Major International Business Headlines Brief::: 23 April 2024

Tue Apr 23 09:11:12 CAT 2024

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Major International Business Headlines Brief:::  23 April 2024 

ü  Nigeria: Exclusive - Meet the Man Who Will Suceed Adeduntan As First Bank CEO

ü  Ethiopia: IMF Wary of 'Elevated' Prospect of Violence in Ethiopia

ü  Africa: Number of African-Born Millionaires to Skyrocket Over Next Decade - Report

ü  South Africa: Power Outage Sparks Days of Protest in Joburg

ü  M-Pesa: A Growing Fintech Power in Kenya

ü  Nigeria: Nestle Reacts to Allegation of Adding Sugar to Infant Formulas in Nigeria

ü  Nigeria: Dangote Refinery Explores U.S. for Crude Shipment, Expecting Third Stock

ü  Ghana: Cyber Security Authority Engages Tech Providers to Counter Misinformation Powered By Ai

ü  Liberia: Motorcyclists Warn of Mass Protest Amid No-Go Zone Enforcement

ü  Ghana Wins Preliminary Ruling in Cassius Mining $300 Million Int'l Arbitration

ü  Netflix: Profits soar after password sharing crackdown

ü  Dubai airport: Full schedule resumes after flooding chaos

ü  Volkswagen workers vote to unionize in major win for organised labour

ü  TikTok warns US ban would 'trample free speech'

ü  Tesla cuts prices in major markets as sales fall

 <https://www.cloverleaf.co.zw/> South Africa: Johannesburg Power Outage Threatens Critical Healthcare

Doctors in Johannesburg are facing concerns regarding diesel supply following a day-long power outage that affected vital health facilities, including the Charlotte Maxeke Academic Hospital, Nelson Mandela Children's Hospital, Park Lane Hospital, Brenthurst Clinic, and Rand Clinic, reports News24. The outage, which occurred due to a burned feeder board at the Ridge substation in the CBD, disrupted power to these facilities and surrounding areas on Sunday at 11:00. City Power spokesperson Isaac Mangena attributed the damage to acts of theft and vandalism. While healthcare services are utilizing alternative methods such as generators to continue patient care, there are challenges due to low diesel levels and difficulties in procuring more fuel. Charlotte Maxeke, a critical hospital serving thousands of patients monthly, faces interruptions in services such as cardiac catheterization and endoscopic procedures due to the outage. Despite efforts to maintain operations, doctors express concerns about the potential for a disaster if the situation worsens.

Celebrity Chef Sentenced to 10 Years for Fraud

Celebrity chef Lusizo Mvula Henna, 41, was sentenced to 10 years' imprisonment by the Johannesburg specialised commercial crimes court for defrauding the South African Revenue Service (Sars) of millions, reports TimesLIVE. Henna, owner of Blaque Olive Chefs, was convicted on six counts of fraud and 14 counts of money laundering, with the sentences to run concurrently. The court found that Henna fraudulently claimed R5.3 million in VAT refunds from Sars, of which R3.1 million was paid out. Investigations revealed no legitimate trading activities in Blaque Olive's accounts, indicating the claims were solely aimed at defrauding Sars. After receiving the funds, Henna quickly laundered the money within 14 days by transferring it to relatives and friends.

Durban Resident Hits Lotto Jackpot, Plans for Comfortable Retirement

A Durban resident's retirement dreams have been significantly enhanced after winning a staggering R26,888,426.60 jackpot in the National Lottery draw on April 13, according to Ithuba, the National Lottery operator, reports IOL. The fortunate winner, who purchased the winning ticket through the FNB banking platform for just R100, expressed disbelief upon receiving an SMS notification of his win and later a call from the bank confirming the substantial prize. Planning to maintain a modest lifestyle, the winner intends to invest the majority of the winnings for a comfortable retirement while also renovating his home and indulging in some tropical vacations with his wife. Additionally, a portion of the funds will be allocated towards his grandchildren's education, underscoring the importance of education and hard work in their family values. As part of its commitment to winners' welfare, Ithuba offers trauma counseling and financial guidance to winners of R50,000 and above.

More South African news

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

Rwanda: Kigali Airport Outranks JKIA in Latest Rankings

Jomo Kenyatta International Airport (JKIA) is slipping from its once-held position as the premier regional hub, trailing two spots behind Kigali in the latest rankings.

The 2024 Skytrax assessment of top airports positioned JKIA in tenth place, while Kigali secured the eighth spot among Africa's premier aerodromes. South Africa dominated the top three slots.

JKIA, traditionally hailed as East Africa's transit hub, has long facilitated passenger journeys to various destinations.

Skytrax's annual survey, encompassing over 570 global airports, evaluated traveler experiences across crucial touchpoints like check-in procedures, arrivals, transfers, retail options, security, and immigration.

Recent challenges have beset JKIA, including infrastructure issues like leaking roofs and prolonged power outages, impacting both inbound and outbound travelers.

In the past year alone, the airport suffered at least three blackouts, plunging Kenya's primary gateway into darkness. Analysts warn that such disruptions pose significant security threats, jeopardising the facility's integrity.

Despite Kenya's Category 1 status, JKIA lagged behind Bole International Airport in Addis Ababa, which secured seventh place in the rankings.

Meanwhile, Cape Town Airport's standout performance notched it the prestigious 'Best Airport Staff Service in Africa' award, accentuating South Africa's aviation prowess.

Durban King Shaka Airport clinched the title of 'Best Regional Airport in Africa,' with Johannesburg's Tambo International Airport securing third place, reinforcing the country's aviation dominance.

However, Nigeria, Africa's economic powerhouse, failed to make the top 10 list, with neither Nnamdi Azikiwe International Airport in Abuja nor Murtala Muhammed International Airport in Lagos featuring.

