Major International Business Headlines Brief::: 19 July 2024

Fri Jul 19 06:49:54 CAT 2024

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Major International Business Headlines Brief:::  19 July 2024 

 <mailto:info at bulls.co.zw> 

ü  West Africa: Ecowas Calls for Swift Implementation of Single Currency Program

ü  Ethiopia, Iran Express Desire to Collaborate in Agriculture Sector

ü  Uganda: Museveni Opens 70 Million - Litre Facility to Boost Uganda's Fuel Security

ü  Africa: Should African Nations Develop Their Fossil Fuel Resources?

ü  Tanzania: Electric Train Poses Little Threat to Air Travel

ü  South Africa: SA Reserve Bank Holds Key Repo Rate Steady, but Signals Positive Outlook

ü  West Africa: Ecowas Council of Ministers Approves Budget for Commission's Internal Services Department

ü  Kenya: Shilling Slips Against Major Currencies in the Wake of Gen Z-Led Protests

ü  Tanzania: Zanzibar Registers Current Account Surplus

ü  Tanzania: Government Vows to Improve Investment Climate

ü  Kenya: Nyando Farmers Oppose Re-Opening of Closed Sugarcane Weighbridges

ü  Kenya: SRC Freezes Entire Public Sector Salary Review

ü  Chip stocks drop on fears US to toughen China rules

ü  Backlash after Pret changes coffee subscription deal

ü  Pound hits highest level against dollar for a year

 <mailto:info at bulls.co.zw> 

West Africa: Ecowas Calls for Swift Implementation of Single Currency Program

The Economic Affairs and Agriculture Department of the ECOWAS Commission has called for the expedited implementation of the single currency program.

This recommendation was presented in a report to the Sixth Legislature of the ECOWAS Parliament on Monday, 15 July 2024, during its First Ordinary Session.

The report highlighted numerous challenges faced by the department and proposed solutions, with a key emphasis on implementing the single currency program. "It is crucial to build consensus between Member States to fast-track the implementation of the ECOWAS Single Currency Programme and provide the Department with the necessary human resources to enable it to carry out its mandate timely," the report revealed.

Despite continuing to implement approved activities and work programs, the department faces significant challenges. These include non-tariff barriers to the free movement of people and goods, economic and financial volatility due to domestic and external shocks, climate change, recurring farmer/herder conflicts, and insecurity due to armed conflicts, which have resulted in food insecurity for millions in the region.

The report pointed out that the lack of consensus among Member States and insufficient human resources have delayed the creation of the single currency. To address these issues, the report suggested strengthening awareness among States for compliance with community texts, implementing rigorous economic policies, promoting peaceful coexistence, and combating terrorism and violent extremism.

In the realm of inclusive and sustainable development, the commission supported member state experts in international meetings and negotiations on environmental concerns and ECOWAS priorities. The commission has also launched a process to develop a regional action plan on plastic waste management, aimed at enhancing environmental governance and capacity building.

The report detailed efforts to support pastoralism, including the vaccination of 392,260,925 livestock by mid-2024. Additionally, the commission has launched a project to access the Green Climate Fund, promoting climate-smart agriculture through sub-projects and climate-adapted technologies.

On food and nutrition security, efforts are being made to improve livestock feed availability through the PRISMA project. The commission has also developed a regional rice production roadmap to achieve self-sufficiency and held the first General Assembly of the Rice Observatory, bringing together over 150 stakeholders in the rice sector.

The report, covering activities from January to June 2024, underscores the need for continued efforts to advance community projects, with a significant focus on the single currency program. Regional lawmakers reiterated the need to expedite this program, which has seen little progress despite long-standing discussions.

- Foroyaa.

Ethiopia, Iran Express Desire to Collaborate in Agriculture Sector

Addis Ababa — The Minister of Agriculture Girma Amente discussed with the Ambassador of Iran to Ethiopia, Ali Akbar, on the issues that will enable them to exchange experience regarding agricultural investment and new technologies.

The Minister of Agriculture appreciated the commitment of the Iran government to work with Ethiopia in the field of agriculture.

He expressed Ethiopia's desire to acquire knowledge in agricultural technologies from Iran.

The minister added that Ethiopia has a favorable environment for agricultural investment and confirmed that Iranian investors can come to Ethiopia and invest in the sector.

Iran Ambassador Ali Akbar, on his part, expressed the desire of Iran's government to work together with Ethiopia on the exchange of agricultural experience and knowledge.

