Major International Business Headlines Brief::: 05 September 2024

[Bulls n Bears]

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Major International Business Headlines Brief:::  05 September 2024 

 


 


 


 <mailto:info at bulls.co.zw> 

 


 

 


 

ü  Nigeria: Petrol Price Hike - PDP, Labour Unions, Afenifere, CSOs Fume,
Lambast Govt

ü  Nigerian Communities, Compromised Officials Enable Illegal Lithium Mining

ü  Kenya: KQ Grounds 2 Dreamliner for a Checks Maintenance, Disrupting
Flights

ü  African Airlines Record Weakest Air Cargo Growth in 2024

ü  Nigeria, Now 3rd Largest Debtor in World Bank's Scheme

ü  Nigeria: Food Inflation - Lagos to Trace Distribution, Prices of Food
Items to Stem Exploitation

ü  Uganda: Government Banks On Digital Stamps to Boost Domestic Revenue

ü  Nigeria: Minimum Wage - Betray Workers, Face Consequences, NLC Warns
State Councils

ü  Africa Needs Strategic, Disciplined Approach With China, Experts Say

ü  African Leaders Snub Indonesian Summit in Favor of China Visits

ü  Kenya: SRC Chair Mengich Raises Concerns Over Kenya's Bloated Wage Bill

ü  Kenya: Fading Protests Boost Kenya's Private Sector Activity in August

ü  Africa: Focac Offers a New Dawn for Africa-China Ties

ü  Volvo gives up plan to sell only EVs by 2030

ü  Fast fashion drove Bangladesh - now its troubled economy needs more

 


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Nigeria: Petrol Price Hike - PDP, Labour Unions, Afenifere, CSOs Fume,
Lambast Govt

Peoples Democratic Party (PDP), pan-Yoruba socio-cultural and political
organisation, Afenifere, Nigeria Labour Congress (NLC), Trade Union Congress
(TUC), and some civil society organisations (CSOs), yesterday, expressed
outrage at the recent hike in petrol prices, lamenting that the federal
government is inflicting further hardship on Nigerians.

 

PDP rejected what it described as the punishing increase in the pump price
of premium motor spirit (PMS) to over N1,000 per litre in various parts of
the country. The leading opposition party stressed that it was a brutal
assault on the sensibility and well-being of Nigerians "by the insensitive
and arrogant All Progressives Congress (APC) administration".

 

 

Afenifere called on the federal government to immediately order the Nigerian
National Petroleum Company Limited (NNPCL) to reverse the price increase.

 

NLC maintained, in a statement yesterday, that the federal government had
undertaken, during the N70,000 minimum wage deal with organised labour, not
to approve further hike in the price of petrol. It called the recent price
hike a betrayal by the government.

 

But the presidency denied making any undertaking not to increase fuel
prices.

 

Similarly, TUC asked the federal government to rescind the decision on the
recent increases in the pump price of petrol and electricity tariff.

 

ActionAid Nigeria and the Network Against Corruption and Trafficking (NACAT)
condemned the latest hike in pump price of PMS, and demanded immediate
action from the government on economic reform.

 

 

Lagos Chamber of Commerce and Industry (LCCI); Nigerian Association of
Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); the
organised private sector (OPS); and Nigerian Gas Association (NGA) all
frowned on the increment.

 

PDP, in a statement by its National Publicity Secretary, Debo Ologunagba,
said, "The thoughtless increase in fuel price, especially at this time, is a
huge recipe for crisis, as Nigerians cannot bear its worsening effect on the
suffocating economic hardship, which they currently face under the President
Bola Ahmed Tinubu-led APC administration.

 

"The secretive and corrupt administration of the petroleum sector and
persistent increase in fuel price under the Tinubu-administration, without
due regard to the wellbeing of the people, is akin to pushing Nigerians to
the wall and daring them to do their worse."

 

Ologunagba argued that the APC administration had consistently shown itself
"to be anti-people, unconcerned and deaf to the agonies of millions of
Nigerians who can no longer afford their daily meals, medications and basic
support for families due to the catastrophic high cost of living occasioned
by the insensitive and reckless policies of the Tinubu administration".

 

 

According to the PDP spokesman, "Today, under the Tinubu-led APC
administration, over 150 million Nigerians have sunk below poverty line,
businesses are collapsing daily, as the naira now exchanges for over N1,600
to a dollar, with over 34 per cent inflation rate and over 40 per cent
unemployment rate, which are expected to rise further with the latest
draconian increase in the price of fuel.

 

"There is practically no hope in sight under the current APC government
policies, as major multi-national companies continue to exit our country in
droves in the face of ill-conceived and ill-implemented macro-economic
policies.

 

"The admission by the APC-led federal government that it has handed the fate
of Nigerians to oil racketeers in the name of a free market economy further
validates the position of the PDP that the Tinubu-led administration has
abdicated the primary purpose of government; which is to provide for the
welfare and security of the citizens."

 

Ologunagba addd, "President Tinubu is the Minister of Petroleum Resources
and cannot exonerate his government and officials from the secretive and
fraudulent management of the petroleum sector, which is fast pushing our
nation's economy to the precipice."

 

The PDP spokesman stated, "it is inexplicable that the APC administration
continues to increase fuel price despite the scandalous revelation in the
public domain that it is secretly paying a whopping N5.4 trillion as fuel
subsidy for 2024.

 

"The APC government has now become an enabler of a cabal of corrupt APC
rent-seekers who derive pleasure in inflicting pains on Nigerians while
hugely benefiting from the proceeds of incessant increase in fuel price to
satisfy and fund their luxury appetite and consumption.

 

"With the hopeless state of affairs of our nation today, our party wonders
what President Tinubu, during his numerous trips abroad, says to his foreign
counterparts in nations where leaders prioritise the welfare of their
people!

 

"Nigerians will recall that the PDP had on several occasions offered
constructive advice and suggestions on the management of the economy, which
the APC government in its arrogance in failure ignored.

 

"Our party restates that with a deft, transparent and innovative management
of resources, economic potentials, comparative advantage and national
refining capacity, petrol should not sell more than N250 per litre in
Nigeria."

 

PDP called on Tinubu to save the country from further socio-economic
dislocation by immediately reversing the latest increase in fuel price and
revisit all life-discounting and suffocating policies of the APC government.

 

 

NLC, in a statement signed by its Head of Information and Public Affairs,
Benson Upah, said, "Our attention has been drawn to the denial credited to
the Senior Special Assistant to Mr. President on the Print Media, Mr.
Abdulaziz Abdulaziz.

 

"In the said statement, Abdulaziz was quoted as saying: 'I sat through the
two meetings President Bola Ahmed Tinubu had with labour leaders on minimum
wage. At neither of the meetings was an offer made in exchange for the fuel
price hike. Ajaero is once again playing his dirty politics with the
emotions of Nigerians."'

 

NLC said it found the denial of Abdulaziz amusing, describing him as someone
"suffering from selective amnesia or attention span deficit".

 

NLC stated, "Whatever the matter is with Abdulaziz, we stand by our
statement. And if Abdulaziz was at those meetings, as he claimed, he should
be courageous enough to let the world know whether the president gave the
labour leaders one hour to meet and resolve to either accept and allow an
increase or accept N62,000."

 

It said labour leaders decided to meet outside the villa and to report in a
week, but when they came back, they were blunt and rejected the offer.

 

Equally, TUC asked the federal government to rescind the decision on the
recent increases in the pump price of petrol and electricity tariff.

 

It asked the federal government to reverse the decision and take steps to
rebuild confidence among the citizens.

 

In a statement signed by its President, Festus Osifo, the union stressed
that the sudden price hike represented "a blatant disregard for the welfare
of the Nigerian people, particularly the working class who bear the brunt of
such decisions.

 

"The sudden hike in fuel and electricity costs will only exacerbate these
challenges, leading to further hardship and potential social unrest.

 

"We urge the government to immediately rescind these decisions, promote
policies that will strengthen the naira, and take decisive steps to
alleviate the suffering of Nigerians."

 

TUC stated that it received the news of the petrol price hike with great
contestation and grave concern. It added that the burden of the price
increase was huge and would affect all facets of the citizen's
social-economic life.

 

"In addition, we are deeply troubled by the further hike in electricity
tariffs to 250 per cent, a service that is essential for the survival of the
poorest in our society," it stated.

 

The union said the timing and magnitude of the increases, in the absence of
any meaningful social security measures, demonstrated a lack of empathy and
understanding of the challenges faced by ordinary Nigerians.

 

Afenifere Calls for Immediate Reversal

 

Afenifere called on the federal government to immediately order NNPCL to
reverse the increase in petrol pump price.

 

Afenifere, in a statement signed by its spokesman, Jare Ajayi, asserted that
Nigerians were currently going through a lot of challenges as a result of
the biting socio-economic crunch and the attendant hardships.

