Major International Business Headlines Brief::: 07 March 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  07 March 2024 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria - Botched Economic Reforms Plunge the Country Into Crisis

ü  Somalia: The Stakes in the Ethiopia-Somaliland Deal

ü  South Africa: Petrol Price Increases

ü  Africa: Path to Low-Carbon Construction Is Clear As Mud

ü  Kenyan CEOs Foresee an Economic Slowdown in the Next 12 Months

ü  African Seed Trade Members Meet to Boost Seed Adoption, Distribution

ü  Nigeria: Tinubu Signs Executive Orders to Revamp Oil, Gas Sector

ü  Ethiopian Airlines Takes Flight Towards Cost Savings With Boeing 777X

ü  Nigerian Lawmakers to Meet Tinubu Over Rising Insecurity

ü  Rwanda's Exports to China Rose By Over 80% in 2023

ü  Nigeria: 'How CBN Can Track $26 Billion Binance Transactions'

ü  Households are worse off since the last election, says the IFS

ü  Ex-Google engineer charged with stealing AI secrets

ü  Online gambling firm Bet365 probed in Australia

ü  US House sends $460bn spending bill to Senate, averting partial government shutdown

 


 

 


Nigeria - Botched Economic Reforms Plunge the Country Into Crisis

Nigeria, Africa's largest economy, is facing an economic crisis. From a botched currency redesign to the removal of fuel subsidies and a currency float, the nation has been plunged into spiralling inflation and a currency crisis with far-reaching consequences. The question now is: how long before the inferno consumes everything?

 

On October 26, 2022, the Central Bank of Nigeria announced a bold move - that it had redesigned the country's highest denomination notes (₦200, ₦500 and ₦1000) and would be removing all old notes from circulation. People were given a deadline of January 31, 2023 (a couple of weeks before a national election) to make this exchange, or all of the old notes would cease to be valid legal tender.

 

This initiative ostensibly aimed to curb counterfeiting, encourage cashless transactions, and limit the buying of votes during the elections. But, while the intention may have been sound, the execution proved disastrous.

 

 

Short deadlines, limited availability of new notes, and inadequate communication created widespread panic. It led to long queues at banks, frustration among citizens, and a thriving black market for the new notes.

 

The confusion surrounding the currency redesign had an unintended consequence: the beginnings of a loss of confidence in the naira. People began to look to other mediums as a store of value and as a medium of exchange. The obvious choices were foreign currency like the US dollar and the British pound, as well as more stable cryptocurrencies like Tether's USDT.

 

The currency redesign was criticised at the time by the then-presidential candidate of the ruling party, Bola Ahmed Tinubu, who saw it as a move to derail his presidential campaign. However, Tinubu won the contested election and, once in power, set out to reshape the economy immediately.

 

In his inaugural address in May 2023, Tinubu announced that the "fuel subsidy is gone", referring to the government's longstanding subsidised petrol policy that ensured Nigerians enjoyed some of the lowest petrol prices in the world. Over the coming days, he would also announce the reversal of the currency redesign policy and the floating of the Nigerian naira on the foreign exchange market.

 

Fuelling the flames

 

Other underlying economic conditions around the time of Tinubu's inauguration included a large amount of foreign debt, dwindling foreign reserves and global economic headwinds. When the removal of the fuel subsidy was announced, it was met with a mix of surprise and elation by many Nigerians, and in particular by international donor agencies like the International Monetary Fund and the World Bank, who had long been advocating for the removal.

 

But this was all before the effects began to bite. And bite hard they did. The price of Premium Motor Spirit (also known as gasoline or petrol), which used to retail for ₦189 (US$0.12) per litre, increased by 196% practically overnight and began to retail for ₦557 per litre.

 

 

One challenge with developing economies like Nigeria is that a rise in fuel price tends to cause the price of everything else to rise. Many industries, particularly those in manufacturing and agriculture, tend to rely heavily on fuel for powering machinery and equipment due to the poor supply of grid electricity nationwide.

 

Many Nigerian households were significantly affected by the increased prices. But they saw an opportunity in that the savings from the fuel subsidy regime would be redistributed to improve education, healthcare provision and the general welfare of the people, as was promised during the electioneering. The regime cost the country an estimated ₦400 billion a month at its height, after all.

 

Enter currency devaluation

 

Then, on June 14, 2023, the Tinubu government ended the policy of pegging the naira to the US dollar, allowing it to float and find its true market value based on supply and demand. The idea was to stop corruption and reduce arbitrage opportunities due to the difference between official and black-market foreign exchange prices.

 

Currency arbitrage happens when people buy a currency at the lower official exchange rate and immediately sell it at the higher black market rate for a profit. This practice often occurs where there are strict currency controls and black markets offer a truer reflection of a currency's value based on supply and demand.

 

However, this was one policy change too many. The naira lost a staggering 25% of its value in one day, and the cascading effects now push the country to the brink.

 

Nigeria depends heavily on imported commodities, including essential goods like food, fuel and medicine. So the policy escalated the inflationary crisis, pushing inflation to almost 30% (the major driver being food inflation, which reached 35.4%).

 

Imports in general have become significantly more expensive, and Nigerians are finding their purchasing power being eroded. Wages in Nigeria are pretty fixed. The current minimum wage in the country is ₦30,000 per month and the average monthly income is ₦71,185.

 

Businesses are also feeling the pinch, facing difficulties accessing the foreign exchange critical for importing raw materials and equipment.

 

Pheonix or ash?

 

The Central Bank of Nigeria has implemented measures to counter the crisis. It recently raised interest rates from 18.75% to 22.75% and is selling US dollars through auctions.

 

Recovery is a possibility and there are already signs of appreciation in the currency. The naira appreciated by 6.89% a day after interest rates were raised. But it will be a long, hard road.

 

These strategies often come with trade-offs. Higher interest rates can stifle already struggling economic growth, while currency interventions might deplete already strained reserves of foreign currency.

 

The bottom line is that if the current cost of living crisis continues, civil unrest is likely. Should this happen, who knows what - if anything - will be left behind when the flames are done.

 

Chisom Ubabukoh, Assistant Professor of Economics, O.P. Jindal Global University

 

Kunal Sen, Professor and Director, World Institute for Development Economics Research (UNU-WIDER), United Nations University

 

 

 

 

Somalia: The Stakes in the Ethiopia-Somaliland Deal

A preliminary agreement with Somaliland giving landlocked Ethiopia access to the Gulf of Aden has heightened tensions in the Horn of Africa, a region already in turmoil. In this Q&A, Crisis Group experts explain the implications of the controversial accord.

 

What happened?

 

A surprise memorandum of understanding between Ethiopia and Somaliland has aggravated tensions in the Horn of Africa with reverberations beyond. Somaliland, a former British colony lying along the Gulf of Aden, proclaimed independence from Somalia in 1991. Its independence is not recognised by any country, but it has attracted significant foreign investment, partly because of its strategic Berbera port. On 1 January, Somaliland said it had agreed to lease land to Ethiopia to build a naval facility on its coast in return for the latter's recognition of its statehood. The deal has angered Somalia, which considers Somaliland to be part of its territory and worries that regional giant Ethiopia will impinge upon its sovereignty. The resulting crisis could escalate, as Somalia is rallying international opposition to the deal, while Ethiopia and Somaliland appear determined to plough ahead. Observers, and indeed Somali officials, fear the dispute may play into the hands of Al-Shabaab, the Islamist insurgency in Somalia, and further polarise the region.

