Major International Business Headlines Brief::: 29 July 2024
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Major International Business Headlines Brief::: 29 July 2024
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ü Niger: French Nuclear Giant Slips Into the Red Following Niger-French Breakup
ü Kenya: 9,121 Households to Receive Electricity in Phase 5 of Last Mile Project
ü Tanzania Sees Active Economic Surge
ü Nigeria: Resolving the Feud Between Dangote and Oil Sector Regulators
ü Uganda: After Completion of USMID, Govt Targets $750m Cities Project
ü Seychelles: Seagrass of Seychelles' EEZ Captures Nearly Same Amount of Co2 As Local Energy Emissions
ü South Africa: Churches Join Call for Basic Income Grant
ü Eswatini: Emaswati Applaud Government's Provision of Electricity, Though Reliability Issues Remain
ü Nigeria: Dangote Cement's Half-Year Profit Slightly Higher Despite Record Revenue
ü Nigeria's Economy On Path of Recovery, I'm Not Afraid of Protests - Tinubu
ü Kenya: Safaricom Shareholders Approve Sh26.04bn Final Dividend
ü Africa's Largest Rooftop Solar Plant Inaugurated in Tema
ü Africa: EBC Partners With Joe Dinapoli to Enhance CFD Trading
ü Italy PM Meloni vows to 'relaunch' ties with China
ü Venezuela's economy runs on oil - and music
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Niger: French Nuclear Giant Slips Into the Red Following Niger-French Breakup
French nuclear giant Orano ended the first half of the year with a loss of €133 million, weighed down by difficulties in its mining activities in Niger due to a "highly degraded" political context since a military regime came to power a year ago.
At the end of June 2024, the group noted "the deteriorated situation affecting mining operations in Niger," Orano's chief financial officer, David Claverie, said in a statement.
The coup d'état in Niger on 26 July last year led to a halt in imports of critical materials necessary for uranium exploitation in Orano's Somaïr mine, such as soda ash, carbonate, nitrates and sulphur.
And although uranium extraction continued in the first quarter of 2024 "after several months of early maintenance," Somaïr's sales were unable to resume "due to a lack of logistics solutions approved by the Niger authorities".
The blockage led the mine into "financial difficulty ... weighing on its ability to continue its operations", the statement read.
In late June, Niger decided to withdraw the licence of Imouraren SA, a company jointly operated by Orano, Niger Mining and Korea Electric Power, and which ran the Somaïr mine.
The situation could eventually lead to "insolvency in the short to medium term, in the coming months", Claverie said.
Niger's junta returns French-run uranium mine 'back to public domain'
Growing French reliance on nuclear
According to figures published by the French Ministry of Ecological Transition, 40 percent of France's energy consumption comes from nuclear, 28.1 percent from petrol, 15.8 percent from natural gas, and 12.9 percent from alternative sources such as wind and hydropower.
French electricity company EDF's figures show that nuclear generates 70.6 percent of the country's electricity supply, compared to hydropower on 11.2 percent, wind power 6.3 percent and solar 2.2 percent.
In February last year, French President Emmanuel Macron called for a "nuclear renaissance" in order to "move away from fossil fuel" via the construction of 14 new nuclear reactors.
The Russian invasion of Ukraine later that month encouraged countries to reduce their dependence on Russian gas imports and gave new impetus to developing the nuclear industry.
As a result, France's dependency on uranium is set to grow substantially in the coming years.
France's Macron calls for a nuclear power 'renaissance', building at least 6 reactors
Other sources of uranium
In order to counter the "loss" of Niger and its mining operations, Orano sought to reassure clients about supply security, which "remains ensured thanks to the diversity of its supply sources" in other regions.
According to an infograph by the company published in 2021, France has been gradually moving away from Niger's uranium.
Most of the "yellow cake" now comes from Kazakhstan (2,840 tonnes), with Niger's Somaïr (1,996 tonnes) a solid second until 2023. The Cigar lake mine in Canada also produces 1,788 tonnes.
Macron is shopping for uranium in Kazakhstan after the loss of Niger
More recently, France has been looking into possible cooperation with Mongolia as well.
Despite its troubles in Niger, the group confirmed its outlook for the end of the year, with stable revenues of around €4.8 billion and a pre-tax margin rate on revenue maintained between 22 percent and 24 percent.
Kenya: 9,121 Households to Receive Electricity in Phase 5 of Last Mile Project
Nairobi — The Last Mile Connectivity Project (LMCP) has been boosted with Sh1.85 billion grant from the Japan International Cooperation Agency (JICA).
According to Kenya Power, more than nine thousand households will be connected to the grid under Phase V of the project.
The households are located within four counties namely; Nakuru, Kilifi, Kwale and Nyandarua were JICA is financing other key energy projects.
"We expect to connect all the targeted households across the four counties by January 2025. The Company is committed to fast-tracking electricity connection across the country to achieve universal access to electricity. We thank JICA for the grant which will go a long way to enable these households to access electricity and transform their livelihoods," said Rosemary Oduor, Kenya Power's General Manager for Commercial Services and Sales.
The JICA grant comes two months after Kenya Power signed twenty-six contracts for the implementation of Phase IV of the Last Mile Connectivity Project.
The Sh27 billion project is funded by the French Development Agency (AFD), the European Union (EU) and the European Investment Bank (EIB). It will connect a total of 280,000 new customers to the grid by November 2025.
Funded to the tune of Sh73.1 billion to date, the Last Mile Connectivity Project is anchored on the Kenya National Electrification Strategy that was developed in 2015 to speed up electricity access for households and businesses in Kenya.
Kenya Power is the implementing agency of the project on behalf of the Government.
Since its inception in 2015, the Last Mile Connectivity Project has significantly contributed to the growth of the electricity access rate in the county which currently stands at 76% with 9.6 million households connected to the grid.
A total of 746,867 households have been connected to the grid under the first three phases of the Last Mile Project at a cost of Sh51.1 billion.
This success is primarily hinged on maximizing the efficiency of existing distribution transformers by connecting every household within 600m of the transformer as well as the installation of new transformers to serve households outside this radius.-Capital FM.
Tanzania Sees Active Economic Surge
TANZANIA: TANZANIA is experiencing a transformative economic surge, driven by new infrastructure projects and strategic investments that are positioning the country as a burgeoning hub for regional commerce and innovation.
The nation's economy has rebounded strongly, with a growth rate of 5.1 per cent in 2023, up from 4.7 per cent in 2022, according to the Minister of State in the President's Office for Planning and Investment, Professor Kitila Mkumbo.
