Major International Business Headlines Brief::: 13 June 2024

Thu Jun 13 10:36:58 CAT 2024

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Major International Business Headlines Brief:::  13 June 2024 

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ü  Tanzania: What Nation Anticipates in 2024/25 Budget

ü  Kenya: UAE Firm B Commodities Granted Exemption On Limuru Tea Takeover

ü  Nigeria: Govt, Delta State Bureaucracies Put $27bn Escravos Port Project At Risk

ü  Nigeria: Labour Rejects Tinubu's Claims of Agreement On Minimum Wage

ü  Liberia: Govt Faces Cyber Attacks

ü  Uganda: Govt, FAO, Launch Digital Information, Surveillance Observatory System to Support Agriculture in Kiryandongo

ü  Tanzania: Horticulture's Wish List On

ü  Liberia: Qatar Airways to Launch in Liberia

ü  Nigeria: No Deal With Govt On N62,000 Minimum Wage Offer, Labour Tells Tinubu

ü  Tanzania: EACOP Compensation Payment Reaches 99pc

ü  Benin-Niger Oil Export Row Flares Again

ü  US inflation cools and interest rates held

ü  We are creating new crops five-times faster'

ü  EU threatens China EVs with tariffs of up to 38%

ü  US widens Russia sanctions in banking crackdown

ü  Musk says Tesla investors voting yes for pay deal

 <mailto:info at bulls.co.zw> 

Tanzania: What Nation Anticipates in 2024/25 Budget

Tanzanians will once again receive formal information today regarding the type of budget they will have for 2024/25 from Dr Mwigulu Lameck Nchemba, the Minister for Finance.

Since the budget is presented every year, I anticipate that many Tanzanians will be more interested in learning about the government's objectives and the sources of financing for various development programmes, where some analysts will compare the budget from last year with the estimates that Tanzanians are going to get for 2024/25 budget Let's first review the amendments proposed in the 2023/24 budget to determine whether the modifications are fruitful to the economy.

This will give us a better idea of what to expect from the Minister of Finance's national budget speech to be presented today.

Dr Nchemba, then Minister for Finance and Planning, tabled the budget on June 15, 2023, with the theme, 'Accelerating Economic Recovery, Climate Change Adaptation and Mitigation and Enhancing Productive Sectors for Improved Livelihood'.

The main proposed measures in the national budget speech of the previous year included, among other things, changing the EFD penalty to 3.0m/- or 20 per cent of the tax if fiscalised invoices or receipts are not issued and removing local share issuance and transfer transactions from the purview of section 56 of the Income Tax Act.

The budget also included a reduction in tax on gross gaming revenue from 25 per cent to 18 per cent for operations at the Forty Machines Site and an explanation of the income tax exemption for internal restructuring of mining firms by framework agreements.

The budget also increased the yearly VAT threshold from 100m/- to 200m/- and decreased the Skills Development Levy from 4.0 per cent to 3.5 per cent. Beyond the macroeconomic policy targets, the national budget for the previous year was carefully crafted with a focus on the larger picture of the economy.

These targets included an estimated 5.2 per cent real GDP growth, controlling inflation in the medium term to a single-digit range between 3.0 per cent and 7.0 per cent, achieving 14.9 per cent annual domestic revenue collection and 12 per cent yearly tax revenue collection, an estimated budget deficit of less than 3.0 per cent of the GDP.

And, above all--maintaining foreign reserves large enough to cover at least four months of importation. Here is a quick summary of the many components that were part of the budget from the previous year.

In terms of tax measures, in addition, a proposal was also made to increase the penalty for neglecting to request an EFD receipt to 30,000/-, which would equal 20 per cent of the tax evaded.

Depending on how the Tax Administration Act, CAP 438 (TAA), was intended to be phrased, using the term evasion could have made it more difficult to implement specific requirements if an EFD was accidentally not issued. It will be a good idea for Tanzanians to be told how this proposal fared and whether it was successful or ineffective.

Regarding income tax, a proposal was made to exempt local transactions involving issuing or transferring shares from section 56 of the Income Tax Act, CAP 332 (ITA).

The purpose of this modification was to eliminate direct transfers of local firm shares as they were already subject to section 90 of the ITA's taxation.

Additionally, a suggestion regarding the internal reorganisation of mining corporations was made, which included an exemption for such restructuring by framework agreements signed with the government.

Regarding the national budget for 2024/25, how successful have the proposed amendments been in raising the national income tax thus far? An amendment was also made to broaden the tax base by introducing a 10 per cent income tax on individuals who dispose land without providing proof of costs incurred.

Previously, the tax base was 10 per cent of gains realised, but it was proposed to be 3.0 per cent of the appraised land value.

In this line, a proposal was also made about the people's withholding responsibility, which was implemented in July 2022 to exclude individuals from the need to withhold tax on rental income for non-commercial properties--such as residential properties.

Regarding the transport industry, a suggestion was also made to modify Section 65 and the Second Schedule to the ITA, replacing them with a more straightforward method of calculating income tax obligations for those operating a transport firm with a turnover of less than 100m/-.

Additionally, a 2.0 per cent income tax was introduced for artisanal and small miners on payments made to ASMs with the expectation that this tax would be withheld.

To what degree have these and other proposals, such as the one exempting dividends and interest earned by the National Health Investment Insurance Fund (NHIF) from income tax, contributed to improving national finances?

Will the budget that we hear about today address these issues, and will we know whether the execution has been successful or not?

The Minister revised the Value Added Tax Act, CAP 148 (VAT Act), in last year's national budget. The amendment raised the VAT registration threshold to 200m/- (87,000 US dollars) with a progressive increase to 500m/-.

Because the threshold for VAT registration in 2023 was 100m/-.

I believe this was a positive step towards increasing the effectiveness of tax administration.

Additional changes included extending the VAT deferment on capital goods to locally manufactured capital goods (previously only applicable to imported ones) and implementing zero rating, which would have applied 0 per cent VAT for a year to textile products made with locally produced cotton and fertiliser.

The Excise (Management and Tariff) Act, CAP 147, has provisions under section 124(2) that the Minister proposed to amend.

These provisions include raising the specific (non-ad valorem) duty rates by 10 per cent, except wines, spirits and confectionery products made domestically; exempting electric non-utility vehicles with only an electric motor for propulsion from engine capacity; and exempting compressed natural gas (CNG) vehicles.

Other tax measures included in the previous year's budget overturned the National Payment System Act and the Electronic and Postal Communications Act.

