Major International Business Headlines Brief::: 30 April 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  30 April 2024 

 


                                                                                  

 

	
 


 

 


 

ü  Nigeria: Motorists Hike Transport Fares in Abuja As Fuel Scarcity Bites Harder

ü  Uganda's Tax System Isn't Bringing in Enough Revenue but Is Targeting Small Business the Answer?

ü  Namibia: Fuel Hike On Cards As Oil Prices On Upward Trend

ü  Africa: Bridging the Gap Between Science and Policymaking

ü  Nigeria: Young Middle-Class Nigerians Are Desperate to Leave the Country - Insights Into Why

ü  Sudan Gold Revenues 'Unaffected By War'

ü  Ethiopia: News - Cetu Appeals for Peace, Economic Relief Amidst Conflict and Rising Costs of Living

ü  Kenya: Mai Mahiu-Narok Road Closed After Severe Crack Occurs

ü  Namibia: Electricity's Inevitable Price Shocker

ü  Namibia: Redforce Lodges Urgent Application

ü  HSBC chief executive unexpectedly steps down

ü  Tesla China rival BYD sees profits and sales fall

ü  Vinted makes first profit on used fashion

ü  Migrants hit by high fees to send money home

 


 

 


 <https://www.cloverleaf.co.zw/> Nigeria: Motorists Hike Transport Fares in Abuja As Fuel Scarcity Bites Harder

The crisis has led to an increase in the cost of transportation and commuters were left stranded at various bus stops on Monday as workers and students returned from work and school, respectively

 

Transport fares increased significantly in Abuja, the nation's capital, as motorists scrambled to get petrol amid scarcity on Monday.

 

Commercial drivers hiked transport fares on various routes across the city despite assurances by the Nigerian National Petroleum Company Limited (NNPC Ltd) that the challenge in the supply of petrol would be resolved.

 

A PREMIUM TIMES correspondent who monitored the situation found that transport fares jumped by over 50 per cent, depending on the routes.

 

Background

 

Last week, fuel queues resurfaced at filling stations across Abuja, Nigeria's capital city, as motorists struggled to purchase petrol.

 

Many filling stations in Wuye, the Central Business District, Wuse, Kubwa, Gwagwalada, Apo, and the Lugbe areas of the city sold petrol at prices ranging between N680 and N700.

 

However, the retail outlets of the NNPC continued to sell the product for N617 per litre.

 

Black marketers were also seen hawking petrol in jerry cans as interested motorists and other residents jostled to buy at prices ranging between N1000 and N1200 per litre.

 

In the wake of the worsening fuel crisis, the NNPC Ltd warned petroleum products consumers against panic buying and hoarding of fuel.

 

The chief corporate communications officer of the NNPC Ltd, Olufemi Soneye, told PREMIUM TIMES last Thursday that the challenge in the supply of petrol currently being experienced in some areas across the country is a result of logistics issues and they had been resolved.

 

Mr Soneye said the issue had nothing to do with the NNPC as the company had enough stock of petroleum products.

 

"We have abundant products. It is just a transportation glitch. Some trucks are already loading from Lagos and are coming into Abuja. Everything should be back to normal hopefully by the end of today.

 

"You will see that all the trucks will start coming in. So there is nothing to be concerned about. I also wish to reiterate that the prices of petroleum products are not changing. I urge Nigerians to avoid panic buying as there is a sufficiency of products in the country," Mr Soneye said last Thursday.

 

Scarcity

 

But on Monday, this newspaper found out that the long queues of anxious motorists continued to build outside most filling stations in the capital city, as most vehicle owners and commercial cab operators relocated from their homes to the stations in an attempt to buy fuel.

 

The crisis has led to an increase in the cost of transportation and commuters were left stranded at various bus stops on Monday as workers and students returned from offices and schools, respectively.

 

Transportation hike

 

Surveys conducted across the city showed that the transport fares shot up on many routes as motorists lamented the difficulties of getting fuel.

 

PREMIUM TIMES found that transport fare from Wuse Zone 2 to Wuse market that was previously N100 shot up to N200. It was also observed that vehicles conveying passengers from Lugbe to Secretariat charged N500 against the normal N300 to N400 while the fare for a trip from Kubwa to Wuse increased from N500 to N800.

 

Similarly, a trip from Jikwoyi to Wuse which used to cost N500 has been increased to N1000 while passengers from Alaita to Berger had to pay N500 instead of N400.

 

Also, the transport fare from Church Gate to Wuse Zone 2 went up from N100 to N200.

 

Some motorists who spoke to PREMIUM TIMES said they woke up early on Monday to buy fuel but were disappointed as most fuel stations were shut.

 

"I woke up very early to see if I could get fuel but I got so disappointed when almost all the fuel stations I drove to didn't even open. To be frank with you, this fuel issue is becoming so pathetic. I just drove down here when my friend told me this station has fuel.

 

"I have been in this queue since 9 p.m. to get fuel. This is 12:30 p.m. and still, it has not been my turn to get the product. As you can see there are a lot of queues here," Monday Ugwu, a car owner at the NNPC retail outlet at the Central Business District along Wuse Road, told PREMIUM TIMES.

 

A motorist, Tanimu Yusuf, said he increased his fare for transportation because he had to resort to the "black market" to get petrol.

 

"It is very difficult to get petrol now and I can't waste my time queuing up in a fuel station just because I want to buy fuel. Since last week I have never queued up at a fuel station. All I do is buy black market and increase my fare price.

 

"If you want to enter my car and I tell you how much I collect, if you don't like it, go down," he said.

 

A civil servant, Maduabuchi Chibuzo, told PREMIUM TIMES on Monday morning that he had to opt for a ride to go to his office.

 

"Could you believe that I have spent almost an hour at this bus stop? I don't know why public buses became so scarce this morning. I just ordered a ride to come take me to my office. I would have turned back and gone home but I have a very important meeting to attend and it's almost time for the meeting," he said.

 

Another civil servant, who gave his name as Idorenyin, said "This country is a joke. The government has now taken this issue as a normal one. The country is becoming difficult to live in.

 

"Transportation fares to go to work have gone up within days of this fuel scarcity. How do they want us to survive?" he asked.

 

Kolawole Seun, a taxi driver, said "Increasing the transportation fare is just a way out for us transporters because to get fuel this day is not easy.

 

"You will notice that most filling stations in Abuja now were out of stock, leaving long queues of vehicles stretching into distances in some NNPC stations."

 

Marketers Speak

 

Speaking during an interview on Channels Television's 'The Morning Brief breakfast programme' on Monday, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, blamed the fuel scarcity across the country on a supply challenge from NNPC Limited.

