Major International Business Headlines Brief::: 20 March 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  20 March 2024 

 


                                                                                  

 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  West Africa: Cocoa Beans Are in Short Supply - What This Means for Farmers, Businesses and Chocolate Lovers

ü  Kenya Set to Host Fourth Edition of Amcham Business Summit

ü  Kenya's Cost of Living to Fall Further On Lower Fuel, Food Prices, Strong Shilling

ü  Nigeria's Natep Signs MOU With Lab Four to Create 50,000 Jobs

ü  Liberia: New Mines and Energy Minister Vows to Boost Revenue Generation and Reform Contracts

ü  Liberia: Boakai Submits U.S.$690.2m Maiden Budget

ü  Nigeria's Fuel Subsidy Removal Was Too Sudden - Why a Gradual Approach Would Have Been Better

ü  Ghana: How a Program in Ghana to Create Green Jobs Can Be a Lesson for U.S. Mayors & Across the Globe

ü  Africa: New Study Reports Widespread Forced Labor Abuses

ü  Africa: Why Internet Disruptions Have Rocked Parts of Africa

ü  Liberia: Thousands of Liberians Jobs At Stake

ü  Nigeria: Dangote Begins Distribution of N13 Billion Rice to Vulnerable Nigerians

ü  Gucci sales to fall by 20% due to Asia slowdown

ü  British AI pioneer Mustafa Suleyman joins Microsoft

ü  Job boards are still rife with 'ghost jobs'. What's the point?

ü  Ted Baker jobs at risk as administrators appointed

ü  Japan raises interest rates for first time in 17 years

ü  Unilever is cutting jobs and splitting off its ice cream unit

 


 

 


West Africa: Cocoa Beans Are in Short Supply - What This Means for Farmers, Businesses and Chocolate Lovers

A shortage of cocoa beans has led to a near shutdown of processing plants in Côte d'Ivoire and Ghana, the two countries responsible for 60% of global production. With chocolate makers around the world reliant on west Africa for cocoa, there is significant concern about the impact on the prices of chocolate and the livelihood of farmers. Cocoa researcher Michael Odijie explains the reasons for the shortage.

 

Why has cocoa production declined sharply in west Africa?

 

Three factors are at play: environmental, economic cycle related and human.

 

One environmental factor is the impact of the El Niño weather phenomenon, which has caused drier weather in west Africa. It has contributed to problems on farms, such as the swollen shoot virus disease. As a result, Ghana has lost harvests from nearly 500,000 hectares of land in recent years.

 

The economic cycle of cocoa production refers to the inherent patterns of expansion and contraction in cocoa farming. For example, as cocoa trees age, they become susceptible to diseases, requiring high maintenance costs. Historically, farmers have tended to abandon old farms and start anew in fresh forests. Unfortunately, finding new forests is now increasingly difficult. Perhaps the most severe issue of all is the lack of fair compensation for sustainable cocoa production

 

The human factor includes challenges such as illegal mining, which has overtaken numerous farms in Ghana. Sometimes, farmers lease their land to illegal miners in exchange for payment. These mining activities degrade the quality of the land, making it unsuitable for cocoa cultivation.

 

 

The global market for chocolate and chocolate products is on the rise. It is projected to grow faster than 4% annually over the next few years. This growing demand for cocoa underscores the urgency in addressing the intertwined issues that relate to the industry's sustainability.

 

Have west African governments intervened to help cocoa farmers?

 

In February 2024, the Ghana Cocoa Board (Cocobod), regulator of the country's cocoa sector, secured a World Bank loan of US$200 million to rehabilitate plantations affected by the cocoa swollen shoot virus. The board will take over the disease-ridden farms, remove and replace the afflicted cocoa trees, and nurture the new plantings to the fruiting stage before returning them to the farmers.

 

This practice of Cocobod taking out loans to assist farmers is a longstanding one in Ghana. For instance, in 2018, Cocobod used part of a $600 million loan from the African Development Bank to rehabilitate aging plantations and those hit by diseases. And at the start of the current harvest season in October, the producer price was raised: farmers are paid more, a move made inevitable by the surge in global prices. Also, Ghana Cocobod has established a task force to shield cocoa farms from the harmful impacts of mining. It has cooperated with police to stem the smuggling of cocoa to neighbouring countries, particularly those that offer a stronger currency.

 

In Côte d'Ivoire, relatively little action has been taken. It appears the government is still assessing the situation. But there have been measures to curb smuggling of cocoa, prompted by the fact that the shortage is driving up prices in neighbouring countries. Côte d'Ivoire does benefit from numerous sustainability programmes initiated by multinational corporations. The current shortage has accelerated these initiatives. Regrettably, some of the programmes do not disclose their data, making it difficult for academics to access and analyse their information.

 

African governments have yet to address significant structural issues in their interventions.

 

How have cocoa farmers and cocoa-producing countries' economies been affected?

 

At the farm level, although the rise in prices may initially appear beneficial to farmers, the reality is not straightforward. A decrease in output leads to fewer harvests on average, which means that, overall, farmers are not earning more. This issue is compounded by recent economic challenges in west Africa, such as high inflation and currency devaluation, particularly in Ghana. These factors have resulted in farmers becoming poorer.

 

Another impact of the output decline is a reduction in local processing. Major African processing facilities in Côte d'Ivoire and Ghana have either ceased operations or reduced their processing capacity because they cannot afford to purchase beans. This likely means that chocolate prices worldwide will surge. This, in turn, adversely affects the local production units that have been emerging in recent years.

 

However, the bargaining power of west African cocoa-producing countries seems to have increased. Now is an opportune moment for these nations to unite and negotiate more favourable terms for their cocoa farmers.

 

Will chocolate makers eventually turn to cocoa alternatives?

 

It's inevitable because continuing to cultivate cocoa under current conditions is unsustainable. I don't perceive this negatively; I hope it occurs sooner rather than later. In fact, it is already underway with the rise of cocoa butter equivalents, cocoa extenders and artificial flavours (synthetic or nature-identical flavours that mimic the taste of chocolate without the need for cocoa).

 

The German company Planet A Foods is a leader in this area. It produces cocoa-free chocolate, using technology to transform ingredients such as oats and sunflower seeds into substitutes for cocoa mass and butter.

 

Overall, this is beneficial for everyone. The demand for cocoa has resulted in mass deforestation and significant carbon emissions, issues that are likely to worsen due to climate change. Moreover, the push for cultivation has led to various forms of labour abuses. Exploring cocoa alternatives is certainly part of the solution.

 

 

 

 

Kenya Set to Host Fourth Edition of Amcham Business Summit

Kenya's capital, Nairobi, will host the fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit on April 24-25, 2024.

 

The event, a key platform for bolstering bilateral trade and investment ties among the United States, Kenya, and East Africa, is expected to draw close to 1,000 delegates, comprising business and government representatives from the US and across the East African region.