 

It said, ironically, the announcement of its debt to foreign suppliers came
not long after the national oil company announced that it made N3.3 trillion
net profit in its 2023 Audited Financial Statement.

 

Afenifere said with the latest increase in the price of fuel, the cost of
fuel in Nigeria had risen by 460 per cent in 15 months.

 

Afenifere wondered why a firm that declared profit running into trillions of
naira could, almost in the same breath, claim that it was indebted to the
tune of nearly $7 billion.

 

"Why not pay off the debt from the available fund before declaring it as
profit?" it queried.

 

Afenifere said, "It is, therefore, a wrong time to come up with any policy
that will increase the undesirable challenges Nigerians are going through
presently.

 

"Failure by the NNPCL to reverse the latest increment in fuel price will rub
off negatively on some policies of Tinubu administration to ease things for
the citizens. Policies, such as the Students Loan Scheme and Consumer Credit
Scheme that are just taking off."

 

The statement said the oil company seemed to be making Nigerians pay for its
inefficiency.

 

According to Afenifere, "It is common knowledge that the cost and
availability of energy, such as petrol, gas, electricity, diesel and
kerosene are major factors, not only in production and services ,but also on
the quality of well-being that Nigerians can enjoy.

 

"Hikes in prices of these energy sources have astronomically increased the
costs of services and commodities, reduced the disposal incomes of average
Nigerians, and heightened their health risk.

 

"The combination of all these are making a daily living an onerous task for
the majority of the citizens. Because millions of the Nigerians had been
described as being 'multi-dimensionally poor', the recent hike in costs of
fuel and electricity are uploading the number of people in that category
phenomenally."

 

ActionAid Nigeria condemned the hike in pump price of petroleum products,
demanding immediate action from the government on economic reform

 

The non-governmental organisation said increasing the minimum wage from
N30,000 to N70,000 would never bring succour from economic hardship to
Nigerians as it only amounted to treating eczema instead of leprosy.

 

 

ActionAid, in a statement yesterday, signed by its Country Director, Andrew
Mamedu, said, "The federal government must prioritise the welfare of
Nigerian citizens over revenue generation and provide a comprehensive plan
to protect vulnerable citizens and support small businesses within 48 hours.
This plan must include measures to mitigate the impact of high fuel prices
on the poor and vulnerable."

 

Mamedu lamented, "Since President Bola Ahmed Tinubu assumed office in May
2023, the removal of fuel subsidies has led to a harsh economic reality for
many Nigerians. Despite efforts to recover, the federal government's
decision to allow fuel prices to surge again has worsened the situation,
leading to a ripple effect on the economy.

 

"In May 2023, just before President Tinubu's inauguration, petrol prices
were already high at N185 per litre, causing widespread discontent among
Nigerians due to the accompanying high cost of goods. However, on his first
day in office, fuel prices skyrocketed to N500 per litre, leading to a sharp
surge in the prices of essential commodities.

 

"Since then, fuel prices have continued to rise steadily. By August 2023, it
reached N626.70 and continued to fluctuate, surmounting N668.3 in January
2024 and N770.54 in July 2024. As of September 2024, it has increased again
to a staggering N897 per litre, which greatly worsens the situation for many
Nigerians."

 

Mamedu stated further, "ActionAid Nigeria strongly condemns this
development, which will push millions of Nigerians deeper into poverty. We
demand transparency in fuel pricing, including a clear breakdown of costs
and revenues associated with fuel imports, refining, and distribution.

 

"The federal government must provide a detailed explanation of the fuel
pricing mechanism to ensure accountability and trust.

 

"Concurrently, the federal government must implement a comprehensive
economic reform plan as soon as possible, including measures to diversify
the economy, increase foreign exchange earnings, and stabilise the naira."

 

NACAT also condemned what it termed the insensitivity of government to the
suffering of the masses, describing its policies as a thorn in the flesh of
Nigerians.

 

It said the decision to hike fuel price, with the economy already in a
parlous state, was "a betrayal of trust".

 

A statement by the civil society organisation said the hike in pump price of
petrol was a breach of the agreement reached with labour.

 

It stated, "It is with rude shock that we received the recent surreptitious,
abrupt and unconscionable hike in the price of petrol.

 

"As an organisation that promotes good governance, transparency, rule of
law, and sustenance of the security and wellbeing of Nigerians in the
project of nation building, we see this latest increase, coming on the heels
of the relentless economic torment inflicted on Nigerians by the current
administration, as nothing short of a betrayal of the public trust.

 

"It is an egregious affront to the collective well-being of the Nigerian
people, who have already been subjected to untold hardship by a series of
failed policies.

 

"The government's cavalier attitude towards the suffering of the masses is
deeply troubling and unacceptable.

 

"We are appalled by revelations from the Nigeria Labour Congress (NLC) that
this hike in fuel prices directly contradicts the understanding reached with
the government regarding the N70,000 minimum wage."

 

The statement signed by Director, Operations, Stanley Ugagbe, said NLC made
it clear that the decision to accept the N70,000 minimum wage was predicated
on the promise that PMS prices would remain stable.

 

NACAT said, "As a leading anti-corruption and trafficking body, we state
clearly that corruption thrives where poverty prevails. We know very well
that with the increment of fuel, everything in the country will immediately
skyrocket in prices and this will give room to civil servants as well as
public office holders to steal more to cover up the cost of things.

 

"This government has seemingly forgotten that it was a culmination of such
bad policies and the resulting hardship that fuelled the recent nationwide
#EndBadGovernance protests.

 

"Under the APC government, Nigerians have been subjected to an endless cycle
of troubles and afflictions. The biblical analogy is not lost on us--this is
akin to King Rehoboam's infamous declaration that he would scourge the
Israelites with scorpions, a decision that ultimately led to the division of
the kingdom. In a similar vein, this government's continued oppressive
policies threaten to divide and devastate the very fabric of our nation."

 

LCCI: Removal of Petrol Subsidy Presents Significant Challenges to Nigerians
and Businesses

 

LCCI stated that the removal of petrol subsidy in a manner that caused a
sharp hike in the pump price would present significant challenges to
Nigerians and businesses.

 

Director General of LCCI, Dr. Chinyere Almona, in a statement, however,
maintained that the current petrol subsidy was unsustainable and the burden
of the shortfall had accumulated to a debt of N10 trillion.

 

Almona stressed, "Completely removing it and subjecting Nigerians to a
significant fuel price hike presents significant challenges.

 

"A steep price hike would likely trigger widespread price increases,
potentially reversing the recent easing in inflation seen in July and
leading to another surge in inflation rates. Balancing the need for fiscal
responsibility with the economic impact on citizens is a complex task for
the government."

 

 

LCCI added that the impact of the latest hike in petrol price on businesses
"will be severe, with fuel prices affecting supply and logistics, power
generation, transportation, and factory operations.

 

"The cost of doing business will skyrocket, prices of goods will rise, and
some firms may shut down due to low demand in the face of weakening consumer
purchasing power. Of course, this will be followed by job losses."

 

The chamber stated that even though the "situation is critical, when
considered against the background of NNPC, which owes suppliers about $6
billion, the operation of the Dangote Refinery, which now produces fuel and
diesel for sale, offers a glimmer of hope.

 

"This game-changing intervention could restore some stability to the oil and
gas sector, which has been grappling with significant distortions this
year."

 

It advocated, "Supporting the development of additional local refineries to
process our crude for local consumption and potential export across Africa
is the way forward.

 

"This long-term strategy is crucial for the stability and growth of our
economy.

 

"As an immediate intervention, it would be beneficial for the Port Harcourt
Refinery to commence operations alongside production from the Dangote
Refinery.

 

"Given the current challenges with importing refined fuel, relying on local
production may be the most viable option at this time.

 

"We recommend sustaining local supplies, with the expectation that demand
will eventually align with supply, leading to equilibrium pricing across
various sources."

 

NACCIMA Expresses Concern

 

NACCIMA, in a statement by its National President, Dele Oye, called on the
federal government to engage in constructive dialogue with relevant
stakeholders, including the organised private sector and labour unions, to
address the concerns raised about the price increase and its potential
effect on the economy.

 

The statement said, "NACCIMA expresses concerns over the recent increase in
the pump price of petrol to over N800 per litre at NNPC filling stations
across the country.

 

"While we understand the complex factors that can influence fuel prices,
such as global oil market dynamics and exchange rate fluctuations, we are
troubled by the lack of prior notice and clear explanations provided by the
government and the NNPC regarding this development.

 

"The timing of this price hike is particularly concerning, as it has the
potential to further exacerbate the impact on businesses and consumers,
especially the vulnerable segments of the population and those on fixed
incomes, who are still adjusting to the recent increase in the national
minimum wage."

 

Oye stated, "We are particularly interested in understanding the reported
conditions that may have been agreed upon during the minimum wage
negotiations, and how the current development aligns with those
understandings. Maintaining trust and credibility in the government's
economic policies is crucial for fostering a conducive business environment
and promoting inclusive growth.