 

Mr Gillis-Harry, who explained that the supply challenge has not been resolved, however, acknowledged the efforts by NNPC Ltd to solve the problem.

 

He said NNPC has its own outlets that they also serve.

 

"So if they have some logistics issues, that will possibly be what is internal to NNPC. But as for us, PETROAN members, we can tell Nigerians for real that if we have petroleum products delivered to us, supplied to us upon payment for those same products, we will supply them to Nigerians.

 

"I would like to correct Nigerians that we retail outlet owners or marketers as they generally call all of us is the reason for this. We do not have any reason not to serve the public and we are willing to serve the public.

 

"All that is required is for us to have petroleum products delivered to us from NNPC and we will make sure that our retail outlets are open, some of them are even open for 24 hours. The challenge of logistics is only relevant to the NNPC retail outlets," he said.

 

Meanwhile, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the association expects that by next week, NNPC should be able to restore supply.

 

"The situation is that there is no product. Once there is a lack of supply or inadequate supply, what you will see is scarcity and queues will emerge at filling stations. On the part of NNPC Ltd, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.

 

"Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports. I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult," he added.

 

He said the NNPC group CEO has assured them that there will be improvement in the supply chain because their vessels are arriving.

 

"Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it. We expect that by next week or so, NNPC should be able to restore supply and within another week, normalcy should return," he explained.

 

- Premium Times.

 

 

 

Uganda's Tax System Isn't Bringing in Enough Revenue but Is Targeting Small Business the Answer?

Uganda, with a fiscal deficit of 5.6% in 2023, has increasingly turned to local resources to make up for its revenue shortfall since the World Bank suspended its funding on 8 August 2023 over the country's anti-homosexuality law. In early April 2024, traders in downtown Kampala protested against what they saw as high taxes and harsh enforcement tactics of the Uganda Revenue Authority. Maria Jouste, who has researched Uganda's tax system, including its taxing of small businesses, compliance rate and personal income taxes, answers four questions.

 

What were the recent protests about?

 

In early April 2024, traders in Kampala began protesting against high taxes and the enforcement strategies of the Uganda Revenue Authority. Similar protests were seen in Dar es Salaam, Tanzania in May 2023 over high taxation and heavy-handed enforcement of levies on small businesses.

 

In Kampala, the protest has centred on the electronic receipting and invoicing solution, a new digital system designed to enhance value-added tax (VAT) collection by tracking and managing the invoices and receipts. Introduced in 2020, it was first enforced on large businesses. Enforcement for small and medium-sized businesses started in April 2024.

 

 

The revenue agency has not clearly stated how much it expects to collect from these measures but its actions are born out of high revenue targets which might be too ambitious. Overly ambitious revenue targets can do more harm than good in terms of the social contract and poverty.

 

The Uganda Revenue Authority turned its focus on traders and VAT law enforcement after the country faced a decline in development aid. It is not clear how much Uganda has lost as result of the World Bank funding freeze but the government has recently indicated a plan to borrow US$150 million from China's Exim Bank.

 

What is Uganda's tax base?

 

Compared to many other countries, Uganda has a narrow tax base, with tax collections totalling less than 14% of GDP. The average for sub-Saharan countries is 18%. A large share of economic activity is informal and untaxed.

 

In developed countries collection rates are much higher. The UK, for example, collects roughly 40% of its GDP annually.

 

According to Afrobarometer, a pan-African independent research network that measures public attitudes on economic, political and social matters in Africa, only 1 million Ugandans pay tax, though 3.5 million were registered as taxpayers at the end of 2022/2023 fiscal year. This is a very low number for a country with Uganda's population at almost 50 million.

 

The reasons why most of those registered don't remit taxes are varied. First, the Uganda Revenue Authority campaigns to register people but does not have the capacity to enforce tax laws. Second, not all registered taxpayers are liable for taxes. Third, there's a lack of tax education.

 

 

The country's top 1,000 taxpayers contribute more than three-quarters of all tax revenue collections. Most Ugandans are employed in the informal sector and the government has not developed efficient ways of collecting taxes from them.

 

The informal sector accounts for over half of GDP and over 80% of employment. Small and medium-sized businesses only pay the presumptive tax, which contributes less than 0.05% of tax revenues.

 

Hence the tax enforcement project targeting small and medium-sized businesses, employing the electronic system.

 

How effective is Uganda's tax regime in raising money?

 

The Ugandan tax regime is less effective than many of its sub-Saharan counterparts.

 

The largest domestic revenue sources are VAT and excise duty (22%), pay-as-you-earn income tax (PAYE) (18%) and corporate income tax (8%).

 

A number of factors are at play:

 

generous tax incentives and tax holidays. Recent estimates show that revenue losses due to several corporate tax incentives reached a peak of US$42 million in 2020.

difficulty in taxing the rich

widespread tax avoidance. For example, multinational companies pay much less corporate income tax than large domestic firms (as a share of profits) due to profit shifting outside Uganda.

widespread informality

income distribution with a high share of low-income individuals (based on current tax law, most ordinary citizens are not liable for income taxes)

inefficiencies and corruption in tax collection services.

How fair or unfair is it?

 

Ugandans perceive that their tax regime is unfair to ordinary citizens, that the government does not spend tax money fairly, and that tax officials are corrupt. The recent protests by traders illustrate how unfair small business owners believe the tax burden to be.

 

Fairness in taxation varies widely by perspective. In general, a progressive tax system - where the rate is higher for the rich than for low-income earners - is widely argued to be a fair system. Uganda's tax laws have elements of being progressive, particularly in personal income taxation.

 

We recently evaluated Uganda's personal income tax and found it to be fairly progressive.

 

The Uganda Revenue Authority has tried to improve tax collection from wealthy individuals, but with uneven success. A recent study documents many of the challenges in taxing the rich. This relative inability to enforce tax laws on the country's wealthiest individuals suggests that the tax regime is somewhat unfair.

 

Generous tax incentives and holidays predominantly benefit large firms. Smaller businesses rarely qualify for these benefits. The corporate statutory tax rate is 30%, but the estimated effective tax rate averages 14% across all firms and drops for the largest firms.

 

What needs to be reformed?

 

Uganda faces serious challenges in raising sufficient funds for public services and economic development. Key tax policies have remained unchanged for a decade. Personal income tax rates have been the same since 2012 and the VAT threshold and presumptive tax thresholds since 2015.

 

Reforms on these issues should be considered to adjust for high inflation and the economic consequences of the COVID-19 pandemic.

 

Business taxation also needs to be reformed. Recent studies on Uganda's presumptive tax and small businesses suggest the taxation should be simplified.

