulty making decisions.

 

Lack of motivation, resilience, fatigue and lack of energy, insomnia,
backaches, and headaches are among the effects on workers' mental health.

 

It indicates that 78.9 per cent of young professionals had fatigue in their
last 30 days.

 

Employees (44.4 per cent of the respondents) expressed the need for building
mental and emotional resilience.

 

They also requested stress release practices, individual counselling and
therapy, mental well-being for families, stress and anxiety management,
work-life balance, and others.

 

 

"The impact of stress on productivity at work is serious. Employers can do
more to support employees' mental health and well-being," said Espoir
Baraka, a psychologist.

 

He said that there is a need for awareness about mental health work so that
employees are able to get help.

 

"Stigma prevents workers with mental health issues from seeking support.
Employers should create a platform and culture to discuss workers' mental
health. We see workers' behaviour, like in cases of absenteeism or coming to
work late, and laziness. Productivity also shrinks. These might be signs of
a bad state of mental health," he said, adding that there should be a
counsellor to listen to employees.

 

Suzan Mutamba, Head of HR at the Rwanda Convention Bureau (RCB) said: "We
have to help workers express themselves. The culture of teamwork, mutual
respect, and good relationships at work enables good communication and this
can be one of the ways to cope with mental health disorders at work."

 

Call for emotional well-being support

 

Francoise Uzamukunda, the Country Director at Mental Health Hub Rwanda, said
that after the Covid-19 pandemic, people had to work hard and therefore
stress levels at work increased.

 

"Employees have issues caused by outside life and those caused by work.
These include family conflicts, personal financial problems, overtime, poor
leadership, lack of motivation and promotion at work, low salary," she said,
adding that there is a need for emotional well-being support at work.

 

"Employers should know the mental health status of workers and address some
issues that cause stress at work. 80 per cent of workers need emotional
well-being resources in addition to salaries. Over 50 per cent of workers
facing stress at work are youth," she noted.

 

In 2021, the survey revealed that 77 per cent of workers across various
sectors experience moderate to extreme daily stress, with 34 per cent
reporting high levels of extreme stress. Furthermore, 43 per cent attributed
their stress to Covid-19, while 37 per cent mentioned financial difficulties
or poverty, and 29 per cent expressed fear of job loss. Additionally, 28 per
cent cited personal and family issues as contributing factors.

 

Exode Rukundo, the Manager for Business Performance and Reporting at MTN
Rwanda, expressed the need for a supportive environment to improve workers'
mental health. "The way employers treat employees affects mental health," he
noted.

 

At least 12 workdays are lost every year by a worker suffering from
depression, according to studies. There is a $2-4 return on investment for
every dollar spent on evidence-based prevention of mental illnesses and
early intervention.

 

According to Darius Gishoma, Mental Health Division Manager at Rwanda
Biomedical Centre (RBC), the national mental health campaign's primary goal
is to address the urgent concern of mental health among youth, recognising
its impact not only on their personal lives but also on the broader
well-being of the nation.

 

"We have to prevent and avoid what can affect mental health. We should help
those with mental health issues to get treatment. Everyone should fight the
stigma against people with mental health disorders. More efforts are needed
in preventing conflicts because they affect mental well-being," he said.

 

The Ministry of Health plans to conduct an in-depth assessment of the state
of mental health following several reports of increasing numbers of people
battling mental illness.

 

In October 2022, Ndera Neuro-Psychiatric Teaching Hospital reported that it
had received 7,817 patients battling depression compared to 1,743 recorded
in 2021.

 

-New Times.

 

 

 

Africa: The World Bank and the IMF Need to Keep Reforming to Become Fit for
Purpose

The World Bank and the International Monetary Fund are being challenged to
make substantial reforms so that they become fit for purpose in the 21st
century.

 

Some suggest that they cannot be sufficiently reformed and should be shut
down. Others, including myself, contend the world needs effective
international financial institutions. If they did not exist, we would have
to create them. Consequently, we must try to make them more credible,
legitimate, inclusive, responsible and effective. The challenge is doing so
within the constraints of their founding treaties.

 

This article is based on my book The Law of International Financial
Institutions. It provides some background on these institutions and
discusses the problems they are confronting and their potential for reform.

 

Some history

 

Prior to 1944, countries fixed the value of their currencies in terms of
gold. This system collapsed with tragic consequences in the inter-war years.