- ENA.

Uganda: Museveni Opens 70 Million - Litre Facility to Boost Uganda's Fuel Security

President Museveni has launched a 70 million litre fuel storage facility on Lake Victoria that is set to boost Uganda's fuel security.

The facility owned by Lake Victoria Logistics is located at Bugiri-Bukasa in Wakiso district and has 14 tanks with a collective storage capacity of 70,000,000 liters.

Speaking on Thursday, President Museveni welcomed the new facility.

"This is the time to go into rationalisation and this is part of it by getting fuel off the roads. This is rationalization of the economy as we are now going for the best practices," Museveni said.

"I am happy for this since it will help us, now that it is cheaper than it was(using road transport). Once you have entered market of Uganda ,you are talking of the market of South Sudan, Rwanda, Burundi, DRC. You have made the best decision."

He pledged government's commitment to ensuring the surrounding road network is improved to ease transportation of fuel from the facility to the market.

Capt Mike Mukula, the chairman of Lake Victoria Logistics said the facility will help in bringing down the cost of fuel in the country.

"This investment will be a major catalyst in reducing cost of doing business in the country since transport is one of the major pushers of high costs. It will reduce cost of transport between Kisumu and Uganda," Mukula said.

Ravi Shankar, the Managing Director for Mahathi Infra said the facility has a 256-meter-long jetty, which facilitates the berthing of vessels, enabling efficient cargo handling but also has two tanker ships each with a cargo capacity of 4. 5 million liters.

"This facility provides fuel security for the country but also helps reduce strain on the road as fuel is transported on water unlike the conventional way of using trucks which is also more expensive."

The Works and Transport Minister, Gen Katumba Wamala welcomed the new facility and project at large.

"Being land locked we continue to depend on road transport which comes with high maintenance costs, fuel adulteration, traffic congestion, accidents and related non -tariff barriers which lead to delays and increased costs. It is therefore a deliberate government policy to reduce number of trucks which transport oil from Kisumu to Uganda by use of rail and water transport or any other means," Gen Katumba said.

He encouraged private sector to continue investing in water transport.

The Minister for Energy, Ruth Nankabirwa described the facility as a new milestone for Uganda.

"We are making conducive environment for oil marketing companies and our expectation is to see reduced pump prices. If we are reducing transport costs by almost 50%, it should come with affordability on the pump price. Oil marketing companies should not target super profits," Nankabirwa said.

The minister said by transporting fuel on water government is contributing to reduction in carbon emissions.

"It will also reduce on carbon emission for the country. Pollution levels which were being brought about by transportation by trucks will go down."

- Nile Post.

Africa: Should African Nations Develop Their Fossil Fuel Resources?

Senegal is the latest African country to start producing oil. But would Senegal and other African countries be better off in the long term keeping their oil and gas in the ground?

Senegal is celebrating joining the list of African oil producers after its first offshore field started pumping crude oil in June. The country sees its nascent oil and gas industry as vital to its economic development.

The first phase of production from its Sangomar oil field, which sits some 90 kilometers (56 miles) off Senegal's coast, will be far less that Africa's bigger oil producing countries; Sangomar will potentially produce 100,000 barrels per day for export compared to Nigeria's 1.2 billion.

Senegal's massive Greater Tortue Ahmeyim (GTA) gas field, which straddles the border of Senegal and Mauritania, is also expected to come online later this year although both projects were scheduled to start production three years earlier.

"First oil from the Sangomar field marks a new era not only for our country's industry and economy, but most importantly for our people," said Thierno Ly, the general manager of Petrosen, Senegal's state owned energy company, in June.

Petrosen holds an 18% stake in the Sangomar project, with Australian energy giant Woodside as the main stakeholder in the project, which cost around $5 billion (€4.6 billion). The state owned energy company also has a 10% stake in the GTA field, which is being developed by BP and Kosmos Energy.

Oil and gas fuel Senegal's economic growth

These fossil fuel resources won't transform Senegal into a rich country, experts warn, but they are expected to boost its economy.

In its April 2024 regional economic outlook, the International Monetary Fund (IMF)found that Senegal was among the fastest-growing economies in sub-Saharan Africa, projected to expand by 8.35% in 2024, "thanks to oil and gas projects coming online."

The contribution of oil and gas production to the overall economy is expected to remain "relatively limited," however, at less than 5% of total GDP, noted Papa Daouda Diene, senior economic analyst at the Natural Resource Governance Institute, a US-based think tank.

