Major International Business Headlines Brief::: 16 January 2024
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Major International Business Headlines Brief::: 16 January 2024
ü Ghana: 2nd Tranche $3bn IMF Support - Govt Reaches Agreement With
Official Creditors ...As IMF Welcomes News
ü Nigeria: Economy - Nigerians Patronise Locally-Made Clothes to Cut Cost
ü Ghana: 'We've Initiated Policies to Reduce Cost of Doing Business,
Promote Investor Confidence'
ü Nigeria: Govt to Establish More Industrial Clusters in 36 States
ü Nigeria: Airlines' Trapped Funds - Pressure Mounts Despite U.S.$61
Million Release
ü Nigeria: Telecom Subscribers Hit 221.7 Million in Q3 - NBS
ü Nigeria: Manufacturing Sector Threatened As CRR Rises 45.5% to N13.81
Trillion
ü Nigeria: How We Delivered Govt's Privatisation Agenda for 7 Years -
Ex-BPE Boss
ü Nigeria: Dangote, Bua, Banks and Economic Chaos
ü Ghana Gets Debt-Relief Terms
ü Tanzania: Greenfield Starts Mining Exploration in Central Corridor
ü Tanzania: Food Vendors in Dodoma Go for Clean Energy
<https://www.cloverleaf.co.zw/>
Ghana: 2nd Tranche $3bn IMF Support - Govt Reaches Agreement With Official
Creditors ...As IMF Welcomes News
The government has announced that it has reached an agreement with its
Official Creditors under the G20 Common Framework on a comprehensive Debt
Treatment under Ghana's Extended Credit Facility programme with the
International Monetary Fund (IMF).
The agreement with the Official Creditors paves way for the IMF Executive
Board to approve the first review of the Fund-supported programme to allow
for the second tranche of IMF financing of US$600 million to be disbursed
under the three-year $3 billion deal.
A statement issued by the Ministry of Finance on Friday and copied to the
Ghanaian Times said, "The development constitutes a significant positive
step towards restoring Ghana's long-term debt sustainability."
"The Government of Ghana commends the support and cooperation of its
Official Creditors in reaching this agreement, which demonstrates a mutual
commitment to restoring debt sustainability in line with the IMF programme
targets," it said.
The Finance Ministry said the government was confident that "this debt
treatment, which entails significant flow relief during the programme
period, will allow for the allocation of additional financial resources
towards critical public investments, particularly in healthcare, education,
and infrastructure development".
The Finance Ministry said the terms of the agreed debt treatment were
expected to be formalised in a Memorandum of Understanding between Ghana and
Official Creditors, which would then be implemented through bilateral
agreements with each member of the Official Creditor Committee.
"The Government of Ghana looks forward to further engaging with the Official
Creditors to ensure prompt implementation of the agreed terms. The IMF Board
Approval should also trigger World Bank Board consideration of US$300
million Development Policy Operation (DPO) financing," the statement said.
According to the Ministry of Finance, the World Bank was expected to support
the Ghana Financial Stability Fund with $250 million to help address the
impact of the Domestic Debt Exchange Programme on the financial sector.
"These disbursements are key for Ghana's economic recovery and ambitious
reform agenda. Today's agreement with Official Creditors will support
ongoing engagements with Ghana's commercial creditors, including
bondholders," the statement said.
It said the government of Ghana remained committed to reaching an agreement
with its commercial creditors as soon as possible and takes this opportunity
to thank all stakeholders, and said, "The Ministry of Finance hereby
reiterates its commitment to restoring Ghana's long-term debt sustainability
and strengthening macroeconomic stability."
Ghana in July 2022 sought a $3billion three-year deal ECF with the IMF to
ensure debt sustainability and to help restore macroeconomic stability.
Consequently, the country in May 2023 received the first tranche of $600
million from the IMF under the ECF following the successful completion of
the Domestic Debt Exchange Programme.
Meanwhile, the International Monetary Fund in a statement issued by Ms
Kristalina Georgieva, Managing Director of IMF, after the announcement by
Ghana's Finance Ministry, said, "I welcome Minister of Finance Ofori-Atta's
announcement that the Ghanaian authorities have reached an agreement in
principle with their official creditors on a debt treatment, consistent with
the objectives of the IMF-supported programme, which aims to restore
macroeconomic stability and debt sustainability, build resilience, and lay
the foundations for stronger and more inclusive growth."
"I want to thank the Official Creditor Committee, especially the co-chairs,
China and France, for all their work to reach this agreement. This is
another substantial milestone for the G20 Common Framework under which G20
creditors joined forces to agree on debt relief for Ghana.This agreement
clears the path for IMF Executive Board consideration of the first review of
Ghana's three-year Extended Credit Facility Arrangement in the next few
days. I look forward to continuing our fruitful collaboration with Ghana,"
said IMF.
-Ghanaian Times.
