Major International Business Headlines Brief::: 24 May 2024
Bulls n Bears
info at bulls.co.zw
Fri May 24 10:02:35 CAT 2024
<https://bullszimbabwe.com/>
<http://www.bullszimbabwe.com> Bullszimbabwe.com <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish Thoughts <http://www.twitter.com/BullsBears2010> Twitter <https://www.facebook.com/BullsBearsZimbabwe> Facebook <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe
Major International Business Headlines Brief::: 24 May 2024
ü Kenya: President Ruto Urges U.S. to Lead Global Debt Relief Efforts
ü Kenya: Biden, Ruto Urge Global Lenders to Ease Debt Burden
ü Liberia: Govt Insists Rice Is U.S.$16.75
ü Nigeria: Aviation Minister, Predecessor Clash Over Emirates' Return to Nigeria
ü South Africa - Gold Mine Pollution Is Poisoning Soweto's Water and Soil - Study Finds Food Gardens Are At Risk
ü Africa: As East Africa Grows, Southern Africa Is Being Left Behind
ü Nigeria: Special Report - Kaduna Ginger Farmers Count Losses As Disease Ravages Crop, Ruins Livelihood
ü Nigeria: Convert Abandoned Shell Airstrip in Oloibiri to Air Force Base - Senate Tells Govt
ü Malawi: IMF Staff Completes Mission to Malawi
ü Malawi: Road Contractors to Hold Vigil At Roads Fund Administration Over Delayed Mk14bn Payment
ü Nigeria: Turkish Airlines to Resume Airlifting of Stranded Nigerian Passengers, As NCAA Wades in
ü Musk opposes US tariffs on Chinese electric cars
ü Google to make Pixel phones and drones in India
ü Why technology has not transformed building
<https://www.cloverleaf.co.zw/> Kenya: President Ruto Urges U.S. to Lead Global Debt Relief Efforts
Washington, D.C. — Kenyan President William Ruto has called on the United States to spearhead a comprehensive plan to alleviate global debt distress. During a joint press conference with U.S. President Joe Biden at the White House on Thursday, Ruto emphasized the need for the U.S. to double its contribution to concessional financing under the World Bank's International Development Association (IDA) program.
President Ruto said that increased support from the U.S. would significantly address global challenges that currently divert resources from essential development projects to debt servicing. "Doubling the U.S. contribution to the IDA program will greatly assist in tackling issues that hinder development due to debt burdens," he noted.
In response, President Biden affirmed that the United States would champion necessary reforms of the global financial system to address these concerns. He stressed the urgency of these reforms, stating, "Failing to act immediately places freedom, democracy, and security under threat."
The press conference marked a pivotal moment in Ruto's state visit to the U.S., underscoring the shared commitment of both nations to addressing global financial instability and fostering sustainable development.
President Ruto's call for action aligns with his broader agenda during his U.S. visit, which has included discussions on enhancing bilateral relations, increasing investment opportunities, and promoting regional security. The visit aims to strengthen the strategic partnership between Kenya and the United States, addressing both nations' mutual interests in stability and economic growth.
The Kenyan leader's plea for increased U.S. involvement in debt relief initiatives highlights the critical need for collaborative international efforts to ensure financial stability and economic development, particularly in developing countries facing significant debt challenges.
- Capital FM.
Kenya: Biden, Ruto Urge Global Lenders to Ease Debt Burden
Kenyan President William Ruto is the first African leader to make a state visit to Washington since 2008. He and Joe Biden are set to announce a slew of new US investments in the East African country.
Kenyan President William Ruto and US President Joe Biden will call on major economies to reduce the debt burden crushing developing countries on Thursday.
Ruto's three-day trip to Washington is the first state visit to the US by an African leader in more than 15 years.
The Kenyan president said on Wednesday that his talks with Biden would focus on "how we can have a fairer international financial system where all countries are treated equally."
Leaders hail Nairobi-Washington Vision
The two leaders are set to announce a plan called the Nairobi-Washington Vision.
It calls on creditor nations to reduce financing barriers for developing countries that have high debt burdens, and to offer debt relief where necessary.
Ruto and Biden will also call on multilateral banks to offer better financing terms.
It comes as the US attempts to position itself as a more favorable economic partner to African countries than China.
"Together we will call to the international community to come together around these elements to support high-ambition countries with high-ambition financial support," the White House said in a fact sheet ahead of the announcement on Thursday.
Fresh US investment in Kenya
The White House has announced $250 million (€230.6 million) in grants for the World Bank's International Development Association to assist poorer countries facing crises.
Biden will also announce a slew of investments in Kenya specifically, including a $180 million loan to Acorn Holdings to develop affordable student housing and a $10 million loan to Kentegra Biotechnology to build a new plant for organic pesticide ingredients.
zc/rt (AP, Reuters)
Liberia: Govt Insists Rice Is U.S.$16.75
Reports of an increase in the price of rice have stirred anger among Liberians, and many have been reminding the government that the nation's staple food is recorded as one of the causes of the past civil conflict.
Liberian Commerce Minister Mr. Amin Modad has urged rice dealers to sell the 5% Indian Parboiled rice at USS16.75 per bag, warning against any price hike or hoarding.
"The Ministry of Commerce & Industry is cautioning the general business community to sell the 5% Indian Parboiled rice at the stipulated price of USS16.75 per bag," a statement signed by Minister Modad on Wednesday, 22 May 2024, said.
His latest decision on Wednesday changes his previous announcement on Tuesday, suggesting that the government had made the hard decision to increase the price of a 25kg bag of rice to US$18.50 starting Wednesday.
His justification on Tuesday for the increase in the price of rice included the continuation of the duty imposed on the commodity by the Indian government, among other things.
However, President Joseph Nyumah Boakai subsequently met with rice importers and other stakeholders on Tuesday, and a decision was taken that the price of rice on the market would not increase.
"Any entity or individual found hoarding, hiking, or creating other forms of artificial shortage of the commodity on the market will face the full weight of the law," the Minister of Commerce warned.
"Two days ago, the Ministry of Commerce & Industry announced a pending increase in the price of rice due to several factors," Mr. Modad recalled.
Based on continued discussion with the importers and other stakeholders, Mr. Modad agreed that adjustments would be made after reviewing other cost drivers necessitating further engagements.
"Subsequently, the President, His Excellency Joseph N. Boakai, met with the rice importers and other stakeholders; predicated upon evolving possibilities, he decided that there will be no increase in the price of rice on the market," the release said.
Meanwhile, Minister Modad disclosed that the Government and rice importers remain engaged in addressing their concerns, particularly regarding the increasing costs of doing business and the bottlenecks they have raised.
The Ministry of Commerce & Industry has reassured the public that there is no shortage of rice on the market or further increase in the commodity's price as is being speculated.