Presenting the state of the economy in Parliament in June, Prof Mkumbo highlighted that the Gross Domestic Product (GDP) reached 148.39976tri/-, up from 141.24719tri/- in 2022.
He attributed the growth to various government initiatives, including measures to mitigate the economic impact of the Ukraine-Russia war, as well as significant investments in energy, water, health, education and transportation infrastructure.
Additionally, increased mineral production, particularly in gold and coal and a rise in private sector loans have also fuelled economic activities.
Despite this progress, the GDP growth rate of 5.1 per cent fell slightly short of the annual target of 5.2 per cent due to challenges such as rising production costs, climate change effects on agriculture and damage to infrastructure, including bridges and roads.
Furthermore, aggressive monetary policies by developed countries to combat inflation have led to higher borrowing costs from international financial markets, impacting production activities.
Looking ahead, Tanzania's economy is projected to grow by 5.6 per cent this year, with a long-term potential of around 6.0 per cent.
This optimistic outlook is supported by an improving business environment and ongoing structural reforms.
Enhanced investment in the agriculture sector, which employs three-quarters of the population, is expected to further reduce poverty in the medium term.
Tourism, now surpassing pre-pandemic levels, is another key driver of growth. According to Bank of Tanzania (BoT) data, tourism earnings reached 2.999 billion US dollars for the year ending July 2023, up from 1.95 billion US dollars in the same period of 2022.
ALSO READ: Tanzania's economy spurs Russian ties
Inflation remained stable at 3.10 per cent in June, supported by tight monetary policies and stable food and energy prices. However, the Tanzanian shilling depreciated by 8 per cent in 2023 due to foreign exchange shortages.
The fiscal deficit slightly decreased from 3.6 per cent of GDP in 2021/22 to 3.5 per cent in 2022/23, managed through expenditure controls and financed by both external and domestic borrowing.
Tanzania's recent economic growth aligns closely with the objectives outlined in the Third Five-Year Development Plan (FYDP III) and the ruling party's CCM 2020-2025 election manifesto.
The FYDP III, running from 2021 to 2026, aims to transform Tanzania into a middle-income country through strategic investments in infrastructure, industry and human capital.
Key projects under this plan include expanding the Standard Gauge Railway (SGR), modernising ports, airports, road networks and investing in energy and water infrastructure.
Similarly, the ruling party's election manifesto emphasises sustainable economic development through initiatives that support the Five-Year Plan's goals.
This includes prioritising economic growth, increasing agricultural productivity, advancing industrialisation and enhancing social services such as health and education.
Recent economic data, including the 5.1 per cent GDP growth in 2023, reflect progress towards these goals.
The growth results from strategic government investments, increased mineral production and a more active private sector, all in line with the FYDP III and the ruling party's vision.
Despite challenges like rising production costs and climate change, Tanzania's economic policies remain focused on achieving the targets set forth in the development plan and manifesto, aiming for sustained growth and development.
Transformative investments in infrastructure are driving Tanzania's economic growth.
Projects such as the standard gauge railway are expected to link neighbouring landlinked countries like Rwanda, Burundi and the Democratic Republic of Congo with the port of Dar es Salaam.
Additionally, several major infrastructure projects are underway these include Julius Nyerere Hydropower Project (JNHPP): Located along the Rufiji River.
This project is expected to generate 2,115 MW of electricity to address the energy deficit and support industrialisation efforts.
Financed domestically, the 2.9 billion US dollars project is in its final stages, with three turbines already generating 662 MW.
The other flagship project is the Kigongo-Busisi Bridge: Also known as the Mwanza Gulf Bridge, this 3.2-kilometre bridge, named after fifth phase President the late John Magufuli, is expected to be the longest bridge in Eastern and Central Africa and the sixth longest in Africa. It links Kigongo in Mwanza Region to Busisi in Geita Region, with an estimated cost of 716.3bn/-.
East African Crude Oil Pipeline Project (EACOP) is another notable project being implemented by the government.
A joint venture with Uganda, this project will transport oil from Uganda's Lake Albert oilfields to the port of Tanga in Tanzania, where it will be exported to global markets.
These investments are set to enhance trade, improve connectivity and boost business opportunities, further solidifying Tanzania's position as a key player in regional economic growth.-Daily News.
Nigeria: Resolving the Feud Between Dangote and Oil Sector Regulators
More than anything else, the altercations have inadvertently exposed why all the efforts to fix NNPC's four refineries always hit the rock.
For the past three weeks, the country has been roiled by a bitter row between the management of Dangote Refinery and oil sector regulatory authorities over the company's operational demands and standards. This altercation is needless in a polity where institutions dispassionately discharge their duties. The din arising thereof, is "shocking and creating bad waves for Nigeria globally," observed Mr Akinwunmi Adesina, president of the Africa Development Bank.
Earlier in July, officials of Dangote Refinery had accused international oil companies (IOCs) of denying the refinery purchase of crude oil, and that when they agree to sell, it is at a premium, which is $6 higher than the global market rate. Added is the continued issuance of licenses to petrol marketers to import the product - a move the company fears will hinder its operations. But in a counterclaim, the Chief Executive Officer of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said the Refinery's diesel that is already in the market is of an inferior quality compared to the imported ones.
Mr Ahmed was shy of saying the 650,000 barrel per day capacity refinery was presently operating illegally in the country. The regulator also accused the Dangote Refinery of monopolistic reflexes, with just a few weeks to unleashing its Premium Motor Spirit (PM) or petrol, in the market. In clear terms, the President of the Dangote Group, which owns the refinery, Aliko Dangote, expressed his concerns at the issuance of new fuel import licenses to market players when his refinery could actually meet local demand.
In the wake of all this has been a medley of responses from a broad spectrum of Nigerians. From the public gallery, many want the refinery saved from what is being perceived as official sabotage; given the importance of the refinery and its products to the country's economy. However, others insist on the sanctity of free market principles to forestall what could potentially result in market dominance or a monopoly. Having spent almost $20 billion to set up the refinery, it is no doubt within Dangote's rights to fight for its survival. No investor would have done otherwise, whether local or foreign.
Interestingly, the House of Representatives intervention in the broil seems to have revealed what could be considered an expression of bad faith against the refinery in the curious charges of the NMDPRA boss, Ahmed that the diesel it produces is of inferior quality compared to the imported variety, when there have been no clear or factual basis for this accusation.