These measures included eliminating the daily charge levied on each SIM card based on users' capacity to recharge the balance, raising the tax on withdrawals by 50 per cent, and eliminating the tax on electronic money transfers.

Also, actions were taken in response to the Mining Act's exemption of refineries from paying the 1.0 per cent inspection charge. Immigration Act, CAP 54 permits non-residents to apply for a Class B Residency Permit provided they have invested at least 150,000 US dollars in buying a home within the nation.

Land Rent Act, CAP 113 to eliminate the 20,000/- fee for the deed plan; lower the premium charge from 0.5 per cent of the land value to 0.25 per cent; reduce the Certificate of Occupancy fees from 50,000/- to 25,000/- per certificate; lower the registration fees from 20 per cent to 10 per cent of land rent; and amend the Land Act (Cap. 113) to designate the director of the council as the authority responsible for collecting land rent on behalf of the Ministry of Land, Housing, and Human Settlements Development and lowering of tourism business fees for lodging establishments owned by Tanzanians from 2,000 US dollars to 1,000 US dollars for five-star hotels and the same to four-star hotels and retain the same amount of 1,000 US dollars for three, two and one-star hotels.

Those who have been studying the national budgets will concur with me that the responsible Minister's suggestions in last year's budget essentially, with prioritisation, realised the vision of Accelerating Economic Recovery that enhanced productive sectors for the improved livelihood of most Tanzanians.

The question that needs to be posed, though, is whether the budget for 2024/25 will continue to provide Tanzanians of all walks of life, especially those in the tourism sector, financial sector, energy and utility sector, telecommunication, manufacturing and tourism and agriculture sector to mention a few with consolation and hope by laying the groundwork for a booming economy or will it make promoters in these sectors wonder on what will the budget mean to their occupational?

For instance, what will this year's national budget impact have on the manufacturing sector that is highly susceptible to changes in fiscal policy, particularly excise duty charges, which is a significant tax revenue contributor, employment creator and creation of the multiplier effects across of various value chain going to expect?

This year's budgetary estimates are anticipated to promote economic growth, uphold financially sound priority projects and encourage a competitive, inclusive economy that will improve food security, advance development programmes and promote trade competitively.

Will there be additional changes to the 2024/25 budget's budgetary proposal compared to 2023/24?

What would the modifications entail, and what would the consequences be?

Shayo holds a PhD in Economics. He is Daily News columnist.

- Daily News.

Kenya: UAE Firm B Commodities Granted Exemption On Limuru Tea Takeover

Nairobi — The Capital Markets Authority has granted B Commodities ME (FZE), a firm incorporated in the United Arab Emirates (UAE), exemption from the requirements to make a takeover offer for Limuru Tea, a public limited company.

In a public announcement, the authority revealed the exemption was in accordance with Regulation 5 of the Capital Markets Takeover Regulations 2002.

It was therefore noted that B Commodities will not be making a takeover offer for Limuru Tea, which will remain listed on the Nairobi Securities Exchange.

"B Commodities hereby announces that the Capital Markets Authority has granted exemption from the requirements to make a takeover offer for Limuru Tea on the grounds set out in Regulation 5 of the Take-over Regulations," the Authority stated.

According to the regulations, the authority may grant exemptions if the acquisition of a listed company is in distress or in any other circumstance that serves the public interest, including a management buyout involving a majority of the employees.

Earlier last month, the firm announced plans to acquire a significant share in Limuru Tea Company, aiming for indirect control and beneficial ownership, having completed a share purchase agreement with Ekaterra Company, which owns the largest share of Limuru Tea.

"On May 6 2024, Ekaterra and B Commodities entered into a share purchase agreement for the sale of the share capital of various Ekaterra subsidies and /or affiliates in East Africa including 95.56 percent of the total issued capital of Lipton tea," the firm stated .

he ccompany,which was eyeing to acquire 51.99 percent of the share ccapital,submitted an application for exemption from compliance with the Capital Markets TTakeoverand Mergers Regulations,which would have required it to make an offer to acquire the remaining shares of Limuru Tea.

- Capital FM.

Nigeria: Govt, Delta State Bureaucracies Put $27bn Escravos Port Project At Risk

The much talked about foreign investment into the Nigerian economy may lose ground as the country is at the verge of missing the sum of $27.29 billion funding for the Escravos Seaport Industrial Complex (ESIC) project in Delta State and related seven beneficiary States by the end of June 2024.

This is because of the prolonged delay of the Federal and the Delta State governments in giving a final approval for the project's take off.

Chairman of Mercury Maritime Concession Company (MMCC), Rear Admiral Andrew Okoja (rtd), whose firm is the concept developer and lead promoter of ESIC project stated that the investors are ready to commit funds for the commencement of the project.

Okoja noted that the slow pace in the governments providing the necessary approvals may see Nigeria missing out of the desired creation of job opportunities for the citizens.

EDIB International of Hong Kong had early this year expressed its willingness to invest USD $27.29 billion to develop the ESIC project whose deep seaport will be located in Escravos (Gbaramatu Island/Omadino) Warri South-West Local Government Area of Delta State; a development to be effected through Joint Venture Partnership (JVP) with a Nigerian firm Mercury Maritime Concession Company Limited (MMCC).

In its first commitment letter dated 19/01/2024 communicated to MMCC through Chief Kwame Springer, the Chairman of EDIB International Ltd the financing company and their consultancy Blue Dot Wealth Limited, outlined EDIB International group's risk assessment and requirements for successful funding to be granted demanded the securing and protection of their investment by a guarantee of the Federal Government to control the proliferation of Free Trade Zone in the country.

It will be recalled that the development of Escravos Seaport Industrial Complex (ESIC) project commenced in 2019 and aims to develop 31,000 hectares of Delta State land into a Deep Seaport, Crude oil refinery, Gas Complex, Independent Power Plant (IPP), Airport, Nature Park, etc.

According to Okoja, the project is a development that promises to massively open up Delta State and seven other states to international investment in trade, commerce and industry.

"ESIC will transform Delta State economy and those of ESIC beneficiary states from a rural-driven economy with sprinklings of urban development to a metropolis driven economy of international dimension. ESIC project is a Non - Solicited Public - Private Partnership (PPP) driven project regulated by Infrastructure Concession Regulatory Commission (ICRC) Laws of the Federal Government of Nigeria.

"It is modeled after the Lekki Deep Seaport/Free Trade Zone (FTZ) to serve the marine/economic interest of the Niger Delta, Eastern and some Northern States of the Country specifically to solve the perennial port congestion problems in Nigeria."