He detailed that the Inspectorate of the Ministry of Commerce & Industry will be vigilant in monitoring and inspecting warehouses and business entities for compliance.
- New Dawn.
Nigeria: Aviation Minister, Predecessor Clash Over Emirates' Return to Nigeria
The former aviation minister, Osita Chidoka, said the Emirate's return to Nigeria is a reminder of the deepening lack of Nigeria's "national pride" in the world
Nigeria's Aviation Minister, Festus Keyamo, and one of his predecessors, Osita Chidoka, took to social media on Wednesday to trade words over the return of Emirates Airlines flight to Nigeria.
Last week, Emirates Airlines announced that it would resume flight services to Nigeria on 1 October; after over a year, it suspended operations there due to difficulties in repatriating trapped funds.
Following the announcement, on Wednesday, Mr Chidoka, a chieftain of the opposition Peoples Democratic Party (PDP), in a statement posted on his official X page, criticised the federal government and the airline's imminent return to the Nigerian airspace.
According to the statement titled; "No to The Return of Emirates Airlines to Nigeria ", Mr Chidoka ascribed the airline's return to Nigeria as a reminder of the deepening lack of "national pride" and the growing irrelevance of Nigeria in the world.
"The gleeful announcement of the return of Emirates Airline to Nigeria by the Hon. Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, on X is a sad reminder of the deepening lack of national pride and the growing irrelevance of Nigeria in the world," the former minister wrote.
He said the audacity of Emirates Airlines to even consider returning to Nigeria "reeks of contempt and disdain towards our nation" and that the actions of the United Arab Emirates (UAE) government and their airline, Emirates, from the unwarranted visa ban on all Nigerians to the suspension of flights, have been nothing short of a blatant attack on the dignity of Nigerians.
Background
In November 2022, Emirates suspended flights to Nigeria. It said the measure started on 29 October 2022 and blamed it on its inability to repatriate revenue from the country.
At the time, the airline said it had communicated its position to the federal government and the Central Bank of Nigeria (CBN).
"Under these extraordinary circumstances, Emirates had no option but to suspend flights to/from Nigeria from 29 October 2022 to mitigate against further losses moving forward," the airline management said.
At the time, Emirates lamented that it had not repatriated its blocked funds from the country amidst lingering scarcity of forex in the country.
"Without the timely repatriation of the funds and a mechanism in place to ensure that future repatriation of Emirates' funds does not accumulate in any way, the backlog will continue to grow, and we simply cannot meet our operational costs nor maintain the commercial viability of our operations in Nigeria," the airline said.
In March, the Central Bank of Nigeria (CBN) announced that the government had cleared all 'valid' foreign exchange backlogs.
"Our sovereignty is not for sale."
Mr Chidoka, who served as Nigeria's Aviation minister under former President Goodluck Jonathan, recalled that during his time in office, Emirates Airlines enjoyed an unprecedented two slots to Lagos and one slot to Abuja granted by my predecessor and sustained over the years.
"This gesture showed Nigeria's desire to forge close relationships and build regional alliances in the Gulf," the statement said.
Mr Chidoka claimed that when Nigeria faced economic challenges, Emirates "shamelessly abandoned" the country's airspace while other airlines stood by us.
"Emirates Airlines, arguably the wealthiest airline in the world, was the only airline that suspended operations," Mr Chidoka added.
He said, "All the African and European Airlines, equally owned by the Nigerian government, continued operating and weathered the storm with us as a people--a remarkable show of solidarity and a vote of confidence on a market they had enjoyed for decades."
Additionally, the former minister noted that Emirates Airlines, like UAE's Mubadala, the principal investor in Etisalat Nigeria, fled at the first sign of trouble, leaving Nigerians stranded and insulted by their mean behaviour.
"They did not just walk away. The UAE government imposed an egregious visa ban on all Nigerians," Mr Chidoka said, noting that the imposition of a visa ban on all Nigerians is an unwarranted and vile display of aggression and dehumanisation of Nigerians.
Based on this, the former Minister urged Nigerians to say no to the unjustified stigmatisation and degradation of Nigerians, almost akin to the ghettos of 20th-century Europe.
"A national visa ban suggests a desire to humiliate and cast a slur on people as a group," he added.
Mr Chidoka emphasised that the behaviour of the UAE government and their airline is an unprovoked attack and that Nigeria should insist on a wholesome redress.
"As we speak, there is no word yet on the visa ban and no apology to Nigerians," the statement said.
Mr Chidoka said the Nigerian government must not allow Emirates Airlines to waltz back into its skies without being held accountable for their "disrespectful and demeaning" conduct.
"We demand a thorough investigation and restitution before even considering their return. Respect for our nation and people is non-negotiable and a minimum. We will not allow our pride to be trampled upon by arrogant corporations or foreign governments," the former minister said.
He urged the current administration to reaffirm Nigeria's priceless sovereignty at all times.
"Hypocrisy has never been this audacious" - Keyamo
In response to Mr Chidoka's criticism of the Emirates Airline's imminent return to Nigeria, Mr Keyamo questioned his predecessor's patriotism to Nigeria.
He asked why Mr Chidoka failed to dish out a similar piece of advice to his principal, Atiku Abubakar, the presidential candidate of the PDP during the last presidential election.
"Thank you, @osita_chidoka for your opinion. However, to demonstrate your patriotism, sincerity and fidelity to the touted 'Nigerian Pride', the big puzzle is, why did you fail to similarly advise your boss, principal and mentor ATIKU Abubakar @atiku to immediately relocate from Dubai to Nigeria and sell off all his assets there in protest when the ban on visa and flights were announced?," the minister tweeted on his X page, stating that "Hypocrisy has never been this audacious!"
The minister said it is curious that, as a member of the think-tank of the PDP, the party's election strategy at a time (popularly dubbed 'the Dubai Strategy') was hatched in the same Dubai and not in Nigeria before the ban was announced.
"Why export a purely Nigerian project to Dubai if you loved Nigeria so much?" Mr Keyamo queried.
For the avoidance of doubt, the minister claimed that the Tinubu-led government is focused on fostering healthy relationships with major partners around the world for the ultimate benefit of Nigerians.
"Considering the huge investments and interests of Nigerians in the UAE, should we continue to engage in 'Bolekaja' (motor park) diplomacy capable of hurting the Nigerians?" he asked.
Also, Mr Keyamo questioned whether the imminent return of Emirates to Nigeria and, in a reciprocal manner, Air Peace returning to operate the Nigeria-Dubai route does not lead to better competition, which will ultimately crash the present high fares on that route.
"Who will benefit more? How many Emiratis visit Nigeria and invest here as much as Nigerians visit the UAE and invest there? Have you bothered to ask about the lifting of the visa ban before issuing your warped statement? For your information, that has been resolved too, and the announcement is imminent," Mr Keyamo said.