 

 

The purpose of the 1944 Bretton Woods conference was to create a new
international monetary order. It was an exclusive affair. Only 44 out of the
then 99 officially recognised countries were represented. A large portion of
humanity was living under colonial domination and didn't take part in the
negotiations.

 

Four characteristics of this new international order are noteworthy.

 

First, it created the first rules-based international monetary system. The
participating states agreed that the IMF would oversee the new order. In
return, both the IMF and World Bank offered their member states financing.
The financing came with terms and conditions and the IMF and the World Bank
could hold the states accountable for failing to comply with them.

 

Second, the member states accepted that the governance of the institutions
would be based on weighted voting, with each member state receiving a vote
that corresponded to its economic size and financial contribution. This
effectively modified the principle of sovereign equality which is at the
core of the international legal order. A state could be outvoted and forced
to comply with policies that it opposed.

 

 

Third, the legal status and powers of these new institutions was only
clarified over time. Most significantly, they were given immunity to
mitigate the risk that a member state would use its authority to interfere
with their operations in that state. Therefore, they cannot be sued in any
court in the world.

 

Fourth, the treaties are silent on their environmental and social
responsibilities.

 

Evolution

 

By the mid-1970s, the two institutions were operating in a very different
world. Many states in Africa and Asia had become independent and had joined
them. They had different needs and priorities from the original member
states. However, because of their relative level of economic development,
they lacked the votes to change policies and priorities.

 

 

Second, the system created at Bretton Woods collapsed in 1973. It was
replaced by a system in which markets played a great role in determining the
value of currencies and each state could decide for itself how to conduct
its own monetary policy.

 

Third, concerns about the environmental and social impacts of economic
activity were beginning to grow around the world. It resulted in
controversies involving projects funded by the World Bank and programmes
funded by the IMF.

 

Fifth, civil society organisations were becoming more important actors. They
were concerned that the operations of these institutions were causing
substantial harm to local communities and the environment. They began to
campaign for the World Bank and IMF to become more transparent and
accountable.

 

The two institutions have made some efforts to respond to these
developments.

 

Governance. The number of member states increased by over four times between
1946 and 2023. However, the size of their boards of executive directors has
only doubled. This means that it is harder for many states to have their
concerns about policies, procedures and operations raised at the board
level.

 

Consequently, the institutions are likely to be less responsive to the
concerns of their smaller and poorer member states than to their richer and
more powerful member states.

 

This problem is exacerbated by the institutions' declining financial
capacity. When the IMF opened for business, its total resources were
equivalent to 3% of a global GDP of about US$10 trillion (in 2011 dollars).
Today, they are equivalent to about 1% of a global GDP of about US$100
trillion.

 

Responsibility. The institutions have acknowledged their responsibility for
the environmental and social impacts of their operations and that there are
some human rights issues that are relevant to their operations. However,
they have struggled to develop an effective and sustainable approach to
these issues.

 

One reason is that there is no agreement on which standards they should use
in addressing these issues.

 

A second reason is that understanding these issues requires them to do
impact assessments and to consult with affected stakeholders. But both
require them to interact with a broader range of stakeholders in their
member states than was originally envisaged. It may also require them to
engage with groups that are opposed to the projects or policies.

 

In response, the World Bank has developed its own operational policies and
procedures for its staff. They also educate external actors about what they
can expect from the bank in regard to environmental and social issues. This
is not always acceptable to their member states.

 

 

The IMF has maintained that, because it focuses on macro-economic issues and
policy based finance, it is difficult to establish causal links between its
operations and their environmental and social impacts. But it has now
acknowledged that these issues can be "macro-critical" and that it needs to
pay attention to them. It has not yet adequately explained how it will do
this.

 

Accountability. The expanding role and responsibilities of the World Bank
and IMF raise complex issues. There is a risk that they will make mistakes
that result in some stakeholders having to assume an unreasonably high share
of the costs of these projects or policies.

 

In 1993, the World Bank created an independent accountability mechanism, the
Inspection Panel. Despite its shortcomings, it was an important
international legal development.

 

The IMF has not established its own independent accountability mechanism. It
is one of the few international organisations that does not offer its
external stakeholders any means for holding it accountable.

 

What next?

 

The World Bank and IMF need to continue evolving if they are to remain fit
for purpose in the 21st century. They need to develop governance
arrangements, operational policies based on international norms and
standards, and accountability structures that respond adequately to the
challenges of climate, poverty, inequality and discrimination. Their richer
member states need to provide them with adequate resources to fulfil their
mission.