 

"Furthermore, we urge the authorities to provide clarity on the NNPC's
financial reporting, which has seen conflicting statements about the
company's profitability and financial obligations. Transparency and
accountability within the state-owned oil company are essential for building
public confidence."

 

He added, "NACCIMA remains committed to working collaboratively with the
government and other stakeholders to find sustainable solutions that balance
the needs of businesses, consumers, and the broader Nigerian economy. We
believe that open dialogue and a shared commitment to the nation's
prosperity are key to navigating these complex challenges."

 

Chairman, Energy Transition Group, Nigerian Gas Association, and CEO of
Cabtree, Olabode Sowunmi, yesterday, provided a detailed analysis of the
situation.

 

Speaking on "The Morning Show" on ARISE NEWS Channel, the broadcast arm of
THISDAY, Sowunmi emphasised that crude oil pricing, as a globally traded
commodity, had always been determined by a range of economic fundamentals.

 

"Crude oil is a commodity with uniform pricing globally, which means its
price will generally fall within a certain range around the world," Sowunmi
explained.

 

He stated that costs associated with refining were similarly standardised,
leading to relatively consistent petrol prices globally.

 

However, Sowunmi highlighted the effect of Nigeria's fluctuating currency on
petrol prices, pointing out that "the day the naira falls against the
dollar, the price of petrol changes accordingly".

 

He criticised the government's historical lack of political will to adjust
petrol prices in line with these fluctuations, which often led to the
implementation of subsidies.

 

Sowunmi also underscored the role of local refineries, particularly the
Dangote Refinery, in potentially stabilising prices.

 

He said, "The advantage of local refineries, like Dangote's, lies in their
ability to purchase crude oil in naira, avoiding the pressures of procuring
dollars."

 

That, in turn, obligated the refinery to price its products in naira, which
could offer some insulation from the volatility of international currency
markets, Sowunmi added.

 

Despite these potential benefits, Sowunmi expressed uncertainty about
whether the Dangote refinery's production would fully meet Nigeria's demand
for refined products.

 

He pointed out that until Dangote's operations were fully monitored,
particularly the tracking of every truck leaving the refinery, the actual
daily consumption of petroleum products in Nigeria would remain unclear.

 

Sowunmi also addressed the economic realities facing the Dangote refinery,
stating that it is a business that must remain profitable.

 

"Dangote is a business person with shareholders; he's not going to run the
refinery at a loss. They will price their products competitively and in a
way that ensures profitability," he said.

 

Furthermore, Sowunmi highlighted the issue of potential monopoly, citing the
Federal Consumer Protection Act, which defines any business with over 40 per
cent market share as a monopoly. He suggested that while monopolies were
typically frowned upon in free markets due to historical reasons, the
situation with Dangote could require careful regulation to prevent market
distortions.

 

This Day.

 

 

 

 

Nigerian Communities, Compromised Officials Enable Illegal Lithium Mining

Nigeria is emerging as an important source of lithium as the global shift
from fossil fuels to renewable energy technologies gains momentum.

 

Jyia Muhammed, the security chief at an illicit lithium mine tucked away in
a hard-to-reach Kwara community called Kakanfu, was relaxing under a shade
with his officials when the sound of a motorcycle attracted their attention.
Mr Muhammed approached the guest, sparking a tense exchange as he tried to
determine the person's identity.

 

After about 10 minutes of back-and-forth and scrutiny, Mr Muhammed accepted
the story of a PREMIUM TIMES journalist posing as a businessman from Lagos
looking to buy lithium, the critical mineral used in batteries for electric
vehicles, electronics, and power storage. Then, negotiations ensued to
purchase the mineral and secure a safe passage through the numerous security
checkpoints on the way to Lagos, where solid minerals stolen from illicit
mines like Kakanfu are taken.

 

 

"You don't even need to buy (already extracted lithium) from this place. I
have a family land that I can sell to you. It has enough lithium; we just
need to get some labourers to work," Mr Muhammed said, unwittingly providing
a window into how community landowners sell resource-rich plots to miners,
who shun statutory regulations.

 

Nigeria is emerging as an important source of lithium as the global shift
from fossil fuels to renewable energy technologies increases. However, due
to weak regulatory enforcement, neglect, and corruption, proceeds from
Nigeria's mineral wealth often end up in the pockets of artisanal miners
enabled by local communities and compromised officials. The federal
government recently started cracking down on illegal mining, but that work
continues, with the country losing $9 billion annually, according to a
parliamentary probe this year.

 

 

Over several weeks and visits, PREMIUM TIMES investigated how communities
around Kakafu in central Nigeria facilitate illegal mining through various
community development levies.

 

The Kakafu mine is about 10 kilometres from Lade town in Pategi Local
Government Area. Proceeds from the mine have helped build a massive camp,
which serves as both a residential and an economic hub - a makeshift city in
the jungle.

 

"Two years ago, there were over 100 sex workers from different parts of
Nigeria living in this camp," Hassan Yako, a former labourer at the mine,
said as we drove through the camp, the houses built with raffia leaves and
bamboo trees.

 

The roadside to the mine presents a curious sight - rows of hundreds of
white sacks brimming with lithium rock. The bags, now battered by the
elements, have been there for quite some time, much like the abandoned homes
in the nearby camp.

 

 

Negotiation to Buy Lithium

 

Illicit mining activity goes on with impunity in Kakanfu and its surrounding
areas. Formal government institutions are far removed, so cutting deals is
easy. Over the phone, PREMIUM TIMES contacted a Lade community member named
Abdul Abbas, who agreed to sell lithium and ensure safe passage from Lade to
Ogbomosho for a fee of N200,000.

 

After a brief phone discussion, Mr Abbas agreed to meet the reporter in
Pategi, 30 kilometres from Lade. At a mechanic workshop on the town's
outskirts, he agreed to sell a tonne of lithium for N85,000, depending on
quality, and facilitate transport from Kakafu to Lade for N120,000 per trip.
>From Lade, trailers could haul the lithium to Lagos.

 

Mr Abbas was precise in his promises. He offered a free pass between Lade
and Ogbomoso in Oyo State, leaving buyers to figure out the journey from
Ogbomoso to Lagos. When asked about the EFCC and other agencies arresting
vehicles carrying illicitly bought lithium, he reassured of safe passage.

 

"We have security covered from our place to Ogbomoso. With N200,000, you
will have a smooth passage," he said in Yoruba.

 

He added that the chairman of the community development association was
aware of the transaction and would provide the needed support.

 

To support his claims, Mr Abbas called the chairman, who sent a copy of a
receipt via WhatsApp and agreed to reduce the development and youth levies
from N500,000 to N350,000. Bribing police and other security operatives from
Lade to Ogbomoso would cost an additional N200,000, the chairman said, which
was corroborated by lorry drivers leaving the resource-rich communities.

 

The reduced levy reflects the declining demand for lithium in the community,
which has caused a slash in revenue. An ex-miner, speaking anonymously, said
the downturn had forced many to return to farming, which they had abandoned
for quick mining profits.

 

Mr Abbas was not the only one who could facilitate a deal. Mr Muhammed, the
security chief, also offered to sell a piece of his lithium-rich community
land. But unlike Mr Muhammed, Mr Abbas could immediately produce transaction
documents.

 

Mr Muhammed and his officials took PREMIUM TIMES around the Kakanfu mine,
pointing out recent excavations and explaining how the material is sold and
smuggled past security operatives.

 

Lithium stones were loaded into sacks and transported by buses instead of
trailers to evade detection.

 

 

"If you can get your truck into Kakafu, we will load the lithium here. We
can give you N60,000 per tonne. Then you will pay N100,000, which we'll
share with the traditional ruler, local government officials, and the
vigilante group at the camp entrance," he said.

 

Lade, about seven kilometres away, is the main gateway and has become a hub
for lithium trading. Former miners said outsiders are not allowed to buy
directly from the mine; they must purchase from a designated point called
the "table" in Lade.

 

Each trailer loading lithium pays a N500,000 levy to the Lade Development
Association.

 

However, demand for lithium in Lade has plummeted since December, mirroring
global trends. By February 2024, a tonne was selling for $20,782, down from
$81,360 in November 2022. Besides the worldwide downturn, the Nigerian
government's crackdown on illegal mining has also contributed to the
decline.

 

Loopholes in Security and Governance

 

The Kwara situation highlights the broader reality of Nigeria's solid
mineral sector, where communities work in cahoots with artisanal miners,
thereby denying the government revenues. This mirrors the resource control
debates in the oil-rich Niger Delta.

 

While the Nigerian Constitution says that all underground resources belong
to the federation, the solid mineral sector often operates outside this law.