He said, "Rather than craftily resorting to the card of false nationalism in pursuit of cheap political points, you should have told Nigerians the economic disadvantages Nigeria stand to suffer, if any, as a result of the commendable effort of the Tinubu administration to straighten our relations with our friends in the UAE."
"I will advise your PDP to work harder to regain power in 2027 and maybe resume your hostilities with the UAE authorities thereafter," Mr Keyamo said.
Nigerians react
Both ministers' statements have generated several reactions from Nigerian citizens on social media.
While some Nigerians commended the constructive criticism of the Emirate's return, others urged the leaders to prioritise the interests of Nigerians.
An X user, Temi(@drteepie), said: "I agree with this, Hon Minister. Osita is shortsighted in this matter. Lifting of the visa ban and the imminent return of the Emirates will do a lot for Nigerians more than any other nationality. Emirates announced $5.1billion profit this year without coming to Nigeria."
In his opinion, Temi said, "Nigerians have a lot of interest in the UAE, which this direct flight services will help boost more. So, Osita, please take the back seat on this issue and stop embarrassing your principal."
Another X user, Adeniyi Kolade(@nykolade) said, "Unfortunately, the violence and personal abuses in the ministers' response overshadow the good points he raised on the matter. He should have made these points void of personal beef and insults."
"You didn't reply to that post by Osita as a minister appointed to serve the people of Nigeria but your party, the APC. You rather answer the questions from a political and combatant direction! Nigeria is a nation, not a football club! How did you pass the bar, Mr Keyamo?" said Christy Jane (@cathebely) in another tweet.
- Premium Times.
South Africa - Gold Mine Pollution Is Poisoning Soweto's Water and Soil - Study Finds Food Gardens Are At Risk
For 140 years, gold mines in Johannesburg, South Africa have been leaking wastewater contaminated with heavy metals. The acid mine drainage from Johannesburg's estimated 278 abandoned mines and 200 mine dumps includes uranium (a radioactive metal), toxic arsenic, copper, cobalt, nickel, lead and zinc. Acid mine drainage can pollute land and water sources up to 20 kilometres away from a mine unless it is remediated by mining companies. The contamination cascades through food webs and poisons river water, plants and animals.
Before 1994 in South Africa, African communities were forcibly relocated to places near mine dumps in Soweto, south-west of Johannesburg. Today, Soweto is home to 1.9 million people who are exposed to acid mine drainage.
Fellow environmental scientists Salerwe Mosebi, Khayalethu Ntushelo and I researched how acid mine drainage affects urban agriculture in Soweto. Residents of the area rely on their small vegetable gardens to supplement their income and help meet their nutritional needs.
Read more: Acid drainage: the global environmental crisis you've never heard of
Our research found that acid mine drainage has contaminated the streams, irrigation water sources and subsequently, the soil on the land adjacent to the Klip River, which flows south and west of Soweto.
In very mild doses, exposure to the heavy metals in acid mine drainage can cause dehydration and abdominal pain. In cases of serious exposure, birth defects, brain damage, cancer and miscarriages can result.
Mining companies are supposed to keep money aside to rehabilitate the environment after they close, and can only close down once government has granted a closure certificate. But this did not always happen in the past.
The authorities, both government and mining companies, should appreciate the seriousness of the situation so that they can do something about it. Strategies could include chemical treatment of the water and construction of wetlands along the rivers. Wetland plants can soak up large quantities of contaminants, such as heavy metals.
What we found
We took samples from river sediment, river water, borehole water, and cultivated and uncultivated soil in vegetable gardens all along the Klip River. We also took samples of spinach leaves in the gardens.
We ran a variety of tests using different approaches, to see whether microbes or microscopic organisms, which can be bacteria, viruses or fungi, had been adversely affected by acid mine drainage.
The results showed extreme toxicity near the mine dumps at abandoned mines (the source of acid mine drainage). People living closest to these sites were the most affected.
Bacteria are the most robust and hardy forms of life yet the sites we tested were found to be unlivable for all life. Microbes were unable to survive the levels of contamination.
Our findings provide compelling evidence that acid mine drainage is indeed detrimental to the microbial community. It could be disrupting the delicate microbial networks that are so important for a healthy environment.
How does this pollution affect Soweto residents?
Soweto residents are affected by the mine dumps, toxic dust and the polluted land and rivers. I grew up in Tladi, Soweto, very close to the Klip River. My friends and I used to play in the river, and cross it on makeshift and precarious stone bridges to get to church and shops on the other side. We were oblivious to the danger of acid mine drainage at the time.
Today artisanal miners, locally known "zama-zamas" (meaning "we try! we try!") are re-mining the dumps. They are extremely exposed to the heavy metals because they handle the acid mine drainage, often without any protective clothing.
In the last 20 years, government has offered some incentives to mining companies to pump away the acid mine drainage so that it is not continuously leaking into Soweto's rivers and streams.
However, our study found that this is simply not enough. The residents to the north of Soweto's Dobsonville, Diepkloof and Meadowlands neighbourhoods live almost on top of mine dumps and they are most affected.
Our research found that soil from uncultivated fields in Soweto was more toxic than soil from the cultivated fields. This is because crops in the cultivated fields are irrigated with more healthy borehole water, which originates underground. It is possible that this borehole water dilutes the metal concentrations and reduces contamination in cultivated soil.
This means that farmers will need to irrigate with tap or borehole water, rather than river water. This is costly and less convenient for small farmers living along the river.
Read more: Urban farming produces more than food: social networks are a key spinoff
People who live along the Klip River are also at risk of being exposed to heavy metals. We also found that the rest of Soweto's residents are very vulnerable to heavy metal dust that is blown around during strong winds.
We hope the government will take steps to safeguard people in Soweto affected by acid mine drainage. This will help ease the burden on an already strained public health sector now and in the future.
The abandoned mines should be lawfully decommissioned. People living very close to the mine dumps must be relocated, and a rehabilitation programme must be implemented to sustain urban agriculture.
Lesego Khomo, Senior Lecturer: Department of Environmental Science, University of South Africa
Africa: As East Africa Grows, Southern Africa Is Being Left Behind
Why is Southern Africa's economic growth the worst of all Africa's regions, while East Africa is number one?
With an economic growth rate exceeding its population growth, Africa should be achieving economic development advances - but that is not the case. Poverty remains widespread, and there are huge differences in performance between the continent's five regions. This is influenced by geographic location, structures of individual economies, commodity dependence, regional political dynamics, and resilience to global shocks.
In the African Development Bank's African Economic Outlook 2023, East and Southern Africa's economic growth rates stand out (see graph). Over the 2021-25 period, Southern Africa is the continent's worst regional performer, while East Africa is number one. In fact, projected growth rates indicate that East Africa will accelerate while Southern Africa will continue to underperform
How do these two regions compare? Of the 13 countries in Southern Africa, 69% are middle-income economies. In contrast, only 38% of East Africa's 13 nations hold middle-income status, with most still classified as low-income. The general notion that low-income countries tend to grow faster than middle-income countries could favour East African economies in their growth trajectory. But that is not enough to fully explain the two regions' varied performance.