 

Kenya's President William Ruto will lead a government delegation aiming to broaden commercial opportunities and markets. The event also anticipates the presence of several high-ranking US government officials.

 

The summit will precede a state visit by President Ruto to Washington DC in May where he will discuss ways to bolster cooperation in areas including trade and investment with his host Joe Biden.

 

Highlighting the significance of the summit, AmCham's Board President, Peter Ngahu, stressed its role in exploring avenues for sustainable and inclusive growth, along with enhancing investment in Kenya and the broader East African region.

 

"As we commemorate years of mutual value and interests, the AmCham Business Summit emerges as a beacon of opportunity. We eagerly anticipate delving into strategies to leverage these opportunities while maintaining our commitment to fostering investments in East Africa," said Ngahu.

 

Encouraging delegates to confirm their attendance, AmCham's CEO, Maxwell Okello, underlined the platform's potential to unearth extensive trade and investment prospects, fostering economic advancement and prosperity across the region.

 

 

"The summit offers an invaluable forum to explore the expansive trade and investment horizons that lie ahead, thereby driving economic growth and prosperity throughout our region. We are excited to assemble the business community to map out a trajectory toward enhanced cooperation in pivotal areas such as trade, investment, technology, sustainability, healthcare, and economic growth, all the while cultivating meaningful partnerships between businesses and nations," he said.

 

The summit agenda will encompass a diverse array of topics crucial to the region's economic progress, including discussions on shaping the future of US-East Africa trade and investment, climate action, digital transformation, and sustainable finance for East African economies.

 

According to the East Africa Economic Outlook by the African Development Bank, East African economies are poised to exhibit the highest regional economic performance on the continent, with growth projections exceeding five percent.

 

However, despite this anticipated growth, East African economies confront persistent challenges to trade and investment, including issues such as illicit trade, counterfeiting, currency fluctuations, and inflation, which hinder the region's business environment.

 

In 2022, the United States emerged as Kenya's primary export market, with approximately $890 million worth of goods exported to the US Similarly, America exported goods valued at around $600 million to Kenya, reflecting a relatively balanced trade relationship.

 

-Business Day Africa.

 

 

 

 

Kenya's Cost of Living to Fall Further On Lower Fuel, Food Prices, Strong Shilling

Kenya is poised for a sustained decline in inflation, propelled by a consecutive three-month downturn in fuel and food prices alongside a robust shilling, offering respite to consumers grappling with a soaring cost of living.

 

The dip in fuel costs coincides with a notable decrease in other commodities, mainly food, over recent months.

 

For instance, Kenya's staple meal, a two-kilo packet of flour, has plummeted from a peak of Ksh230 to an average of Ksh140, with sugar seeing a decline from Ksh430 to Ksh390 for the same quantity.

 

Given the significant portion of the inflation basket that food represents, these developments hold substantial sway in shaping the overall cost of living in the nation.

 

 

 

 

Nigeria's Natep Signs MOU With Lab Four to Create 50,000 Jobs

Industry Minister, Doris Uzoka-Anite, says the pact between NATEP is planned to ultimately yield one million jobs.

 

The Federal Ministry of Industry, Trade and Investment today announced a landmark Memorandum of Understanding (MOU) between the National Talent Export Programme (NATEP) and Lab Four, set to create substantial employment opportunities by outsourcing 50,000 jobs to Nigeria.

 

The Minister of Industry, Trade and Investment, Doris Uzoka-Anite described this MOU as a major milestone aligned with President Bola Ahmed Tinubu's Renewed Hope Agenda.

 

"This initiative cements our commitment to diversifying the economy and forging a Nigeria known globally as a nation of creators," she stated during the signing ceremony in Abuja." We envision Nigeria as a pivotal global hub for service exports and talent sourcing," she said.

 

 

Mrs Uzoka-Anite described NATEP as Nigeria's "strategic answer to the burgeoning global talent sourcing market, valued at US$620.381 billion in 2020 and projected to grow to US$904.948 billion by 2027. Our mission is to tap into this lucrative industry, showcasing Nigeria as a powerhouse of high-quality talent for the global service export and outsourcing industry."

 

Tony Okhiria, the CEO of the Cybersecurity Institute at Lab Four, expressed his enthusiasm for the partnership: "This program is monumental because it allows Nigeria to accelerate its talent export much quicker. We are eager to disrupt the traditional BPO process and look forward to a fruitful collaboration."

 

Femi Adeluyi, the national coordinator of NATEP, highlighted the programme's innovative approach, emphasizing its potential to democratize the BPO sector and create a scalable model for job creation.

 

 

The signing ceremony also featured remarks from John Dohan, representing the Chargé d'Affaires ad interim for the U.S. Embassy, who lauded Nigeria's human resource as the nation's greatest export.

 

The NATEP initiative aims to delmillione million service-export jobs over the next five years, boost foreign exchange earnings, stimulate economic growth, and enhance Nigeria's brand on the global stage. It will focus on key "IMPACT" sectors: Insurance, Medical, Professionals, Artisans, Creative, and Technology.

 

The Minister also took the opportunity to launch the NATEP Strategy document, a comprehensive plan to strengthen Nigeria's position as a global hub for talent exports and BPO.

 

The collaboration between NATEP and Lab Four is poised to catalyze the growth of micro, mini, and mega BPOs within Nigeria, contributing up to $1.2 billion annually to the Nigerian economy.

 

ABOUT NATEP

 

The National Talent Export Programme (NATEP), launched on September 22, 2023, at the 78th United Nations General Assembly, is a strategic initiative designed to leverage Nigeria's vibrant human capital to create one million jobs and significantly boost the country's foreign exchange earnings. NATEP aims to position Nigeria as a premier global hub for service exports, talent sourcing, and talent exports.

 

Endorsed by President Bola Tinubu and spearheaded by the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, NATEP responds to the global demand for talent and skills outsourcing, a sector dominated by countries like India, Bangladesh, Mexico, and the Philippines. NATEP's mission is to drive economic development and diversification, increasing Nigeria's foreign exchange earnings and strengthening the Nigerian brand on the international stage.

 

NATEP's strategy involves a collaborative approach, engaging various stakeholders across sectors including education, finance, communications, digital economy, labor, employment, and youth. The programme is focused on creating a talent pipeline from various skilling programmes, bridging skill gaps, and connecting Nigerian talents to global job opportunities.

 

Targeting the "IMPACT" sectors--Insurance, Medical, Professionals, Artisans, Creative, and Technology--NATEP is setting a precedent for the future of business process outsourcing and talent export. With eight pillars including policy support, skills and talent pipeline, infrastructure and innovation, partnerships, talent export facilitation, promotion, branding, finance, incentives, and monitoring, NATEP is geared towards a transformative impact on Nigeria's economic landscape.

 

-Premium Times.

 

 

 

Liberia: New Mines and Energy Minister Vows to Boost Revenue Generation and Reform Contracts

Monrovia — Mines and Energy Minister, Wilmot Paye, says his major task is to ensure that the Ministry effectively plays its actual role as a serious revenue generator for the government to service development priorities.

