Nairobi — President Uhuru Kenyatta has finally signed into law the Banking (Amendment) Bill, 2015 aimed at regulating interest rates charged by banks.
 

He said since receiving the Bill, he had consulted widely and it was clear to him from those consultations that Kenyans were disappointed and frustrated with the lack of sensitivity by the financial sector, particularly banks.

"These frustrations are centred around the cost of credit and the applicable interest rates on their hard-earned deposits. I share these concerns," President Kenyatta said.

The eagerly awaited move is bound to cause a stir in the sector considering efforts by banks to have interest rates determined by the market.

President Kenyatta however recalled that this was the third time that the National Assembly was attempting to reduce interest rates to affordable levels.

"In the previous two instances, dialogue and promises of change prevailed and banks avoided the introduction of these caps. Banks failed to live up to their promises and interest rates have continued to increase along with the spreads between the deposit and lending rates."

He said after taking all these considerations in account: "I have assented to the Bill as presented to me. We will implement the new law, noting the difficulties that it would present, which include credit becoming unavailable to some consumers and the possible emergence of unregulated informal and exploitative lending mechanisms."

He says despite having one of the most efficient and effective financial markets, Kenya has one of the highest returns-on-equity for banks in the African continent.

Banks he noted, need to do more to reduce the cost of credit and ensure that the benefits of the vibrant financial sector are also felt by their customers.

The Bill was presented to the Head of State after it was passed by the National Assembly on July 28, 2016.

President Kenyatta said his government would accelerate other reform measures necessary to reduce the cost of credit and thereby create the opportunities that will move the economy to greater prosperity.

"We also reiterate our commitment to free market policies in driving sustainable economic growth, to which we owe much of our success."

Government has warned foreign envoys against trying to lecture Zimbabwe on human rights saying they needed to deal with the logs in their eyes first. Responding to statements issued last week by the United States and Canadian embassies to Zimbabwe on recent violent demonstrations by the opposition, Information, Media and Broadcasting Services Minister Dr Christopher Mushohwe yesterday said the ambassadors betrayed clear hostility towards the Government of Zimbabwe, and a sinister partiality for the opposition.He said both embassies were not in Zimbabwe to involve themselves in the domestic affairs of Zimbabwe, let alone to interfere with, or take sides in local politics or even to give themselves an imperious role of judging Zimbabwean politics.

“Zimbabwe is a sovereign state which, is equal to any other in the world, including the US and Canada, whatever illusions ambassadors of those two countries here may harbour in their minds. Beyond diplomatic relations as regulated by the Vienna Conventions, there is nothing else that gives governments of those two countries or their emissaries here any special claim to our politics, or a judgmental role on occurrences

“Their statements last week were not only unacceptably repugnant, but vainly suggested their governments play father figure to a sovereign state, as if Zimbabwe is under some kind of joint US-Canadian trusteeship. For the record, Zimbabwe gained its Independence in 1980 following a national liberation struggle which never enjoyed an iota of support from the West,” he said.

Dr Mushohwe said Zimbabwe, being a sovereign state, was equal to any other in the world, and was free to pursue its own national policies as supported by its democratically elected sitting Government.

He said Zimbabwe took no orders from any foreign state – big or small, far or near – in the pursuit of its politics, policies and decisions.

“The US government, with more than a decade of a raft of punitive measures it took to unilaterally sanction Zimbabwe, is the least qualified to lecture Zimbabwe on welfare issues relating to Zimbabwean citizens. Through those illegal sanctions, the US government has undermined the Zimbabwean economy, thereby bringing untold suffering to the People of Zimbabwe.

“The US thus should never be allowed to blame the Zimbabwe Government for effects of its spiteful policies here. The least the US Ambassador Harry Thomas here can do, is to keep his mouth shut, instead of compounding the crimes of his government against the people of Zimbabwe by parading false piety,” he said.

Dr Mushohwe said Western governments, including those of the US and Canada, did not support the constitution-making process when it was underway but were hostile to it.

“Today, they cannot remind us of provisions of the same law they opposed only yesterday or stand as watchdogs over its daily observance here. In any case, before both ambassadors issue out their condescendingly sick statements on local politics, and on the upholding of human rights here, let them pause a while to examine their home environments where rights of men and women of colour, and rights of indigenous populations, are daily wantonly trampled upon by their own governments, with absolutely no recourse to countless victims,” he said.