This was evident in Dangote's swift response and challenge to the NMDPRA to disclose to Nigerians the laboratory where it conducted its tests and for two samples of diesel to be taken for newer testing to establish the truth. These challenges were not taken up by the regulator. However, at the behest of the visiting contingent of National Assembly lawmakers, these newer tests were eventually carried out, which revealed Mr Ahmed's claim to be sheer falsehood and an apparent de-marketing of the refinery for his own reasons. This reality should not be lost in debates, in order to properly situate the emergent snafu.
In Farouk Ahmed's claim, Dangote Refinery's diesel and others produced locally contain between 650 and 1200 parts per million (ppm) of sulphur, which makes the fuel toxic. But this turned out not to be the case. The tests showed that diesel produced by the Dangote Refinery actually has 87.6ppm of sulphur, whereas the imported ones have between 18,000 and 2000ppm of sulphur, thus making them highly toxic and really unfit for use. For this reason, the lawmakers demanded that the NMDPRA boss needed to be sacked. If the marketers of this product are the same breed of beneficiaries of the licenses issued to serve as the envisioned competition to Dangote refinery, then we say no to such arrangement.
It cannot be forgotten in a hurry how N1.7 trillion was lost to importers in the 2011 fuel scam, in connivance with some thieves in the bureaucracy. It is inconceivable, therefore, that this tainted template of fuel procurement is still preferred when a local alternative exists. And, it does not give any clean bill of health to the halved fuel subsidy programme of this government. A total of N5.4 trillion is earmarked for this in 2024. That Mr Ahmed rifled his unguarded salvo against this biggest Nigerian enterprise from the presidential villa, with the NNPCL boss, Mele Kyari, by his side, is tendentious, reckless and devoid of tact.
Competition, as we envisage it, should be home-driven. The Federal Government granted 25 licenses to investors for the setting up of refineries in 2016, but only Dangote took the bait. Now is the time for the country's three moribund refineries in Port Harcourt, Warri and Kaduna to be brought back fully on stream if the government's charges of seeking to prevent a monopoly are to be taken seriously. They have guzzled N12 trillion in dubious turn around maintenances since 2010. Ironically, the outcome of the Senate investigation into the scam in 2023 did not see the light of the day.
Consequently, in the face of these glaring facts, the NMDPRA helmsman has been disingenuous with his allegations. However, if the refinery emerges as some have labelled it, then it is because the government has made it so. In other jurisdictions, governments fight such monstrosity with stringent and well implemented laws. In Nigeria, The Federal Complaints and Consumer Protection Act fits this bill in this regard. If the law is observed in the breach, the agency in charge of the enforcement of its provisions should be held responsible.
Without a doubt, Nigeria is washing its dirty linen not just in the local public space, but in the international arena, with its inability to provide crude to the Dangote Refinery, thereby forcing it to seek recourse to Texas, US and Brazil for procurement to meet its production needs. This is after about four decades in which it had been the butt of jokes for being the only OPEC-member that imports its petroleum products.
There is the logic that NNPCL is hamstrung in meeting its earlier supply obligation to the refinery because of its several Special Purchase Agreements (SPA), and the repayment requirements in crude oil to AfriEximBank for the $3.3 billion facility it procured, among others. Yet, the Dangote, Watersmith, Aradel and other modular refineries have legitimate refuge in the Petroleum Industry Act, especially its Section 109 (2), which stipulates compliance with the Domestic Crude Oil Supply Obligation to local refineries.
Nigeria has no excuse to default in either commitment. Its crude oil production has vacillated between 1.2 million and 1.5 million barrels per day since President Bola Tinubu assumed office last year; below its OPEC production quota. It is an incongruity sustained by official corruption and massive oil theft. Sanity can only prevail with the reversal of this state of affair.
It is hard to believe that the same government agencies that embraced the Dangote Refinery with a lot of enthusiasm in 2021, as consummated in the purported 20 per cent equity stake in the refinery in 2021, upon satisfaction that it would save Nigeria 30 per cent of its annual forex expenditure on fuel importation, have turned around to vilify it. A subversion of this gain, therefore, by any act of omission or commission, will not be in the best interest of the country. The cost of fuel importation exerts pressure on the naira and the economy and Nigerians are the worse for it.
Sadly, the Ministry of Petroleum shut the stable door after the horse had bolted when its Minister of State, Heineken Lokpobiri, hosted a recent meeting with the Chief Executives of NMDPRA, Nigeria Upstream Petroleum Regulatory Commission's (NUPRC), NNPCL and the Dangote Group, in a seemingly fence-mending mission. How redemptive that meeting was, with Dangote's fresh salvo shortly afterward, is anybody's guess. Some unnamed public sector oil operators, he alleged, have a blending plant in Malta. This is a grave allegation, which the EFCC should compel him to provide evidence for action to be taken on, if true. Dangote has also offered his stake in the refinery to government as a buyout, to end the controversy.
With the President as the substantive oil minister, he cannot continue to remain insular on this matter. The fact that he travelled around the globe recently, lobbying investors with assurances of a ready friendly investment climate, makes his open intervention in this matter all the more urgent.
Undoubtedly, what the Dangote Refinery would contribute to the economy is huge. This could be seen in its impact in making Jet A1 and diesel available and crashing their prices. A litre of diesel which sold for N1,900 last year was reduced to about N1,000 early this year. It has now stabilised at about N1,200 per litre.
More than anything else, the altercations have inadvertently exposed why all the efforts to fix its refineries always hit the rock. A former Minister of State for Petroleum, Ibe Kachikwu, was so impulsive about the successful turnaround maintenance (TAM) of the refineries that he swore to resign if that was not achieved. But painfully, he later realised that the task was like digging a sinking hole: "It got to a point where I started wondering whether as we repair this, somebody was going out there to destroy so that contracting will be done."
Apparently, some elements who reap from the status quo want it to continue - of a major OPEC member-nation embarrassingly importing refined petroleum products it could produce at home. Dangote's refinery will buck the trend with all hands on deck. Besides, 33,000 personnel are already in its employ even as it is yet to become fully operational, a great percentage of who are Nigerians. Its projected annual revenue of $21 billion in terms of forex earnings is massive. This is in addition to its production of "raw materials for a wide range of manufacturers in the plastic, pharmaceuticals, food and beverages, construction."
President Tinubu should, therefore, see the bigger picture and arrest this ugly drift, given its likely effect as a red flag to foreign direct investments. Some, in situ, already are divesting.-Premium Times.