 

Bigger revenue gains might be accomplished by focusing on large corporate taxpayers. For example, tax incentives should be reconsidered.

 

And greater transparency in public spending and service delivery can improve taxpayer morale and compliance.

 

Maria Jouste, Research Associate, United Nations University

 

 

 

 

 

Namibia: Fuel Hike On Cards As Oil Prices On Upward Trend

The petrol price will go up by 70 cents per litre, while both grades of diesel will increase by 40 cents a litre this Thursday. This means the price at port of import will be N$23 per litre for petrol, N$22.17 per litre for diesel 50ppm and N$22.37 per litre for diesel 10ppm.

 

The energy ministry has cited an upward trend global crude oil prices driven by persistent supply-side disruptions on refineries that contribute to market uncertainty. The ministry made the decision following the review of the fuel prices for May 2024.

 

As a fuel hike marginally but automatically drives up transportation costs, this is usually passed on to consumers through an increase in the price of goods and services. As a consequence, this is translated as an inflationary uptick.

 

"Global crude oil prices maintained their upward trend throughout March and April 2024, driven by increased geopolitical tensions in Eastern Europe and the Middle East. Notably, the supply-side disruptions on refineries in several parts of the globe continue to persist and contribute to market uncertainty, thus edging up oil prices globally. This is further reinforced by the OPEC-driven voluntary production cuts since the onset of the second quarter of 2024, exerting further upward pressure on oil prices," reads a ministerial statement.

 

The ministry's latest assessment indicates the average price of Unleaded Petrol 95 in April 2024 stood at US$108.983 per barrel, up from US$103.631 per barrel at the end of March 2024, indicating an increase of US$5.352 per barrel, or 5.2% during May 2024.

 

Moreover, the average price of Diesel 50ppm in April 2024 stood at US$103.536 per barrel, compared to US$100.512 per barrel at the end of March 2024, which was an increase of US$3.024 per barrel or 3%. The average price of Diesel 10ppm in April 2024 was at US$104.459 per barrel, up some 2.7% compared to May.

 

The currency exchange rate for April 2024 showed a moderate appreciation of the Namibia dollar against the greenback, coming in at an average of N$18.86 per US$, compared to N$18.8603 per US$ at the end of March 2024.

 

The minister pointed out that this currency gain was not sufficient to outweigh the observed aggregate increase in global oil prices.

 

In addition, the ministry noted under-recoveries on both petrol and diesel products, amounting to 123.567 cents per litre on petrol, 60.214 cents per litre on diesel 50ppm and 51.208 cents per litre on diesel 10ppm.

 

The minister extended the temporary relief margin of 20 cents per litre offered to the oil importers for another six months or until such time the relief margin is reviewed, or the Petroleum Import Coordination System is implemented, whichever occurs first.

 

"The ministry would like to emphasise that Namibia is subject to international oil market prices, with limited headroom to avoid the impact of these developments. However, the ministry will continue to work prudently towards ensuring that the security of fuel supply is maintained, and the capacity of the National Energy Fund is optimised to stabilise fuel prices in a sustainable manner," they stated.

 

- New Era.

 

 

 

Africa: Bridging the Gap Between Science and Policymaking

This article was produced with the support of the International Network for Governmental Science Advice (INGSA).

 

Making sure scientific advice is objective is one of the key concerns of the International Network for Governmental Science Advice, says its Africa head Mobolanji Oladoyin Odubanjo.

 

The fifth International Conference on Science Advice to Governments, INGSA2024, takes place in Kigali this week (1-2 May), featuring global leaders in evidence for policy, convening for the first time in the global South.

 

Mobolanji Oladoyin Odubanjo, chairman of the Africa chapter of the International Network for Science Advice (INGSA) and executive secretary of the Nigerian Academy of Science, spoke to SciDev.Net about evidence-based policymaking and ethical artificial intelligence (AI).

 

Could you briefly describe the objectives and mission of INGSA?

 

As a global network of professionals, scientists, and decision-makers, INGSA seeks to advance evidence-based decision-making. Our goal is to close the knowledge gap between science and policy by ensuring that policy decisions are informed by scientific research and that societal issues are addressed.

 

What advances have INGSA brought about in Africa and what are the challenges?

 

Science can, in fact, change the course of Africa. Although we've come a long way in supporting evidence-based decision-making, much more needs to be done. Making sure scientific advice is objective is one of the main concerns. Science is about rigorous testing and validation of evidence, not about personal ideas or biases.

 

How can the advice provided by scientists be impartial, particularly when it comes to contentious and complicated topics like pandemics?

 

The key resides at the heart of science: the scientific process. The beauty of science is that it is founded on processes that are well-defined and reproducible. This means that if I conduct a scientific experiment here, you can replicate it elsewhere in the world and hopefully receive the same findings. Sure, there may be slight variation based on the circumstances, but the principle stays the same. Scientists can compare findings and identify potential errors or biases.

 

Scientific findings are subjected to a rigorous review procedure. Papers go through a peer-review procedure where other experts in the field examine the findings and identify any flaws. This reduces the impact of biases.

 

Also, transparency is just as crucial. COVID-19, for example, had numerous unknowns. Scientists must be honest about what they do not know. Sometimes total certainty isn't possible. Scientists should disclose their knowledge limitations and provide the best estimates based on existing information. They should also clearly communicate the necessity for further research. Admitting these uncertainties does not harm scientific advice; rather, it increases it by instilling trust and public confidence.

 

 

How can INGSA play a role in protecting science and building public confidence in scientific advice?

 

Building trust in science is a big part of what INGSA does. We do this by improving the capacity of policymakers and scientists. INGSA teaches scientists how to explain their research to non-experts. This involves avoiding technical jargon and communicating clearly. INGSA stresses good research methodology and also trains policymakers to understand and use scientific advice.

 

How can scientists and policymakers develop their science communication skills, so that the science is communicated without ambiguity?

 

To get scientific results to policymakers in a way that they can use, we need to put clear and simple communication first. This means not using technical language and making sure that a lot of people can understand the information.

 

When talking to policymakers, it is important to use simple language and give explanations for technical terms that may be used. Scientist must also remember to adjust their language when speaking to an audience with diverse backgrounds.

 

In the end, the goal is to make sure that policymakers fully understand how important the scientific results are and how they affect policy choices. After all, policymakers are not likely to act on information they do not understand.

 

How can policymakers be better equipped to understand and utilise scientific advice?

 

Policymakers need training in a few areas. First, they need to be able to evaluate information effectively. This includes understanding how to find reliable scientific information, assess its quality, and determine how it can be used in different stages of the policymaking process. Training should also cover how to integrate scientific evidence seamlessly into policy decisions.

