Major International Business Headlines Brief::: 03 June 2024

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Major International Business Headlines Brief:::  03 June 2024 

 


 


 

	
 


 

 


 

ü  Nigeria in Crisis Due to Botched Economic Reforms - Dele Oye

ü  Nigeria: Labour Unions Begin Nationwide Strike

ü  Nigeria: Gencos Cry Out Over N3.7trn Debt, Say Only 10% of Invoice Paid
Monthly

ü  Nigeria: Aviation Unions Direct Members to Withdraw Services

ü  Rwanda to Adopt Digital Currency in Two Years - Central Bank

ü  Rwanda: Fish Production Surges As Rwanda Restores Two Lakes

ü  Africa: AfDB Announces Over $ 3.5bn Mobilization for Liberty Corridor

ü  Liberia: UK Investors Commit to Doing Business in Liberia

ü  Uganda: MPs' Huge Debts - a Never-Ending Cycle of Financial Woes

ü  Kenya: Ruto Promises 10,000 Overseas Jobs As He Heads to Seoul

ü  Shein set to file for £50bn UK flotation - reports

ü  Shops rush for Christmas stock as shipping costs surge

ü  Ticketmaster confirms hack which could affect 560m

ü  $60m collection of rare cars and sneakers going on auction

 


 

 


 <https://www.cloverleaf.co.zw/> Nigeria in Crisis Due to Botched Economic
Reforms - Dele Oye

At the recently held 2024 Vanguard Economic Discourse, the President of the
Nigerian Association of Chambers of Commerce, Industry, Mines and
Agriculture (NACCIMA), Dele Oye, was the Guest Speaker, where he attributed
the current crises in Nigeria to botched economic policies of the
government, such as the currency redesign, removal of fuel subsidy, and the
floating of the Naira.

 

Below are excerpts of his speech at the event with the theme, "Reforms in an
Era of Global Economic Uncertainties, Whither Nigeria".

 

President Bola Tinubu, after taking office in May 2023, eliminated the fuel
subsidy, which had kept petrol prices low but was a significant financial
burden to the federal government. This led to a 196% increase in petrol
prices, causing a ripple effect on the cost of goods and services,
exacerbating inflation, and impacting households and businesses heavily
reliant on fuel due to the poor electricity supply.

 

 

Further compounding the crisis, President Tinubu allowed the naira to float
freely, which resulted in a dramatic devaluation, making imports
significantly more expensive and pushing inflation to nearly 30%, with food
inflation at 35.4%. This devaluation, coupled with fixed wages, eroded
purchasing power and strained businesses that depend on imported raw
materials and equipment. The CBN has raised interest rates and sold US
dollars to stabilize the currency, but these measures come with trade-offs,
such as potential stifling of economic growth and depletion of foreign
reserves. The ongoing economic hardship has led to discontent and likely
civil unrest, posing a risk of further destabilization if conditions do not
improve.

 

 

I must confess that when president took over, he was faced with very serious
challenges

 

In fact there were allegations that the previous government kept borrowing
to pay salaries. So if he did not remove the fuel subsidy from that day one,
we would have had a situation where he would have just taken over, and the
whole Nigeria would be at his doorstep the next day because there is no
money to even buy diesel for the villa.

 

So, no problem, he was quite courageous on the removal of the fuel subsidy
which was the first thing he did. In fact the president confessed that they
did not put it in his speech, that he had to put it by himself, so that when
they say don't say it and he did it.

 

Currency redesign

 

Nigeria is in crisis due to botched economic reforms including a currency
redesign, removal of fuel subsidies, and a currency float.

 

Nigeria used to be the largest economy in Africa. But I think we are now
number three or four. I've not heard any government official acknowledge
that Nigeria has gone down, not one. And that was our major selling point,
that Nigeria is the largest economy in Africa. We went down through our
fault, because of our exchange rates.

 

 

Fuel subsidy removal

 

The first day, when fuel subsidy was removed, one expected the CBN then, on
the face of that significant policy, to do what they are doing now on the
MPR, which is when they should have kicked in, so that people would not go
and borrow and create more problems.

 

They didn't plan it, in fact, they waited three months before they started
working.

 

The abrupt currency redesign by the Central Bank of Nigeria (CBN), under
Godwin Emefiele, caused widespread panic and loss of confidence in the naira
(especially in the sahel/Ecowas regions where Naira was becoming the reserve
currency), driving people to foreign currencies and cryptocurrencies.

 

Before the currency redesign, Naira was a very big currency in the West
Africa ecosystem, almost about N3 trillion businesses, where people were
keeping naira for them to use to buy goods in Nigeria.

 

So, immediately we changed our currency, they immediately had to dump the
naira and go for CFA or dollar.

 

Just imagine that impact, and nobody has done the research on the impact of
that policy change.

 

If we search all of us in this room together, we may not have N500,000, but
the PoS merchant outside can give you N2 million. But nobody has asked, how
did we get here? Even the banks don't have cash since they gave the contract
for their ATMs to private businesses. So nobody has cash. If you go to
collect N5 million, they cannot give you, but the PoS person has.

 

Floating of Naira

 

We also have the floating of the naira. And I want to say here, that there
are only 10 countries in the world where they freely sell their currencies,
and these include the EU.

 

So you have the US, EU, Japan, Norway, Australia, and others. Then you also
have a set of countries that have stronger fundamentals than Nigeria, that
is, Qatar, China, and UAE. They don't sell their currencies the way Nigeria
sells. You know why? They have governance. The Emir of Qatar can change the
price of their currency by decision. So, the investors in the US will not
bet on that currency because it's subject to political changes. But here
comes Nigeria, with all our fundamentals, we cannot even pay for the goods
we import. The CBN is still dodging the people that gave them money for 12
to 18 months, about $2.4 billion. I was at the National Assembly yesterday,
and they almost summoned them before they showed up. And we want to sell our
money like the EU, Euro. It's like putting Enugu Rangers to go and play in
the league in Europe, how many goals, don't you know what the result would
be?

 

 

I understand that if we have to defend the naira, we need to have a
reasonable float. But what is important is that we should know the policies.
Let the CBN tell us where this has worked, what they are doing in Nigeria
with our currency. Tell us which country you are using as an example.

 

So, what I'm saying is this, this thing is not by textbook, you have to look
at your peculiar situation, and do what you have to do. And I can tell you
whoever is asking them to do this, they are not doing it in their country.

 

Nigeria must defend the Naira

 

Every country defends her currency. You can see what America is doing to
China to slow them down, so that America can continue to prevail. You can
see the way they protect their industries. Look at what they did with
Huawei. Today, Huawei would have been the biggest telecoms company in the
world, they started accusing them of all sorts of things. Look at what is
happening to Tik Tok. Countries must defend their own. In Nigeria, there is
nothing for the Nigerian businessman. If you doubt me, go and have a problem
with a foreigner. Sorry, I'm not discriminating here. Just hold one Lebanese
guy, he will use his phone to jail you, because the system does not protect
its own. There is nowhere in the world you will not see the government stand
to support its own people.