"So as you see, these resources alone cannot transform Senegal into Dubai," Diene told DW from Senegal's capital Dakar.

"But if managed well -- I really want to put the emphasis on that -- if managed well, they can help initiate and or strengthen Senegal structural transformation."

Shrinking fossil fuel market

But it isn't certain that Senegal will see as much oil and gas revenue as it has projected as the global transition to cleaner energy is expected to shrink longer-term demand for oil and gas.

Algerian climate policy analyst Yamina Saheb, a lead author on the Intergovernmental Panel on Climate Change report on climate mitigation, is blunt in her assessment of Senegal's oil and gas investments.

"It's very bad news indeed, because they're going to find themselves locked into an economic model that no longer works," she told DW.

The latest World Energy Outlook, published by the International Energy Agency (IEA), finds that global demand for coal, oil and natural gas is flattening this decade and will decline in next decade.

The October 2023 report projects that renewables' share of the global electricity mix will near 50% by 2030, up from around the current 30%.

"These expectations on fossil fuel revenues fueling development are a bit inflated," said Mats Marquardt, a climate policy analyst at the German-based New Climate Institute, who has researched Senegal's liquid natural gas (LNG) market.

"It's clear that we were seeing that that the Golden Age of gas is over," he told DW. "This is something that the IEA has been very vocal about and under these circumstances, obviously the business case for fossil fuel exports also have to be under scrutiny now."

If global oil and gas prices drop significantly, Senegal and other countries who invest heavily in developing their fossil fuel resources, might struggle to cover their initial costs. This could leave countries sitting on so-called stranded assets, that is assets that become obsolete before the end of their economic life without their cost being recouped.

Europe's search for new gas sources over

West Africa's closest major export market for gas is Europe. But the European Union (EU), which initially signaled intense interest in investing in African gas projects after Russia launched its war on Ukraine in 2022, has seen support for new investment cool as it shifts its focus to renewables.

In 2022, wind and solar generated 22% of electricity in the EU, overtaking gas at 20% for the first time, according to the 2023 European Electricity Review.

"The European market as a mature market with very strong climate target targets ... doesn't need major new sources of LNG export," said climate policy analyst Marquardt.

Africa not responsible for climate change

African nations often stress that they have the right to develop their fossil fuel resources as they seek to bring electricity to the roughly 50% of people without it on a continent responsible for only a fraction of the greenhouse gas emissions driving climate change.

But investing in fossil fuels risks locking African countries into using emissions-intensive energy generation domestically, which would see Africa being left behind again, experts warn.

One of them is Tunisian economist Fadhel Kaboub, a senior adviser at Power Shift Africa and a member of the Independent Expert Group on Just Transition and Development.

"They risk doubling down on investments in obsolete technologies, expensive stranded assets and letting the rest of the world leapfrog into the green industrialization and decarbonization," he said.

Africa has enormous untapped renewable energy resources, he said.

"According to IEA's latest report about Africa, they're saying by 2040, with existing renewables technology, not with new fancy innovations, Africa can produce 1,000 times its energy needs."

Tanzania: Electric Train Poses Little Threat to Air Travel

DAR ES SALAAM — THE new electric train service, set to begin next Thursday from Dar es Salaam to Dodoma, is not expected to compete immediately with the country's airlines, according to analysts.

The train operated by the Tanzania Railway Corporation (TRC) will cover the route between Dar es Salaam and Dodoma in approximately two and a half hours.

In contrast, the airlines Precision Air and Air Tanzania complete the same journey in just over an hour.

Daily News interviewed some stakeholders in the aviation sector on whether the introduction of the route will pose a challenge between airlines and the railway based on the latter's speed.

Rather, they say the real competition will be with bus companies traveling between cities since it is difficult to shift air passengers to the train but easy for bus passengers to move to the train due to reliability and comfortability.

St Augustine University of Tanzania (SAUT) Economist, Dr Isaac Safari told the Daily News that it is not easy for airline passengers to switch to trains, as many of them feel that flying is more prestigious.

"However, the route is too good for those who travel by buses as they may be more likely to switch to trains, as it offers greater safety," he said.

Airline safety in Tanzania, like in many countries, is highly regulated and incidents are relatively rare due to stringent safety standards and regular maintenance protocols.