 

Speaking when he addressed his staff during the first general staff meeting on his watch as Mines and Energy Minister, Paye, former Chairman of the ruling Unity Party said his assessment thus far proved that the significant role for which the Ministry of Mines and Energy was established has shrunk and in his views, is denying the country of needed revenue to achieve development goals. Pointing out specifics, Minister Paye said the lack of ensuring that mining contracts benefit local communities, and professional monitoring of agreements enshrined in Mineral Development Agreements (MDAs), is not serving the country well but rather prioritizing the interests of foreign businesses.

 

 

He assured that his team of Ministers will not relent on reviewing all mining contracts to bring them into full compliance with the Mineral and Mining Laws. Minister Paye, expounding on the energy sector said, his team understands the real issues and when the rest of the Ministers are confirmed by the Liberian Senate, the story will change and the public will be witnesses to the results. Minister Paye emphasized that as one of the government's revenue engines, will prevail on the budget process to get the required support to properly implement its functions.

 

The former Chairman of the Unity Party told employees of the Ministry of Mines and Energy that his team of Ministers will not target any individual staff but the noted that where change is needed will be applied to boost the effectiveness of the Ministry. "Government job is not about residency, but efficiency and effectiveness," Minister Paye averred. Most of the Ministry of Mines and Energy employees during their interaction with their new Boss was the lack of needed working tools, and poor salaries which they described as "the least" among government ministries. Addressing this issue, Minister Paye told his staff that his administration will explore avenues aimed at ensuring that professionals working at the Mines and Energy Ministry earned justly in line with their qualifications and competence.

 

 

The Ministry's offices located in Old Road community; the Liberia Hydrological Service (LHS), and Liberia Geological Survey (LGS), are key in Minister Paye's reform agenda which he said his first approach will be to bring them to the head-office on Capitol Hill, central Monrovia. He assured that those two important components of the Ministry of Mines and Energy will be equipped for better service delivery. Paye comes to the post of Minister of Mines and Energy as a Geologist and hopes are high that he will turn the corner in putting Liberia on par with regional counterparts in the mining and energy sectors. His nine co-workers who have had confirmation hearings are awaiting decision by the Liberian Senate to receive the marching order to begin official duties as Deputy and Assistant Ministers.

 

They include, William Hines, Deputy Minister designate for Operations, Eudora Blay Pritchard, Deputy Minister designate for Administration, Charles Umehai, Deputy Minister designate for Energy, and Fahnseh Mulbah, Deputy Minister designate for Planning. The Assistant Ministers designate are Cooper Paasewe - Administration, Carlos Edison Tingban - Mines, Emmanuel Vaye - Planning, and Oliver Gbegbe - Mineral Exploration. If confirmed by the Liberian Senate, they will complete Minister Wilmot Paye's team to superintend the mineral and energy sectors of Liberia.

 

-FrontPageAfrica.

 

 

 

 

Liberia: Boakai Submits U.S.$690.2m Maiden Budget

President Joseph N. Boakai has presented his government's maiden national budget for the year 2024, amounting to US$690.2 million, for consideration by the House of Representatives. The budget submission was made by the Ministry of Finance and Development Planning, led by Finance Minister Boima S. Kamara, Deputy Minister Anthony Myers, and Deputy Minister Tanneh G. Brunson. The budget highlights a reliance on domestic revenue, with a small portion coming from external sources.

 

On behalf of the President, the Finance Ministry officials on Thursday, March 14 submitted the budget to the House of Representatives in accordance with the 2009 Public Finance Management Law.

 

The budget, the first for the new Unity Party administration, marks a crucial step in the fiscal planning and governance of the nation.

 

Deputy Minister Myers said during the submission that 93% of the budget will be based on domestic revenue while about seven 7% will be external sources.

 

 

Meanwhile, Deputy Minister Brunson noted that compensation has been reduced from US$305m to US$297.

 

Deputy Speaker Thomas Fallah accepted the budget on behalf of the House of Representatives, which has adjourned for a constituency break until May 10. Despite the break, the House's Committee on Ways, Means, and Finance will review the budget thoroughly during this period.

 

This thorough review process, Fallah said, aims to ensure that each member has the opportunity to scrutinize the budget comprehensively and consult with their constituents effectively.

 

Many expect that the budget will align with President Boakai's vision for the country, which is encapsulated in the acronym "ARREST" (Agriculture, Roads, Rule of Law, Education, Sanitation, Tourism), and emphasizes key areas for development.

 

It is, however, evident that the submission of the 2024 national budget is overdue, as it should have been done since last December.

 

 

However, the 54th Legislature saw it prudent that the scrutiny and passage of the budget submitted by the George Weah administration should be done by the new government, as the transition was just a few weeks away.

 

It was against this backdrop that members of the 55th National Legislature, specifically the House of Representatives, unanimously voted in early January to return the 2024 National Draft Budget to the newly inducted President for realignment on his agenda.

 

Delivering his inaugural address, President Boakai said his government would ensure incentives for agriculture and access to appropriate technologies for farmers, as well as improve market and trade, food storage, and processing, among others.

 

However, the delay in submitting the budget led to government funds running short, prompting the President to sign a spending bill to keep operations running until the end of February 2024.

 

The top priorities in February's US$41.3 million spending bill were compensation or salaries for government employees, which constitutes US$26 million (63%); Debt Servicing, US$5.7 million (14%); the president's 100-day deliverables agenda, US$1,941,210 (5%); and other goods and services, US$2,014,000 (5%).

 

The House subsequently voted unanimously -- granting the President's request for the February spending budget, though to the annoyance of Nimba County District 7 Representative, Musa Bility, who frowned at his colleagues for being hasty in their decision.

 

Bility said there was no report submitted by the President as to how the US$66M that was used by the past regime, requested by former finance minister Samuel Tweah as required in the Public Financial Management Law, used 1/12 of the Budget.

 

"There was no explanation as to why there is no budget by now. There was no explanation as to when we [are] going to have a budget," Bility said in a Facebook live statement. "There is no explanation as to what happened to the first US$66 million."

 

-Liberian Observer.

 

 

 

 

 

Nigeria's Fuel Subsidy Removal Was Too Sudden - Why a Gradual Approach Would Have Been Better

Nigeria removed fuel subsidies entirely in May 2023. This came as a surprise because of the political risks associated with subsidy removal. Previous administrations were reluctant to jettison the subsidies.

 

The subsidies had been in place since the 1970s, when the government sold petrol to Nigerians at a price below cost - though most consumers weren't aware of this.

 

The 1977 Price Control Act made it illegal for some products (including petrol) to be sold above the regulated price. The Olusegun Obasanjo regime introduced this law to cushion the effects of inflation, caused by a worldwide increase in energy prices.

 

 

Fuel subsidies have been controversial in Nigeria, and some analysts see them as inequitable. Very few Nigerians own vehicles. Nigeria is among the countries with the least number of vehicles per capita, with 0.06 vehicles per person or 50 vehicles per 1,000 Nigerians.