Nigeria: Economy - Nigerians Patronise Locally-Made Clothes to Cut Cost
Nigerians no longer care about what people say or do as far as whatever
strategy they adopt can solve major and minor problems thereby reducing
costs.
Before foreign clothes, shoes and bags were part of the things Nigerians
used to showcase their level of wealth but today the reverse is the case.
No average Nigerian is concerned about the display of wealth today as they
now go for locally made clothes as far as they look elegant and presentable
in whatever they wear.
Economy & Lifestyle discovered that they either buy the already made clothes
from the local manufacturers or retailers or make one using beautifully
designed materials.
Miss Linda Osareme, a banker said: "It is alarming the way the prices of
things are increasing.
"No reasonable average Nigerian will think of buying one cloth for N100,000
not to talk of N50,000 when heavy bills are awaiting him or her.
"Before I used to buy turkey gowns, skirts and blouses at N20,000. Now, a
gown costs N100,000. And the economy is not smiling at all.
"I had to resort to buying Nigerian-made clothes. They are cheap and of good
quality. It was then I even realised I was wasting money buying those
foreign clothes."
Mr. Fidelis Mbisike, a businessman, said: "I wear Nigerian-made clothes.
They are cheap and affordable.
"If I don't tell you you will never know. All these chiffon shirts are
locally made. Even some of these jean trousers and plain material pants are
made here.
"I have bills to pay and buying expensive clothes will do me no good. Nobody
will see something unique and not go for it but with the current state of
the economy, you have to spend wisely."
On her part, Mrs. Abidemi Benson, a civil servant, said she makes her gowns
through her seamstress.
"Who has the money to buy foreign clothes in this present economy? Even the
fairly used clothes are now very expensive and also fade quickly.
"What I do now is buy materials like crepe chiffon, and silk of different
colours and give it to my seamstress at Tejuosho market to make whatever
style I want.
"For gowns, I pay N2,500 and skirts N2,000. For blouses or tops, I pay
N1,000 to N1,500 depending on the style. With N5,000 to N6,000 I have an
already made gown.
"If I don't have the time to wait, I buy locally made clothes at an
affordable price. Nobody cares about what you wear now but how you look.
Everybody is only concerned about the stomach."
This development has put smiles on the cheeks of local manufacturers of
these clothes who are mainly fashion designers who use materials like crepe,
plain and vintage chiffon material, nets of various qualities and colours
among others to make dresses various designs.
Styles, like up-and-down shirts, gowns, crop tops, shorts, and trousers of
various sizes and designs are now seen to have flooded the clothing market.
Retailers are seen in areas like the Tejuosho market, Idumota, and Oshodi
among other big markets buying these clothes and selling them in stores and
online.
A visit to Tejuosho Modern Plaza where various designs, brands and quality
materials are sold revealed that among other materials, a yard of crepe
material is sold for between N800 and N1,500 per yard, while vintage chiffon
is sold for N700 to N1,200 per yard.
Net materials range from N500 to N3,000 per yard. It all depends on their
quality.
Further investigation revealed that you can spend just N5,000 to get your
material and make a gown.
Also, a ready-made up-and-down Nigerian wear goes for N3,000 to N5,000
whereas foreign brands are sold for N50,000 and above.
According to Mr. Uzo Lazarus, a wholesaler of female clothes: "People who
sell clothes in retail patronise us from very early in the morning till 4
p.m.
"Before, the patronage was very low. But since last August, we have recorded
increased patronage."
Mrs. Ireti Ifayemi, a unisex cloth seller said: "The economy is not smiling
at all. Before I was selling cothes from Turkey and other foreign countries
like Vietnam and the United Kingdom.
"I had to reduce the quantity I bought because people were no longer going
for them due to their high prices.
"That was when I started buying Nigerian-made clothes. I do go to Aba or
Onitsha to get them and also get them from Oshodi.
"I discovered that people now prefer buying them due to their affordability.
I sell more Nigerian clothes than the foreign ones."
-Vanguard.
Ghana: 'We've Initiated Policies to Reduce Cost of Doing Business, Promote
Investor Confidence'
The President, Nana Addo Dankwa Akufo-Addo says government has initiated a
number of policies aimed at reducing the general cost of doing business to
promote investor confidence in the country.
"Our focus has therefore, been on improving infrastructure and service
delivery through road network rehabilitation and expansion, railway
rehabilitation and re-development, modernisation of our various ports and
the creation of a digital economy," he stated.
With the emergence of the new trade routes through the African Continental
Free Trade Area (AfCFTA), with the unique opportunity to enhance
inter-African trade and industrialisation, the President stated that
government was determined to invest in logistics infrastructure to support
the growing continental market.
In a speech read on his behalf at the Chartered Institute of Supply Chain
Management (CISCM's) maiden recognition and Awards Dinner Night in Accra,
over the weekend, President Akufo-Addo said it was against this backdrop
that expansion works at the Tema Port have been completed to increase its
capacity to handle the increasing volumes of traffic.