Uganda: After Completion of USMID, Govt Targets $750m Cities Project
As the Uganda Support to Municipal Infrastructure Development (USMID) program comes to a close this month after more than ten years, government is already looking to the future to consolidate the initiative's successes in improving the standards of living in urban areas, capacitating local governments and supporting refugee-hosting communities, writes GEOFREY SERUGO.
Launched in 2013, USMID set out to support Uganda's goal of attaining sustainable urbanization in line with successive National Development Plans. To do so, the program targeted 14 municipalities and 11 Refugee Hosting Districts (RHDs) outside Kampala for the construction of urban street infrastructure.
The World Bank pledged $160 million to the initiative, also offering technical support to strengthen local and national authorities' management of urban areas. In 2019, the World Bank committed a further $360 million to expand on the program and launch USMID Additional Financing (USMID- AF).
According to Isaac Mutenyo, the national coordinator for the USMID programme, it has doubled down support on municipalities already earmarked for the project while adding another eight to the list, ensuring all four of Uganda's regions were well-covered.
"From Arua spanning across to Kabale in the far west, to Busia in the far east, Ugandans have felt the benefits of the program," he says.
"A 2021 government-commissioned survey placed community satisfaction at 94 per cent. This comes as no surprise, with over 215km of all-weather roads constructed, 1,800 street lights erected, and over 40km of cycling, bus, and parking infrastructure installed."
He adds that with the community in mind, all projects have adhered to enhanced local environmental laws and received Environment and Social Impact Assessment accreditation.
"Despite the government making use of international contractors such as Ditaco or Al Nuaimi, opportunity was also provided for more than 15 local champions - including regional leader Dott Services Limited - to step up. For instance, Dott Services enhanced widened road coverage with improved drainage and solar street lighting in at least four USMID target areas," he says.
"Through ministerial Capacity Building Grants, Municipal Institutional Strengthening Grants, and technical assistance, USMID-AF aims to ensure these gains are here to stay."
With this backing, the ministry of Lands, Housing and Urban Development has stepped up its planning and management of urban areas. Obiga Kania, the state minister for Urban Development, said recently that government has developed a new Urban Development Bill, National Slum Upgrading Strategy and National Integrated Urban Transportation Strategy.
He expressed satisfaction that local governments have improved their execution of civil works, local revenue collection and public procurement procedures, among other areas of governance. In April, 2024, World Bank officials conducted a study of the program's success and the government is expected to submit its own assessment of the program in the coming months.
Yet as this stock-taking exercise gets underway, The Observer understands that program officials and the administration are already planning for USMID-AF's successor following its expiry on June 30. Conversations are all the more ambitious, with the government announcing its Uganda Cities and Municipalities Infrastructure Development (UCMID) program last year.
Aiming to complement the Urban Development Program for the Greater Kampala Metropolitan Area program, UCMID will expand to an additional 15 municipal governments in addition to those already targeted. The program promises further boosts for urban service delivery to the benefit of urban residents and economies.
According to Mutenyo, local contractors who have proven themselves throughout USMID-AF will again step up to support their country's development. The authorities plan to implement the project over the next five years to 2029 and are courting the World Bank as well as other development financiers to raise $750 million.-Observer.
Seychelles: Seagrass of Seychelles' EEZ Captures Nearly Same Amount of Co2 As Local Energy Emissions
Results from an extensive seagrass distribution assessment undertaken within Seychelles' Exclusive Economic Zone (EEZ) by researchers indicate that these seagrass ecosystems are storing carbon dioxide (CO2) at a rate of 510,000 tonnes of CO2 equivalent per year.
According to a joint press release from the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT) and the Ministry of Agriculture, Environment and Climate Change, this is nearly the same as the annual emissions from the local energy sector and almost three times the emissions from the transport sector.
Dr Gwilym Rowlands, an Earth Observation Scientist at Oxford, led the research in partnership with several local and international organisations and the German Aerospace Agency (DLR).
Using satellite imagery and meticulous ground surveys, the research team mapped 1,599 square kilometres of seagrass across the EEZ of 1.4 million square kilometres. The vast area, equivalent to 29,000 football fields, was identified as a significant resource capable of storing 18.9 million tonnes of organic carbon, amounting to 69 million tonnes of CO2.
The research project, titled "Seychelles Seagrass Mapping and Carbon Assessment Project", was initiated in 2020. It aligns with the government's commitment to safeguard 50 percent of its blue carbon ecosystems, including mangroves and seagrass meadows, by 2025 and achieve 100 percent protection by 2030.
Seychelles, an archipelago in the western Indian Ocean, made a commitment at the 27th Conference of the Parties (COP27) in Sharm El-Sheikh, Egypt, to move to 100 percent protection of all its mangroves and seagrass meadows.
The commitment was made as a Nationally Determined Contribution (NDC) under the Paris Agreement with the goal of including these seagrass ecosystems within the Seychelles' National Green House Gas Inventory (NGGI).
In supporting the country's target, the project was designed to identify the distribution and extent of seagrass habitats in Seychelles' EEZ and this would then allow the quantification of the amount and rate at which these habitats store carbon.
According to the press release, "Further findings indicated that most seagrass habitats in Seychelles waters are around the Mahe Plateau Rim and the Amirantes Bank, with these areas inhabiting 32.9 percent and 30.3 percent of Seychelles seagrass, respectively."
While looking at the distribution of seagrass within the Seychelles Marine Spatial Plan (SMSP), the researchers were able to identify that 99.5 percent of Seychelles seagrass habitats are luckily found within High Biodiversity Zones and Medium Biodiversity and Sustainable Use Zones as well as pre-SMSP protected areas.
They however raised the concern that the most diverse seagrass meadows around Praslin and the Au Cap region, where at least seven species have been recorded, are located unfortunately within multiple-use zones. This, therefore, does not occur within an existing protected area.
The extensive study, which included the work of 50 predominantly Seychellois researchers and spanned over 20 institutions, has now quantified the importance of seagrass as a blue carbon ecosystem for Seychelles. It, therefore, provides the robust science needed to inform policy decisions regarding seagrass protection in Seychelles.-Seychelles News Agency.
South Africa: Churches Join Call for Basic Income Grant
Providing a guaranteed minimum level of income frees people from vicious cycle of poverty, says Archbishop Thabo Makgoba
Churches across South Africa are joining civil society's call for the implementation of a universal basic income grant (UBIG).
On Thursday clergy members, including Archbishop Thabo Makgoba, signed a pledge supporting the call for a UBIG.