The broad structures of the two regional economies differ. Ten East African countries are non-resource-intensive economies, versus seven in Southern Africa. Both regions have one oil-exporting country - South Sudan in East Africa and Angola in Southern Africa.
Southern Africa dominates with five economies rich in non-oil resources, while East Africa has only two. The fact that East African countries are less exposed to global commodity booms and busts in their economic structure may benefit the region. This is evidenced by the 2023 Macroeconomic Performance and Outlook report, which indicates that from 2021-24, non-resource-intensive economies tended to grow faster than the other categories.
Southern Africa contributes 22% to Africa's gross domestic product (GDP), while East Africa's contribution rose from 14% in 2018 to 17% in 2022. A 2023 Euromonitor article reported that East Africa's contribution to continental GDP is projected to account for as much as 29% by 2040. This projected growth in the region's GDP depends on a continued high-growth path in this part of Africa.
Apart from the influence of the global economy, shocks and geopolitical events, regional dynamics and neighbouring countries' performance have strong knock-on effects. In the case of Southern Africa, South Africa and Angola together account for 75% of the region's output. In East Africa, four economies - Ethiopia, Kenya, Tanzania and Uganda - account for around 84% of the region's output (see map diagrams).
Even though all the economies are exposed to global geopolitical shocks and continued global uncertainties, East African countries tend to be more resilient than those in Southern Africa in terms of growth.
Underperformance in Southern Africa could predominantly be attributed to the stagnation of South Africa's economy and its impact on the region. The numerous political, structural, and macroeconomic challenges in South Africa and other countries in the region affect physical and social infrastructure. This reduces productivity and constrains domestic demand.
Botswana and Mauritius have above average long-term growth performances, with higher growth expectations for Mozambique and Zambia. Despite this, Southern Africa's economic growth is expected to be insufficient to carry the region forward significantly. Moreover, Southern Africa is plagued by high external debt burdens, poverty, inequality, and especially youth unemployment.
In contrast, East Africa's robust economic performance is driven by the strong showing of seven of the region's 13 countries. Rwanda, Ethiopia, Uganda, Tanzania, Djibouti, Kenya and Seychelles are the highest performers, with average growth rates of over 5%. Rwanda was one of the key sustainable growth success stories with a growth rate exceeding 7% on average annually. These impressive results benefit the rest of East Africa despite Somalia and Sudan's political instability.
Several key policy decisions drive economic growth in East Africa: the Look East Policy of embracing China, investment in road and communications infrastructure, support for agriculture, and prioritising connectivity and trade within the region.
Mega infrastructure projects cover roads, ports, airports, railways, dams, bridges, hydropower projects and crude oil pipelines. Examples include Kenya's 592km Standard Gauge Railway, a train line between Addis Ababa and Djibouti, Uganda's Karuma Hydropower Project, Tanzania's newly planned Bagamoyo Port, the Bugesera International Airport Expressway in Rwanda, and South Sudan's Juba International Airport.
The region is now reaping the benefits of these infrastructure projects, even though financial arrangements with China remain complex.
A large part of East Africa's growth is driven by the service sector. Government spending and strategic investments have supported in-country connectivity and intraregional trade. With a rising middle class, regional demand for banking, insurance and healthcare is also increasing. East Africa is known for its agricultural exports, and the modernisation of agricultural production was a crucial part of government spending. Djibouti, for example, improved its transport infrastructure to become an interregional logistics and trade hub.
Although Southern and East Africa are exposed to the effects of climate change, skills shortages and unemployment, continued growth and development in the two will depend on internal and regional growth dynamics.
While East Africa is on a positive, sustainable growth path, Southern Africa is stagnating. Growth and development in these two regions will depend on the extent to which the economies can individually and collectively navigate their growth trajectories. Southern Africa should focus on political and policy certainty, macroeconomic stability and enhanced regional cooperation to address its lagging growth.
This article was first published in the ISS' African Futures and Innovation blog, Africa Tomorrow.
Elsabé Loots, Professor of Economics, Faculty of Economic and Management Sciences, University of Pretoria
- ISS.
Nigeria: Special Report - Kaduna Ginger Farmers Count Losses As Disease Ravages Crop, Ruins Livelihood
Kaduna ginger farmers are struggling to get back on their feet after an infection devastated their crops last year
On a sunny morning last August, Jatau Malichy, 65, left his home in Mafo-fadia, a village in Kachia Local Government Area in the southern part of Kaduna State, north-west Nigeria, to inspect his farm. After retiring as a librarian with the state government, Mr Malichy devoted himself to cultivating ginger on the five-hectare farm. But what he noticed of the crops that day left him bewildered and heartbroken. The crops were wilting.
Over a few weeks from July, a 'strange disease' gradually devastated the crops. Mr Malichy's 58-year-old widow, Bathsheba, believes the shock over the loss of his crops led to his death a few days later on 7 August.
The community had practised ginger farming for as long as Mrs Malichy could remember. She and her husband used proceeds from their farm to build their house in the village in 2019. "Our plan was that after that 2023 harvest, we would not farm again. So we doubled what we normally planted, hoping for more proceeds," she told this reporter at the village in February. The family employed 50 people from neighbouring villages to work on the farm during the planting season.
"But we harvested nothing. The worst part is that I lost my husband to the epidemic. He was a hardworking man and the breadwinner of this family. He left me unexpectedly to cater for our four children alone."
Mrs Malichy said three of the children are still in school.
The family's experience with their farm was shared by hundreds of farmers across the area. In 2023, an outbreak of a fungal disease led to the loss of ginger crops valued at hundreds of millions of naira in southern Kaduna. The disease affected about 2,500 hectares of farms in seven local government areas of the state.
A professor at the Institute of Agricultural Research (IAR) at the Ahmadu Bello University (ABU), Zaria, Sarafi Afiniki, said a team sent by the institute to the area after the outbreak confirmed "a devastating problem of crop production."
Mrs Afiniki said from the samples of the affected crops collected, "the level of infection in terms of disease incidence shows that almost all the fields were diseased while others were totally destroyed."
A Sinking Business
Nigeria is one of the top producers of ginger globally, competing with India and China with its high-quality output sought after for its pungent aroma, high oil content and oleoresin. In 2021, Nigeria exported 523,000 metric tonnes of ginger worth $12 million, about 14 per cent of global supply that year. Nigeria exports most of its produce to Europe.
In Kaduna, ginger is a major source of income for farmers and traders. It is grown mainly in the southern part of the state. But, since the outbreak of the epidemic, local producers said production has declined.
A farming season to forget
Raymond Sule has been a ginger farmer for five decades. "I inherited it from my parents, just like others in many parts of Southern Kaduna," he said.