 

The Dangote example is one. If it was an Indian that owns that refinery, he
would prefer to sell everything abroad and make FX. He has told you that by
June, "I will stop the importation of PMS". There is nationalism on your own
for you first to defend. Because, for any foreigner in Nigeria, the first
thing is what he can get, declare profit and repatriate back home. Whether
you like it or not, Dangote must do something Kano, you see every year, he
will go there and do the foundation. He must do something in Lagos. So, that
is why the government must, first of all, take care of its own. And that is
what Gowon did for us during indigenization. We are now given it away to the
Chinese. They are all in our villages looking for solid minerals. There is
no protection, except for the Artisanal Miners Act. Check in all our laws,
from even servers or ushers in this event, someone can come from England and
be an usher in this place. You cannot try that anywhere else.

 

I chair the Nigerian-Turkish Business Council. If you open a company in
Turkey, you have to, by law, employ three Turkish citizens, one of them will
be an accountant and two other persons. Their salaries are fixed by the
government.

 

Government must support local businesses

 

So, we must fight for Nigeria, we must fight for our local businesses.

 

Based on the forex policies, there has been significant inflation or
hyperinflation. The figures from the National Bureau of Statistics (NBS) are
not in tune with realities on ground. There is no doubt that inflation in
Nigeria is more than 100 percent. But I understand, we should have something
which we can use to negotiate with others.

 

And I can tell you that is part of the problem we are having in the oil
industry. You ask yourself why the IOCs are leaving, it's simple. When the
Petroleum Industry Act was being negotiated, I warned them in the National
Assembly to take one percent for the community, they said no, it must be 5
percent, we are the owners! Eventually, they settled for three percent of
gross. If you have a budget of $20 billion, you take three percent first and
give it to Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the
government agency, to keep for the community. Have you heard anywhere in the
world where you tax gross? Are you even sure that you will make three
percent profit on the entire project?

 

So, there is hyperinflation because of forex policies. There has been a
significant rise in unsold goods, and these are manufactured goods which are
fast. These are the goods that the Federal Competition and Consumer
Protection Commission (FCCPC) is going to bust the warehouses and say they
are hoarding. They cannot sell, and so are they supposed to eat them?

 

- Vanguard.

 

 

 

 

Nigeria: Labour Unions Begin Nationwide Strike

On Sunday, a meeting between representatives of the federal government,
leadership of the National Assembly and officials of the Nigeria Labour
Congress (NLC) and the Trade Union Congress (TUC) over the proposed national
minimum wage ended in deadlock.

 

Barring a last-minute change in plans, there will be total shutdown across
offices, banks, airports, and other key places in the country today, 3 June
as Nigeria's labour unions commence nationwide strike amid uncertainties.

 

On Sunday, a meeting between representatives of the federal government,
leadership of the National Assembly and officials of the Nigeria Labour
Congress (NLC) and the Trade Union Congress (TUC) over the proposed national
minimum wage ended in deadlock.

 

The meeting which began around 5:50 p.m. and ended at 8:45 p.m. was held
behind closed-door at the National Assembly complex, Abuja.

 

Earlier on Friday, the Nigerian Labour Congress (NLC) and the Trade Union
Congress (TUC) declared a total indefinite strike.

 

 

The unions expect numerous other workers' unions, including those of
doctors, university lecturers, airport workers, and electricity workers to
join in.

 

Amid the uncertainties, the nation may experience widespread power outages,
fuel shortages, and transportation disruptions as essential services will be
disrupted.

 

In a notice issued on Saturday regarding the indefinite nationwide strike,
the General Secretary of NLC, Emmanuel Ugboaja, urged all affiliated bodies
to mobilise their members for full compliance with the industrial action
directive.

 

Mr Ugboaja emphasised the importance of ensuring a comprehensive closure of
all workplaces, noting that the success of the strike hinged on the
collective determination and resolve of their members.

 

Background

 

 

The nationwide strike was declared by the unions to compel the government to
agree on a new minimum wage for workers, and review the increase in the
price of electricity for some consumers.

 

PREMIUM TIMES reported that the NLC and the TUC have been in negotiation
with the federal government over a new minimum wage since the government
policies announced last year by President Bola Tinubu led to an increase in
the cost of goods and services.

 

In his inauguration speech on May 29, 2023, the president announced the
removal of the petrol subsidy, which has led to widespread hardship due to
the resulting increase in the prices of goods and services.

 

Shortly afterwards, the Nigerian National Petroleum Company Limited (NNPCL)
announced a new price regime ranging from N537 to N600 per litre of petrol.

 

The NLC had 26 July 2023 gave a nationwide strike notice beginning on 2
August 2023, to protest the removal of fuel subsidy but later dropped the
plan at the last minute after a series of meetings with the federal
government.

 

 

While negotiations with the labour leaders were ongoing, the federal
government approached the National Industrial Court in Abuja and, on 5 June,
2023, obtained a court order to stop the strike.

 

The labour leaders called off the strike in compliance with the court order
and the promises by the government to implement a number of palliative
measures.

 

The labour again on 5 September, 2023, announced it would embark on a
two-day nationwide warning strike from over the hardship faced by the masses
due to the removal of fuel subsidy.

 

It later declared an indefinite strike on the same issue on 3 October 2023
but suspended the planned strike after a Memorandum of Understanding (MoU)
was signed by the representatives of the labour unions and the federal
government.

 

According to the MoU, the unions would suspend their strike by 30 days, with
parties to the agreement committing "to henceforth abide by the dictates of
Social dialogue in all our future engagements."

 

Agreements

 

The MoU stipulated that the document shall be filed in "relevant court of
competent jurisdiction within one (1) week as consent judgment by the
Federal Government."

 

The document was signed by NLC representatives--its president, Joe Ajaero,
and the secretary, Emmanuel Ughoaja--as well as TUC representatives--its
president, Festus Usifo, and general secretary, Emmanuel Ugboaja.

 

Officials who signed the agreement on behalf of the federal government are
the Minister of Labour and Employment, Simon Bako Lalong; the Minister of
State for Labour and Employment, Nkeiruka Onyejeocha; and the Minister of
Information and National Orientation, Mohammed Idris.

 

The MoU contains terms and conditions that both sides had previously agreed
upon.

 

Among the terms, the agreement includes a wage award of N35,000 to all
federal government employees starting from September, until a new national
minimum wage is officially enacted.

 

Another stipulation is the inauguration of a minimum wage committee within
one month from the date of the agreement.

 

Additionally, the federal government agreed to suspend the collection of
Value Added Tax (VAT) on diesel for six months, beginning in October 2023.

 

After the implementations were not met, the organised labour in February
issued a two-week ultimatum to the federal government to commence the
implementation of policies that will reduce the impact of the government's
economic policies on citizens.

 

 

"These agreements which were reached with the federal government were
focused on addressing the massive suffering and the general harsh
socioeconomic consequences of the ill-conceived and ill-executed IMF/World
Bank induced hike in the price of PMS and the Devaluation of the Naira.

 

"Constrained by this development and recognizing the urgency of the
situation and the imperative of ensuring the protection and defence of the
rights and dignity of Nigerian workers and citizens, the NLC and TUC hereby
issue a stern ultimatum to the Federal Government, to honour their part of
the understanding within 14 Days from tomorrow, the 9th day of February,
2024," the NLC said in a joint statement at the time.

 

The unions later extended the ultimatum to 14 days.

 

But despite the government's introduction of various palliatives intended to
mitigate the adverse impacts of this policy, many Nigerians continue to face
significant difficulties.