 

 

Though Ethiopia has not publicly committed to recognising Somaliland as an independent state, many Somaliland officials ... claim that it promised to do so.

 

So far, the preliminary accord's details are opaque, with Ethiopian and Somaliland officials offering different accounts of its contents. First, Ethiopian officials have suggested that the new facility will have both military and commercial purposes. Yet Somaliland insists that Ethiopia will build only a naval base, continuing to use the Berbera port for trade. The size of the area under discussion is also unclear. While the two sides originally announced that Ethiopia would lease 20km of coastline, a top Ethiopian official later said the deal covers 20 sq km of land and sea. Even the facility's location is vague. Some claim that it will be situated at Lugaya, close to the Djiboutian border. Others say it will be close to Berbera. By some accounts, the deal provides for Hargeisa to obtain shares in Ethiopian state-owned enterprises such as Ethiopian Airlines. Though Ethiopia has not publicly committed to recognising Somaliland as an independent state, many Somaliland officials, including President Muse Bihi, claim that it promised to do so under the accord. Given that Somaliland would be unlikely to move ahead with such an explosive initiative without extracting the prize of official recognition, it seems clear that the two signatories understand the memorandum as a port-for-recognition swap.

 

What happens from here is unclear, however, in no small part due to the practical and technical details that would need to be hammered out to move the deal forward. In the meantime, the news has sent shock waves through the Horn of Africa, reminiscent of those generated by Addis Ababa's 2011 announcement that it would build a massive hydropower plant on the Blue Nile upstream from Egypt and Sudan. The project sparked a bitter dispute with Ethiopia's regional rival Egypt that remains unresolved even after the mega-dam began filling in 2020. Many in Addis expressly compare the two episodes, claiming that the government will persevere with the port as it did with the dam. If Ethiopia begins constructing a coastal foothold while recognising Somaliland as an independent state, tensions among the various powers jockeying in the region will soar. With relations between Ethiopia and Somalia increasingly acrimonious, a flurry of diplomatic activity on both sides of the Red Sea suggests that regional divides are widening as other countries line up behind the two opponents.

 

 

What is the deal's significance for Ethiopia and Somaliland?

 

Ethiopian Prime Minister Ahmed Abiy and Somaliland's Bihi have presented the deal as a major win for their respective national goals: restoring sea access, on Ethiopia's side, and gaining international recognition, on Somaliland's.

 

With some 120 million people, Ethiopia is the world's most populous landlocked nation, having lost its coastline when Eritrea seceded in 1993. Over the last two decades, successive administrations have stressed that the country is over-reliant on neighbouring Djibouti's port, which handles the bulk of Ethiopian trade. But, before the January memorandum, the closest Ethiopia got to port ownership was a 2017 agreement with Somaliland under which Addis Ababa was to take a 19 per cent share in Berbera. The deal fell through, reportedly because Ethiopia failed to make timely payments.

 

[Prime Minister Abiy Ahmed] described regaining sea access as a matter of existential importance to a growing Ethiopia.

 

Abiy's ascent as prime minister gave the aspiration to restore sea access a new push. He and his close-knit team of advisers have long signalled that he views sea access as part of the legacy he wants to leave the country. The prime minister has also made clear that he envisions Ethiopia as a future naval power. Strains between Ethiopia and Djibouti, partly due to Ethiopian complaints about Djibouti's port fees and excessive red tape, may factor into Abiy's calculus. In a speech televised on 13 October 2023 (but reportedly delivered months earlier), he described regaining sea access as a matter of existential importance to a growing Ethiopia. Many regional and outside officials took Abiy's speech as an implicit threat to invade Eritrea and seize its southern port of Assab. Following quiet diplomatic entreaties, Abiy clarified that he was not envisaging military action.

 

For Somaliland, the memorandum of understanding is a political gamble that has energised its long quest for outside recognition. Since 1991, Somaliland has developed many trappings of a state, including a largely stable, functional administration and relations - both diplomatic and commercial - with foreign powers, including the U.S., UK and United Arab Emirates (UAE). In particular, the Emirati firm DP World is investing $442 million in Berbera port, aiming to make it into a regional trade and logistics hub. Meanwhile, Somalia continues to demand that Somaliland rejoin its federation, leading external partners that want the two to resolve their differences amicably to support off-and-on talks between Mogadishu and Hargeisa. The latest attempt at reviving these talks came just days before the memorandum, with Somali President Hassan Sheikh Mohamud and President Bihi of Somaliland meeting in Djibouti on 28-29 December. Somaliland officials described the memorandum to Crisis Group partly as a response to Somalia's uncompromising stance on the independence question, including at that meeting, and an expression of frustration with Somaliland's unresolved status.

 

Additionally, the deal with Ethiopia is likely driven by Bihi's desire to bolster his political standing at home. A long-running dispute over how to sequence elections likely weakened his chances for the presidential vote, which is now scheduled for November. He has also taken flak for a disastrous military failure in the Sool region, which Somaliland disputes with neighbouring Puntland. In February 2023, Hargeisa attempted - and failed - to quell an uprising by the Dhulbahante clan in Las Anod, Sool's capital. The Dhubalhante belong to the Darod family, which is not part of Somaliland's dominant Isaaq clan. The Dhulbahante prefer that the Sool area, in which they make up a majority, become a state in Somalia's federation, rather than fall under Somaliland (or Puntland) jurisdiction. In August, after recurrent clashes, Somaliland forces retreated to positions about 100km west of Las Anod, and an uneasy calm settled in. Nonetheless, the front lines are heavily militarised, the two sides eyeing each other warily and expecting that fighting could resume at any moment.

 

What were the reactions in Somalia and beyond?

 

The announcement infuriated Somalia, which recalled its ambassador to Ethiopia and immediately declared blocking the accord a national priority. On 6 January, President Mohamud signed a parliamentary bill declaring the deal "null and void", though this step was mostly rhetorical. Opposition to the deal spread quickly among the public as well, and government officials participated in a protest march in the Somali capital on 11 January. Mogadishu's most hostile move so far came six days later, when it denied air traffic clearance to an Ethiopian Airlines flight carrying a high-level Ethiopian delegation to Hargeisa for discussions about the memorandum. (Mogadishu has almost no sway over what happens inside Somaliland, but it retains control of the skies.)

 

Somalia is angry about more than the idea that Ethiopia might recognise Somaliland's independence. First, it accuses Addis Ababa of meddling in its internal affairs, initiating discussions about an affair of state with Hargeisa without even notifying Mogadishu in advance. (Ethiopia says it did inform Somalia that talks would take place, but Somali officials say Addis did not provide full details.) Secondly, while Somali officials say they do not object to Ethiopia using the Gulf of Aden coast - whether at Berbera or another port along the Somali cost - for commercial purposes, they draw a red line at an Ethiopian military installation on what they consider Somali soil. Thirdly, and relatedly, the initiative feeds centuries-old Somali suspicions that Ethiopia is eyeing Somali-inhabited lands. This last sentiment is deepened by the fact that Mogadishu is not sure what is in the memorandum, given the conflicting reports about its contents.

 

Mogadishu has focused on galvanising its allies and international organisations to help persuade Ethiopia to renege on the January memorandum.