He noted that the ESIC project is complimentary to the ongoing Lagos - Calabar coastal road in the country.

According to him, "It is instructive to note that by virtue of this deal, the ESIC ownership of deep seaport will revert to FG at the expiration of the renewable fifty (50) years concession. Secondly, it is also consequent upon the May 2022 Delta State Government (DTSG) expression of willingness (Provisional Approval) to lease a 31,000 hectares of land located at Escravos and Omadino to MMCC to host the entire ESIC project.

"The ESIC project is presently supervised by the Federal Ministry of Industry, Trade and Investment (FMIT&I). Due to the concern about the absence of response from FG and DTSG to EDIB International demands whose fulfilment are precedent to the release of funding to develop ESIC project, the Chairman of EDIB Int'L visited the Hon. Minister, FMIT&I and functionaries of DTSG to have discussion with them on ESIC project funding on 15th May 2024. Among the subject discussed were the ESIC project funds diversion to other African states if Nigeria was not ready yet to commence the ESIC project."

- Vanguard.

Nigeria: Labour Rejects Tinubu's Claims of Agreement On Minimum Wage

The Organised Labour has rejected President Bola Tinubu's claims that an agreement had been reached on new national minimum wages in his nationwide broadcast to mark Democracy Day.

According to labour, as at the time negotiations ended on June 7, there was no agreement reached by the Tripartite Committee on the National Minimum Wage.

Rather, two figures such as N250, 000 from labour and N62,000 from government and Organised Private Sector, OPS, were arrived at and ought to have been submitted to the President.

Meanwhile, the Federal Government has urged labour, to be realistic in their demand for a new minimum wage for workers, saying that the relief Nigerians were expecting would not come only in the form of an increase in wages but from other packages lined up by the government.

In a statement by Nigeria Labour Congress, NLC, acting President, Prince Adewale Adeyanju, labour noted that anything to the contrary was not only doctored but won't be accepted by labour.

Reacting to the President's speech, Adeyanju, said: "The NLC attentively listened to the Democracy Day presidential address delivered by Senator Bola Tinubu, especially concerning the ongoing National Minimum Wage negotiations. While the President may have accurately recounted parts of our democratic journey's history, it is evident that he has been misinformed regarding the outcome of the wage negotiation process.

"We appreciate the President's commitment to those fine democratic ideals, which allowed the work of the Tripartite National Minimum Wage Negotiation Committee to proceed unhindered despite some hiccups. However, we had expected Mr President to have used this understanding as one of those who were in the vanguard of the struggle with us around the nation to rescue Nigeria from the hands of the military to harmonise the two figures submitted to him by the Tripartite Committee in favour of workers and masses. It would have been a fitting Democracy Day gift.

"The NLC would have expected that the advisers of the President would have told him that we neither reached any agreement with the Federal Government and the employers on the base figure for a National Minimum Wage nor on its other components. Our demand remains N250,000 and we have not been given any compelling reasons to change this position, which we consider a great concession by Nigerian workers during the tripartite negotiation process.

"We are, therefore, surprised at the submission of Mr. President over a supposed agreement. We believe that he may have been misled into believing that there was an agreement with the NLC and the Trade Union Congress, TUC. There was none and we must let the President, Nigerians and other national stakeholders understand this immediately to avoid a mix-up in the ongoing conversation around the national minimum wage. We have also not seen a copy of the document submitted to him and will not accept any doctored document.

"However, we want to reaffirm our belief that the President on whose table the Tripartite Committee's report presently resides would prepare an Executive Bill, which content will reflect the true demand of Nigerian workers. We think that this is an opportunity for him to demonstrate his love for Nigerian workers and the masses by shunning the pieces of advice that may be coming from those whose intentions are continuously focused on hurting the poor and struggling workers of Nigeria. Mr President should not allow these individuals and groups to sabotage his promise of lifting Nigerian workers out of poverty.

"President's advisers did not tell him the truth that the leaders of the trade unions were intimidated and harassed. It is, therefore, important that Mr President understands that we were threatened severally by his operatives perhaps without his consent.

"Series of media propaganda calculated to intimidate and harass us were, and, are still being waged against the trade unions by senior officials of this government. Fully armed soldiers surrounded us while we were in a negotiation with the government and despite denials, recent statements by senior officials of the government reaffirmed our fears contrary to the assurances by the government. "However, we remain assured that the President's democratic credentials will come to the fore in favour of Nigerian workers and masses.

"It is also important that Mr. President should know that most of his officers are working round the clock to set up the leadership of Congress and the trade unions. We never agreed on a 5-year duration of the minimum wage Act though we acknowledge that the President mentioned 5 years or less.

"We also agreed that inflation should be pegged at a level for a certain amount to be agreed as minimum wage. This is to bring clarity to what the report should contain."

FG to labour: Relief will not come only from an increase in wages

Minister of Information and National Orientation, Mohammed Idris, who spoke at the opening of the 2024 Synod of the Charismatic Bishops Conference of Nigeria held in Abuja, said: "On the matter of the new minimum wage, which the FG is very committed to reviewing, realistically and sustainably.

"As I have repeatedly said, FG is not opposed to the increase of wages for Nigerian workers but we keep on advocating a realistic and sustainable wage system for the workers a wage system that

will not undermine the economy, lead to mass retrenchment of workers and jeopardize the welfare of about 200 million Nigerians.

"We want labour to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.

"It will also come as efforts to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians. And this is where programmes like the Presidential CNG initiative come in," adding that the CNG programme alone, by replacing or complementing petrol usage with CNG, will cut transportation costs by as much as 50 per cent.

- Vanguard.

Liberia: Govt Faces Cyber Attacks

The Government of Liberia is battling a serious cyber security attack on its top-level domain (.LR) from an unknown source.

The NEW DAWN gathers that the Ministry of Posts and Telecommunications has been working for the past three days to foil the alleged attack, but all efforts have proven futile.

Sources from the Ministry disclosed that unknown hackers currently have access to classified government information.

As a result, government ministries and agencies with websites are unable to access their portals or information, which is said to be causing serious challenges for government operations and posing an internal security threat, as the motives behind the action remain largely unknown.

However, in a write-up titled: "Cyber Attack on Liberia's Top-Level Domain (.LR) Disrupts Services for Over 48 Hours" and explaining briefly about the attack in a release dated June 12, 2024, Mr. Victor K. Jarlwood Jr., the Economic Community of West African States (ECOWAS) Cybersecurity Focal Point at the Ministry of Posts and Telecommunications, alarmed about a significant cyber-attack on Liberia's top-level domain (.LR).

