By Dorothy Nakaweesi

Kampala — The Shilling has lost ground against the dollar after weeks of stability; a situation experts peg on the effects of the World Bank’s loan suspension to Uganda.

By close of business yesterday at the Bank of Uganda counter, the Shilling was trading in the region of 3,406/3,416. The Shilling last touched this region, three months ago.

The World Bank Group recently withheld new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda.

In an interview with Daily Monitor, Mr Fred Muhumuza, an economist and researcher, said: “We cannot rule out this could be the effects of the recent World Bank suspension of its lending to Uganda. This means the money, which we would be expecting to come in, is not trickling in.”

Mr Muhumuza said if this trend continues this month and beyond, it is going to drive inflation up and the cost of living.

“Life is going to become expensive because those who took bank loans will have to spend more Shillings to pay back the loans,” Mr Muhumuza said.

Ms Christine Alupo, the director of communications at Bank of Uganda, attributed the Shilling’s depreciation to corporate demand.

“We are seeing demand pick-up in corporate demand for the dollar, especially from the oil sector. As always, we don’t speculate on the trend and only intervene when there is excessive volatility,” Ms Alupo noted.

Mr Muhumuza concurred with Ms Alupo in explaining the Shilling’s depreciation, saying it is as a result of some corporate companies, which are filing their returns.

Other experts say the trend could be caused by importers who are stocking for the festive season.

However, Mr Everest Kayondo, the chairman Kampala City Traders Association (Kacita), seems to disagree with this notion saying: “The Shilling depreciating does not surprise us if it is happening.”

Backing his statement, Mr Kayondo said currently in Uganda, there is no activity to fetch the country dollars because most local investors are injecting their money into real estates and arcades.

“There is no local content that is bringing in dollars. We are now depending on the little money coming from Ugandans living and working in the diaspora,” he said.

Regional status

Meanwhile, Kenya, one of Uganda’s leading trading partners also experienced the strength of the dollar, which left the Kenyan shilling slightly weakened yesterday.

The Kenyan shilling traded at a mean of KShs101.26 against the dollar, compared to an average of KShs101.21 it traded the previous day.

Maputo — The Bank of Mozambique has intervened in the country’s fourth largest commercial bank, Moza Banco, suspending its Board of Directors, and imposing a provisional board.

A statement issued by the central bank on Friday said the financial state of Moza Banco had been declining “in an unsustainable manner”. The Bank of Mozambique had stepped in “to protect the interests of the depositors and other creditors” and “to safeguard the normal operating conditions of the banking system”.

The statement assured the bank’s clients and the public at large that Moza Banco “will continue to function normally”.

This is only the second time the Bank of Mozambique has intervened in a failing private bank. The first such event was the rescue of Austral Bank (later transformed into Barclays Bank-Mozambique) in 2001.

The circumstances, however, could hardly have been more different. Austral collapsed under a huge weight of non-performing loans. Austral had resulted from the hasty privatisation of the People’s Development Bank (BPD) in 1997, and when the new owners, notably the Malaysian Southern Bank Berhard, were faced with a crisis, they simply handed their shares back to the state.

Moza Banco, however, does not appear to have engaged in reckless lending. Instead it ran into a shortage of liquidity, and its shareholders were unable to recapitalize the Bank.

This is a serious blow to the hopes of setting up a private bank controlled by Mozambicans. From the moment it was founded, Moza Banca insisted that it should be at least 51 per cent owned by Mozambicans. The Mozambican shareholder is Mocambique Capitais, which consists of about 400 Mozambican investors.

The foreign investor was initially the Portuguese Banco Espirito Santo (BES). But BES in Portugal was seriously mismanaged, and in 2014 it had to be bailed out by the Portuguese central bank. Its healthy assets (including the 49 per cent holding in Moza Bank) were spun off into a new entity, Novo Banco. But it seems that Novo Banco was in no condition to inject new funds into Moza Banco.

The founder and chairperson of Moza Banco was Prakash Ratilal, a former governor of the Mozambique.