 

But despite the torrent of condemnatory statements, the Somali government has thus far acted cautiously vis-à-vis Ethiopia. It has refrained from cutting political or economic ties with Addis or from undertaking military preparations. Its approach probably reflects the asymmetry in its overall relations with Ethiopia, which has sent thousands of troops to fight Al-Shabaab, both as part of the African Union Transition Mission in Somalia (ATMIS) and as a separate contingent. Instead, Mogadishu has focused on galvanising its allies and international organisations to help persuade Ethiopia to renege on the January memorandum. It has been able to convene emergency summits and meetings of the League of Arab States, the AU, the Intergovernmental Authority on Development (IGAD), a Horn of Africa body, and the UN Security Council. (Lacking outside recognition, Somaliland is excluded from all these organisations.)

 

International reactions have largely favoured Somalia's argument that the deal runs counter to principles of preserving territorial integrity, sovereignty and non-interference in internal affairs. In the immediate vicinity, Abiy's push for sea access has unsettled neighbours Djibouti and Eritrea, which both seem to have sided with Mogadishu. Although Eritrea's government has been quiet about the deal, President Isaias Afwerki invited Somalia's President Mohamud to Asmara. Mohamud's press office said "profound talks" were held "while refraining from a reactive posture to various provocative agendas". Djibouti, which is friendly with Somaliland despite competing with it commercially, has come out strongly against the January memorandum. Djibouti has taken on significant Chinese debt to improve a road connecting its port to Ethiopia, assuming that a large volume of trade would continue to transit, and stands to lose significant revenue from port fees if the deal holds up. Additionally, Bihi signed the memorandum shortly after Djibouti President Ismaïl Omar Guelleh tried to mediate between Somaliland and Somalia, which likely came as an insult.

 

 

Farther afield, Egypt has perhaps been most active in capitalising on the dispute, doubtless due to Cairo's longstanding rivalry with Addis Ababa. On 20 January, Egyptian President Abdelfattah al-Sisi invited President Mohamud to Cairo, pledging to defend Somalia if asked. Traditional partners like the European Union and the U.S. have expressed strong support for Somalia. Other powers closer to the Horn of Africa, including Qatar, Saudi Arabia, Türkiye and the UAE, have publicly backed Mogadishu but likely seek to balance their relations in the region. The UAE appears to be in a particularly awkward position, given its majority stake in Berbera port, its strong security partnership with Mogadishu and its warm relations with Addis Ababa. Somali officials complain quietly that they see the Emirates playing a role in the deal, given Emirati leaders' proximity to Abiy, although foreign diplomats are less certain.

 

Mogadishu has thus far refused to enter bilateral talks with Addis.

 

The AU has urged its high representative to the Horn, former Nigerian President Olusegun Obasanjo, to foster dialogue between Mogadishu and Addis Ababa. But early indications are that Obasanjo is struggling to make headway, with Somalia reluctant to engage him. Mogadishu has thus far refused to enter bilateral talks with Addis: Abiy reportedly tried to speak with President Mohamud, but Mogadishu insists that Addis pull out of the memorandum before the two leaders meet face to face.

 

Indeed, hopes that the two leaders would talk on the sidelines of the annual AU summit in Addis Ababa on 17-18 February quickly evaporated. Mohamud claimed that Ethiopian authorities tried to prevent him from leaving his hotel to drive to AU headquarters. Ethiopia blamed the incident on the Somali delegation, saying it refused the Ethiopian security team assigned to it under AU protocols. Authorities also alleged that Somali security personnel tried to enter the AU building's premises carrying firearms without prior notification.

 

Kenya seems to be taking a lead within the regional bloc IGAD to mediate. Abiy and Mohamud met separately with Kenyan President William Ruto in Nairobi, on 28 and 29 February, respectively, but there was no significant breakthrough, although some reports suggest a quiet agreement to de-escalate. Ethiopia and Kenya released a joint statement pledging to respect the "sovereignty and territorial integrity of states" but without naming Somalia.

 

What are the dangers of further escalation?

 

The agreement between Ethiopia and Somaliland could spell further friction in an already troubled Horn of Africa. Even if the deal collapses, the question of sea access for Ethiopia will remain a divisive issue that is likely to resurface soon. Abiy is bent on restoring it, and he has a penchant for unilateral action. Although the prospect of more armed conflict as a result of the January memorandum seems low, given that both Ethiopia and Somalia seem to be keeping their differences in the diplomatic and political arena, that could change if Addis Ababa and Hargeisa move quickly to the deal's next stage.

 

Another major concern is that the feud could become the latest front for proxy shadowboxing in the Horn of Africa, echoing previous bouts of competition among Gulf powers in the region. The deal could drive a wedge between two emerging blocs - on one hand, Saudi Arabia, Egypt and their allies, including Eritrea and Djibouti, all of which are situated on the Red Sea; and the UAE, Ethiopia and their allies, on the other. Saudi Arabia, Egypt and Eritrea share a desire to prevent other powers from encroaching on the Red Sea, while Djibouti has drifted closer to Saudi Arabia since it fell out with the UAE and seized control of a container terminal operated and jointly owned by DP World. These blocs are already at odds over the Sudan war, with Egypt, Saudi Arabia and Eritrea favouring the Sudanese army on one side and the UAE backing the rival paramilitary Rapid Support Forces on the other. Recent developments - Egypt's vocal support for Somalia, the pomp attending the announcement of a surge of Saudi aid to Somalia, and a series of meetings between Djibouti and Saudi Arabia - suggest that the parties are indeed positioning themselves along these lines.

 

A breakdown in relations between Addis Ababa and Mogadishu could threaten their close cooperation in fighting the [Al-Shabaab] insurgents.

 

Al-Shabaab is another concern. A breakdown in relations between Addis Ababa and Mogadishu could threaten their close cooperation in fighting the insurgents. Should Addis use its troops as a bargaining chip or Mogadishu expel them to spite Ethiopia, a security vacuum would emerge that Al-Shabaab could exploit. The insurgents would then pose a greater danger not only to Somalia but also to Ethiopia and other countries in the region. Even the threat of such measures could prove destabilising, given that ATMIS is slated to draw down by the end of 2024 and talks with the AU about a follow-on mission are still under way.

 

Al-Shabaab may also benefit from the nationalist backlash to the memorandum in Somalia. It has portrayed itself as the only actor capable of rolling back Ethiopian ambitions in Somali territory, depicting the Somali federal government as too weak to stand up to outsiders trying to manipulate it. Al-Shabaab will undoubtedly attempt to win new recruits based on this narrative, something it has done in the past, particularly following Ethiopia's 2006 invasion of Somalia to depose the Islamic Courts Union, an Islamist outfit that had seized power in Mogadishu.

 

What should be done?

 

Ethiopia, Somaliland and Somalia should strive to de-escalate tensions. Despite aggressive rhetoric, all three parties have so far avoided rash decisions. They should continue to show restraint. All the external actors trying to mediate, including IGAD and the AU, should make sure to coordinate efforts so that they do not work at cross-purposes. As a first step, regional and other actors with influence should work toward a conciliatory step from Ethiopia that could pave the way for direct talks. For instance, Ethiopia could issue a clear statement acknowledging its respect for Somalia's territorial integrity. Meanwhile, despite the stance taken by Hassan Sheikh Mohamud, now is the best time for Mogadishu to engage, because the memorandum is a preliminary accord whose formal contractual obligations still need to be negotiated. A failure to talk now could result in a missed opportunity before the deal gets fleshed out. Given Somalia's preference for multilateral engagement, the two heads of state can meet in the company of fellow IGAD heads of state, such as Ruto and current IGAD chair Guelleh.