According to him, this malicious activity caused the domain to be disconnected by its host for more than 48 hours, causing widespread disruptions to all government .lr domain services.

The ECOWAS Focal Person further reveals that the attacks also included numerous attempts to breach the Ministry of Posts and Telecommunications' official website, noting that these persistent attacks have raised concerns about the security of Liberia's digital infrastructure.

Mr. Jarlwood urges all citizens to adhere strictly to recommended safety measures while emphasizing that the Ministry and its international tech teams are working tirelessly to restore services and ensure the security of the digital environment.

"We are taking all necessary steps to mitigate this attack's impact and prevent future occurrences. Our teams are committed to bringing everything back to normal as quickly as possible," he assures.

At the same time, the Liberia Information Technology Students Union (LITSU), in a press release Tuesday evening, June 11, 2023, under the signature of its President, Sekou M. Kamara, said analyses of the IT environments within Liberia's public and private sectors have identified significant cyber threats, targeting the nation's IT landscape.

The release notes that Cybersecurity issues in Liberia have reached a critical juncture, warranting urgent attention as a matter of national security.

"Cyber-attacks, including those targeting critical government ICT infrastructures, underscore the pressing need to elevate cyber security to a national security priority in Liberia. The evolution and increasing sophistication of these attacks are no longer merely social or economic issues; they represent a substantial threat to national security", LITUS cautions.

The release says LITSU cyber intelligence reports reveal that both government and private sector ICT infrastructures are under attack, and this week's hacking incidents involving multiple government websites highlight the severity of the threat to government technology infrastructure.

It also reveals that several media houses faced Distributed Denial of Service (DDoS) attacks, further illustrating the widespread nature of these threats.

Assessments and investigations indicate that many active websites in Liberia operate on outdated technology platforms and utilize substandard tools, making them vulnerable to cyber-attacks. These vulnerabilities present significant risks, and it is predicted that future hacking attempts could target critical national infrastructures, including data centers, financial institutions, and e-government networks."

Meanwhile, LITSU says it is imperative for all stakeholders, including government and private sector entities, to take immediate and comprehensive measures to bolster cybersecurity defenses.

The release lamented that the safety and integrity of Liberia's digital infrastructure must be prioritized to safeguard national security and ensure essential services' continued functionality and reliability. Editing by Jonathan Browne

- New Dawn.

Uganda: Govt, FAO, Launch Digital Information, Surveillance Observatory System to Support Agriculture in Kiryandongo

Government in partnership with the Food and agriculture organization (FAO) has launched and handed over digital devices to Kiryandongo local government during the launch of the digital information and surveillance observatory system that seeks to support agri-food systems transformation.

Antonio Querido, the FAO country representative noted that the project aims at improving food and nutrition security, income, and livelihoods of subsistence farmers and smallholders through the development of inclusive, resilient, and sustainable food systems in Kiryandongo.

"The project also addresses a range of inherent coupled dynamics, feedback loops and digital impacts that characterize the way agri-food systems interact with the overall objective to improve food and nutrition security, income, and livelihoods of small-holder farmers through the development of inclusive, resilient, and sustainable farming systems,"

"The digital platform will support information and surveillance observatory systems of agri-food system actors, processes, and products available to support traceability, quality assurance, trade competitiveness and improved nutrition. Through the design, digital tools are being deployed across the different elements of the agri-food systems, and more specifically input chains, production, post-harvest, storage, marketing and distribution, processing, retailing, and consumption, collating them with outcomes from food security, nutrition, and health surveys. The system will be vital in generating real-time surveillance to support important tasks, such as distributing quality-sourced inputs to farmers or managing the inventories on different aspects of the agri-food system."

Edith Aliguma, the Kiryandongo district chairperson asked FAO to also consider training locals on how best they can use the digital system for sustainability noting that many projects come and end up going to waste whenever the funders leave.

"We have seen this many times, the best is to train local people on how the system operates, so that it can be scaled down to avoid it dying when you FAO leave, but also the cost of internet and network remains a challenge in remote places."

John Matumi , the principal agricultural officer in the ministry of agriculture said the system will link all actors and play a great role in the agro-industrialization plan as well as the current parish development programs.

"We know government is pushing for agro industrialization which is digital, so now this system will be vital on linking all actors, enable collection of real time data, promote sustainable environment but also help farmers to get market, trace fake seeds, so it's important we embrace it for better" He implored

Martin Jacan, the KIryandongo chief administrative officer tasked all technical heads, politicians to embrace technology saying it will ease information distribution especially in the line of agriculture.

"I call upon all of you to embrace this technology in totality, given the current environment there is no way we can live with out information technology, it will go a long way in bridging the gap in the agriculture sector, but also help farmers get real information and trace fake seeds in case any, i have also learnt it helps finding market, this is very good for us."

- Nile Post.

Tanzania: Horticulture's Wish List On

As anticipation builds for the government main budget for 2024/25 slated to be tabled in the National Assembly tomorrow, the horticultural champion has presented the wish list to spur the multi-million-dollars industry.

The Tanzania Horticultural Association (TAHA) has put forth crucial fiscal reform proposals, aimed to boost the industry for it to grow by leaps and bounds.

Top on the wish list, TAHA Chief Development Manager, Mr Anthony Chamanga says, are unfavorable tax measures on seed research and delays in VAT refunds.

Mr Chamanga said that one of the major barriers is the taxation of services tied to seed research and breeding by multinational companies.

"The imposition of VAT on these services has not only discouraged investment, but also impeded the development of high-quality, resilient seeds" he explained.

TAHA said that Tanzania could attract more multinational seed companies, fostering innovation and boosting productivity within the horticultural industry by reducing the tax burden.

ALSO READ: Major boost for horticulture industry

Perhaps the most pressing issue throttling the financial health of horticultural businesses is the sustained delay in VAT refunds.

"Since 2020, numerous horticulture companies have been grappling with unsettled VAT claims that have severely impacted cash flow and liquidity" Mr Chamanga noted.

These delays, he said, have led to dire financial straits, with some companies failing to meet critical obligations such as loan repayments and timely salary disbursements.

"We hope the government budget will address this issue of timely VAT refunds, as part of strategy to enable the investors inject much-needed liquidity into the industry, allow businesses to recoup losses and invest in further growth" Mr. Chamanga said.