 

In addition to removing the fuel subsidy, the Central Bank of Nigeria (CBN)
also unified all segments of the foreign exchange (FX) market to enhance
market transparency and boost investor confidence.

 

Although these policies have received praise in some quarters, they have
also exerted pressure on the local currency and manufacturers, contributing
to elevated prices.

 

While Nigerians were grappling with the ripple effects of the policies, the
regulatory authorities in April announced an increase in electricity tariffs
for some categories of consumers.

 

On April 3, the Nigerian Electricity Regulatory Commission (NERC) approved
an increase in electricity tariffs for customers in the Band A category,
raising the rate from N66 to N225 per kilowatt-hour (kWh). However,
following public outcry, the tariff was later reduced to N206.80 per kWh.

 

This move, said to be part of the government's efforts to reduce subsidies
and ease pressure on public finances, had further weakened the purchasing
power of the average Nigerian amid elevated domestic prices.

 

Negotiations

 

To address the concerns, the Organised Labour initially proposed N615,000 as
the new minimum wage, but later revised its demand to N497,000 last week and
then further lowered it to N494,000 on Tuesday. However, it rejected the
federal government's offer of N60,000.

 

Festus Osifo, President of the TUC, speaking on behalf of the Organised
Labour in Abuja on Friday, stated that the decision to embark on a strike
action stemmed from the breakdown of negotiations for a new national minimum
wage.

 

He revealed that the government had shown reluctance to address concerns
raised by the organised labour, particularly regarding the recent increase
in electricity tariffs and the call for a living wage.

 

"Since we undertook the nationwide protest against the recent hike in
electricity tariffs, no government official has called us for discussion.
Even the Minister of Power has not thought it fit to invite us for
discussion," he said.

 

To prevent the looming strike, the National Assembly met with leadership of
organised labour unions and several ministers on Sunday. But the meetings
ended in a deadlock as the unions threatened to go ahead with the strike
Monday.

 

- Premium Times.

 

 

 

Nigeria: Gencos Cry Out Over N3.7trn Debt, Say Only 10% of Invoice Paid
Monthly

Abuja-Power generation companies in Nigeria, GenCos, yesterday raise the
alarm over the imminent collapse of their operations, following a huge debt
of N2 trillion and an estimated funding gap of N1.7 trillion contained in
the 2024 Multi-Year Tariff Order.

 

The companies said so far, only about 10 per cent of its monthly invoices
for power supplied to the national grid were being paid.

 

The GenCos in a statement issued by their board Chairman, Col. Sani Bello,
retd, said the companies have continued to bear the full brunt of the
liquidity challenges facing the Nigerian electricity market.

 

Bello noted that of all the crises facing the sector, cash liquidity was on
the top burner and had reduced GenCos' ability to continue to perform their
obligations, thereby threatening to completely undermine the electricity
value chain.

 

 

He said: "Notwithstanding this and other severe difficulties the GenCos have
battled with since takeover in 2013, they have kept to the terms of their
contractual agreements by ramping up capacity which has largely suffered
systemic constraints.

 

"GenCos on their part as responsible investors, with patriotic zeal have
made large scale investments and have continued to demonstrate absolute
commitment by ramping capacities in line with their contract these over 10
years, amid system constraints, policies & regulations that are not
investors friendly, increasing debts owed by the FGN without a clear
financing plan, lack of firm contracts and a market devoid of guarantees but
based on best endeavours, thereby hampering future planning and expansion.

 

 

"The power generated by GenCos have continued to be consumed in full without
corresponding full payment, notwithstanding the commencement of the Partial
Activation of Contracts in the NESI which took effect from July 1, 2022, the
minimum remittance order, bilateral market declaration, waterfall
arrangement, the risks of inflation, forex volatility with no dedicated
window to cushion the effect of the forex impact, the supplementary MYTO
order which leaves about 90 per cent of GenCos monthly invoices unmet
without a bankable securitisation, or financing plan.

 

"This situation has dire consequences for the GenCos and by extension the
entire power value chain.

 

"GenCos are currently owed over N2trillion for power they generated, put
unto the national grid, and consumed by end users. This is in addition to
the over N1.7 trillion funding gap created in the recent supplementary MYTO
order 2024 without a designated fund to fill the gap.

 

"This huge debt outlay is now greatly inhibiting GenCos ability to meet
their obligations to lenders, O&M operations, necessary maintenance, spare
parts procurements, and employee-related obligations etc.

 

"The GenCos expectations of being settled through external support such as
the World Bank PSRO has also been dampened due to other market participants'
inability to meet their respective distribution linked indicators, DLIs,
enshrined in the Power Sector Recovery Program, PSRP".

 

The Minister of Power, Chief Adebayo Adelabu, had last month disclosed that
President Bola Tinubu had approved a payment plan for the debt owed to gas
suppliers and the GenCos that would involve immediate cash payment and
promissory notes.

 

But the GenCos appear not satisfied with this and demanded that the federal
government present a clear payment plan to cleat the debts.

 

- Vanguard.

 

 

 

Nigeria: Aviation Unions Direct Members to Withdraw Services

The unions said they would withdraw services from midnight on Monday

 

In compliance with the directive of the organised labour to embark on an
indefinite strike, the aviation unions in Nigeria have directed their
members to withdraw services at all the country's airports.

 

This was contained in a statement jointly signed by the unions after an
emergency meeting in Abuja on Sunday.

 

The unions are the National Union of Air Transport Employees (NUATE), the
Air Transport Services Senior Staff Association of Nigeria (ATSSSAN), the
Association of Nigerian Aviation Professionals (ANAP), and the National
Association of Aircraft Pilots and Engineers (NAAPE).

 

 

The directive comes as all affiliates of both the Nigeria Labour Congress
(NLC) and the Trade Union Congress of Nigeria (TUC) commenced mobilisation
to ensure the strike was successful.

 

In the joint statement signed by the General Secretary of NUATE, Ocheme Aba;
Deputy General Secretary of ATSSSAN, Frances Akinjole; Secretary-General of
ANAP, Abdul Rasaq Saidu; and General Secretary of NAAPE Olayinka Abioye, the
aviation unions said the withdrawal of services will take effect from
midnight on Monday as announced by the NLC and TUC.

 

"In compliance with the directive from our labour organisations--Nigeria
Labour Congress and Trade Union Congress of Nigeria--we hereby inform the
general public, aviation service providers, airline operators, aviation
businesses, and all aviation workers nationwide that starting from 0000hrs
of 3 June 2024, all services at all Nigerian airports shall be fully
withdrawn until further notice," the unions said.

 

 

International terminal to be closed on Tuesday

 

The unions acknowledged the complexities of international travel and said
the strike at international terminals would begin on 4 June.

 

They urged all aviation workers to recognise the significance of the strike
and comply fully, assuring that branch officers would ensure complete
compliance across all the airports.

 

The NLC and TUC, on Friday, announced their decision to embark on an
indefinite nationwide industrial action on Monday over the failure of the
federal government to conclude and pass into law a new National Minimum Wage
Act, and its refusal to reverse the electricity tariff hike from N225/kWh to
N65/kWh.

 

Nigerian govt declares looming labour strike illegal

 

At a joint press conference held in Abuja, shortly after exiting the
negotiation meeting with the federal government for a new minimum wage,
Presidents of the NLC, Joe Ajaero, and the TUC, Festus Osifo, said Friday's
meeting with government representatives further demonstrated the
unseriousness and contempt with which the Nigerian state holds the demands
of Nigerian workers and people.