 

Read more: Nigeria's fuel subsidy is gone. It's time to spend the money in ways that benefit the poor

 

So critics have argued that the subsidies benefited mainly the elites even though they could afford to buy fuel at market prices.

 

The subsidies were also considered to be a drain on public finances, costing the government US$10 billion in 2022. About 40% of Nigeria's revenue in 2022 was spent on fuel subsidies.

 

Fuel subsidies in Nigeria were notorious for their opacity and graft. Billions of dollars were said to have been lost through corrupt practices in the payment of the subsidies.

 

These are some of the reasons they were removed.

 

 

But now questions are being asked about the way it was done. In a public opinion poll conducted last year, 73% of Nigerians said they were dissatisfied with the manner in which the fuel subsidy was removed.

 

As an economist who has studied the Nigerian economy for over four decades, I can see why the fuel subsidy had to go.

 

As I argued in a previous article, fuel subsidies were bad for the Nigerian economy. They worsened budget deficits and the country's debt profile, encouraged corruption, and diverted resources away from critical sectors of the economy. They were also inequitable, transferring the national wealth to elites.

 

But, as has become clear from the unprecedented inflation in the country partly caused by the removal of fuel subsidies, the abrupt removal of the subsidy was not the best strategy to use.

 

I believe this action should have been staggered over several months. This would have provided a soft landing, and gradually exposed Nigerians to the full market price of fuel. Doing so in one fell swoop amounts to shock therapy that is very traumatic for an already beleaguered and impoverished citizenry.

 

 

Read more: Fuel subsidies in Nigeria: they're bad for the economy, but the lifeblood of politicians

 

Why removing the subsidy should have been gradual

 

The Bola Tinubu administration could have chosen from various mechanisms to minimise the negative impact of subsidy removal.

 

As proposed by the World Bank, a temporary price cap would have ensured that fuel price increases did not inflict too much pain on consumers. This approach would also have enabled the government to significantly reduce, but not eliminate, the fiscal burden of the subsidy.

 

Another approach is periodic price adjustments: setting the price based on a moving average of previous months' import costs. These adjustments could have been made together with a price cap. The Philippines is one country that successfully removed fuel subsidies in the 1990s, using the price adjustment mechanism.

 

Gradually phasing out subsidies would have been a better approach for a number of reasons.

 

Firstly, Nigerians had become suspicious of government's intentions, given their economic experiences with the previous administration of Muhammadu Buhari. Those experiences include high inflation and unemployment rates, rising poverty and insecurity.

 

Tinubu should have re-established government credibility and good intentions first. He could have offered economic succour such as cash transfers and food subsidies for poor Nigerians, wage increases for workers and retirees, scholarships or tuition waivers for indigent students in tertiary institutions, free lunches for primary and secondary students in public schools, and subsidised public transport.

 

After demonstrating he meant well, he should have gradually rolled out the subsidy removal. Nigerians would have been psychologically prepared for what was coming, including inflation.

 

The inflationary impact of subsidy removal would have been less severe. Nigerians would have been more tolerant of difficult economic policies. People will accept difficult economic policies if they know their government is humane and pro-people.

 

Secondly, an incremental approach would have enabled the government to come up with programmes targeted at those most likely to be hurt by subsidy removal. This would have ensured buy-in. The "palliatives" introduced by the Tinubu administration and state governments are temporary and have a limited reach.

 

Gradual subsidy removal would have enabled the government to engage with groups that would be affected by the policy. Groups representing labour, manufacturers, students, women and others could have provided insights into what would be needed to help their members adjust.

 

 

This interactive approach would have promoted transparency and credibility in the conduct of government policies.

 

Many vulnerable Nigerians were already under severe economic pressure. Apart from high unemployment and poverty rates, inflation was biting very hard.

 

The abrupt removal of fuel subsidies, without first putting in place shock-absorbing measures, will make it more difficult for the government to achieve the policy's long-term aims: fiscal sustainability; higher levels of investment in productive sectors of the economy; economic growth; and investment in renewable energy.

 

Read more: Nigeria's transport grant isn't the best way to allocate fuel subsidy savings: here's what is

 

Minimising the negative impact of subsidy removal

 

Tinubu should minimise the negative impact of subsidy removal and liberalisation of the foreign exchange market. These two phenomena interact to cause the inflation that the country is facing.

 

First, savings from ending the subsidy should be used to develop productive capacities in agriculture, labour-intensive manufacturing and services.

 

Manufacturing activities like agro-processing, textiles, footwear, leather products, arts and crafts should be targeted for development. This would generate high-paying jobs that might help Nigerians to cushion the effects of inflation.

 

In an economy that's functioning well, wages always adjust to reflect price increases. In Nigeria, however, too many people are either unemployed or in the informal sector, with limited opportunities to adjust their earnings to reflect inflation.

 

Funds saved from subsidy removal should be invested in public infrastructure (mass transportation, road construction, electricity generation, water supply).

 

Funds should also be used to develop people's capabilities through massive investment in health and education. Part of the savings should be used to support and sustain the student loan programme announced by the Tinubu administration.

 

Successful radical economic reforms, such as the ones implemented in Rwanda, usually give people an incentive to be more productive, creative and innovative. But policies that are punitive, with marginal or no benefits, are unlikely to succeed.

 

It remains to be seen whether Tinubu's economic policies will spur sustained and inclusive economic growth, as well as alleviate poverty.

 

Stephen Onyeiwu, Professor of Economics & Business, Allegheny College

 

 

 

 

Ghana: How a Program in Ghana to Create Green Jobs Can Be a Lesson for U.S. Mayors & Across the Globe

For the past eight years, Chiso has collected waste as part of Accra's informal waste management sector. Since arriving in Ghana from Nigeria, he has earned enough to allow him and his family to survive, but saving money has been nearly impossible.

 

For Chiso, accessing the formal labor market has been challenging due to factors like obtaining a national ID. Without access to a formal job, Chiso has no negotiating power, leaving him at the mercy of fluctuating market prices and aggressive competitors, jeopardizing his health and livelihood.

 

For years, Accra has faced two concurrent trends: the arrival of displaced people like Chiso into the city from elsewhere in the country and West Africa, and a growing need for workers in green jobs to make the city cleaner, healthier and safer. Many displaced people in Accra, like most other cities, struggle to find good-paying jobs.

 

 

At the same time, Accra grapples with improper waste management - the World Bank estimates that around 20,000 Ghanaians die prematurely each year from poor water, sanitation and hygiene, most of them living in Accra,

 

Teaming up with the Mayors Migration Council, the Accra Metropolitan Assembly devised a solution to tackle both of these issues at once, and turn what could be seen as a challenge into the opportunity to build a greener, more inclusive city: we would help migrant workers enroll in formal waste cooperatives, while helping fill gaps in the city's waste management value chain.