"In 2023, I was expecting at least N1.3 million from my harvest because I did four hectares and hoped to harvest between 45 and 50 bags. That was more than what I used to do.
"Instead, as we dug out the crop during harvest, we saw tiny sizes. The crops had been destroyed by the infestation."
Mr Sule said he could not take his mind away from the loss. "It is affecting my mental health, I must confess."
In the Kachia Local Government Area, this reporter counted 10 warehouses built by Chinese businessmen and wealthy traders for ginger. But at least two of the warehouses now store charcoal. When this reporter moved across communities in the area, smoke billowing from tree-burning sites in the forest told a story: charcoal has overtaken ginger as the biggest product in the area.
Residents told PREMIUM TIMES that illegal felling of trees became a major economic activity after the fall of the "booming business (of ginger) in the region."During investigations for this report in February, PREMIUM TIMES observed that the increasing felling of trees for charcoal production could erode the area's biodiversity and aggravate the global climate crisis.
Living on the brink of debts
Leo Bakut, the head of Kamanahuang Farmers Club in Kachia, said members of the association took a loan of N800,000 from a company, Afex Fair Trade Limited, while preparing for the 2023 ginger planting season. However, the farmers could not repay the loans because of poor harvests.
"Apart from the loan, I invested my pensions in it too," said the 59-year-old retired soldier. "I have N506,320 balance to repay and they have called me countless times."
Another farmer, Neyu Thomas, said he obtained a loan of N700,000 from his church.
"The money they gave me was public money. I was only considered for it because of my position in the church and now I've betrayed their trust," Mr Thomas lamented.
Morin Kahuwai, a person living with disability, said she did not get "even a bucket of ginger" during her harvest. She narrated how she was motivated to take up ginger farming by her sister, who is one of the leading female farmers in the area. She said her sister had assets and sponsored her children for postgraduate programmes with proceeds from ginger farming. But the epidemic turned this season into a nightmare for all the farmers, she said.
"It's a serious issue because, as a single parent, I rely on my farm to feed my two children."
'No ginger, no food'
Jaba LGA has a reputation for producing a highly spicy and tasty variety of ginger. Victoria James has a farm in the area. She had just returned from the bush to hew firewood when the reporter met her in the village of Kurmin Jatau.
"People here use firewood because we cannot afford cooking gas. The ginger we all rely on is gone," she said.
Dogo Ayuba also said the epidemic destroyed his crops in August. "I took out a loan to buy fertiliser and chemicals but I have been unable to pay back."
"The government is not supporting smallholder farmers. They know that ginger is our major livelihood in Kaduna but they have ignored our plight."
Hard work, zero yield
Pius Kwasau, 59, said farmers like him working a few acres in Katargo LGA found living hard after the epidemic. He said he spent his savings on fertiliser and other inputs but did not get anything out of the farm.
Across the local government areas in Southern Kaduna that PREMIUM TIMES visited, farmers told the same stories and urged the government to at least provide them with seeds and other agricultural inputs to help them participate in the next planting season.
Poor farming practices worsen impacts of epidemics - Experts
Fidelis Dutse, a lecturer at the Department of Agricultural Extension and Rural Development at ABU Zaria, said inadequate education on farming methods and disease management was responsible for the ginger infestation.
"The level of awareness on agricultural practices for farmers in Southern Kaduna is weak because there are few extension agents around and some local governments do not have one at all. This gap leads to indiscriminate use of chemicals, fertilisers and other inputs because the farmers believe the more they apply, the more extinction of weeds and growth of what they planted. Alas, the effect of this practice might lead to several challenges like this," Mr Dutse told PREMIUM TIMES in Zaria.
To prevent future problems, he said, the government needs to be "proactive in empowering farming communities with beneficial and sustainable training to create uniform regulation on the scientific recommended dosage and method of application of agro-chemicals on ginger."
He also urged the state government to assist the farmers with a pre-emergency fund, "which is usually set aside for natural occurrences like this, to help mitigate the impact of the crisis."
Corroborating Mr Dutse's observation, Mrs Afiniki, the professor at the IAR, ABU Zaria, said there is poor communication between the government and farmers on agricultural practices in the state.
"There are some measures like crop rotation, use of seeds from a healthy field, raise-bed and others which might help to prevent the widespread of the disease but they didn't know. If they had known, they would be more meticulous in their agricultural practices," she said.
On the solution to this particular disease, she said: "The organisms that affect crops like ginger are many so one needs to find the root cause of what is responsible for the outbreak before you can know the treatment to recommend as the symptoms differ, from what you see on the field, and you need to really identify the organism that caused this.
"The team at IAR has the farming mandate system for Northwest states, including Kaduna, so we went to the field immediately after the outbreak and we observed that it is a devastating problem of crop production. Samples of the affected crops were collected and the level of infection in terms of disease incidence shows that almost all the fields were diseased while others were totally destroyed.
"Based on this, we did some laboratory work and isolated some organisms. But we have to do a pathogenesis test, which we are yet to do because it requires some inputs, and it is after this that we know the right things to do to prevent future outbreaks."
'Government should act now' -- Traditional rulers
Speaking with this newspaper, Peter Kure, the district head of Jaba, said the community was in stagnation due to the ginger epidemic that has brought developmental setbacks to them.
"We now suffer from hunger. Our people will be happy to get seeds to try planting again but the government is not forthcoming with any assistance so far, even though Jaba produces the best ginger here."
The octogenarian said the epidemic has pushed up the local price of ginger to around N100,000 from N40,000.
Peter Digah, the village head of Kenyin in Katargo LGA, said the government sent officials to register farmers in the area but has made no further communication since last year.
"While we believe they might have plans, not executing the plans before the next planting season will be disastrous as we don't have any seeds to plant again. Our lives are tied to ginger, they should act now."
Kaduna Government Reacts
However, the Kaduna State government said it has a plan for the farmers, a claim corroborated by a key actor in the sector.
Kamaldeen Raji, the managing director of AFEX Nigeria, the company that gave loans to many farmers in Kachia, told PREMIUM TIMES that many farmers took part in the company's 2022 wet season input financing programme.
"Their repayment was due prior to the breakout of the epidemic around July 2023, which we are aware had a significant effect on the 2023 programme participants."
Mr Kamaldeen said the company was treating the farmers' debts as a civil matter and was collaborating with the state government to help the farmers.
"Our work in the regard of climate and natural disasters is evolving as a key part of our response today is the inclusion of yield insurance products within the framework of the input financing programme for farmers to take advantage of.
"In some cases of default, we can work out a refinancing agreement with farmers and have done so in extenuating circumstances, where we are able to verify all information and arrive at a plan that balances stakeholder requirements.
"We joined the taskforce set up by the Kaduna government as part of our remediation strategy and we are coming up with practical solutions to combat the 2023 experience."