Another critical hurdle identified by TAHA is the excessive taxation on packaging materials for processed vegetables and fruits, including ascetic bags and comical drums.

For them, these taxes have created significant disincentives for investments in processing facilities, undermining Tanzania's competitiveness in both domestic and regional markets.

As the global demand for processed horticultural products surges, removing such tax barriers would bolster Tanzania's position as a formidable player in this lucrative business, he emphasized.

TAHA believes that by addressing these key issues it could open the floodgates for heightened investments, job creation and economic diversification.

"With the right fiscal policies in place, Tanzania's horticultural industry could not only sustain its current achievements, but ascend to new heights, cementing its role as a cornerstone of the nation's economic landscape" Mr. Chamanga concluded.

ALSO READ: Horticulture exports soar as Samia unlocks global markets for perishable crops

The horticultural subsector in Tanzania achieved a 44 per cent growth in export value for 2023, thanks to the proactive policies of President Dr Samia Suluhu Hassan's administration.

Following the Covid-19 pandemic's impact, the industry has rebounded, with export values rising to 418 million US dollars from 290 million US dollars in 2022, according to the Bank of Tanzania.

This recovery is significant for a sub-sector that previously faced a downturn, with its value at 780 million US dollars before the pandemic.

Data from the Ministry of Agriculture highlights a substantial growth in avocado exports, which have risen from 17,711 tonnes (51 million US dollars) in 2021 to 26,826 tonnes (77 million US dollars) in 2023. This increase is largely due to efforts to access global markets for Tanzanian avocados.

Dr Jacqueline Mkindi, CEO of the Tanzania Horticultural Association (TAHA), credits this success to President Samia's leadership, which has focused on improving the industry's global market access.

- Daily News.

Liberia: Qatar Airways to Launch in Liberia

The Minister of Foreign Affairs, Madam Sara Beysolow Nyanti, announces here that Qatar Airways, a multi-award-winning airline recognized by the international air transport rating organization Skytrax, is set to launch its first flight to Liberia.

With its extensive network spanning nearly 170 destinations worldwide, Qatar Airways will provide connectivity to Liberia through its hub, Hamad International Airport in Doha.

The Minister disclosed this during a press briefing at the Ministry of Information, Culture, and Tourism (MICAT) on Wednesday, May 12, 2024, in Monrovia.

Minister Nyanti explains that discussions are underway between the Governments of Liberia and Qatar to facilitate Qatar's expansion into Liberia.

According to her, the initiative took shape during her participation at the Korea-Africa Summit in Seoul, where she had a fruitful meeting with Qatar's Minister of Transport on the possibility of Qatar Airways coming here.

While specific details of the discussions remain undisclosed, Minister Nyanti is optimistic about Qatar Airways launching direct flights to Liberia in the near future, thereby enhancing connectivity between Liberia and the airline's global destinations.

She adds that they met officials from Thailand, Japan, and other counterparts during their return journey from the Korea-Africa Summit. Through these discussions, she reveals that Liberia will receive 3,293 metric tons of rice from Japan on June 18.

She says Liberia has strengthened its bilateral relationship with Korea, initiated by slain President Samuel Kanyon Doe.

The late President Doe had a very good tie with South Korea and received an honorary degree when he addressed a South Korean university during a visit there.

She indicates that there are ongoing engagements and meetings with various ministries under the ARREST Agenda to address proposals requested by the Government of Korea.

The Minister notes that November marks the 16th anniversary of Liberia-Korea ties and that, with the recent signing of an MOU between both countries' Ministries of Foreign Affairs, Liberia intends to enhance its marketing efforts with financial support and trading portfolios.

According to her, plans are underway by the government to sign a trade and investment partnership framework with its Korean counterparts by November this year, aiming to facilitate trade and investment opportunities in Liberia. Editing by Jonathan Browne

- New Dawn.

Nigeria: No Deal With Govt On N62,000 Minimum Wage Offer, Labour Tells Tinubu

Abuja — The Nigeria Labour Congress (NLC) has said that organised labour neither reached any agreement with the Federal Government and the employers on the base figure for a National Minimum Wage nor on its other components.

At the last sitting of the Tripartite Committee on Minimum Wage in Abuja, both the government side and representatives of the private sector made a final offer of N62,000, while organised labour represented by NLC and Trade Union Congress (TUC) came down from their earlier demand of N594,000 to N250,000.

NLC said that it hoped the document submitted to the president reflected the correct proceeding during negotiation, adding that Labour will not accept any doctored document.

In a statement signed by the Acting President of NLC, Comrade Adewale Adeyanju, Labour said it expected the president to have harmonized the two proposals and announce a fitting minimum wage for Nigerian workers.

"We attentively listened to the Democracy Day presidential address delivered by His Excellency, Senator Bola Ahmed Tinubu, especially concerning the ongoing National Minimum Wage negotiations. While the president may have accurately recounted parts of our democratic journey's history, it is evident that he has been misinformed regarding the outcome of the wage negotiation process.

"The NLC would have expected that the advisers of the president would have told him that we neither reached any agreement with the Federal Government and the employers on the base figure for a National Minimum Wage nor on its other components.

"Our demand still remains N250,000 only and we have not been given any compelling reasons to change this position which we consider a great concession by Nigerian workers during the tripartite negotiation process.

"We are therefore surprised at the submission of Mr. President over a supposed agreement," it said.

NLC said it appreciated the president's commitment to those fine democratic ideals which allowed the work of the Tripartite National Minimum Wage Negotiation Committee to proceed unhindered despite some hiccups.

"However, we had expected Mr. President to have used this understanding as one of those who was in the vanguard of the struggle with us around the nation to rescue Nigeria from the hands of the military to harmonize the two figures submitted to him by the Tripartite Committee in favour of workers and masses. It would have been a fitting Democracy Day gift.

"We believe that he may have been misled into believing that there was an agreement with the NLC and TUC.

"There was none and it is important that we let the president, Nigerians and other national stakeholders understand this immediately to avoid a mix up in the ongoing conversation around the national minimum wage.

"We have also not seen a copy of the document submitted to him and will not accept any doctored document.

"However, we want to reaffirm our belief that the president, on whose table the Tripartite Committee's report presently resides, would prepare an Executive Bill which content will reflect the true demand of Nigerian workers.

"We think that this is an opportunity for him to demonstrate his love for Nigerian workers and masses by shunning the pieces of advice that may be coming from those whose intentions are continuously focused on hurting the poor and struggling workers of Nigeria.