 

Since the program's launch last year with support from the Global Cities Fund for Migrants and Refugees, we've successfully established a cooperative of 40 waste workers and assisted over 250 people in situations similar to Chiso's register for national health insurance.

 

 

We also convened national and city authorities to advocate for nationwide policy changes to make it easier for migrants to access jobs by simplifying requirements for national identification and other services.

 

And we're alleviating the daily strains that migrants in Accra face, such as creating a child care center in a major hub for informal waste workers to provide safe spaces for children away from the hazardous sites where their parents work.

 

This program not only demonstrates what happens when funds are given directly to the governments closest to the people, but also illustrates how migrants can fill employment gaps, contributing to greener and more inclusive cities. And it can be done anywhere in the world - including in the U.S.

 

 

Like Ghana, many cities have large numbers of migrants eager to work in the formal economy, coupled with a shortage of workers to take on green jobs. In the U.S. this is particularly the case following recent investments from the Inflation Reduction Act that will boost the green labor market with more than 1.5 million new clean energy jobs by 2030.

 

Given the large scale of labor demands, this could result in a worker shortage. But migrant workers could play an important role in accelerating the green transition by filling skills gaps and labor needs like those that are expected in the U.S. in the next few years. We believe that mayors across the U.S. and the globe could also develop win-win programs that match migrants who want to work with jobs that cities need to fill.

 

Several U.S. mayors for example, including Mayor Ron Nirenberg in San Antonio, Mayor Kate Gallego in Phoenix, Mayor Karen Bass in Los Angeles, Mayor Mike Johnson in Denver, and Mayor Brandon Johnson in Chicago, have already been champions for migrants in their communities.

 

In these cities, migrants constitute a large proportion of the workforce in rapidly growing green industries like waste management and manufacturing.

 

As the number of migrants and displaced individuals seeking refuge in cities continues to rise in the U.S. and worldwide, there's a need to support the mayors embracing them as active contributors to the transition to a green economy. Despite doing more with less, mayors often lack access to the funding and resources needed to implement solutions like Accra's at scale.

 

Accra's green jobs program serves as a model for the effectiveness of directly funding mayors who know their cities' needs and opportunities best. We call on the philanthropic community to join us and lead by example by localizing their giving and investing directly in cities, and we call on mayors across the world to consider how they can create win-win opportunities for migrants and their city's economies.-IPS.

 

 

 

 

Africa: New Study Reports Widespread Forced Labor Abuses

Forced labor generates $236 billion a year in illegal profits, a dramatic increase of $64 billion since 2014, a new study by the International Labor Organization reported on Tuesday.

 

The study said the increase is due to a growing population of people forced into labor and the correlation between higher levels of exploitation and higher profits. Traffickers and criminals who use forced labor can generate around $10,000 per victim.

 

The most prevalent use of forced labor is commercial sexual exploitation, the study found. While accounting for 27% of the total number of forced labor victims, forced sexual exploitation accounts for 73% of total illegal profits. Nearly four in five of those victims were girls or women, the United Nations labor agency said, with children accounting for over a quarter of total cases.

 

 

The International Labor Organization, or ILO, reported that approximately 85% of those affected by forced labor were engaged in "privately imposed forced labor," encompassing practices such as slavery, serfdom, bonded labor and certain forms of begging in which the proceeds benefit someone else. The rest were in forced labor imposed by government authorities, such as prison labor, which was not included in the ILO study due to limited data.

 

"The ILO certainly decries instances of state-imposed forced labor wherever they occur, whether that's in prison systems or the abuse of military conscription or other forms or manifestations of state and post forced labor," said Scott Lyon, an ILO senior policy officer.

 

While the European Union's parliament is close to enacting rules to combat forced labor, the global community is not close to accomplishing the U.N. goals to eradicate forced labor by 2030.

 

ILO Director-General Gilbert Houngbo urged international cooperation to deal with the pressing issue.

 

"People in forced labor are subject to multiple forms of coercion, the deliberate and systematic withholding of wages being amongst the most common," he said in a statement. "Forced labor perpetuates cycles of poverty and exploitation and strikes at the heart of human dignity.

 

"We now know that the situation has only got worse," Houngbo said.

 

Some information for this report came from The Associated Press.

 

- on VOA.

 

 

 

 

Africa: Why Internet Disruptions Have Rocked Parts of Africa

Damages on multiple undersea telecommunication cables are the cause of a far-reaching connection outage that rocked parts of the African continent last week, with operators and Internet watch groups warning that the situation could take weeks if not months to fix, The East African reports.

 

ALSO READ: Canalbox submarine cable cuts disrupt internet access in Rwanda, Africa

 

As of the close of Friday, at least eight countries in the continent had reported major connectivity issues even as details regarding the cause of the sub-sea cable damages remained scanty.

 

 

According to reports by global media networks, the cable lines affected included the West Africa Cable System (WACS), MainOne, South Atlantic 3 and ACE sea cables--all of which are regarded as key continental arteries for telecommunications data.

 

MTN Group Limited, which is a prominent wireless carrier in Africa, however, said ACE and WACS had jointly initiated the repair process and at the close of Friday, they were expected to send a vessel to fix the damaged cables.

 

ALSO READ: Govt launches new program to connect all schools to internet by 2024

 

Among countries that took the biggest hit included Côte d'Ivoire, Liberia and Benin while Ghana, Nigeria, Cameroon and South Africa reported mild disruptions.

 

Others affected included Burkina Faso, Gambia, Guinea, and Niger.

 

According to cybersecurity and Internet connectivity tracker Netblocks, connectivity in Côte d'Ivoire was down to around just four percent on Thursday morning, while Liberia at one point dropped to 17 percent as Benin and Ghana dropped to lows of 14 percent and 25 percent respectively.

 

Ghana's National Communications Authority said cable disruptions also occurred in Senegal and Portugal.

 

"This has led to a significant degradation of data services across the country, with mobile network operators working around the clock to restore full services," the authority said.

 

An unnamed spokesperson at Internet analytics firm Cloudflare was quoted by international media outlet Bloomberg as saying the technicians would need to first assess the extent of damage before commencing repair works, a process that would take a sizeable duration of time.

 

"Repairs can take weeks to months, depending on where the damage is, what needs to be repaired, and local weather conditions. The assignment of repair ships depends on several factors, including ownership of the impacted cables," the spokesperson is quoted as saying.

 

 

By the close of the week, there were widespread fears that, if unchecked, the disruptions could hit essential services, especially in the worst-hit countries like Côte d'Ivoire where the effects were severe.

 

Africa leads mobile device web traffic in the world, with many of the continent's businesses relying on the Internet to deliver services to their customers, a pointer to the devastating impact that a total outage could potentially result in.

 

Ghana's main stock exchange was, for example, reported extending trading hours by 60 minutes on Thursday and Friday, while Nigeria's second-largest cement manufacturer is said to have scrapped a call with investors as the damage to the cables obstructed business operations in multiple nations.