 

They lamented the situation whereby no 'big personality' was present on the
side of the federal government with the appropriate authority to commit to
any outcome, saying that it was indicative that the government had abandoned
the meeting.

 

The labour leadership specifically noted that no governor was present at the
meeting, just as ministers were absent except the Minister of State for
Labour and Employment, Nkeiruka Onyejeocha, who doubles as a conciliator.

 

- Premium Times.

 

 

Rwanda to Adopt Digital Currency in Two Years - Central Bank

Rwanda is looking to develop its own national Central Bank Digital Currency
(CBDC) in the next two years, as part of the country's efforts to streamline
its financial system and position itself as an important player in the
future of the global economy.

 

The national digital currency, according to the National Bank of Rwanda
(BNR), would offer Rwandans a safe, free, and easy alternative to physical
cash. It would also expand financial inclusion by enabling more unbanked
population to participate in the formal economy.

 

ALSO READ: Rwanda's leap into central bank digital currency

 

And, as digital currencies enter wider global use, it would enable the
government and private companies to participate in international trade more
seamlessly.

 

 

But to many Rwandans, as is around the world, the concept of a CBDC remains
theoretical.

 

In an exclusive interview, The New Times' Edwin Ashimwe caught up with
Soraya Hakuziyaremenye, the Deputy Governor at Rwanda's Central Bank, who
unpacked the necessary steps to adopt a national currency, and the potential
benefits for the public.

 

Already, she said that Rwanda's main trading partners like China are testing
the digital Yuan, and the European Union (EU) plans to adopt a digital
currency in 2025.

 

ALSO READ: Rwanda names "sweet spots" for national digital currency

 

Below are excerpts;

 

The National Bank of Rwanda recently published a feasibility study on the
proposed central bank digital currency (CBDC). How relevant was the study?
And what did you learn from the findings?

 

 

First, I will start by going back to what a CBDC is and why we think the
Rwandan digital franc is important for the local market.

 

The CBDC would be a digital form of cash. In the same way, Rwandans use
banknotes, coins to buy things, or even electronic payments to send money,
the central bank digital currency would do the same.

 

And it was important because of developments in other countries as well.

 

We know now that close to 11 countries have issued CBDCs. The first one was
the Bahamas, and we have a number of countries in Africa, including Nigeria,
Ghana and South Africa that are either in the piloting phase or issued their
CBDC.

 

With Rwanda positioning as an ICT hub, with the ambition to become a
cashless economy, and an international financial hub, we needed to
understand whether there would be benefits for Rwanda as well to embark on
that technological journey.

 

 

The first step was conducting research (feasibility study) and we didn't do
it alone. We worked with the Ministry of Finance, and the Ministry of ICT
and Innovation to form a task force that would look at those developments in
other countries and start looking at a CBDC for Rwanda.

 

That started in 2022, and what we learned is that it was important as a
central bank to understand not only the technology behind a CBDC, but also
the potential risks that would come if we were to issue a digital currency.

 

Equally important was the need to consult banks, fintech, payment services
providers, as well as other government institutions to collect their
feedback on the CBDC.

 

What do the early findings show?

 

The findings show that there are multiple opportunities for a national
digital currency in Rwanda.

 

We identified four that we wanted to test. The first one is that a CBDC
would be more resilient to the current payment systems and would actually
sort of be a better payment tool in case of disasters.

 

The CBDC would also boost innovation and competition among payment system
providers, as well as an accelerator to the cashless agenda that our country
has embarked on. Equally beneficial is a CBDC that would improve
cross-border payments.

 

What are the next steps and when does the Central Bank plan on introducing
the CBDC? And if you could also speak to the expected outcomes.

 

Ours is a cautious approach and it would even require a cabinet decision
because this is Rwanda's currency.

 

We have seen that one of the risks of CBDC is lack of adoption. If a central
bank issues such a digital currency but the population doesn't see the
benefits, then there is no work done. And we don't want to issue a national
digital currency for the sake, but rather a CBDC that has benefits for the
Rwandan population.

 

This is why we published the research paper and opened a public consultation
process, where we expect to receive feedback from the general population
including concerns.

 

And, from the feedback we have received it is clear that some of the
concerns are around data privacy, around resilience, and also around the
fact that we need assurance that a CBDC would not destabilize the financial
system.

 

When can we expect it?

 

We are mindful of our region. For instance, when we look at countries that
have undertaken research or piloting, currently we have close to 86
countries that have formally started piloting or are at the same level with
us in research.

 

And secondly, deciding to launch a CBDC is not something you take lightly.

 

 

You must work closely with your trading partners, for instance, if you are
to validate that cross-border payments will be faster, and cheaper, that our
main trading partners also can receive CBDCs that have developed their own.

 

We still have four weeks until the public consultation process is closed,
and then we embark on a proof of concept.

 

That will allow us to test the technology, the design, and the speed on a
small scale. But there is also an aspect of cases where we want to test the
technology in other countries, particularly in cross-border payments, this
exercise will roughly take six months.

 

That will be followed by taking a sample of individuals and companies who
will be mapped out to test the digital currency, and see whether the
technology works seamlessly, if it is resilient, and see that all the risks
have been mitigated.

 

Given that pace, we look to have everything on the table within the next two
years.

 

ALSO READ: Digital currency development process underway - central bank
governor

 

One of the challenges most central banks face in rolling out a digital
currency is the design. What kind of design are the early findings pointing
towards?

 

There are different options. Rwanda's preferred option is to have a retail
CBDC. That means a CBDC that is distributed through banks the same way you
can make deposits and have accounts with your bank.

 

Another option is to have an indirect CBDC. There are in, literature, cases
where people would have direct accounts with their central banks, but we
don't think this would be the right approach because we want to still have
banks playing their role of intermediation.

 

Lastly is to look at should whether we should have a CBDC that is also
accessible offline, especially in areas that don't have internet access or
even smartphones. That would also play a crucial role in the events where we
have power outages in the country.

 

So, it is going to be a retail form of CBDC?

 

This is our preference.

 

You also recently opened up a public consultation, what is the feedback so
far?

 

We have received various positive feedback, but also concerns. But the most
important thing is that there is optimism about the CBDC for Rwanda, which
is encouraging.

 

The majority indicate that that this would not only fast-track financial
inclusion but also the population having access to digital financial
services quicker.

 

The concerns revolve around privacy and whether the technology will be
secure.

 

Other concerns raised include how the monetary policy is going to work and
be transmitted if it's now in digital form. Others are adopted from
financial institutions such as Banks.

 

These are very valid questions that play a crucial role in informing the
next steps before the CBDC is launched.

 

To say that there are no risks would not be true because even the research
shows that there are potential risks, especially around the stability of the
system, cyber security within the years of the technology, and then of
course adoption by the public.

 

ALSO READ: Rwanda researching on digital currency

 

But why not concentrate on improving the existing electronic payment
methods? Why is it important for a country like Rwanda to launch a national
digital currency?

 

This is a debate that we also internally had. But one of the main drivers is
seeing our major trading partners testing or using the tech.

 

One example is China, they are now in the pilot phase. But also,
international communities like the European Union (EU) are set to launch its
CBDC in 2025.

