Major International Business Headlines Brief::: 10 May 2024

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Major International Business Headlines Brief:::  10 May 2024 

 


                                                                                  

 

	
 


 

 


 

ü  Nigeria: Tariff Hike - Labour Threatens to Picket Offices of Electricity Regulatory Agency On Monday

ü  Nigeria: Watt a Mess - How the Power Sector Spent Billions to Generate Darkness

ü  East Africa: Safaricom Projected Earnings Weighed Down By Ethiopian Loss

ü  Africa: End the Negative Narrative, Africa is Thriving - AfDB Chief

ü  Kenya: Fact-Checked - Six Claims By Kenya's Deputy President On the Cost of Living

ü  Kenya: Dissenting Voices At Nairobi Soil Health Forum Over Increased Fertilizer Use

ü  Africa: Zimbabwe, Zambia Turn to East Africa for Maize Support

ü  Africa: AI Becomes Latest Frontier in China-Us Race for Africa

ü  Mozambique: University Students Condemn New Telecommunication Tariffs

ü  Kenyans in the Diaspora Urged to Send More Money Back Home

ü  UK exits recession with fastest growth in two years

ü  Apple apologises after piano crushing ad backlash

ü  Rat remains found in bread sparks Japan recall and refunds

ü  The post-Brexit hard sell for British food in Asia

ü  Argentines strike against spending cuts under Javier Milei

 


 

 


 <https://www.cloverleaf.co.zw/> Nigeria: Tariff Hike - Labour Threatens to Picket Offices of Electricity Regulatory Agency On Monday

Organised labour, under the auspices of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), has given the federal government and the Nigerian Electricity Regulatory Commission (NERC) a May 12 deadline to reverse the hike in electricity tariff to N65/kwh or face picketing of the commission's offices and that of Electricity Distribution Companies (DISCOs) nationwide.

 

NLC directed its state branches and affiliates to mobilise their members to commence picketing of the offices of NERC and DISCOs nationwide as from Monday, May 13.

 

In a warning letter jointly signed by NLC President Joe Ajaero and his TUC counterpart, Festus Osifo, the two labour centres demanded immediate cessation of the discriminatory segregation of electricity consumers into arbitrary bands.

 

 

They also demanded the restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.

 

The letter, dated May 3, 2024 and addressed to Chairman/Chief Executive Officer of NERC, urged the regulatory body to immediately reverse the electricity tariff hike or face resistance from the workers.

 

The letter was also copied the Secretary to the Government of the Federation (SGF), Minister of Labour and Employment, Minister of Power, and all the DISCOs.

 

Last month, NERC increased electricity tariffs on Band A customers from N65 per kilowatt hour (kwh) to N225/kWh following the government's partial removal of electricity subsidies.

 

This decision attracted condemnation from electricity consumers nationwide, including organised labour and private sector stakeholders.

 

 

In the letter to NERC, organised labour accused the body of bias, alleging that it has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people.

 

The statement said, "This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kwh to N225/kwh by your commission.

 

"We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations.

 

"It is a slap in the face of justice and fairness, and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation.

 

 

"As the regulator of the electricity sector, it is imperative that your commission grasps the weight of its responsibilities. NERC's role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the commission.

 

"Yet, with this recent tariff hike, which you have acquiesced, it 1s evident that the commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry.

 

"We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people."

 

The labour movement said the laws that set up the electricity commission mandated it to act as an unbiased ombudsman in the electricity industry.

 

But labour said, unfortunately, the reverse had been the case, as NERC had acted in cahoots with the DISCQs and the Generating Companies (GENCOs) to promote their nefarious market practices.

 

According to organised labour, the announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens.

 

Labour described the increase as a flagrant abuse of power and a clear violation of the trust bestowed upon the commission by the Nigerian people.

 

It stated in the letter, "Such actions will not be tolerated, and we refuse to accept them as the new norm. Nigerian workers and masses, led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), stand united in denouncing this injustice. It is our duty to defend the rights of our fellow citizens against exploitation. Therefore, we issue the following demands:

 

"An immediate reversal of the hike in electricity tariff to N65/kwh. Immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands.

 

"Restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.

 

"We give you until Sunday, the 12th day of May, 2024, to comply. Failure to do so will result in swift and decisive action on our part, as we will not hesitate to mobilise our members and occupy all NERC's offices and those of the DISCOs nationwide until justice is served."

 

Following the deadline issued to NERC and the DISCOs, the leadership of NLC wrote to all its state branches to mobilise workers in readiness for the picketing.

 

The letter dated May 7, 2024 and signed by NLC's acting General Secretary, Mr. Chris Ufot, said, "In line with the directive of the Central Working Committee (CWC) meeting held on 30th of April, 2024, I have been directed to inform you to commence preparation to picket the Nigerian Electricity Regulatory Commission and Disco offices in the states. The nationwide picketing is slated for Monday, May 13, 2024."

 

Meanwhile, the NLC president defended the proposal submitted by labour for a new minimum wage of N615,000 for Nigerian workers.

 

Speaking during a news programme on Arise Television on Thursday, Ajaero said the proposed amount took into consideration the current cost of living in the country.

 

He also responded to the concerns by employers of labour, especially those in the private sector, saying since the cost of goods and services in the country have skyrocketed, the workers have no choice than to demand commensurate pay rise.

 

Ajaero said, "We are asking for accommodation of N40,000. We are asking for electricity for N20,000. We look at utility that is about N10,000 and kerosene and gas, which is about N25,000 and N30,000.

 

"We look at food for N9,000 for the family of six, in a day. For 30 days, that's about N270,000. We look at medical for N50,000 and education N50,000, and sanitisation for N10,000.

 

"Because of subsidy removal and the fact that workers stay in fringes, that amounted to N110,000. That brought the whole thing to N615,000."

 

"And I want anybody to subject this to further investigation and find out if there will be any savings after these payments."

 

- This Day.

 

 

 

Nigeria: Watt a Mess - How the Power Sector Spent Billions to Generate Darkness

Why a government will opt to liberalise its key economic sector, jeopardise the security of the nation, and push its economy to the brink beats my imagination!

 

When the substantial funds that the Nigerian government have expended since it submissively handed over our national treasures to private individual, alongside the significant loans provided by Nigerian banks to the electricity sector thus far, is juxtaposed against the revenue from the sale of these national monuments and the darkness generated, it begs the question: which parties have profited or incurred losses from these transactions?

 

 

Setting the Stage

 

In the sprawling and narrow streets of Nigeria, despair hangs heavy in the air, while in the labyrinth of the country's power sector, a tale of rapaciousness, savagery, and betrayal is unfolding, revealing the stark realities faced by 200 million Nigerians. Once a land of promise, Nigeria has become a landscape of broken dreams, where the hopes of millions are dashed against the rocks of corruption, incompetence, greed, neglect, and lack of patriotism. Nigeria's narrative is one of woes of SADISM, as those who 'foist' themselves on the country, with the constitution entrusting the nation's well-being in their hands, have instead driven it to the brink of collapse.

 

At the heart of this tragedy lies the contentious issue in the power sector - the unbundling of the former National Electric Power Authority (NEPA), and its subsequent pilfering - decisions made by short-sighted and naive leaders. Nigerians were sold a dummy - the dream of reliable electricity, with proclamations of improvement and advancement that would fuel economic growth and prosperity. Yet, this dream remains a mirage and painfully out of reach, as power outages, grid collapse, exorbitant tariffs, and thousands of excuses from power companies and government continue to plague the nation.

 

But the woes don't end there. The recent removal of fuel subsidies has sent 'electric waves' through an already fragile economy, leaving 200 million shocked and incapacitated Nigerians struggling to make ends meet. Inflation has run amuck, the naira/dollar exchange is on the yo-yo, and the cost of living is becoming a crushing burden on the average citizen. While, on the other hand, promises of relief have fallen flat in the face of reality, as palliatives meant to ease the burden of hardship are unstructured, withheld or siphoned off to cronies and beleaguered political allies. The much-touted salary increases offer little solace to those who remain employed, underemployed, or trapped in the precarious grip of the informal sector, not to talk of the lot of pensioners, the elderly and vulnerable. Yet, all the while, those astride the executive, legislative or judicial corridors of power are ensconced in hard-to-believe luxury, seemingly oblivious of the suffering of Nigerians.

 

 

Wired for Failure

 

The Nigeria Dams Authority (NDA) and Electricity Corporation of Nigeria (ECN) came into being in 1950 to generate and distribute electricity in the country. However, to promote efficiency, NDA and ECN became the National Electric Power Authority (NEPA) in 1972. This national assets/monuments took the country 46 years to set up (from the 1960s to 2007).