 

The impact of such cable failures worsens as networks attempt to route around the damage, potentially reducing the capacity available to other countries.

 

The latest disruption comes just under a month after three telecommunications cables were severed in the Red Sea, which is a core telecommunications route that connects Europe to Africa and Asia via Egypt, highlighting the vulnerability of critical communications infrastructure.

 

The cable cutting, which impacted about 25 percent of traffic between Asia and Europe as well as the Middle East, affected four major telecoms networks.

 

Underwater cables are the invisible force driving internet use globally, with many in recent years being funded by giant tech multinationals that include Google, Meta, Microsoft and Amazon.

 

Most large telecom firms rely on multiple undersea cable systems, allowing them to re-route traffic in the event of an outage to ensure uninterrupted service.

 

Some of the natural causes that can cause damage to these networks include earthquakes as happened in Taiwan in 2006.

 

-New Times.

 

 

 

Liberia: Thousands of Liberians Jobs At Stake

Monrovia — Thousands of Liberians working in the rubber sector find their jobs at stake amidst repeated calls for lifting Executive Order # 124, which bans the exportation of unprocessed rubber out of the country.

 

A rough estimate of Liberians currently employed by the six rubber processing companies operating here, including Cavalla, Firestone Liberia (FSLB), Liberia Agriculture Company (LAC), Jeety Rubber, and Lee Group, is 20,000. Firestone has the largest number of employees, followed by LAC.

 

In separate meetings held last week with the Joint Legislative Committee on Agriculture and government officials, including Liberia's new Justice Minister and Attorney General Oswald Tweh and Commercial Minister Amin Modad, the Liberia Agriculture Companies Association (LACA) comprising the six rubber processing companies and the Rubber Planters Association of Liberia expressed fears that the lifting of Executive Order#124 could discourage existing processors from expanding their factories and new ones from investing in Liberia.

 

 

LACA noted that such action would increase the cost of production ($/lb), causing some processors to reconsider whether to close their operations. This, in turn, would lead to redundancies, lower tax revenue, and a decrease in GDP.

 

For example, the two biggest Technically Specified Rubber (TSR) companies, Firestone Liberia and LAC, purchase approximately 60 percent and 30 percent of their rubber from smallholder farmers. These operations support the indirect employment of thousands of farm workers and transporters.

 

 

Firestone is constructing a second factory to produce Ribbed Smoked Sheet (RSS) that will be commissioned at the end of 2025. When commissioned, the factory will process most of the latex within its concession area. Therefore, it would need to source additional cup-lump volumes from smallholder farmers to maintain its current TSR factory capacity.

 

These companies are currently shipping millions of metric tons of processed rubber annually and rely partly on cup-lump purchases from smallholder farmers.

 

These projections could decrease should the ban be lifted. The Lee Group and Jeety Rubber could close shop since their productions rely entirely on purchasing raw latex from small farmers. The Jeety Rubber Factory LLC's current export projection is 75,000 metric tons of processed rubber per year.

 

LACA further fears that lifting the current moratorium could promote theft and supply of farmers' cup lumps to brokers and/or exporters who do not comply with international standards on traceability, labor rights, and deforestation.

 

"To supply sufficient volumes of cuplumps and latex to fulfill the processors' factory capacity requirements, Executive Order #124 must be maintained. All the processors purchase and process rubber from Liberian farmers, providing a steady source of income to the farmers, their workers, and their transporters and contributing to Liberia's economic development," LACA said.

 

Moreover, in their meetings in the Senate Joint Committee and earlier with Justice Minister Tweh and Commerce Minister Modad, LACA explained that maintaining Executive Order #124 would generate more employment at all levels across the Liberian rubber industry supply chain, add value, and increase government revenue.

 

-New Dawn.

 

 

 

 

Nigeria: Dangote Begins Distribution of N13 Billion Rice to Vulnerable Nigerians

The Aliko Dangote Foundation is also distributing meals to at least 10,000 Muslims observing the Ramadan fast in Kano State.

 

Africa's richest man, Aliko Dangote, through his Humanitarian Foundation, has launched the distribution of rice worth over N13 billion to vulnerable groups across Nigeria.

 

The foundation is also distributing meals to at least 10,000 Muslims observing the Ramadan fast in Kano State.

 

A statement signed by Samira Sanusi, an official of the foundation in Kano, said the foundation plans to distribute one million bags of rice - worth over N13 billion across the 36 states of the federation and Abuja to alleviate the suffering in the country.

 

 

Mrs Sanusi said the gesture was in addition to the daily distribution of 20,000 loaves of bread to Kano residents and 15,000 to Lagos residents, which the foundation started in 2020 during the COVID-19 pandemic.

 

Mrs Sanusi explained that the Ramadan-free meals include jollof rice, white rice and stew, jollof spaghetti, yam, beans with chicken and beef, packed with a bottle of water and drink for each person.

 

She said the packed meals are distributed at Juma'at mosques, streets, prisons, orphanages, remand homes, and other places in Kano City and its environs.

 

Aside from the commencement of free bread distribution four years ago, Mr Dangote has been quietly feeding those in need in Kano for over 30 years, Mrs Sanusi said.

 

This, according to her, had been done from his mother's residence in Koki and various cooking locations.

 

"This feeding programme feeds 10,000 Kano residents daily with breakfast, lunch, and dinner, a unique feat that has been in existence for over 30 years," she said.

 

-Premium Times.

 

 

 

 

Gucci sales to fall by 20% due to Asia slowdown

Sales at Gucci are expected to fall by 20% in the first quarter due to a slowdown in Asia, according to its Paris-based owner Kering.

 

The warning contrasts with rivals LVMH and Hermès whose sales have remained resilient.

 

The luxury market has grown in the past decade but sales have not been as impressive in recent years.

 

Gucci is estimated to get more than a third of its sales from China, whose economy has been struggling.

 

Kering said in a statement that the profit warning "reflects a steeper sales drop at Gucci, notably in the Asia-Pacific region". The firm is scheduled to report its financial results on 23 April.

 

Gucci accounted for two-thirds of group operating income last year. Kering's other brands include Yves Saint Laurent, Balenciaga and Bottega Veneta.

 

Last month, Kering reported that its net profit last year fell by 17%. Its shares have fallen by more than 23% over the past year.

 

In comparison, its bigger rival LVMH, which owns Louis Vuitton, Moët & Chandon and Hennessy, posted higher-than-expected sales for 2023.

 

Hermes also celebrated its record annual sales last year with plans to reward all employees worldwide with a bonus.

 

While their results showed resilience in the luxury market, Gucci is known to target younger, aspirational shoppers who are more vulnerable to economic pressures.

 

Last year, Kering changed Gucci's top management by appointing Jean-François Palus as its chief executive officer and Sabato De Sarno as its creative director.

 

The first items of his Ancora collection were made available in mid-February.