On the other hand, road accidents are generally more frequent largely due to factors such as road infrastructure challenges, vehicle conditions and varying levels of adherence to traffic regulations.

However, Eagle Travel Distribution System Chief Executive Officer Mr Renatus Kyakalaba said that there would be slight competition due to various challenges faced by airlines, such as delays and flight cancellations.

"These issues can make train travel a more attractive option for passengers seeking reliable and punctual transportation alternatives.

"The reliability of train schedules and the potential for faster journeys make trains an appealing alternative for passengers seeking a more convenient and efficient mode of transportation but not those who travel by planes," he said.

Recently, the Land Transport Regulatory Authority (LATRA) announced electric fares of 31,000/- for adults, with children aged 12 and below paying half the cost.

This pricing strategy makes train travel more accessible and affordable for families, compared to prices set by the country's airline Air Tanzania and Precision Air.

Dr Hilderbrand Shayo, an economist cum investment banker, said that it is currently challenging to assess the level of competition, as the number of train routes, cargo capacity and passenger volumes have not yet been determined.

Dr Shayo's statement highlights the competitive advantage of the Standard Gauge Railway (SGR) over airlines in the cargo business.

"Small planes used by airlines are limited in their cargo-carrying capacity. Consequently, these airlines find it challenging to compete with the speed train, which can transport significantly larger volumes of cargo more efficiently," he said.

Air Tanzania's price for one way trip to Dodoma is between 150 US dollars (economy) and 250 US dollars (first class) while flying time is one hour and ten minutes.

The traveling price for Precision Air is around 250,000/- and 260,000/- as of yesterday.

According to In On Africa X (tweeter), travel utilizing small aircraft has long been necessary but the muchawaited high-speed rail between these two cities might change the trend.

"These flights face competition from the trains now," In On Africa posted on its X. Small aircraft take almost two hours to fly between the two cities.

- Daily News.

South Africa: SA Reserve Bank Holds Key Repo Rate Steady, but Signals Positive Outlook

In a widely expected move, SA Reserve Bank governor Lesetja Kganyago confirmed that the Monetary Policy Committee had elected to keep the repo rate unchanged at 8.25%.

Four Monetary Policy Committee (MPC) members preferred an unchanged stance and two preferred a reduction of 25 basis points. MPC members agreed that the restrictive policy was appropriate to stabilise inflation at 4.5%, given the inflation risks.

"Economic performance in the first half of the year was disappointing. The economy contracted slightly in the first quarter, by 0.1%, and recent data, including last week's mining and manufacturing numbers, have caused us to trim our second quarter growth estimate modestly, to 0.6%.

"Over the medium term, we expect somewhat faster growth, supported by a more reliable electricity supply and improving logistics, among other factors," Kganyago said. However, he tempered this with the proviso that the revised growth projections remained below longer-run historical averages, of about 2%.

Inflation expected to dip

Inflation came in at 5.2% for May, unchanged from April and still at the upper end of the 3% to 6% target range. The Reserve Bank is now expecting headline consumer price inflation for this year to be 4.9%, compared with 5.1% at the previous meeting. Over the next few quarters, headline inflation is expected to dip below the 4.5% midpoint, mainly because of fuel and food prices. This outlook is...

-Daily Maverick.

West Africa: Ecowas Council of Ministers Approves Budget for Commission's Internal Services Department

The Council of Ministers of the ECOWAS Commission has approved a budget of 13,082,120 Units of Account (UA) for the utilities and daily running of the office of the Internal Services Department of the Commission, as well as another amount of UA 5,793,628 under a special budget for rent accommodation, construction and renovation of the official residence of the President of the Commission.

These budget approvals were disclosed in the report of the Internal Service Department of the Commission on Tuesday, 16 July 2024. They were presented before Members of the ECOWAS Parliament by Obiageli Nwodo.

The report highlighted some key projects such as the construction and management of the headquarters building and the main frame of the superstructure of the office building, conference center, and other ancillary buildings which have so far been completed.

Also as indicated in the report, the Chairperson of the Council of Ministers was on site on Friday, July 5 2024 with other members of the Ad-hoc Ministerial Committee of construction of the headquarters of the community institution to assess progress and conduct site inspection. The report underscored that the project is expected to be completed on schedule in January / February 2025

Another project according to the report is the renovation of the current structural building, adding that the current headquarters building is 30 years old and there is a need for some structural renovation on the structure.

According to the report, approval of the President of the Commission is still being awaited to commence the tender process.