 

Imagine instances where trading partners adopt a national digital currency
and Rwanda fails to trade because we don't have the technology.

 

This will negatively impact the private sector for both countries.

 

But there is also an imperative for the Central Bank to make sure that we
are ready for innovations that are also experimented in other countries
where we have trading relations and partnership, so that we are not at the
tail end of that of such developments.

 

The Central Bank has continuously pursued efforts to promote financial
technology services through initiatives such as the NBR fintech sandbox. How
has this evolved?

 

Maybe going back to why BNR introduced a regulatory sandbox, we could see
several fintechs coming to the market, thanks in large part to the efforts
by the Kigali International Financial Centre (KIFC).

 

We continue to attract major fintech firms including unicorns in Africa such
as Flutterwave, and Chipper Cash among others.

 

The sandbox is a platform that allows such innovations to be able to test
their solutions without being licensed, but it's in a controlled environment
where they are incubated for 12 months.

 

During that period, we can assess whether that project doesn't pose a risk
to the country's financial stability, but also to work with innovators and
entrepreneurs to make them understand all these licensing requirements.

 

Since it was launched in 2022, we currently have eight fintechs in the
sandbox, three are in the payment space, and we have one in crowdfunding
solution, others in insurance brokerage, and digital lending.

 

The sandbox has also been a bridge between the innovators and existing
financial institutions, one example is SPENN and I&M bank in the digital
payment space.

 

We are very happy with the progress, and I think it has created trust
between startup entrepreneurs and the Central Bank.

 

For us to also acknowledge that we are not tech experts and of course
innovators are always a step ahead.

 

Similar to this is the proposed regional single currency, is this a
development that is still relevant for the EAC market? Who is to blame for
the dawdle?

 

I think we can understand that people are impatient because the East Africa
Community (EAC) single currency has been delayed and the 2024 deadline
extended.

 

Last year the Monetary Affairs Committee which is a committee of Central
Banks in the region decided to extend the deadline because the prerequisites
were not ready.

 

We still need to harmonise a regulatory framework, we still need
conventional criteria because the levels of development of EAC member states
is still different.

 

We also need to create the EAC monetary institute which will work towards
having a single currency, it was supposed to start in 2023, but it is still
subject to approval at the Heads of State level.

 

There are several steps that are still needed before we get a single
currency.

 

But I don't think we should despair.

 

When you look at other international communities, for instance, the European
Union, it took more than 40 years to have a Euro.

 

I think the new deadline which is 2031 is ideal.

 

- New Times.

 

 

 

Rwanda: Fish Production Surges As Rwanda Restores Two Lakes

Fish production in Cyohoha Lake in the Mayange, Mareba, and Ngeruka sectors
of Bugesera district, as well as Kibare Lake in Kayonza District, has
significantly increased following extensive restoration efforts.

 

These lakes had previously dried up due to climate change.

 

ALSO READ: Bugesera to benefit from Cyohoha rehabilitation

 

In 1999 and 2000, Cyohoha Lake dried up completely, causing a massive fish
die-off, Damien Habukize, a fish farmer from Mareba sector says.

 

"I used to harvest Tilapia, Mamba fish, catfish, and more, but they all
vanished due to encroachment and the lake drying up," he said.

 

 

Before the restoration, residents faced severe water shortages. "We had to
dig into the lakebed to access groundwater," Habukize added.

 

ALSO READ: MPs push for law enforcement against encroachment on water bodies

 

Today, fish production has improved, and the lake now supports solar-powered
irrigation.

 

"We now harvest 10 kilograms of catfish, 40 kilograms of Mamba fish, and six
kilograms of Tilapia per day," Habukize said. "The lake is open for fishing
four days a week and closed for two months to allow for fish reproduction."

 

Residents have also formed a fishing cooperative with 350 members to ensure
sustainable production. Phocas Ntiyamira, president of the Komeza Imihigo
Cooperative, highlighted the benefits of restoration, including water for
irrigation and soil erosion control. Bamboos were planted in buffer zones,
and solar-powered irrigation is now in place.

 

Joseline Yamfashije, another farmer, noted that agroforestry trees have been
planted to control soil erosion around the lake and wetland.

 

"We are working to prevent pollution to boost fish production," she said.

 

Sylvie Uwacu, a forestry official in Bugesera District, emphasised that
deforestation and human activities had led to the drying up of lakes and
rivers.

 

"We planted native tree species in buffer zones to restore these water
bodies," she said.

 

 

ALSO READ: Rwanda's fish production increases to 43,000 tonnes

 

Servand Niyitegeka, a rehabilitation expert from the Rwanda Environment
Management Authority (REMA), noted that water levels have risen in both the
lake and wetland post-rehabilitation.

 

"Rehabilitation covered 52 hectares of the wetland and 645 hectares of
Cyohoha Lake. The fishing cooperative members have even bought a vehicle and
built a commercial house due to increased fish production," he added.

 

Fish production has risen from 900 kg to 3,450 kg per month. Additionally,
115 hectares of aquatic weeds have been cleared from the lake. Murago Swamp
has also been proposed as a Ramsar site, designated for international
importance under the Ramsar Convention.

 

Saving Kibare Lake

 

The government has also restored Kibare Lake in Kayonza District. Covering
336 hectares, Lake Kibare is home to Nile Tilapia, African Catfish, and
Haplochromis species. Before 2018, unsustainable agriculture severely
degraded much of its riparian zone.

 

Through a project to build resilience in degraded wetlands, forests, and
savannas, REMA restored the land and banned activities in the riparian zone.

 

"The lake was drying up due to market activities and waste dumping,"
Niyitegeka explained. "Now, a proper market and waste management system have
been established."

 

Bamboo and agroforestry plantations now cover 80 hectares of the restored
lakeshores. The construction of Kibare Market and storage cost Rwf 103
million.

 

A recent REMA investigation found that construction, agriculture, and waste
discharge continue to pollute major lakes in Rwanda. However, ongoing
restoration efforts aim to mitigate these impacts and ensure the
sustainability of these vital ecosystems.

 

- New Times.

 

 

 

 

Africa: AfDB Announces Over $ 3.5bn Mobilization for Liberty Corridor

The African Development Bank Group says it is in very strong financial shape
and ready to contribute to major development projects on the Continent.

 

Monrovia, June 3, 2024: African Development Bank (AfDB) president Dr.
Akinwumi A. Adesina has announced the mobilization of 3.5 to 5 billion
dollars for the Liberty Corridor linking Liberia and the Republic of Guinea.

 

The Executive Mansion posted a press statement on its website on June 1,
2024, revealing the package.

 

At the Bank's 2024 Annual Meeting, which was held in Nairobi, Kenya, the
statement said the Bank announced, among other initiatives on the African
continent, that it is "mobilizing $3.5 billion to $5 billion towards the
development of the Liberty corridor to link Liberia and Guinea."

 

 

Dr. Adesina delivered the speech on Wednesday, 29 May 2024, at the Kenyatta
International Conference Center.

 

Among other initiatives outlined by Dr. Adesina was the raising of $3.2
billion by the AfDB for the East Africa standard gauge railway connecting
Tanzania, the Democratic Republic of Congo (DRC), and Burundi.