 

For Addis Ababa, the moment is likewise opportune: its economy is in deep distress and relations with many neighbours are deteriorating. Pushing ahead with the deal amid such stiff regional opposition would carry major risks. Outside actors should encourage the parties to engage in such discussions rather than use the dispute to further their own interests.

 

Mogadishu and Hargeisa will ... need to resume direct dialogue.

 

Mogadishu and Hargeisa will also need to resume direct dialogue, since no other path to resolving Somaliland's limbo status is apparent and since spiralling tensions risk harming both. Such talks look unlikely until the present crisis dies down.

 

The memorandum of understanding has brought two of the Horn's enduring questions to the fore: Ethiopia's long-held desire for sea access and Somaliland's uncertain status. Dealing with both simultaneously will be tricky indeed, especially given the regional and geopolitical posturing at play. The priority today must be to prevent further escalation of the crisis. Still, regional diplomats should ensure that addressing these core disputes in a manner that all can live with and benefit from remains firmly on their agenda. Failure to do so means that the disputes will inevitably resurface down the road, as will the tensions that come with them.

 

- the Crisis Group website.

 

 

 

 

 

South Africa: Petrol Price Increases

The Department of Mineral Resources and Energy (DMRE) has announced that all grades of fuel will increase by at least R1 from today.

 

The following are the increases have been announced:

 

Petrol (93 ULP & LRP): R1.21 increase.

Petrol (95 ULP & LRP): R1.21 increase.

Diesel (0.05% sulphur): R1.05 increase.

Diesel (0.005% sulphur): R1.18 increase.

Illuminating paraffin (wholesale): 64 cents increase.

Single Maximum National Retail Price for illuminating paraffin: 85 cents increase.

Maximum LP Gas retail price: 41 cents increase

The increases mean that a litre of 95, which used to cost R23.24 in Gauteng, now costs R24.45 a litre.

 

The DMRE said a number of factors influenced the increases, including:

 

The average Brent Crude oil price increased from 82.03 US Dollars (USD) to 82.50 USD during the period under review.

The average international product prices of petrol, diesel and illuminating paraffin increased in line with the higher crude oil prices.

The Rand depreciated slightly on average, against the US Dollar from 18.77 to 19.20 Rand per USD during the period under review. This led to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin.

The DMRE Minister, Gwede Mantashe with the concurrence Minister of Finance, Enoch Godongwana approved an increase from 0.1 c/l to 1.0 c/l in the IP Tracer Dye Levy that is applicable to Diesel with effect from the 6 March 2024. This increase is temporary until the 5th of March 2025.

 

"South Africa's fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs," the department explained.

 

-SAnews.gov.za.

 

 

 

 

Africa: Path to Low-Carbon Construction Is Clear As Mud

The use of building materials such as cement and steel create a massive carbon footprint, and the industry overall is responsible for almost 40 per cent of global CO2 emissions, mainly in terms of production and transport. Now, two women architects in India think they might have a new, perhaps counter-intuitive solution to sustainable construction: building with mud.

 

"Not many architects think that climate change is something that they need to think about, but we're trying to change that," says Rosie Paul, co-founder of Bangalore-based architecture firm Masons Ink.

 

"For us, it's obvious that climate change directly affects the shelter that you're going to live in, and you need to start building resilient structures."

 

 

Ms. Paul and her best friend of sixteen years, Sridevi Changali, are focused on preserving India's ancient heritage of mud construction by emphasizing the material's sustainable properties, which make it ideal to combat the modern problem of high-carbon construction.

 

Muddy the waters

 

The magic of mud? Its breathable nature allows moisture into the home, improving indoor air quality and avoiding the buildup of damp and mould which cement traps and incubates.

 

Mud walls have a high thermal mass which means they slowly absorb heat from solar radiation and store it, releasing it at night in cooler temperatures. This reduces the need for air conditioning units, which consume large amounts of electricity and contain refrigerants that are potent greenhouse gas emissions.

 

As mud is readily available, it removes much of the transportation cost and footprint. Sridevi notes, "the manufacturing and the processing is done by local communities, so you're giving back to local livelihoods rather than large manufacturing plants and large companies."

 

Could mud be the solution? Architects like Rosie and Sri are reviving raw-earth construction to build sustainable structures that can withstand extreme weather events such as flash floods and intense heat.

 

Step up for women

 

At the same time, they're championing more women to complete their studies in architecture and training more women in on-site skills, such as stone masonry.

 

"I think the minute you start talking about issues related to gender, it automatically becomes like a "you versus me" thing," Rosie says. "Which it really isn't. We're just saying that there are issues that we're feeling in the profession, and we need support to change that.

 

"Let's employ more women in our architecture firms. Let's have more women on construction sites. Let's look at their security aspects. The idea is to question the obstacles, and to get more people to fight those with us."

 

An early supporter was their client Thomas Payyapilli, whose mud home Masons Ink designed using little to no waste.

 

There were two main factors involved in the concept, he says: lowest possible cost, and lowest possible impact to the environment. His farm is now fully certified organic, growing aromatic and medicinal plants.

 

Another client, Sindhoor Pangal, sees her mud home as a departure from an unfulfilling urban existence. "I started out in the corporate world like a lot of people. And I think after a while, I got disillusioned with that kind of a life". A planned move to the countryside took a tragic turn with the sudden loss of her husband, Uttam.

 

"When I spoke with Masons Ink, it was important for me that they also knew my husband. They understood my journey. They understood where I was coming from. And somehow, that translated into the design." Masons Ink and Sindhoor worked with an all-woman team of masons to create her home, which, she says "is a dedication to my husband and the life that I had with him."

 

For Rosie and Sridevi, when it comes to the climate crisis, big changes can come from all of us.

 

"For women, no matter where you are, and no matter what your profession is, or if you're at home, the idea is just each of us to do our own little part. To keep going. And I'd love to see more women architects and more women working on sites. More women everywhere. The future is female."

 

-UN News.

 

 

 

 

 

Kenyan CEOs Foresee an Economic Slowdown in the Next 12 Months

Nairobi — Kenyan Chief Executive Officers (CEOs) are cautiously optimistic about global economic growth, with only 56 percent stating it will either improve or stay the same in the next year.

 

The latest data from PwC Kenya's 2024 CEO Survey, however, indicates that the local economy will decline in the next 12 months as many Kenyan CEOs remain uncertain of whether their companies will remain economically viable for 10 years or more if they continue on their current path.

 

"56 percent of Kenyan CEOs are cautiously optimistic about global economic growth in the next 12 months echoing the sentiments of 54 percent of their global counterparts however, 62 percent believe the local economy will decline in the next 12 months," said Peter Ngahu, Country and Regional Senior Partner, Eastern Africa.

 

The report revealed that 48 percent of Kenyan CEOs are confident about their company's prospects for revenue growth in the next 12 months, while only 56 percent expressed confidence about their revenue growth in the next three years.

 

 

"60 percent of Kenyan CEOs attribute 20 percent of their company's sales in 2023 to new products and services they have introduced in the last three years and an additional 40 percent of CEOs attributing new products and services to a more than 20 percent contribution," added Ngahu.