The man whom the central bank has put in charge is Joao Figueiredo, who once headed the country’s largest commercial bank, the Millennium-BIM, which he left to found one of the newest players on the Mozambican financial stage, Banco Unico.

By Emmanuel Ntirenganya

Lack of enough funding, skilled researchers as well as motivation for the available researchers are the main issues that should be addressed to advance agriculture.

The remarks were made on Wednesday by the Minister for Agriculture and Animal Resources (MINAGRI), Dr Gerardine Mukeshimana.

This year, MINAGRI and the Rwanda Agriculture Board (RAB) developed a seed strategy to cease importing seeds and instead produce them locally.

The strategy also goes hand-in-hand with the research strategy designed this year in a bid to meet quality seeds demand and tackle crop diseases in the country.

The research strategy includes urgent matters related to plant breeding, plant pathology and soil health, which the minister said can be gradually addressed but after ‘putting researchers in the mood of delivery.’

Speaking to The New Times on Wednesday, Dr Claver Ngaboyisonga, a cereals researcher at RAB, said when research is not done, agriculture starts to experience many problems, including seed defects and emergence of new diseases.

“Particulary in this climate change period which results in new diseases, things change and there is a need to look for new seeds and mechanisms to prevent diseases,” Ngaboyisonga said.

“Research is the first element in agriculture and ,therefore, should be put first so that such issues are kept at bay.

Well-informed research would also help tackle diseases and pests from other countries,” he said

Meeting with MINAGRI officials to assess the performance of the agricultural sector last week, senators said there was need for advanced research to address the issue of shortage of improved seeds as well as controlling crop diseases so that farmers are ensured of good production for food security and exports.

Rwanda imports hybrid seeds, including maize, beans and soya.

Senator Evariste Bizimana asked, “Can’t we hire experts to train RAB workers such that we become self-reliant in terms of research?”

He cited the issue of expensive Irish potato seeds with a kilogramme going for Rwf600

Funding issue

“It is a big challenge for us to get funds needed for seeds, irrigation, fertiliser and research, but we try,” said Mukeshimana.

The Deputy Director General of RAB, Dr Daphrose Gahakwa, said, “In the previous years, researchers used to source funding by themselves and, in some cases, it did not match the government’s programmes. But the situation has changed, now research is a priority,” she noted.

Promotion of researchers

The other issue that Mukeshimana cited was that researchers expressed lack of motivation.

The minister also pointed to the issue of lack of skilled personnel. There is only one PhD, two masters, and five bachelor’s degree holders.

“I don’t think that if you add up those skills, they can avail the plant pathology that we need in the country,” she said.

The Government’s 7-year Programme (2010-17) states that seeds research will be developed and research findings disseminated down to farmers’ level so that use of quality seeds gows from 40 per cent to 100 per cent.

An 18-man disciplinary committee has been set up in Nasarawa Eggon Local Government Area to monitor and punish any herdsman found disturbing the peace of the area.

The News Agency of Nigeria (NAN) reports that the committee was set up after a meeting between leaders of the Miyetti Allah Cattle Breeders Association (MACABA) and Eggon Cultural and Development Association (ECDA), on Saturday in Nasarawa Eggon, Nasarawa State.

The ECDA is also expected to form similar committee to identify and monitor trouble makers in the community, and take appropriate action to preserve the peace.

The meeting identified alcoholism and intake of hard drugs among youths as the major cause of clashes between farmers and herdsmen, and between communities in the area.

The meeting, therefore, called on the state government to ban the sale of hard drugs and close down any outlet engaged in the practice.

In their separate speeches, the state chairman of MACABA, Alhaji Muhammad Hussaini, and the ECDA President, Mr James Manza restated their commitment to jointly preach peace to their members.

They agreed that peaceful co-existence between farmers and the herdsmen was necessary in boosting agricultural production and socio economic development.

The two leaders, therefore, urged their members to live peacefully with one another and report anyone engaged in acts that would compromise the peace and stability of the community.

They said that, henceforth, any breaches recorded should be promptly reported to security agencies, traditional and community leaders as well as leadership of the associations, for amicable settlement.