"Mr. President should not allow these individuals and groups to sabotage his promise of lifting Nigerian workers out of poverty," organised labour said.

- This Day.

Tanzania: EACOP Compensation Payment Reaches 99pc

The East Africa Crude Oil Pipeline Project (EACOP) has completed 99 percent of compensation payments for project victims in the lake zone.

EACOP Communications Division Officer, Ms Catherine Mbatia revealed this while presenting the compensation program to journalists in Geita town.

Ms Catherine said so far, 99 per cent of the victims who either their land or houses have been affected by the project have almost been compensated.

She said to date, there are no complaints from anyone because the project has respected human rights and complied to national and international laws.

"We make sure that everyone gets his rights, we started at the village level where the oil pipeline passes and went to other parts in the regions. "We had everyone's information, we made sure everyone was reached not only in their household but also getting the right information from the villages and neighborhoods chairmen.

"Therefore, the village chairmen report helped us a lot to reduce complaints, no one was bullied and even if someone was bullied, he or she got his rights," she said.

Geita Region Oil Pipeline Project Relations Coordinator, Mr Moses Msophe said all compensation procedures have been observed and about 1,470 people who have been affected have been compensated.

"Among them, 36 were those who were directly affected in their homes, while 1,434 were victims who were affected in their areas. "The compensation payment involved a high level of transparency, presentation as well as documents review."

Mr Msophe said a total of 23 houses have been built for the victims of the crude oil pipeline in Chato district, Geita district, Bukombe and Mbogwe.

"The biggest challenge we encountered during the payment of compensation is family conflicts. We, as project officers, when we encounter conflicts, we seize the compensation procedures."

- Daily News.

Benin-Niger Oil Export Row Flares Again

Niger has accused Benin of kidnapping five oil workers, while Benin claims the men entered a sensitive oil terminal illegally.

Tensions between neighboring West African nations Benin and Niger are escalating amid a deepening dispute over oil exports.

This latest flare in tensions comes as Niger accuses Benin of kidnapping five of its nationals. The Niger citizens were arrested by Benin last week at its Seme port.

Niger's military junta says those arrested were a team from the Nigerien-Chinese oil company Wapco Niger and include the company's deputy managing director as well as four company executives.

Wapco Niger is a subsidiary of the China National Petroleum Corporation, China's state-owned oil company.

According to the junta, the delegation was in Benin to monitor the loading of Niger's crude oil shipments to China.

Landlocked Niger relies on Benin's port Seme port to export its crude oil, which flows to Benin through an almost 2,000-kilometer (1,200-mile) Chinese-built pipeline from its Agadem oilfield.

Benin accuses Niger of spying

For its part, Benin said it arrested the Nigeriens after they illegally entered the port, where the storage tanks for the cross-border pipeline are located. Cotonou alleged the Nigerien team claimed to be Wapco employees and used fake badges to enter the facility.

Benin's special prosecutor Mario Metonou also accused two of those detained of being agents of Niger's junta.

"Investigations are ongoing to ascertain the true motives of the accused, amidst recurring reports of planned threats to Benin's national security," Metonou said last Thursday.

The incident comes just weeks after Benin agreed on May 15 to provisionally let the first ship load Nigerien oilat the Seme terminal.

But the nations haven't yet agreed on a long-term solution. And the loading of Chinese ships with Niger's oil at Seme port reportedly remains at a standstill after Niger's junta said it would block oil flowing through the pipeline in retaliation for the arrest of its citizens.

"We are no longer going to send our oil through the pipeline until the Beninese decide to honor their commitment and until the Chinese partner gets them to honor their commitment, because apparently that is the only party they are listening to," Niger's petroleum minister Mahamane Moustapha Barke said following the arrests.

According to African Energy, stopping the oil flow would deprive Benin of oil transit fees worth $31 million (€28.9 million) a year.

Tense relations since Niger's 2023 coup

Reopening the common border is another stumbling block in relations between the two countries. The tensions go back to the July 2023 coup in Niger, which led the regional bloc ECOWAS to impose strict sanctions on Niger for more than six months.

In March 2024, Niger reopened its border with Nigeria following the lifting of sanctions imposed by ECOWAS. Nigeria shut its border for several months after the military took power and rejected demands to return power to a civilian government. But despite the lifting of sanctions, Niger refuses to open its land border to Benin, which it accuses of harboring French bases on its territory. The Nigerien junta expelled French troops previously stationed in the Sahel nation.

Benin governance expert Francis Euloge Atad said alternative stakeholders need to get involved in mediation efforts to help ease the situation.

"If Niger wants to put an end to the pipeline or divert the pipeline's route in the same way that it is diverting its goods, why this attitude?" he told DW. "How can we live together, especially those on either side of the two borders? These are all unanswered questions that force us to seek mediation, for example by a religious figure, who should be carefully chosen."

Meanwhile, on the streets of Benin's Cotonou port, near Seme, people told DW they wanted both governments to end the deadlock.

"This crisis mustn't continue. The leaders really need to take action against this as a peaceful and balanced resolution would be beneficial for both countries and their people," one woman told DW.

"I believe it is vital that our leaders, both in Benin and Niger, find peaceful and diplomatic solutions to put an end to these tensions so that the people can live in harmony and focus on development," said another passerby.

Musk says Tesla investors voting yes for pay deal

Tesla boss Elon Musk says shareholder votes on a record-breaking payout to the multi-billionaire and a plan to move the firm's legal headquarters to Texas are "currently passing by wide margins".

Tesla shareholders have been voting on several proposals, including one that could confirm a pay deal for Mr Musk, that was worth $56bn (£43.8bn) when it was first agreed in 2018.

The company is due to make an official announcement on the result of the vote at a meeting on Thursday.

Tesla did not immediately respond to a request for comment from BBC News.

In a post on social platform X, formerly known as Twitter, Mr Musk thanked his supporters.

However, legal experts say it is not clear if a court that blocked the deal will accept the re-vote, which is not binding, and allow the company to restore the pay package.

Tesla pay fight tests power of Elon Musk's mystique

Earlier this year, a Delaware judge voided the compensation deal after a small investor sued.

The judge ruled the sum was "unfair" and the process for determining the package, by a board dominated by Mr Musk, was "deeply flawed".

Tesla called the decision "fundamentally unfair, and inconsistent with the will of the stockholders".

The company then submitted the deal to another vote - and asked its shareholders to back a plan to reincorporate the company outside the state of Delaware.