 

According to the survey, 86 percent of Kenyan CEOs also considered their neighboring countries in the East Africa region as important territories for revenue growth in the next 12 months.

 

The report notes that growth in intra-East African Community trade has fostered deeper regional integration between East African countries, including Uganda and Tanzania, standing at 34 percent, as well as Rwanda at 18 percent, boosting the common market among member states.

 

"At the time of the survey, Kenyan CEOs were optimistic about their company's future growth prospects, based on previous performance," stated Ngahu.

 

58 percent of those interviewed revealed that inflation continues to pose a great threat to Kenyan CEOs, which is relatively higher than 26 percent of their global counterparts, with 50 percent of CEOs also concerned about limited financial resources to run business operations.

 

"Kenyan CEOs are concerned about their exposure to territory threats. This directly speaks into their threat exposure to inflation and macroeconomic volatility," the report concluded.

 

-Capital FM.

 

 

 

 

African Seed Trade Members Meet to Boost Seed Adoption, Distribution

Nairobi — More than 350 delegates from governments, research institutions and seed production companies are gathering in Kenya this week to address challenges in getting good-quality seeds to African farmers. Experts say the lack of good seeds is hampering food production across the continent and contributing to the hunger crisis in many countries.

 

According to U.N. agencies, more than 280 million people in Africa are food insecure, with over a billion unable to afford healthy diets.

 

One of the problems is that quality seeds are inaccessible to many African farmers, leading to higher rates of crop failure.

 

Daniel Agan works with the African Seed Trade Association. He says the delegates meeting in Mombasa are trying to address some of the challenges.

 

 

"We are talking about Africa, which currently is grappling with issues like fake seeds, and counterfeit seeds," Agan said. "Some people call it counterfeit seeds. We are talking about plant health. How healthy are those certified seeds to be planted in whichever environment? And then we are also talking about the movement of seeds. And that has been one of the greatest elephants in the room in the sense that for seed to move from one country to another has been a very, very big issue."

 

In October 2022, Kenya approved the use of genetically modified organisms after a 10-year ban. However, the lifting of the ban has worried its neighbors who were skeptical of the GMO seeds and products.

 

Tanzania stated that it would monitor its border to prevent any such food from Kenya from entering the country.

 

Charles Miller, a board member of the African Seeds Trade Association, says countries would benefit if they harmonized their policies so seeds could be shipped across borders with no issues.

 

"We work together as an industry to lobby for that harmonization," said Miller. "And by having the ability to, for example, produce seeds in Kenya and ship them readily when it's needed to Tanzania or even to Senegal, under the same rules and regulations, it makes for a much more transparent and clear business model. And it also provides much more security to, to those, the other end of the production scheme."

 

Another issue is a lack of seeds that can thrive in harsh conditions like drought. Justin Rakotoarisaona is the secretary general of the association. He says there is not enough money to support researchers to produce more seeds that can overcome Africa's evolving climate patterns.

 

"For the research, I mean the development of new varieties, there is less and less budget allocated by the public sector to this section, whereas there is no plant variety protection in Africa," said Rakotoarisaona. "There is, but it is very difficult to implement it. And that implies the private sector may not be motivated to produce or to develop variety because there is no return on investment."

 

Charles Miller is also head of strategic alliance for Solynta, a company that specializes in breeding hybrid potatoes, a cross between two inbred potato lines. His company's product, he says, is an example of what advanced seeds can do for African farmers.

 

"We produce hybrid potatoes and deliver those new genetics through a true seed, which is very innovative," said Miller. "And unlike the traditional seed tubers, you can store our seed for long periods of time without cold storage. You can transport them very easily... So the work, the effort, the sustainability angle when using our seeds is significantly higher than the traditional system."

 

For the time being, seed policies across much of Africa are stuck in the status quo.

 

The regional bloc COMESA, the Common Market of Eastern and Southern Africa, has introduced rules to harmonize the seed trade, but only seven out of 21 countries have ratified the regulation.-VOA.

 

 

 

Nigeria: Tinubu Signs Executive Orders to Revamp Oil, Gas Sector

The order will include the Introduction of incentives to stimulate non-associated gas projects, midstream developments, and deepwater ventures.

 

To revitalise Nigeria's oil and gas sector, President Bola Tinubu on Wednesday signed executive orders aimed at attracting investments, optimising resources, and diversifying the nation's economy.

 

Nigeria, as Africa's largest oil producer, has long sought to leverage its vast oil and gas resources for economic development. However, challenges such as bureaucratic bottlenecks, contracting delays, and low local participation have hindered the sector's full potential.

 

 

According to a statement by Special Adviser on Media and Publicity to the president, Ajuri Ngelale, the policy directives were crafted after extensive consultations and benchmarking with global best practices, and are designed to enhance the investment climate, positioning Nigeria as the top choice for oil and gas investments in Africa.

 

"Following extensive engagements, analyses, and benchmarking with other jurisdictions, the President has initiated the amendment of primary legislation to introduce fiscal incentives for oil & gas projects, reduce contracting costs and timelines, and promote cost efficiency in local content requirements. Recognising the urgency to accelerate investments," the statement said.

 

The order will include the introduction of incentives to stimulate non-associated gas projects, midstream developments, and deepwater ventures.

 

It will mandate a reduction of the contracting cycle to expedite project timelines, now set at a swift six months.

 

It will also ensure the application of local content requirements to enhance local involvement without compromising investment attractiveness.

 

Mr Ngelale said the policy reforms were crafted in collaboration with key ministries and agencies such as the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum, Federal Ministry of Budget and Economic Planning, Federal Inland Revenue Service, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Commission, and the Nigerian Content Development and Monitoring Board.

 

The reform is targeted to accelerate Nigeria's economic growth and increase its competitiveness in the global oil and gas market.

 

He said the details of these executive orders will be officially announced by the Federal Ministry of Information and National Orientation, marking a significant step towards a more dynamic and efficient oil and gas sector in Nigeria.

 

He said the special adviser to the president on energy will oversee the implementation of these directives, further emphasising the administration's commitment to driving sustainable growth and development in the energy industry.

 

-Premium Times.

 

 

 

 

Ethiopian Airlines Takes Flight Towards Cost Savings With Boeing 777X

Ethiopian Airlines is set to bolster its financial performance by securing eight Boeing 777X, the latest fuel-efficient variant from the US-based aircraft manufacturer Boeing, with an option for an additional 12 aircraft.

 

Despite the 2019 Boeing 737 Max accident that claimed 157 lives in Addis Ababa, Ethiopian Airlines has emerged as a significant client for Boeing, signaling the carrier's confidence in the manufacturer's offerings.

 

The order for eight Boeing 777X aircraft highlights Ethiopian Airlines' move to augment its fleet size and achieve cost reductions.

 

 

At last year's Dubai Airshow, Ethiopian Airlines committed to 11 787 Dreamliners and 20 737 MAX jets. The airline's preference for the 787-9 variant, part of the Dreamliner family, is notable for its capability to reduce fuel consumption and emissions by 25 percent compared to its predecessors.

 

Post the 737 Max tragedy, Ethiopian Airlines maintains confidence in Boeing's corrective measures, affirming that design flaws have been rectified. This affirmation underscores the carrier's trust in the safety and reliability of the 737 MAX aircraft.