When contacted, Murtala Dabo, the state's commissioner of agriculture, told PREMIUM TIMES that the state government distributed fungicides to smallholder farmers affected by the disease outbreak. He said the government has other plans too to remedy the situation.
"Immediately the disease was discovered, the Ministry invited a team of scientists from the Institute of Agricultural Research (IAR), Ahmadu Bello University, Zaria. The result from their investigation indicated that the causes of the disease are fungal pathogens and the government has engaged more scientists and research institutes to narrow down the search to a particular family of pathogens."
The commissioner said that the effort of the state also led to the intervention from the Federal Government through the Ginger Blight Epidemic Task Force in the office of the Vice President. Some weeks ago, the National Agricultural Development Fund (NADF) launched a N1.6 billion Recovery Package in Kaduna," he added.
Furthermore, Mr Dabo said, the government through extension officers was educating the affected farmers to adopt crop rotation to heal and protect the soil while a plan was ongoing to establish a Quality Control and Disease Surveillance unit at the Ministry to work on "early warning of disease outbreak and ensuring that crop quality is maintained and improved."
For many of the farmers who just need improved seeds and chemicals, support from the government can not come too early as they are already in the new planting season.
This story is completed with the support of the Centre for Journalism Innovation and Development.
- Premium Times.
Nigeria: Convert Abandoned Shell Airstrip in Oloibiri to Air Force Base - Senate Tells Govt
The Senate has asked the Ministry of Aviation and the Nigeria Airforce to, as a matter of urgency, take over and convert the deserted and uncultivated waste land of the abandoned Shell Airstrip at Oloibiri Oil well one , to a modern Air Force base in Bayelsa State.
The Senate has also urged Shell Petroleum Development Company of Nigeria (SPDC) , the Nigerian National Petroleum Company (NNPCL), other oil companies and the Niger Delta Development Commission (NDDC) to contribute to the Air Force Project.
Resolutions of the Senate yesterday were sequel to a titled, "Urgent Need for Transformation of the Abandoned Shell Airstrip at Oloibiri Oil Well 1, Otuogidi in Ogbia Local Government Area of Bayelsa State to an Air Force Base."
It was sponsored by Senator Agadaga Benson Sunday, PDP Bayelsa East.
In his presentation, Senator Agadaga informed the Senate that the Shell Airstrip, constructed in 1958 following the first discovery of crude oil in 1956 and sitting on over 25 hectares of land situated at Itokopiri bush which is hosting the famous Oloibiri Oil well 1 in Otuogidi Community, has long been abandoned.
According to him, the Airstrip, while in effective operation, was a very valuable asset in the company's oil exploration and exploitation activities in airlifting of personnel and equipment for that period, adding that during the years of its functionality, heavy duty equipment, Company Workers, Captains of Industry, top Government functionaries and Diplomats resorted to this route for easy access to the Niger Delta region.
He lamented that since the gradual decline of Shell's operations in the area and final departure from Oloibiri oil field, the Airstrip and the land where it operated have been abandoned and left desolate even as the land itself appears to have been sentenced to perpetual condemnation as no agricultural activity which is the economic mainstay of the local dwellers can be carried out anymore due to the concretized topography of the soil.
The state of the abandoned Airstrip, according to him, poses environmental challenges and serious ecological complications to the Host Community as Shell has left the people in deprivation, squalor and lamentation after decades of operation.
Senator Agadaga said that "The Senate notes that the Shell Airstrip, constructed in 1958 following the first discovery of crude oil in 1956 and sitting on over 25 hectares of land situated at Itokopiri bush which is hosting the famous Oloibiri Oil well 1 in Otuogidi Community, has long been abandoned.
"Also notes that the Airstrip, while in effective operation, was a very valuable asset in the company's oil exploration and exploitation activities in airlifting of personnel and equipment for that period;
"Observes that during the years of its functionality, heavy duty equipment, Company Workers, Captains of Industry, top Government functionaries and Diplomats resorted to this route for easy access to the Niger Delta region;
"Regrets that since the gradual decline of Shell's operations in the area and final departure from Oloibiri oil field, the Airstrip and the land where it operated have been abandoned and left desolate.
"The land itself appears to have been sentenced to perpetual condemnation as no agricultural activity which is the economic mainstay of the local dwellers can be carried out anymore due to the concretized topography of the soil;
"Worried that this experience poses environmental challenges and serious ecological complications to the Host Community as Shell has left the people in deprivation, squalor and lamentation after decades of operation;
"Believes that upgrading the abandoned Airstrip to an Air Force Base will bring renewed hope to the people, restore life to the area and attract the following benefits to the country:
"Strengthen the security architecture of Nigeria as the creeks of Bayelsa up to Brass Island and the coast of the Atlantic Ocean in the gulf of guinea where the oil export terminal is located will be easily monitored and protected;
"Reduce the rate of oil theft and pipeline vandalism as it will enhance surveillance activities in the numerous oil producing and impacted communities of the area which constitute the hub of oil industry activities in Nigeria; and
"Attract more business opportunities in the area thereby creating additional jobs to boost the economic growth of our nation and ease the cost of living of the people."
Virtually all Senators who contributed to the debate on the motion supported it.
- Vanguard.
Malawi: IMF Staff Completes Mission to Malawi
An IMF staff team led by Ms. Mika Saito visited Lilongwe from May 12 to 23, 2024 to conduct discussions on the First Review of the ECF-supported program. The program was approved by the IMF Executive Board on November 15, 2023.
At the end of the mission, Ms. Mika Saito issued the following statement:
"The Malawian authorities and the IMF team made substantial progress in discussions on the policies and reforms needed for the completion of the first review of the ECF-supported program. We reached a common understanding on efforts needed to return to a sustainable fiscal adjustment path, rebuild external buffers, and restore debt sustainability. We also have a clear roadmap towards the completion of the review.
"Weather-related shocks continue to impact the Malawian economy, exacerbating food insecurity. The economic outlook for 2024 remains positive but economic growth is now projected at 2 percent reflecting the impact of El Nino on agricultural production and spillovers to the rest of the economy. A successful winter crop would cushion the impact of drought on the agriculture sector.
"The IMF team acknowledged the authorities' firm commitment to successfully complete the first review of the ECF-supported program. Fiscal discipline remains critical in the face of elevated spending pressures. Rebuilding international reserve buffers and normalizing the foreign exchange market are critically important to facilitate the return of trade credit and reduce vulnerability to external shocks. Addressing weakness in governance and institutions remain important. Successful external debt restructuring is vital for macroeconomic stability.
"Discussions will continue in the coming weeks toward completion of the First ECF Review. The team would like to thank the Malawian authorities and other counterparts for their cooperation, warm hospitality, and constructive discussions."- IMF.