Members of the World Communion of Reformed Churches (WCRC) launched the Global Reformed Platforms of Engagement (GRAPE) programme, which will advocate for "inclusive economic and social transformation".
Hundreds of churches have joined civil society's call for the Social Relief of Distress (SRD) grant to be made permanent and become a universal basic income grant (UBIG).
Currently between 7.5 and 8.5-million unemployed adults depend on the R370-a-month SRD grant. This grant is paid directly into a bank account each month. However, there is a monthly check on these accounts to ensure that no other income is being received. Activists have complained that this has allowed SASSA to exclude millions of people who are in fact eligible for the grant.
On Thursday churches part of the World Communion of Reformed Churches (WCRC) pledged to urge the government to implement a UBIG. At an event hosted in Woodstock, Cape Town, the group also launched the Global Reformed Platforms of Engagement (GRAPE) programme, which advocates for "inclusive economic and social transformation".
During the event clergy members representing dozens of umbrella bodies of churches across South Africa signed the pledge supporting a universal basic income grant. These include the Uniting Reformed Church in Southern Africa, Uniting Presbyterian Church in Southern Africa, Calvin Protestant Church, United Congregational Church of Southern Africa, Volkskerk, the Presbyterian Church of Africa, and Dutch Reformed Church.
The proposed basic income grant would be a cash transfer from the government to citizens aged 18 to 59. While the South African government has expressed support for this, there has been some pushback from big business and the Treasury.
The GRAPE platform aims to mobilise churches and their congregants' support on social justice issues to address poverty, reduce inequality, and improve education, health, and nutrition. GRAPE is already active in Kenya, advocating for access to clean and safe water.
Reverend Dr Bukelwa Hans, of the GRAPE programme, said, "We consulted with church leaders about joining the universal basic income coalition. That included online workshops, developing activities, consulting with other church leaders, developing more material and then launched today."
Highlighting the challenges of poverty, inequality and unemployment, Hans said that the UBIG should be offered to individuals instead of a household, and without stringent conditions.
Hans said some of the church leaders visited Otjivero in Namibia where a basic income grant has already been piloted, to assess its impact. "People opened up small businesses and it improved their standard of living," she said.
Hans criticised the Social Relief of Distress grant for being insufficient to cater to people's needs. "The church must make a noise when the government isn't doing the right thing," she said.
Hans believes the UBIG should at a minimum be R760 per month and then be increased over time.
She said there are many "misconceptions" that the UBIG is unaffordable and will cause beneficiaries to become dependent on the state. "The role of the church will be to clear up these misconceptions. Not everyone is going to use that money to go to the nearest store to buy alcohol. The grant is for local economic development, redistribution of wealth so that people can get their dignity back. This grant will free them from the traps of poverty," said Hans.
Archbishop Thabo Makgoba, the South African Anglican Archbishop of Cape Town, added that a basic income support grant was crucial to advance economic justice. "Providing a guaranteed minimum level of income frees people from the vicious cycle of poverty. It must be a prerequisite for our country to achieve inclusive economic development," said Makgoba.
Dr Kelle Howson, senior researcher at the Institute for Economic Justice said the organisation has been keeping track of which political parties had pledged to introduce a BIG during their election campaign.
"We found the majority of those parties in the GNU (government of national unity), committed in their campaigns to either expand social protection or introduce a UBIG," said Howson.
Our task is to hold them accountable, said Howson.
Nioma Venter representing the Dutch Reformed Church in South Africa said the increase in floods, fires and damaging storms hit vulnerable communities the hardest. "The UBIG can provide a safety net for those whose lives and jobs are affected by these environmental changes."-GroundUp.
Eswatini: Emaswati Applaud Government's Provision of Electricity, Though Reliability Issues Remain
More than nine in 10 citizens (92%) live in households that are connected to the national power grid. o Of those who are connected to the grid, about two-thirds (65%) say their electricity works "most" or "all" of the time. o Combining connection and reliability rates shows that about six in 10 (59%) of all Emaswati enjoy a reliable supply of electricity, though these figures are lower among rural residents (57%) and citizens experiencing high levels of lived poverty (45%).
Electricity ranks far down the list of most important problems that Emaswati want their government to address, cited by only 1% of respondents as a top priority.
More than six in 10 citizens (63%) say the government is doing a "fairly" or "very" good job of providing a reliable supply of electricity.
With an overall electrification rate of 85% (UNDP Eswatini, 2024), Eswatini boasts one of the highest rates of electricity access in sub-Saharan Africa, second in Southern Africa behind South Africa (Nzima, 2021).
Imports make up a large share of electricity consumed in the country (Government of Eswatini, 2018a; ISS African Futures, 2023). Conservative estimates suggest that Eswatini imports about 60%-80% of its energy supply from South Africa's Eskom and Mozambique's Electricidade de Moçambique (African Development Bank, 2021; Club of Mozambique, 2022; Government of Eswatini, 2023), while other approximations place imports from South Africa alone at up to 90% (World Bank, 2024). This makes energy security a significant concern for the country, especially as the current iteration of the import agreement with South Africa's embattled power utility is set to expire next year (Pachymuthu, 2022). In 2022, electricity was the third-most imported product in Eswatini (OEC World, 2024).
To address its over-reliance on imports and ensure a more sustainable energy future, the government of Eswatini has committed to accelerate renewable energy generation (United Nations, 2019). According to the country's Energy Masterplan 2034, Eswatini aims to have a 50% share of renewable energy in the national energy mix by 2030, to be met primarily through the adoption of biomass, hydro, solar, and wind energy technologies (Government of Eswatini, 2018b; UNDP Eswatini, 2021). Embracing the transition toward cleaner sources of energy also promises to contribute to limiting climate change, which is an important item on the government's to-do list (UNDP Eswatini, 2023).
Eswatini's Independent Power Producer Policy, adopted in 2016, aims for greater private sector participation in the electricity sector (USAID Southern Africa Trade Hub, 2016). Speaking at the 2024 Standard Bank Eswatini Energy Indaba, Eswatini Electricity Co. Managing Director Ernest Mkhonta indicated that the national power utility is eager to collaborate with independent power producers to increase domestic power generation, including by bringing them online to the national electricity grid (Sikhondze, 2024).
A recent Afrobarometer survey provides an on-the-ground look at electricity access in Eswatini. Findings show that while the country enjoys almost total grid coverage, only about six in 10 citizens enjoy a reliable supply of electricity, including fewer than half of the poor.