 

Danny Bradlow, Professor/Senior Research Fellow, Centre for Advancement of
Scholarship, University of Pretoria

 

 

 

 

Nigeria's Inflation Hits 26.72% As Food Prices Rise

Food inflation rate in September quickened to 30.64 per cent.

 

Nigeria's annual inflation rate rose to 26.72 per cent in September from
25.80 per cent in the previous month, the National Bureau of Statistics
(NBS) said Monday.

 

The statistics office said the September 2023 headline inflation rate showed
an increase of 0.92 per cent points when compared to the August 2023
headline inflation rate.

 

The NBS said on a year-on-year basis, the headline inflation rate was 5.94
per cent points higher compared to the rate recorded in September 2022,
which was 20.77 per cent.

 

"This shows that the headline inflation rate (year-on-year basis) increased
in September 2023 when compared to the same month in the preceding year
(i.e., September 2022)," it said.

 

According to the report, the food inflation rate in September quickened to
30.64 per cent on a year-on-year basis, which was 7.30 per cent points
higher compared to the rate recorded in September 2022 (23.34 per cent).

 

 

Food prices have been on the rise across Nigeria in recent years. The
situation deteriorated due to the impact of government policies such as the
removal of subsidies on petrol, among others.

 

President Bola Tinubu on 29 May during his inauguration, announced the
removal of subsidy on petrol. This development has caused hardship for many
Nigerians with its attendant increase in the prices of goods and services.

 

Over the past four months, the naira has depreciated by over 50 per cent at
both the authorised and unauthorised market segments, after the Central Bank
of Nigeria (CBN) announced in June that it had collapsed all forex windows
into the Investors and exporters (I&E) window.

 

The move, according to the apex bank, is part of the Nigerian government's
efforts to improve liquidity and stability in the market and attract foreign
investors into the Nigerian economy.

 

 

Although the policy was widely applauded as well-intentioned and necessary,
it has put additional pressure on the local currency and manufacturers, with
ripple effects on domestic prices.

 

Inflation has remained high in Africa's largest economy, prompting the apex
bank to hike interest rates to their highest levels in nearly two decades.

 

In July, the Central Bank of Nigeria (CBN), raised its benchmark lending
rate to 18.75 per cent.

 

The bank said, "hiking the interest rate has made a lot of difference in
moderating the rate of inflation".

 

It noted that the option to continue the hike in the policy rate, albeit
moderately, also presented a strong alternative premised on the expected
liquidity injections into the economy from the recent efforts to unify the
nation's foreign exchange markets.

 

 

In July, Mr Tinubu declared an immediate State of Emergency on food
insecurity to tackle the increase in food prices.

 

He also directed that "all matters pertaining to food & water availability
and affordability, as essential livelihood items, be included within the
purview of the National Security Council."

 

Report

 

In its inflation report Monday, the NBS said the contributions of items on
the divisional level to the increase in the headline index year on year are
food & non-alcoholic beverages (13.84 per cent), housing water, electricity,
gas & other fuel (4.47 per cent), clothing & footwear (2.04 per cent), and
transport (1.74 per cent),.

 

Others are furnishings & household equipment & maintenance (1.34 per cent),
education (1.05 per cent), health (0.80 per cent), miscellaneous goods &
services (0.44 per cent), restaurant & hotels (0.32 per cent), alcoholic
beverage, tobacco & kola (0.29 per cent), recreation & culture (0.18 per
cent) and communication (0.18 per cent).

 

The report said the headline inflation rate in September 2023 was 2.10 per
cent, which was 1.08 per cent lower than the rate recorded in August 2023
(3.18 per cent ).

 

"This means that in September 2023, the rate of increase in the average
price level was less than the rate of increase in the average price level in
August 2023.

 

"The percentage change in the average CPI for the twelve months ending
September 2023 over the average of the CPI for the previous twelve-month
period was 22.90 per cent, showing a 5.47 per cent increase compared to
17.43 per cent recorded in September 2022," the report said.

 

Food Inflation

 

The food inflation rate in September 2023 was 30.64 per cent on a
year-on-year basis, which was 7.30 per cent points higher compared to the
rate recorded in September 2022 (23.34 per cent).

 

The bureau said the rise in food inflation was caused by increases in prices
of oil and fat, bread and cereals, potatoes, yam and other tubers, fish,
fruit, meat, vegetables and milk, cheese, and eggs.

 

"On a month-on-month basis, the Food inflation rate in September 2023 was
2.45 per cent, this was 1.41 per cent lower compared to the rate recorded in
August 2023 (3.87 per cent)," it said.