 

How can traditional science organisations, such as universities and research labs, collaborate with emerging data sources, such as citizen science programmes and big data analytics?

 

Citizen scientists and online sources can provide new ideas and information to regions that regular research may miss. However, there is also a chance of incorrect information being mixed in. Consider someone knowingly or unintentionally disseminating incorrect information. We need a way to filter through everything and ensure that what we're using is reliable.

 

The good news is that non-scientists provide valuable information. They might notice things professionals overlook and that can be a great starting point for further research. The key is to take those citizen science findings and put them through the proper scientific verification methods.

 

As artificial intelligence (AI) becomes more powerful, how can scientists and politicians collaborate to ensure that it is used responsibly across multiple fields?

 

There is no simple solution, but one thing is certain: everyone in the scientific community is paying attention to AI. It's a powerful tool with huge potentials, but we must be cautious about how we use it. AI will have an impact on a variety of disciplines, so we need a framework to oversee its development and use. Scientists and policymakers must collaborate to figure out how to make AI a force for good, so that it used responsibly and sensibly across board.

 

AI seems biased against Africa. There's a lack of African representation in the data used to train these systems. What role can INGSA play to ensure ethical AI use and better representation for Africa?

 

That's a critical issue. To move forward, we need more dialogue between scientists and policymakers. INGSA can play a role in encouraging these conversations. By discussing AI's potential impact on Africa's development, we can raise awareness about the need for preparedness and ethical use of AI.

 

Another key step is bridging the gap between policymakers and scientists. Their collaboration is crucial to ensure these important conversations happen now, not later. While Africa might seem behind, there's a wealth of expertise here. The key is to bring these experts together with policymakers to leverage their knowledge.

 

What outcomes do you think will emerge from the INGSA2024 conference?

 

The first is greater awareness of evidence-based policy making. We want to raise awareness across the continent about the importance of basing policies on solid scientific evidence. Second, is networking and growing a community of science advisers to this approach. Lastly, more inclusiveness in the kind of information that is used for evidence-based policy making.

 

This piece was produced by SciDev.Net's Sub-Saharan Africa English desk.

 

This article was supported by the International Network for Governmental Science Advice (INGSA). INGSA will hold its fifth international conference, INGSA2024: The Transformation Imperative, in Kigali, Rwanda, on May 1-2. More information can be found here.

 

- SciDev.Net.

 

 

 

 

Nigeria: Young Middle-Class Nigerians Are Desperate to Leave the Country - Insights Into Why

Since the 1980s, migration has been a part of the Nigerian middle-class psyche, catalysed by the usual suspects: high unemployment, security concerns, infrastructure gaps, and poor governance. Migrants tends to be middle-class since one needs resources to migrate.

 

For many young Nigerians, the bloodshed that ended the 2020 #EndSARS protests against police brutality proved to be a decisive factor. Their desire to leave the country crystallised into action. Leaders had disregarded their criticisms and, for some youth, it seemed futile to continue struggling.

 

In 2022, 70% of Nigerians aged 18-35 surveyed by the African Polling Institute reported they would relocate if given the opportunity, a marked jump from 39% across all age groups in 2019. Moreover, the number of passports newly issued or renewed almost doubled, from one million in 2021 to 1.9 million in 2022.

 

Data from popular destinations, such as the UK and Canada, suggest that education is the primary migration pathway. In the UK, the Office for National Statistics reported an increase in Nigerian students, from 6,798 in 2017 to 59,053 in 2022. Similarly, in Canada, Immigration, Refugees and Citizenship Canada reported an increase in the number of study permits issued, from 12,565 in 2017 to 37,314 in 2022.

 

 

As a sociocultural anthropologist, I have been researching migration and money flows between west Africa and China since 2008. Global south destinations like China were becoming increasingly popular prior to the COVID-19 pandemic. I was interested in understanding what propelled Nigerian youth to a variety of new locations.

 

While gaining prestigious degrees, international work experience and a pathway to citizenship are cited as reasons to migrate, my recent research explores how a new term, japa, has emerged to capture an additional layer of contemporary migration.

 

Japa stitches together the Yoruba expression já pa, meaning "to run" or "to flee". But it's more than another word for migration. The expression captures the sentiment of desperation and danger. According to Michael, 27, a journalist from Lagos who took part in my study, "japa doesn't mean to migrate; it means to run for your life."

 

 

Read more: Why #EndSARS protests are different, and what lessons they hold for Nigeria

 

For this research, I conducted in-person and online interviews with 21 Nigerians aged 20-35 in Nigeria and the diaspora in 2022 and 2023. I also analysed 20 interviews on migration, money, and relationships published in the "Abroad Life" and "Sunken Ships" sections of Zikoko! from 2020 to 2023. Zikoko! is an online media platform catering to Nigerian youth.

 

An additional motivation to leave

 

When people think of "survival migration", the image that comes to mind includes perilous journeys to escape poverty or war. When middle-class Nigerian youth draw on the same term, they highlight another reason: existential worry about the nation's future.

 

 

Another study participant, David, 32, an engineer in the UK, reinforced that youth "are migrating out of survival and necessity rather than choice" and that "there is a massive, massive difference".

 

To speak of japa is to identify Nigeria's social, economic and political circumstances as the drivers for migration, but with the added twist of a refusal to endure these conditions.

 

Chinaka, 20, an economics student in Lagos, declared: "This country is not moving anywhere again; for me, that's why I want to japa. Nigeria has tired me."

 

Specifically, youth in the study said they were tired of interruptions to their tertiary education in public institutions, and unnerved by the unprecedented currency depreciation of the naira. From January 2022 to March 2024, the naira has declined by 74% against the US dollar.

 

Rather than expending additional effort to survive in Nigeria, they announce:

 

I'm not doing this anymore. (Aisha, 23, a student in Ibadan)

 

African survival migration tends to be associated with impoverished migrants, immediate and choiceless departures, and irregular journeys. Japa complicates this image. It invites us to see that survival migration can be organised through urgent but organised departures that require years of planning, saving and managing unpredictable events. Contingencies can include sudden changes in visa policies, such as the UK government's decision in May 2023 to exclude dependants from accompanying certain international students.

 

Japa also encourages a revised understanding of destination "choice" in migration. While Canada, the US and the UK remain top of mind, the middle class captures a range of people with varying financial situations, travel timelines and appetites for adventure. Under the impetus "to flee", youths are open to additional destinations, including Germany, China and Northern Cyprus.