 

The National Council on Privatisation (NCP), led by the vice president, which handles the privatisation and commercialisation of public enterprises, with the Bureau of Public Enterprises (BPE) being its secretariat, undertook the process of unbundling NEPA in March 2005, when the Electric Power Sector Reform Act (EPSR) was signed into law, providing a legal framework for the 'auctioning of NEPA's assets' and to 'obliterate the footprints', leading to the formation of the Power Holding Company of Nigeria (PHCN).

 

A look at the TCN website shows the emergence of 18 companies, which include six power generation companies (GenCos): Egbin Electricity, with a 1,320 MW capacity; Kainji Hydro (with Kainji having 760 MW and Jebba, 578 MW); Shiroro Hydro - 600 MW; Delta/Ughelli Power - 972MW; Afam Power - 650 MW, Geregu Power - 435 MW; alongside the Transmission Company of Nigeria (TCN) and 11 power distribution companies (DisCos). These are: Abuja DisCo, Benin DisCo, Eko DisCo, Enugu DisCo, Ibadan DisCo, Ikeja DisCo, Jos DisCo, Kaduna DisCo, Kano DisCo, Port Harcourt DisCo, and Yola DisCo.

 

The BPE, tasked with the privatisation and commercialisation exercise, in a strategy akin to 'crony capitalism' and the 'pilfering' of our national assets and common patrimony, came into being during the era of the hurriedly packaged, thus clueless and tattered red umbrella civilian administration.

 

Nigerians were told that the unbundling of NEPA was due to:

 

Nigeria's population, which was growing, hence the need to increase energy supply;

The need for smaller units to improve the efficiency of electricity generation, transmission, and distribution;

The necessity of modernising the power sector;

The introduction of private sector participation and competition, which would lead to better service;

The need to make the power sector financially sustainable.

A report by Business Day newspaper, captured the Chairman of the NCP, Technical Committee, at a special forum on financing the power sector reform for economic development, sponsored by Nigerian banks and supported by the CBN, saying that approximately the sum of $3.3 billion was expected to accrue to the Federal Government from the sale of the unbundled entities.

 

The foregoing are commendable but they actually constitute the pathway to the balkanisation of our national treasures.

 

Why a government will opt to liberalise its key economic sector, jeopardise the security of the nation, and push its economy to the brink beats my imagination!

 

The Power Cabal

 

The cost of building NEPA, which became the Power Holding Company of Nigeria (PHCN), is not explicitly documented in the available resources.

 

A report by Business Day newspaper, captured the Chairman of the NCP, Technical Committee, at a special forum on financing the power sector reform for economic development, sponsored by Nigerian banks and supported by the CBN, saying that approximately the sum of $3.3 billion was expected to accrue to the Federal Government from the sale of the unbundled entities.

 

 

How this figure was arrived at is a discourse for another day.

 

After all the partying, as you will imagine, the sum of $2.137 billion to $2.53 billion was received from the preferred bidders/core investors, with $1.27 billion for five GenCos and $1.26 billion for ten DisCos. Two core investors where to pay their fees at a later stage.

 

>From the special forum organised by Nigerian banks, it can be gleaned that funding for the purchase actually came from local investors through short-tenored and costly facilities, thus highlighting the cold feet of foreign investors, who refused to participate in the privatisation exercise due to the country's history of inefficiency and endemic corruption.

 

Lest we forget, part of the reason for the unbundling was to attract foreign investors. But then, why collect payment in dollars while financiers are Nigerian banks? And, what happened to the proceeds?

 

In 2022, a report in Independent newspapers shows the several interventions of the Central Bank of Nigeria (CBN), which include the N300 billion Power and Aviation Intervention Fund (PAIF); the N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF); The N140 billion Solar Connection Intervention Facility; over N600 billion tariff shortfall interventions; as well as a recent N120 billion intervention designed for mass metering, among others.

 

After the pilfering of our national asset, Nigerians, through various clueless administrations, have funnelled fantastic sums in the name of subsidy, bailout, interventions, etc., to the inefficient electricity sector several times:

 

i. In a draft report, the Centre for the Study of the Economies of Africa (CSEA), Abuja, Nigeria, dated October, 2017 stated that CBN had extended a N213 billion facility to both GenCos, DisCos, gas suppliers and all service providers within the power value chain, through its Nigerian Electricity Market Stabilisation Facility (NEMSF), which is to be repaid through a first-line charge on their revenues over a 10-year period.

 

ii. In 2017, a The PUNCH news clip shows the Federal Government saying that it would commit about N702 billion through the Nigerian Bulk Electricity Trading to guarantee the payment of electricity generated and supplied by power generation and distribution companies.

 

iii. In 2021, it was reported that government had spent N1.7 trillion so far in the form of interventions in the power sector, as stated by the African Development Bank President, while quoting an IMF report.

 

iv. In 2022, a report in Independent newspapers shows the several interventions of the Central Bank of Nigeria (CBN), which include the N300 billion Power and Aviation Intervention Fund (PAIF); the N213 billion Nigerian Electricity Market Stabilisation Facility (NEMSF); The N140 billion Solar Connection Intervention Facility; over N600 billion tariff shortfall interventions; as well as a recent N120 billion intervention designed for mass metering, among others. To sum it, in March 2022, the CBN through its governor, at a Bankers Committee Meeting, said it had disbursed over N1.3 trillion to support power supply to Nigerians.

 

v. In August 2022, a report from the CBN shows that GenCos and DisCos owe banks N836 billion.

 

vi. In July 2023, the Nigeria Gas Association disclosed that gas debts to producers who provide the gas required for power plants had hit over $1 billion.

 

In the "Electricity Report" released by the National Bureau of Statistics (NBS), revenue generation by electricity distribution companies in Nigeria has surged to N1.1 trillion within 12 months of 2023.

 

Amid all these huge sums of money Nigeria is still in darkness. This is so absurd!

 

When the substantial funds that the Nigerian government have expended since it submissively handed over our national treasures to private individual, alongside the significant loans provided by Nigerian banks to the electricity sector thus far, is juxtaposed against the revenue from the sale of these national monuments and the darkness generated, it begs the question: which parties have profited or incurred losses from these transactions?

 

Adamu Rabiu writes from Kaduna.

 

- Premium Times.

 

 

 

East Africa: Safaricom Projected Earnings Weighed Down By Ethiopian Loss

Safaricom, Kenya's leading telecommunications company, reported a slight uptick in profits, albeit dampened by the underperformance of its Ethiopian arm.

 

The firm disclosed a profit of Ksh62.99 billion for the review period, marking a modest increase from Ksh62.26 billion the previous year.

 

However, Safaricom's Ethiopian subsidiary, in which it holds a 51 percent stake, incurred a hefty loss of Ksh21.7 billion, exerting downward pressure on the group's overall financial performance.

 

Of particular note is Safaricom's resurgence into profitability following three consecutive years of losses, with earnings surpassing the billion-dollar threshold.

 

 

"We are extremely pleased with what we have been able to achieve as a group despite the significant startup costs in our Ethiopia business. We expect that from 2025, Ethiopia will start being a significant growth contributor at group level for both top and bottom line," said Safaricom in a statement.

 

Anticipating a major shift, the company foresees Ethiopia emerging as a significant growth driver from 2025, contributing substantially to both the top and bottom lines.

 

M-Pesa, Safaricom's flagship mobile money service, emerged as the primary revenue generator, surpassing the 40 percent milestone in service revenue contribution.

 

Earnings surged to Sh139.9 billion, constituting 42 percent of Safaricom's total service revenue, a notable increase from 19.36 percent in the preceding year.

 

The M-Pesa ecosystem witnessed further expansion, with transaction values and volumes climbing by 9.6 percent and 33.9 percent year-on-year, culminating in Sh40.2 trillion and 28.3 billion transactions, respectively.

 

- Business Day Africa.

 

 

 

Africa: End the Negative Narrative, Africa is Thriving - AfDB Chief

Nairobi, Kenya — The highly-anticipated AllAfrica Media Leaders' Summit (AMLS) is convening in Nairobi, Kenya, to address the urgent need for a thriving and independent media landscape across Africa. The summit brings together top media leaders, owners, operators, key players, and government officials from 48 countries to mark the long-awaited return of the AMLS after a ten-year hiatus. The theme of the summit Re-engineering African Media in Times of Critical Transformation tackles pressing issues facing the industry in an era of rapid technological change.