The report went on to indicate that in line with Article 149 of the Financial Regulation, the External Audit Unit's 2023 Financial Statements on the ECOWAS Institutions and Agencies as well as the 2023 Consolidated Financial Statements, are being completed and approved by the just concluded Council of Ministers on the recommendation made by the Audit Committee.

On the development of the ECO-link system to agencies and offices and the deployment of the system to Agencies and Offices of the Commission, the report showed that the implementation of the system has resulted in the development of an integrated administrative and financial management system on a real-time basis within all the ECOWAS institutions and Agencies.

"It has improved transparent and prudent financial management, corporate governance, and risk management. It has also helped to align our organizational strategies and plans through visibility of operations and improved decision-making processes," the report said.

While the sustainability of implemented modules is being monitored through support consultancy, the report informed that the ECOLink team continues to roll out the system in all ECOWAS Offices to have the entire business processes managed within the system.

On the human resource directorate, the report indicated that the overall role of this directorate is to ensure that management deals effectively with the recruitment and development of staff and strengthens the relationship that exists between them; that it also provides a conducive environment where individual employees can make the best use of their capabilities and realize their potentials for the benefit of both ECOWAS and the employee.

To achieve these, the report said that the Human Resource Department is expected to strategically foster partnerships with management and other departments in the Commission, and will benchmark organizations to provide the required best practice in human resources services. It further outlined that the objectives of the HR Department are to strengthen the human resources capacity of the Commission, provide accelerated delivery of such services to all directorates and other stakeholders of the Commission and ECOWAS institutions with fairness and equity, and to provide the necessary support to the Commission in encouraging good work ethics, among others.

The report cited the organization of online training for all ECOWAS staff and MSC & Advisory Committee meetings, as initiated during the Covid period; the organization of the yearly pre-retirement training for retiring staff and the management of the ECOWAS Staff Training Center as some of the main achievements and implementation of the programmes.

- Foroyaa.

Kenya: Shilling Slips Against Major Currencies in the Wake of Gen Z-Led Protests

The Kenyan shilling has slipped against various major currencies, a development attributed to the ongoing youth-led demonstrations and the country's downgraded rating by global rating agency Moody's.

Treasury, in a commentary with with Capital FM disclosed that the local unit has continued to face a downturn, with forex figures showing a scaled-up exchange rate of the local unit against regional currencies.

"The local unit continued to lose ground against the greenback closing the session lower to its opening levels yesterday," said Treasury.

As of Thursday, different forex bureaus quoted the local unit at Sh131 against Sh131.75 compared with Monday's closing rate of Sh128.75, Sell Sh129.75.

The pound and euro, on the other hand, traded at 170.3/171.3 and 143.2/144.1 compared to Monday's closings at 167.30/168.70 and 140.50/141.65.

On July 9, Moody's cut Kenya's sovereign credit ratings, citing "diminished capacity to maintain revenue-based fiscal consolidation that would improve debt affordability and place debt on a downward trend." Moody's said the downgrade places Kenya's foreign-currency long-term issuer ratings and foreign-currency senior unsecured debt ratings to Caa1 from B3, with the country's outlook remaining negative.

"In particular, the government's decision not to pursue planned tax increases and instead rely on expenditure cuts to reduce fiscal deficit represents a significant policy shift with material implications in Kenya's fiscal trajectory and financing needs," it said in a statement.

This followed President William Ruto's withdrawal of the 2024 finance bill in the wake of the Gen Z-led protests.

The government had sought to raise an additional 346.7 billion Kenyan shillings (about 2.7 billion U.S. dollars) to fund its 31-billion-dollar budget for the financial year 2024/2025.

Earlier, the Treasury had admitted that the negative ratings by the global credit rating agency hurt Kenya's chances of attracting cheaper loans from the international market.

- Capital FM.

Tanzania: Zanzibar Registers Current Account Surplus

ZANZIBAR — ZANZIBAR'S current account surplus has registered a significant increase in the last one year thanks to the tourism sector contribution.

According to the Bank of Tanzania (BoT), the current account balance witnessed a remarkable improvement, reaching a surplus of 506.9 million US dollars in the year ending May.

This marks a substantial rise from the 389.1 million US dollars' surplus recorded during the corresponding period last year.

"The development was largely associated with an increase in service receipts, particularly from tourismrelated activities," BoT's latest monthly economic review said.