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The event held on the theme: 'Integrated Supply Chain Management: A Catalyst
for Development,' saw a total of 31 organisations, institutions and
personalities in the sector being awarded for their excellent performance
over the past year.
The President whose speech was read on his behalf by the Minister of
Transport, Kwaku Ofori Asiamah said at the Takoradi Port, the development of
phase one of the On-Dock Multi-Purpose terminal had been completed while in
the aviation sector, the Tamale airport has also been upgraded into an
international status while upgrade of the Kumasi airport was nearing
completion.
"Let me also add that, freight operations along the Volta Lake will be
enhanced with the completion of the Mpakadan railway line. As we push
forward for an Integrated Supply Chain Management System, it is important
that we build partnerships across the global supply chain to ensure remain
competitive to drive growth and development."
President Akufo-Addo reminded CISCM that the future of supply chain
management held unprecedented challenges and opportunities stressing "we
must continue to champion innovation, diversity, sustainability and ethical
practices.
By so doing, he emphasised, we can ensure that our supply chain are not only
resilient but also responsive and inclusive.
Earlier, in his welcome address, the President of CISCM, Mr Richard Okrah
said the organisation was a professional body with a 100 industry leaders,
academics, and decision makers at the highest level of government.
As a discipline, he said CISCM was a driver for ensuring the free flow of
goods and services without which national growth and international and
effective economic development will be adversely impacted.
The Dwantoahene of the Akyem Kotoku Traditional Area in the Eastern Region,
Baffuor Yaw Agyemang Gyekye I and Chairman of the Event's Planning
Committee, said the governing council of the CISCM took the decision to set
aside the second Saturday in January, every year to recognise, celebrate,
honour and reward individuals, institutions, organisations and communities
that have achieved excellence and remarkable success in various categories
of CISCM.
Tullow Ghana Limited was adjudged the Overall Best Organisation for 2023
having swept several awards in the various categories.
The other awardees were the Ghana Armed Forces (GAF) in the Planning,
Strategies and Policies category; Jospong Group of Companies for
Sustainability and McDan Group in the areas of International Trade and
projects.
The CISCM Woman of the Year went to Ms Otuko John Teye of Tullow with
Chairman, founder and Chief Executive of McDan Group, Dr Daniel McKorley
adjudged the CISCM Man of the Year.
-Ghanaian Times.
Nigeria: Govt to Establish More Industrial Clusters in 36 States
The Minister of Industry, Trade and Investment, (FMITI), Dr Doris Anite, has
said the federal government plans to establish more industrial clusters as
well as revive existing ones to drive Small and Medium-sized Enterprises
(SMEs) and industries across the country.
Anite stated this during an interaction with government officials and
members of the business community in Kano State, adding that the clusters
would provide access to subsidized inputs, power, access roads and other
infrastructures necessary to drive the industries and SMEs to greater
productivity and profitability.
According to the trade minister, President Bola Tinubu had charged the
ministry to encourage agriculture and overall development of non-oil
exports, a statement over the weekend by her media unit said.
The president's mandate, Anite said, would be actualised through the process
of industry clustering.
"For us, making these industries competitive is a major goal of this
ministry, especially now that the African Continental Free Trade Area is
developing. It is important that we help the industries and the SMEs reduce
their costs of production so that they can compete favourably in a larger
market."
-Daily Trust.
Nigeria: Airlines' Trapped Funds - Pressure Mounts Despite U.S.$61 Million
Release
Lagos There's a mounting pressure on the federal government to make
significant releases to clear the foreign airlines' trapped funds amidst
their threat to exit Nigeria.
This is despite the release of $61.4m by the Central Bank of Nigeria (CBN)
last week as part of efforts to clear outstanding liabilities and bolster
the foreign exchange market.
While there's no updated data on the foreign airlines' funds trapped in
Nigeria, our correspondent reports that the money was $793m as of December
2023.
According to data from the International Air Transport Association (IATA),
Nigeria accounted for a substantial part of airlines' trapped funds
globally.
The foreign airlines said the funds keep mounting hence the $61.4m was too
infinitesimal to cover anything.
A foreign airline representative who spoke with our correspondent in
confidence said the trapped funds hinder the operations of their airlines.
"We all know what the margin is for airlines. If your funds are trapped to
that level, how do you fund your operations? From loans or what? You can
fund from other locations for how long? If every nation holds back funds,
will there be international flights?
Foreign airlines mull cut of Nigerian operations
Amidst the raging controversy over dollar settlement, airlines are said to
be considering the option of reducing or suspending their operations
outright.
It was learnt that despite the substantial resolution of diplomatic issues
with the United Arab Emirates (UAE), the non-payment of Emirates Airlines'
trapped funds is responsible for the delay in resumption of flights to
Nigeria.
"The airline is yet to see sufficient commitment of the Nigerian government
to clear Emirates trapped funds which is the major reason for the airline's
suspension of operations in the first place," the source said.
