Year: 2016

Botswana: Slow Implementation Worries Agric Ministry

Maun — Ngamiland farmers have been urged to take the individual animal identification initiative seriously as it is the key to securing beef markets and control animal diseases.

The director of veterinary services, Dr Letlhogile Modisa told farmers during a meeting that he was concerned that implementation of the initiative in the district was slow.

The initiative was meant to improve identification of cattle, capture all vaccinated cattle and also for easy traceability of cattle owners. The system ensured that no animal remained anonymous and that the health condition and performances of each individual animal could be immediately tracked and managed on time.

Dr Modisa raised a concern that 150 000 ear tags had been collected and only 28 000 had been used. He informed farmers that failure to ear tag their cattle would frustrate government efforts to secure beef markets and urged all to stand up and ensure smooth implementation of the initiative.

He further stated that in terms of marketing, countries emphasise safety measures and individual animal identification as the major tool to restore trust. In addition, he said individual animal identification was the best tool to control animal diseases as the ear tag has a device that capture vaccinated animals.

“Countries prefer traceability and they stated that if the animals stayed six months without disease outbreak, they could accept their meat. This is the answer to our cattle in the district and it is a guarantee to access any market,” he added.

Dr Modisa called farmers to augment government efforts to ensure their cattle are sold to improve their livelihoods adding that by so doing, they would be taking control of disease to another level and also access many markets.

He informed farmers that before the recent outbreak of Foot and Mouth Disease in the district, they were about to submit a dossier to South Africa as they had shown interest on commodity base trade.

For their part, farmers admitted that they had not ear-tagged because the system that produced ear-tags was slow hence the slow implementation. Some revealed that they had long applied for ear tags since February this year, but they are still waiting to collect them.

The chairperson of Hainaveldt Farmers Association, Mr Kebitsang Ledimo said the system was failing them because of its slowness adding that some ear tagging agents got demoralised and quit because they stay long without working despite low wages.

He said the ministry could have engaged farmers to solicit ideas before the implementation of the initiative to yield expected results.

Mr Simon Bojosi stated that lack of commitment by some farmers also contributed to poor implementation of the programme. He said some farmers put the burden on their workers as they never visit their farms to check if things were done properly.

South Africa: Client Data Not Shared Among Schemes – Momentum

Momentum Health says client data is not shared with the rest of its insurance business to promote products and services of the group.

In an emailed response to Fin24, Momentum senior health actuary Hannes Boshoff gave the assurance that the scheme’s administrator “has never and will never” share any scheme data.

This follows a report in Business Day on Thursday, in which the Council for Medical Schemes claimed that some administrators are using their access to consumers to sell them services from other companies within their group. Others also implicated include Discovery Health Medical Scheme, Discovery Health and Liberty Health.

“Where the scheme sends communication regarding benefit changes at year end, the administrator may include information about other non-medical aid benefits, but only insofar as it serves to enhance a client’s overall healthcare experience,” explained Boshoff. “It will also never be positioned as compulsory or in any way part of the medical aid.”

Business Day reported that the administrators will have 21 days to comment on the draft undesirable business practice declaration, which was published in the Government Gazette on August 15.

Boshoff explained that the administrator would assess the impact of the intended declaration before making comment. “Our only objective is to ensure members’ best interests are considered,” he stated.

Discovery plans to submit comments to the Council for Medical Schemes regarding the declaration, and that Discovery Health Medical Scheme and Discovery Health are not in a position to comment publicly.

The Council for Medical Schemes could not be reached for comment.

Namibia: 23 Cabin Crew Vacancies Attract 3 000 Applications

Windhoek — Not knowing how to swim has for many years prevented some young people from applying for employment as an Air Namibia cabin crewmember, because swimming well is actually a requirement for the job.

But the national airline says this is now something of the past, as more and more people know how to swim these days, which is one of the reasons the airline recently received approximately 3 000 applications to fill 23 vacancies for the latest intake of cabin crew members.

Of course unemployment, particularly amongst the youth, is also a major contributor to the large number of applications received.

Air Namibia’s latest cabin crew recruits completed their eight weeks of intensive training on Friday, August 12, and started with their observation flights the very next day.