 

Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), delivered a keynote address stressing the need for a new narrative about Africa. He acknowledged the importance of a free and independent media for democracy and development in Africa. He highlighted the challenges that the media industry has faced due to the COVID-19 pandemic and the rise of social media. Dr. Adesina emphasized the need for critical thinking and discernment in the face of a constantly changing information landscape.

 

 

Adesina said the world of information is undergoing a dramatic transformation. The rise of the Internet, social media, and mobile phones has led people to rely less on traditional media sources like radio, TV, and newspapers. This shift means that more and more people are getting their news and entertainment online, with billions expected to have smartphones by 2030, especially in Africa. However, this new online world also presents challenges, as the ease of creating and sharing content, including potentially false information, can make it difficult to tell what's true and what's not.

 

"An independent, professional, responsible, and private media is critical to the freedom of speech, the development of democracy, and the strengthening of inclusive societies," he said. "The unprecedented pandemic disrupted business models, altered audience relationships, squeezed revenues, and tested professional values and moral trust."

 

 

"The rise of the Internet, digital and social media platforms has shifted the focus of audiences on reliance on radio, TV and print publications.

 

"It is a whole new world where the lines between fact and fiction can become blurred," he added. "Subsequently, positive and good news on Africa goes missing, unmarred, or even simply missing."

 

Africa needs a new narrative 

 

Dr. Adesina underscored the critical role of information in Africa's development, emphasizing how it's produced, used, interpreted, and its ultimate impact. He expressed his pride in the African Development Bank's achievement of maintaining the continent's only AAA credit rating.

 

"We have been the only AAA-rated financial institution on the continent," he said. Adesina attributed this success to the tireless efforts of his staff, the board, and the bank's chair. He highlighted the importance of this rating, explaining, "Only then can we provide our 54 regional member countries in Africa with concessional financing that they need to accelerate development."

 

 

This strong rating allows the bank to access global capital markets and secure affordable, long-term financing for African economies.

 

"This is critical for us to access global capital markets and to source cheap and long-term financing for Africa's economy," he explained. As an example of the bank's success, he cited a recent $750 million bond issuance.

 

"Just a month ago, the Bank launched a landmark hiring act of $750 million, which was rated AAA by all five global credit rating agencies and was oversubscribed eight times by investors from around the world". Dr. Adesina highlighted the significance of this achievement, going beyond just finances. "This marks the first time that any multilateral development bank will do that globally," he said.

 

He explained why this matters: "Because it was done by an African institution. It changes perceptions. It shows leadership and innovation. And adds to the positive news narrative coming out of Africa". He further bolstered his point by mentioning other accolades the bank has received, showcasing Africa's positive development efforts.

 

"Two years ago, Global Finance ranked the African Development Bank as the best multilateral development bank in the world. It was also ranked as the most transparent financial institution in the world by Publish What You Pay (PWPY). Even the African Development Fund, the bank's concessional financing arm, "was ranked by the Washington-based Center for Global Development as the second best in the world, above all 49 concessional financing institutions in all OECD countries," he said. "These and other positive developments are not the kind of news Africa is known for"

 

However, Dr. Adesina criticizes the lack of reporting on these positive developments. "The question is, how many news organizations know of or reported this?". He argues that positive news from Africa is often overshadowed by negativity. "The news of Africa, either from within or shared from outside, is often full of stereotypes, negativity, and old and tired jokes, misconceptions, or greatly entrenched biases".

 

A 2021 survey by Africa No Filter Report on 'How African Media Covers Africa' found that while over 80% indicated that African news is important to them, 50% accepted that their news and articles on Africa conformed to stereotypes. It further showed that 37% of surveyed editors indicated a lack of interest in advertisers on African news.  This focus on negativity, he argues, discourages advertiser interest.

 

But they should have an interest in Africa!

 

"Despite the negative media narrative, Africa's economy is showing resilience. Africa's growth rate in 2022 was 3.2%, exceeding the global average. Eleven of the world's 20 fastest-growing economies are in Africa," he added.

 

Dr. Adesina also addressed the issue of young Africans leaving the continent because of a "lack of opportunity, not because they want to." He argues that Africa needs to develop its economy to create a better future for its youth. A key part of this is changing the narrative about Africa. The negative media portrayal discourages investment and makes it more expensive for African countries to borrow money. Dr. Adesina says that Africa must develop "with pride."

 

 

"African news, except negative, is not prioritized. How can positive news on Africa compare to the preponderance of reports on crime conflicts, crises, and challenges? Africa No Filter Report calls this "if it bleeds, it leads." Others in the business cynically say, "If it doesn't smell it doesn't sell."

 

Negative media portrayal hurts Africa

 

"Africa gets a bad rap for being risky," Dr. Adesina said, "but is that perception reality?" He emphasized, "Perception is not reality, perception is not reality."

 

Dr. Adesina pointed to a revealing statistic. "A 14-year survey by Moody's analysis showed that the default rate on infrastructure projects in Africa was only 1.9%," he said. In contrast, he continued, "default rates were significantly higher in North America (6.6%), Latin America (10%), and even East Asia (12%)." "So, is Africa the risky one?" Dr. Adesina questioned.

 

Yet look at the yields on bonds issued by African countries and countries in Latin America: for the same credit rating of similar BB-rated countries in the two regions, the one in Africa pays 1.1% interest rate higher than those in Latin America.

 

"Look at the ease of borrowing for African countries compared to Latin America," he urged. "For countries with the same credit rating, African nations pay significantly higher interest rates," he explained. "An African country with a BB rating pays 1.1% more interest than a similar rated country in Latin America," Dr. Adesina said, citing specific figures. This translates to a hefty price tag, according to Dr. Adesina. "This year alone, Africa will pay an extra $74 billion in loan service payments compared to 2010," he said.

 

Dr. Adesina then presented a solution to reduce these unfair costs. "The United Nations Development Program found that greater transparency in credit rating could save African countries a whopping $75 billion in interest payments," he revealed.

 

"So, this year, Africa will pay $74 billion in loan service payments, a rise from $17 billion in 2010. The United Nations Development Program (UNDP) found that if African countries were transparently and fairly treated in ratings by credit risk agencies, they would save at least $75 billion in interest payments."

 

"Do you see the high cost of bias?" he asked.

 

The rise of misinformation is a threat

 

Dr. Adesina then shifted his focus to the growing problem of misinformation.

 

"As media business models radically shift away from conventional advertisement and subscription-driven models, the potential for even more negative and stereotypical biases will increase.  The dominance of Facebook, Instagram, Twitter (now "X"), and YouTube; the rise of bots, trolls, and the use of artificial intelligence to shape and influence content, challenges the notions of media independence, transparency, and editorial control. While the fragmentation of the media ecosystem has expanded space for self-expression, it has also created a new slew of problems, including foreign interference in shaping the African narrative."

 

"There's a flood of misinformation about Africa, and it's getting worse," he lamented.   He attributed this to the rise of social media and the decline of traditional media outlets. "As business models change and rely less on advertising, the potential for negativity and stereotypes will only increase," Dr. Adesina warned.

 

"The growth of bots, trolls, and the use of what some might call 'African intelligence' to manipulate social media content threaten media independence, transparency, and editorial control," he explained.

 

"While the fragmentation of the media landscape has created more space for people to express themselves, which is a good thing," Dr. Adesina continued, "it's also become a breeding ground for problems like foreign interference in shaping the narrative about Africa."

 

He cited a recent study to support his point. "A March 2024 report by the Africa Center for Strategic Studies titled 'Mapping a Sword of Disinformation in Africa' found that disinformation campaigns targeting African information systems have nearly quadrupled since 2020," he said. "This is having destabilizing and anti-democratic consequences."

 

Dr. Adesina explained the negative impacts of disinformation. "The rise of disinformation is fueling efforts to manipulate political discourse within governments, sow distrust between citizens and their leaders, and exacerbate ethnic, religious, and economic divisions," he said. "This ultimately undermines the stability of African countries."

 

The critical role of African media

 

Adesina argues that African media is often overshadowed by foreign outlets, which can perpetuate negative stereotypes. He proposes creating a well-funded, independent African media organization to counter this bias and project a more accurate image of the continent.

 

According to a survey by Africa NoFilter, foreign media houses do not devote adequate time and resources to building networks of correspondents on the ground level, relying instead on Western agencies. This biased reporting often overlooks progress and improvement in Africa, with the bulk of stories reported from a Western perspective.

 

"African media has a critically important role by being fair, objective, inquisitive, investigating, yes, but also by being a catalyst for development and promoting positive news about Africa's accomplishments and achievements." He added, "Unfortunately, due to a lack of resources and opportunities, African journalists walk in as correspondents for foreign news organizations, many times for the repositories that feed the stereotypes that are against the world."