It would be recalled that Emirates suspended all flights to Nigeria on
September 1, 2022 and despite two different visits of President Bola Tinubu
to the UAE and follow-up visits by the Minister of Aviation, Festus Keyamo,
the airline is yet to agree on resuming flights to Nigeria.
"Yes, the trapped funds issue seems deadlocked," said a source.
Similarly, other airlines are increasingly restless over their trapped
funds, threatening to call it quits in Nigeria as the funds keep increasing.
"It is not a fair competition. My airline flies to Nigeria and our revenue
is trapped. A Nigerian airline flies to our base country and they get their
monies. Where is the fair competition?," another foreign airline
representative said.
Aviation analyst, Group Capt. John Ojikutu, said aviation agencies would
lose 80 per cent of their revenues if foreign airlines should leave in
protest.
He said, "80% of our earnings in commercial aviation will be gone if the
foreign airlines carry out their threats to withdraw their operations in
Nigeria.
"Whoever knows Keyamo should tell him now. Whoever knows Tinubu should tell
him now too to tell Keyamo to find out what happened to the forex earnings
($2.5bn) that the Nigeria Aviation service providers collected from the
foreign airlines annually? This is not a joking matter like the palliatives
and the subsidies."
The General Secretary of the Aviation Roundtable and Safety Initiative
(ART), Mr Olumide Ohunayo, decried a situation where foreign airlines pay
for services in Nigeria in dollars yet they cannot get dollars to repatriate
their funds.
According to him, if the foreign airlines should leave as being threatened,
Nigerian airlines cannot fill the vacuum.
More so he advised that Nigeria should take advantage of the reciprocity in
the Bilateral Air Service Agreement (BASA) to begin to operate some of those
routes operated by foreign airlines.
He said, "The truth is that our airlines cannot fill the vacuum, that's
almost impossible, as much as I would not advocate for us to increase their
frequencies, I think it's time for us to start using those frequencies that
are ours by virtue of the reciprocity in the bilateral service agreement we
have with different counties.
-Daily Trust.
Nigeria: Telecom Subscribers Hit 221.7 Million in Q3 - NBS
The National Bureau of Statistics (NBS) has stated that 2,504 subscribers of
9mobile moved to another telecommunication service provider in the third
quarter of 2023.
The report stated that the 3,389 customers that ported out during the period
saw 9mobile being the highest followed by Airtel with 370 subscribers
leaving. MTN had 325 and Globacom 200.
On the other hand, 2,342 subscribers ported into MTN followed by Airtel,
784, Globacom 191 and 9mobile 68.
The report stated that the total number of active voice subscribers in Q3
2023 was 221,769,883 from the 212,201,578 reported in Q3 2022.
It said this showed a growth rate of 4.51 per cent.
"On a quarter-on-quarter basis, this rose by 0.76 per cent. Also, in Q3
2023, the total number of active internet subscribers stood at 160,171,125
from 152,784,980 reported in Q3 2022, showing an increase of 4.83 per cent.
On a quarter-on-quarter basis, this grew by 0.42 per cent."
For state profile analysis, it said Lagos State had the highest number of
active voice subscribers in Q3 2023 with 27,043,333, followed by Ogun with
13,136,247 and Kano with 12,192,122.
"On the other hand, Bayelsa recorded the least with 1,558,509, followed by
Gombe and Yobe with 2,643,899 and 2,760,261 respectively."
It added that Lagos had the highest number of active internet subscribers in
Q3 2023 with 19,188,745, followed by Ogun with 9,538,622 and Kano with
8,712,782.
Bayelsa recorded the least with 1,195,580, followed by Zamfara and Gombe
with 1,863,686 and 1,909,498 respectively.
The report also said that MTN had the highest share of subscriptions in Q3
2023 with 85,854,576 active voice subscribers and 68,573,680 active internet
subscribers. This is followed by Globacom with 61,451,508 voice subscribers
and 43,981,204.
Airtel has 60,272,854 voice subscribers with 43,142,286 internet
subscribers. For 9mobile, it has 13,762,115 voice subscribers and 3,907,085
internet subscribers.
-Daily Trust
Nigeria: Manufacturing Sector Threatened As CRR Rises 45.5% to N13.81
Trillion
As more multinational companies exit Nigeria over exchange rate volatility,
economists and other Investment analysts fear that more businesses may face
similar fate as the amount of banks' deposits with the Central Bank of
Nigeria (CBN) otherwise known as Cash Reserve Ratio (CRR) soared by 45.51
percent in the nine months to September 2023.
Financial analysts and economic experts have emphasized that the high CRR in
Nigeria, one of the global highest, would constrain economic growth as it
denies companies access to credit and raises the cost of credit.
Citing the impact of high cash reserve requirements debit on banks' ability
to lend to the manufacturing sector, they charged the new leadership of the
CBN to put machinery in place to stabilise the exchange rate as well as the
fiscal situation to lower the CRR and ease its debilitating impact on the
economy.