A current account surplus means that a country has more exports and incoming payments than imports and outgoing payments to other countries.

The tourism sector's robust performance has been a key driver of Zanzibar's economic growth, contributing significantly to the balance of payments.

The report said service receipt, particularly tourism rose by 12 per cent to 1.020 billion US dollars, following increased tourist arrivals.

Generally, exports of goods and services amounted to 1.084 billion US dollars a year to May, higher than 975.8 million US dollars in a similar period last year, owing to an increase in service receipts.

Conversely, cloves exports declined by 32 per cent to 28.9 million US dollars from the level recorded in the corresponding period last year, due to the cyclical nature of the crop.

ALSO READ: Mwinyi urges action on tourism, fisheries threats

On a monthly basis, exports of goods and services rose to 103.4 million US dollars in May from 67.1 million in May, driven by services, particularly tourism-related activities.

On the other hand, imports of goods and services decreased slightly by 0.6 per cent to 591.8 million in the year ending.

"The decrease is largely explained by the fall in goods imports, particularly intermediate and consumer goods," BoT said.

The decline in intermediate goods imports was largely due to a decrease in imports of industrial supplies and fuel and lubricants.

The decrease in consumer goods imports was mostly on account of the decrease in food and beverages, particularly for household consumption and non-industrial transport equipment.

Meanwhile, capital goods imports recorded an increase, largely attributed by the ongoing infrastructure developments.

Month-to-month imports of goods (FoB) and services amounted to 43.7 million US dollars in May, slightly lower than 49.7 million US dollars registered last May.

Experts highlight that the surge in tourist arrivals and increased visitor spending have bolstered service revenues, thereby enhancing the current account surplus.

This trend underscores the importance of tourism as a vital component of the nation's economy.

Zanzibar has a unique economic structure shaped by its history, geography, and political status

- Daily News.

Tanzania: Government Vows to Improve Investment Climate

TANZANIA — THE government has reiterated its commitment to continue strengthening and creating conducive environment for investment in the country, by tackling various sectoral challenges in order to attract more domestic and foreign direct investment projects.

The goal is to make it easier for investors to understand how other businesses and projects are progressing in Tanzania so that they can be attracted to invest in the country.

The remarks were made by the Deputy Minister of State in the President's Office, Planning and Investment, Mr Stanslaus Nyongo, during his familiarization tour to the Tanzania Investment Centre (TIC) on Tuesday in Dar es Salaam.

"As we all know, investment is critical for the country to progress, both domestic and foreign investors are crucial, and this centre is very important in creating an environment for people to come and invest and make the sector successful in our country," said Mr Nyongo.

He appealed to all investors, especially locals, to take advantage of the available opportunities by investing in the country in order to support President Samia Suluhu Hassan's efforts to provide ample opportunities for domestic investors.

Furthermore, he commended TIC for establishing and continuing to facilitate provision of services to investors, including the establishment of a one-stop centre that has merged various government institutions, a move that has reduced the need for investors to visit different offices in search of licensing and authorisation of services.

"So, instead of the investor coming and starting to go around one office after another looking for licenses and various services, those services are now available here, and that is a good thing I have seen, and as a country, we must take pride in the step we have reached," he said.

Mr Nyongo also expressed gratitude to the sixth phase government under President Samia for continuing to improve the TIC, which has been a relief for both domestic and foreign investors, as well as an economic stimulus.

During his familiarisation tour at the TIC, the deputy minister also had an opportunity to discuss various matters with TIC management and other staff.

According to the TIC, project registrations has surged by 91.6 per cent and stretched to 707 worth of about 7 billion US dollar (approximately 19tri/-) from July 2023 to June 2024, from the 369 worth 5.4 billion US dollar (14tri/-) recorded in the same period of 2022/2023.

The achievement is attributed to the new Investment Act No. 10 of 2022 that acts as the pivotal role in boosting both domestic and foreign direct investment.

- Daily News.

Kenya: Nyando Farmers Oppose Re-Opening of Closed Sugarcane Weighbridges

Nairobi — Cane farmers in the Nyando sugar belt have opposed the push to have sugarcane weighbridges, which had been closed by the Agriculture and Food Authority (AFA), reopened.

A section of farmers have called on AFA to allow the weighbridges to operate.

However, farmers within the belt noted that there was a clear agreement on setting up of weighbridges in the sugar sector, which was to be done in every region where sugar factories are based, commonly known as regional zoning.