 

The collection has been met with a "highly favourable reception," Kering's statement said.-BBC

 

 

 

 

British AI pioneer Mustafa Suleyman joins Microsoft

Microsoft has announced British Artificial Intelligence pioneer Mustafa Suleyman will lead its newly-formed division, Microsoft AI.

 

Mr Suleyman currently heads start-up Inflection AI, but is best known for co-founding AI firm DeepMind.

 

It was one of the UK's best known AI firms and was bought by Google in 2014.

 

Mr Suleyman's move cements Microsoft's reputation as a leader in artificial intelligence (AI), a field in which Google is appearing to struggle.

 

In a post on X, formerly Twitter, Mr Suleyman said he was "excited" to take up his new position, adding that he would be taking several colleagues to Microsoft with him, including "friend and long time collaborator" Karén Simonyan as chief scientist.

 

 

He said he would be "leading all consumer AI products and research", including the Copilot chatbot, Bing and Edge.

 

Microsoft boss Satya Nadella described Mr Suleyman as a "visionary, product maker, and builder of pioneering teams that go after bold missions".

 

"I am excited for them to contribute their knowledge, talent, and expertise to our consumer AI research and product making," he added.

 

DeepMind co-founder: 'UK needs to take more AI risks'

After leaving Google in 2022, Mr Suleyman co-founded Inflection AI, which has emerged as one of the most high-flying names in the generative AI race after raising $1.3bn from Microsoft and Nvidia last June.

 

 

But taking up his latest position at Microsoft cements his respect in the field.

 

Microsoft has invested billions into its partnership with ChatGPT-maker OpenAI and recently in the French tech start-up Mistral AI.

 

Microsoft said it would continue to build AI infrastructure and work in support of OpenAI's "foundation model roadmap".

 

It is a different picture at Google currently though. There have been a number of issues around the tech giant's new AI-powered tool, Gemini, which refused to depict white people and changed the race of certain white historical figures.

 

Google has apologised for "inaccuracies in some historical image generation depictions", saying its attempts at creating a "wide range" of results missed the mark.

 

 

line

If you want to know who's edging ahead on the AI race, look at the movement of its key players.

 

Mustafa Suleyman's appointment nudges our imaginary swingometer firmly in the direction of the Seattle-based tech giant. The message could not be more clear: Microsoft"s long-term strategy of investing hugely in AI is paying off.

 

Mr Suleyman left Google to launch his own company two years ago but until now he's remained a a high profile supporter of Team Google - or so it seemed.

 

 

It must be infuriating for Google to watch. On paper Google has it all: money, expertise, infrastructure, data access and a huge user base. And yet somehow it has not found its groove, not helped by a series of PR missteps.

 

Reports of a collaboration with its arch rival Apple, while unconfirmed by both parties, would give its AI brand Gemini a much-needed shot in the arm. But for now it finds itself increasingly sidelined in a race that, you would think, it began in pole position.

 

line

Microsoft-OpenAI ties under scrutiny by watchdog-BBC

 

 

 

Job boards are still rife with 'ghost jobs'. What's the point?

The labour market is tightening – and it's getting harder to find a job. In the wake of the Great Resignation, which drove more job vacancies than employers could fill, workers often had their pick of open roles. Now, they have largely lost their leverage among layoffs and budget cuts, and those open positions are increasingly rare.  

 

Still, roles do exist – or at least appear to. Job boards like LinkedIn and Indeed continue to advertise open positions, and workers are actively submitting applications. Yet despite an influx of highly qualified candidates, plenty of desirable job adverts have languished on digital platforms with an increasingly common label: "Posted 30+ days ago". 

 

While the listings may be old, job seekers generally still assume companies are actively hiring for the roles. The truth is more complicated. Some of these are simply not-yet-removed adverts for jobs that have been filled – but some were never meant to be filled at all. These are 'ghost jobs', and they're becoming an increasingly common – and problematic – obstacle for job seekers.

 

Talent and exposure

Versions of ghost jobs have long been part of the employment market. Job fairs, for example, have a reputation for attracting businesses that set up booths simply to serve as promotional tools or to collect resumes en masse without a clear role to fill. The issue gotten worse in the digital era, despite technology that should theoretically improve the job-hunt process for all parties, especially as the sheer number of applicants for each role has spiked across the globe the past several years while the economy has tightened.

 

 

Yet despite the influx of candidates, a staggering number of listings don't result in hires. Revelio Labs, a US-based workforce intelligence firm, showed that the ratio of hires per job posting fell below 0.5 in 2023, meaning that more than half of listings did not result in an employer turning an applicant into an employee.

 

Getty Images (Credit: Getty Images)Getty Images

Clarify Capital, a New York-based business loan provider, surveyed 1,000 hiring managers, and found nearly seven in 10 jobs stay open for more than 30 days, with 10% unfilled for more than half a year. Half the respondents reported they keep job listings open indefinitely because they "always open to new people". More than one in three respondents said they kept the listings active to build a pool of applicants in case of turnover – not because a role needs to be filled in a timely manner.

 

The posted roles are more than just a talent vacuum sucking up resumes from applicants. They are also a tool for shaping perception inside and outside of the company. More than 40% of hiring managers said they list jobs they aren't actively trying to fill to give the impression that the company is growing. A similar share said the job listings are made to motivate employees, while 34% said the jobs are posted to placate overworked staff who may be hoping for additional help to be brought on. 

 

"Ghost jobs are everywhere," says Geoffrey Scott, senior content manager and hiring manager at Resume Genius, a US company that helps workers design their resumes. "We discovered a massive 1.7 million potential ghost job openings on LinkedIn just in the US," says Scott. In the UK, StandOut CV, a London-based career resources company, found more than a third of job listings in 2023 were ghost jobs, defined as listings posted for more than 30 days.

 

 

'A major time sink'

Experts caution not every posting that seems like a ghost job is one. "I don't think it is a widespread practice for companies to post jobs they do not intend to fill," says Annette Garsteck, a US-based career consultant. Instead, lack of hiring resources and a staggering volume of applicants per role may mean hiring can't move quickly – and by consequence, recruiters can't respond to every application.

 

In 2023, StandOut CV found that more than a third of job listings were ghost jobs, defined as listings posted for more than 30 days

Still, whether these postings are ghost jobs – or simply look and feel like them – the result is similar. Jobseekers end up discouraged and burnt out.

 

"Ghost openings are a major time sink for job seekers," says Scott. "Filling out a single job application can take several hours, as a serious applicant will take time to research the company, personalise their resume and cover letter and then jump through hoops like listing every job they've ever held and answering screening questions." -BBC

 

 

 

 

 

Ted Baker jobs at risk as administrators appointed

High Street fashion chain Ted Baker is set to be put into administration, putting hundreds of jobs at risk.

 

Authentic Brands Group, the Ted Baker brand owner since 2022, said "damage done" during a tie-up with another firm was "too much to overcome".

 

Ted Baker will continue to trade and customer orders will be fulfilled, the US group said.