Mandatory reserve deposits represent a percentage of the customers' deposits
that are not available for use in the bank's day-to-day operations and must
be kept with the CBN. The amount, which is based on qualified assets, is
determined by the CBN from time to time and is non-interest bearing.
The apex bank has been employing cash reserve requirements as a monetary
policy tool to regulate money supply, tighten liquidity in the financial
system, and contain inflation.
Within the review period, the Monetary Policy Committee (MPC) of the CBN
raised the CRR to 32.5 percent from 27 percent, amid surging inflationary
pressures and has since retained it at the rate.
Financial Vanguard's inquest into the financial statements of 10 big banks
in the country for the nine months period showed that their cash reserves
rose to N13.81 trillion during the review period from N9.56 trillion a year
ago, representing a 45.51 percent increase.
This also represents 21.6 percent of their total customer deposit, which
stood at N64.06 trillion during the period.
The banks are Zenith Bank Plc, FBN Holdings Plc, Access Bank Plc, Guarantee
Trust Holding Company (GTCo) Plc, United Bank for Africa (UBA) Plc, Stanbic
IBTC Holdings Plc, Fidelity Bank Plc, Sterling Bank Plc, Wema Bank Plc, and
FCMB Group Plc.
Financial Vanguard's analysis showed that tier-1 banks recorded the biggest
increase in cash requirements, while more deposits of the tier-2 banks are
quarantined with the central bank.
UBA recorded the highest CRR increase of 68.9 percent to N2.064 trillion
from N1.23 trillion in 2022. This amount also represents 18.7 of its total
customer deposit (N11.63trn).
This was followed by Sterling Bank, which recorded a 62.6 percent increase
in its CRR to N431 billion from N265 billion in the corresponding period in
2022. This also represents 28.3 percent of its total customer deposit.
Others are Zenith Bank with 57.8 percent CRR increase; Fidelity Bank
(+51.8%); Stanbic IBTC Holdings Plc (+43.8%) and FCMB Group Plc (+39.5%).
The figures represent 18.9%, 22.3%, 34.3% and 24.4% of their total customer
deposit respectively.
Economists' views
Speaking on the development, Ayo Teriba, CEO, Economic Associate, said: "The
implications to the real sector of the economy are obvious; it is obvious
that the presence of CRR denies the real sector access to credit. These are
loans that should have been extended to them. "These are monies that should
have been used to create loans. So, it denies the real sector access to
credit and it increases the cost of credit because if you take so much from
the books of the banks and they go out to incur expense to mobilize
deposits, and the CBN seizes 32.5% of that deposit, it puts pressure on the
banks to try and recover the cost of mobilising the deposit that has now
been frozen at zero interest rate.
"So it's inefficient. It is unnecessary, it is killing the system."
Continuing, he said: "CRR is not a monetary policy instrument that the
monetary policy committee will be raising every now and then. It is adopted
as a prudential rule. When it is used as a prudential rule, it is called a
variable cash requirement. So, it is not mandatory for all banks. It is a
rule that says that if any individual bank fails to manage its liquidity,
and it has excess liquidity, that rule will apply to that bank for as long
as it has excess liquidity. The rules cease to apply as soon as the bank
keeps its liquidity under control."
Speaking in the same vein, David Adonri, Executive Vice Chairman, Highcap
Securities, said: "Nigerian bank's cash reserve ratio is probably the
highest in the world. It is normal to see a CRR of around 2-5% in many other
countries. Above that ratio is indicative of a troubled financial or
economic system. With the banks' cash reserve held by CBN, it amounts to
expropriation of their assets which could have been employed to yield
income.
"Cash is generally held by banks as a short-term asset to meet cash
withdrawals by demand depositors. However, the amount taken by CBN is so
excessive that if part of it is available, it will enable banks to increase
working capital finance to various economic units including manufacturing."
Uche Uwaleke, Professor of Capital Market and Finance, who also stated that
the current CRR at 32.5% is one of the highest in sub-Saharan Africa, noted
that a high CRR effectively acts as a tax on banks given that it is not
remunerated by the CBN.
"Its implication, therefore, is to constrain the ability of Deposit Money
Banks to give out credit to the real sectors. The illiquidity conditions
that it fosters help to fuel a high interest rate environment which is
inimical to credit access and real GDP growth," he added.
Way forward
Ayo Teriba stated that stable exchange rates and fiscal stability which
means that the government won't be taking money through Ways and Means are
the two preconditions required to lower the CRR. "If these hold, the
monetary policy can be eased. Right now, because of the unstable exchange
rate and fiscal instability, you cannot ease monetary policy even when we
recognise that the current configuration of the monetary policy is not
fair," Teriba said.
"We recognise that nothing much could be done except if the Ways and Means
that the new CBN leadership met is taken off the books of the CBN. As soon
as the Ways and Means are cleared, then they should turn to the CRR.
"We look forward to a date when the banks should be allowed to have access
to the deposit they have mobilised without the threat of the CBN imposing a
cash reserve ratio that applies to all banks regardless of their liquidity
situation. We have to recognize that they need to clear up the ways and
means met.