Dr Mushohwe said hardly a month ago, more and more African-Americans were shot and killed in cold blood by the US police but the ambassador who was himself an African-African American remained silent on the issue.

“Why did he not write home to remind his own government on the need to uphold the rights of fellow blacks back home? Or resign in protest to vindicate his claim to commitment to human rights? Such rank hypocrisy is not only sickening but, for the American Ambassador, amounts to complicity with his Government in a war against his own kind. Let not those with logs in their eyes seek to cure imaginary specks in African eyes,” he said.

Last week, the United States Embassy, Canada and Australia issued separate statements supporting the protests and condemning law enforcements agents for maintaining peace and order by arresting illegal protesters.

“The United States is troubled by the economic policies and financial strains that have prompted numerous recent protests in Zimbabwe and we join many Zimbabweans in their deep concern over reports of violence during some of the protests,” reads statement released by the US embassy in Harare yesterday.

The US embassy also said it was “monitoring recent threats to crackdown on activists using social media”.

On the other hand, the Canadian embassy said: “The Embassy of Canada to Zimbabwe is increasingly concerned with reports of violence and human rights violations in response to public protest.

“The Embassy of Canada calls for calm and stresses the importance of peaceful dialogue. The Embassy of Canada reiterates its call on all stakeholders to respect the Constitution of Zimbabwe, in particular, the freedom to peacefully demonstrate, the right to personal liberty, the right to personal security and the rights of arrested and detained persons,,” read the statement.

Information, Media and Broadcasting Services permanent secretary and Presidential spokesperson, Mr George Charamba warned opposition elements that Government would come hard on protesters who seek to destroy the country.

Speaking to ZBCTv, Mr Charamba said Government would not allow another demonstration that the opposition groups were planning for Friday.

“Let them test the authority of the State. Let them test the authority of the State and then they will realise that until and unless you keep within the lawful confines of the law, the full might of the State will visit you.

“Of course, they have crossed the line. This whole nonsense of trying to create a Zimbabwe which is a burning country will not be repeated. We needed what happened last Friday and Wednesday because if we had moved and moved decisively, ahead of such demonstration of hooliganism, then there would have been an outcry to say the Zimbabwean Government is trampling on human rights. So they got their first and last chance,” said Mr Charamba.

Sumbe — The Simgerf Agro-Pecuária farm, situated in Sumbe, central Cuanza Sul province, has an output of 4,500 eggs a day, as a result of the investment made in 2014 that involved 5,120 laying hens.

Owned by Francisco Figueiredo Júnior, the undertaking was established in 2012, but only the following year did it start poultry industry.

With an initial Akz 40 million investment granted by the Banco de Comércio e Indústria (BCI), the farmer built the aviary and purchased 2,120 hens and set up the feed plant.

Right now, the third aisle has been built covering 500 square metres to accommodate 54,000 new hens. Another 18,000 hens are being raised that will bring the price of egg down.

There are also 5,000 broiler chickens in preparation.

The farm is awaiting a slaughterhouse for 150 chickens an hour.

Feed production

The project follows the setting up of a feed plant expected to stimulate egg production.

With a capacity to produce three tons per hour, the plant is fed with maize grown on a 120 hectares field.

The birds consume an average 900 kilograms of feed per day.

About 60 percent of the production is to cater for the local market, being the remainder sent to the markets of Benguela, Huíla and Cunene.

The undertaken employs eight workers with ages ranging from 18 to 24 years and one veterinary that secures the technical assistance. It cover an area of 1000 hectares, 100 of which for poultry.

Western Cape businesses invited to enter entrepreneurship awards

Western Cape businesses have two weeks left to enter the Premier's Entrepreneurship Recognition Awards (PERA).

Now in its fourth year, the PERA awards seek to celebrate entrepreneurs who are contributing to job creation and growth. Entries close on 5 September.

Premier Helen Zille and Alan Winde, MEC of Economic Opportunities, last month launched entries for the 2016 PERA awards.

PERA is an initiative of the Department of Economic Development and Tourism. Over 700 entrepreneurs have entered the awards since 2013.

MEC Winde encouraged entrepreneurs to enter. "Through the efforts of our innovative and dedicated entrepreneurs, employment is created for over 500 000 people. PERA seeks to celebrate their achievements and to inspire other potential businesspeople to grow and start businesses."