 

"To address these challenges," he said. "I would therefore like to propose that the African Development Bank, Africa Import-Export Bank, and all regional financial institutions pull resources to support the emergence of a globally respected African media company that will position the news of Africa to the world."

 

"Africa must shape its own narrative, and not depend on what others think about it or the perspectives they prefer to share about it, its achievements, and opportunities.

 

Third, the development institutions in Africa should set up a joint repository of verified and standardized stories, videos, and content that will make it easier to aggregate and write stories on what's being achieved in Africa. This will lower the search costs of news houses for stories on what is working in Africa.

 

Fourth, to recognize and profile African journalists, correspondents, and media houses that promote Africa with unbiased stories, the African Development Bank will work with the All Africa Media and African corporates to establish the Annual Africa Media Prize."

 

Fifth, the African Development Bank, working with partners and the African corporates will also help establish the African Journalists' and Correspondents' Fellowships to help build and strengthen the capacities of journalists and correspondents working on Africa."

 

"As the renowned Africanist writer Chinua Achebe wrote "Until the lions have their own historians, the history of the hunt will always glorify the hunter," he said.  "Now is the time for Africans to tell their own stories and shape the narrative of the continent,"

 

"But the stories of us, as Africans, written by Africans, about Africa, and confidently projected to the world,"  he concluded.

 

 

 

 

Kenya: Fact-Checked - Six Claims By Kenya's Deputy President On the Cost of Living

Gachagua was largely correct that the cost of fertiliser has fallen during the Ruto administration, from KSh7,000 per 50-kilogram bag to a subsidised price of around KSh2,500 per bag.

He was also mostly correct about the price of maize flour over the same period, saying it dropped from KSh240 for a two-kilogram bag in September 2022 to around the KSh130 mark in 2024.

But the deputy president misrepresented the strengthening of the shilling, saying it fell from KSh162 to the US dollar "when we came in" to KSh134 at present. While the current exchange rate is correct, it was at around KSh120 to the dollar when Ruto and he were sworn in.

In March 2024, Kenya's deputy president Rigathi Gachagua spent time in his political backyard trying to quell simmering dissent over taxes on avocados.

 

 

Kenya is one of the world's leading exporters of the fruit, and central Kenya one of the main growing areas.

 

New tax rules in the country require farmers to submit electronic invoices for their sales, causing uproar.

 

As Gachagua reassured farmers, agriculture minister Mithika Linturi was battling an explosive fake fertiliser scandal that threatened the March to May 2024 planting season - and his own career.

 

While using artificial intelligence (AI) tools to monitor public debate, we came across claims made in an article by Tuko, a popular Kenyan digital news platform.

 

In the article, dated 26 March, Gachagua praised his boss, president William Ruto, for reducing the price of fertiliser and maize meal and lowering the local currency's exchange rate against the US dollar.

 

"Tulipoingia, mbolea ilikuwa KSh7,000, sasa ni KSh2,500 -kazi ya Rais William Ruto. Tulikuwa [tunanunua] unga KSh240, sasa imeteremka, KSh130, KSh135, KSh125. Dollar ndiyo hiyo ilikuwa KSh162, sasa ni KSh134," Gachagua said.

 

 

Translated from Kiswahili, this means: "When we came in, the price of fertiliser was KSh7,000, now it is KSh2,500 - Ruto's work. The price of maize flour was KSh240, now it is KSh130, KSh135, KSh125. The dollar was at KSh162, now it is KSh134."

 

Ruto and Gachagua took office in September 2022, and despite economic turbulence, say they are on track to deliver on their pre-election promises, including reducing the cost of living despite economic turmoil.

 

But are Gachagua's figures accurate? We took a closer look.

 

Fertilisers are mainly used to help plants grow by providing them with essential nutrients that may not be sufficiently available in the soil.

 

For historical price data, Dr Timothy Njagi, a researcher at the Tegemeo Institute, an agricultural policy think tank in Kenya, referred us to the National Agricultural Information System database.

 

 

Run by the ministry of agriculture, the database provides farmers, traders and processors with daily market prices for agricultural commodities.

 

It has prices for three types of fertiliser: diammonium phosphate (DAP), calcium-ammonium nitrate (CAN) and nitrogen-phosphorus-potassium (NPK).

 

A much-vaunted subsidy by the government covered DAP, CAN, NPK and three others - urea, sulphate of ammonia and muriate of potash (MOP).

 

The data shows that a month before Ruto and Gachagua took office, retail prices for a 50 kilogram bag of fertiliser ranged from KSh4,000 (KSh80 per kg) to KSh9,000 (KSh180 per kg).

 

Fertiliser prices July-August 2022 (KSh)

DAP   CAN   NPK

Highest        9,000 7,750 7,500

Lowest         5,400 4,000 4,000

Source: Kenya Agriculture Management Information System

 

The national cereals board (NCPB) also monitors prices. In its last report before the two leaders took office, prices were between KSh4,400 and KSh7,500 on 27 May 2022.

 

Publicly available market data supports Gachagua's claim.

 

Ruto announced the fertiliser subsidy in his September 2022 inauguration speech.

 

He said: "... we have already made arrangements to make 1.4 million bags of fertiliser available at KSh3,500 for a 50-kilogram bag, down from the current KSh6,500. This will be available from next week."

 

The agriculture ministry implemented the subsidy by the state-owned NCPB selling fertiliser at between KSh1,775 and KSh3,500 for a 50-kilogram bag as of 30 September, two weeks into the new administration.

 

However, the agency noted that market prices remained higher, at KSh4,400 to KSh7,600.

 

In August 2023, Ruto said the subsidised fertiliser prices had been further reduced to KSh2,500 for a 50-kilogram bag.

 

Africa Check contacted the NCPB by email, who told us the prices had fallen. "Currently the fertiliser we are handling is KSh2,500," spokesperson Noah Koskei said.

 

We therefore rate Gachagua's claim as mostly correct.

 

However, data from the agriculture ministry's database - which tracks unsubsidised prices - shows that market prices remain at between KSh4,500 and KSh7,500 for a 50-kilogram bag.

 

 

The price of maize and maize meal is a political issue because it is the country's staple food. We have previously fact-checked other claims made by Ruto on maize prices.

 

In July 2022, shortly before Ruto was elected, his predecessor Uhuru Kenyatta introduced a controversial maize flour subsidy that he said would reduce the price of a two-kilogram packet "from KSh205 to KSh100".

 

However, the subsidy did not cover premium maize flour brands.

 

A June 2023 parliamentary report investigating the subsidy put the maize flour prices at between KSh190 and KSh215.

 

Tegemeo's Dr Njagi has researched maize prices in Kenya. He directed Africa Check to the government database for price information. The database tracks 12 brands of maize flour.

 

It showed that on 12 September 2022, the day before Ruto and Gachagua were sworn in, a two-kilogram packet of maize flour was selling for between KSh193 and KSh256 in Nairobi's supermarkets. These prices held the day after the swearing-in.

 

We rate the claim as mostly correct.

 

Gachagua made this claim in March 2024. To verify this, Africa Check checked with four supermarkets that stocked a total of 15 brands of maize flour.

 

At Carrefour, one of the largest chains in the country, prices ranged from KSh280 to KSh124. However, the cheapest brand was sold at a 10% discount. It usually sells for KSh147. Retailers often mark down the prices of fast-moving items close to their expiry date to avoid wastage.

At Naivas, another large chain, prices ranged from KSh167 to KSh265.

At Chandarana prices ranged from KSh107 to KSh206, while at Quickmart they were between KSh138 and KSh215.

Gachagua's claim checks out - there's maize flour within his price range of KSh125 and KSh135, and even cheaper. The minimum price is also lower than the prevailing prices in September 2022. However, prices for premium brands remain high.

 

We therefore rate the claim as mostly correct.

 

According to the Central Bank of Kenya, one US dollar exchanged for an average of KSh119.45 in August 2022. In September, the month Ruto took office, the exchange rate was KSh120.42 per dollar.

 

The local currency weakened from KSh121.03 per dollar in October 2022 to KSh159.69 in January 2024. The dollar averaged KSh161 in February 2024.

 

As the shilling weakened sharply, the central bank governor Kamau Thugge said it was overvalued, a sentiment later echoed by finance minister Njuguna Ndung'u.

 

Ruto claimed that his predecessor, Kenyatta, had used foreign currency reserves to prop up the shilling, thereby "maintaining an artificial exchange rate".

 

But Gachagua was wrong, the dollar was not at KSh162 when he and Ruto were sworn in. All data shows that the shilling weakened significantly against the dollar during Ruto's nascent administration.