The board has said Mr Musk deserves the package because Tesla achieved its ambitious targets under his leadership and that it is necessary to ensure he remains dedicated to the company.

Tesla executives also expressed support for the package in social media posts, saying that Mr Musk is crucial to the company's success.

Meanwhile, Mr Musk promised a personal tour of Tesla's factory in Texas to some shareholders who cast votes.

The package - worth an estimated 300 times what the top-earning boss in the US made last year - won backing from 73% of shareholders who voted six years ago.-BBC

US widens Russia sanctions in banking crackdown

The US has broadened its sanctions on Russia, including a fresh crackdown on banks dealing with sanctioned entities.

It expands a December programme to target foreign banks deemed to be aiding Russia's war effort in Ukraine.

The US also placed sanctions on the Moscow stock exchange, leading to it halt trading in dollars and euros.

It also moved to try to restrict Russia's use of technology, including chips and software.

US President Joe Biden signed an executive order in December that imposed sanctions on banks dealing with about 1,200 individuals and companies deemed to be helping Russia's war machine.

Those measures, which expose banks to the risk of being cut off from the US financial system, have now been expanded to about 4,500 entities.

The US will also target on gold-laundering.

Peter Harrell, a former White House senior director for international economics, told the Reuters news agency that the US "is shifting towards something that begins to look like an effort to set up a global financial embargo on Russia".

As part of this effort, the US Treasury announced that it would impose sanctions on parts of Russia's financial system, including the Moscow Exchange, which is one of Russia's main stock exchanges.

The stock exchange, which is Russia's largest foreign exchange market, said the sanctions had forced it to stop trading in dollars and euros.

The US also focused on technology. Chips and other technology made in the US have been found in downed Russian equipment on Ukraine battlefields, including drones, radios, missiles and armoured vehicles.

The sanctions aim to make it more difficult for companies to supply that tech.

The US will target shell firms in Hong Kong selling chips to Russia.

In addition, software and IT services will also be restricted, although the US said its actions "are not intended to disrupt civil society and civil telecommunications".

Despite the wave of sanctions brought against Russia since its full-scale invasion of Ukraine in February 2022, the International Monetary Fund predicts that the country will record economic growth of 3.2% this year.

But analysts said the measures will eventually make it harder for Moscow to wage its war, and overtime weaken Russia's economy.

“Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world,” said Treasury Secretary Janet Yellen.

“Today’s actions strike at their remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries," she added.

The US announced the decision as Mr Biden prepared for a G7 summit in southern Italy with the leaders of the UK, Canada, France, Germany, Italy, and Japan.

One of the G7 leaders' priorities is boosting support for Ukraine, which is now into its third year of resisting Russia's invasion.-BBC

EU threatens China EVs with tariffs of up to 38%

Chinese electric cars may become pricier in the European Union (EU) after politicians called them a threat to its own industry.

It has "provisionally concluded" that Chinese electric vehicle (EV) manufacturers will face tariffs from 4 July "should discussions with Chinese authorities not lead to an effective solution".

The EU's announcement comes as it continues an investigation into what it claims is a flood of cheap, government-subsidised Chinese cars into the trade bloc.

China alleged the tariffs violated international trade rules and described the investigation as "protectionism".

EV makers who co-operated with the investigation, which the EU's governing European Commission launched in October, will face an average 21% duty, while those who did not will face one of 38.1%.

Meanwhile, specific charges will apply to three companies:

BYD: 17.4%

Geely: 20%

SAIC: 38.1%

Non-Chinese car companies who produce some EVs in China, including EU-based ones like BMW, will also be affected.

The commission said Tesla may receive an "individually calculated duty rate" because of a specific request it had made.

These charges would come on top of the current rate of 10% tariff levied on all electric cars produced in China.

The EU's intervention comes after the US made the much bolder move of raising its tariff on Chinese electric cars from 25% to 100% last month.

The decision has drawn criticism not just from China, but also from politicians within the EU and several industry figures.

China's foreign ministry spokesperson Lin Jian said the "anti-subsidy investigation is a typical case of protectionism".

He added that the tariffs might also risk damaging "China-EU economic and trade co-operation and the stability of the global automobile production and supply chain".

The tariffs will apply definitively from November unless there is a qualified majority of EU states - 15 countries representing at least 65% of the bloc's population - voting against the move.

Germany's Transport Minister, Volker Wissing, said it risked a "trade war" with Beijing.

"The European Commission's punitive tariffs hit German companies and their top products," he wrote on X, formerly known as Twitter.

The ACEA, the European Automobile Manufacturers' Association, said that "free and fair trade" was essential in making sure that the European car industry remains competitive.

They added, however, that it was just one piece of the puzzle when thinking about how to boost the adoption of electric cars.

Mercedes-Benz and Stellantis — which owns Citroën, Peugeot, Vauxhall, Fiat, and several other brands — also spoke out, emphasising the importance of free trade.

Stellantis said it does not support measures that "contribute to the world fragmentation [of trade]".

Some EU car companies have called for a bloc-wide industrial policy to deal with global competition.

Last year, more than eight million electric vehicles were sold in China – about 60% of the global total, according to the International Energy Agency’s annual Global EV Outlook.-BBC

We are creating new crops five-times faster'

Like the bosses of many food companies, Jeremy Bunch is worried about the impact of climate change on his business.

“Weather and the climate are maybe the number one risk to our company,” says the boss of US flour firm Shepherd’s Grain.

Based in Idaho, the business sources wheat from farmers across the US Pacific northwest.

As weather patterns become more unpredictable, Mr Bunch says: “I need to have a plan B, and plan C, in case plan A fails.”

To help strengthen these plans, Mr Bunch’s company is now using an AI-powered software system called ClimateAi.

Using current and past data, such as from satellite imagery and temperature and rainfall readings, and combining that with future projections, ClimateAi aims to give farmers the most accurate possible, locally-tailored weather forecasts, from one hour to six months ahead.

It then advises on exactly when to plant and harvest particular crops, and predicts their yields.

Shepherd’s Grain only started using ClimateAi last year, but already most of its 40 plus farmers are now being guided by the app.

“They’re beginning to look at ClimateAi to help them plan for crop management decisions in their wheat crops, the primary crop grown in the region,” says Mr Bunch.

“A forward look at the weather helps our growers decide which crops to plant. The platform knows when to plant, and when the crop will start flowering and producing seed.”

One of the biggest problems facing the seed industry is how to launch climate resilient seeds to market faster and cheaper, says Himanshu Gupta, chief executive of San Francisco-based ClimateAi.