"However, there's another obstacle in their way and that is the volatile
exchange rate which is responsible for the surge in inflation. The only
solution to the inflation rate is to build up a wall of foreign reserves and
the exchange rate will stabilise behind the wall of reserves.
"You need to make the exchange rate stable and guarantee that there are
adequate reserves to perpetuate that situation and regain monetary policy
autonomy.
"You need to respect the fact that the real sector needs access to credit at
a low rate and neither the high CRR nor the high MPR will make it possible
for the real sector to access credit at all or at low interest rate," he
said.
On his own, Uche Uwaleke advised the MPC to consider reducing the CRR at its
next meeting without prejudice to the CBN's mandate of maintaining price
stability.
David Adonri of Highcap Securities noted that with the position of the new
leadership of the apex bank on the management of supply, CRR would,
hopefully, begin to decline.
He said: "Now that the new management of CBN has given indication to use
Open Market Operation (OMO) as a preferred tool for managing money supply,
there may be less reliance on use of CRR and liquidity ratio.
"If this happens, then the minimum statutory requirement for CRR will start
declining."
Vanguard News
Nigeria: How We Delivered Govt's Privatisation Agenda for 7 Years - Ex-BPE
Boss
The immediate past Director-General of the Bureau of Public Enterprises,
BPE, Mr. Alex Okoh, has given insight into how the bureau conducted the
Federal Government privatization agenda for over six years.
Recall that President Bola Tinubu on Monday, January 8, removed Okoh as
BPE's Director General.
Reacting to the development on his Facebook page, Okoh said it had been an
incredible experience working in government for the past six years and eight
months.
He said: "I'm grateful for the opportunity to serve my country in the space
of privatization and economic reforms. I thank the extremely professional
young men and women at the Bureau of Public Enterprises for their commitment
to the ideals of efficient optimisation of public assets and Government
Owned Enterprises.
"I am certain that posterity will deliver a decent verdict on the various
projects and reforms that we delivered across key sectors of the economy,
and more importantly on the high sense of integrity with which they were
delivered.
"Finally, I am grateful to God for the opportunity, and quite elated to have
served the nation without blemish."
Below are some of BEE's accomplishments under his watch:
Core investor sale of 60 percent shares of Yola Electricity Distribution
Company;Core investor sale of Afam Power Plc and Afam Three Fast Power
Limited.
Core investor sale of 20 percent shares of Geregu Power Plc, Concession of
Warri Old Terminal Port, Core investor sale of Nigeria Security Printing and
Minting Plc,
Asset sale of Mineral House and Asset sale of Makeri House.
Others include Privatization of Omotosho Power Plant (up to financial bid
opening), Privatization of Oloronsogo Power Plant (up to financial bid
opening), Privatization of Ihobvor Power Plant (up to financial bid
opening), Privatization of Calabar NIPP Power Plant (up to financial bid
opening), Privatization of Geregu NIPP Power Plant (up to financial bid
opening) and concessioning of Zungeru Hydropower Plant among others.
-Vanguard.
Nigeria: Dangote, Bua, Banks and Economic Chaos
"You burn down the house to roast the pig(s). It was the only way mankind
always roasted the pig(s)." Saul Bellow, 1915-2005.
Forgive me if you think you read the statement by Saul Bellow before. You
are perfectly correct. It appeared last week; when I was still under the
impression that the takeover of three or four banks was a decision to be
made months from now after exhaustive analysis of the report of the Special
Investigator and legal advice by the Attorney General of the Federation,
AGF. Latest rumours reaching us indicate that the decision might have been
made, without giving those accused a chance to defend themselves in any
court of law. That by itself should give all well meaning Nigerians great
concerns about the nation's gradual slide into dictatorship. It is one of
the fundamental principles in a democracy that nobody should be punished
based on allegations alone - irrespective of who makes the allegations and
how grievous they might be.
Mr Obazee, the Special Investigator, has placed before the public several
charges against Godwin Emefiele and some bankers. I have no reason to accept
or dismiss those accusations. It is not even my duty as a media commentator.
However, like most of my colleagues privileged to act as public watch dogs,
it is my duty to try and ensure that justice is done to all concerned - the
country, the stakeholders in the bank, the depositors and the staff. Right
now, the imminent rush to judgment, based on Obazee's Report violates the
basic principle of justice - let the other side be heard. We have not heard
from Mr Tunde Lemo and others. That they failed or even refused to appear
before the investigative team might be a necessary reason to suspect that
they might stand on shaky grounds legally. But, it is not a sufficient
condition to assume guilt on all the charges levelled against them. There is
a reason for holding this position.
Invasion of Dangote And BUA Offices By EFCC.
"Are you going to hang him anyhow and try him afterward?"
Mark Twain, 1835-1910.