Even so, electricity ranks far down the list of problems that Emaswati want their government to address, and most citizens applaud the government's performance in providing a reliable electricity supply.- Afrobarometer.
Nigeria: Dangote Cement's Half-Year Profit Slightly Higher Despite Record Revenue
Worth N5.4 trillion in total assets, the cement maker opened trade on Friday in Lagos at a market capitalisation of N11.2 trillion.
Nigeria's biggest company by market value, Dangote Cement, attained only a single-digit rise in net profit for the year's first half, a performance at variance with that of its turnover, which accelerated by as much as 85.1 per cent to the peak point ever since it was set up.
The corporation's revenue of N1.8 trillion in the six-month period already surpasses that of the whole of 2022 and is only a breath away from matching its turnover for last year.
Sales volume inched up by 3.9 per cent, suggesting that the mega revenue posted by the manufacturer was driven by sharply higher prices at which it sold its products rather than by it growing its sales significantly.
Dangote Cement cashed in on hikes in cement prices in Nigeria early in the year, helping the company to sell a tonne of clinker at an average price of N127,614, compared to N71,766 a year earlier, according to figures from its latest earnings report.
Scaling up profit was clearly challenging for the cement business of Africa's richest man, Aliko Dangote, in the six months to June, with the direct cost of production more than doubling.
Fuel and power alone accounted for nearly half of direct costs, having surged by 138.7 per cent year on year.
Investment Corporation of Dubai, the chief investment arm of the Government of Dubai, holds a 1.5 per cent minority interest in the entity.
Price levels, which galloped to their highest in 28 years within the review period, also took their toll on operations, causing big jumps in administrative expenses as well as selling and distribution costs.
The corporation incurred N201.3 billion in net foreign exchange loss, relative to N113.3 billion in the same period of last year.
Profit before tax stood at N293 billion, up by 22.1 per cent, while post-tax profit climbed to N189.9 billion from N178.6 billion.
Worth N5.4 trillion in total assets, the cement maker opened trade on Friday in Lagos at a market capitalisation of N11.2 trillion.-Premium Times.
Nigeria's Economy On Path of Recovery, I'm Not Afraid of Protests - Tinubu
President Tinubu said his administration will do more to meet the needs of Nigerians.
President Bola Tinubu says the nation's economy is on a gradual but steady path of recovery and assures citizens that his administration will do more to meet their needs.
In a meeting with traditional rulers led by the Sultan of Sokoto, His Eminence, Sa'ad Abubakar, and the Ooni of Ife, Adeyeye Enitan Ogunwusi, at the State House on Thursday, the president said the plight of citizens remains a deep concern, and will receive more attention.
"Yes, it is true that I asked for this job, and I approached some of you to support me. So, I have no excuse not to do the job with sincerity of purpose and honesty. I have committed myself to it diligently, and I will never look backwards.
"I have accepted the assets and the liabilities of my predecessor. How I will take Nigeria forward should be my concern, and that is my concern.
"I have been extremely busy. The only exercise I have had here is the walk from the residence to this place and then continue with the work.
"Nigeria is hilly, and it is the largest democracy in Africa. No other democracy comes close to us in terms of population on the continent. We cannot blame God for giving us these children, and we have to seek peace and better livelihoods," the president said.
President Tinubu stated that the interventions to bring the government nearer to the people are already yielding results, with the activation of the student loan programme, the consumer credit scheme, and the affirmation of fiscal autonomy for local government councils.
He said the ministry of finance will continue to ensure that funds go to the grassroots for human and infrastructural development.
"Today, the Bank of Agriculture is empty. We have to reactivate it. If they are not talking about flooding, they are talking of banditry. We have to start all over again. Yes, infrastructural decay is there.
"The Lagos-Calabar coastal road is not being done without studies. It is an economic energiser. From it, we can create infrastructure along the route to develop wind energy and generate power, and we can expand our irrigation network.
"The economic viability of infrastructure has to be studied before we embark on projects. How many dams are there on the corridors of Sokoto- Badagry? From there, we can energise electricity. We can do irrigation and additional farms.
"Even if it is two million hectares of arable land, you can create opportunities for farmers on a small scale. Then you have to find capital for them.
"Nigeria is on the path of recovery. You have heard it from the Minister of Finance, Mr. Wale Edun. We are not afraid of protests. Our concern is the ordinary people, and the damages that will be done. Till today, I cannot forget the brand new 60 and 100 seater buses, down there in Lagos that were burnt down, and we are now complaining of transportation. That is the problem. That is why I must say thank you for talking to the citizens," the president told the traditional rulers.
The president also said security was getting more attention and will be enhanced.
"Security is getting better, but we cannot take our eyes off the camera because it takes one accident for things to flare up. We are managing it.
"We have created instruments to support the students so that they get education, consumer credit to expand the economy, to improve the purchasing power of the people in order to rejuvenate the economy within a short period of time. We are still recalibrating our oil usage," the president stated.
President Tinubu said he will continue to explain the economic reforms and projected benefits to the nation, adding that he remains open to dialogue for the development of the country.
He urged the royal fathers to reach out to citizens on the genuine intentions of the government to deliver on its promises of Renewed Hope.
"Now, we are sending money to the local governments. I addressed the governors today on that issue. I have been distributing fertiliser, rice, and other items to support the recovery of citizens. I assure you, Nigerians, we are looking at the light at the end of the tunnel. I can assure you, this economy will be revived, will survive, and prosper," the president emphasised.
In his remarks, the Sultan of Sokoto said: "I believe that this brief meeting will clear some issues that many people have in their minds. At our meeting on Monday, we had a very open discussion on all issues affecting the nation. We are the ones who will tell you the truth about what is happening in our various communities."
The royal father said an executive council meeting was held on Monday, and the Council, composed of all state chairmen of the 36 States and the FCT, met to deliberate on the economy.
The Ooni of Ife thanked the president for inviting the National Security Adviser, Nuhu Ribadu; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Budget and Economic Planning, Atiku Bagudu, and the GCEO of NNPCL, Mele Kyari, to brief the traditional rulers on the state of the economy.
"We heard from the GCEO of NNPCL. They are the ones that propel our economy. We have heard from the Minister of Finance. We also heard from the Minister of Budget and the NSA. We want to encourage you, Mr. President, we will all get back to our various communities and let our people know because none of us locks our palaces," the monarch added.-Premium Times.
Kenya: Safaricom Shareholders Approve Sh26.04bn Final Dividend
Nairobi — Safaricom shareholders have approved a Sh0.65 dividend per share, amounting to Sh26.04 billion for the financial year ended March 31, 2024.