The initiative is being co-sponsored by Absa.

Doug Walker, Managing Executive for Absa Western Cape, said: "At Absa we recognise the vital role SME's play in our economy in generating economic growth and job creation – we are delighted to be a partner of the PERA awards. We see the awards as an important platform to showcase and create a culture of entrepreneurship in the Western Cape.

"We also recognise the importance of SMEs as an engine of economic growth and we are committed to partnering with other stakeholders to develop sustainable SMEs. Our support for these awards is in line with our Shared Growth vision, through which we aim to use our assets and resources to grow and develop the societies where we operate while growing our business."

Absa's Shared Growth strategy focuses on three priority areas, namely: education and skills, financial inclusion and enterprise development. Walker said the concept of Shared Growth recognises that: "As we grow, society prospers, and as society prospers, we grow. This theme of reciprocity is critical if we are to succeed."

There are 11 categories and the winner in each category will receive R100 000. The second place and third place entrepreneurs will received R50 000 and R25 000.

The overall winner will receive R100 000 prize money to grow their business and an overseas trip to a conference or trade fair.

There will be 3 finalists per category; one winner will be selected per category from the 3 finalists, resulting in 11 winners. An overall winner will be selected from the 11 winners.

The overall winner will be judged on the ability of the business to sustain/create jobs and to increase its turnover in the medium to long-term.

Emerging Business: A business in its initial growth phase operating in the Western Cape for 12 months or longer, but not longer than 36 months;

Established Business: Operating in the Western Cape for longer than 36 months with an annual turnover of more than R10m and less than R50m;

Social Enterprise: Any revenue generating entity operating in the Western Cape for 12 months or longer, which aims to address a social challenge or need;

Innovative Student Business Idea: Student defined in a narrow sense that is any full time student at a Western Cape tertiary institution including TVET colleges. This refers to an innovative solution (idea or concept) to a new problem or service. This category will not be taken into consideration for the overall winner;

Most Innovative Business: Operating in the Western Cape for 12 months or longer. This refers to an innovative solution or approach to an existing service or product;

Job-creating Business: Operating in the Western Cape for 36 months or longer with an annual turnover of less than R10m and an indication of the number of permanent employees appointed over the last financial year;

Emerging Rural Business: A business in its initial growth phase based in areas outside of the Cape Metropolitan area and operating in the Western Cape for 12 months or longer, but not longer than 36 months. The business should have an annual turnover of more than R500 000;

Emerging Tourism Business: A business in its initial growth phase operating in the Western Cape for 12 months or longer, but not longer than 36 months;

Emerging Agri-Processing Business: A business in its initial growth phase operating in the Western Cape for 12 months or longer, but not longer than 36 months;

School Business Idea: Any high school in the Western Cape (Grade 8 to 12 learners or equivalent). This category will not be taken into consideration for the election of the overall winner. Learners could also apply independently (prize money to be paid to the applicant); and

Business with Global Reach: Operating in the Western Cape for 36 months or longer with a minimum turnover of R10m and less than R50m. The operations of this business should have a global reach.

The overall winner will be judged on the ability of the business to sustain/create jobs and to increase its turnover in the medium to long-term.

Issued by: Western Cape Agriculture and Economic Development

A salt manufacturing industry established by Ethiopian and Turkish investors has become operational at a cost of 300 million Br in Semera, Afar regional state. The total area of the company is 50 thousands square metres.

Currently, the manufacturing company has the capacity to create more than 300 job opportunities. This figure will reach 8,000 when the company becomes operational at its full capacity.

The company aims to provide iodised salt to local chemical industries, as well as meeting the local demand and bringing significant improvements to the export market.

In terms of production, the factory has capacity to provide 1,000tn of iodised salt and up to 140,000tn of salt for industries on a daily basis.

The Afar region is the major supplier of salt in Ethiopia, specifically Afdera, producing three-quarters of the country's total.

Many studies indicate that more than 250,000tn of salt is consumed annually in Ethiopia.

Embattled Finance Minister Pravin Gordhan allegedly told Treasury staff at a meeting on Friday that the Guptas were attacking him because of the work the department was doing.

News24 understands that Gordhan also explained to staff that the Hawks had a faulty legal reading of the charges against him and there was no legal basis for their investigation.

He also allegedly said that what was currently happening in the country was a battle for “Mandela values” versus the values of those who steal.