 

In the week that Gachagua spoke, the central bank's weekly bulletin showed that the dollar had traded at KSh132.38, down from KSh134.01 the previous week.

 

In this respect, Gachagua was right.

 

In May 2024 the local currency was trading at about KSh133 to the dollar.

 

Why the fortunes of the shilling have changed

 

Deputy president Rigathi Gachagua omitted the central bank's intervention - the bank buying dollars from the market - to curb exchange rate volatility.

 

Dr Naftaly Mose teaches international economics at the University of Eldoret. He has written extensively on the Kenyan economy and in 2022 co-authored a paper on the exchange rate and capital flight.

 

Mose told Africa Check that the sudden strengthening of the Kenyan shilling exchange rate - from KSh162 to KSh134, as mentioned by Gachagua - was "due to large dollar inflows and increased investor confidence in the economy".

 

"The central bank has also been actively involved in the forex market," Mose said over email.

 

He said Kenya received a US$1.5 billion Eurobond, part of which was used to repay its dollar-denominated debt and ease pressure on the shilling. As the Eurobond news broke, the government also announced that its KSh70-billion infrastructure bond had been oversubscribed - "a sign of investors' confidence", Mose said.

 

Economists and Kenyan business leaders have however been sceptical about the sustainability of the strong exchange rate, as the fundamentals of the economy - its debt burden, trade balance and interest rates - have not improved.

 

"The public debt problem will remain a major concern and the main weakness of the exchange rate valuation in Kenya. Increased political interference in central bank roles may also increase shilling volatility," Mose cautioned.

 

Read the original story, with links and other resources.

 

 

 

 

Kenya: Dissenting Voices At Nairobi Soil Health Forum Over Increased Fertilizer Use

Nairobi — As the Africa Fertilizer and Soil Health Summit convened in Nairobi to review the progress made in terms of increasing fertilizer use in line with the 2006 Abuja Declaration, experts, practitioners, activists, and even government officials pointed out that accelerated fertilizer use may not be the magic bullet for increased food production in Africa.

 

During the opening ceremony of the summit, Kenya's Prime Cabinet Secretary, Musalia Mudavadi, who was also the guest of honor, said that in Kenya, there are places where fertilizer has been used optimally, but maize yields have stagnated.

 

"Though fertilizers are estimated to contribute more than 30 percent of the crop yield, we have witnessed in our country that fertilizer alone cannot sustain increased agricultural productivity and production," he said.

 

Studies have also shown that the use of nitrogen-based fertilizers has had a significant impact on soil acidity in many African countries, which is a major constraint on crop production and the sustainable intensification of smallholder farming systems.

 

 

According to an ongoing research project known as Guiding Acid Soil Management Investments in Africa (GAIA), 15 percent of all agricultural soils in Africa are affected by acidity issues and this has led to land degradation, decreased availability of soil nutrients to plants, and decreased plant production and water use.

 

According to Dr George Oduor, a soil scientist and international research consultant, African farmers should now consider or scale up the use of the Integrated Soil Fertility Management (ISFM) approach with a focus on return on investment and consider the use of lime on acidic soils.

 

"There is a need for governments in Africa to develop locally responsive tools that can advise farmers on how to combine different organic and inorganic fertilizers, how and when to intercrop with legumes for nitrogen fixation, and what crops to prioritize in different agroecological zones," said Oduor in an interview with IPS.

 

However, some activists feel that there is a need for a complete shift from synthetic fertilizers to organic methods of farming such as agroecology, the regenerative agriculture (RA) approach, and permaculture, among other sustainable farming techniques.

 

"The heavy financial burden placed on African nations to support the purchase of expensive, imported fertilizers drains local economies and diverts funds from more sustainable local agricultural investments," said Bridget Mugambe, the Programme Coordinator at the Alliance for Food Sovereignty in Africa (AFSA).

 

She called on governments and policymakers at the summit and across Africa to recognize the enormous potential of agroecology to sustainably increase food security and food sovereignty, so as to reduce poverty and hunger while conserving biodiversity and respecting indigenous knowledge.

 

 

So far, Kenya is one of the African countries that is in the process of developing policies for agroecology. The country also launched the National Agriculture Soil Management Policy (NASMP) alongside the Nairobi AFSH summit. The policy will help facilitate the restoration and maintenance of agricultural soils in order to increase productivity, improve food security, and contribute to poverty reduction while conserving soil and water resources for future generations.

 

Within the local governments, Murang'a County in Central Kenya was the first to develop the legal framework for agroecology, through which the government can easily allocate resources for organic fertilizer and pesticide production.

 

"The main reason why we had to pioneer in this is that our region is highly impacted by climate change, and therefore agroecology became a priority as a way of adapting to the phenomenon," said Daniel Gitahi, the Director for Agriculture Value Chains, Policy, and Strategy.

 

"The second reason is that, as a county government, we observed that our yields were going down despite optimal use of fertilizers, and after research, we discovered that our soils had become more acidic due to overuse of nitrogen based fertilizers," he said.

 

Other solutions showcased at the summit include the use of 'bokashi' fermented organic fertilizer, which has transitioned from small-scale production to a commercial scale in a few African countries.

 

"I have been able to transform my tea plantation using bokashi; as well, I no longer use fertilizers on my maize farm in West Pokot County, and yet my yields have almost doubled," said Esther Bett, the Executive Director at the Resources Oriented Development Initiative (RODI Kenya).

 

RODI Kenya is already packaging and selling bokashi fertilizers through agrovet shops across the country, and has the capacity to produce up to 10 tonnes per month.

 

Allan Ligare from Mzuri Organics in Kakamega County, working in collaboration with the International Centre for Insect Ecology (ICIPE), brought along organic fertilizer made using black soldier flies while in the process of making animal feeds. "This fertilizer contains all the important nutrients; it adds organic matter to the soil; and it helps in the retention of soil moisture," he said.

 

A 2022 study published in the Nature scientific journal found that insect frass fertilizers made from all the insect species had adequate concentrations and contents of macronutrients, nitrogen (N), phosphorus (P), potassium (K)], secondary nutrients (calcium, magnesium, and sulphur), and micronutrients (manganese, copper, iron, zinc, boron, and sodium).

 

The main objective of the 2024 AFSH Summit is to highlight the central role of soil health transformation in stimulating sustainable, pro-poor productivity growth in African agriculture and food systems and to adopt the 10-year Africa Fertilizer and Soil Health Action Plan.

 

IPS UN Bureau Report

 

Follow @IPSNewsUNBureau

 

Follow @IPSNewsUNBureau- IPS.

 

 

 

Africa: Zimbabwe, Zambia Turn to East Africa for Maize Support

Southern African countries, once regional food basket and a significant supplier of grain to East Africa, now faces a substantial deficit, prompting them to turn to Uganda and Kenya for maize.

 

Zambia, grappling with a deficit exacerbated by the ongoing drought in Southern Africa, is seeking to procure at least 500,000 tonnes of maize from Uganda.

 

Similarly, Kenya's William Ruto has pledged maize to Zimbabwe to alleviate the hunger crisis in Harare. During a recent official visit to Zimbabwe, President Ruto committed to donating $1 million worth of maize to supplement the government's drought relief efforts.

 

Zambia is contending with famine due to a prolonged dry spell that has severely affected maize production in 84 out of its 116 districts.

 

According to Uganda's Ministry of Agriculture, there is an agreement to supply up to 500,000 tonnes of maize to Zambia.

 

"The Ugandan government has received an expression of interest for up to 500,000 tonnes of maize grain to be exported to Zambia," an official stated.

 

The move could strain supplies to Kenya and increase the cost of staple given the fact that the country relies on cross border imports to cover for its local deficit.

 

Zambia's vulnerability assessment report for 2023 projected that over two million people will face food insecurity from October 2023 to March 2024.

 

Kenya has historically relied on Zambia and Zimbabwe to fill local maize deficits, as these countries have been major producers of surplus stocks.

 

While Zambia is the second-largest maize producer in Southern Africa after South Africa, the El Niño-related phenomenon has led to drought conditions, prompting Lusaka to declare a national disaster.

 

- Business Day Africa.

 

 

 

 

Africa: AI Becomes Latest Frontier in China-Us Race for Africa

Johannesburg — What's the future of Artificial Intelligence in Africa?

 

When that question is entered into the AI platform ChatGPT, it answers that it "holds immense potential for transformative impact across various sectors," notably health care, agriculture and education.

 

Human experts tend to agree, and AI is fast becoming the latest frontier in U.S.-China competition on the continent.