Kenya National Federation of Sugarcane Farmers Muhoroni branch Secretary Killion Osur says the weighbridges that were closed must remain shut until the millers set up the same within their jurisdictions.

"Let millers open weighbridges within their jurisdictions, and not to open them everywhere," he said.

Osur says the sugar task force report was very clear on regional zoning and divided the country into five regions and that millers must just operate within their regions as also guided by AFA.

"If the millers are allowed to operate these weighbridges anywhere, then other millers will run out of the raw materials," he said.

Speaking to the press after a farmers meeting in Chemelil, Osur says millers must keep to their areas and harvest cane within their reach and termed the establishment of weighbridges anyhow as a form of poaching.

"We are telling West Kenya sugar mill to restrict collection of cane to their area, and so to Kibos Sugar Factory," he said.

He noted that Kibos has already stopped the operation of weighbridges outside its jurisdiction.

Cane transporters within the belt say the mills around Nyando have the capacity to consume the sugarcane they produce.

They decry losing out on transporting cane to the mills within the belt if other millers from outside are allowed to operationalize weighbridges within the belt.

"They will transport all the cane outside the belt and that will lock out our transporters from business," said Edward Onyango, chairman of Muhoroni Transporters.

However, Samuel Ong'ow, who is AFA Director, says the decision to have millers shut down the weighbridges was made after wide consultation from stakeholders in the sector and was meant to bring order to the industry.

Ong'ow says two millers, Kibos and West Kenya, were the most affected by the closer of the weighbridges.

"Kibos has closed 5, West Kenya has closed 3 and we have agreed that every milker must stick to its area," he said.

He further noted that the current Sugar Bill, which is before the Senate, will formalize the arrangement.

- Capital FM.

Kenya: SRC Freezes Entire Public Sector Salary Review

Nairobi — The Salaries and Remunerations Commission (SRC) has frozen salary reviews in the entire public sector.

According to the commission, this is due to emerging fiscal constraints and budget cuts emanating from the withdrawal of the Finance Bill, 2024.

"The Salaries and Remuneration Commission has deferred the implementation of the salary review for all other public officers in the financial year 2024/2025 until further notice, contingent upon the availability of funding," SRC pointed out in a statement.

It further indicated that the decision was informed by there being no allocated budget for the implementation of the advised remuneration and benefits for all other public officers for the financial year 2024/2025, and which was to take effect in July 2024.

SRC said annual salary notch adjustments in existing salary structures will continue to be applied within budget allocation.

It said no additional funding will be provided for the implementation of the job evaluation results in the financial year 2024/2025.

The commission added that Public service institutions with Collective Bargaining Agreements (CBA) that are impacted by the deferred implementation of salary review in the financial year 2024/2025, are advised to engage the respective trade unions accordingly.

- Capital FM.

Chip stocks drop on fears US to toughen China rules

Technology stocks around the world have slumped on fears about the global computer chip industry.

The sell-off came after a report that the Biden administration could be set to further tighten restrictions on exports of semiconductor equipment to China.

Comments by former US President Donald Trump that Taiwan, the biggest producer of chips, should pay for its own defence added to the concerns.

In the US, the tech-heavy Nasdaq index closed 2.7% lower on Wednesday, while chip stocks have also tumbled in Europe and Asia.

"Regardless of the outcome of the elections... I think we will see the US increase some of the restrictions" said Bob O'Donnell, chief analyst at TECHnalysis Research.

"How far they will take it, though, is the big question."

In Asia, chip making giant TSMC lost 2.4% on Thursday, while semiconductor equipment maker Tokyo Electron was down by around 8.8%.

That came after Nvidia closed 6.6% lower in New York on Wednesday, while AMD lost more than 10%.

In Europe, shares in ASML, which makes chip making machines, tumbled by almost 11%.

The falls came after Bloomberg News reported on Wednesday that the US government is preparing to impose its tightest curbs yet on semiconductor making equipment to China if firms like ASML and Tokyo Electron continue to give the country access to their advanced chip technology.

The US Commerce Department, ASML, and Tokyo Electron declined to comment when contacted by BBC News.

The Biden administration has previously taken steps to restrict China's access to advanced chip technology.

In October, it restricted exports to China of advanced semiconductors used in artificial intelligence (AI) technology.

The remarks on Taiwan by Mr Trump also hinted at possible disruption of global chip supplies.

Taiwan produces most of the world's advanced chips.