Malawi: Road Contractors to Hold Vigil At Roads Fund Administration Over Delayed Mk14bn Payment
Members of the Malawi Allied Building Contractors Association (Mabcata)--who were supposed to demonstrate Thursday against the Roads Fund Administration (RFA) for delaying to pay them K14 billion dating back to January this year--shifted the demonstrations to allow RFA to honour the contractors seven-day ultimatum.
But one of the leaders of the contractors, Charles Chilunda, has vowed that they will hold a vigil at RFA offices in Lilongwe, if the state-owned agency fails to pay them after seven days.
The contractors, 50 in total, had submitted a petition to RFA on Tuesday, in which they have outlined a plethora of their grievances and issued the ultimatum, which expires Thursday next week.
However, the contractors were still determined to demonstrate Thursday this week.
The contractors petition to RFA reads in part: "Since January 2024, 155 days have elapsed without any pay to us the contractors, which is very unfortunate, especially in view of the current inflation and loss of value of the Malawi kwacha.
"You should be reminded that this is our livelihood and we are failing to support ourselves and our families."
The shifting of the demonstrations follow a resolution of Wednesday's stakeholders meeting allowing the contractors to continue engaging RFA and other concerned parties in order to exhaust the procedure of contact and dialogue, according to District Commissioner for Lilongwe, Lawford Palani.
Chilunda, who is also Managing Director of Prichala Civil Engineering, added that it was improper for them to still demonstrate when they have already given RFA an ultimatum within which it should address their concerns.
"So, if they do not pay us by Thursday next week, we will then go back to the streets after that and later hold an indefinite vigil at RFA offices in Lilongwe.
"We need our money. We want sanity and justice in the industry," Chilunda said.
RFA public relations manager, Masauko Mngwaluko, is on record telling the media that the payment delays are "due to the late remittance of road maintenance levies that Malawi Energy Regulatory Authority (Mera) collects from fuel pump prices".
- Nyasa Times.
Nigeria: Turkish Airlines to Resume Airlifting of Stranded Nigerian Passengers, As NCAA Wades in
The Nigeria Civil Aviation Authority (NCAA) has brokered peace between the National Union of Air Transport Employees NUATE and Turkish Airlines that would allow the airline to begin the airlift of Nigeria passengers who have been stranded at the International wing of the Murtala Muhammed Airport in Lagos since Tuesday following the picketing of the airline by the union.
This is coming as the European carrier alleged that it sacked its seven staff, which incurred the wrath of the union, because they were engaged in fraudulent ticket racketeering to the tune of $600,000.
With the NCAA intervention, NUATE has temporarily agreed to shelve further interruption of Turkish Airlines operations in Lagos and Abuja to allow the airlift of stranded passengers both inbound and outbound from across the world.
The agreement was reached after a meeting with the representative of the acting Director General Civil Aviation, Mr. Michael Achimugu who is also the Director, Public Affairs and Consumer Protection, NCAA.
Achimugu had on Wednesday evening after meeting with the Country Manager of Turkish Airlines in Nigeria promised to meet with the union on Thursday to resolve the impasse.
The meeting had representatives of NUATE led by its General Secretary, Comrade Ochema Aba, the Lagos Regional Manager NCAA, Mrs Bukola Teriba among others.
Meanwhile, Turkish Airlines has accused its sacked seven Nigerian staff of engaging in various ticket racketeering to the tune of $600,000 in 2023, thereby causing it serious financial losses within the period.
The airline in a statement by its Media Relations Department, also alleged that the leadership of the National Union of Air Transport Employees might be taking sides with the sacked workers, who after disciplinary process, were found wanting of corrupt practices against the airline.
The airline regretted that despite the involvement of the union in the disciplinary committee, which indicted the seven workers and led to the advice for them to resign from its establishment, the unions refused to sign off on disciplinary action to the erring members of staff.
According to the airline, NUATE was invited and acted as a member of the disciplinary committee against the erring employees, where it was established, after the presentation of evidence detailing the employees' wrongdoings, that they were liable for gross misconduct and ought to be dismissed.
The statement hinted that after the conclusion of the disciplinary proceedings, the airline gave the employees the option to resign voluntarily in which three out of the seven indicted staff complied with.
It, however, said that four out of the seven staff who were indicted and had initially showed interest in resigning from the employment of the airline, later declined to do so.
According to the airline, the union despite the clear and evidence of wrongdoing against it by the sacked staff, still threatened to paralyse its operations in Nigeria by way of industrial action if the former employees were not reinstated.
Turkish Airlines expressed surprise that NUATE despite the many evidences against the erring staff, still expected it to ignore these "illegal behaviours and actions," saying that these were contrary to its transparency and management principles.
The airline added: "Premised on the threat of industrial action issued by NUATE by notices dated February 28, 2024 and March 25, 2024, the airline instituted proceedings in Suit No.: NICN/LA/24/2024 - Turkish Airlines Incorporated v The registered Trustees of the National Union of Air Transport Employees (NUATE), seeking to determine the legality of the union's (threatened) actions, among other things.
"After the institution of this suit at the National Industrial Court of Nigeria (NICN) and after service had been effected on the union on February 9, 2024 and while motions for injunction were pending before the court, NUATE proceeded to execute their threats to picket."
According to the airline, on March 26, 2024, NUATE members for two hours, barricaded its check-in stations at the Murtala Muhammed International Airport (MMIA), thereby preventing its passengers from boarding to their various destinations.
The airline explained that it took the intervention of the airport authorities to prevent NUATE from causing a complete breakdown of law and order at the airport on the said day.
Besides, the airline emphasised that the action of the union prompted NICN to once again issue formal notices of injunction restraining NUATE and its affiliates from conducting any industrial action in such a way as to disrupt its business on April 30, 2024.
Turkish Airlines reiterated that since it commenced flight services to Lagos in 2006, it had continued to put the interest of its passengers and employees first.
It insisted that it had always encouraged its employees to participate in any union of their choose, while also seeking harmonious working relationship with all governmental and non-governmental bodies in the country.
Turkish Airlines declared that it had no tolerance for illegal and wrongful actions and emphasised that it would take similar action against such practices in the future no matter who was involved.
The airline must have recorded huge losses due to the interruption by NUATE, while hundreds of Nigerians, including children, billed to travel with the airline were left stranded, hungry and with nowhere to lay their head for over 48 hours.
- This Day.
Musk opposes US tariffs on Chinese electric cars
Tesla boss Elon Musk says he opposes US tariffs on Chinese electric vehicles (EVs), just days after President Joe Biden quadrupled levies on EVs imported from China.
"Neither Tesla nor I asked for these tariffs", the multi-billionaire told a technology conference in Paris via video link.
Mr Musk's comments are at odds with a warning he made in January that Chinese car makers would "demolish" competitors from other countries if there were no trade barriers.
Last week, the White House said new measures, including a 100% tariff on EVs from China, were a response to unfair policies and intended to protect US jobs.