Earlier, Mr Akolo Success-Ahmed, the Chairman, Interim Management Committee of the local government, urged farmers and herdsmen to embrace dialogue in settling their differences.

“As a politician and a stakeholder, my role is to preach peace, unity and to advise my subjects and others Nigerians to live in peace and tolerate one another irrespective of ethnic, religion and political affiliation for the overall development of the country.

“Because no nation or society can develop in an atmosphere of rancour and confusion.

“The security challenges facing some parts of the country had affected our lives and socio-economic development of the country negatively.

“It is in view of this, I want to call on all of us, especially the farmers and herdsmen, not to take the law in to their hand but to embrace dialogue and report their grievances to the appropriate authority in order to fast track development in the state and the country at large.

“Violence can only do more harm than good to a society, hence the need for Nigerians especially the farmers and herdsmen to see dialogue as the best conflict resolution mechanism, so as to boost food production and achieve speedy development in the society.”(NAN)

By Shame Makoshori

A study commissioned by the Confederation of Zimbabwe Retailers (CZR) has revealed that several goods recently removed from the general import licence have found their way into the informal market.

Under the controversial Statutory Instrument (SI) 64 of 2016 introduced in March, the Ministry of Industry and Commerce banned the import of about 100 products into Zimbabwe.

Government said its intervention was meant to protect domestic industries, which have been failing to stand competition from cheaper and higher quality imports.

Products that have been removed from the open general import licence include fertilisers, plastic pipes, wheel barrows, roofing frameworks, tinned fruits and vegetables, dairy products, furniture, coffee creamers and petroleum jellies.

Previously, government had gazetted a ban on the importation of batteries, candles, floor polish, tobacco twines, second-hand clothing, blankets, 23 pharmaceutical products, milk, potatoes, onions, biscuits, sugar, poultry, meat products and yeast.

CZR president, Denford Mutashu, said the lobby group had carried out extensive investigations in Harare, where it found that imported products had flooded tuck shops.

These are mostly informal retailers, who receive supplies from informal cross border traders.

He said he feared this would continue to undermine the objectives of the import ban that has triggered revulsion by manufacturers in South Africa and Zambia, whose firms were benefitting by exporting into Zimbabwe.

Domestically, SI 64 has also not been well received by informal cross border traders who import goods from other countries for resale in Zimbabwe.

“We carried out an investigation and found that foreign products are still finding their way into the country. All banned products are in the market,” Mutashu said.

A survey by C&M also indicated that there were some lines of imported beans and candles on the domestic market.

Imported tinned beef is also on the market.

While Mutashu said the CZR was still investigating the case, there was potential that huge quantities of imports were being shipped into the country illegally through porous borders.

There are high levels of corruption at the country’s border posts, and officials from the Zimbabwe Revenue Authority have been arrested for facilitating illegal imports and the evasion of duty payments.

Mutashu spoke as several reports by government and the Confederation of Zimbabwe Industries showed that consumption of domestic products had improved.

Last week, Reserve Bank of Zimbabwe governor, John Mangudya told C&M that several companies in the manufacturing sector had started registering growth since SI 64 was introduced.

“If you look at Hunyani, it is almost at 100 percent capacity utilisation because of these measures,” Mangudya said.

“If you look at Proplastics, their order book has improved. We are saying production, production, production,” he said.

A new report by the Zimbabwe National Statistics Agency appeared to indicate that despite the reported improvements, importation of goods remained high in the country in August this year, compared to exports.

The report indicated that imports increased by 13 percent to US$444 million during the review period, against exports of US$203 million.

From January to August, Zimbabwe imported goods worth US$3,3 billion.

Exports worth US$1,5 billion were shipped, resulting in a US$1,8 billion trade deficit.

EFF MP Floyd Shivambu has told the SABC board in Parliament that the time for games is over, and that acting titles for group executives, like former acting COO Hlaudi Motsoeneng, “must fall”.

The SABC board appeared before the portfolio committee on communications on Wednesday to present on its progress in implementing the Public Protector’s report into governance issues at the broadcaster.