 

He also announced providing $500 million towards the development of the
Lobito corridor to link Zambia, Angola, and the DRC; and mobilizing $375
million for financing the railway linking Nigeria to the Niger Republic.

 

Another was the Bank's engagement with partners of the Africa Investment
Forum to mobilize $15.6 billion of investment commitments to develop the
Lagos-Abidjan corridor.

 

 

Touting his Bank as a solution and impact-driven bank, the AfDB Leader
declared that the African Development Bank Group is in a very strong
financial shape and ready to contribute to major development projects on the
Continent.

 

He projected that Africa's real gross domestic product (GDP) growth will
rise from 3.1% in 2023 to 3.7% in 2024, and up to 4.3% in 2025.

 

He noted that "African economies are showing resilience, despite the
challenges posed by climate change, geopolitical tensions, global inflation,
and rising debt, among others."

 

The resources being raised by the Bank for the Liberty Corridor Project will
heavily impact the consortium of investors led by HPX and Guma Group which
are champions of the undertaking.

 

The project envisages the construction of a multi-user railway line
connecting Buchanan Port with HPX's iron ore mining concession in Guinea. It
will also include the expansion of the Port facilities in Buchanan.

 

The project is expected to create thousands of high-paying jobs for
Liberians both during and after the construction phase. It is an integrated
rail project with a deep seaport, energy, telecommunications, and fiber
optic development corridor.

 

When completed, the Government of Liberia is anticipated to generate tax
revenue from this project. As a multiuser facility, it is expected to serve
as a harbinger for regional trade between Liberia, Guinea, and landlocked
Mali.

 

This announcement boosts and greatly supports President Joseph Nyumah
Boakai's Infrastructural Pillar of the ARREST Agenda.

 

On the margins of the AfDB Annual Meeting, members of the Liberian
Delegation met with Mr. Robert Gumede, Chairman and CEO of the GUMA Group,
as well as senior representatives of key multilateral financial
institutions.

 

They include the Kuwaiti Fund for Economic Development, the Organization for
Petroleum Exporting Countries (OPEC) Fund for International Development, and
the Arab Bank for Economic Development (BADEA).

 

The meetings with these three international financial institutions were
preliminary to financing the Gbarnga-Salayea-Voinjama Road Pavement Project.

 

Bilateral talks were also held with officials of the United States Treasury
Department

 

- New Dawn.

 

 

 

Liberia: UK Investors Commit to Doing Business in Liberia

Visiting British investors here have expressed interest in investing in key
sectors of the Liberian economy, including agriculture, roads, and energy.

 

(Monrovia-June 2, 2024) The visiting Uni Commerce Group International (UCGI)
investment delegation has told officials of the Government of Liberia that
it is interested in investing in agriculture, road construction, seaport
rehabilitation, energy expansion, and cross-border transportation.

 

The group is expected to submit a comprehensive investment proposal to the
Government of Liberia later this week.

 

 

The investors met with President Joseph Nyema Boakai on the weekend and
expressed their commitment to doing business in Liberia.

 

During the meeting, President Boakai said Liberia had so much potential, a
youthful population, and a fast investment turnover.

 

He said the country's investment climate was friendly and welcoming and that
his administration sought to establish a stronger governance system that
respected the rule of law and protected human rights.

 

Earlier, the investors met with officials of the National Investment
Commission, ministries of public works, mines, and energy, and National
Fisheries and Aqua Authorities.

 

In those meetings, the UCGI officials spoke of their interest in investment,
while the Liberian government officials provided a briefing on the business
climate in the country.

 

Liberia faces employment challenge mainly for its majority youthful
population because of limited private sector expansion, building up the
pressure on the government to find something for them to do.

 

 

With the new administration pressing forward to keep roads in good shape
across the country and launch agriculture as its main flagship mantra,
international investment could be the only strongest backbone of the state
effort to expand private sector and create jobs.

 

The UCGI delegation headed by Mr. Benyoucef Faiz Hamacha is in an ongoing
preparatory setting up process of what it called the AFRICA CONSORTIUM
HOLDING GROUP, PLC Liberia , the umbrella entity of all the investment
projects to be carried out in Liberia.

 

Grand Gedeh County District #3 Representative, Jacob Debee who invited the
investors to Liberia led the delegation to the meetings with the president
and officials to explore investment opportunities in Liberia.

 

Representative Debee said it was urgent to address the unemployment
challenge, mainly amongst the young people in Liberia, and he was pleased
with the progress of the investment talks.

 

- New Dawn.

 

 

 

 

Uganda: MPs' Huge Debts - a Never-Ending Cycle of Financial Woes

The financial struggles of Ugandan Members of Parliament (MPs) continue to
make headlines, with many struggling to pay off massive debts.

 

Despite their high salaries and allowances, MPs seem trapped in a cycle of
debt that shows no signs of abating.

 

According to sources, several MPs owe millions of shillings to banks,
individuals, and businesses, with some debts dating back years.

 

The situation has become so dire that some MPs have been forced to sell
their properties or assets to pay off their creditors.

 

"It's a vicious cycle," said one MP, who wished to remain anonymous.

 

"We take loans to finance our campaigns, and then we struggle to pay them
back. It's affecting our work and our personal lives."

 

 

The debt problem among MPs is not new, but it has worsened in recent years.
In 2020, it was reported that over 100 MPs had failed to pay back loans
worth millions of shillings.

 

The situation has since deteriorated, with more MPs struggling to make ends
meet.

 

Experts blame the problem on a combination of factors, including the high
cost of campaigning, the need to maintain a certain image, and a lack of
financial literacy among MPs.

 

"The pressure to maintain a certain standard of living, coupled with the
high cost of campaigning, means that many MPs are forced to take on debt,"
said Dr. Fred Batte, an economist.

 

"Unfortunately, many of them lack the financial skills to manage their debt
effectively."

 

The debt problem among MPs has also raised concerns about the independence
of Parliament. With many MPs owing huge sums of money, there are fears that
they may be compromised in their decision-making, potentially leading to
conflicts of interest.

 

 

"This is a serious issue that needs to be addressed," said Prof Mwambutsya
Ndebesa, a political analyst.

 

"The independence of Parliament is crucial for the health of our democracy,
and we cannot afford to have MPs who are beholden to their creditors."

 

As the situation continues to unfold, Ugandans are calling for greater
transparency and accountability among their elected representatives.

 

With the country facing numerous challenges, including poverty and
inequality, the financial woes of MPs are a distraction that the country can
ill afford.

 

"We need MPs who are focused on serving the people, not those who are
struggling to pay off their debts," said Sarah Kizito, a concerned citizen.

 

"It's time for our leaders to take responsibility for their financial
actions and to work towards a more sustainable future."

 

- Nile Post.

 

 

 

Kenya: Ruto Promises 10,000 Overseas Jobs As He Heads to Seoul

Nairobi — President William Ruto is set to jet out of the country on Sunday
evening for an official working tour in Seoul, South Korea.

 

Ruto disclosed his planned trip during a church service in Kimilili, Bungoma
County.

 

The Head of State, who returned from a State Visit to the United States on
May 26, promised to secure investments and opportunities, including 10,000
overseas jobs for Kenyans.

 

Aware of the public criticism of his foreign trips, Ruto pleaded for
tolerance saying he is keen to deliver on his mandate.

 

"You will forgive but you gave me the job and I must deliver the job, in the
evening I will be travelling to Korea for another working trip," he stated.