 

According to the bureau, the decline in food inflation on a Month-on-Month
basis was caused by a fall in the rate of increase in the average prices of
potatoes, yam and other tubers, bread and cereals, fruits, and fish.

 

"The average annual rate of Food inflation for the twelve months ending
September 2023 over the previous twelve-month average was 25.65 per cent,
which was a 6.29 per cent points increase from the average annual rate of
change recorded in September 2022 (19.36 per cent)," it said.

 

-Premium Times.

 

 

 

 

South Africa: Transnet Says Operational, Financial Turnaround Plan Completed

Cape Town — Transnet, the state-owned South African rail, port and pipeline
company, says it has completed a turnaround plan. eNCA reports that the plan
outlines operational and financial initiatives to be implemented over the
next 18 months. It's hoped the focus on freight rail will help reverse a
U.S.$398 million (R7,5 billion) loss reported in September 2023. The
strategy will  be submitted to shareholders this week.

 

The state-owned enterprise has been ailing for a number of years, and South
Africa saw the downward spiral of transport services, particularly passenger
rail transport, since Transnet offloaded this sector to the Passenger Rail
Service of South Africa (PRASA).

 

Transnet was also rocked by several resignations in recent weeks - notably
that of CEO Portia Derby who resigned on September 27, 2023, and the
company's Chief Financial Officer Nonkululeko Dlamini who left on September
27, 2023, after serving a month's notice, Daily Maverick reports.

 

 

Derby was given a deadline by the Minister of Public Enterprises Pravin
Gordhan to turn around the parastatal's fortunes, following calls from
various quarters for Gordhan to act on the crisis at Transnet.

 

Transnet board member Popo Molefe also resigned on October 13, 2023 after
five years. Molefe previously serving as Transnet's chairperson.

 

Siza Mzimela, the CEO of Transnet's freight rail division, was facing
enormous pressure to resign because under her watch, Transnet's rail network
became inefficient and unreliable for big industry, writes Ray Mahlaka for
Daily Maverick.

 

Meanwhile, African National Congress (ANC) Secretary-General Fikile Mbalula
defended Gordhan in response to criticism that he led the country's
state-owned enterprises (SOEs) into a crisis.

 

The country's ailing rail and freight infrastructure is, according to a
study by South African research consultancy  GAIN Group, costing the economy
R1 billion a day. On September 1, 2023 Gordhan gave Derby three weeks in
which to come up with a turnaround plan after the company announced its
2022/23 financial results that showed a loss of U.S.$300 million (R5.7
billion).

 

There has been several attempts to turn around the fortunes of the ailing
parastatal but only time will tell if what the country so desperately needs
to boost port and harbour operations, and the transportation of goods, will
come to fruition.

 

 

 

 

Angola: MPs Reject Presidential Impeachment Proposal

The country's leading opposition party walked out of an extraordinary
parliamentary session called to discuss a possible impeachment against
President Joao Lourenco on October 14, heightening political turmoil in the
oil-rich country, Voice of America reports.

 

Lawmakers met in the capital, Luanda, to decide whether to set up a
parliamentary commission to examine a motion to remove Lourenco from office
presented by the National Union for the Total Independence of Angola
(UNITA), a former rebel group turned political movement that lost a disputed
election in 2022.

 

But UNITA MPs walked out in protest crying "dictatorship, dictatorship!"
ahead of the vote, after the ruling party pushed for a public ballot, which
the opposition said should be secret instead.

 

The proposal was then rejected with 123 votes against and one abstention.

 

UNITA had presented an almost 100-page-long motion to impeach Lourenco
earlier after months of preparations.

 

 

It accused the 69-year-old of being authoritarian, breaking budget rules and
corruption, among other things.

 

Angola may slow the removal of fuel subsidies to avoid a repeat of protests
in June 2023 over a near-doubling in petrol prices in which at least five
people were killed, the Finance Minister Vera Esperança dos Santos Daves de
Sousa  said. No decision was yet made in internal discussions on whether to
extend the end-2025 deadline for phasing out the subsidies, Vera Daves de
Sousa told Reuters in an interview on the sidelines of the International
Monetary Fund and World Bank's Annual Meetings.

 

This comes a week after more than 130 protesters were detained by police for
taking part in a separatist march calling for the autonomy for Angola's
northern region, according to Ghanaweb.

 

Police said the protests Saurimo, Lunda Sul province's capital turned
violent leading to the multiple arrests.