Besides testing their swimming abilities, part of the evaluation process included an intensive screening process, where amongst others applicants’ body mass index (BMI) and height measurements were recorded.

The required BMI for women is between 19 and 24 and between 20 and 26 for men. The required length for both males and females is 1.60 m.

According to Air Namibia spokesperson Paul Nakawa the new intake is part of the airline’s strategy, as per the Harambee Prosperity Plan, to ensure no one is left out.

Nakawa noted that the new intake represents Namibia’s cultural diversity and background.

“Time has evolved and young people are keen to know how to swim. This skill has for many years prevented many Namibians, who aspired to be cabin crew to qualify. “It is an industry requirement and we ensure whoever wants to be a cabin crew knows how to swim,” he said.

“Air Namibia will work closely with the Ministry of Education, especially the National Institute for Educational Development (NIED), to ensure that swimming is part of the vocational subjects taught at all schools in Namibia.

“We will further ensure that topics on the aviation industry are incorporated in the guidance and life-skills textbooks to introduce the learners, who want to pursue their studies in aviation later in life.

“Knowledge is power and it’s only when such information is disseminated to learners that they will make informed decisions on their career plans or choices.

“This is the beginning of a long journey ahead and management wants to ensure that opportunities are available to all who meet the industry requirements,” Nakawa noted.

Zambia’s Political Unity Put to the Test By Need for Fiscal Discipline

Zambia’s close-run presidential election means President Edgar Lungu must now balance uniting the nation with the spending cuts needed to stay competitive.

A closely contested and unpredictable election saw Zambia’s incumbent President Edgar Lungu of the Patriotic Front (PF) emerge victorious – but with just 50.35 per cent of the vote, protesters clashing with the police in the streets, and support mostly concentrated in the north and east of the country, much needs to be done to unite a politically divided nation.

Lungu is now charged with creating that unity while also steering Zambia from its current economic downturn; this will require political will and careful control of government spending.

China’s economic downturn and the subsequent fall in copper prices greatly impacted Zambia, where copper accounts for over three-quarters of export earnings and 16 per cent of GDP. Its copper-belt region has seen thousands of miners made redundant and mining companies reduce output with investors unsettled by falling commodity prices and the political uncertainty.

【Economic woes broader than copper alone】

The decline in copper prices coincided with an energy crisis as reduced rainfall, antiquated machinery and a surge in consumer demand led to more frequent power shortages. The Kariba and Kafue hydroelectric plants cannot fully service demand, forcing government to source emergency power regionally (at an annual cost of US$660m) and its attempt to recoup costs through a 70 per cent increase in power tariffs led to public protests which forced the government to back down.

Zambia’s once buoyant growth has slowed – from 10 per cent at the start of the decade to around three per cent now – but despite this financial squeeze, the PF government has been heavily investing in infrastructure, especially social infrastructure, with 650 clinics, 32 district hospitals, 68 primary schools and more than 100 secondary schools built in the last five years. Hundreds of miles of tarred roads are now in place, with more promised, and the Social Protection Safety Net social welfare scheme has assisted thousands of households.

But this high expenditure has put additional stress on the finances with Zambia’s budget deficit now almost 10 per cent of GDP, spurred by heavy government borrowing. There have been liquidity shortages in Zambia’s banking sector – partly caused by government borrowing crowding out the private sector – servicing international debt is getting more expensive as confidence wobbles, and the currency is in decline. Discussions between Zambia and the IMF on an extended credit facility are ongoing, but a substantive deal will probably have to wait until 2017.

And this spending has not had an immediately transformative effect with almost 60 per cent of Zambia’s population classified as poor, and 42 per cent in absolute poverty. Urban unemployment and underemployment remain prevalent despite a large informal sector, and the PF has been criticised for politicising infrastructure development and being lax on corruption.

【Reasons for optimism in the medium-term】

Despite these problems, and even though copper remains king, there has been economic diversification. Zambia remains a net maize exporter to a drought- blighted region, is a major tourism hub, and is helping drive the regional economic integration process.

It is also ironic that a country which was famous for exporting labour to its southern neighbours is now a destination of choice for professionals in the region. The small but growing middle class in Zambia supports a consumer economy attractive to international investors, and the government must now develop a policy environment that allows domestic businesses to flourish.