 

Ethiopian Airlines, along with other global carriers, had initially relied on the narrow-body 737 Max to enhance fuel efficiency and increase revenue.

 

Boeing's 777X programme, while attracting significant attention with hundreds of orders worldwide, has faced five years of delays.

 

Ethiopian Airlines is poised to make history as Africa's first carrier to order the Boeing 777X, a testament to the airline's commitment to adopting advanced aviation technologies.

 

Operating Africa's largest Dreamliner fleet, Ethiopian Airlines currently incorporates a mix of 787-8s and 787-9s.

 

-Business Day Africa.

 

 

 

 

Nigerian Lawmakers to Meet Tinubu Over Rising Insecurity

During the meeting, the lawmakers will present a summary of the reports and resolutions of the National Assembly on insecurity since the 8th and 9th assemblies as recommendations for the president.

 

The Senate on Wednesday resolved to schedule a closed-door meeting with President Bola Tinubu to discuss the rising cases of kidnapping, terrorism, banditry and other security challenges in the country.

 

During the meeting, the lawmakers will present a summary of the reports and resolutions of the National Assembly on insecurity since the 8th and 9th assemblies as recommendations for the president.

 

The leadership of the House of Representatives will also be included in the team of lawmakers that will hold the security briefing with the president.

 

 

The resolution was a sequel to a motion sponsored by the senator representing Benue North Senatorial District, Emmanuel Udende.

 

Mr Udende, while presenting his motion, lamented the rising insecurity situation in his constituency, noting that his people are under siege.

 

The senator said about 50 persons were unjustly murdered by bandits in recent attacks in different parts of the north-central state.

 

He specifically raised concerns over the increasing insecurity in Kwande, Ukum, Logo and Katsina-Ala Local Government Areas of the state

 

"My people are under siege. As I talk to you they are attacking them on all fronts and it is going on unabated.

 

"Not fewer than 50 persons have been killed in fresh attacks on several communities in Logo, Katsina-Ala LGAs of Benue state by terrorists parading as herdsmen.

 

"The affected communities, some of them, were recently attacked as of yesterday (Tuesday). The residents of the villages found themselves targeted on a daily basis by heavily armed terrorists and the toll is staggering as they bear the brunt," he said.

 

Mr Udende said despite the various attacks and damages on the communities, the perpetrators are still enjoying freedom.

 

"The perpetrators have remained elusive," he added.

 

He therefore prayed the Senate to mandate the leadership of both chambers of the national assembly to present a summary of the reports of the eighth and ninth assemblies on security to President Tinubu.

 

Mr Udende also urged the service chiefs and the Inspector General of Police, Kayode Egbetokun, to deploy personnel to the affected areas and adopt the use of technology for surveillance.

 

The senator also called on the Nigeria Emergency Management Agency (NEMA) to distribute relief materials to the affected communities.

 

 

Contributions

 

Abba Morro, the Senate minority leader, expressed concern over the continuous increase in insecurity in the country despite several motions and resolutions on the issue in the National Assembly.

 

Mr Moro, who represents Benue South on the platform of the Peoples Democratic Party (PDP), said many of the resolutions in the National Assembly on insecurity have not been effective.

 

"I think the time has come, the prayers are the same all the time, urge security chiefs, urge NEMA and all that and it has not yielded the desired results. We need to be proactive on this matter.

 

"In the ninth senate, an ad hoc committee was set up to review the security architecture, which was done, but unfortunately the recommendations were not implemented.

 

"Some of these bandits hideouts in forests, the mystery is why have we not been able to pick them from these forests. Let's ask our compliance committee to ensure resolutions are implemented" Mr Moro said.

 

The immediate past senate president, Ahmed Lawan, also supported the motion.

 

Mr Lawan, who is the chairman of the Senate Committee on Defence, advised that the Senate does not need to raise another motion on insecurity, but should ensure that security agencies account for the huge sums of money that have been allocated to them to fight insecurity.

 

"One thing is very clear Mr President, this Senate and the National Assembly since I know it has always given a lot of attention and a lot of resources because we believe that within the constraint of our resources, we must do something to improve on funding.

 

"We need to insist on value for money. If we don't have KPIs the resources may simply be frittered away so I believe that going forward security agencies must always account for the resources we give them.

 

"The eighth Senate where I was leader, the ninth Senate where I was senate president, all had a national summit on security and we had very rich reports which we forwarded to the president that time. I believe we should go back, and look at those reports. Our leadership should engage Mr President and come up with those resolutions we passed here in the Senate.

 

"Some citizens will say they want to defend themselves, but what is the purpose of the government? The most important of any government is security, even welfare is second.

 

"The security architecture of Nigeria has failed woefully. We have said in previous assemblies, that this thing was not working and we have to find something that works" Mr Lawan said.

 

The Senate President, Godswill Akpabio, granted the prayers after contributions from the lawmakers.

 

Mr Akpabio, thereafter, directed the Clerk of the Senate, Chinedu Akubueze, to arrange the resolutions of the previous Senate on insecurity for proper documentation and presentation to President Tinubu.

 

"Let me thank you for your insights. As a matter of fact, I think you have almost concluded the debate. The clerk of the Senate should (examine) the reports that were sent to Mr President coupled with the report that we have here based on our motions and observations so we can seek an audience with Mr President to see how to proffer solutions to bring this to an end," Mr Akapbio said.

 

-Premium Times.

 

 

 

 

Rwanda's Exports to China Rose By Over 80% in 2023

Rwanda's exports to China rose by more than 87 percent to a record high $131 million (approximately Rwf 168 billion) in 2023, the Chinese ambassador to Rwanda Wang Xuekun has said.

 

The rise in the exports, according to the embassy, was driven by imports like coffee, tea and dried chilli.

 

ALSO READ: China gets first consignment of dried chili from Rwanda

 

In 2021, Rwanda and China signed a protocol that would allow the former to export dried chili to China. Prior to that, some Rwandan companies had already signed cooperation agreements with Chinese buyers and were hoping for the signing of the protocol.

 

 

For instance, in 2019, Rwandan agribusiness entrepreneur Dieudonné Twahirwa landed a deal to supply 50,000 tonnes of dried chilli worth $100 million every year to China.

 

In addition to this, in 2018, different Rwandan coffee brands debuted on the Chinese online market, particularly selling on Tmall Global, a cross-border import platform of Alibaba.

 

This was made possible by the Electronic World Trade Platform (eWTP), a deal signed between Rwanda and the e-commerce company in 2018, seeking to open doors for small businesses in Africa to take part in the cross-border electronic trade by availing their products to the Chinese market.

 

Besides trade, Xuekun mentioned that Rwanda has become a gateway for many Chinese companies to explore the market of East Africa and wider Africa.

 

"Some examples include Dongfeng Motors, RWK TV, one herbal medicine company, and a shoe factory, etc. They all discovered Rwanda's potential and came on their own. Their presence also gives me a surprise," he noted.

 

"To my knowledge, the Chinese herbal company generates 5 million USD in profits annually. The shoe factory has not been running for long but has already employed more than 1,000 people. They plan to further expand production to sneakers besides slippers, to export to other countries, and want to hire more employees," he added.

 

Rwanda is continuing to grow in terms of attracting Foreign Direct Investment (FDI).