Kenya's journey to attaining Category One status faced delays, primarily due to unresolved security issues during the initial 2009 application.

The rejection stemmed from identified security vulnerabilities at JKIA and its failure to meet the standards outlined in the International Civil Aviation Organisation Annex 17, including recommended practices.

- Business Day Africa.

Kenya: UN Set to Establish Humanitarian Hub At Kenya's JKIA

The United Nations will establish a humanitarian logistics hub at the Jomo Kenyatta International Airport (JKIA), elevating Kenya to the status of the second African nation to host such critical infrastructure.

The establishment of this hub in Kenya is anticipated to facilitate the expeditious delivery of life-saving aid to conflict-ridden regions and areas besieged by humanitarian crises across the continent and other regions in the Global South.

Envisaged as a vital support for regional humanitarian activities, the proposed logistics hub at JKIA is slated to encompass a corridor stretching from Mombasa to Naivasha.

"Positioning the hub in Kenya will expedite the distribution of vital aid to conflict zones and humanitarian hotspots across the continent and beyond," said the Kenya Airports Authority (KAA) in a tweet.

Caleb Kositany, Chairman of KAA, underscored the agency's commitment to bolstering humanitarian efforts, stressing JKIA's pivotal role as a major aviation nexus on the continent, adeptly equipped to facilitate the swift movement of humanitarian cargo and personnel throughout the region.

Presently, several other logistics hubs globally, including those in Dubai, Copenhagen, Brindisi (Italy), and Accra (Ghana), are operational.

"The collaboration between the UN Kenya and KAA signifies a proactive stride towards enhancing humanitarian response capabilities within Kenya and beyond, pledging accelerated relief initiatives and life-saving aid to afflicted communities," said the agency.

KAA highlighted key benefits stemming from this collaboration, including the injection of foreign exchange into the economy, employment and entrepreneurial opportunities, enhanced infrastructure, amplified business prospects for the hospitality sector, and the elevation of Kenya's stature as a pivotal multilateral hub and a global nexus of significance.

- Business Day Africa.

Gambia: Over 200 Communities to Benefit From U.S.$66 Million Electricity Project

The National Water and Electronic Company (NAWEC) with funding from the World Bank last week laid a foundation stone for a US$66 million electricity project called ECOREAP, which will electrify over 298 communities in The Gambia.

The ceremony was held in Jarra Soma at the OMVG substation on Friday.

Speaking at the ceremony The World Bank Task Team Leader Ms Elise Massan Akitani, said there is no development in the dark. "We have come together with the government to put this project together which is a series of projects and the Gambia is one of the pioneers,"

She disclosed that the financing for The Gambia is US$66 million to electrify 298 communities.

She thanked the project implementation unit for the additional communities. "The project will cover almost all parts of the country. We hope that by the end of the year, all the identified communities will receive the energy as promised."

The managing director of NAWEC, Gallo Saidy, described the project as something that would set a legacy for NAWEC for the next generation. He urged for both timely and quality implementation of the project to make it long lasting.

He called for collective collaboration of all and sundry for the development of The Gambia.

The minister for Environment, Climate Change and Natural Resources, Rohey John Manjang, revealed that the project was supposed to be completed in December 2023, and now has been extended to October 31st 2024. She thus called on the contractor to not kill the hopes of Gambians.

"We hope this is the last extension, and the work be completed before October 31st because the people have been waiting for far too long," she stressed.

ECOWAS Director of Energy and Mines, Mr Bayaornibe Dabire, said in line with the ECOWAS vision 2050, it is the ECOWAS of the people; shared prosperity for all. "This means we have to do our best to contribute to socioecomic development of the regions and in line with this socioeconomic development we should know that electricity is very important for economic development."

He highlighted that electricity access is a huge challenge in the ECOWAS region since 56% among the region do not have access to energy.

- The Point.

Rwanda: Six Key Proposed Changes to Rwanda's Mineral Tax Law

Rwanda is seeking to amend its mineral tax law with a view to to promote value addition for higher revenues and discourage the exportation of the valuable natural substances in raw form, according to a bill under scrutiny in parliament.

The draft law establishing tax on minerals seeks to replace the current law of 2013 on mineral taxes.

An explanatory note of the new bill points out that the existing law presents loopholes including inefficiency in promoting value addition to minerals as both exporters of processed and unprocessed minerals pay the same tax rates, which adversely affects the mineral smelters and refineries.

The new bill attempts to address this issue, among others, in line with the National Strategy for Transformation (NST1) target to attract investment in mineral processing and value addition in the mining sector and contribute to job creation.

Samples of minerals exported for the purpose of essay, analysis or any other examination in such quantity as approved by the State organ in charge of minerals, are exempted from tax, the bill stipulates.

While this provision is like that in the current law, the bill extends the tax exemption to the processed minerals and imported minerals to be reexported, except gold, at exportation point.

The move, it indicated, is intended to address the current issue of taxing minerals sourced outside [for re-export purposes], which undermines positioning Rwanda as a mineral processing hub. This results from the fact that the existing legislation includes a single tax point (on export).

Gold for processing to get biggest tax cut than other minerals

Article 4 of the new bill (proposed) sets low rates of mining royalty tax applicable to minerals supplied to the local mineral processing facilities to encourage value addition.

The tax rates are 3 per cent of the norm value for base metals; two 2 per cent of the gross value for gemstones (minerals used in jewellery such as diamond); and 2 per cent of the norm value for platinum group metals.

Others are rare earth elements (high-tech metals such as uranium) that could attract a 2 per cent tax rate of the norm value, energy minerals (such as lithium and cobalt) with 3 per cent of the norm value; and the category of gold with 0.5 per cent of the norm value - which is the lowest proposed rate of all.