The invasions of the offices of the Dangote Group of Companies, BUA
International and the attempt to rush the bankers into submitting voluminous
documents within a few days strikes me like the methods adopted by a lynch
mob.
Permit me to explain myself before the reader thinks that I have been
settled by one or all the accused individuals.
I was part of Top Management in a joint venture between the Federal
Government and private investors in the 1970s to 1980s. I was employed about
eleven years after the agreements were signed; worked for two years before
the Buhari military administration took over in 1983/4.
A request came four months after the change of government for Management to
produce audited accounts for the last ten years.
As Marketing Manager, I was specifically requested to provide the sales and
revenue records for the ten years and report to Lagos in two weeks.
On the face of it, nothing could be simpler. In reality, we were given
orders which could not be obeyed - given the time allotted.
The company, like most, as a matter of policy, kept records in Active
Archive for five years - after which they are sent to Old Archive.
Unfortunately, the Old Archive was not always in good condition and it could
take weeks to obtain documents seven years old. I went with four years
documents, which were all that I could get in two weeks; and was promptly
detained for not cooperating with the probe panel.
Without going further about our sad experience, the reader can understand
what I am driving at regarding the ongoing investigations by Obazee and the
EFCC into the affairs of the companies and banks.
I am merely insisting that no large and complex organisation can produce ten
years documents in six months - not to talk of a few weeks.
By setting a date impossible to meet, the investigators have inadvertently
or deliberately created the situations in which we find ourselves.
Irrespective of whether they acted out of ignorance or malice, they need to
be told that they might end up creating the worst economic chaos in Nigerian
history.
Taking an axe to the tap root of your economy in a hasty attempt to reach
pre-determined goals will turn out to be counter-productive and dangerous.
Again, an explanation is needed - borrowing from other lands.
Price Fixing In The USA
By the mid-1940s, when the US Congress (NASS) discovered that some of
America's largest companies, in the same sectors, were colluding to fix
prices and defeat the aims of competition, one of the options government had
was to bring down the sledge hammer and close those firms.
But, there was a huge unemployment problem and the culprits were major
employers - as well as the largest companies on the Stock Exchange.
The FBI was not sent to embarrass the Presidents of the firms; neither were
they threatened with takeover or closure.
Realising that every nation needed its talented entrepreneurs to create the
jobs which make governance easier, they treated them with well-deserved
respect.
It is not easy to amass $1 billion; and after raking it together, to risk a
big chunk of it in a risky environment like the Nigerian economy.
It requires a great deal of guts and patriotism for Dangote, Rabiu and
others now under the gun to have grown the businesses which directly and
indirectly provide means of livelihood for millions of fellow citizens. That
is the major reason for which we must bend over backwards to give them the
benefit of doubt on this matter.
Pull Them Down Has No Place Here
"You will find envy wherever there's good fortune. There are always people
who will envy you if you are happy." Aleksandr Solzhenitsyn,
Great wealth, however acquired, has been the greatest cause of pervasive
envy among people.
It underlies all attempts to bring down the fortunate - even by people they
make immensely rich. No opportunity is lost to cut them down to size. Some
of this might be involved here.
But, with banking in disarray on account of allegations against the former
Governor of Central Bank of Nigeria, CBN, and three banks, taking aim, until
evidence beyond reasonable doubt is produced, at two or more of the nation's
manufacturers, might turn out to be cutting our noses in order to spite
somebody else's face.
As it is, Nigeria's manufacturing sector will face its greatest challenge,
since 1984, in 2024. Scarcity of everything, hope included, already
threatens millions of jobs. More than ever, we need Dangote, Rabiu and other
producers who might be among those asked to bring, within weeks, documents
which were buried under piles of rubbish years ago.
EFCC must give them more time to produce the documents they asked for - or
Nigeria will suffer the consequences.
Incidentally, in our own case, after negotiating for more time to produce
the documents, those of us in office were faced with evidence of actions
taken under different laws, as well as policies of the company.
In my own case, as Marketing Manager, I was asked to explain why over two
million naira, almost N20bn now, outstanding payments arose eight years ago
when the company was new and needed customers. Payment in advance became
policy in my tenure when our brand became a market leader.
The man who gave credits was dead. It took six trips and lots of
explanations - plus legal fees - before the matter was dropped.
-Vanguard.
Ghana Gets Debt-Relief Terms
Ghana has received a draft term sheet on debt relief from its official
creditors that is sufficient for the International Monetary Fund to disburse
US$600 million to the West African nation, Finance Minister Ken Ofori-Atta
said.
The term sheet from the Paris Club Group of creditors and new ones including
China comes after months of negotiations to restructure as much as US$5,4
billion of bilateral debt. The IMF board is expected to meet in a week.
"We are reviewing the draft term sheet," Ofori-Atta said in an interview in
the capital, Accra on Thursday, declining to provide details in the draft
accord. We need to scrutinize every clause but in terms of the broad
framework, all parties are in agreement so it's kind of a clearance to the
fund. I'm hoping by tomorrow we would have finished so that whatever needs
to be done will be sent to the fund," he said.