In addition, companies that made efficiency savings during the copper ‘crash’ are now well-placed to capitalise if the global price of copper strengthens, and a broad consensus between government and mining multinationals regarding royalties – a toxic issue just a few years ago – will bolster this rebound. Zambia’s strong legal framework and investment guarantee system are competitive advantages and its partnership with the IOM (international Organization for Migration)means Zambia is actively engaging with its global diaspora to help its own development.

Zambia still faces major challenges, most immediately in reducing profligate spending. Popular policies of subsidised fuel and government-underwritten maize pricing will now come under scrutiny, and increased power tariffs may be back on the cards. But changes could generate protest, particularly if the government is perceived to be favouring its supporters.

Opposition leaders, notably the defeated United Party for National Development (UPND) leader Haikande Hichilema, will have a key role to play in uniting the nation and overcoming the political cleavages exposed in both this election, and the snap presidential election of 2015 following the death of former President Michael Sata (which also resulted in a narrow victory for Lunga).

A higher turnout (56 per cent of registered voters, compared with just 32 per cent in 2015) does give Lungu a stronger mandate than he had previously, but he will be expected to deliver on electoral promises of completing infrastructure projects, pursuing agricultural diversification, and job creation – all within a tough economic environment. But, as economic headwinds abate, Zambia should be well placed to retain its status as a regional hotspot for international investment.

Nigeria: Lagos Begins Oil Production As Govt Approves Four Wells

The status of Lagos State as an oil producing state was affirmed by the federal government yesterday with the approval of four oil wells discovered in the state.

It, however, disapproved the state’s ownership of one oil well.

With the development, the federal government will begin the disbursement of the 13 per cent derivation fund to the state, in line with constitution of Nigeria.

The chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed, made this known when he led members of the committee on a visit to the Lagos state governor, Akinwunmi Ambode at the State House, Ikeja.

Mohammed said the committee was in Lagos to verify the crude oil and gas production from Aje oil wells for the purpose of disbursement of the 13 per cent derivation fund to the state.

LEADERSHIP reports that the 13 per cent derivation fund is money paid to oil producing states by the federal government. Akwa Ibom, Rivers, Bayelsa, Delta, Cross River, Edo, Ondo, Imo, and Abia States constitute the oil producing states in the country, with Lagos as the latest to join the league.

He explained that the federal government’s disapproval of the fifth oil well was hinged on the fact that it fell beyond 200 metres isobaths and did not legitimately belong to the state.

The committee chairman further stated that as part of procedure and in pursuant of its constitutional mandate, the commission had set up an Inter-agency Technical Committee which comprised the commission, the Department of Petroleum Resources (DPR), Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje oil wells.

“The technical committee recommended that for the purpose of derivation as spelt out under Section 162 (2) of the 1999 constitution (as amended) as well as the provision of the Allocation of Revenue Act 2004, Aje oil wells 1, 2, 4 and 5 fall within the 200m isobaths and therefore should be attributed to Lagos State.

“As a result, the commission and members of the Inter-agency Committee had to embark on this working visit to conclude the process. Please, note that Aje 3 oil well falls beyond the 200m isobaths and therefore cannot be legitimately attributed to Lagos State,” he said.

According to Mohammed, the commencement of oil production from the Aje oil field by Yinka Folawiyo Petroleum Company Ltd was the first time oil was being produced outside the Niger Delta basin and therefore, of a major significance in diversifying the source of crude oil and gas production in the country.

In his response, Lagos State governor, Mr Ambode, described the visit as historic and one that would go down in the annals of the history of Lagos State.

He noted that the visit was the official step that would take Lagos to that final destination as an oil-producing state.

“We are very glad to receive this delegation. We also want to thank the federal government, especially President Muhammadu Buhari, for making this to happen very promptly. I want to say that this has been the promptest action that has been taken by RMAFC since I have known the commission. I used to be a former accountant general so I had a lot of transactions and relationship with the institution called RMAFC. Within a span of about 60 days of when we wrote our letter, and even before we wrote the letter, this technical committee was actually set up,” he said.