 

In Zamfara State, for instance, illegal gold mining is rampant, with minimal
contributions to the federation account. The sector remains unstructured,
with experts linking illegal mining to terror financing. Nigeria's Minister
of Solid Minerals, Dele Alake, has accused politically exposed persons of
involvement in illegal mining but has not named or arrested anyone.

 

The military has also pointed fingers at traditional rulers as key players
in the illegal trade. However, field observations suggest that the problem
extends to security agencies. PREMIUM TIMES counted over ten security
checkpoints between Ilorin and Lade, which is about 163km, manned by police,
the Nigerian Army, vigilantes, and youth groups who extort money from
motorists.

 

The federal government has made several efforts to formalise artisanal
mining through a cooperative society model and even set a registration
deadline. However, the weak governance structure has made this difficult.

 

In July, the minister announced the government's plans to start collecting
taxes and royalties from registered artisanal miners to increase revenue.
He, however, admitted that some companies are entering mining sites to
"illegally mine."

 

Mine marshals from the Nigeria Security and Civil Defence Corps, tasked with
policing major mines, can also be compromised. Mr Abbas and his associates
in Lade were confident they could bribe their way through this security
setup. In subsequent phone negotiations, the chairman of the Lade
Development Association said he would travel to Ilorin to negotiate with the
EFCC for smooth passage and secure approval from key community leaders.

 

"We are working with the sub-nationals to address the problem in this
sector," said Segun Tomori, an aide to the solid minerals minister, in an
interview. He noted that the Mining Act of 2007 is being amended to create a
proper structure for host communities, aiming to reduce illegal mining
incentives.

 

Some states have banned traditional rulers from issuing mining consent
letters due to concerns over collusion.

 

EFCC's spokesperson, Dele Oyewale, said the agency was aware of the
collusion and has summoned some community leaders for questioning. "Some
have even been remanded for interrogation," he said in a phone interview
last month. "We are tracking them. Even those you spoke with may not know
when they will be arrested. We have identified some of them."

 

Security operatives have made recent arrests, including Nigerians and
Chinese nationals, and a number of them have been prosecuted. However,
communities still find ways to help artisanal miners steal minerals, as this
PREMIUM TIMES investigation shows.

 

While the government is optimistic about curbing the illicit role of
community leaders in illegal mining, the economic and environmental impacts
remain evident. In Lade, heaps of mined lithium litter the community,
waiting for buyers. Exhausted mines are left unrestored against the
requirements of mining and environmental regulations.

 

Illegal mining activities may be keeping away structured, organised
private-sector investments. Habeeb Jaiyeola, an energy expert at PwC, an
audit and research firm, said the multiple layers of levies imposed by the
communities might be a disincentive to licit operators, who may consider the
impact of these illegal levies on their operational costs.

 

Still, Mr Jaiyeola expressed optimism about the mining sector.

 

"Right now, the sector is becoming more structured. The government is taking
an interest in the sector. I know that in Nasarawa State, the state
government is partnering with a private firm to set up a lithium processing
factory. As the sector becomes more structured, those who previously
operated unstructured setups may be edged out," said Mr Jaiyeola.

 

"People are structuring their operations and buying from suppliers who
follow due process. These players may not want to engage with those merely
packing the lithium in sacks."

 

The lithium mined in communities like Lade ultimately ends up in countries
like South Korea, China, Japan, the US, and Belgium, where they are
processed into highly sought-after lithium-ion batteries. Some of these
batteries are then shipped back to Nigeria, where Nigerians must pay a
premium for car batteries, phone components, inverter system batteries and
other future energy devices.

 

Although Nasawara State, also in central Nigeria, recently worked with
private investors to build a lithium battery processing factory, the miners
in Lade are unconcerned. They only care about selling their illegally mined
mineral to any willing buyer.

 

This story was sponsored by the Centre for Journalism Innovation and
Development under its Just Energy Transition Minerals Challenge Project.

 

Premium Times.

 

 

 

 

Kenya: KQ Grounds 2 Dreamliner for a Checks Maintenance, Disrupting Flights

Kenya Airways is facing significant service disruptions after two of its
high-capacity aircraft were grounded for unplanned maintenance.

 

The Nairobi-based carrier has taken two Boeing 787 Dreamliner out of service
to undergo checks and repairs, but a shortage of parts has prolonged their
stay in the hangar, leading to delays on several of its scheduled routes.

 

Business Day Africa has established that the aircraft are undergoing A
checks- routine maintenance that typically takes a minimum of 10 working
hours, depending on the service required.

 

While not considered major maintenance, the process has been delayed by a
shortage of engine parts.

 

 

"We apologise for the delays and disruptions experienced recently. These
have been caused by unscheduled engine overhauls and unforeseen engine
supply chain constraints, resulting in two 787 Dreamliner aircraft being
grounded," Kenya Airways said in a statement on Tuesday.

 

The most affected routes include long-haul flights and the recently upgraded
medium-haul service to South Africa, where the airline has been operating
four daily flights using the Boeing 787. This aircraft is primarily used for
routes to Europe, Asia, and the United States.

 

A shortage of spare parts is not just specific to KQ. It has affected other
global airlines as well for the last two years as manufacturers grapple with
huge orders in the wake of rising demand.

 

To cope with the situation, Kenya Airways has been forced to downgrade,
reschedule, or delay some of its flights.

 

The airline says is working with its engine lessors and manufacturers to
find a solution, including securing replacement engines.

 

"We expect this to be resolved shortly. If the situation persists longer
than expected, we will realign our network to minimise delays and
rescheduled flights," the airline added.

 

Business Day Africa.

 

 

 

 

African Airlines Record Weakest Air Cargo Growth in 2024

African airlines experienced a 6.2 percent year-on-year increase in air
cargo demand in July, marking the lowest growth rate among all regions and
their weakest performance in 2024, according to the latest data from the
International Air Transport Association (IATA).

 

The Africa-Asia market, however, showed a 15.4 percent increase in demand
compared to July 2023. Capacity in the region also grew by 10.5 percent
year-on-year.

 

"July's figures reflect slower year-on-year demand and capacity compared
with June, which saw an 11.8 percent rise in demand and a 23.8 percent
increase in capacity," IATA said.

 

 

Total demand, measured in cargo tonne-kilometres (CTKs), climbed 13.6
percent in July from a year earlier, with international operations up 14.3
percent.

 

"This marks the eighth consecutive month of double-digit year-on-year
growth, with overall levels approaching the record peaks of 2021," the
update noted.

 

Capacity, measured in available cargo tonne-kilometres (ACTKs), rose by 8.3
percent year-on-year in July, with international operations up 10.1 percent.

 

"This increase was largely driven by a 12.8 percent growth in international
belly capacity, supported by strong passenger markets, while international
freighter capacity grew by 6.9 percent. Notably, the belly capacity increase
was the lowest in 40 months, whereas freighter capacity growth was the
highest since a significant surge in January 2024."

 

 

Willie Walsh, IATA's Director General, commented, "Air cargo demand reached
record highs year-to-date in July, with robust growth across all regions.

 

The air cargo sector continues to benefit from expanding global trade,
booming e-commerce, and constraints in maritime shipping capacity. With the
peak season still ahead, this year is shaping up to be very strong for air
cargo. Airlines have demonstrated their ability to navigate political and
economic uncertainties and adapt to emerging demand trends."

 

In other regions, Asia-Pacific airlines led with a 17.6 percent year-on-year
increase in air cargo demand in July, the highest among all regions.
Within-Asia trade lanes saw a 19.8 percent rise, while the Europe-Asia,
Middle East-Asia, and Asia-Africa routes grew by 17.9 percent, 15.9 percent,
and 15.4 percent, respectively. Capacity in the region expanded by 11.3
percent.

 

North American carriers reported an 8.7 percent year-on-year growth in
demand, affected by flight cancellations and airport closures in the US and
the Caribbean due to Hurricane Beryl.

 

The Asia-North America trade lane, the largest by volume, saw a 10.8 percent
increase, while the North America-Europe route posted a modest 5.3 percent
rise. Capacity in North America grew by 7 percent year-on-year.

 

European carriers recorded a 13.7 percent year-on-year demand growth in
July, led by a 32.2 percent surge on the Middle East-Europe trade lane,
which has seen double-digit annual growth since September 2023.

 

The Europe-Asia route grew by 17.9 percent, and within Europe, demand rose
by 15.5 percent. Capacity in Europe increased by 7.6 percent year-on-year.

 

Middle Eastern carriers saw a 14.7 percent year-on-year growth in demand,
with the Middle East-Europe route performing particularly well, surging 32.2
percent. The Middle East-Asia route grew by 15.9 percent year-on-year, while
overall capacity in the region increased by 4.4 percent.

 

Latin American carriers experienced an 11.1 percent year-on-year rise in
demand, though growth was hindered by flight cancellations and airport
closures in the U.S. and the Caribbean due to Hurricane Beryl. Capacity in
the region increased by 9.4 percent year-on-year.

 

Business Day Africa.