 

The separatists argue that the 'Lunda-Tchokwe Kingdom' was never a
Portuguese colony, and it's not, therefore, bound by the Alvor Treaty, which
granted the country independence from Portugal in 1975.

 

The government has in the past dismissed the separatists' claims and always
insisted on the unity of the southern African country.

 

 

 

 

Kenya: Ruto in China for Infrastructure Development Talks

Nairobi — President William Ruto is currently in China, where he is expected
to pitch Kenya's infrastructure development opportunities to Chinese
enterprises.

 

Ruto, who is attending the Third Belt and Road Forum in Beijing, China,
announced in his X app that the country is keen on working with like-minded
partners to spur development amid existing global challenges.

 

"We are particularly keen on increasing the depth of our relations with
China under the New Silk Road to upgrade our infrastructure," posted the
Head of State.

 

Earlier, State House spokesperson Hussein Mohamed revealed in a post that
the convention in China has attracted an array of world leaders who are
expected to pitch their own infrastructure development projects to China.

 

"This will offer a platform for cooperation and partnership talks focusing
on infrastructural developments," he posted.

 

-Capital FM.

 

 

 

East Africa: News - Ethiopia Plans to Earn $182 Million From Electric Power
Export, Eyes Tanzania

Addis Abeba — Ethiopian Electric Power (EEP) has announced plans to boost
electric power export to neighboring countries and earn more revenue in the
current fiscal year.

 

Last year, the country exported 1701 GW of electricity to three neighboring
states namely Sudan, Kenya and Djibouti, and planned to increase the export
amount to 2993 GW this year to earn 182 million USD, according to the EEP.

 

Furthermore, efforts are being made to export power to more foreign
countries and talks are ongoing with Tanzania, Moges Mekonnen, Corporate
Communication director of EEP told Ethiopian Press Agency (EPA). "If the
agreements are completed as per the scheduled date, more electricity will be
exported to Tanzania this fiscal year," he said.

 

Following a deal that was signed in November last year, Ethiopia has been
exporting electricity to Kenya at 6.5 US cents per kilowatt, and in the
eight months to August Ethiopia's export accounted for 70% of Kenya's nearly
600 GW of electric power import.

 

An agreement that will enable export of initial 100 MW of electricity after
three years has been reached between Ethiopia and South Sudan in May last
year. Somaliland, Rwanda and Burundi are other countries who have shown
interest to import power from Ethiopia, according to EEP.

 

The power company has planned to increase its overall revenue including from
domestic electricity sales and various services from 22.3 billion birr last
year to 30 billion birr this fiscal year.

 

-Addis Standard.

 

 

 

Angola Expecting Oil Production Above 1.1 Million Barrels Per Day

Luanda — The Government will continue to work to maintain competitiveness
and crude oil production levels above 1.1 million barrels/day, planning to
bid for another 50 oil blocks by 2025, the President of the Republic João
Lourenço assured on Monday in Luanda.

 

The holder of the Angolan Executive Branch, who was delivering the State of
the Nation speech to National Assembly, expressed his hopes to see the crude
oil production activity stabilized and boosted in order to mitigate the
sharp decline in production, recorded in recent years.

 

To meet this challenge, in the short and medium term, the Head of State
highlighted the 'Ndola Sul' projects, with a production capacity of 20,000
barrels/day, and "Agogo Fuel", for the recovery of 490 million barrels of
crude oil.

 

 

Also, part of this challenge, he pointed out, are the 'Begonia' projects,
with a capacity to produce 30,000 barrels per day, 'Cameia' and "Golfinho",
which will carry out the first oil development project in the Kwanza Basin
and in deep waters, respectively.

 

As a result, he said, oil revenues should be used less for the consumption
of goods and services, but for expenses to promote diversification and
promotion of the non-oil economy.

 

Oil production in Angola already reached levels of 1.8 million barrels in
2015, an average that has fallen to current figures, influenced, in part, by
insufficient investment in the sector and unscheduled stoppages.

 

With a production of 1.1 million barrels/day, the country currently has
reserves estimated at nine billion barrels of crude oil and 5.95 billion
cubic meters of gas. QCB/AC/ADR/TED/DOJ

 

-ANGOP.

 

 

 

Belt and Road Initiative: Is China's trillion-dollar gamble worth it?

China is throwing a huge party to celebrate one of its biggest experiments
in engaging with the world: its Belt and Road Initiative (BRI).