Ambode, who lauded the DPR and the Boundary Commission, said it was significant that the discovery of oil wells in Lagos was going to be the first time oil would be produced outside the Niger Delta.

“It’s significant for Nigeria; it’s significant for Lagos. It means that the whole path to diversification is what we are now witnessing. We would also encourage other states, in terms of other mineral resources, not necessarily to depend on crude oil, whatever it is that can actually allow states to start activating their mineral deposits, it would allow us expand the Internally Generated Revenue.

“It would also give us revenue dependence in a manner that there would be equal growth from all every nook and cranny of Nigeria. One is happy that RMAFC has taken this step and also to say that they should also encourage other states to engage in such activities that would allow them to be able to activate whatever mineral deposit that we have in the various states in conjunction with the federal government, so that we can start to diversify revenue and growth and then create a balanced growth and development for the whole country,” he said.

LEADERSHIP reports that oil prospecting in Lagos was ongoing for 25 years, by Yinka Folawiyo Petroleum Company Limited, before the state officially joined the League of Oil Producing States in Nigeria, in May this year.

According to the Group Managing Director, Tunde Folawiyo, the company spent about $400 million to achieve the feat.

He said the current status of the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility increase to 25,000 to 50,000 barrels per day in the nearest future.

Tanzania: Total Plastics Use Ban Plan By Next Jan Remains – Govt

The government has reiterated that it won’t back down on its decision to ban the use of plastic bags effective January next year.

Owners of plastic bags manufacturing factories have been advised to take steps towards easing production before the deadline and invest in production of alternative bags and plastic waste recycling facilities.

This assertion is contained in an advertisement posted on various media outlets yesterday by the Vice President’s Office.

In April this year, the minister of State in the Vice President’s Office (Union Affairs and Environment), Mr January Makamba, told the National Assembly that the government would impose a total of ban on the use of plastic bags.

“We are warning industries that stern action, including closure will be taken against those who will be caught manufacturing plastic bags,” said the minister.

He said that in instituting the plastics ban plan, the government revisited the 2006 regulations on the production, importation, sale and use of plastic bags which, among other things, disallows the use of bags that are below 30 microns.

According to the advert, the government wants relevant authorities and industries to take steps to ensure that by January next year the production, importation, sale and use of plastic bags in the country ceases.

Plastic bags affect environment by, for instance, blocking sewerage and water drainage infrastructure, causing floods during rain. The bags damage ecosystems and biodiversity due to plastic bags, endangering human health when used for packing food in particular hot food.

Zimbabwe: Zim Wages to Be Paid Partly in Bond Notes – Central Bank Governor

Zimbabwe’s central bank chief has admitted that people will be paid partly in bond notes, despite earlier claims the notes were to be an incentive for exporters.

“If you are getting a $400 salary, you will still get $400 in United States dollars, bond notes, rand or euros. If you don’t want them then you use plastic money,” central bank chief John Mangudya said in quotes carried by the official Herald daily.

The bond notes are likely to be introduced around October. They are supposed to be at 1:1 parity with the US dollar.

Mangudya’s announcement in May that bond notes were to be introduced followed months of cash shortages.

His claim that they would be backed by a $200m loan form the African Export-Import Bank has not reassured Zimbabweans who fear a return to the overprinting of the pre-2008 hyper-inflation era.

An opposition Movement for Democratic Change (MDC) official told News24 earlier this week that the authorities could be stacking up as much as $2.5bn in bond notes, but that figure will be hotly contested by the central bank.

Nigeria to Establish U.S.$25 Billion Infrastructure Development Fund

Nigeria will establish a $25 billion Infrastructure Development Fund to finance projects in the country, the Minister of Budget and National Planning, Udoma Udo-Udoma, has said.

Mr. Udo-Udoma said this while receiving the Report of the three-day Pre-Summit Workshop from the Infrastructure Public-Private Partnership Summit Group on Thursday in Abuja.

He said the development fund would provide a pool of fiscal resources for long term financing of priority projects.

He said the ministry had developed the National Integrated Infrastructure Master Plan (NIIMP) for accelerated infrastructure development in the country for the next 30 year.

“The fund seeks to raise the stock of infrastructure from the current level of 20 per cent to 25 per cent of the GDP to at least 70 per cent by 2043.