 

Effects of japa

 

Besides state-level concerns with "brain drain", some of the more pressing consequences of japa include secrecy, solitude and the reorganisation of social relations.

 

Much discussed by youths online and in the interviews is the secrecy surrounding japa plans for security or personal reasons. Tired of losing friends or feeling betrayed by friends concealing their plans, the youths who remain in Nigeria might withdraw from friendships or be unwilling to make new ones. This stance of solitude is accompanied by a contradiction: a sadness about being left behind and pressure to leave, even for those who feel content to stay.

 

Lawrence, 26, a freelance writer, was comfortable living in Nigeria, but faced growing scrutiny over his decision. Family, friends and strangers swarmed him with incessant prodding: "When are you leaving?" followed by "Why aren't you leaving?"

 

The desire to leave reconfigures youth towards the near future at the expense of their immediate social relations.

 

The state of japa

 

The reaction from the government and current president Bola Tinubu is one of concern and alarm about the loss of educated and talented youth. The issue, however, runs deeper. Nigerian leaders should not underestimate the profound emotional and symbolic aspects of "survival migration".

 

Youth no longer see themselves in the country. The double meaning here is intentional. The desire to leave is intensified by the feeling that the values and ethos they embody and uphold are not adequately represented by the nation and its leadership.

 

Japa should be understood as a middle-class sensibility that conjoins a critique of state viability and a mode of self-care. Their existential reasons for migrating must be addressed.

 

Jing Jing Liu, Assistant Professor of Anthropology, MacEwan University

 

 

 

 

Sudan Gold Revenues 'Unaffected By War'

Port Sudan / Amsterdam — Although the war between the Sudanese army and Rapid Support Forces (RSF) has continued since mid-April of last year, gold exports have allegedly not stopped or been affected by the war. In interviews with Radio Dabanga, one economic analyst called for further regulation of gold exports, while another was sceptical about the reports given the current situation in Sudan.

 

At the end of last week, the Sudanese Mineral Resources Company announced a gold export report in the first quarter of this year which generated revenue exceeding $428 million for the Central Bank of Sudan (CBoS).

 

 

These revenues did not reduce the rise in the price of the US dollar against the Sudanese pound, which continues to decline without any state control, and have a negative impact on livelihoods.

 

According to expert and economic analyst Mohamed El Nayer, this is a good thing. "If Sudan continues to export gold at the same rate, CBoS could make over $2 billion by the end of the year," which will have a positive impact on the exchange rate.

 

In 2022, gold exports exceeding $2 billion per year made up over 50 per cent of all exports from Sudan. According to the World Gold Council, that year Sudan was the world's 16th-largest gold producer and the fourth-largest gold producer in Africa.

 

The economic expert pointed out that rationalising imports could also reduce Sudan's trade deficit. He suggested stopping the import of non-essential goods, "given that the situation does not require importing all goods."

 

 

State of oil

 

El Nayer said that gold revenues do not completely replace oil, but they replace a very large part. "The difference is that oil is owned by the state, and most of the companies that are operating oil fields have contracts with the state. Also, the return from oil, whether in foreign cash or budget revenues, is higher than gold."

 

As gold production appeared shortly before the secession of South Sudan, it covered a large part of loss in oil revenues after the country seceded from Sudan. "I believe that it created a kind of balance, but it cannot completely cover what oil was covering, given that oil was being explored through companies with specific contracts and the production was divided between the state and companies."

 

El Nayer went on to talk about the production process. "As 80 per cent of the gold is produced by traditional and domestic mining individuals, the state only benefits from export revenues." He suggested that controls must be implemented on smuggling, "not only with security measures to protect the borders, an important and urgent issue but with encouraging policies."

 

 

In August 2021, Minister of Finance and Economic Planning Jibril Ibrahim issued a decision to form a steering committee to establish a gold and minerals bourse, chaired by First Undersecretary of the Ministry of Finance. In March that year, the government established state control over gold exports.

 

El Nayer said that if smuggling is reduced and gold production is controlled, the organised sector would grow and there would be a significant increase in export revenues relative to gold.

 

Scepticism

 

Journalist and economic observer Hasan Mansour questioned the reports and told Radio Dabanga that talking about gold exports, national exports, and their impact on the exchange rate, is pointless while Sudan is experiencing war.

 

He said that current reporting lacks accuracy. "Official export statistics are carried out by the Ministry of Foreign Trade and CBoS, and both institutions are not currently working in the de facto government.

 

"If we assume for the sake of argument that these numbers are correct, then what is currently being exported is nothing more than smuggled national goods. The proceeds will be missing and not included in the state budget."

 

Regarding the impact of exports on the national currency in the decline in the exchange rate, he says that it is an issue of directing resources towards war. "The state is directing all resources to war and buying weapons. Therefore, the demand for foreign exchange remains high or inflexible, and the dollar will continue to rise at a constant rate until the war ends."

 

It will suffer, and "only then will it go through a stage of relative stability for a short period of time until the country returns to its economic activities and thus there will be an abundance of foreign exchange coming to the country and thus its value will decrease against the Sudanese Pound."

 

Gold diggers

 

A recent UN Expert Panel on Sudan analysis found that "the United Arab Emirates (UAE) aids the RSF receiving gold that sanctioned firms illicitly smuggle out of Sudan, often in partnership with Wagner-affiliated companies, and laundering it, injecting it into the international gold market," according to an article by John Prendergast published on February 27.

 

The report confirmed the existence of complex financial networks established by the RSF before and during the war, which enables them to obtain weapons, pay salaries, finance media campaigns, lobby, and buy the support of political groups and other armed forces.

 

Before the war, Sudan was witnessing a significant wave of anti-mining protests. The various protests rallied against gold mining companies, especially against the environmental and health risks posed by the use of highly toxic chemicals such as cyanide and mercury. They took place in Red Sea state, Northern State, Kordofan and Darfur.

 

A 2022 report on mercury poisoning in Sudan pointed out that "years of indiscriminate use of dangerous chemicals such as mercury, cyanide, and thiourea without protective measures for miners or local populations, has exposed millions of people across Sudan to lethal risks".

 

Since the war started, Sudanese have had to focus on other urgent problems and environmental activists allege that gold mining companies are exploiting the conflict to expand their operations.

 

- Dabanga.

 

 

 

 

Ethiopia: News - Cetu Appeals for Peace, Economic Relief Amidst Conflict and Rising Costs of Living

Addis Abeba — The Confederation of Ethiopian Trade Unions (CETU) has called upon the government to address persisting conflicts through peaceful negotiations and offer economic assistance to workers facing the challenges of escalating living expenses.