 

"To advance in AI research and innovation, African countries will need significant investments in computing infrastructure," said Chinasa T. Okolo, a Center for Technology Innovation fellow at The Brookings Institution. "The U.S. and China could potentially be good partners to help with such initiatives."

 

 

In the coming years, researchers predict AI companies will run out of data in English and Western languages but that is not the case in Africa where much more data is still needed, Okolo said.

 

"Thus, by investing in Africa, companies from AI superpowers like the U.S. and China stand to gain valuable data that they could use to build services and systems to be sold back to African countries," she said.

 

South Africa's AI drive

 

One country on the continent that is rapidly pursuing AI is South Africa.

 

At a government summit on AI in April, Mondli Gungubele, the minister of communications and digital technologies, said, "The era of generative AI is just beginning, and as a country and a continent we cannot and must not allow ourselves to be left behind."

 

 

South Africa has already established the Artificial Intelligence Institute of South Africa, or AIISA, and it is rolling out "hubs" at universities across the country. It was created to ensure that the country's industries and sectors benefit from AI, said Hitekani Magwedze, spokesman for the ministry of communications and digital technologies.

 

"Through the AIISA, we have now created AI hubs in manufacturing and services, farming and agriculture, automotive and transportation, and military and defense," with more sectors planned, Magwedze told VOA.

 

"South Africa has global partnerships with major countries such as U.S. and China in the G20 and BRICS," he said. "These leading countries see South Africa as a gateway into Africa and the developing countries agenda."

 

Magewedze said AI can help with unemployment, inequality and poverty in the country.

 

In May, Tshwane University of Technology will launch a new AI Career Tech Center in collaboration with U.S. tech giant, Intel.

 

 

"The AI hubs across the country are partnering with strong partners from the international community to achieve the objectives of the AI institutes," said Anish Kurien, Acting Director of the university's AIISA hub.

 

Earlier this month, South Africa's Department of Defense launched a Defense Artificial Intelligence Research Unit at the country's military academy.

 

"There is a need for African solutions to African challenges, and AI is an enabling technology of the [Fourth Industrial Revolution] which will play a role in solving many of the social issues facing our beloved continent," Wayne Dalton, the deputy director of the new research unit, told VOA.

 

When asked about U.S.-China involvement, Dalton said, "South Africa's AI strategy and goals are in their infancy" but "there will be plenty of opportunities for the U.S. and China to help us achieve these goals."

 

The increased focus on AI in South Africa comes at a time when public opinion has increased for China and slightly decreased for the U.S., according to a new Gallup report released in April.

 

Trends in public opinion may not necessarily apply to collaboration on the AI front, and African nations will partner with parties that can offer the most value, said Okolo.

 

"While the U.S. government has provided substantial aid to African countries, China took a different approach by leading with infrastructure investments, which will increasingly become important as African countries aim to bolster their telecommunications and data infrastructure," she said.

 

China and US interest

 

The U.S. has already invested in AI in Africa. Silicon Valley giant Google opened its first AI lab in Ghana, while IBM has research facilities in Kenya and South Africa.

 

At an American Chamber of Commerce Business Summit in Nairobi last month, U.S. Commerce Secretary Gina Raimondo announced a partnership to enable U.S. companies to invest in AI and data centers in Kenya.

 

Lisa Walker, managing director for Africa operations at Prosper Africa, a U.S. government trade initiative, told VOA the organization is advancing partnerships under U.S. President Joe Biden's Digital Transformation with Africa strategy.

 

"Prosper Africa launched the Africa Tech for Trade Alliance in April of last year. Today, there are 24 private sector partners under this Alliance including industry leaders like Google, AWS, Intel, Cisco Systems, Visa, Mastercard, PayPal, UPS, DHL, FedEx and others," she said.

 

China also has taken an interest in AI in Africa. For over a decade, China has been investing in the continent's internet infrastructure and connectivity through President Xi Jinping's Belt and Road Initiative.

 

In April, a China-Africa Internet Development and Cooperation Forum was held in the China's southeastern coastal city of Xiamen and attended by representatives from some 20 African countries.

 

"Africa is an important participant in scientific and technological progress. The development and application of AI is of great significance to the developing countries, including China and African countries," Liu Pengyu, spokesperson for the Chinese Embassy in Washington, told VOA.

 

As for U.S.-China competition in AI, Liu said, "China is willing to carry out communication, exchanges and practical cooperation with all parties, including Africa and the United States, on AI global governance to ensure that AI always develops in the direction of human civilization and progress."

 

During their meeting in San Francisco last year and a recent phone call, Liu said, Chinese and U.S. leaders agreed to promote cooperation in the field of AI. Liu added that the two sides will soon hold the first intergovernmental dialogue on AI.

 

Prosper Africa's Walker had a different take when asked about U.S.-China competition, saying U.S. companies had "incomparable brand value."

 

"It's the focus on mutual growth, local job creation and shared prosperity that continues to set American tech companies apart from international competitors," she said.

 

However, Brookings Institution fellow Okolo is more pessimistic about U.S.-China involvement in Africa.

 

"While I've seen rising interest in Africa from the U.S. and China, I believe it's honestly hard to say how well these countries are interested in specifically working with African countries to advance AI innovation," said Okolo. "While American and Chinese researchers often collaborate with each other in academic AI research, these countries themselves are vying to be leaders within the 'AI race.'"

 

According to the recently released AI Index Report from Stanford University's Institute for Human-Centered Artificial Intelligence, the U.S. was the leading source of top computer programs known as AI models last year, with 61 compared to China's 15. However, it found that China led globally in terms of AI patents with 61.1%, while the U.S. accounted for only 20%.- VOA.

 

 

 

Mozambique: University Students Condemn New Telecommunication Tariffs

Maputo — A group of university students have submitted a letter to the Mozambican National Communications Institute (INCM), the regulatory body for telecommunications, contesting the new tariffs for voice, data and SMS services, which they claim have been increased by around 150%.

 

This is a startling claim, since the INCM says it has reduced tariffs, not increased them.

 

According to the general coordinator of the Association of Mozambican Final Year University Students (AEFUM), Nélio Zunguza, who was speaking to reporters on Wednesday, in Maputo, minutes after the document was handed over to the INCM, the new tariffs directly affect students at all levels, from elementary to higher education.

 

 

"As the voice of the students, we feel the need to put forward our position, demanding a review of the new data tariffs recently published by the INCM', he said.

 

However, the INCM, claims that the tariff for voice calls has dropped from six meticais (about nine US cents) per minute to five meticais per minute. The average price of the data service fell from 2.30 to 1.08 meticais per megabyte. Regarding the average price of the national SMS service, the INCM claims this has fallen from 1.70 to 1.1 meticais per text message.

 

But users insist that, in reality, the tariffs have increased. According to the independent daily "O Pais', a top-up of 1,000 Meticais (about 16 US dollars, at the current exchange rate) used to allow unlimited calls and text messages, as well as about 27 gigabytes of internet usage for 30 days. The same amount is now only enough for 800 minutes of calls, just 5.7 gigabytes and 500 SMS during the same one-month period.

 

 

With these new tariffs, Zunguza believes that research is under threat in Mozambique and foresees a reversal of previous advances in terms of digitalization, technological progress and research in the country.

 

"The universities have three fundamental pillars: teaching, research and extension. We had challenges acquiring top-ups at the previous prices, now the situation has become more complicated, especially for parents and carers', he said.

 

According to Zunguza, Mozambique is one of the four countries in Africa with the most expensive internet, "jeopardizing the Sustainable Development Goals.'

 

He also said that the increase in tariffs goes against the commitment made by the signatory countries to make the internet accessible to the entire population, so that the world can become "a global village.'

 

He promised to take further action, if the INCM ignores the students' letter.

 

When he announced the new tariffs, the INCM chairperson, Tuaha Mote, declared "the mission of the INCM, as the telecommunications regulator, is to guarantee the availability of infrastructures, good quality services, a competitive environment and prices that are accessible to consumers, seeking to ensure the stability and sustainability of the market'.

 

He guaranteed that prices would come down, but consumers now complain that the opposite has happened.

 

In its latest claims, the INCM says that the only significant change is that it has prevented operators from offering unlimited internet access and unlimited numbers of phone calls, in order to end "unfair competition'.

 

The INCM's initial announcement was deceptive, since nobody buys telecommunications services one phone call or one megabyte at a time. There are a bewildering variety of packages and bonuses offered by the three mobile phone companies (T-Mcel, Vodacom and Movitel) and by the various internet service providers.

 

Nobody in the Mozambican media has yet worked out whether the average price of these packages has risen or fallen.