 

 

 

 

Nigeria, Now 3rd Largest Debtor in World Bank's Scheme

A financial statement published by the World Bank has placed Nigeria as the
third largest debtor to the Bank's International Development Association
(IDA) as of June 30, 2024.

 

According to the financial statement, Nigeria's exposure to IDA rose to
$16.5 billion as at June 30, which is an increase of $2.2 billion, or 14.4%
over $14.3 billion recorded at the end of 2023.

 

IDA is a key arm of the World Bank which provides concessional loans and
grants to the world's poorest countries. The loans are designed to promote
economic growth, reduce inequalities, and improve living conditions in
developing nations, and are characterised by low interest rates and long
tenors.

 

 

On top of the IDA debt list is Bangladesh with $20.5 billion, followed by
Pakistan with $17.5 billion exposure.

 

Nigeria pushed India to the fourth spot with $15.9 billion after the country
reduced its IDA exposure from $17.9 billion in 2023; while Ethiopia, Kenya
and Vietnam followed with $12.2 billion, $12.0 billion, and $12.0 billion,
respectively.

 

The three countries at the bottom of the list are Tanzania with $11.7
billion, Ghana $6.7 billion, and Uganda with $4.8 billion.

 

"As of June 30, 2024, the ten countries with the highest exposures accounted
for 63% of IDA's total exposure.

 

"Monitoring these exposures relative to the SBL requires consideration of
the repayment profiles of existing loans, as well as disbursement profiles
and projected new loans and guarantees," the World Bank said. Recall that
the Debt Management Office (DMO) reported that Nigeria's total public debt
increased to N121.67 trillion in the first quarter of 2024, compared to the
N97 trillion recorded in December 2023.

 

 

According to DMO, the increase was primarily due to new domestic borrowing
by the federal government to partly fund the deficit in the 2024 budget as
well as disbursements by multilateral and bilateral lenders.

 

The debt office said total domestic debt was N65.65 trillion ($46.29
billion), while total external debt was N56.02 trillion ($42.12 billion).

 

It is therefore important that we remind you that it is our responsibility
to grapple with the apparent challenges that have befallen our nation and
its continuing use to beggar and humiliate our people and workers.

 

"You must not therefore allow yourself to become an instrument for the
pauperization of the workers that you lead. You must not allow this process
to be turned into a tool to deprive and cheat already suffering workers from
the benefits that may accrue to them. Congress will severely sanction any
state council that colludes with employers whether public or private to
cheat workers out of their benefits.

 

I believe that the same mind that was in us at the national level will be in
all of you here so that we will have a successful implementation round.

 

As we head to the negotiation table, we must begin to organize and mobilize
now. "We must remain vigilant, informed, and united. This Workshop is an
essential step in that process.

 

It is a space for us to discuss strategies, share knowledge, and build the
networks that will sustain our efforts towards having a better result than
the 2019 cycle. Learn from what we did and be comforted that we have
remained unflinching in the face of persecution by the state.

 

Ajaero added "Like we have said before, ours is a divine mandate! God knows
the purpose for making us leaders of the labour movement at this time in our
nation. We have stood firm and have not betrayed you. You will stand firm,
you will not betray workers and you will not betray man. You will not betray
God. At the end of the day, the people we lead will define us based on how
we handle this exercise - Heroes or betrayers. The choice is ours."

 

Vanguard.

 

 

 

 

Nigeria: Food Inflation - Lagos to Trace Distribution, Prices of Food Items
to Stem Exploitation

Days after concerns were raised over the Federal Competition and Consumer
Protection Commission's (FCCPC) perceived move to institute price control,
the Lagos State government has announced that it would start to trace the
distribution and prices of food items to ensure that consumers are not
ripped off.

 

This was disclosed yesterday by the Lagos State Commissioner of Agriculture,
Ms. Bisola Olusanya, who represented the state governor, Mr. Babajide
Sanwo-Olu, at the 2024, "LCCI Agric Symposium and Fair."

 

Olusanya said: "Going forward, government has said any support to any farmer
has to be with an agreement that we must understand your trail to the market
for us to be able to say that 'yes we supported you with this based on this
amount and this is the price you are going to sell in the market.

 

 

"The federal, state and local governments invest so much in food production.
But we do not follow our investments to the markets.

 

"What I mean is that we give farmers inputs and we give processors support
but we do not follow the products to the markets to ensure that the prices
at which these items are being sold are reasonable for average Nigerian.

 

"We leave the dynamic of pricing to market arbitragers and those who will
play at the margins and at the end of the day we say that 'prices of foods
are too high."'

 

She said going forward, the state government's investments should be
tailored in such a way that the government would know the markets the
beneficiaries are selling their products and the landing price in that
market compared to their cost of production.

 

 

"We must ensure that with all of our supports, the average Lagosians and
Nigerians can see the impact. The average Nigerian out there does not
understand that you gave someone a bag of fertilizer, seeds and pesticides.

 

"The only thing Nigerians wants to hear is that the price of foodstuff is
now at this low price," she said.

 

Commenting on the various fresh food hubs being set up by the state
government, the commissioner added that the government should know what,
"the landing cost will be in whatever market they are.

 

"We should also start tracing the different distributors and dealers that
are off taking these products and how much they are being sold to the
average market woman/man such that at the end of the day every Logosian and
Nigerians will be able to say if this is really overpriced or this is what
the real market indices will be.

 

"That will help us to start to put accountability to everyone in the food
value chain. So, it will not be that the middlemen are making the most
margins at the expense of the farmer who put in the labour, the sweat and
the tears and yet make minimal margins.

 

"That is what we have seen over the years and the narrative must change.
This is why the Lagos State is building the largest food logistic hubs and
other middle level hubs, which are actually helping us in terms of tracing
to know what food items that are being produced or sourced from elsewhere;
what quantities are coming into these hubs, how much they are sold and what
is the quantity sold at to various markets where it is going and how the
distribution goes.

 

"It will also help us sit at the table with partners to start to negotiate
for the quantity of food that should come in at any point in time and the
pricing at which farmers should make margins and be profitable.

 

"These are some of the things that we are doing and we believe that all us,
including the private sector, bilateral and multilateral agencies will work
together to ensure that this becomes the norm in the agricultural and food
system space in Nigeria," she said.

 

Olusnya stated that vendors selling at prices not "regular" would not be
allowed to operate at the fresh food hubs. "The idea around the hub is to
enable us to have data on the amount of food coming in and the various value
chain categories that can help us to extrapolate going forward toward having
proper food reserves and making sure that we have adequate food for
Lagosians for a time frame in case of emergency," she explained.

 

Olusanya also described the story that Lagos has no land as a myth,
explaining that, "it is just that citizens are pushing harder around real
estate investment."

 

This Day.

 

 

 

 

Uganda: Government Banks On Digital Stamps to Boost Domestic Revenue

Ggoobi said that the government is committed to addressing the remaining
challenges facing investors and businesses, including easing compliance with
tax regulations.

 

The government is banking on Digital Tax Stamps(DTS) to plug revenue
leakages and increase tax collections, Ramathan Ggoobi, the Permanent
Secretary at the Ministry of Finance and Economic Planning, has revealed.

 

At a conference on tax incentives, tax policies, and tax administration for
Ugandan investors, Ggoobi said digitising the tax system through digital
stamps will support the government's efforts to increase the tax-to-gross
domestic product (GDP) ratio, thereby reducing borrowing.

 

 

The conference, held at Hotel Africana on September 4, 2024, was attended by
Prime Minister Robinah Nabbanja, Minister of State for Privatization and
Investment Evelyn Anite, and other stakeholders from the public and private
sectors.

 

Ggoobi emphasized the importance of leveraging technology to modernize tax
administration and enhance revenue collection.

 

"Government recognises the tax administration must evolve to keep pace with
the changing economic environment, and this includes leveraging technology
to streamline the tax processes, reducing the cost of compliance and
enhancing transparency in tax collection, for example, the introduction of
the e-tax, EFRIS and Digital Tax Stamps have significantly improved the
efforts to modernize the tax administrations and also improve tax
compliance," Ggoobi said.

 

 

"Over the years, Uganda has made significant strides in strengthening the
tax system, our revenue-to-GDP ratio has improved from a low of 8.8 per cent
to 14.3 per cent this financial year. This upward trend is a testament to
the reforms that government has implemented in the tax policy and
administration aimed at broadening the tax base but also improving
compliance and reducing tax evasion," Ggoobi added.

 

Ggoobi said that the government is committed to addressing the remaining
challenges facing investors and businesses, including easing compliance with
tax regulations.

 

"The government is committed to addressing the remaining challenges facing
investors and businesses, including easing compliance with tax regulations.
The leadership is also committed to eliminating leakages and corruption that
undermine tax morale," he said.

 

Utility

 

In April 2019, the Uganda Revenue Authority (URA) launched the DTS
initiative to combat illicit trade and seal revenue leakages.