“By the time some seed companies do this, in say 10 to 15 years, the climate has already changed,” says Mr Gupta. “We are running against time to launch new seed varieties.”

He says that ClimateAi helps these firms to see how specific test seeds have performed in a particular region or locality. “This can help seed companies figure out the optimal locations for growing seeds.”

Shepherd’s Grain Harvesters at a Shepherd’s Grain farmShepherd’s Grain

ClimateAi's software advises on when to plant and harvest crops

Last year, a study published in scientific journal Nature warned of the potentially dire consequences of numerous crop failures happening at the same time around the world, as a result of the impact of climate change.

“Simultaneous harvest failures across major crop-producing regions are a threat to global food security,” said the report, which was led by climate scientist Kai Kornhuber from Columbia University’s Lamont-Doherty Earth Observatory.

This warning comes as the world population is expected to reach 10 billion people by 2050, up from eight billion currently, according to the United Nations.

With increased pressure on crops, at the same time as the global population continues to grow, could AI be key to developing new varieties that can better cope with extremes of weather?

In the city of Arusha in Tanzania, David Guerena, agricultural scientist at the International Center for Tropical Agriculture, is leading a project called Artemis.

Funded by the Bill and Melinda Gates Foundation, this is using AI to help breed more resilient crops. Specifically the AI is helping speed up work called phenotyping.

This is the visual studying of new crop varieties based on observations of their characteristics, such as how many flowers, pods or leaves that a plant has.

“Traditionally it takes around 10 years to develop a new crop variety,” explains Mr Guerena. “But given the pace of climate change, this timeframe is no longer viable."

He adds that the phenotyping work traditionally relied on the human eye. “But humans are just not doing this consistently, with the high levels of precision necessary, to make subtle, yet important, plant selections,” says Mr Guerena.

“It can be over 30˚C in the field. It’s just tiring, and fatigue affects data quality.”

Instead, growers involved in the project are taking photos of their crops through an app on a smartphone. The trained AI can then quickly analyses, records, and reports what it sees.

“Computers can count every flower or pod, from every plant, every day without getting tired,” says Mr Guerena. “This is really important as the number of flowers in bean plants correlate to the number of pods which directly influence yields.

“Data can be so complicated, to understand what’s happening, but AI can be used to make sense of that complicated data and pick up patterns, show where we need resources, show recommendations.

“Our plant breeders estimate that with the better data from the AI computer vision they may be able to shorten the breeding cycle to only a few years.”

Avalo Avalo broccoliAvalo

US agri-tech firm Avalo has developed broccoli that grows far more quickly

In North Carolina, Avalo is an agriculture technology or “agri-tech” business also working to create climate-resilient crops. It does this by using AI to help study a crop’s genetics.

“Our process starts with genomic data about crops, for example, the sequences of various varieties,” says Rebecca White, Avalo’s chief operating officer.

“For example, with different tomatoes, there’s some small differences in genomes that give them different traits, for example different flavours, pesticide-resilient profiles. Our machine-learning programme is able to take these small differences across a number of varieties and see which genomes are important for what traits.”

Using their tech they have been able to create a broccoli that matures in a greenhouse in 37 days rather than the standard 45 to 60 days, says Ms White.

“Broccoli produced on that timescale can get additional growth cycles, and it saves carbon footprint and improves the environmental impact.”

Avalo, which works with companies in Asia and North America, is also working to make rice resistant to frost, and potatoes more tolerant to drought.

“Our core technologies can identify the genetic basis of complex traits with minimal training and, via sequencing and predictive analysis, quickly and inexpensively assess and model new plant varieties,” says Ms White.

“We are creating new varieties for diverse crops that are developed five-times faster and for a fraction of the cost compared to traditional breeding.”

However, while AI can help mitigate the impact of climate-related weather, and enhance crop resilience, there are a number of challenges when it comes to using AI in agriculture, says Kate E Jones, professor of ecology and biodiversity at University College London.

“The effectiveness of AI in ensuring food security also depends on addressing challenges such as data quality, technology accessibility… while acknowledging that AI is one tool among many in a comprehensive strategy for sustainable and resilient agriculture.”-BBC

US inflation cools and interest rates held

Consumer price rises in the US eased slightly last month, official data has suggested, ahead of a decision to maintain interest rate levels at a 23-year high.

According to the US Labor department, prices rose 3.3% in the year to the end of May, down 0.1 percentage points from the month before.

Core inflation, which strips out more volatile items like food and energy prices, also slowed despite rents continuing to weigh on household budgets.

Despite borrowing costs standing at their highest rate in years, officials at the Federal Reserve held off on any interest rate cuts this month.

The US central bank held its target rate at 5.25% to 5.5% on Wednesday.

It also forecasted a single rate cut this year - but policymakers were split.

Four expected no cut, seven forecasted one cut, and eight thought there would be two.

Following the inflation data, traders had added to bets on a rate cut in September, and also boosted bets on a second cut in December.

The inflation figure was lower than some economists' expectations, meaning they now believe a rate cut this year is more likely, but it remains above the US central bank's 2% target.

People in the US are still feeling the pinch of rising rents and electricity, while food inflation remained at about 2%.

The rate of US inflation varied for other goods and services.

The pace of price rises for transport, such as taxi rides, rose by more than a tenth in the year to May while the used car inflation fell by almost a tenth.

Lindsay James, investment strategist at Quilter Investors, said that despite slide in inflation markets "remain stuck in a holding pattern".

"[We are] waiting for either inflation to come down more quickly towards the 2% target, or for the economy to buckle under the strain and require a fresh bout of stimulus."

The inflation rate is the pace of price rises or falls over a specific period.

In the US, the Bureau of Labor Statistics uses the Consumer Price Index to measure inflation.

This gets its information from 23,000 businesses and involves price checking around 80,000 consumer items.

While the pace of average price rises remained consistent, some major US retailers, including Target, have slashed prices of goods like food and baby products to try to attract customers.

The price of milk at the supermarket saw a 1.3% drop and there were also decreases in the prices of other non-alcoholic drinks.

Fruit and vegetable prices remained unchanged.

Rent increased by 0.4%, which matched April's rise, and healthcare costs rose 0.5%.

Prices for prescription medications rose by 2.1% and the cost of hospital services also increased by 0.5%.

How the US economy is faring is particularly important in the run-up to the presidential election on 5 November.

Inflation figures are said to be affecting US President Joe Biden's popularity as Americans continue to feel the pinch.-BBC

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