Gross value means the export value of minerals or value of minerals before deduction of any expenses by local mineral processing facility, while norm value means average monthly value of exported minerals, based on international market prices, excluding processing costs approved by the State organ in charge of minerals, according to interpretation in the bill.

As per the explanatory note of the bill, certain tax rates provided for under the existing law are excessively high, citing 6 per cent imposed on the norm value of gold which it said is considered punitive. It indicated that 'this high rate is supposedly justified by the existing uncollectible and irrecoverable tax arrears."

The existing law, under its article 5, provides for 4 per cent tax rate of the norm value for base metals; 6 per cent of the norm value for precious metals of gold category; and 6 per cent of the gross value for precious metals of diamond category.

You risk paying more tax if you export raw minerals

Meanwhile, article 5 of the bill (proposed) sets additional tax rates applicable to exported raw minerals to discourage such a practice.

The additional rates are 2 per cent of the norm value for base metals; 3 per cent of the gross value for gemstones (including diamond); 2 per cent of the norm value for platinum group metals, 1 per cent of the norm value for rare earth elements, 2 per cent of the norm value for energy minerals; and 0.5 per cent of the norm value for the category of gold.

ALSO READ: RDB unveils mineral reserves seeking investors for value addition

Expanding mineral tax base

The scope of taxable minerals in the current law is limited to base metals, precious metals of gold category and precious stones of diamond category, leaving out other categories of minerals.

Base metals are metals that oxidise or corrode easily when exposed to air or moisture and include copper, lead, zinc, nickel, aluminium, tin (cassiterite), iron, tungsten (wolfram), tantalum (coltan), and cobalt, among others.

The bill proposes an expansion of the tax base by covering minerals such as platinum group metals, and other gemstones apart from diamond category.

Obligation to withhold tax on minerals

The proposed article 6 of the bill imposes an obligation to withhold tax on minerals for local mineral processing facilities and exporters of minerals from Rwanda.

It however provides that such obligation doesn't apply if the miner and the exporter constitute the same operator, stating that he rather pays both the mining royalty tax and the export tax.

Determining mineral processing charges

Under the bill, article 9 (proposed) provides that the determination of the grade, value and processing charges for minerals shall be done by a competent authority, which shall also establish a mechanism for they are set.

The development seeks to solve a case of unfair treatment whereby, during the determination of the tax base, the current law only considers the gross market value and ignores the mineral treatment charges incurred by the exporter.

, up from the $772 million recorded in 2022, representing an increase of 43 per cent, while the target is to generate $1.5 billion by the end of 2024, according to Rwanda Mines, Petroleum and Gas Board.

- New Times.

Africa: UN Chief Urges 'Surge in Investment' to Overcome $4 Trillion Financing Gap

The UN Secretary-General on Monday called for a "surge in investment" to give developing countries a chance to build better lives for their people.

According to UN estimates, the world is facing an annual financing gap of about $4 trillion to achieve sustainable development, leaving countries with hardly any resources to invest in better education, healthcare, renewable energy or social protection.

"The Sustainable Development Goals (SDGs) are hanging by a thread, and with them, the hopes and dreams of billions of people around the world," António Guterres said, addressing the UN Economic and Social Council's (ECOSOC) 2024 Forum on Financing for Development.

In particular, the UN chief urged countries to push for the SDG Stimulus of $500 billion annually in affordable long-term finance for developing countries, which he proposed in February 2023.

Recalling that the Stimulus was welcomed by world leaders at the SDG Summit last year, he stressed "now it's time to move from words to action and deliver affordable, long-term financing at scale."

Reform global financial architecture

In his remarks, the Secretary-General also called for greater representation of developing countries in global financial systems.

"The countries who need these systems and institutions most were not present at their creation - a lack of representation that continues to this day," he said, underlining the urgent need change.

In that context, he emphasized the Summit of the Future, which will be convened on 22-23 September in New York, and the 2025 Financing for Development Conference in Spain as "key opportunities" to gather world leaders to reform the global financial architecture.

"Let's make the most of these opportunities. Now is the time for ambition. Now is the time for reform," Mr. Guterres urged UN Member States.

"Now is the time to shape a global economic and financial system that delivers for people and planet," he said.

We must work together

Paula Narváez, the ECOSOC President, also highlighted the need for the international financial architecture to channel sufficient resources towards the most vulnerable economies in the world.

Stressing the need to confront dated paradigms and to renew cooperation among nations to implement the 2030 Agenda for Sustainable Development, she reminded delegates that the task at hand "is not an easy one".

"We must work together, and we must unite all of our political capital and determination to address these challenges," she said, noting the urgent needs of least developed countries and other low-income countries.

She also called for ways to effectively coordinate public and private creditors, and ensuring that commercial creditors fulfil their obligations, as well as "significantly increasing" concessional financing.

Focus on debt crisis

Also addressing the Forum, Dennis Francis, President of the UN General Assembly called for a "relentless focus" on the debt crisis.

In 2023, the global public debt reached a staggering $313 trillion, and over the last decade, increasing far more rapidly in developing nations than in developed ones.

"Worse, developing countries are paying twice as much in interest on their total sovereign debt stocks than developed nations - hobbling them further as they try to ascend the development ladder," Mr. Francis said, noting that over 100 countries have been forced to choose between servicing their debt or invest in development.

"All the while, nearly half of humanity - or 3.3 billion people - live in countries that spend more on interest payments than on education or health ... No nation - I repeat, no nation - should be forced to gamble with their future," he stressed.

He recalled the General Assembly's first-ever Sustainability Week, which concluded on Friday.

"As participants made clear: countries must be enabled to channel their resources towards uplifting their communities and building resilience - rather than servicing excessive debt," Mr. Francis noted.