Ghana's bonds due January 2026 rose for a fifth day to touch the highest
levels since October 16 at 43,41 cents on the dollar. Debt due in October
2030 almost advanced for a fifth day, the longest streak in two months. The
price of the bond was quoted at 63 cents to the dollar, the highest since
January 1 on a closing basis.
Ghana started restructuring most of its public debt in December 2022 to
qualify for a US$3 billion extended credit facility program with the IMF.
The country received an upfront disbursement of US$600 million when it
agreed to the program in May. Further releases, however, depend on meeting
debt-rework and other performance targets.
Discussions between Ghana and the official creditor committee are ongoing,
and good progress is being made, IMF spokeswoman Julie Kozack told reporters
Thursday, adding that the fund is confident an agreement can be reached
soon. -- Bloomberg.
Tanzania: Greenfield Starts Mining Exploration in Central Corridor
TANZANIA: GREENFIELD Exploration has commenced mineral exploration
activities in Dodoma, Shinyanga and Singida regions.
The Greenfield, a Geita Gold Mine Limited (GGML) subsidiary, seeks to
discover commercial mines in the three regions targeted in the last four
years.
AngloGold Ashanti CEO Alberto Calderon said when visiting the GGML over the
weekend that they want to increase their presence and production levels in
the country.
"This is why we're investing to find another world-class gold deposit in
Tanzania," Mr Calderon said.
The GGML is preparing to celebrate its 25th anniversary in April while the
first gold bar rolled out of the plant in June 2000.
Additionally, the currently large gold producer in the country, in line with
its parent company AngloGold Ashanti's sustainability strategy to reduce
carbon emissions, is implementing a project that will reduce the mine's cost
of power by half and also have the potential to minimise its carbon emission
by 2030.
AngloGold Ashanti is the world's fourth-largest gold producer by production.
The Greenfield Exploration is headquartered in Dodoma.
-Daily News.
Tanzania: Food Vendors in Dodoma Go for Clean Energy
DODOMA: FOOD vendors in Dodoma region have breathed a sigh of relief after
receiving 500 gas cylinders and stoves.
The donation was given by Oryx Gas Tanzania Limited (OGTL) in collaboration
with an MP for Dodoma Urban, Mr Anthony Mavunde, who is also Minister for
Minerals.
The donation is expected to facilitate them in their activities and protect
their health.
Speaking during the event over the weekend, OGTL Managing Director Benoite
Araman said the cost of all gas cylinders and stoves was 41m/-.
He said they will continue to follow the instructions of the government
encouraging the use of clean energy for cooking by continuing to distribute
the cylinders to people of various groups.
"Cooking with gas protects the environment, protects health by preventing
them from inhaling smoke that affects their lungs which is the result of the
use of firewood and charcoal," he said.
Mr Araman said the use of clean cooking energy, especially gas, makes women
spend less time cooking, so they get a chance to do other development
activities.
On his part, Mr Mavunde said the government is well organised to ensure that
all Tanzanians are using gas to protect the environment and their lives.
"I am grateful to the Oryx Gas Company for accepting our request to support
the food vendors of Dodoma City by providing them with gas stoves which will
help them protect the environment and their health," Mr Mavunde said.
He said it is through President Samia Suluhu Hassan, that a lot of
Tanzanians are going to use gas for their daily activities.
President Samia envisions that 80 per cent of Tanzanians should use clean
energy by the year 2032 to get rid of environmental pollution that leads to
climate change.
"We thank President Samia for prioritising and being diligent in managing
this matter and as you can see the guidelines that have been issued here
will reduce the use of charcoal. If we reduce the use of firewood and
charcoal, we will have reduced the environmental pollution as well as
protecting our health," he said.
Mr Mavunde said President Samia's campaign that encourages the use of clean
energy is going to save the lives of mothers and fathers who spend most of
their time cooking by using firewood and charcoal.
OGTL Marketing Manager, Mr Peter Ndomba, trained food vendors on the safe
use of cooking gas, the aim being to take precautions to avoid possible harm
by not paying attention to safety when using a gas stove.
He said the company's strategy, apart from providing gas cylinders and
stoves to the people, has also been creating awareness among gas users to
protect them from harm that may be caused by the poor handling of gas.
Special Seats Member of Parliament representing a group of Civil Society
Organisations through Chama Cha Mapinduzi (CCM), Ms Neema Lugangira said she
was aware of the challenges that women go through in preparing food at home.
Dodoma District Commissioner, Alhaj Jabiri Shekimweri, emphasised that food
vendors should make sure they use the gas stove properly to avoid harm that
may be caused by the gas.
"It is important for the food vendors who have received the stoves to have
education about the best way to use gas without getting any harm. I am happy
to hear that Oryx Gas Company is also providing education on the use of the
gas stove," he noted.
-Daily News.
Invest Wisely!
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INVESTORS DIARY 2024
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