Board chairperson Professor Mbulaheni Maguvhe presented a short speech to the committee, which most MPs criticised it for its length, when it came time for questions. Maghuve told the committee that the board felt it unfair to preclude Motsoeneng from another position, while his disciplinary proceedings had not concluded, and earlier processes had found him not guilty.After being ordered by the Supreme Court of Appeal to follow through with Motsoeneng’s removal as acting COO, Maghuve said that the law did not permit them to appoint him in a lesser position.SABC directors reviewed the options, he said, and renamed an existing position, GE for Stakeholders, to GE for Corporate Affairs, to suit his “competency” level.He also said there were no further implications of the SCA’s ruling, nor Icasa’s ruling that the broadcaster reverse a decision to no longer show footage of the destruction of property during violent protests.

‘Clumsy board, lousy presentation’

ANC MPs Rembuluwani Tseli and Mziwamadoda Kalako led the charge, reminding the board about its duties to obey the Public Protector’s remedial findings.

But it was Shivambu who had the most colourful things to say about the state of affairs at the SABC.

“We must not tiptoe around a clumsy board who came here with a lousy presentation. The time of games has come to an end,” he said.

“This is not Generations; acting CEO, acting COO, acting this and that. All these actors must fall.”

He jokingly said the committee was eager to see how things would “pan out” for Motsoeneng this time around, as he had previously claimed to be the “MacGyver” of the SABC. DA MP James Selfe asked the board how the report was ignored without the SABC launching a judicial review of it, which was the only grounds to do so. Selfe said that if Motsoeneng wanted to challenge the Public Protector report in court, he would have to pay for it himself, and the SABC could not foot the bill.

IFP MP Liezl van der Merwe wanted to know how the board came to its decision to grant Motsoeneng a bonus earlier this month. Motsoeneng could be seen smiling as she asked this.Questions continued on Wednesday.

Source: News24

By Alazar Shiferaw

Prime Minister Hailemariam Dessalegn said the Addis Ababa-Djibouti railway would give impetus to the country’s economic transformation. Efforts would be exerted to expand similar railway services to other parts of the country, he added.

Speaking at the inauguration of the Addis Ababa – Djibouti railway Standard Gauge Project at Lebu yesterday, Prime Minister Hailemariam said: “We believe that expanding infrastructural development has a great role in ensuring rapid economic growth and reducing poverty. Without creating modern transport system, it is unthinkable to expand industries and become competitive in the world market.”

The Premier further said that the 758-kms railway is fully working with electric power and the first longest railway line in Africa. It connects Ethiopia and Djibouti in particular and East African countries in general. The line supports the country’s carbon free economy development.

Hailemariam further said that the line transports the country’s import and export commodities within a short time with less expenditure and enhance its global competitiveness. It has a great role in accelerating the development of the manufacturing industry as well, he said.

Apart from strengthening the two country’s historical relations, the railway will have a great role in steeping up the two countries’ all round cooperation, the Premier.

Djiboutian President Ismail Omar Guelleh on his par said: ” I am particularly proud to be here to witness the historic link between our two countries. We have gathered here to revive and transform the railway for it means much both for our peoples and economies.”

The President further said that the electrical train will take only seven hours to transport goods and people between our two capitals. ” Our peoples joined forces to build this railway and make it a new phase of our relationship.”

Commending the contribution of actors involved in the project, the President said: “The railway is vehicle for our economic and social integration and model for the new face of Africa. It is the first and foremost celebration of the abilities of the two countries’ working together and overcoming barriers to develop infrastructure in our countries.”

Chinese President Special Envoy and Chairman of the National Development and Reform Commission Xu Shaoshi said the railway will be the first and the longest electrical railway in the African continent.

The inauguration of the railway is an important milestone in the development history of Ethiopia and Djibouti. It also further strengthens relations among the three countries and represents Africa-China cooperation.

The Chairman said: ” It is a railway of of friendship in the 21st century and will create favorable conditions for investment.”