 

Authentic is in "advanced discussions" with several potential buyers for the Ted Baker brand, it added.

 

Ted Baker has about 975 employees and runs 46 stores, plus an e-commerce platform and department store concessions.

 

Authentic did not give any indication of job loss numbers in a statement.

 

Authentic Brands Group chief strategy and transition officer John McNamara said: "We wish that there could have been a better outcome for the Ted Baker employees and stakeholders."

 

He added that it is "hopefully some consolation for customers" that Ted Baker "will continue to trade online and in stores."

 

He said Ted Baker's holding company in the UK and Europe - No Ordinary Designer Label (NODL) - had "built up a significant level of arrears" during a tie-up with Dutch firm AARC and the damage done "was too much to overcome".

 

The partnership with AARC, which ran Ted Baker's shops and online business in Europe, ended in January.

 

Ted Baker began as a menswear brand in Glasgow in 1988, and grew to have shops in the UK and US, as well as concessions in department stores.

 

It also has licensing agreements in place for stores in cities in Asia and the Middle East.

 

Authentic owns brands including Reebok, Hunter and Juicy Couture, and bought Ted Baker two years ago in a £211m deal.

 

The plan to appoint administrators, which the BBC understands will be restructuring firm Teneo, comes after long-running instability at the firm.

 

In 2019, Ted Baker founder Ray Kelvin resigned after allegations of misconduct, including "forced hugging".

 

Mr Kelvin, who denied the allegations, was at the time accused by staff of engaging them in unwelcome embraces, and having asked young female members of staff to sit on his knee, cuddle him or let him massage their ears.

 

His successor Lindsay Page and chairman David Bernstein resigned the following year amid a profit warning. Shares also plunged after an accounting error.

 

Mr Kelvin came back to the firm on an advisory basis about a year after the "forced hugging" scandal.-BBC

 

 

 

 

 

Japan raises interest rates for first time in 17 years

Japan's central bank has raised the cost of borrowing for the first time in 17 years.

 

The Bank of the Japan (BOJ) increased its key interest rate from -0.1% to a range of 0%-0.1%. It comes as wages have jumped after consumer prices rose.

 

In 2016, the bank cut the rate below zero in an attempt to stimulate the country's stagnating economy.

 

The hike means that there are no longer any countries left with negative interest rates.

 

When negative rates are in force people have to pay to deposit money in a bank. They have been used by several countries as a way of encouraging people to spend their money rather than putting it in a bank.

 

 

The BOJ also abandoned a policy known as yield curve control (YCC), which saw it buying Japanese government bonds to control interest rates.

 

YCC policy has been in place since 2016 but has been criticised for distorting markets by keeping long-term interest rates from rising.

 

In a statement announcing the decision, the BOJ said it will keep buying "broadly the same amount" of government bonds as before and ramp up purchases in case yields rise rapidly.

 

Expectations that the BOJ would finally raise rates had been growing since governor Kazuo Ueda took office in April last year.

 

The latest official figures showed that even though the rate of price rises has been slowing, Japan's core consumer inflation held at the bank's 2% target in January.

 

 

The decision to finally hike rates hinged on the country's major corporations increasing wages for their workers to help them cope with the rising cost of living, Nobuko Kobayashi from consulting firm EY-Parthenon told the BBC.

 

Earlier this month, Japan's biggest companies agreed to raise salaries by 5.28% - the biggest wage hike in more than three decades.

 

Wages in the country had flatlined since the late 1990s as consumer prices rose very slowly or even fell.

 

But the return of inflation could be both good and bad news for the economy, Ms Kobayashi says.

 

"Good, if Japan can stimulate productivity and domestic demand. Bad, if inflation stays externally-driven by things like war and supply chain disruptions."

 

 

Looking ahead, the BOJ has signalled that there will not be further rate hikes for now as it anticipates that "accommodative financial conditions will be maintained for the time being".

 

"With inflation coming off the boil now, it seems likely that trade unions will push for smaller pay hikes in next year's talks," wrote Marcel Thieliant of research firm Capital Economics.

 

"With wage growth peaking this year, we still expect inflation to fall below the BOJ's target by the end of the year so the Bank won't feel the need to lift its policy rate any further."

 

In February, Japan's main stock index the Nikkei 225 hit an all-time closing high, surpassing the previous record set 34 years ago.

 

This month, the country had avoided falling into a technical recession after its official economic growth figures were revised.

 

 

The revised data showed gross domestic product (GDP) was 0.4% higher in the last three months of 2023 compared to a year earlier.

 

During the pandemic, central banks around the world slashed interest rates as they attempted to counteract the negative impact of border closures and lockdowns.

 

At the time some countries, including Switzerland and Denmark, as well as the European Central Bank, introduced negative interest rates.

 

Since then central banks around the world, like the US Federal Reserve and the Bank of England, have been aggressively raising interest rates to curb soaring prices.-BBC

 

 

 

 

Unilever is cutting jobs and splitting off its ice cream unit

Marmite and Dove soap-owner Unilever is to cut about 7,500 jobs worldwide, as part of an extensive three-year cost-saving plan.

 

The group also said it would split off its ice cream business which includes the Wall's, Ben & Jerry's and Magnum brands.

 

The food and household goods giant said the spin-off will start immediately and should be completed by the end of 2025.

 

Unilever said the shake-up would help it to "do fewer things better".

 

The job cuts, which Unilever said would mostly affect office staff, represent more than 5% of its 128,000 global workforce and are aimed at saving around €800m (£684m) over the next three years.

 

Unilever employs 6,000 staff in the UK including producing ice cream in north-east Gloucestershire, Marmite and Bovril in Burton-on-Trent and Pot Noodles in Newport.

 

The ice cream division, whose other brands include Viennetta, Carte d'Or, Cornetto and Breyers, achieved global sales of €7.9bn (£6.75bn) last year.

 

However, Unilever said the business had less in common with its other consumer product lines because it needed a frozen goods supply chain and was more seasonal.

 

"The separation of ice cream and the delivery of the productivity programme will help create a simpler, more focused, and higher performing Unilever," said the company's chairman Ian Meakins.

 

"It will also create a world-leading ice cream business, with strong growth prospects and an exciting future as a standalone business."

 

Shares in Unilever rose 5% following the announcement.

 

Matt Britzman at Hargreaves Lansdown said the move was "not a huge shock" as the ice cream unit had been underperforming.

 

The unit is most likely to be shed in a demerger, which would mean current shareholders receiving shares in a newly listed entity. However the group said it was not ruling out other options, such as a direct sale of the business.

 

 

"It doesn't sound like there's a buyer lined up so it looks like a demerger will be the choice," said Mr Britzman. "Investors can then decide whether they want to keep the new ice cream business or sell into the market."-BBC

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


 

2024 auction tobacco marketing season opens

 

13 march

 


 

Good Friday

 

march 29

 


 

Easter Monday

 

1 April

 


 

Independence Day

 

April 18

 


 

Workers day

 

1 May

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not 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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