 

Officials and leaders from all over the globe are in Beijing attending a
high-level summit marking the BRI's 10th anniversary. Russian President
Vladimir Putin and Hungarian Prime Minister Viktor Orban have arrived, and
the Taliban government will also attend. Chinese media is awash with
coverage of the BRI's achievements, including a six-part documentary on
state TV.

 

A signature policy of President Xi Jinping, the BRI is aimed at stitching
China closer to the world through investments and infrastructure projects.
With an unprecedented glut of cash pumped into nearly 150 countries, China
boasts it has transformed the world - and it is not wrong.

 

But Beijing's massive gamble hasn't entirely gone the way it had hoped. Was
it worth it?

 

A 'win-win' economic success?

>From the moment the BRI was unveiled in 2013 with comparisons to the ancient
Silk Road, it was clear China had sprawling ambitions.

 

"Belt" refers to overland routes connecting China to Europe through Central
Asia, as well as to South Asia and South East Asia; while "Road" denotes a
maritime network linking China to major ports through Asia to Africa and
Europe.

 

It started off with heavy state-driven investment into hard infrastructure
abroad. Most of the estimated $1tn (£820bn) has been poured into energy and
transport projects, such as power plants and railways.

 

Chinese workers stand at the construction site of Standard Gauge Railway
(SGR) during the presidential inspection of the SGR Nairobi-Naivasha Phase
2A project in Nairobi, Kenya, on June 23, 2018.

 

Beijing touted this as an economic win-win - it told other countries these
investments would stimulate development, while at home it sold the BRI as a
way to help Chinese companies, boost the economy and burnish the country's
reputation.

 

It had limited success in meeting some goals, such as internationalising the
yuan and solving Chinese companies' overcapacity.

 

But China reaped a huge economic benefit in trade. A slew of agreements
brought access to more resources such as oil, gas and minerals, especially
as the BRI's focus widened to include Africa, South America and the Middle
East. About $19.1tn of goods were traded between China and BRI countries in
the past decade.

 

"It's about Chinese state-owned enterprises going abroad... to help
facilitate the flow of resources that China needs," said Jacob Gunter, a
senior analyst at the Mercator Institute for China Studies. "It's also about
expanding and developing export markets as alternatives to the liberal
developed world."

 

This diversification has become crucial at a time when China faces greater
tensions with the West and their allies.

 

Take soybeans for example. China, the world's biggest importer, used to rely
heavily on the US for supplies. But a tariff war with Washington forced
Beijing to turn to South American sources, especially Brazil, estimated to
be the region's largest recipient of BRI funding.

 

Gas pipelines from Central Asia and Russia - and oil imports from Russia,
Iraq, Brazil and Oman - have reduced Chinese dependence on Japan, South
Korea and the US, according to the International Institute for Strategic
Studies (IISS).

 

'Debt trap' diplomacy

Having become the lender of first resort for many low or middle income
countries through the BRI, China is now the world's biggest international
creditor.

 

The true scale of the debt - thought to be at least hundreds of billions of
dollars - is unknown. Many of the loans, given out by both public and
private lenders, are shrouded in secrecy.

 

Now, from Sri Lanka and the Maldives to Laos and Kenya, countries are
struggling with BRI debt. This puts the Chinese government in a tight spot.

 

A real estate crisis and liberal borrowing by local governments has already
created a "debt bomb" domestically - it's estimated to run into trillions of
dollars. A sluggish post-Covid economy and record youth unemployment have
not helped.

 

China has restructured BRI loans, extended deadlines and forked out an
estimated $240bn to help borrowers make payments on time. But it has refused
to cancel the debt.

 

"For China to simultaneously engage in debt write-downs overseas while
domestic economic issues are not fully resolved - it will be politically
challenging internally to promote that," said Christoph Nedopil, founding
director of the Green Finance and Development Center (GFDC), which tracks
BRI spending.

 

This has marred Beijing's reputation. Some critics accuse China of engaging
in "debt trap diplomacy" by luring poorer countries to sign up for expensive
projects so that Beijing could eventually seize control of assets put up as
collateral. This was the US' accusation over the controversial Hambantota
port project in Sri Lanka.

 

Many analysts argue there is little evidence of this, but it has heightened
fears that Beijing is using the BRI to undermine others' sovereignty.

 

Is China luring poorer countries into debt?

China: Big spender or loan shark?

China has also been criticised over its so-called "hidden debts" -
governments don't know how exposed their borrowing institutions are, which
makes it difficult for countries to weigh up the BRI's costs and benefits.