2024 ECOSOC Financing for Development Forum

- UN News.

Africa: Using AI to Tailor Drugs for Africa

Therapeutic drugs have long been ill suited to African patients' needs. Professor Kelly Chibale, the director of the University of Cape Town's (UCT) Holistic Drug Discovery and Development Centre (H3D), and his research colleagues posit that scientists can use artificial intelligence (AI) to change this.

Published in the 11 April 2024 edition of Nature, "AI can help to tailor drugs for Africa - but Africans should lead the way" outlines how machine learning (ML) can improve our understanding of how therapeutics might affect patients of African descent.

The research alluded to in the article has been undertaken as part of Project Africa GRADIENT (Genomic Research Approach for Diversity and Optimising Therapeutics). This initiative is aimed at understanding the variable genetics on the African continent and the impact they have on variable response to medicines in African populations.

Changing the DNA of therapeutics

Professor Chibale and his co-authors' inquiries were driven by the understanding that drug research and trials often fall short both at the clinical and preclinical phases, resulting in the development of medicines that aren't necessarily fit for treating African patients.

"Today, Africa makes up 15% of the world's population, but carries 20% of the global disease burden. Although we have this scenario, medicines haven't historically been optimised for the African patient population.

"This is partly because there has been a very low volume of clinical trials on the continent. On average, about 3 to 4% of global clinical trials happen in Africa. This means, by implication, that the therapeutics coming out of these trials are optimised largely for people from the developed world or at least outside of Africa," he explained.

"Today, Africa makes up 15% of the world's population, but carries 20% of the global disease burden."

"Even before those investigations, however, preclinical trials that study how we metabolise specific drugs, use tools - for example, liver cells containing drug metabolising enzymes - from Caucasian donors.

"No livers from African donors are used in the conventional discovery process, the absence of which means that the predicted dosages in clinical trials do not account for the massive genetic variation that we know exists in the African population.

"Genetic differences in the expression and activity of drug metabolising enzymes and transporters ultimately result in variable responses to therapeutic drugs."

In this vein, Project Africa GRADIENT is critically important, not only for driving the development of therapeutics that are effective in treating diseases, but also optimising the dosage that patients receive.

"Project Africa GRADIENT is an initiative to begin to understand what the impact is of this huge genetic variability that exists in Africa in terms of our response to medicines," Chibale added.

Fast-tracking medical research with AI

Traditionally, collecting the data required to advance a study like this on the African continent has been challenging.

Now, AI presents an opportunity for researchers to use the limited data they have at their disposal to build models that can effectively predict the potential outcomes of therapeutic treatments.

Within the context of the Project Africa GRADIENT initiative, H3D in collaboration with Ersilia Open Source Initiative (EOSI) have been using AI to identify genetic variants that are prevalent in Africa and likely to affect the metabolism of malaria and tuberculosis (TB) drugs.

These genetic variants of interest are being incorporated in existing mathematical models to come up with proposed tailored dosages, which need to be evaluated in ethnobridging human clinical trials.

"AI has a lot of potential to accelerate medical research in Africa."

"AI has a lot of potential to accelerate medical research in Africa, but there are several barriers for the realisation of its full potential, including access to affordable power or electricity, connectivity or digital infrastructure, and data," Chibale said.

"When it comes to data, you need rich, highly intensive, granular data to do these types of analyses. Unfortunately, this has been lacking on the African continent. There hasn't been effective collection of data and there is little access to the data - especially in a format that allows us to use AI and ML.

"However, because of the potential impact of this research, we can't wait until we have all the data that we need. So, the approach that we've taken is to recognise that there is some data that we can work with and then to use transfer learning from other areas to leapfrog over this obstacle."

According to the director of H3D, this is something that African researchers must take advantage of. In this instance, it's not only the synthesis of more appropriate therapeutic treatments, but also ensuring that Africa can capitalise on these research methods that should be a motivating factor.

"We're beginning to see applications of AI in almost every sector of society, but we are already seeing that we are lagging behind. Unfortunately, if we are not careful, this chasm that has begun to develop between Africa and the rest of the world will continue to grow and we will be left behind," he explained.

The future depends on African innovation

With myriad challenges to overcome - think access to electricity and internet services along with inadequate data collection - Chibale noted that it's essential that African scholars lead the way in this research.

"There is a very strong link and correlation between the genetics of the population, the social and physical environment in which those patients live, and treatment of disease. Therefore, it's a no-brainer, that doing the discovery and the development in close proximity to where the patients are is a better way to address unmet medical needs of those people.

"Without understanding the social and physical environment in which these patients are and the researchers understanding the communities that they're going to be serving, innovation will be pointless," he said.

"The disease burden falls largely on the shoulders of Africans. It's mostly us, so this will likely not be a priority for other countries or regions; we must take matters into our own hands to secure a better future on our continent."

"There is no question that we as Africans have been beneficiaries of the health innovation that has taken place in the developed world."

What's more, Chibale highlighted that innovative contributions to research can help Africa to take its place on the global stage.

"There is no question that we as Africans have been beneficiaries of the health innovation that has taken place in the developed world in terms of the discovery and development of innovative medicines.

"We must now contribute something in this area as we have been doing in other areas as exemplified during the COVID-19 pandemic. We can't just be beneficiaries of other people's health innovation, we must also innovate and bring something to the table."

Project Africa GRADIENT is an initiative of innovative pharmaceutical companies GlaxoSmithKline (GSK) and Novartis in partnership with the South African Medical Research Council (SAMRC). The article "AI can help to tailor drugs for Africa - but Africans should lead the way" was authored by Gemma Turon (EOSI), Mathew Njoroge (H3D), Mwila Mulubwa (H3D), Miquel Duran-Frigola (EOSI) and Kelly Chibale (H3D).- UCT.