 

 

Ruto promised multibillion deals including Sh25 billion for water pan
projects and a Sh40 billion pact with the Korean government to fund and
support youths in the creative economy.

 

"I will travelling to Korea to get Sh 40 billion that will help support our
youths in the creative economy. Last year I agreed with Korean President
Yoon Suk Yeol that his government will give us Sh25 billion for water pans
projects considering that many parts our country do not have enough water,"
he said.

 

Ruto said the projects will help spur growth in the agricultural sector by
enhancing irrigation and the creative economy industry.

 

He appealed to leaders to focus on national development and shun divisions
on ethnic grounds.

 

"Let us focus our energy and attention on the transformation of Kenya, not
in the division of our country. I want to request and urge all leaders to go
that direction," he said.

 

- Capital FM.

 

 

 

Shein set to file for £50bn UK flotation - reports

Online fast fashion firm Shein is planning to file paperwork for a potential
London share listing as soon as this week, according to reports.

 

An initial public offering (IPO) could value the company at around $66bn
(£51.7bn).

The firm, which was founded in China and now headquartered in Singapore,
stepped up preparations for a share sale in the UK after it faced regulatory
hurdles and intense scrutiny in the US.

A Shein spokesperson declined to comment.

 

Shein has in the past been linked to unethical business practices, including
forced labour allegations.

A confidential filing with the UK's Financial Conduct Authority could lay
the groundwork for a major London stock market share sale.

 

While it may come this week, Sky News, which first reported the story, said
it could be moved to later in June.

“This could be big news for the London stock market – there haven’t exactly
been many IPOs this year," Colleen McHugh, chief investment officer at
Wealthify, the investment firm, told the BBC’s Today programme.

Shein filed paperwork for a potential New York listing with the Securities
and Exchange Commission (SEC), the Reuters news agency reported in January.

 

However, the company has faced pushback from US lawmakers over concerns
about its links to China as tensions between Washington and Beijing
intensify.

Last year, a group of US lawmakers called for Shein to be investigated over
claims that Uyghur forced labour is used to make some of the clothes it
sells.

 

"We have zero tolerance for forced labour," Shein told the BBC at the time.

The company has also faced scrutiny outside the US as speculation grows that
it may list its shares in London.

Last month, a report suggested that workers for some of Shein's suppliers
are still working 75 hours a week, despite the company promising to improve
conditions.

 

A new investigation by Swiss advocacy group Public Eye followed up on its
2021 report, which found a number of staff across six sites in the Chinese
manufacturing hub of Guangzhou were doing excessive overtime.

According to the group, who interviewed 13 employees from six factories in
China supplying Shein for its latest investigation, excessive overtime was
still common for many workers.

Shein told the BBC it was "working hard" to address the matters raised by
the Public Eye report and had made "significant progress on enhancing
conditions".

 

Referring to allegations levelled at Shein over its labour and
sustainability practices, Ms McHugh said: “It’ll be down to the regulator as
to whether or not the listing can go ahead here [in the UK] – but it won’t
be without controversy.”

 

Shein has grown rapidly since it was founded in 2008, and was one of many
online businesses to boom during the Covid pandemic lockdowns.

Its formula of offering a wide range of cheap clothes - backed up with
campaigns on Instagram, TikTok and other social media - has turned it into
one of the biggest fashion retailers in the world.

It relies on thousands of third-party suppliers, as well as contract
manufacturers, near its headquarters in Guangzhou, and is able to turn
around a new item in a matter of weeks, rather than months.-bbc

 

 

 

Shops rush for Christmas stock as shipping costs surge

European retailers are rushing to place their Christmas orders early as
soaring shipping costs and trade route disruption threaten holiday
deliveries, experts say.

 

For the last few months, vessels belonging to Western firms have been
attacked in the Red Sea by Houthi rebels backing Hamas in its war with
Israel, driving shipping prices up.

Container prices, which peaked in January and briefly declined, have
rebounded sharply in recent weeks.

One business told the BBC that increased costs were likely to feed through
to the price of big-ticket items such as white goods.

 

Nick Glynn, boss of the Buy It Direct group, owns several online retailers
including Appliances Direct and Laptops Direct, which are having to plan and
book well in advance to make sure their shipments arrive on time.

Because they are planning ahead, he said he didn't think Black Friday and
Christmas stock would be affected.

But he said: "It impacts cash and warehouse space as suddenly you have to
store the goods for longer. You can't risk ordering later."

Mr Glynn explained that the spot rate - the current price for immediate
delivery of goods - has dramatically increased in recent weeks from $4,500
to $7,500 (£3,500 to £5,900).

 

 

"This makes a massive impact on big bulky items, especially those that have
low margins such as furniture, barbecues, and kitchen appliances," he said.

 

There was "no way" most online retailers could absorb those price increases
on big-ticket items, he said.

"So unfortunately for consumers, the next few months will see significant
rises on these big-ticket items," he added.

Pandemic lessons

Disruptions caused by Yemen's Houthi movement have limited the global supply
of shipping space and containers.

The Houthi rebels have already launched attacks on more than 50 ships in the
Red Sea and the Gulf of Aden.

 

Global shipping routes have been disrupted by the attacks on vessels in the
Red Sea

Shipping costs have soared as a result. The average cost of shipping a 40ft
container now exceeds $4,000, a 140% increase from 2023, according to
freight market tracker Xeneta.

 

Peter Sand, Xeneta's chief analyst, said that importers have learned many
lessons from the pandemic including that "the most straightforward way to
protect supply chains is to ship as many of your goods as you can as quickly
as possible".

"That is what we are seeing with some businesses telling us they are already
shipping cargo for the Christmas period - in May," he said.

 

Typically, retailers start importing goods for the November Black Friday
sales and Christmas shopping season between late summer and autumn.

Sue Terpilowski, from the Chartered Institute of Logistics and Transport,
agreed, saying companies are realising that disruption to the Red Sea route
caused by Houthi attacks could last until the autumn.

"To avoid headlines 'Christmas is cancelled, there's nothing in the shops',
people are now actually bringing forward their shipments," she said. "So
they'll be here in good time allowing any eventualities that might happen
while they are at sea."

 

Diversions

The attacks on ships have forced owners of vessels travelling between Asia
and Europe to take a longer route around Africa, and so ships are starting
their journeys earlier to allow for the extra time needed for the diversion.

 

"The effects of the diversions from the Red Sea that started last December
are only now becoming apparent, with vessels on the Asia-Europe trade
needing more than 100 days on a rotation by circumventing Africa," said
Dominique Nadelhofer, from Kuehne + Nagel, a major sea logistics firm.

He added that the rotation of container equipment has also been disrupted,
and said only around 50% of global container shipping is currently completed
on time.

 

As well as concerns about potential future Houthi attacks, there are also
growing fears that as naval forces focus on countering the Houthi rebels,
the resulting reduction in maritime patrols elsewhere may provide Somali
pirates with opportunities to increase their activities.-BBC

 

 

 

 

Ticketmaster confirms hack which could affect 560m

Ticketmaster owner Live Nation confirmed "unauthorised activity" on its
database after a group of hackers said they had stolen the personal details
of 560 million customers.

 

ShinyHunters, the group claiming responsibility, says the stolen data
includes names, addresses, phone numbers and partial credit card details
from Ticketmaster users worldwide.