 

According to the Foreign Private Capital (FPC) census report of 2022, the country attracted $399.3 million in 2021, marking a substantial 45.7 per cent increase compared to the $274.1 million registered in 2020.

 

The remarkable growth in FDI can be attributed to favourable investment conditions and the utilisation of both debt and equity instruments, resulting in an 8.5 per cent surge in FDI stocks, which reached $2.9 billion.

 

The report also highlighted that Rwanda's return on investment (ROI) increased to 11.8 per cent in 2021 from 9.7 per cent in 2020, positioning it well above the global average despite the impact of the pandemic.

 

-New Times.

 

 

 

 

Nigeria: 'How CBN Can Track $26 Billion Binance Transactions'

Obinna Iwuno, President of Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), has refuted the Central Bank of Nigeria's (CBN) claim that $26billion in crypto transactions could not be traced.

 

The CBN had raised concerns over the sum of $26 billion that flowed through Binance Nigeria over the past year from "unidentified sources".

 

Iwuno explained that binance, a major cryptocurrency exchange, implements KYC (Know Your Customer) procedures, requiring users to verify their identities before trading.

 

Speaking on Channels TV on Tuesday, Iwuno argued that anonymity is impossible on centralized exchanges like binance due to mandatory KYC.

 

 

He said, "First of all we need to understand how these platforms work, here is KYC system which every platform implements.

 

"On binance, before you could even have an account to trade or perform any activity on binance, you must have done your KYC. That means every single person who had used binance or using binance is known.

 

"The other part also is the fact that these transactions on binance are on the blockchain which are not anonymous. What it means is that the whole world does not have access to your private information and transactions but when the law enforcement or government needs it, it can get it from binance.

 

"We have different cases of frauds, scams involving the Interpol, EFCC and different international police organization. Money floods into binance and the identity of the owner would be revealed.

 

"I am not faulting the CBN position but there are tools available that can be used to trace all of these things and binance cannot claim not to have access to information and transactions that happened on its platform. That is the point I am trying to make, all of these things can be verified and are all traceable.

 

"Several KYC measures they used, most of these crypto platforms use the BVN for KYC and acceptable documents are passport, NIN, drivers licence and permanent voters card.

 

"CBN is saying $26 billion is unidentified but they didn't told us how they arrived at that. I can tell you these things are traceable, you cannot perform transactions on any platform as long as it passes through blockchain that it cannot be traced, and if you use the centralized exchange like binance it is finished because you cannot be on those platforms without your identity known."

 

-Daily Trust.

 

 

 

US House sends $460bn spending bill to Senate, averting partial government shutdown

The US House of Representatives has voted to approve a $467.5bn (£367bn) spending package, the first step in averting a partial government shutdown.

 

Funding for roughly 30% of the federal government - including agriculture, energy, housing and veterans' affairs - is due to expire at midnight on Friday.

 

The House-passed bill now goes to the US Senate, where leaders have vowed to back the measure "with time to spare".

 

But the threat of shutdown looms over Congress once again in just two weeks.

 

On Wednesday, House lawmakers voted 339-85 on the sprawling package of six funding bills, a compromise jointly agreed between House and Senate leaders after months of negotiation.

 

Once it passes the Senate and is signed by President Joe Biden, the 1,050-page piece of legislation would extend the funding available for dozens of federal programmes from 8 March until 30 September.

 

Negotiators, however, have much left to agree on before another funding deadline - on 22 March - for major government agencies such as the defence, homeland security and state departments.

 

Capitol Hill has been embroiled in bitter spending fights for the past six months between Republicans, who run the House, and Democrats, who lead in the Senate.

 

House Speaker Mike Johnson has had his work cut out for him by an increasingly narrow Republican majority and, more recently, by conservative rebels.

 

With the country $34.4tn in debt, the right-wing House Freedom Caucus has demanded spending cuts that often go much deeper than what their Democratic colleagues would accept.

 

But Mr Johnson told reporters on Wednesday that Republicans "have to be realistic about what we're able to achieve" with their wafer-thin majority.

 

As has become the case with recent spending measures, he had to turn to Democrats for the votes needed to pass the bill.

 

It is a move that contributed to the dramatic ousting of his predecessor, Kevin McCarthy, last year.

 

As many as 83 Republicans voted against the bill on Wednesday, with the Freedom Caucus issuing a statement that it "punts on nearly every single Republican policy priority", including immigration.

 

"Republicans will go around and talk about how they scored major wins, how they somehow delivered for the American people," Texas congressman Chip Roy said on the House floor. "The fact of the matter is we did no such thing."

 

While the Speaker touted 6% of spending cuts to the FBI, a 10% cut to the Environmental Protection Agency and a 7% cut to the Bureau of Alcohol, Tobacco, Firearms and Explosives, it was the Democrats who celebrated the final product.

 

Rosa DeLauro of Connecticut told reporters her party had managed to prevent cuts to food and nutrition programmes. They also defeated a Republican effort to defund expanded access to abortion pills.

 

"This legislation does not have everything either side may have wanted, but I am pleased that many of the extreme cuts and policies proposed by House Republicans were excluded," she said.

 

By Wednesday night, the Senate had begun deliberating over the bill and was expected to approve it without significant opposition.

 

The breakthrough comes at an opportune time for President Biden, who will deliver his State of the Union address to Congress on Thursday.-BBC

 

 

 

 

 

Online gambling firm Bet365 probed in Australia

Australia's financial crime watchdog has launched an investigation into UK online gambling firm Bet365 over its compliance with anti-money laundering and counter-terrorism financing laws.

 

The Australian Transaction Reports and Analysis Centre (Austrac) had ordered an external audit of the firm in 2022.

 

Bet365 did not immediately respond to a BBC request for comment.

 

The industry has come under increased scrutiny after online betting surged in during the pandemic.

 

"Businesses without adequate processes in place to manage those risks leave themselves vulnerable to exploitation by criminals," said Brendan Thomas, the CEO of the Australian Transaction Reports and Analysis Centre (Austrac).

 

Austrac investigates banks, casinos and betting companies to make sure they have robust compliance systems to prevent them from profiting from the proceeds of crime.

 

Ladbrokes owner Entain has also been probed in Australia since 2022, while another rival Sportsbet is facing an external audit.

 

Under Australian law, firms are required to assess customers and monitor their financial transactions in order to identify, mitigate and manage the risk that they might be engaging in money laundering or financing terrorism.

 

Any companies found by Austrac to have weak compliance systems could be fined.

 

In recent years the watchdog has hit major lenders Westpac and Commonwealth Bank of Australia with large fines for breaches of the anti-money laundering and counter-terrorism financing laws.

 

The online betting industry also faces other challenges in Australia such as new laws banning the use of credit cards for online gambling and stricter federal government rules on adverts.

 

Last year, Bet365 reported a significant loss but its chief executive Denise Coates was paid around £221m.

 

That was £7m higher than the previous year and Ms Coates also received at least £50m worth of dividends.

 

The pay bump means that her total salary over the past four years surpassed £1bn.

 

Ms Coates founded the Bet365 website in a portable building in a Stoke-on-Trent car park more than 20 years ago. It is now the biggest private sector employer in the UK.

 

She is thought to be one of Britain's richest women and among the best-paid executives in the world.--BBC

 

 

 

Ex-Google engineer charged with stealing AI secrets

A former Google software engineer has been charged by the US with stealing trade secrets about artificial intelligence (AI) while secretly working for two Chinese companies.