 

In a statement issued today, ahead of the forthcoming observance of Workers' Day on 01 May, 2024, CETU emphasized the significant impact that conflicts have inflicted upon the nation's labor force.

 

The union asserted that "a considerable number of workers have tragically lost their lives, been forcibly removed from their workplaces, displaced from their residential and occupational areas, and witnessed widespread destruction of businesses, resulting in unemployment for many individuals."

 

 

The statement notably emphasized the situation in the Tigray region, underscoring that workers in the area "have endured significant life, physical, economic, and social hardships" resulting from the two-year war between Tigray and the federal government.

 

Although recent peace negotiations have provided some relief, CETU emphasized the importance of resolving lingering issues to forestall a resurgence of "devastating destruction."

 

Addressing the conflicts in the Oromia and Amhara regions, the statement emphasized, "Given that warfare does not offer a sustainable resolution, we urge all parties to seek peaceful negotiations to resolve the conflict."

 

A significant issue raised by the unions pertained to the exorbitant cost of living, with CETU highlighting that in certain areas, workers are unable to "afford even one meal per day."

 

 

To address this economic burden, CETU called upon the government to decrease employment taxes deducted from salaries.

 

"We respectfully request the government to consider our plea for a reduction in income tax deducted from salaries," the statement urged.

 

Another crucial call highlighted by CETU was the establishment of a wage board to ascertain a minimum wage floor, as stipulated by labor laws.

 

"The legislation regarding the formation of a wage board has not been ratified by the Council of Ministers; hence, it has not been implemented in practice," the CETU emphasized.

 

The union detailed recent engagements with government officials, including Prime Minister Abiy Ahmed. It acknowledged some advancements, such as the intention to activate the Employer and Employee Affairs Advisory Board and assurances to safeguard workers' rights by adhering to the international labor conventions ratified by Ethiopia.

 

Nevertheless, CETU emphasized the necessity for immediate action concerning issues such as cost-of-living adjustments, minimum wage regulations, and the resolution of conflicts through negotiation rather than resorting to violence.

 

- Addis Standard.

 

 

 

 

Kenya: Mai Mahiu-Narok Road Closed After Severe Crack Occurs

Nairobi — The Mai Mahiu - Narok road has been closed temporarily after a severe crack caused by flash floods occured.

 

Following this, the Kenya National Highways Authority (KeNHA) is urging motorists to explore alternative routes as it was unsafe for motorists.

 

"The cause of the crack has not been established, though preliminary report attributes it to the ongoing rains. Further, the area has in the past been affected by similar earth movements," KeNHA stated.

 

The authority stated that efforts are being made to repair the damaged portion of the road.

 

The road users were advised to use Narok-Kisiriri-Mau Summit -Njoro turn off(B18) Road to join Nakuru alternative routes and other destinations or Narok-Bomet-Kaplong(B6) Road and connect to Kaplong-Kericho(B7) Road as the alternative routes.

 

"Heavy rains in the catchment areas of Kinale and Kijabe have led water courses to experience an upsurge which has led to the washing away of debris and several houses," KeNHA mentioned earlier.

 

- Capital FM.

 

 

 

 

Namibia: Electricity's Inevitable Price Shocker

Tough times are predicted for electricity consumers as Namibians need to prepare to face an expected double-digit electricity hike.

 

This will leave consumers no choice but to fork out more of their hard-earned dollars just to keep the lights on, as demand begins its annual uptick towards the chilly winter months.

 

"We anticipate a double-digit increase next year in electricity tariffs for the coming years, driven by Namibia Power Corporation (NamPower) under-recoveries that have built up over the previous periods," said Robert Kahimise, chief executive officer of the Electricity Control Board (ECB).

 

 

He was speaking last week during a media briefing in response to NamPower's bulk tariff application for the 1 July 2024 to end June 2025 financial period.

 

Kahimise stated that the ECB resolved to adjust the NamPower bulk tariff to 8%.

 

This adjustment changes the average tariff from the current approved rate of N$1.9856 to N$2.1444 per kilowatt hour (kWh) for 2024/2025.

 

For 2025/26, the ECB expects an average bulk tariff of N$2.4512, for 2026/27 to increase to N$2.6733, 2027/28 to N$2.7747 and for 2028/29 to N$2.9066.

 

Pinehas Mutota, ECB's executive of economic and markets regulation, noted that it is expected that the tariff adjustment will put further pressure on future inflation, and therefore on prices of goods and services.

 

This is because the electricity cost is part of the inflation calculation.

 

 

What is more is that the latest tariff increase of 8% is above the current inflation rate of 4.5% (as at March 2024).

 

This increase will add significant pressure to already-depressed pockets for consumers who have endured sharp increases in fuel and food prices in recent weeks and months.

 

These increases have been exacerbated by the long-lasting effects of Covid-19, and persistent supply-line constraints.

 

The power tariff increases mean regional electricity distributors (REDs), local authorities and large power users like mines, which buy electricity directly from NamPower, will pay more for electricity.

 

These increases will inevitably be passed on to local consumers.

 

The ECB in 2022 announced an increase in bulk electricity tariffs of 7.30% from N$1.6982 to N$1.8222 per kilowatt hour (kWh) for the 2022/23 period.

 

 

The approved increase followed a tariff decrease in 2019/20.

 

No tariff increases were effected for 2020/21, with an increase of 2.29% in 2021/22.

 

NamPower initially submitted a tariff application for an effective bulk tariff increase of 14.59% for both generation and transmission tariff before the ECB toned it down to the 8% increase.

 

The primary factor driving this tariff is the rise in the cost of electricity generation, particularly the expense associated with imported electricity.

 

Namibia currently imports over 60%, which remains an ongoing concern.

 

Generation capacity

 

At the same event, ECB's executive for technical regulation Petrus Johannes said it is projected that 45% of the national demand will be supplied by local generation for the 2024/2025 period, with the remaining 55% to be met with regional imports.

 

"The Ruacana Hydro-Power Plant stands as the primary source of our local generation. However, its performance is dependent on water flow of the Kunene River. Currently, it is reported that the water flow at Ruacana is promising - and for the period 2023/2024, it is anticipated that Ruacana will generate as expected. It is our belief that the situation will continue in the medium to long-term," he stated.

 

Moreover, Mutota noted there are four operational domestic solar PV plants with a combined installed capacity of 40MW established under the modified single buyer market model.

 

It is anticipated that another 50MW will be commissioned during 2024/2025, meaning more electricity will be generated locally.

 

This will marginally reduce Namibia's need to import electricity.

 

"It is anticipated that there will be more independent power producers operating on bilateral agreements with contestable customers, including export into the Southern Africa Power Pool," he added.