 

One of the main service providers, TV-Cabo (Cable TV), in March increased its prices for its combined phone and internet services by about four per cent. Its justification was that it was just passing on to the consumers the extra prices it is paying its providers for television content.

 

The INCM said nothing about this price rise. Indeed, TV-Cabo has regularly increased its prices without so much as a whisper from the regulator.

 

 

 

 

Kenyans in the Diaspora Urged to Send More Money Back Home

Nairobi — The government has urged Kenyans living in the Diaspora to invest back at home.

 

In a statement delivered during a cultural event in Kingston, Jamaica, the Principal Secretary of Diaspora Affairs, Roseline K. Njogu, urged people living abroad to maintain strong ties back at home and take advantage of investment opportunities in various sectors.

 

The PS affirmed that this step will be fundamental to spurring the social and economic growth of the country.

 

"The PS, in the statement, encouraged Kenyans in the Diaspora to maintain and nurture the linkage back home by investing in various sectors of the economy for good returns and the socio-economic growth of Kenya," the State Department of Diaspora Affairs stated on X.

 

 

Cumulative inflow for the 12 months to January 2024 totaled $4,253 million compared to $4,039 million in the same period in 2023, which accounts for an increase of 5.3 percent, as per CBK data.

 

Njogu further assured that the government will strive to bring government services closer to Kenyans in the Diaspora, such as mobile consular services.

 

The PS further assured that the welfare of Kenyans living in the diaspora will always remain central and the driving force behind government programs and initiatives for the full benefit of Kenyans abroad.

 

"The PS in a statement read on her behalf by Mr. Glenns Etyang, Assistant Director in the Office of the PS during a cultural event in Kingston, Jamaica, reiterated and supported the efforts to adopt a holistic approach in serving the Kenyan Diaspora," it stated.

 

- Capital FM.

 

 

 

 

UK exits recession with fastest growth in two years

Stronger than expected growth at the start of the year saw the UK's economy emerge from recession.

 

The economy grew by 0.6% between January and March, the fastest rate for two years, official figures showed.

 

The UK had fallen into recession last year after the economy contracted for two three-month periods in a row.

 

The chancellor said the economy was "returning to full health", but Labour said this was no time for a "victory lap".

 

On Thursday, the governor of the Bank of England, Andrew Bailey, told the BBC that the economy had turned a corner, but that it was not yet a strong recovery.

 

Yael  Selfin, chief economist at KPMG UK. said "the worst is behind the UK economy".

 

"We expect to see continued growth for the rest of this year," she added, with falling inflation and rising wages helping "to repair some of the damage to household incomes and support households' consumption".

 

Liz McKeown, director of economic statistics at the Office for National Statistics (ONS), said the economy had seen "broad-based strength across the service industries with retail, public transport and haulage, and health all performing well.

 

"Car manufacturers also had a good quarter. These were only a little offset by another weak quarter for construction," she added.

 

Growth was led by services - that includes sector such as hospitality, arts and entertainment - and was likely to have been helped by an early Easter in March. Last year, it was in April.

 

The ONS said there was anecdotal evidence from looking at credit and debit card transactions that consumers have been treating themselves to clothing and home furnishings.

 

'It feels like things are picking up again'

Ed Beardwell

Bike shop owner Ed Beardwell says business seems to have turned a corner

Ed Beardwell has owned the RollQuick cycle shop in Bristol for the past 11 months, and says the business "just about breaks even".

 

He cites the cost of living as an issue. "People are pretty cost-sensitive in Bristol. An awful lot of bikes get stolen and that keeps down the price that anyone is willing to pay."

 

Poor sales during the recession led to a focus on bike servicing, which now accounts for 70% of his turnover.

 

Mr Beardwell told the BBC that while the winter had been disappointing, business seems to have turned a corner.

 

"It does feel like things are getting busier and picking up again. When you look at the sales statistics we are down on this point last year but tracking better than at the end of last year."

 

Graphic showing quarterly GDP growth

While the economy contracted during the second half of last year, the recession was the mildest in recent records.

 

The size of the economy is measured by gross domestic product (GDP), which looks at all the economic activity of companies, governments and people in a country.

 

Most economists, politicians and businesses want to see GDP rising steadily, because it usually means people are spending more, extra jobs are created, more tax is paid and workers get better pay rises.

 

The debate about the strength of the economic recovery is set to be a central battleground in the general election campaign.

 

Responding to the latest growth data, the Chancellor, Jeremy Hunt, said: "There is no doubt it has been a difficult few years, but today's growth figures are proof that the economy is returning to full health for the first time since the pandemic."

 

Labour's shadow chancellor, Rachel Reeves, who earlier this week had accused the government of being delusional about the state of the economy, said this was "no time for Conservative ministers to be doing a victory lap".

 

"After 14 years of economic chaos, working people are still worse off," Ms Reeves added.

 

Liberal Democrat Treasury spokesperson Sarah Olney said the figures were little cause for celebration.-BBC

 

 

 

 

Apple apologises after piano crushing ad backlash

Apple has apologised after a backlash over an advert that showed objects, including musical instruments and books, being crushed by a hydraulic press.

 

Apple said the advert fell short of its goal of empowering and celebrating creatives, in a statement released to marketing publication Ad Age.

 

The video was meant to demonstrate how creativity has been compressed into the latest iPad.

 

But celebrities including Hugh Grant and Justine Bateman reacted with horror to the destruction shown in the advert.

 

“Our goal is to always celebrate the myriad of ways users express themselves and bring their ideas to life through iPad. We missed the mark with this video, and we’re sorry,” Tor Myhren, Apple’s VP of marketing communications said in the statement.

 

Apple boss Tim Cook has been called tone deaf for his post on X, formerly Twitter, about the device, where he asked people to "imagine all the things it’ll be used to create".

 

The advert attempts to show what Apple's latest tablet is capable of, such as watching television programmes, listening to music and playing video games, while making the point that the new device is particularly thin.

 

It does this by using a video theme that has been around for almost a decade of musical instruments being crushed.

 

However, in this instance, it seem the tech giant has also succeeded in mangling its own reputation, with complainants saying the ad actually shows how tech is stifling creativity rather than encouraging it.

 

Actor Hugh Grant labelled it "the destruction of the human experience, courtesy of Silicon Valley".

 

The criticism is particularly pointed because of the concerns in many of the creative industries about artificial intelligence (AI) taking people's jobs.

 

Actor and film-maker Justine Bateman, a vocal critic of the use of AI in the film industry, said Apple's ad was "crushing the arts."

 

Multi-platinum selling songwriter Crispin Hunt called the act of destroying musical instruments evocative of burning books.

 

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The comments underneath Mr Cook's post on X have been particularly negative, with one person calling it "extremely distasteful", and another saying it makes them feel "ashamed to buy Apple products".

 

People based in Japan appear to be prominent amongst the critics, which some said "lacked respect".

 

Some said this was based in "tsukumogami” - a term from Japanese folklore describing a tool which can contain a spirit or even soul of its own.

 

"The act of destroying tools is arrogant and offensive to us Japanese," one person explained, while another said musicians valued their instruments "more than life itself".-BBC

 

 

 

Rat remains found in bread sparks Japan recall and refunds

One of Japan's most well-known bread brands is recalling thousands of packets and offering refunds after the remains of a rat was found in its products.

 

Around 104,000 packs of sliced white bread made by the Pasco Shikishima Corporation have been pulled from shelves. Parts of the black rat had been discovered in at least two packets.

 

Pasco bread is a staple in many Japanese households and a ubiquitous presence in supermarkets and convenience stores across the country.

 

There have been no reports thus far of anyone falling sick as a result, Pasco said in a statement earlier this week.

 

"We deeply apologise for the inconvenience caused to our customers, business partners, and all concerned parties," it said.

 

The bread was produced at a factory in Tokyo, whose assembly line has been suspended.

 

Pasco did not say how the rat's remains ended up in its products, but it pledged to "do our utmost to strengthen our quality controls so that this will never happen again".

 

The company has since published a form on its website for affected customers to apply for refunds online.

 

Its products are also exported to the US, China, Australia, and Singapore, among other countries.

 

Food recalls are rare in Japan, a country with famously high standards of sanitation.

 

However there have been several health scares involving food recently.

 

Earlier this month, hundreds of students in the north-eastern Miyagi prefecture fell sick after drinking milk supplied to their schools.

 

In March, drugmaker Kobayashi Pharmaceutical issued a voluntary recall of dietary supplements meant to lower cholesterol. The firm said last month it is probing five deaths potentially linked to the products, which contain red yeast rice.