 

Linwei Ding, also known as Leon Ding, was indicted in California on four charges and arrested on Wednesday.

 

The Chinese national allegedly stole more than 500 confidential files.

 

If convicted he faces up to 10 years in prison and $250,000 in fines on each count.

 

A lawyer for Mr Ding could not be identified to comment on the case, local media reported.

 

The information he is accused of taking relates to the infrastructure of Google's supercomputing data centres, which are used to host and train large AI models.

 

According to the indictment, Mr Ding was hired by Google in 2019 and his responsibilities included developing this software.

 

He allegedly began uploading information stored in Google's network to a personal Google account in May 2022. These uploads continued periodically for a year, the indictment reads.

 

Meanwhile, he is said to have spent several months in China working for Beijing Rongshu Lianzhi Technology - a start-up tech company that approached him. The indictment says he was offered $14,800 (£11,620) per month to be the company's Chief Technology Officer.

 

He is also alleged to have started his own tech firm, Shanghai Zhisuan Technology, which had a focus on AI and machine learning, and made himself the CEO.

 

The BBC has contacted Rongshu, while Zhisuan could not be immediately reached for comment.

 

Prosecutors allege Mr Ding never told Google about his work for either company.

 

The indictment states that he applied to a China-based organisation to help develop this business and presented it at an investor conference in China in November 2023.

 

The following month, he was flagged by Google trying to upload more files to his personal computer while in China, but Mr Ding told Google's investigator it was to provide proof that he worked for the tech giant.

 

When he returned to the US and without Google's knowledge, Mr Ding is said to have booked a one-way ticket from San Francisco to Beijing, before resigning on 26 December.

 

Days later, Google once again became suspicious after learning about his actions at the conference and suspended his access - searching his activity history to reveal the unauthorised uploads.

 

Google spokesman José Castañeda said the company has "strict safeguards to prevent the theft of our confidential commercial information and trade secrets," adding that the company quickly alerted the authorities when it found evidence of alleged wrongdoing.

 

Is it possible to regulate artificial intelligence?

Why making AI safe isn't as easy as you might think

US Attorney General Merrick Garland said in a statement on Wednesday that Linwei Ding was seeking to enrich himself by covertly working for companies that were "seeking an edge in the AI technology race".

 

"The Justice Department will not tolerate the theft of artificial intelligence and other advanced technologies that could put our national security at risk," Mr Garland said.

 

FBI Director Christopher Wray said Mr Ding's alleged actions "are the latest illustration of the lengths" companies in China will go to, "to steal American innovation".

 

The US and China have been engaged in a bitter trade battle in recent years, with both sides attempting to gain a competitive edge over the other.

 

The dispute has seen both countries impose tariffs on hundreds of billions of dollars' worth of one another's goods.

 

Trade relations have worsened under the Biden administration, with the two sides imposing new barriers on trade, including restrictions on computer chip exports.-BBC

 

 

 

 

Households are worse off since the last election, says the IFS

Tax cuts announced in Wednesday's Budget will not make up for the impact of tax increases and rising prices, a leading think tank has said.

 

The Institute for Fiscal Studies (IFS) said households would be worse off at the election, expected this year, than they were at the start of this parliament.

 

The chancellor has announced a cut to National Insurance worth £10bn.

 

Despite that, this will be a record tax-raising parliament, the IFS said.

 

Chancellor Jeremy Hunt tried to strike an optimistic note as he spelt out the government's strategy on tax and spend for what could be the last time before the country goes to the polls. He pointed to upgrades to short-term forecasts saying the UK would soon be "turning a corner" on growth as it has on inflation.

 

The extra leeway afforded by those higher predictions on growth, and a handful of tax-raising measures, allowed him to cut another 2p from National Insurance Contributions (NIC), levied on pay packets throughout the UK, on top of a 2p cut he made in January.

 

He presented it as part of a long-term reform plan to shift the tax burden away from workers designed to encourage people back into work.

 

The cut would benefit millions of workers, the IFS said, with those on just above average earnings gaining a total of £1,000 a year from the two NIC cuts put together.

 

But they only mean the government is giving back "a portion" of the money taken away through other tax changes, the IFS said.

 

The government's earlier policy of freezing tax thresholds means that people are seeing a higher proportion of their salary taken in tax.

 

The precise pattern of gains and losses following the tax changes varies depending on income.

 

In the upcoming financial year an average earner would enjoy a tax cut of about £340, and people earning between £26,000 and £60,000 will be better off, the IFS said.

 

However by 2027 the average earner would be only £140 better off, and only people earning between £32,000 and £55,000 a year would be better off from the combined tax changes.

 

Graphic showing joint effects of NI cuts and tax threshold changes

"The big picture on tax remains much the same," said IFS director Paul Johnson. "This remains a parliament of record tax rises.

 

"Overall, for every £1 given back to workers (including the self-employed) by the NICs cuts, £1.30 will have been taken away due to threshold changes between 2021 and 2024, with this rising to £1.90 in 2027."

 

Labour leader Sir Keir Starmer said the government's strategy was to "give with one hand, and take even more with the other".

 

The state of the economy, and more importantly how people feel about their own personal finances, is under the spotlight as battle lines are drawn up for a general election that must be called before next January.

 

Conservatives will be hoping that the Office for Budget Responsibility's slight upgrade to the growth forecasts for this year - from 0.7% to 0.8% - and for next year - from 1.4% to 1.9% - will help change the narrative after recent economic data showing the UK went into recession last year.

 

But the upgrades are not large and fall away after two years. The IFS said overall the picture on living standards remained "dismal".

 

line

Read more on Budget

 

A summary of the key points

What does the Budget mean for you?

How much will the National Insurance cut save me?

Child benefit to be paid to more families

line

Before the Budget the IFS urged the chancellor not to cut taxes as without a substantial improvement in growth, it would result in a severe squeeze on some areas of public spending in the years ahead, including the criminal justice system and local government.

 

Mr Johnson said the chancellor's strategy still implied "substantial cuts to funding of many public services which are clearly struggling with their current level of funding".

 

Mr Hunt defended the squeeze on public spending as realistic if schools, hospitals and the police deployed automation, artificial intelligence and drones.

 

The IFS provides a verdict on the chancellor's Budget every year, analysing what his policy strategy is likely to mean for the economy and people's incomes.

 

The official forecasts on economic growth are provided alongside every Budget by the Office for Budget Responsibility (OBR), the government's official independent economic forecasting body. Although forecasts can be derailed by anything from geopolitics to government policies, they provide a rolling basis for assessing the state of the public finances.

 

With the government's newly announced measures taken into account, the OBR now expects borrowing to rise slightly in the next financial year, before remaining broadly in line with previous forecasts. It would fall below 3% of GDP by 2025-26, meeting one of the fiscal rules the government has set itself.

 

Graphic showing public sector net debt as a percentage of GDP

Overall the country's debt, measured against the size of the economy, is still set to rise over the next four years, before falling back marginally in the fifth year, thereby meeting another of the government's fiscal rules.

 

However, debt as a proportion of GDP will still be 92.9% in 2028-29, higher than the 89% it is expected to be this year.-BBC

 

 

 

 

 

 

 

 

 


 


 


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virtual (escrow platform)

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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 constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from s believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent 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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