 

Over the years BRI projects have also been accused of creating wasteful
"white elephants", fuelling local corruption, exacerbating environmental
problems, exploiting workers, and failing to live up to promises of bringing
jobs and prosperity to local communities.

 

One recent study by research lab Aid Data found more than a third of the
projects face such problems. A growing backlash has prompted some countries
like Malaysia and Tanzania to cancel BRI deals.

 

"Poor risk management and a lack of attention to detail and cohesion" from
Chinese lenders and companies are partly to blame, according to the Council
on Foreign Relations.

 

But the think tank and other observers have pointed out the borrowing
countries are also to blame, either for rushing into deals without proper
planning or mismanaging finances like in the Hambantota case.

 

Observers also say China gives resources with fewer strings attached, which
is less onerous than offers from global lenders or the West.

 

"China shows up with a 'one-stop shop' approach: 'Here are our banks and
companies and we do everything from start to finish, and if you sign today
we will finish that railway, and it will be done in time just as you
campaign for your next election'," pointed out Mr Gunter.

 

"It's a huge selling point to say that you can do it in one to three years
with very little paperwork. Maybe it'll be a bit dirty and there may be
labour rights violations, but your railway will be done."

 

A diplomatic victory

Yet China has met one of its biggest goals - extending its influence.

 

It is not just through railways and highways that China has created
connections. Beijing projects soft power and positions itself as a leader in
the Global South, paying for thousands of Chinese university scholarships,
cultural exchange programmes and Confucius Institutes. The expansion of the
Brics trading bloc too has been credited to China.

 

Pew Research found that in the past decade many middle-income countries have
increasingly favourable attitudes towards China, including Mexico,
Argentina, South Africa, Kenya and Nigeria.

 

Mr Gunter noted that increasingly, countries in the Global South do not wish
to choose sides in the US-China rivalry. "China hasn't flipped many
countries from a Western orientation, but the fact it has moved the needle
to a middle ground - that is already a huge diplomatic victory for Beijing,"
he said.

 

But observers have also raised concerns of possible economic coercion, where
foreign governments feel pressured to follow Beijing's agenda or risk China
pulling out investment.

 

One Aid Data study of Chinese state-owned entities' loans to foreign
governments found contract clauses that "potentially allow the lenders to
influence debtors' domestic and foreign policies".

 

In the UN, China has "corralled other states into temporary coalitions" to
oppose measures critical of Beijing, while participation in the BRI has led
several EU members to block or water down policies critical of China,
pointed out the IISS.

 

The think tank also said the BRI has become one of China's "main
instruments" in its diplomatic isolation of Taiwan. Many nations that have
shifted recognition from Taiwan to China in the past decade are BRI funding
recipients, it noted.

 

In South East Asia, Cambodia has consistently resisted condemnation of
China's actions in the South China Sea, while Laos and Thailand have been
criticised for arresting or allowing the abduction of Chinese activists
wanted by Beijing.

 

In this photograph taken on November 13, 2016, trucks are seen parked at the
Gwadar port, some 700 kms west of Karachi, during the opening ceremony of a
pilot trade programme between Pakistan and China.

 

 

China now recognises some things need to change.

 

Beijing preaches the mantra of "small and beautiful" where, through
low-investment, high-yield projects, the BRI can have more relevance.

 

Examples given by state media include bamboo and rattan-weaving programmes
in Liberia, biogas technology projects in Tonga and Samoa, and promoting
mushroom-growing technology in Fiji, Papua New Guinea and Rwanda.

 

China has also announced a new "digital silk road" focused on
telecommunication and digital infrastructure. Analysts say this would be a
more sustainable stream of profits for Chinese companies, while lessening
the impact of Western bans on Chinese 5G equipment.

 

With this new strategy, China has cut down financing. It has imposed limits
on external lending by Chinese banks, and investment deals are now nearly
50% smaller than they were five years ago, according to a GFDC analysis. It
has also moved away from being the only creditor in the BRI, and started a
platform where other countries and international banks can lend money.

 

But Beijing has even grander plans for the BRI, which it now touts as the
foundation of "the global community of shared future".

 

In two white papers released this month, Beijing said its form of
globalisation would be fairer, more inclusive and less judgmental than the
one led by "hegemonic" Western powers which seek a "zero-sum game".

 

"The BRI is a public road open to all, not a private path owned by any
single party," it said. Far from seeking domination as critics say, China
claimed it is "helping others to succeed while seeking our own success".