 

Local energy economist David Jarrett said government should start thinking of new ways to reduce electricity tariffs in future.

 

He stressed that electricity increases are substantial and significant to consumers, as they are already facing many recent price hikes.

 

Furthermore, a joint report between committees of natural resources and economics, as well as public administration, recently tabled in the National Assembly stated that there is a need to maximise and optimise the Ruacana power plant to reduce electricity tariffs.

 

"Instead of exporting uranium, there is a need for a storage facility to pile it up until such a time that it can be used within the country. We should consider establishing a nuclear power plant to produce electricity. There have been offers from other countries to help Namibia establish nuclear plants," the parliamentary report recommends.

 

It adds that the mines ministry and NamPower should prioritise completing crucial energy projects, such as Kudu Gas to Power, to ensure Namibia's self-reliance, as well as to mitigate power shortages.

 

It has also been proposed that Namibia should invest in power storage facilities, and manufacture storage batteries for solar energy. -mndjavera at nepc.com.na

 

- New Era.

 

 

 

 

Namibia: Redforce Lodges Urgent Application

Walvis Bay — RedForce debt management company has lodged an urgent application in the High Court of Namibia, after the five-year debt-collecting contract they signed with the Walvis Bay municipality was cancelled on Thursday by the council.

 

The Walvis Bay council is the first respondent, while the acting chief executive officer is the second respondent. Councillor Ephraim Shozi is named as the third respondent.

 

Shozi tabled the relevant motion in council, and it was passed unopposed.

 

RedForce, in the urgent application, is now seeking relief from the court by requesting it to overlook any procedural non-compliance, and hear the case urgently.

 

 

They seek to prevent the termination of their services, pending the resolution of the legal actions challenging the termination decision, and to restrain the respondents from taking any further action until the legal proceedings are concluded.

 

The affidavit by major RedForce shareholder Selma Nangombe stated that the company would suffer substantial financial losses as they had set up an office in Walvis Bay, went into a lease agreement for the duration of the contract, as well as acquired assets needed for the debt-collection.

 

"In fact, the day after the illegal termination of the agreement, RedForce's operations in Walvis Bay ground to an immediate halt.

 

No calls or emails were received, debtors simply say RedForce has been fired, and they refuse to cooperate with RedForce or acknowledge any validity for RedForce to continue its debt-collection services in light of the illegal termination of the agreement," Nangombe added.

 

 

She said RedForce employees stationed in Walvis Bay have been sent home pending the outcome of this application, with only one employee, acting branch manager Rachida Koch manning the office, and who can confirm the halting of the operations there. What RedForce seeks to forestall is only the unlawful motion, and resolution and implementation of the termination of a valid and binding agreement between the parties as set out above.

 

"The first and second respondents are simply not permitted to terminate the agreement as they purported to do, and the interim relief will most certainly not be an infringement of any of its rights. In fact, the interim relief will benefit the first respondent because it will continue to receive much-needed debt-collection services on the conditions as agreed between the parties," she noted.

 

 

The affidavit continued that at the date of termination, RedForce was actively engaged with 9 145 accounts with a combined book value of N$315 million, and was collecting an average of N$480 000 per day and N$14 million a month from the outstanding debt. The total debt outstanding from time to time increases as time passes, and more bad debts arise which are handed over to RedForce.

 

"The termination has devastating effects not only for RedForce, but also for the first respondent. Prior to RedForce's appointment, the first respondent was operating on a cash flow deficit of N$4.6 million. At the time of termination, the first respondent was operating at a surplus of N$45 million. In short, this application is not only brought for the survival of the applicant, but also to save the first respondent from itself," Nangombe noted in her affidavit.

 

"RedForce has been unable to render any services, and its staff are waiting at home to return to the office to continue with operations. I submit that the first respondent acted on the basis of an error of fact and law when it resolved to terminate the applicant's services," Redforce stated.

 

Councillors' outstanding debt

 

The affidavit also revealed that councillors Leroy Victor, Ryan Gordan, Paulus Kauhondamua also have outstanding bills and none of them disclosed this prior to the passing of the motion and subsequent resolution.

 

"I point out again that the motion, resolution and subsequent termination are unlawful. The standing rules were not complied with, no due process was followed, and the first respondent acted in clear violation and material breach of its contractual obligations. The decision is politically-motivated. RedForce does not accept the breach or the repudiation, and insists that the agreement remains of full force and effect", Nangombe continued.

 

Invested over N$7 million

 

According to her, RedForce has invested more than N$7 million into its Walvis Bay operations, in line with the agreement between the parties, and in view of the five-year tenure afforded thereby.

 

She further stated that the municipality only employs two people for the disconnection of services, and a near-defunct debt management department while they - RedForce - already invested in IT accessories and in particular purchased 16 computers and three laptops for the sum of over N$314 000. They also purchased office furniture worth over N$270 000.

 

They likewise purchased two vehicles for N$575 000, and employed 28 people for the disconnection of services and pay rental fees of N$22 000 monthly.

 

- New Era.

 

 

 

HSBC chief executive unexpectedly steps down

HSBC's group chief executive Noel Quinn is unexpectedly retiring after nearly five years in the role.

 

Europe's largest bank says it is in the process of finding a successor for 62-year-old Mr Quinn, who will stay in the role until a new chief executive is named. HSBC is considering candidates from both inside and outside the firm.

 

It comes as the UK-based lender reported a 1.8% drop in profit for the first three months of 2024, compared to the same time last year.

 

The company said that its pre-tax profit for the period came in at $12.7bn (£10bn), which was a little better than expected by market analysts.

 

"After an intense five years, it is now the right time for me to get a better balance between my personal and business life,” Mr Quinn said.

 

Mr Quinn, who has worked at HSBC for 37 years, was first appointed as its chief executive on an interim basis in 2019, after his predecessor John Flint was ousted from the role.

 

In March 2020, he took the reins of HSBC on a permanent basis.

 

"[Mr Quinn] has driven both our transformation strategy and created a simpler, more focused business that delivers higher returns," HSBC's chairman Mark Tucker said.

 

Along with its quarterly results, the bank announced an interim payout to investors of $0.10 per share and said it would buy back up to $3bn of its shares.

 

HSBC recently completed the sale of its operations in Canada and announced plans to do the same with its business in Argentina.

 

The sales are part of efforts by the London-based bank to focus more on faster-growing markets in Asia.

 

Shanti Kelemen, chief investment office at M&G Wealth, told the BBC's Today programme that it "has probably been a very intense five years" and that Mr Quinn "has had a very long career".