"In fact, I was surprised when they were announced. Things that inhibit freedom of exchange or distort the market are not good," Mr Musk said on Thursday.
“Tesla competes quite well in the market in China with no tariffs and no deferential support. I’m in favour of no tariffs," he added.
Mr Biden has maintained a number of tariffs on China that were introduced by his predecessor Donald Trump, while increasing trade pressure on Beijing.
Last week, Mr Biden vowed to not let China "unfairly control the market" for electric vehicles and other key goods, including batteries, computer chips and basic medical supplies.
China said it was opposed to the tariff hikes and would take retaliatory measures.
This week, China launched an anti-dumping probe into imports of a widely used plastic from the US, EU, Taiwan and Japan.
The announcement from the Ministry of Commerce that it will investigate imports of polyoxymethylene copolymer - which is used in electronics and cars - was seen as a signal that China will hit back in its trade disputes with the US and Europe.
Also this week, China signalled it could hit cars with large engines imported from the EU and US with tariffs of as much as 25%.
The China Chamber of Commerce to the EU said it had been told about the potential move by what it called "insiders".
The European Commission (EC), which oversees the EU's trade policies, has given itself a 4 July deadline to decide whether to impose measures against imports of Chinese-made EVs.-BBC
Google to make Pixel phones and drones in India
Tech giant Google will soon begin making its Pixel smartphones in India, sources aware of the development have told the BBC.
Google is set to manufacture the phones at an existing Foxconn facility in the southern state of Tamil Nadu.
The firm is also set to independently manufacture drones in the state.
India has emerged as a key destination for global firms looking to diversify supply lines outside China in the midst of geopolitical tensions with the West.
Last year, Google had announced plans to make Pixel smartphones in India, beginning with the Pixel 8.
"India is a priority market for Pixel smartphones, and we’re committed to bringing the best of our hardware and underlying built-in software capabilities to people across the country," it said in a blog post.
On Friday, sources told the BBC that Alphabet's Google would make advanced versions of Pixel smartphones at the Tamil Nadu facility and that manufacturing would begin within this calendar year.
Google and Foxconn have signed a contract to this end, the source said.
Foxconn currently has two facilities in Tamil Nadu. At one of its facilities near Chennai city, it assembles Apple's iPhones.
Google's decision to make Pixel phones in Tamil Nadu came after state officials met company executives recently.
According to a statement from the Tamil Nadu government, officials from Google are also set to meet state Chief Minister MK Stalin in Chennai soon.-BBC
Why technology has not transformed building
If you took a worker from a 1920s construction site and transported them to a present day project, they would not be that surprised by what they saw, according to Sam O’Gorman.
"Overall, across Europe and the US, stuff is still built in a pretty manual fashion - not very different to the way it would have been built 100 years ago," says Mr Gorman, an associate partner in the property practice of consultancy firm McKinsey.
Back in 2017, the McKinsey Global Institute concluded that the construction industry could improve productivity by 50 to 60% and boost the industry's global value by $1.6tn (£1.3tn) a year.
Since then, McKinsey says, improved production processes and the use of new software and apps have improved efficiency, but not to the extent that one might have hoped.
"Construction is a bit of a digital laggard compared with many other industries. It's been slow to adopt digital in the widest sense," says Mr O'Gorman.
In recent years, several technologies have been touted as having the potential to transform the industry. One of those is 3D printing, which involves extruding concrete or other materials to build up the walls of a house.
The University of Maine has been working on one such project, developing the world's biggest 3D printer.
Using a mix of wood fibers and plant-based resin, the printer formed a 600 sq ft (180 sq m) house.
"The first prototype home, BioHome3D, has performed very well through two Maine winters, and we are turning our attention now to printing a neighbourhood consisting of nine of these homes," says Dr Habib Dagher, executive director of the University of Maine's Advanced Structures and Composites Center.
However, 3D printing of homes remains more of a demonstration project, rather than a practical proposition. 3D printed homes tend to be expensive, to have extremely thick walls, and are hard to construct on anything other than an open, flat site.
While there have been a number of much-vaunted 3D-printed construction projects, the number of houses actually built this way remains tiny.
University of Maine BioHome3D was printed using sustainable materials in a University of Maine projectUniversity of Maine
BioHome3D was printed using sustainable materials in a University of Maine project
Mr O'Gorman and Dr Dagher say that another technique, modular construction, could make building more efficient.
It involves manufacturing parts of the building in a factory, transporting them to the site and lifting them into place.
"I'm convinced that it is the future, the quality of construction is so much better. On a construction site you get so many little errors," Dr Dagher says.
"The more you can do in a factory, the better. Quality control is clearly so much superior, and the quality of the finish as well."
However, this technology, too, has failed to take off, says Neil Jefferson, managing director of the UK Home Builders Federation.
"The problem with manufacturing housing is that you book your stuff in the factory to build those homes, and the materials arrive and you need to stick to the plan," he says.
"But at the moment in this country, because of the government's approach to planning policy, projects are beset with delays. And that just doesn't work, you need a more flexible approach."
Developers need a certain amount of confidence that they'll be able to sell their houses quickly once complete, and often need to alter plans as a project continues as the market changes. This is less of an issue with projects for local authorities or housing associations, but can be a problem for private developers.
AUAR Mollie Claypool, co-founder and CEO, AUARAUAR
Mollie Claypool's start-up AUAR promises cheaper and faster home building
One company aiming to sidestep some of these problems is Bristol-based Automated Architecture, or AUAR, which is planning to license micro-factories to build timber houses using robots.
These micro-factories will create buildings of up to six storeys that are assembled from standard parts, either at the factory itself or on site.
The idea is that larger construction firms can license a microfactory with an upfront cost of around £250,000 and an ongoing monthly fee.
"AUAR’s partners don’t need to invest millions in setting up large factories, as modular housing companies do, but can immediately offer innovative, high quality, low-energy homes at market rates to their customers," says Mollie Claypool, co-founder and chief executive.
The automation, she says, creates higher margins for developers, along with faster build times and a reduction in risk and waste. Labour costs per project, she says, can be between 20% and 60% lower than when traditional construction methods are used.
The company already has four customers lined up, she says, and is aiming to boost that number to 140 by 2030, building more than 30,000 energy-efficient homes per year.-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
Website: <http://www.bullszimbabwe.com> www.bullszimbabwe.com
Blog: <http://www.bullszimbabwe.com/blog> www.bullszimbabwe.com/blog
Twitter (X): @bullsbears2010
LinkedIn: Bulls n Bears Zimbabwe
Facebook: <http://www.facebook.com/BullsBearsZimbabwe> www.facebook.com/BullsBearsZimbabwe
INVESTORS DIARY 2024
Company
Event
Venue
Date & Time
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
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 121857 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65578 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 36709 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240524/8ccc44b1/attachment-0003.jpg>
More information about the Bulls
mailing list