Kenya: KEBS Blamed for Exposing Farmers to Sub-Standard Fertilizer

Nairobi — Senators are accusing the Kenya Bureau of Standards (KEBS) of dropping their guard and exposing farmers to sub-standard fertilisers.

Members of the Senate Agriculture Committee alluded that KEBS has failed Kenyans following details that the agency didn't authenticate fertilizer under the National Government fertilizer subsidy programme since 2022.

The Bureau's Managing Director Esther Ngari revealed that the agency was not involved or consulted in the government subsidy program.

"I want to clarify that KEBS was not involved in the procurement, distribution or even testing of fertilizer under the government subsidy program. The process was managed by other designated government agencies," Ngari submitted.

Irked by the sentiments, Senators accused KEBS of laxity and incompetency insisting they exposed farmers to sub-standard fertilizer.

"So what you are telling this committee is that there is a possibility that all the fertiliser supplied to farmers under the program could have been fake since you did not have the opportunity to inspect them?" posed committee chair James Murango.

Kitui MP Enock Wambua alluded to hatched plan between suppliers and top government officials to hoodwink farmers by merchandising fake fertilizer.

"From where I sit, this conspiracy runs deeper than we think. At some point, we shall be apportioning blame on all agencies involved. What part of the blame is KEBS willing to bear?" questioned Wambua.

KEBS MD Esther Ngari disclosed he was not aware of fake fertilizer in the market, saying the got wind on the issue receiving a tip off from a farmer through social media.

"The documents provided to the procurement agency showing that we had okayed the manufacture of fake fertilizer did not originate from us. We did not certify the flagged fertilizer. No such request came from us," she said.

Makueni Senator Dan Maanzo questioned why the fertilizer distributed had the mark of KEBS yet they claimed not to have certified the product.

"Is it not your duty to inspect the quality of fertilizer before the same is distributed to farmers? It is very strange that the bags which were later found to contain fake or substandard fertilizer had your symbol," said Maanzo.

KEBS blamed other government institutions including the National Produce and Cereals Board (NCPB) for not involving them in ascertaining the quality of goods.

"Our proactive approach swiftly revealed that the GPC PLUS organic fertilizer was neither certified by KEBS nor included in the government subsidy program, underscoring the risks posed by unverified products in the market," Ngari said.

- Capital FM.

Ghana's Cocoa Farmers Are Losing, Despite Record Prices

The price of cocoa on the global market soared to a record high in April, but African farmers are struggling to make ends meet. In countries like Ghana, the local pricing system has left many frustrated and hopeless.

In the Afigya Kwabre district of Ghana's Ashanti region, people like Kingsley Owusu are known for growing Ghana's leading cash crop. Owusu and his comminity have been growing cocoa beans for over 30 years.

For many years, the cocoa harvest had enabled him to take care of his children, who by now have all grown to adulthood. But now, at the age of 60, Owusu is worried about his own livelihood.

"My production levels have gone down because of climate change and diseases. And illegal mining activities are also contributing to this," Owusu told DW, adding that he barely makes enough to get by.

Owusu used to produce about 10 bags of cocoa per season, but now he struggles to fill even three bags. As a result, he has far less cash in hand than he used to.

Ghana steps in to help farmers

The Ghana Cocoa Board (COCOBOD), which regulates the sector, recently announced that it would significantly increase what is pays cocoa farmers per ton.

COCOBOD said in a statement that "the increase in the producer price of cocoa has become necessary to enhance the income of cocoa farmers."

>From the previous rate of 20,928 Ghanaian cedis (€1,460, $1,557) per ton, it pledged an increase of nearly 60%, meaning it would pay farmers 33,120 cedis per ton moving forward. That translates to 2,070 cedis per bag of cocoa with a gross weight of 64 kilograms.

But farmers like Owusu take issue with the government's new pricing policy.

Ghana farmers feel left out of decision-making

"Per the world price, we should be receiving more," he told DW, highlighting that this month, the price of cocoa on the world market had reached $10,000 per ton.

The price for cocoa is chiefly determined at commodity futures markets in New York and London, which are largely driven by supply and demand.

However, the way cocoa beans are sold is based on different standards in each country, with cocoa trading systems across Africa often varying greatly in their structures.

In Ivory Coast, for example, which is the leading producer on the continent, farmers can sell their beans to cooperatives which they belong to, or they can trade directly with private buying companies.

But in Ghana, the world's second-largest exporter of the precious bean, there is a long-established mechanism which limits farmers in a number of ways. They cannot trade with external buyers, and thus lack control over their own pricing.

They can only sell their beans to the state agency COCOBOD, which then trades that product on the global market.

Moses Djan Asiedu, board secretary of the West African Cocoa Farmers Organization, agrees with the concerns voiced by local farmers in Ghana: "COCOBOD is a pricemaker, and the price established [is] beyond [the control of] the farmers. And we think that the facility that is establishing the price is not a fair thing," he told DW.

Ghana's centralized cocoa policy

Meanwhile, the spokesperson for COCOBOD, Fiifi Boafo, told DW that when cocoa prices on the global market increase, it does not immediately affect farmers' pockets.

"The increment in price [changes] at the international market is something that we get excited about -- excited because this provides farmers with opportunities to improve revenue," he explained, adding that theydeal in "forward sales" with farmers.

But Ghana's policy of forwarding cocoa sales prices means that producers are reliant on the prices the government agrees to, without having an indepedent say in the matter.

COCOBOD says this policy is intended to allow for both the government and cocoa-producing farmers to have some collective control over the mechanisms of supply and demand on the commodities market, securing future cocoa supplies to address any risks in price volatility, while also stabilizing the market.