 

The view from China is that "now globalisation is in danger. The West, in
the name of 'de-risking', is actually 'de-China-risking'," said Wang Yiwei,
a professor who studies the BRI at Renmin University of China. The main
challenge "is how can the BRI build mutual connectivity and avoid a new Cold
War".

 

Beijing's trillion-dollar experiment has created a powerful tool to wield
influence. But the question is whether the world wants a Chinese-led world
order.-bbc

 

 

Wages overtake inflation for first time in nearly two years

Average pay growth rose above inflation for the first time in almost two
years, in a sign that the squeeze on living costs may be starting to ease.

 

Wages rose at an annual rate of 7.8% between June and August, figures show.

 

That was higher than average inflation over the same three months, which
measures the rate at which prices rise.

 

Revised figures showed pay overtook inflation in the three months to July,
meaning wages are outpacing prices for the first time since October 2021.

 

However, the rise in wages is an average and does not mean that cost of
living pressures are subsiding for everyone.

 

There continues to be a big gap between public and private sector pay.

 

Wage growth for public sector workers reached 6.8% between June and August,
which the Office for National Statistics (ONS) said was the biggest increase
since comparable records began in 2001.

 

But the average pay rises for private sector employees was 8%.

 

People employed in finance and business services saw the largest rise in
annual pay, followed by those in the manufacturing sector.

 

The rate of inflation has been slowing but, at 6.7% for the year to August,
it remains more than three times higher than the Bank of England's 2%
target.

 

Why is UK inflation so high?

New inflation figures will be released on Wednesday which are expected to
show price rises are continuing to slow.

 

Chancellor Jeremy Hunt, said: "It's good news that inflation is falling and
real wages are growing, so people have more money in their pockets."

 

The Bank of England has been increasing interest rates in an attempt to curb
inflation.

 

However, it held borrowing costs at 5.25% last month and, following the
latest wage growth figures, analysts at Capital Economics believe rates will
not rise any further for now.

 

"Cooling labour market conditions appeared to start feeding through into an
easing in wage growth in August," said Ashley Webb, UK economist at the
research firm. "That supports our view that interest rates have peaked at
5.25%.

 

"But as we suspect wage growth will fall only slowly, interest rates will
probably stay at their peak until late in 2024."

 

Wage growth v inflation

The number of job vacancies in the UK continued to fall, dropping by 43,000
to 988,000 between July and September.

 

Real estate companies had the sharpest fall in available jobs compared to
other industries, with vacancies plunging by almost 30% compared to the
previous three months.

 

Despite the decline in overall figures, the total number of vacancies
remains 187,000 above that seen in January to March 2020 before the Covid
pandemic hit the economy.

 

As inflation eases and employers grapple with the impact of higher interest
rates, economists expect wage rises to slow.

 

More comprehensive unemployment figures next week are expected to add to the
picture of a weaker jobs prospects; previous releases have already revealed
200,000 posts lost over the early summer.

 

And the freezing of personal allowances and tax brackets, at which the basic
and higher rates of income tax become payable - a policy dating back to 2021
- are siphoning more money out of pay packets.

 

By 2028, the Institute for Fiscal Studies is warning this will equate to a
tax rise of £50bn.

 

Moreover, Dr Swati Dhingra, one of the Bank of England's rate-setting
committee, warned the BBC last week that the bulk of the impact of interest
rates has yet to filter across the economy, via changes in spending and so
employment.

 

It may ultimately be younger and less skilled workers who are worst
affected, she said.

 

'Very difficult'

While some sectors had seen average pay growth rise sharply, others did not
fare so well, the ONS said.

 

Average wage growth for construction workers was the lowest compared to
other industries at 5.7% between June and August.

 

Wages are a concern for Alex Patrick-Smith, the executive chairman of Dudley
brick-making firm Ketley Brick.

 

He told the BBC that after overcoming soaring energy prices, demand has now
fallen by 30%.

 

Meanwhile, Ketley Brick's commitment to paying the living wage, which is set
to increase to £11 an hour from next April, Ketley Brick's Alex
Patrick-Smithhas had a knock-on effect for all employees across the company.

 

"This has unfortunately arrived at a time where it's been very, very
difficult for us because demand has fallen and we've got this cost increase
that's put upon us," he said.

 

But he is reluctant to lay off any of his 64-strong team.

 

"Without a workforce that is going to be here when we come through the other
side, we're not going to be able to produce at the level that we would like
to, and so we're doing everything we possibly can to maintain the levels of
employment", Mr Patrick-Smith said.-bbc

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2023

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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for guideline purposes only and d from third parties.

 


 

 


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