This follows an interim dividend of Sh0.55 per share, totalling Sh22.04 billion, paid in March 2024.
The company's total dividend payout for the year now stands at Sh1.2 per share, representing a cumulative Sh48.08 billion.
"In the financial year under review, the business displayed significant resilience in producing outstanding growth in both our top and bottom lines. This enabled us to achieve a major milestone, attaining, in our Kenyan business alone, earnings of more than USD1 billion before tax and interest," he said.
Despite the firm's strong financial performance, Safaricom says that the year was marked by a challenging economic environment in both Kenya and Ethiopia on account of high interest rates, inflation, and currency fluctuations, impacting disposable income and business operations.
The Telco however exuded confidence, underscoring its commitment to delivering value for shareholders through strategic investments and robust strategy execution.
The company anticipates breaking even in Ethiopia by the end of its fourth year of operations.-Capital FM.
Africa's Largest Rooftop Solar Plant Inaugurated in Tema
Ghana's desire to fast-track its renewable energy rate had a major boost when a 16.82 megawatts rooftop photo voltaic solar plant was inaugurated in Tema yesterday.
Owned by LMI Holding Company Limited, it is the largest single roof top solar plant in Africa and constructed at the cost of $17 million.
Solar power generated would be distributed to its clients within the Tema Free Zone Enclave (TFZE) industrial zone.
Also known as the Mega Warehouse Rooftop Solar PV Project, it would become a beacon of sustainable renewable power progress in the country.
The project spans 95.745 square metre (20 football fields) and forecasted to generate 24.7 Gwh per year in clean energy output.
Financed by the International Finance Corporation (IFC), the project would play a pivoted role towards renewable energy in the country's industrial landscape.
Commissioning the project, Minister of State for Energy, Mr Herbert Krapah commended LMI Holding for their feat and for establishing it at the doorsteps of TFZE.
He said the project was aligned with the government's energy objectives aimed at enhancing energy security industrial clients.
It would also provide access to clean reliable and cost efficient sources of power via solar energy, he added.
He lauded the IFC for funding the project and other LMI ones and appealed to the corporation to do same to other private companies in the solar energy sector.
According to Mr Krapah the project would not only provide employment but also empower young people through skills training.
The Managing Director of LMI Holdings, Mr Adiai Opoku-Boamah, stressed that the workforce has been entirely Ghanaian engineers and technicians which demonstrate local capacity in producing high quality work.
He stated that businesses operating within the Free Zones Enclave in Tema who would benefit from power generated from the plant would boast their green credentials on the world stage and enhance the competitiveness of their products, particularly those exported worldwide.
Mr Opoku-Boamah said although LMI Holdings was proud of its achievements, it was only a first step into the renewable energy generation space.
He announced that the company targets generating up to 1000 megawatts of renewable energy by the year 2030.
To this end, LMI Holdings had secured a 2,300 acre land bank at Dawa near Ada in the Greater Accra Region to be developed into a solar park.
He said over the next six years, the company intends to invest over USD 1 Billion into the local economy in expanding renewable energy programme.
"I am happy to announce that the IFC approved in December 2023 a USD 110 million facility for LMI Holdings to develop an additional 150 megawatts of solar energy in Dawa. Work has already begun in earnest," he said.-Ghanaian Times.
Africa: EBC Partners With Joe Dinapoli to Enhance CFD Trading
EBC Financial Group (EBC) recently hosted an event titled "Revolutionising CFD Trading with DiNapoli's Leading Indicators," where they announced a new partnership with renowned trader and author Joe DiNapoli.
The event, held in Bangkok, was attended by industry experts, and business leaders, and focused on the integration of DiNapoli's trading techniques into EBC's platform, aiming to enhance trading strategies for clients.
The event highlighted the integration of DiNapoli's trading approach into EBC's CFD trading platform. EBC, known for its rapid order execution and institutional-grade liquidity, holds regulatory licenses in the UK, Australia, and the Cayman Islands.
The partnership aims to enhance trading strategies with advanced tools and insights.
David Barrett, CEO of EBC's UK and Cayman entities, discussed the evolving regulatory landscape for financial brokerages. He noted a global shift towards higher compliance standards, improving the robustness of regulatory frameworks.
Joe DiNapoli, author of "Trading with DiNapoli Levels," shared insights from his 56-year trading career, highlighting the importance of predictive indicators in forecasting market movements.
DiNapoli's work includes tools like the MACD predictor and the Detrended Oscillator Predictor (DOP), which help traders identify overbought and oversold conditions.
Lawrence Smart, a trading educator, demonstrated the application of DiNapoli Levels in trading, highlighting their role in reducing risk and improving trade precision.
Pieter van Wyk, a hedge fund manager, analysed Japan's currency management strategies, focusing on the impact of the carry trade on the Yen.
Monchai Kongthanapakdi, a trading expert, discussed the mindset and techniques that distinguish successful traders.
EBC continues to provide advanced trading tools and support to its global clientele, reinforcing its commitment to empowering traders with innovative solutions.-Business Day Africa.
Italy PM Meloni vows to 'relaunch' ties with China
Italy's prime minister Giorgia Meloni has vowed to "relaunch" relations with China as she began her first visit to Beijing since taking office.
Ms Meloni met Chinese Premier Li Qiang at the beginning of her five-day trip and signed a three-year plan to strengthen economic cooperation between the two nations.
It comes after Ms Meloni last year removed her country from President Xi Jinping's signature Belt and Road Initiative (BRI).
At the time, Rome said the massive Chinese investment scheme had failed to bring any benefits to Italy.
Ms Meloni described her trip as a "demonstration of the will to begin a new phase, to relaunch our bilateral cooperation".
She also said the two countries have signed an agreement that aims to boost cooperation on electric vehicles and renewable energy.
In a statement released by his office, Premier Li said the two countries aim to increase "mutually beneficial cooperation between small and medium-sized enterprises in the fields of shipbuilding, aerospace, new energy, artificial intelligence."
Italy was the only major Western nation to sign up to the BRI, one of China's most ambitious trade and infrastructure projects.
The move was heavily criticised at the time by the US and some other major Western countries.
Since coming to office in 2022, Ms Meloni has sought to lead a more pro-Western and pro-Nato foreign policy than her predecessors.
Before withdrawing from the BRI, Ms Meloni had described the former government's decision to join it as "a serious mistake".