 

Clare Musiime Bakanga, the URA Head of Change Management for Digital
Tracking Solutions, said that many traders and businesses faced unfair
competition due to the smuggling of goods.

 

She explained that URA is working with the Uganda National Bureau of
Standards (UNBS) to minimize revenue leakages, combat illicit trade and
money laundering, and ensure the traceability of products.

 

Digital Tax Stamps are physical paper stamps applied to goods or their
packaging, containing security features and codes to prevent counterfeiting
and tampering. These stamps also have track-and-trace capabilities, allowing
consumers to validate the stamp, traders and manufacturers to track product
movement, and the government to monitor product compliance.

 

A quick response (QR) code allows distributors, retailers, and consumers to
use an app on their smartphones to verify the authenticity of the products.

 

When the stamps are placed on the products, they are registered both on the
manufacturers' server and URA's digital server. According to Bakanga, this
system enables URA to keep a record of how much was produced for the market
and assess the applicable tax.

 

Nile Post.

 

 

 

 

Nigeria: Minimum Wage - Betray Workers, Face Consequences, NLC Warns State
Councils

Last Month President Bola Tinubu signed into law the N70,000 new National
Minimum Wage Act. Though, some states have begun discussion on the
consequential adjustment arising from the new wage ahead of its
implementation, most states even the Federal Government are yet to begin
implementation as the consequential adjustment has to be agreed on.

 

To agree on the consequential adjustment and implementation of the new
minimum wage is another phase of the long and even protracted battle for
workers, especially at the state and local government levels.

 

To prepare its state councils for the task ahead, the leadership of the
Nigeria Labour Congress, NLC, has begun the training of its state council
leaders to prepare them for effective strategies for a successful process
and help them to learn from past mistakes and map strategies to effectively
deliver the benefits of the new wage to workers.

 

 

Welcoming participants at a two-day Workshop for the Northern Zone of the
country, President of NLC, Joe Ajaero warned state council leaders against
betraying workers for personal gains, warning of severe consequences for
leaders who compromise their position for selfish reasons.

 

He said "The choice of the theme for this workshop; "Strategies for
Effective implementation of the 2024 National Minimum Wage Act" is therefore
intended to help prepare us to evolve effective strategies for a successful
process during this cycle. It is intended to help us learn from our past
mistakes and map strategies to effectively deliver the benefits of the Law
to our members. As we have pointed out earlier, it is only when our members
begin to enjoy its benefits that we beat our chest and exclaim; "we have
done it"

 

 

"Remember comrades, Production they say in Economics is not complete until
it reaches the final consumer so this national minimum wage exercise cannot
be said to be complete until it reaches all of our members wherever they may
be working. Your comrades are the vessels that would be used in delivering
this. The extent to which you can deliver the expected benefits is dependent
on your capacity and your character. Your focus and determination including
your resilience and how you can communicate the process to our members in
your respective states is very important. The situation to you presents both
challenges and opportunities to you.

 

"However, the overall outcome is going to be dependent on the choices you
will make. What those choices will be will largely be determined by what
your interests are; either to be a responsible and responsive leader or to
lead for yourselves and cronies. You must however remember that any of the
choices you make will have its consequences.

 

Vanguard.

 

 

 

Africa Needs Strategic, Disciplined Approach With China, Experts Say

Addis Ababa, Ethiopia / Washington — China has been establishing closer
cooperation with Africa, a relationship some view as fraught with debt
burden while others hail as Africa leveraging its strategic importance
globally.

 

This week's Forum on China-Africa Cooperation in Beijing carries benefits
for both Africa and China, officials and African affairs experts say.

 

Countries like Ethiopia, Djibouti and Kenya have been on the receiving end
of a huge amount of investment from Beijing. And China has been relentless
in seeking to secure partnerships for dependable sources of raw materials as
well as creating alliances to gain geopolitical influence and counterbalance
Western powers. That is the assessment of former Ugandan diplomat Simon
Mulongo.

 

 

"What is in it for Africa is basically four things: infrastructure
development where China has invested heavily in Africa infrastructure,
building roads, railways, ports and other essential facilities," Mulongo
said.

 

"The second is economic growth. The Chinese investments have actually
created jobs and stimulated economic activities in various sectors, which
includes manufacturing, mining and agriculture. There is also financial aid
and loans where China offers financial assistance, often with fewer
conditions compared to the Western countries. And the fourth is trade
opportunities [in] which Africa benefits from access to the Chinese markets,
which can boost export revenues, especially raw materials and agricultural
products."

 

Mulongo, who is the managing partner of EMANS Frontiers, a governance and
security consultant, said China also is benefiting from the partnership with
Africa, including through trade opportunities and the rich mineral
resources, oil and other natural resources that China needs to fuel its
industrial growth and sustain its population.

 

 

Djibouti is one of the countries where China investment is visible. China
not only has a major military base there but also has developed, together
with the Djibouti government, large infrastructure projects, including
electrical rail, a deep-sea port and a free-trade zone.

 

Ilyas Moussa Dawaleh, Djibouti's minister of economy and finance, said the
forum has become the "cornerstone for enduring collaboration" between the
two counties.

 

Financing challenges

 

"Everybody knows in Africa we are facing financing challenges when it comes
to the key infrastructure development," said Dawaleh, who spoke to VOA's
Horn of Africa Service from Beijing.

 

 

"The infrastructure financing gap in Africa is estimated to billions per
year. Therefore, we very much value the support of China when it comes to
narrow or reduce that gap in infrastructure financing," he said.

 

Asked if Chinese loans were a "ticking time bomb" for Africa, Dawaleh said
they weren't.

 

He said the debt crisis Africa is facing is driven by global challenges,
including the impact of two years of COVID-19; droughts and climate change
in the Horn of Africa; the Red Sea and Middle East crisis; and "inflation
imported due to the crisis in Ukraine and Russia."

 

"We need the understanding of the partners, and China again confirmed,
standing with Africa in order to look at means and ways to deal more softly
in the debt crisis," he said.

 

Kibur Gena, an economist and the executive director of Initiative Africa,
said African countries should exercise a strategic and disciplined approach
in managing large loans so that they contribute to sustainable economic
development rather than leading to debt distress.

 

The loans, he said, should be "transparent with clear terms and conditions."

 

"They should be definitely used to finance projects that have the potential
to generate significant economic returns," he said. Countries should
"strengthen their debt management offices to monitor and manage the loans
portfolio effectively. I think these are some of the basic points that I
would like to raise in terms of managing loans with China, or any other
country, for that matter."

 

Kibur said balanced partnership is key to China-Africa relations.

 

"All that requires is a balanced and strategic partnership that prioritizes
mutual interest, that prioritizes transparency and scores long-term
development," he said.

 

Open markets

 

Kibur said China should also open its markets to a broader range of African
products, particularly those with higher value added to support
industrialization effort.

 

Mulongo highlighted the difference between the relations Africa has with
China as opposed to Western countries.

 

"The Western countries often engage and involve aid with conditions related
to governance, human rights and economic reforms -- a number of African
leaders can see these conditions as intrusive," the former Africa Union
deputy special envoy to Somalia said.

 

"The other one is security-focused. The West usually focuses on security,
particularly counterterrorism, peacekeeping and military cooperation," he
added.

 

Africa should not be forced to choose between China and the West, Mulongo
said. Instead, African countries should aim to balance relations with both,
leveraging the unique strengths and opportunities that each power presents,
he said.

 

This story originated in VOA's Horn of Africa Service. VOA.

 

 

 

 

African Leaders Snub Indonesian Summit in Favor of China Visits

Singapore — Indonesia has looked this week to boost trade ties with African
nations during a summit in Bali, although many leaders from the continent
stayed away, instead opting to visit China for a high-profile forum in
Beijing.

 

Representatives from 29 African nations headed to the Indonesian resort
island, well-short of the 47 countries that were represented during the
inaugural Indonesia-Africa forum in 2018.

 

Despite this, the Southeast Asian country is hoping to have sealed $3.5
billion worth of business deals from the three-day forum, according to
President Joko Widodo.

 

 

As the summit concluded Tuesday, some of the delegates headed to Beijing to
join a larger representation of African leaders for the Forum on
China-Africa Cooperation.

 

Fifty African countries are slated to be represented at the forum in the
Chinese capital, which takes place every third year.

 

"Between Indonesia and China, the major African leaders chose China to be
present at," said Christophe Dorigne-Thomson, an Indonesia-based foreign
affairs academic.

 

"That doesn't mean that the collaboration with Indonesia and the forum does
not have important discussions and important outcomes. But symbolically, for
sure, the choice was made for China," Dorigne-Thomson told VOA.

 

Relations between Indonesia and the African continent date back to at least
1955, when former Indonesian President Sukarno hosted the Asian-Africa
conference in the city of Bandung. Most of the African states represented
were newly independent.