But Asiedu says this arrangement leaves cocoa-producing countries like Ghana helpless in securing fair pricing for all, advocating that this must change: "There is no fairness. That is why COCOBOD also agrees to [accept] whatever is given," he said.

Asiedu says that local farmers in Ghana deserve to get more than just a fraction of the price their beans are sold for, and blames government involvement in the production process for producers being short-changed.

"The government only [looks at] the cost involved in handling the cocoa before they offer a price for the farmers," he told DW.

Boafo agrees that this policy of forward selling Ghana's cocoa may not present farmers with opportunies to reap the full benefits of their output, especially now that prices are up on the world market.

However, he believes Ghana's policy also has its benefits, and that is has protected farmers in the past by establishing reliable rates for their crops.

Are farmers facing an untameable market?

According to Asiedu, Ghana might be running out of time to save the cocoa sector, as many farmers are either abandoning their businesses or retiring without having anyone could inherit their farm.

"Most farmers, about 70%, are overaged. And they lack the strength to maintain their farms, especially if they do not get enough money [...] for their labor. So they abandon their farms," Asiedu explained.

To halt this trend, both Ivory Coast and Ghana took an unusual step in 2019 to improve the living conditions of farmers. They declared that cocoa buyers would have to pay an additional premium of $400 per metric ton of cocoa beans purchased to compensate for the changing and aging cocoa labor market -- the so-called living income differential (LID)

However, a new study by the humanitarian organization Oxfam, released at the World Cocoa Conference, shows that this approach has failed, partly on account of the rising commodity prices.

But the policy also crashed in part because traders also pay a negotiated premium for cocoa that is based on qualities like taste, fat content or bean size -- what is called the "country differential."

"At least if [the price on the global market] came in at a certain level where the farmer would always be comfortable enough to still produce and the buyer would also be able to afford [cocoa], we could sustain this," Boafo told DW. "But in this situation, where the market is not working in the interest of the cocoa farmer, it becomes difficult for the sustainability of the industry."

Oxfam's study reveals that cocoa buyers simply reduced the country differentials for Ivory Coast and Ghana after these countries had introduced the $400 premium to support farmers.

No more chocolate?

Meanwhile, there is already another major crisis brewing on the cocoa horizon in these two leading producer countries: Production levels have gone down drastically in recent years.

In the crop season between 2021 and 2022, Ghana produced about 750,000 metric tons of cocoa beans. But since then, cocoa production has dropped sharly. Ghana's cocoa output for the season lasting between 2023 and 2024 is now expected to be down by almost 40%.

Boafo says that this shortage of beans was the trigger for recent prices surpassing $10,000 per ton on the world market.

Asiedu explains that in addition to not fetching fair prices for cocoa beans, the sector also faces serious threats from climate change and other factors. "We now have unsual rainfall, unusual sunshine, and sometimes you cannot predict this. We also have quite a number of [other] issues, like diseases, which farmers would have to control," he told DwW "And sometimes access to chemicals to combat [diseases] also becomes an issue."

Boafo adds that in order to protect the sector and fight global warming, smart farming methods needed to be adopted. "Climate change is a major concern," he said. "It is key that we are able to deal with the effects of climate change."

But whether the issue is climate change, commodity prices, pests, output rates or incentives to continue the cocoa trade, it would appear that the countries that produce the precious beans don't have much power to influence the price outcome.

That power, it seems, lies almost exclusively with the chocolate buyers and their middlemen.

Uganda: Traffic Diverted As Kampala - Masaka Road Section Caves in

Police have advised motorists to use alternatives routes to enable ongoing works to repair the section of Kampala-Masaka highway that caved in on Sunday continue smoothly.

Addressing journalists on Monday, Traffic police spokesperson, Michael Kananura said the caving in of the section of Masaka highway at Kyengera has seen traffic congestion alogn the highway but urged motorists to use alternative routes.

In a press briefing held at the Police Headquarters today, PRO Traffic and Road Safety, Michel Kananura, revealed updates regarding the heavy traffic congestion along the Kampala-Masaka Highway. Authorities have announced alternative routes to ease the flow of vehicles amidst disruptions to earlier communicated diversions.

Motorists are advised to utilize any of the following alternative routes incluidng Katende-Nakawuka-Kasenge-Nateete or Katende-Nakawuka-Kisubi-Entebbe Road, Buddo-Kasenge-Lweza and Katende-Mabuye-Bujjuko-Mityana Road leading to Kampala," Kananura said.

He urged the public to exercise patience and adhere to the directives of traffic personnel deployed on the ground.

"It is imperative for motorists to follow the designated diversions to mitigate further congestion and ensure a smooth flow of traffic."

Traffic police said Uganda National Roads Authority (UNRA) has deployed a team to the affected section to expedite restoration efforts.

This is the second time the stretch from Busega to Nsangi along Masaka highway has caved in.

In December 2023, a section of the road in Busega caved in after a heavy downpour that pounded the city.

On several occasions, a certain part of Kampala-Masaka highway in Lwera has caved , especially towards Christmas, a situation partly contributed to heavy traffic on the route during this time.

- Nile Post.

Ethiopia: Grand World Investment Holding Group Expresses Desire to Invest in Ethiopia

Addis Ababa — China's Grand World Investment Holding Group has expressed desire to engage in the manufacturing sector of Ethiopia.

According to the Embassy of Ethiopia in Beijing, the Deputy Head of the Ethiopian Mission to China, Ambassador Dawano Kedir held discussion with President of Grand World Investment Holding Group, Wenguang Liu.