"Every country which is a [BRI] member knows that China is first and they are second and I don't think Italy as a G7 member wanted to be grouped together with Russia, Pakistan or Sri Lanka," said Alicia Garcia-Herrero, chief economist for the Asia Pacific region at investment bank Natixis.
"Without BRI [membership] Meloni is coming to China at a different level of engagement - less as a vassal and more as a partner," she added.
Under Ms Meloni, Italy has moved to block a Chinese state-owned company from taking control of tyre making giant Pirelli.
Rome has also supported a recent move by the European Commission to impose tariffs of as much as 37.6% on electric vehicles imported from China.
Two-way trade between two countries reached 66.8 billion euros (£56.3bn) last year, making China Italy's largest non-EU trading partner after the US.-BBC
Venezuela's economy runs on oil - and music
Venezuela's battered economy is one of the key battlegrounds in Sunday's presidential election, with President Nicolás Maduro hoping to convince voters that the country has turned the corner after years of strife.
Thanks to his recent efforts to push down the cost of living, the outlook is slightly rosier. In February, Venezuela finally said goodbye to the rampant hyperinflation that had seen price rises peak at more than 400,000% a year in 2019.
Now annual inflation is more manageable, but still high at about 50%.
Mr Maduro has been keen to take credit for the fall, saying it shows that he has "the correct policies".
Unfortunately, however, those policies have done little or nothing to tackle the economy's underlying structural problems - chiefly, its historic dependence on oil, to the detriment of other sectors.
"Since it was discovered in the country in the 1920s, oil has taken Venezuela on an exhilarating but dangerous boom-and-bust ride," as the US Council on Foreign Relations think tank puts it.
Now opponents of President Maduro are pinning their hopes of economic revival on a change of leader, and a new beginning under his electoral rival, Edmundo González.
"An opposition victory would lead to a renewed opening of Venezuela’s trade and financial ties with the rest of the world," says Jason Tuvey, deputy chief emerging markets economist at Capital Economics.
That would also mean the end of US economic sanctions imposed after Mr Maduro's victory in the 2018 presidential election, which was widely dismissed as neither free nor fair.
These have made it difficult for state-run oil company PDVSA to sell its crude oil internationally, forcing it to resort to black market deals at big discounts.
But Mr Tuvey cautions that reversing the economic collapse of the past decade will be a tall order, given the enormous investment needed to raise oil production and with peak oil demand approaching.
"Venezuela's economy can never get back to where it was 15 to 20 years ago," he tells the BBC. "It will be starting by and large from square one."
AFP A man looks at food prices outside a Caracas supermarket, 8 May 2024AFP
Prices are still going up in Venezuela, but hyperinflation is dead
Venezuela's 25-year-old Bolivarian Revolution - the name that the late President Hugo Chávez gave to his political movement - promised many things, but has failed to deliver what the country arguably most needed: a broad-based economy.
Instead of diversifying away from the oil industry, the governments of Chávez and Mr Maduro doubled down on Venezuela's mineral wealth.
Paying little heed to the future, they treated PDVSA as a cash cow, milking its funds to finance social spending on housing, healthcare and transport.
But at the same time, they neglected to invest in maintaining the level of oil production, which has plummeted in recent years - partly, but not solely, as a result of US sanctions.
These problems were already evident when President Chávez died in 2013, but have grown worse on his successor's watch.
"Under Chávez, Venezuela was able to ride on the coat-tails of an oil boom, up until the global financial crisis," Mr Tuvey says.
"Fifteen to 20 years ago, Venezuela was a major oil producer. It used to produce three-and-a-half million barrels a day, along the lines of some of the smaller Gulf states.
"Now the oil sector has been completely hollowed out, and it produces less than a million barrels a day."
GDP declined rapidly, down by 70% since 2013. But Mr Maduro resorted to compensating for lower oil prices by printing money to fund spending, resulting in the runaway inflation which the country has only recently curbed.
Economic hardship has taken its toll on the Venezuelan population, with more than 7.7 million people fleeing in search of a better life - about a quarter of the population.
But for those left behind, there have been signs of improvement. While the bolívar is still the official currency, an informal dollarisation has taken place, with US greenbacks increasingly the payment method of choice in retail transactions - at least, for those who have access to them.
That has stabilised the economy - but it has brought with it a social cost.
Getty Images Karol GGetty Images
Karol G's two concerts in Venezuela attracted an affluent crowd
Residents in the capital, Caracas, now find themselves subject to a two-tier economy. While US dollars are fuelling a consumption boom in high-end shops and restaurants, those paid in bolívars feel increasingly excluded.
One symbolic event that highlighted these changes was Colombian reggaeton superstar Karol G's recent appearance in Caracas as part of her current world tour.
Few major artists perform in Venezuela these days, but she had no trouble selling out two nights in March at the 50,000-capacity Estadio Monumental, despite ticket prices ranging from $30 to $500 (£23 to £390).
At the same time, according to Caracas-based consultancy Ecoanalítica, about 65% of Venezuelans earn less than $100 a month, while only eight or nine million of the country's 28 million people can be seen as consumers with actual purchasing power.
"Those with a very close connection to the regime or to PDVSA have been barely affected by all this," says Mr Tuvey.
AFP Venezuela bolívar banknotesAFP
A fistful of bolívars will not get you as far as a fistful of dollars
As well as the need to raise living standards and reduce inequality, another big economic challenge for Venezuela is what to do about its massive foreign debt.
The country owes an estimated $150bn to bondholders and other foreign creditors. It has been in partial default since 2017, and although Mr Maduro has repeatedly promised talks on a restructuring, none have yet taken place.
The issue has been complicated by the fact that some of the bonds were issued by PDVSA using the company's US refiner, Citgo, as collateral. As a result, bondholders have been able to pursue the issue through the New York courts.
Bruno Gennari, emerging markets strategist at investment bank KNG Securities, tells the BBC that because the US does not recognise Mr Maduro as president after the 2018 election, this leaves Venezuela with a "legitimacy crisis".
This means that whoever wins Sunday's election would have to be acceptable to Washington if a US-approved debt restructuring is to take place.
Mr Gennari does not rule out that the US "could turn a blind eye" if Mr Maduro wins the election under dubious conditions, but he believes that is rather unlikely.
“This election will have a sizeable impact on Venezuela’s future. If restructuring can go ahead, we could see the beginning of a very complex recovery process," says Mr Gennari.
Once the richest country in South America, Venezuela now has a possible path back to stability - but whatever happens, its economic glory days are firmly behind it.-BBC
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