 

 

"Jakarta can boast history and a legacy of relationship that stretches back
to the Bandung Conference," said Elina Noor, senior fellow in the Asia
Program at the Carnegie Endowment for International Peace.

 

"Indonesia has really sought to leverage on that historical relationship to
recall the spirit of Bandung - it's part of the theme at this year's
Indonesia-Africa forum," Noor told VOA.

 

While the historical ties have allowed for decades of solid relations,
Dorigne-Thomson says Indonesia's interest in Africa increased when President
Joko Widodo took office in 2014, adding that "the main focus is on the
economy."

 

The Indonesian government said that roughly $600 million of deals were
signed during the inaugural Indonesia-Africa summit in 2018.

 

This year, they have targeted nearly six-times that amount as they look to
boost economic links with African countries.

 

 

"There seem to be some concrete MOU's (memorandum of understanding) and
letters of intent, like Indonesia's aircraft industry signing deals with
several countries and the oil companies also signing deals," said Dewi
Fortuna Anwar, senior researcher at Indonesia's National Research and
Innovation Agency.

 

Despite these agreements, Anwar said she's "not sure whether the $35 billion
target will be realized," largely because of the lack of procedures to track
the various deals and ensure they are developed and concluded in the years
ahead.

 

Announcements from the summit include an agreement between Indonesia's
Energi Mega Persada and Guma Africa Group for a gas project in South Africa
that could be worth up to $900 million.

 

The project is aimed at increasing gas supplies to South Africa and
Mozambique, with the two companies also agreeing to develop a new gas power
plant.

 

Such eye-catching deals generate a lot of attention, but, according to Noor,
much of the business at this summit comes in the form of smaller agreements.

 

"On the Indonesian side, a lot of the businesses in the country comprise
micro, small and medium enterprises," Noor told VOA. "I think it's
particularly important that we keep this in mind, because a lot of the
headlines tend to just focus on the large corporations."

 

Though deal-making at this summit presents Indonesia opportunities to expand
its export markets, the country is also looking to secure import deals with
African nations to boost lithium supplies.

 

The Southeast Asian nation has a booming nickel industry but needs lithium
as another key component for assembling and producing batteries for electric
vehicles.

 

"Africa is an ideal partner due to its wealth of critical minerals, which
Indonesia seeks to access. Indonesia's rapid industrialization also creates
a growing demand for African commodities," said Sharyn Davies, director of
the Herb Feith Indonesia Centre at Monash University in Melbourne,
Australia.

 

Opening new trade avenues with Africa also provides Indonesia with a chance
to diversify away from traditional trading partners including the US and
China.

 

As tensions continue to simmer between the world's two biggest economies,
Davies believes that Africa could be "a way for Indonesia to sidestep from
picking sides between China and the US."

 

While the main focus of the Bali forum was business, politics was also at
play.

 

President Widodo has looked to enhance Indonesia's standing on the
international stage, promoting his country as a voice of the Global South.

 

"Indonesia is not a follower in the Global South movement; it's been very
much one of the founding members," Anwar, the researcher in Indonesia, told
VOA. "The difference is that Indonesia also stresses the importance of, not
just South-South cooperation, but also North-South cooperation. Indonesia
sees itself as a bridge builder."

 

VOA.

 

 

 

 

Kenya: SRC Chair Mengich Raises Concerns Over Kenya's Bloated Wage Bill

Nairobi — Salaries and Remuneration Commission (SRC) Chairperson Lynn
Mengich has termed the country's wage bill as bloated, raising concerns over
the current 43 percent public wage bill to revenue ratio.

 

Mengich, who was speaking in an interview with Hot 96 on Wednesday, stated
that the nation's wage bill has been on an upward trend despite efforts by
the government to cut down on its expenditure.

 

She noted that the current wage bill, which jumped to the trillion shilling
mark, already has surpassed the recommended 35 percent limit of the revenue
collected according to the Public Finance Management Act.

 

Mengich said huge allocations of the nation's wage bill, accounting for 50
percent, have been directed to the education sector, including both the
Teachers Service Commission and the high education sector.

 

 

"We may say it is bloated but it is good to look at the context of that in
terms of what really constitutes this wage bill and what is driving the wage
bill. If you look at the wage bill today, yes it is at a trillion but
actually 50 percent of the wage bill is in the Teaching Sector for teachers
and lecturers salaries," she said.

 

Mengich hinted at a possible crisis arising from the current wage bill to
revenue ratio, which is above the recommended 35 percent target of total
revenue collected.

 

"There is a problem because the ratio of wage bill to revenue is not where
it is supposed to be," she added.

 

She, however, defended the lion shares allocated to the education sector,
stating that the government has to ensure basic essential services,
including education, are provided to its young, growing population.

 

 

"We have to accept that as a developing country with a growing young
population we have an obligation to ensure that essential services are
provided including education, healthcare and security. Because of that we
have to spend a lot of money in education," she stated.

 

The commission recently abolished plenary, citing allowances for Members of
Parliament and the Members of the County Assembly (MCAs), stating that the
extra allowances were double compensations for their salaries.

 

On August 29, 2024, SRC revealed a significant reduction in the public wage
bill over the past six years, marking a 4.9 percent decline to 46.6 percent
of the total ordinary revenue in the 2022/2023 financial year.

 

Over the six-year period, the Commission noted a progressive drop in the
total public wage bill to total ordinary revenue ratio from 51.54 percent in
FY 2017/2018 to 47.06 percent in FY 2021/2022.

 

The Commission projected the wage bill ratio to decline further to 39.22
percent in the 2023/2024 financial year.

 

The government plans to reduce its public sector wage bill to 35 percent of
the national revenue by 2028, down from the current 43 percent, targeting to
unlock more funds for the country's development.

 

Capital FM.

 

 

 

 

Kenya: Fading Protests Boost Kenya's Private Sector Activity in August

Nairobi — Kenya's private sector activity improved last month for the first
time since May due to the cooling of the recent anti government protests.

 

The Stanbic Bank Kenya Purchasing Managers' Index (PMI) Report indicates a
mild recovery in business conditions during August as the impact of protests
faded, allowing firms to broadly resume normal operations.

 

The PMI rose from 43.1 previously recorded in July to 50.6 in August,
posting above the 50 no-change mark for the first time since May, when the
sector's activity increased.

 

PMI reading below 50 indicates a downtick and deterioration in business
activities, while the figure above shows growth and improvement.

 

 

"Kenyan businesses raised their output levels for the first time in three
months in August. The rate of growth was moderate and the second quickest in
over a year-and-a-half," Stanbic stated.

 

"The reading thereby signaled a renewed improvement in business conditions
in the Kenyan private sector however, the pace of expansion was only
marginal."

 

The PMI report noted that activity levels rose for the first time since May,
with new orders also picking up, albeit marginally.

 

The Bank stated that firms also increased their purchases of inputs, while
employment fell for the first time so far this year.

 

"New orders placed at Kenyan businesses also picked up in August, although
the uplift was only slight. Some firms continued to highlight weak spending
power at customers. However, firms did raise their purchases of inputs,
which was the first expansion in three months," the report concluded.

 

According to survey respondents, cost pressures on businesses across the
private sector intensified in August due to rises in import fees and tax
burdens.

 

"Business expectations worsened in August, implying firms as less hopeful
about output over the next 12 months. Only 5 percent of the survey panels
were confident that output levels will increase over the next 12 months,"
said Christopher Legilisho, economist at Standard Bank.

 

Capital FM.

 

 

 

 

Africa: Focac Offers a New Dawn for Africa-China Ties

The Forum On China-Africa Cooperation (FOCAC), which kicks off this week,
marks a significant milestone in the burgeoning relationship between China
and Africa. As the premier platform for high-level dialogue and cooperation
between the two continents, FOCAC has played a pivotal role in fostering
economic growth, infrastructure development, and cultural exchange.

 

President Paul Kagame is leading the Rwandan delegation to the high-level
summit.

 

ALSO READ What to expect at upcoming China-Africa cooperation summit

 

The success of FOCAC hinges on a mutually beneficial engagement that
addresses the specific needs and aspirations of both China and Africa.
African countries must approach this forum with a clear understanding of
their priorities and expectations.

 

 

It is imperative that they articulate their goals in areas such as
infrastructure development, human capital development, technology transfer,
and trade.

 

ALSO READ: Kagame in Beijing for China-Africa cooperation summit

 

Moreover, African countries should actively seek to diversify their economic
partnerships and reduce their dependence on any single country.

 

While China has undoubtedly made significant contributions to Africa's
development, it is essential to explore other avenues of cooperation and
investment to ensure a more resilient and sustainable future.

 

In addition to economic considerations, FOCAC presents an opportunity for
China and Africa to strengthen their cultural ties and promote mutual
understanding. By fostering people-to-people exchanges, educational
collaborations, and cultural events, we can build bridges of friendship and
cooperation that will endure for generations to come.