Treasury spokesperson Phumza Macanda did not comment on the meeting, referring News24 to the media statement it released on Wednesday.

Gordhan’s staff meeting comes days after it emerged that the Hawks had asked Gordhan, his former deputy at Sars Ivan Pillay, and four other senior former Sars officials to provide warning statements.

A warning statement is a precursor to a suspect being charged criminally.

Gordhan, Pillay, former Sars commissioner Oupa Magashula, former head of risk Pete Richer and Johann van Loggerenberg, former head of the Sars investigations unit called the National Research Group, were summoned to appear before the Hawks on Thursday morning.

The Western Cape Hawks had already obtained a warning statement from Van Loggerenberg’s predecessor, Andries “Skollie” Janse van Rensburg.

The unit wanted to question Gordhan regarding his alleged contravention of the National Strategic Intelligence Act and Public Finance Management Act. These related to his approval of former Sars commissioner Pillay’s early retirement in 2010 and to the alleged creation of an intelligence unit within Sars.

In a statement on Wednesday, Gordhan said he had taken legal advice and had no obligation to present himself to the Hawks. He said he should be left to do his job in a difficult economic environment.

Gordhan was Sars commissioner between 1999 and 2009. During this period a so-called “rogue unit” was allegedly established. It was allegedly involved in illegal intelligence gathering.

Pillay and Van Loggerenberg met with the Hawks amid support from civil society who were concerned the investigation was really a battle for control of the country’s purse strings.

The lawyer representing them said his clients will follow due process in their case with the Hawks.

“Our clients wish to thank civil society for their support. Our clients consider the allegations to be baseless and our clients will be following due process in accordance with their rights. That is all we are going to answer now,” lawyer Robert Levin told reporters after meeting with Hawks investigators.

Members of Section27, Right2Know, Freedom Under Law, the Helen Suzman Foundation and Advocate George Bizos gathered outside the offices of the Hawks in Pretoria to pledge their support. They accused the Hawks of going on a witch hunt fuelled by baseless accusations.

Van Loggerenberg thanked the people of South Africa for their support but declined to comment on the matter.

“The support is wonderful and thanks very much. Not only to the people who came but to the people who continuously send us messages. I have received thousands of messages since yesterday. I don’t know why the meeting took so long, you should direct those questions to the Hawks,” he said.

President Jacob Zuma meanwhile said that he had full confidence in Gordhan but he did not have the power to stop any investigations into any individuals.

A Cape Town duo is set to become one of the first bands in the world to produce a song in collaboration with a supercomputer.

The electronica outfit Original Swimming Party (OSP) is an audio-visual group from Cape Town who define their music style as a mash-up of Western electronic, with African influences from genres like kwaito and house.

Recently, OSP began working with supercomputer Watson Beat, which is based in Austin, Texas. The band sends through chords of an original song with a “mood”, and the supercomputer then uses the same notes to create an entirely new piece according to the mood.

OSP member Tom Glendinning, who produces his work from music software Ableton Live, said the group had collaborated with international artists before, and working with the supercomputer felt no different.

“It has been a very interesting process and scarily similar to working with live artists,” Glendinning told Fin24.

“Watson is meant to be artificially intelligent and emulate human intelligence. It has been like working with any other artist,” he added.

OSP sends Watson a midi file, which they explain to be music notation that a computer can understand.

Through algorithms the supercomputer listens and learns how the music written.

When a mood has been selected, Watson will send back a midi file with its own composition according to the music notes sent in the midi file by OSP.

OSP plan to work with the supercomputer to produce a world-first collaboration between artists and a supercomputer.

“The beauty of Watson is that the more complex notes we send to Watson, the more it learns. Right now it’s like a high school student, with no style of its own,” Glendinning said.

“Part of our project is to send more complex notes back and forth to Watson, to produce our own song,” he added.

Lagos Chamber of Commerce and Industry, LCCI, yesterday, blamed the current lull in Nigerian economy on inability to regain the confidence of investors, both local and foreign, which had resulted in uncertainty in foreign exchange market.

Director General, LCCI, Muda Lawal, who stated this in his comment on the state of the economy, said: “Regrettably, the instability and inconsistency in the foreign exchange management policy have been complicating matters.