The hacking group is reportedly demanding a $500,000 (£400,000) ransom
payment to prevent the data from being sold to other parties.

 

In a filing to the US Securities and Exchange Commission, Live Nation said
that on 27 May "a criminal threat actor offered what it alleged to be
Company user data for sale via the dark web", and that it was investigating.

The number of customers affected by the data breach has not been confirmed
by Live Nation.

The Ticketmaster breach was first revealed by hackers who posted an advert
for the data on Wednesday evening. Ticketmaster refused to confirm it to
reporters or customers and instead notified shareholders late on Friday.

The Australian government said it is working with Ticketmaster to address
the issue. The FBI has also offered to assist, a spokesperson for the US
Embassy in Canberra told Agence France-Presse.

A spokesperson for the FBI told the BBC it "has no comment on this matter".

In its filing, Live Nation said it was working to "mitigate risk" to its
customers and that it was notifying users about the unauthorised access to
their personal information.

 

"As of the date of this filing, the incident has not had, and we do not
believe it is reasonably likely to have, a material impact on our overall
business operations or on our financial condition or results of operations.
We continue to evaluate the risks and our remediation efforts are ongoing",
it added.

American website Ticketmaster is one of the largest online ticket sales
platforms in the world. This hack is one of the biggest in history in terms
of global victims but it’s not yet clear how sensitive the data is that is
in the hands of cyber criminals.

 

Researchers are also warning that it’s part of a larger ongoing hack
involving a cloud service provider called Snowflake which is used by many
large firms to store data in the cloud. Snowflake notified customers of an
increase in cyber threat activity targeting some of its customers’ accounts.

 

On Friday, Santander confirmed it had data from an estimated 30m customers
stolen which was being sold by the same hacking group as the Ticketmaster
hackers. It added that "UK customer data was not affected or lost in the
hack".

 

It’s thought these hacks are all linked and many others could become public.

An advert with some data samples allegedly obtained in the breach have been
posted on the website BreachForums - a newly relaunched hacking forum on the
dark web where other hackers buy and sell stolen material, and information
to enable hacks to take place.

 

ShinyHunters has been linked to a string of high-profile data breaches
resulting in millions of dollars in losses to the companies involved.

In 2021 the group sold a genuine database of stolen information from 70
million customers of US telecoms firm AT&T.

In September last year, almost 200,000 Pizza Hut customers in Australia had
their data breached.

The FBI cracked down on the domain in March 2023, arresting its
administrator Conor Brian Fitzpatrick, but it has reappeared, according to
tech media.

 

Users of hacking forums often inflate the scale of their hacking to attract
attention from other hackers.

They are often where large stolen databases first appear but can also
feature false allegations and claims.

Individuals declaring large batches of data in the past have proven to be
duplicates of previous hacks rather than newly stolen information.

 

If the data hack is as large as claimed by ShinyHunters, the hack could be
the most significant breach ever in terms of numbers and the extent of the
data stolen.

This is not the first time Ticketmaster has been hit with security issues.

In 2020 it admitted it hacked into one of its competitors and agreed to pay
a $10m fine.

In November it was allegedly hit by a cyber attack which led to problems
selling tickets for Taylor Swift's Era's tour.

Earlier this month, US regulators sued Live Nation accusing the
entertainment giant of using illegal tactics to maintain a monopoly over the
live music industry.

The lawsuit from the Department of Justice said the firm's practices had
kept out competitors, and led to higher ticket prices and worse service for
customers.

 

What to do if you are worried you have been affected

Experts say it’s important not to panic but to be alert, if you think you
may be a victim.

Watch out for bogus emails, messages and phone calls - hackers can sometimes
use the details they have to trick victims into revealing more information.

In some cases scammers may try and exploit the fear caused by the hack as a
way of trying to persuade you to share information.

Be especially suspicious of:

official-sounding messages about "resetting passwords", "receiving
compensation", "scanning devices" or "missed deliveries"

 

emails full of "tech speak", designed to sound more convincing

being urged to act immediately or within a limited timeframe

In 2018 when a hack put some Ticketmaster customer information at risk, UK
officials also suggested users kept an eye on their financial accounts for
suspicious activity. They also advised changing your password for
Ticketmaster and on any other sites using the same password.-BBC

 

 

 

$60m collection of rare cars and sneakers going on auction

Miles Nadal's Dare to Dream collection of luxury and collectible items was
previously on display at a private museum in Toronto

A $60m (£47m) collection of sports memorabilia, rare trainers and luxury
cars owned by a Canadian entrepreneur will be put up for auction at RM
Sotheby’s on Saturday.

Miles Nadal's items for sale include a racing suit signed by former Formula
One ace Michael Schumacher and five classic red Ferraris worth a collective
$20.25m.

 

Also for sale are a rare pair of Nike’s “Moon Shoe” that Mr Nadal bought for
a record-breaking $437,500 in 2019.

They are part of the businessman's luxury collection that was previously on
display at a private museum in Toronto.

In interviews with various media outlets, Mr Nadal said he put some of his
collection up for auction to clear space and that he will donate proceeds to
charity.

 

“I'm 66 years of age, I kind of want to enjoy the fruits of my labour and
try and make the world a better place,” he told BNN Bloomberg earlier this
year.

Mr Nadal, who was once one of Canada’s highest paid CEOs, said he began
collecting rare cars and other memorabilia more than 25 years ago.

 

The items he has put up for auction are estimated to be worth a collective
$60m.

They include an impressive sneaker collection - worth $2m - that Mr Nadal
acquired more recently thanks to a big purchase he made in 2019.

 

“I was bored one day, sitting at my cottage in Muskoka, and I bought
something called the ultimate sneaker collection from Sotheby's; it was 100
of the most iconic sneakers,” Mr Nadal said in his interview with BNN
Bloomberg.

 

RM Sotheby's 2015 Ferrari LaFerrariRM Sotheby's

A 2015 Ferrari LaFerrari in Miles Nadal's collection, estimated to be worth
around $4.25m

The collection included original Air Jordan sneakers that were signed by
basketball legend Michael Jordan himself, and another Nike pair inspired by
the movie Back to the Future - one of only 89 pairs worldwide.

Also for sale at the RM Sotheby’s auction are more than 100 rare cars that
were once on display at Mr Nadal’s Dare to Dream museum in Toronto.

 

Car enthusiasts will likely recognise some - one of each of the “Big 5”
Ferraris: the 288 GTO, F40, F50, Enzo and LaFerrari, as well as a 2015
McLaren P1, one of only 350 in existence.

There’s also a 2008 Bugatti Veyron 16.4 for sale that formerly belonged to
British TV personality and record producer Simon Cowell.

Mr Nadal has described his collection as a result of “emotional investments”
he has made in items that he was genuinely interested in.

 

But he added that it has become difficult to maintain, which is why he
decided to put some up for auction.

Mr Nadal made his fortune after founding advertising firm MDC Partners Inc.

The company was once the subject of an expense investigation by the US
Securities and Exchange Commission, in which Mr Nadal agreed to pay back
$12.5m in expenses and retention pay.

He is also a noted philanthropist in Toronto, donating millions in the past
to Mount Sinai Hospital and York University.-BBC

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
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companies typically involve a higher degree of risk and more volatility than
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investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


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<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
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