 

ALSO READ: Kagame: A stronger Africa is an opportunity, not a threat

 

As we embark on this new chapter in Africa-China relations, let us commit to
a partnership that is based on mutual respect, equality, and shared
prosperity. By working together, we can unlock the full potential of our
continents and create a brighter future for generations to come.

 

New Times.

 

 

 

Volvo gives up plan to sell only EVs by 2030

Car company Volvo has announced it has abandoned its target to produce only
fully electric cars by 2030, saying it now expects it will also be selling
some hybrid vehicles by that date.

The car maker blamed changing market conditions for its decision to give up
a target it had announced only three years ago.

It comes as the industry faces a slowdown in demand in some major markets
for electric vehicles (EVs) and uncertainty due to the imposition of trade
tariffs on EVs made in China.

Volvo, which has traditionally flaunted its environmental credentials, joins
other major car makers General Motors and Ford, which have also rowed back
on their EV ambitions.

 

Volvo now expects at least 90% of its output to be made up of both electric
cars and plug-in hybrids by 2030.

The Swedish company may also sell a small number of so-called mild hybrids,
which are more conventional vehicles with limited electrical assistance.

"We are resolute in our belief that our future is electric," said Jim Rowan,
chief executive of Volvo, in a statement.

"However, it is clear that the transition to electrification will not be
linear, and customers and markets are moving at different speeds."

The company also said the business climate for EVs had changed, due to
factors such as a slow rollout of charging infrastructure and the withdrawal
of consumer incentives.

A slowdown in demand for EVs has been felt particularly in Europe in part
due to the end of subsidies for purchases in countries like Germany.

Registrations of EVs across the European Union dropped by nearly 11% in
July, according to the European Automobile Manufacturers Association.

Volvo is majority-owned by Chinese car giant Geely and because it uses
factories in China, it will also be affected by tariffs on imports of
Chinese-made EVs in Europe and North America.

Last week, Canada announced it was imposing a 100% tariff on imports of
China-made electric vehicles, after similar announcements by the US and the
EU.

Western countries have accused China of subsidising its EV industry, giving
its car makers an unfair advantage.

China has rejected those allegations and criticised the tariffs as
"discriminatory".

Ford has also been scaling back on its EV ambitions. Just last month, the US
car giant announced it was scrapping plans for a large, three-row,
all-electric sport utility vehicles (SUVs) and postponing the launch of its
next electric pick-up truck.

Its rival General Motors has also been cutting EV production goals in the
last year.-BBC

 

 

 

 

Fast fashion drove Bangladesh - now its troubled economy needs more

Bangladesh is the beating heart of the global fast fashion business.

The clothes its factories export stock the shelves at H&M, Gap and Zara.
Over three decades, this has transformed the country from one of the world’s
poorest to a lower-middle income nation.

But its garment industry, worth $55bn (£42bn) a year, is now facing an
unsettled future after weeks of protests toppled the government of Sheikh
Hasina in August. Hundreds of people were killed in the unrest.

At least four factories were set alight, while manufacturers struggled to
operate under a nationwide internet blackout. Already, three big brands,
including Disney and US supermarket chain Walmart, have looked elsewhere for
next season’s clothes.

The disruption is continuing. From Thursday, some 60 factories outside Dhaka
are expected to be closed because of worker unrest. Staff have been
protesting with various demands, including for better wages.

 

Reuters Protesters clash with police and the pro-government supporters,
after anti-quota protester demanding the stepping down of the Bangladeshi
Prime Minister Sheikh Hasina at the Bangla Motor area, in Dhaka, Bangladesh,
August 4, 2024Reuters

Mass protests gripped the country for weeks before the government fell

Recent events “will impact the confidence level of brands”, says Mohiuddin
Rubel, a director at the country’s garments manufacturers and exporters
association.

“And probably they might think - should we put all our eggs in one basket?”
he says, noting rival garment-producing countries like Vietnam.

Indeed, Kyaw Sein Thai, who has sourcing offices in both Bangladesh and the
US, suggests the recent political unrest could result in a "10-20% drop in
exports this year”. That’s no small amount when fast fashion exports account
for 80% of Bangladesh’s export earnings.

Even before the events of the past few months, Bangladesh’s garment industry
– and its economy – were not in good health. Child labour scandals, deadly
accidents and the Covid-19 shutdown had all taken their toll.

Soaring prices had made manufacturing more expensive - but slowing demand
meant you couldn’t sell for as much. This was especially bad for Bangladesh,
which relies heavily on exports. As profits from exports shrank, so did
foreign currency reserves.

There were other problems too: excessive spending on showpiece
infrastructure projects had drained the government’s coffers. And rampant
cronyism weakened its banks, as powerful businessmen with links to former
Prime Minister Sheikh Hasina’s Awami League party failed to repay loans.

“It wasn’t benign neglect but a designed robbery of the financial system,”
the country’s new central bank governor, Dr Ahsan Mansur, told the BBC in a
recent exclusive interview.

Fixing this, Dr Mansur said, was his top priority, but he warned it would
take years and the country would need more financial support, including
another IMF bailout.

“We are in a difficult spot and we want to remain fully compliant in terms
of servicing our foreign obligations, every penny of it. But we need some
additional cushion for now,” said Dr Mansur.

 

An empty office in a technology park near Dhaka, Bangladesh.

An abandoned office space in a technology park near Dhaka

Mahaburbur Rahman, whose family founded clothing manufacturing firm Sonia
Group two decades ago, points out that the country’s falling reserves of
foreign currencies alone are enough to dent confidence.

“They are concerned about how we will pay for imports of yarn from India and
China if we don’t have enough dollars. Many of them are not even able to
come to Bangladesh anymore to place new orders because they aren’t getting
travel insurance,” Mr Rahman says.

But Bangladesh has a bigger problem at hand – the protests that ousted Ms
Hasina were driven by students who were frustrated over the lack of
well-paying jobs and opportunities.

While the clothing factories may have created millions of jobs, they don’t
pay well. Some factory workers who spoke to the BBC said they struggled to
survive on pay that was barely half the national minimum wage, which meant
they were forced to take out loans to feed their children.

Many of them joined the student-led protests in recent months to demand
better pay and conditions.

“We will settle for nothing less than a doubling,” union leader Maria said.
“Wages have to reflect the increase in cost of living.”

The student protesters, though, are calling for a more radical shake-up of
the jobs market.

Abu Tahir, Mohammad Zaman, Mohammad Zaidul and Sardar Armaan were all part
of the demonstrations.

All unemployed for between two and five years, they tell the BBC that they
are keen to work for the private sector but don’t feel as if they are
qualified for the jobs that are available.

“[My parents] hardly understand how competitive the job market is. To be
unemployed is a major source of pressure in my family. I feel belittled,” Mr
Zaman says.

“We just get a degree, we are not getting the right skills,” says Mr Zaidul.

“The new adviser is an entrepreneur himself though, so we all feel more
hopeful he’ll do something about this,” he adds, referring to the country’s
interim leader, Muhammad Yunus. Mr Yunus won a Nobel Peace Prize for his
pioneering work in micro loans.

 

Textile workers in a garment factory in Bangladesh.

The clothing industry has helped lift millions of people out of poverty

Dr Fahmida Khatun of the Centre for Policy Dialogue think tank points out
that diversifying the economy will be critical to meet the aspirations of
educated youth - arguing that that would be no bad thing for the economy.

“No country can survive for a long time based on only one sector,” she says.
“It will take you so far, but no further. There have been [diversification]
attempts, but so far it’s only been in the books.”

A disused technology park outside the capital Dhaka offers evidence of this.
Inaugurated in 2015, it was meant to be part of a nationwide initiative to
create higher paid jobs and cut Bangladesh’s reliance on garment production.

It now sits abandoned – a reminder of the previous administration’s economic
failures.

“This is the perfect example of the gap between what industry needs and what
the government has provided,” says Russel T Ahmed, a software entrepreneur.

“Nobody asked us if we needed these parks. Bangladesh has been investing in
physical infrastructure, but how much have we invested in human
infrastructure? That is the raw material this industry needs.”

What the new government needs to do, says Dr Khatun, is remove bottlenecks
like corruption and red tape to encourage foreign and private investment.

Mr Yunus has vowed to bring comprehensive reforms to the country’s economy
and fix institutions that have, as Dr Khatun says, been “systematically
destroyed” over the past few years.

He has a formidable task ahead – steadying the economy, delivering free and
fair elections, and preventing government policymaking from being controlled
by vested interests.

All of this has to be done as the country faces a raft of other problems:
slowing global demand for the goods it makes, deteriorating relations with
its giant neighbour and trading partner India, which is harbouring Ms
Hasina, and climate change causing more intense cyclones in the flood-prone
nation.

These challenges are as vast as the hopes many people have heaped on Mr
Yunus’ shoulders.-BBC

 

 

 

 

 

 

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


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