“The economy has a major structural defect of being heavily import-dependent. This cannot be fixed in the short term. Therefore, the shocks arising from the collapse of oil price and the corresponding depreciation in exchange rate of the naira, were inevitable. But the policy responses could make a whole lot of difference in the profundity of the impacts of these shocks on the economy and the citizens.” He said historically, autonomous supply of foreign exchange had been higher than the Central Bank of Nigeria, CBN, supply, adding: “This has virtually dried up because of the collapse of investors’ confidence. Of course, the plunge in crude oil price was a major causal factor. But perhaps the bigger issue is the unstable and inconsistent foreign exchange policy which has continued to create uncertainty in the forex market, thus deepening the liquidity problems.

“For an economy that is in fragile mode and for an economy that is highly exchange rate sensitive, policy actions and pronouncements that could impact the market should be done with utmost caution and care.

“This is imperative to avoid unintended consequences which may hurt the economy in very profound ways. Such is the recent suspension of nine banks from the forex market. These are shocks that the economy can ill afford at this time.

“It is right to penalize banks for proven infractions, but this should be done in a way to minimize collateral effects on investors and the larger economy, given the high sensitivity of the economy to developments in the foreign exchange market.

“This is even more so at a time when the economy is grappling with a major confidence issue in the forex market. There should be more creative and less disruptive ways of imposing such sanctions.

“Many innocent investors and citizens are already bearing the brunt of this action given the unprecedented hike in naira exchange rate. Ongoing forex transactions in the affected banks have been stalled with serious consequences for investors.” he emphasized.

Continuing, he said “The second major policy development that could pose a risk to the stability and transparency of the foreign exchange market is the recent policy on sectoral allocation of foreign exchange. The CBN circular did not indicate any Code to properly define what would qualify as raw materials and machineries. The first concern will be that of definition. The result of this will be discretionary interpretation by the banks as what qualifies as raw materials and machineries.

The second major concern is the potential crowding out of other sectors in the forex market. Sectors outside the manufacturing sector account for over 85 per cent of the country’s GDP and jobs in the economy. They all have varying import contents in their operations. Therefore, if a minimum of 60 per cent of all forex allocation goes to manufacturing for raw materials and machineries; what happens to other sectors? Currently petroleum products imports are priority and could take another 25 per cent of foreign exchange. This implies that the rest of the sectors would settle for the balance of 15 per cent. This is clearly not a sustainable framework.

Lawal, stressed that fiscal policy measures are better suited to address sectoral imbalances than monetary policy. According to him ” Such policy tools include import tariffs, taxation and other incentives. Above all, there is need to upscale infrastructure investments very urgently. These are the more effective ways to fix the structural problems of the economy than monetary policy. What is key for monetary authorities is to ensure that financial markets are efficient and transparent; and to ensure that there is discipline among players.

“This is the time to seek quick wins. One of the quick wins is to review current trade policy measures in order to reduce the pressure of cost on investors and citizens. The exchange rate depreciation has an inherent structural correction effects on the economy. It naturally rewards inward looking initiatives and resource based enterprises. It is too much of a shock on the economy to combine high import duty regimes with a weak and rapidly depreciating currency. Conversion of import values at current exchange rates for purposes of computation of import duty and other port charges have escalated costs beyond measure and had paralyzed many businesses. Ensuring a balance between the interests of investors, producers, consumers and the welfare of citizens is a strategic imperative at this time” the LCCI director general stated.

A motorist was slapped with a R18 000 speeding fine for clocking 220km/h, n a 120km/h zone along the South Coast, the KwaZulu-Natal department of transport said on Monday.

Transport MEC Mxolisi Kaunda in a statement commended the Park Rynie's Department of Transport's Road Traffic Inspectorate team for arresting Ivan Botha, 28, on August 14, for speeding in a Golf 6 GTI at 220km/h on the N2 national route.

Kaunda said in a statement that Botha had been held in custody at the Scottburgh police station.

"The Scottburgh's magistrate today [Monday] handed down a fine of R18 000," said Kaunda.

"[This] should be a great lesson to all who endanger our lives. Speedsters are like murderers, because at any moment their actions could lead to devastating consequences, including death and maiming of other road users.

"More so, we commend the great work of the department's Road Traffic Inspectorate team in the Park Rynie station, who always catch speedsters travelling to the South Coast. It is high time all road users, especially motorists, started taking our call for road safety seriously, and realise that it's about life and death," said Kaunda.