 

She said that Mr Quinn had changed the shape of the bank during his time at the top, by such actions as selling HSBC's Argentina business, leaving Canada, and stepping up Asia operations.

 

"What he's done will probably reverberate and determine the path of their success for certainly several years to come," she added.-BBC

 

 

 

Tesla China rival BYD sees profits and sales fall

Chinese car giant BYD has seen profits fall as it is hit by slowing demand for electric vehicles (EV) and a price war in the world's largest car market.

 

The firm said it made $630m (£502m) in the first three months of the year, more than 47% lower than the previous quarter.

 

BYD has been competing with Elon Musk's Tesla to be the world's biggest seller of EVs. The US giant reclaimed the title earlier this month after losing out to its Chinese rival at the end of last year.

 

BYD says it sold just over 300,000 battery-only cars in the first three months of the year, down from a record 526,000 in the final quarter of 2023.

 

The Shenzhen-based firm's latest financial results suggest it may be performing better than Tesla, which posted its first quarterly revenue fall since the pandemic disrupted its production and sales in 2020.

 

BYD and its rivals have been involved in a price war in China, as they compete for market share at a time of slower economic growth.

 

The company, which is backed by veteran US investor Warren Buffett’s Berkshire Hathaway, has cut prices on some of its latest models as it tries to attract buyers who have been more cautious when it comes to big ticket items such as cars.

 

To cushion the blow of softer demand in China, BYD has also been looking to expand into new markets.

 

The EV maker exported 240,000 cars in 2023 and is looking to grow that number significantly this year.

 

Its aggressive push into overseas markets has sparked a backlash in the US and Europe, where governments are looking to protect their domestic car makers.

 

Along with its efforts to increase exports, BYD has also been diversifying its product range by offering higher-end models.

 

At the Beijing auto show, which opened to the general public this week, BYD has been displaying its latest luxury vehicles.-BBC

 

 

 

 

Vinted makes first profit on used fashion

Vinted has made a profit for the first time as the fashion for second-hand clothes remains on trend.

 

It was a firm "at the forefront of a market with huge potential", its chief executive said.

 

Digital platforms allowing customers to sell their "pre-loved" items direct to other people have taken off in recent years.

 

But Vinted, which has expanded rapidly across Europe, is the first out of the red, turning a €20.4m (£17.4m) loss in 2022 into a €17.8m profit.

 

Thomas Plantenga, Vinted's chief executive, said second-hand fashion remained a "tiny" proportion of the market but that the firm was in a strong position.

 

As well as expanding into new markets, including Denmark, Finland and Romania, Vinted had also accelerated the development of its delivery service Vinted Go, he said.

 

“We see many opportunities ahead, so we’ll continue to balance profitability against investment opportunities to accelerate towards our mission,” Mr Plantenga said.

 

He added that enabling customers to sell to each other would help "mitigate the harm of the fashion industry".

 

Vinted said revenues had jumped 61% to €596.3m (£509m) in 2023 compared with the previous year.

 

The marketplace acquired a second-hand designer clothes specialist platform, Rebelle in 2022 and has launched a service which verifies the authenticity of valuable items.

 

Vinted and a similar UK-based platform Depop have both caught on with British shoppers in recent years, eating into eBay's original dominance of the second-hand clothing market, and appealing particularly to younger shoppers.

 

The cost-of-living crisis, combined with increased awareness of fashion's environmental impact, have helped bolster the trend.

 

Social media influencers and celebrities have also helped to overhaul associations with musty, out-of-fashion, charity shop stock.

 

A recent report from US-based second-hand retailer ThredUp suggests that the market for used fashion is now worth tens of billions of dollars a year in Asia, North America and Europe.

 

However the size of the new clothes market, and the trend towards lower quality "fast fashion" products, mean it is hard for second-hand platforms to make a profit.

 

"In recent years, the likes of Vinted and Depop have ploughed millions into growing their headcount and expanding their audience, as they looked to capitalise on the second-hand trend," said retail analyst Natalie Berg.

 

"It’s a gamble that seems to have paid off for Vinted. With low prices and no seller fees, its model needs scale which, in turn, will open up alternative revenue streams like advertising."

 

Vinted, a privately owned firm, said it had expanded its staff by a third. It now has 2,000 employees, most of them in Lithuania.-BBC

 

 

 

 

Migrants hit by high fees to send money home

Jerry Lukendo Mbokani has to make several calculations when he sends money to his elderly mother in the Democratic Republic of Congo.

 

In Kampala, Uganda, where Mr Mbokani has lived for 16 years, he first has to buy US dollars. To convert approximately $100 (£80) worth of Ugandan shillings would cost almost $3, he reports.

 

He also adds the withdrawal fee of $7, so that his mother doesn't incur a fee when receiving the money.

 

He sends these remittances through mobile money, usually phone-based digital transfers, rather than through a physical location like a bank, post office, or Western Union-style money transfer company. In real terms 10% of the amount could be eaten up in fees.

 

Mr Mbokani, the chief executive of the Refugee-Led Organization Network (Relon), knows he's far from alone.

 

One target of the UN Sustainable Development Goals is that by 2030, remittance fees should be less than 3%, and total fees to send and receive money between a pair of countries should be no more than 5%. Some researchers believe that to be truly affordable, the first goal should be even less than 3%.

 

The International Monetary Fund has estimated that reaching this target could generate $32bn (£26bn), even apart from the direct-cost savings.

 

This is because remittances have such powerful knock-on effects for the economy, and people tend to send more in remittances when fees are lower.

 

Yet the world is far off this target. According to the World Bank, the global average is 6.2%, over double the target.

 

Getty Images A customer makes a money transfer at an Orange Money shop in downtown Bangui on january 18, 2023.Getty Images

Sending money to Africa can be expensive

It's especially pricey to send money to sub-Saharan Africa, where the average transaction fee is 7.4%. For particular combinations of countries, fee percentages can climb well into the double digits.

 

One reason for high fees is inconsistent regulation.

 

Within Africa a payment company can't use a single licence across multiple countries, says Nika Naghavi. She is the group head of growth at Onafriq, a digital payment network that extends through more than 40 African countries.

 

A result is that even between neighbouring countries with a robust trade and frequent population movement, money can't always flow freely. For instance, Ms Naghavi says, transfers between Togo and Benin are frequent and straightforward, helped by having a common currency.

 

Yet money can't easily be sent between Togo and another neighbour country, Ghana.

 

"That's why the costs become heavy: a lot of it is in compliance and regulation," says Ms Naghavi.-BBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

Workers day

 

1 May

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and d from third parties.

 


 

 


 (c) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:  <mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993 5557 | +263 71 944 1674

 


 

 

 

 

 

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