 

By Solomon Arinaitwe

Parliament — Parliament yesterday resolved to institute an investigation into companies involved in the lucrative but controversial export of labour to the Middle East on the backdrop of persistent complaints of Ugandan migrant workers being brutalised.

Daily Monitor this week published a list of 58 companies involved in the controversial business, indicating that firms owned by a senior military officer and members of the First Family are among the top labour exporters.

The probe follows countless harrowing tales of Ugandan migrant workers exported to the Middle East that compelled MPs to demand the Gender ministry to table a list of companies involved and their directors.

MPs argued that the government has been reluctant to crack the whip on unscrupulous labour exporting firms because they are owned by well-connected individuals within the government.

Yesterday, deputy Speaker of Parliament Jacob Oulanyah tasked the Parliamentary Committee on Gender to establish the nature of the licensing regime for companies involved in labour export as well as ascertain the circumstances under which they continue to export labour despite the moratorium on the export of labour

“The Committee will also investigate allegations of abuse of Ugandans exported to the Middle-East, “Mr Oulanyah said.

Despite the fact that the government slapped a moratorium on export of labour to the Middle East, many companies still take advantage of the high youth unemployment to lure Ugandans with promises of well-paying jobs.

Yesterday, State Minister for Labour Herbert Kabafunzaki lauded the investigation and revealed that a team from the Gender ministry will be travelling to Middle East to start investigations.

“We are travelling to the Middle East this week to sign bilateral agreements and agree on the conditions of workers,” Mr Kabafunzaki said.

The minister is expected to table a list of 58 labour exporters to the committee.

 

THE anti-corruption commission should investigate the appointment of President Robert Mugabe’s son-in-law, Simba Chikore, to lead the troubled national airliner Air Zimbabwe, an opposition party has said.

Bona’s husband, who is a pilot, was this week named Chief Operations Officer at Air Zimbabwe, making him the second in-charge at the struggling airliner.

The appointment outraged opposition parties and ordinary Zimbabweans amid concerns that Mugabe’s son-in-law was not qualified for the job.

In a statement Thursday, Welshman Ncube’s MDC party said they “could see President Robert Mugabe’s hand in the appointment of Bona’s husband”.

“Everyone linked to this corrupt appointment should be arrested,” said the party’s national spokesman Kurauone Chihwayi.

“The Air Zimbabwe board should further explain in detail the circumstances that led to the arrest, suspension, dismissal and incarceration of Peter Chikumba, Grace Pfumbidzai and many other executives since there is now reasonable suspicion that the board is on a mission to clear the way for Zanu PF-linked administrators and pilots at Air Zimbabwe.”

Chihwayi said Chikore’s professional qualifications should be made public if he was indeed fit for the job.

“The MDC is demanding the immediate release of Simba Chikore’s educational qualifications and employment history for public perusal with immediate effect and this will clear allegations of nepotism and corruption being raised by the nation.,” he said.

“We view the appointment of the Chief Executive Officer and that of the Chief Operating Officer for Air Zimbabwe as evidence of rampant corruption in the Robert Mugabe administration.”

He added: “We have noted with great concern the involvement of the President’s office in the appointment of Mugabe relatives to key positions in state controlled enterprises like Air Zimbabwe.”

Nigeria and other countries are to enjoy zero interest rates on all concessional facilities of the International Monetary Fund (IMF) until 2018.

IMF’s Managing Director, Ms Christine Lagarde, disclosed this yesterday at the ongoing IMF/ World Bank 2016 General Meeting in Washington D.C. with the theme: “We can end poverty together, global problem and global solutions”.

She said that after the duration (2018), IMF would maintain low interest rates around the world.

The Minister of Finance, Mrs Kemi Adeosun has been negotiating to borrow from multilateral institutions like the IMF and the World Bank to fund capital projects in the country.

Adeosun reiterated the country’s plan to get cheap loans to bridge the nation’s infrastructure deficit in critical sectors.

So now, Nigeria alongside others with economic challenges can access long time concessionary facilities from the IMF at zero interest rate. (NAN)