Accordingly, Ambassador Dawano briefed the president about Ethiopia's potential investment areas that would help the investment holding group engage particularly, in the manufacturing sector, it was indicated

Grand World Investment Holding Group was established in Beijing in 2013 and it is an investment group focusing on key sectors such as finance, real estate, cultural media, ecological agriculture, medical health, rural revitalization, and technology industries.- ENA.

South Africa: Scrap Electricity Tariff Hikes, Demand Durban Residents

Should Eskom's proposed tariff increase be accepted, more families will have to allocate a larger portion of their meagre income to pay for electricity, says Verushka Memdutt of the South African Informal Traders Forum in Durban.

Memdutt was among about 100 eThekwini residents and members of a coalition of grassroots organisations, including Abahlali BaseMjondolo, Ubunye Bamahostela and Right2Know, who marched to the Durban City Hall on Friday afternoon.

The march, led by the South Durban Community Environmental Alliance (SDCEA), comes after various recent community meetings where residents voiced concerns over rising electricity tariffs and municipal bills.

Electricity tariffs increased by 18.5% last year and the municipality is proposing a further 14% this year.

The eThekwini municipality is also proposing increasing property rates by 8% and tariffs for waste removal by 8%, sanitation services by 13%, and water by 15%. Mayor Mxolisi Kaunda announced these adjustments when presenting his draft budgets for the metro.

EThekwini spokesperson Gugu Sisilana said the proposed tariff increases had not been approved by the council and public consultation was still underway.

The municipality's proposed budget for 2024/25 is R67.3-billion.

The deadline for comments was Friday.

But Memdutt and others marching on Friday are worried that their concerns had fallen on deaf ears and the increases will go ahead.

"Poor families may have less money for other necessities like food, education, and healthcare. Higher tariffs further squeeze profit margins, making it harder for small businesses to survive," she said.

The Alliance called for the swift implementation of renewable energy and storage systems to save money and to scrap tariff increases.

"Communities are already impoverished by 15 years of price hikes, driven up way beyond the rate of inflation by the escalating costs of Eskom's corrupt Medupi and Kusile coal-fired power stations, which back in 2010 SDCEA was the lead NGO in the campaign to halt financing.

"At municipal level, our clear demand is that our government should support socially-owned, renewable energy systems and help us with climate adaptation to avoid the kinds of rain bombs that were so devastating a year ago, and that left the city utterly unprepared for 500 deaths and tens of billions of rands worth of damage," said Desmond D'Sa, head of SDCEA.

The memorandum was accepted by Sibusiso Nzimande, chief director in the office of the Premier, and Mlungisi Ntombela from the Mayor's office.

- GroundUp.

US watchdog sues to block $8.5bn handbag takeover

The US competition watchdog has sued to block fashion accessory giant Tapestry's $8.5bn (£6.9bn) takeover of rival Capri.

Tapestry owns handbag makers including Coach and Kate Spade, while Capri's brands include Michael Kors.

The US Federal Trade Commission (FTC) said if allowed, "the deal would eliminate direct head-to-head competition between Tapestry’s and Capri’s brands".

In response Tapestry said "the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop".

Together, the firms employ about 33,000 staff globally but the FTC argued the deal could reduce wages and their benefits.

Coach and Kate Spade are known for what their parent firm calls "accessible luxury" handbags - quality leather and craftsmanship products at affordable prices.

Tapestry offered to buy Capri in August, hoping to create a US fashion giant that could compete against bigger European rivals such as Chanel, Hermes and Louis Vuitton parent LVMH.

The FTC requested more information on the deal in November.

Announcing its decision to take legal action, the FTC said the deal would give Tapestry a dominant share of the market.

Tapestry said in a statement that "in bringing this case, the FTC has chosen to ignore the reality of today’s dynamic and expanding $200 billion global luxury industry".

Capri, which also owns Versace and Jimmy Choo, said "this transaction will not limit, reduce, or constrain competition" as the two firms "operate in the fiercely competitive and highly fragmented global luxury industry".

It is unusual for the US regulator to try to block a high-end fashion merger.

But in December, authorities issued new merger guidelines to encourage fair, open and competitive markets.

By using a new tactic under the guidelines, the FTC has argued that the merger of Tapestry and Capri would directly affect hourly workers who may lose out on higher wages due to reduced competition for employees.

Earlier this month, the companies received regulatory clearance for the deal from the European Union and Japan.

The two companies need to close the deal by 10 August.-BBC

FTSE 100 stock index closes at new all-time high

The FTSE 100 stock index of the UK's biggest publicly-listed companies has reached a new record closing price.

The fresh all-time high was driven by a weaker pound and easing tensions in the Middle East.

The index closed on Monday at 8,023.87 points to mark the new record, surpassing its previous high of 8,012.53 in February last year.

It was up 1.62% at its close, with retailers M&S, Tesco, Sainsbury's and Ocado among the big risers of the day.

Shares have benefitted from a weaker pound because the index on the London Stock Exchange has many firms with big footprints overseas.

A weak pound makes goods they export cheaper for foreign buyers and helps inflate the value of business done elsewhere.

Rachel Winter, wealth manager at Killik & Co, said: "The FTSE contains a large number of big international companies that earn their revenue in dollars and report their profits in sterling.

"The strength of the dollar is due to sticky inflation in the US, which means that US interest rates will remain higher for longer."

The pound was down 0.2% at $1.234 as a result, representing sterling's lowest point against the US currency for around five months.

Axel Rudolph, senior market analyst at IG, said the "de-escalation in the Middle East" also played its part to propel the FTSE 100 to its new record.

Gaining strength

The index has been steadily ticking upwards in recent weeks on hopes the Bank of England will cut interest rates as inflation falls steadily back down to the central bank's 2% target rate.

By making borrowing less expensive, lower interest rates discourage saving and can increase borrowing for home purchases and business investments, helping to breathe life back into the economy.