“Investors always react to any remarks from the US but despite these comments, the long term business trend for the semiconductor industry is clearly going up,” said Marco Mezger, Executive Vice President of memory chip technology company Neumonda.-BBC

Backlash after Pret changes coffee subscription deal

Pret A Manger customers have reacted with anger after the coffee and sandwich chain announced it would be changing its subscription offer.

Under the current system subscribers can order up to five coffees a day for a monthly fee of £30.

But from September, Pret said it will instead offer up to five half-price coffees a day for £10 a month and also end its 20% discount on food.

The move has led to a backlash from current subscribers on social media, but a retail expert backed the move, saying the old model "alienated" non-subscribers.

Pret said it had "never really got comfortable" with the dual pricing system across its food products as it announced it was scrapping the current offer.

The chain refused to disclose how many Club Pret customers it has.

But subscribers criticised the move on social media, with one calling it a "massive, monumental" error and others saying they would switch to rival coffee chains.

One customer called it an "own goal" and a "big big mistake".

Another added: "Will you be passing on the comments/feedback about this outrageous decision to Clare Clough who has just lost Pret millions of pounds every month with one email?"

"Sad day with subscription news, how exactly is the new offering simpler? It’s a no from me come September," said a third customer.

However, retail analyst Natalie Berg told the BBC that while Pret was "right" to target and reward its most loyal customers, the chain had "alienated everyone else" in the process.

"Consumers today want immediate value. They shouldn’t need a calculator to work out if they’re getting a good deal," she said.

Ms Berg said the original subscription service launched during the pandemic was "commendable", but asked: "How many people really drink five coffees a day?"

"The new subscription model reinforces a stronger value message which should help Pret appeal to a wider audience," she added, citing moves from competitors like Leon.

"Brands are moving away from overly complicated loyalty schemes in favour of simplified pricing and real-time rewards."

In a letter sent to customers, managing director Clare Clough said the introduction of the coffee subscription during the Covid pandemic had been an "innovative way" to maintain customers and attract new ones, but said it was now time for a rethink.

"Given the majority of our customers are not Club Pret subscribers, our priority now is to focus on better value for everyone," she added.-BBC

Pound hits highest level against dollar for a year

The pound hit its highest level against the dollar in a year on Wednesday as investors bet on UK interest rates staying higher for longer.

Fresh data on Wednesday showed the rate of inflation was proving more stubborn than expected by some analysts.

This prompted traders to cut bets on an easing of rates in August, and sent the pound above $1.30 for the first time since last July.

The pound has also been boosted by market hopes that the new Labour government will offer economic stability.

Higher rates in the UK increase the pound's value, because it can attract more overseas investment. This creates more demand for sterling, pushing up its value relative to other currencies.

Currency markets responded by betting that UK rates would remain higher for longer.

UK inflation was steady in June, with the headline rate at the Bank of England's target rate of 2%.

But some of the underlying measures of inflation being watched closely by Bank rate-setters remain stubbornly high.

Inflation in the services sector, for example, remained at 5.7% in June, while core inflation, which strips out the effects of more volatile items like energy prices, held at 3.5%.

Some central banks, including Switzerland, Sweden and Canada have cut rates already, but the Bank of England and the US Federal Reserve are yet to make the same move.

The International Monetary Fund raised its outlook for economic growth in the UK on Tuesday to 0.7% this year, from 0.5% in its last set of global forecasts in April.

But it warned the UK was "seeing some persistence” in inflation that might mean interest rates have to stay “higher for even longer”.

Kit Juckes, head of FX Strategy at Societe Generale, said he didn't think the rally on sterling would last.

However, he added that "there's so much uncertainty in the world", and there was stability with a new UK government helping the pound.

A hung parliament in France and upheaval in the US presidential race, with the attempted assassination of Republican candidate Donald Trump on Sunday, and doubts around the ability of President Joe Biden to serve another four years in office, have added to global market jitters.

On Wednesday, King Charles set out Prime Minister Keir Starmer's plans to revive the economy, with a focus on delivering new homes and infrastructure projects.

Emma Wall, head of investment analysis and research at Hargreaves Lansdown, said: “Inflation in at target – and marginally down if you care about decimal places – coupled with a King’s Speech rammed full of ambitious reforms and a high growth agenda has caused the pound to bounce."

She added that the key to sustaining the rally will be ongoing economic data, and the Bank of England’s decision on interest rates which is due on 1 August.-BBC

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