 

Last year, the convenience store chain 7-Eleven apologised and announced recalls after a cockroach was found in a rice ball.-BBC

 

 

 

 

The post-Brexit hard sell for British food in Asia

In Asia, discussing food is like discussing the weather - it can get people talking for hours.

 

But when the BBC recently visited one of the region’s leading food and drink events, it became clear that there are some cuisines that leave even the foodies speechless.

 

“British food?” asks one Thai woman with a perplexed pause. “Um… I’m not really sure what that is. Is that, like, sausage?”

 

A Malaysian man nearby was less hesitant to offer his opinion: “It’s boring! Definitely nothing special,” he laughs.

 

These are sobering words for British exporters, who were promised easy access to lucrative new markets after Brexit.

 

In 2021, to give one example, former International Trade Secretary Liz Truss told UK food producers they had a "golden opportunity" to get British food "to the top of the global food menu".

 

The reality is that the UK still lags far behind its main European counterparts, both in terms of sales and reputation.

 

“It’s a massive job educating people,” says Stephen Jones, managing director of cheese exporters Somerdale International.

 

>From his stall at the FHA Food and Beverage Trade Show in Singapore, he introduces locals to strange-sounding cheeses such as Stinking Bishop, Double Gloucester and Wensleydale.

 

“The French, the Swiss, the Italians - they’ve been doing it a lot longer than we have. We're coming in fairly late getting that message across,” he adds.

 

Seeing groups of South East Asian visitors trying - and liking - Wensleydale for the first time certainly raises a smile. But the UK’s small pavilion is dwarfed by Italy’s show-stopping display, which is just around the corner.

 

There you find Michelin-starred chefs giving live cooking demonstrations, while the winner of Italian MasterChef chats away with her country’s ambassador. For Italy, as well as being good for its economy, selling food to Asia has long been an act of diplomacy.

 

“Doing this kind of stuff is a major part of the job,” says Dante Brandi, who has been the Italian ambassador to Singapore and Brunei since last year.

 

Stephen Jones, managing director of cheese exporters Somerdale International

Stephen Jones, here chatting to visitors at the food fair, says it is a "massive job educating people"

Speaking to the BBC under an Italian tricolour and the logo of his country's Ministry of Foreign Affairs, Mr Brandi explains how trade shows form part of the machinery of government.

 

“It’s an overall effort from what we call ‘Sistema Italia’”, he says. “The group of institutions all aimed at promoting our food, gastronomy and way of life, which we spread through our diplomatic and consular network all around the world.”

 

However, it is clear that this kind of success is not achieved overnight. For example, panettone is now a Christmas fixture in Singaporean supermarkets. But the woman who originally introduced the festive treat to South East Asia says it took "years of activities, tastings and promotions" to eventually get it onto shelves here.

 

"Food is obviously a key export for Italy and something Italians are very proud of," says Giuseppina Pravato from Jupiter 57, an Italian delicatessen in Singapore.

 

"We have a great rapport with the Italian institutions, but 20 years ago it was basically just me, bringing in hundreds of pieces of panettone and literally just gifting them to whoever would try it," she adds.

 

The gulf between Britain and, in this case, Italy should not come as a surprise. To a large extent this is a long-term issue, which predates Brexit or the current UK government, and speaks to a country’s fundamental economic priorities.

 

Last year Italy exported more than €64.4bn (£55.4bn; $69.1bn) worth of food and drink globally, while the UK sold £24.4bn ($30.5bn). When you look at these numbers as a proportion of gross domestic product (GDP), exporting food and drink is around three times more valuable to the Italian economy than it is to Britain's.

 

Most British food exporters seem to take a pragmatic view of where they stand in the global food market. The issue, many argue, is that the government is not doing enough to match its rhetoric when it comes to changing the situation.

 

PS8/UK FDEA A British exhibit at a food show in SingaporePS8/UK FDEA

A British exhibit at a food show in Singapore

In fact, the UK delegation in Singapore told the BBC they were only able to attend because they paid out of their own pockets.

 

“Since 2019, we’ve received no government money whatsoever to help us come to these kinds of shows,” says Karen Beston from the Food and Drink Exporters Association.

 

“It makes it very difficult to stand out against the other European groups or other world groups that are almost fully funded by their respective governments,” she adds.

 

When this was put to the UK government by the BBC, the Department for Environment, Food & Rural Affairs (Defra) said: “Promoting the interests of our farmers and food producers is a priority of our trade policy”.

 

Defra also pointed out that - although suppliers do not receive any direct public money to help them attend trade shows - last year it spent £1.6m on events to promote sales of British food, such as tastings and networking opportunities.

 

Currently, the UK exports £3.5bn ($4.4bn) worth of food and drink to Asia, which is an increase of 18% since 2019. This is proof, British ministers would say, that Britain's status as an "independent trading nation" has benefitted the country's businesses since it left the European Union.

 

But in that same period, Italy’s exports to Asia grew by 36% to €6.1bn (£5.2bn; $6.6bn).

 

“Having a supportive government is definitely important,” says Italy's Ambassador Brandi.

 

“But a major advantage we enjoy, along with other EU states, is the free trade agreements we have with many important Asian countries,” he adds.

 

Nevertheless an opportunity - whether golden or not - does exist for British producers in the wake of Brexit.

 

More than 60,000 people visited this year’s event in Singapore. By the start of the next decade, analysts estimate people in Asia will spend $8tn annually on food.

 

“The potential is huge,” says Japnit Singh, chief operating officer at Spire Research and Consulting in Singapore.

 

“A few years ago, it was very local food-centric here. I used to say that would never change, but I was wrong. We're seeing a transformation in habits - people want to eat western food and they’re willing to pay for it,” he adds.

 

According to Mr Singh, rising incomes, increased travel and - crucially - social media have helped make the Asian palate increasingly adventurous.

 

Somerdale International Somerdale cheese.Somerdale International

British cheesemakers are keen to export their products to Asia

Chasing this market is at the centre of the UK government’s post-Brexit trade strategy. Last year, Britain signed a deal to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is a free trade agreement between 11 countries.

 

At the time, UK Prime Minister Rishi Sunak hailed it as a demonstration of “the real economic benefits of our post-Brexit freedoms.”

 

However, the government's own estimates say the deal will only add 0.08% to the size of the UK's economy over ten years. Besides, it already had free trade agreements with all the countries in the CPTPP, except Malaysia and Brunei.

 

Although UK food exporters are being guided towards regions like Asia, the current reality is that the EU market is still four times bigger.

 

The problem is that trade with European countries is now increasingly fraught with post-Brexit issues. One recent estimate put additional red tape costs at £58m for exporters last year.

 

“Due to all the new regulations, it’s actually easier for us to sell to China than it is to France - which is crazy,” says Mr Jones from Somerdale International.

 

The UK government insists it is looking at the longer term picture. Last year, International Trade Secretary Kemi Badenoch told the BBC that these new markets will not "replace EU trade", but rather that they were "in addition" to it.

 

"You wouldn't buy a small company and expect it to be delivering on the same day - we are thinking about the potential," she added.

 

When it comes to potential, Mr Jones from Somerdale International agrees: “The Union Jack actually has a decent reputation abroad when it comes to prestige and food safety, which is especially important in China.”

 

After tasting his cheese, the sceptical Thai punter from earlier returned an approving thumbs up. For Mr Jones, this is all part of the educational process - one piece of Wensleydale at a time.-bbc

 

 

 

 

Argentines strike against spending cuts under Javier Milei

A general strike against public spending cuts has affected most of Argentina, where schools, banks and many shops remained closed.

 

Train and metro services were suspended on Thursday, with a limited bus service running.

 

One of the main union leaders, Hector Daher, said the 24-hour strike was a wake-up call to President Javier Milei.

 

Mr Daher urged him to review some of the cuts to subsidies and social programmes.

 

Mr Milei, a right-wing economist, has begun implementing comprehensive austerity measures since coming into power in December.

 

He says his measures are necessary to reduce Argentina's public deficit and control the country's inflation rate, which is the highest in the world at nearly 300% a year.

 

The president criticised the strike, saying his government had already made many concessions to the unions.-bbc

 

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

Cellphone:         +263 71 944 1674 | +27 79 993 5557 

Email:                <mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


NMB

AGM

Head Office 19207 Liberation Legacy Way

15 May 2024 | 3pm

 


Old Mutual Zimbabwe

AGM

 

22 May 2024 | 3pm

 


Nampak

EGM (to approve the change of auditors to Axcentium)

Virtual

23 May 2024 | 9am

 


 

Africa Day

 

25 May 2024

 


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.

 


 

 


 (c) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:  <mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993 5557 | +263 71 944 1674

 


 

 

 

 

 

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