It would be the first cut since March 2020.

Dan Coatsworth, investment analyst at AJ Bell, said: "The Bank of England is now expected to start cutting rates before the US Federal Reserve sharpens its knife and that's led to divergent fortunes for the respective currencies."

He added that the "favourite items on the menu to fill portfolios" included Marks & Spencer, which was the recipient of a positive broker note, alongside Next and Sainsbury's. "All three saw their ratings lifted from 'hold' to 'buy' as part of a review of the broader retail sector," he said.-BBC

How Chinese firms are using Mexico as a backdoor to the US

The reclining armchairs and plush leather sofas coming off the production line at Man Wah Furniture's factory in Monterrey are 100% "Made in Mexico".

They're destined for large retailers in the US, like Costco and Walmart. But the company is from China, its Mexican manufacturing plant built with Chinese capital.

The triangular relationship between the US, China and Mexico is behind the buzzword in Mexican business: nearshoring.

Man Wah is one of scores of Chinese companies to relocate to industrial parks in northern Mexico in recent years, to bring production closer to the US market. As well as saving on shipping, their final product is considered completely Mexican - meaning Chinese firms can avoid the US tariffs and sanctions imposed on Chinese goods amid the continuing trade war between the two countries.

As the company's general manager, Yu Ken Wei, shows me around its vast site, he says the move to Mexico has made economic and logistical sense.

"We hope to triple or even quadruple production here," he says in perfect Spanish. "The intention here in Mexico is to bring production up to the level of our operation in Vietnam."

The firm only arrived in the city of Monterrey in 2022, but already employs 450 people in Mexico. Yu Ken Wei says they hope to grow to more than 1,200 employees, operating several new lines at the plant in the coming years.

"People here in Mexico are very hardworking and fast learners," says Mr Yu. "We've got good operators, and their productivity is high. So, on the labour side, I think Mexico is strategically very good too."

Certainly, nearshoring is considered to be providing an important shot in the arm to the Mexican economy - by June of last year, Mexico's total exports had risen 5.8% from a year earlier to $52.9bn (£42.4bn).

Listen to Will Grant's report on Chinese firms in Mexico for the BBC World Service

The trend is showing few signs of slowing down. In just two months of this year, there were announcements of capital investment in Mexico of almost half of the annual total back in 2020.

The Man Wah sofa factory is located inside Hofusan, a Chinese-Mexican industrial park. Demand for its plots is sky high: every available space has been sold.

In fact, the Industrial Parks Association of Mexico say every site due to be built in the country by 2027 has already been bought up. Little wonder many Mexican economists say China's interest in the country is no passing fad.

"The structural reasons that are bringing capital to Mexico are here to stay," says Juan Carlos Baker Pineda, Mexico's former vice-minister for external trade. "I have no indication that the trade war between China and the US is going to diminish any time soon."

Mr Baker Pineda was part of Mexico's negotiating team for the new North American free trade agreement, USMCA.

"While the Chinese origin of the capital coming into Mexico may be uncomfortable for the policies of some countries," he says, "according to international trade legislation, those products are, to all intents and purposes, Mexican".

That has given Mexico an obvious strategic foothold between the two superpowers: Mexico recently replaced China as the US's main trading partner, a significant and symbolic change.

Mexico's increased trade with the US has also come about in part through a second key aspect of nearshoring in the country: US firms setting up Mexican facilities too, sometimes after relocating production from factories in Asia.

Perhaps the standout announcement came from Elon Musk last year, when he unveiled plans for a new Tesla Gigafactory outside Monterrey. However, the electric car company is yet to break ground on the $10bn plant.

And, while Tesla is apparently still committed to the project, it has slowed its plans amid concerns over the global economy, and recent job cuts at the carmaker.

But regarding Chinese investment, some urge caution over Mexico being drawn into the wider geopolitical struggle between the US and China.

"The old rich guy in town, the US, is having problems with the new rich guy in town, China," says Enrique Dussel of the Centre for China-Mexico Studies at the National Autonomous University in Mexico. "And Mexico - under previous administrations, and in this one - doesn't have a strategy vis-à-vis this new triangular relationship."

With elections looming on both sides of the US-Mexico border, there may be new political considerations ahead. But whether it's Donald Trump or Joe Biden in the White House over the next four years, few expect any improvement in US-China relations.

Mr Dussel thinks nearshoring is better defined by what he calls "security-shoring", saying Washington has placed national security concerns above all other factors in its relationship with China. Mexico, he argues, must be wary of being caught in the middle.

Amid this tension, Mr Dussel says: "Mexico is putting up a big sign to China saying: 'Welcome to Mexico!'. You don't need a PhD to know that this isn't going to end well for bilateral relations between the US and Mexico in the medium term," he adds.

A new unit being built at the Chinese-Mexican industrial park in Monterrey

Chinese firms are racing to buy up new-build factory space in Mexico

Others are more optimistic. "In my mind, the question is not if this trend will continue, but rather how much of this trend can we take advantage of," says former Mexican trade official, Juan Carlos Baker Pineda.

"I'm sure people are having these same discussions in Colombia, in Vietnam, in Costa Rica. So, we need to make sure in Mexico that those conditions that are aligned by themselves go hand-in-hand with corporate and government decisions to sustain that trend in the long term."

Back in Monterrey, the talented Mexican seamstresses at Man Wah Furniture put the finishing touches to another sofa before it's shipped north.

When an American family buys it at a Walmart store near them, they may have little idea of the complex geopolitics underpinning its production.

But whether nearshoring is a clever back door to the US, or part of a costly war between superpowers, it's currently Mexico's key advantage in these hostile times of global trade.-BBC

 Invest Wisely!

Bulls n Bears 

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