“A total investment outlay of 3.05 trillion dollars will be required for the implementation of NIIMP.

“The investment will be geared towards meetings infrastructure requirements of the major sectors of the economy.

“The NIIMP captured Energy, Transport, Information Communication Technology, Agriculture, Water, Mining, Housing, Social Infrastructure, Security and Vital Registration sectors,” Udo-Udoma said.

He pointed out that the implementation of the NIIMP required collaboration of stakeholders – Federal and State Governments and the private sector – to provide required investments.

“The NIIMP, apart from being a robust framework for infrastructure development, will also serve as investors’ guide, enhance economic growth, and create job opportunities among other benefits,” he said.

Earlier, Abubakar Mahmoud, Chairman, Infrastructure PPP Summit Group, said the group was formed to address deficit in infrastructure and that government alone could not drive the provision of infrastructure.

Mr. Mahmoud said that the concept of forming the group was for private sector to pull resources and expertise together to create framework for PPP dialogue and engagement.

“We have received a lot of support from government agencies, including the ministry,” he said.

Also Speaking, Daniel Gori, a member of the team who presented an outcome of the summit, said that infrastructure was key to reclaiming Nigeria as the biggest economy in Africa.

Gori recalled that Nigeria had lost its first position as the largest economy in the continent to South Africa.

“We know that infrastructure is critical to this; infrastructure deficit is putting a break on Nigeria potential.

“The report focuses on Power, Transport, Agriculture and Health and we have analysed all sectors and ways they can be developed,” he said.

Nigeria: NLC Warns Against Hike in Fuel Price

Abuja — Following the purported plan by the federal government to hike the price of petroleum products, the Nigerian Labour Congress (NLC) wednesday threatened to take drastic action over any move to further hike fuel price after the last increase.

Though the federal government has clearly denied any such plan, the NLC at the end of an emergency Central Working Committee (CWC) meeting said congress is not taking such a plan lightly.

In a communique signed by NLC President, Ayuba Wabba and Secretary General, Dr. Peter Ozo-Ezon, “expressed concern at the body language of the oil marketers which points to the process of yet another round of increase in the pump price of petroleum products, warning that another spate of increase in any form will not be acceptable.”

NLC further declared that “In view of the incalculable damage any further increase in the pump price of petroleum products will cause, marketers should not contemplate this option.”

They also “called on NERC and DISCOs to obey without further delay, the subsisting court order by reviewing downward the current electricity tariff.”

NLC noted: “that in spite of the subsisting court order declaring as illegal the electricity tariff review, NERC and DISCOs are yet to comply with the court order.”

The organisation added that “in view of the growing difficulties in the economy associated with inflation and devaluation of the Naira, a new minimum wage is not only imperative but urgent as the current minimum wage cannot take the workers to the next bus stop.”

Meanwhile, the association said it would next week stage a protest against the Nasarawa State Governor, Alhaji Tanko Al-Makura, over alleged impunity and abuse of workers’ right.

To that effect, the NLC said it will “declare August 23, 2016 as national day of mourning in honour of the dead and injured workers in Nassarawa State.

“Invite Nigerian workers and civil society allies from across the country to Lafiaon August 23, 2016 to peacefully protest against the illegal actions, impunity and murderous schemes of Al-Makura.”

The NLC explained that “even if workers were on protest, the right to lawful assembly and protest is guaranteed by the 1999 Constitution, Labour Legislations and ILO Conventions to which Nigeria is a signatory.”

They also expressed “outrage at the concerted effort by the Nasarawa Police Command and the government of Nasarawa state at a criminal cover up.”

The body also described “the shooting as barbaric, tragic and saddening, noting that the absence of remorse by the Nasarawa Police Command or the Nasarawa State Governor shows it was a premeditated action.

“The mindless violence unleashed on workers is part of a calculated attempt by some governors to silence lawful and peaceful protests against their acts of impunity, unlawful and criminal conduct and will be resisted by workers with everything workers have.”

They added: “There have been systematic and co-ordinated attacks on the rights of workers in some states such as Nasarawa, Kogi and Imo by way of non-payment of salaries and pensions; illegal whittling down of the workforce via declaration of workers as ghost workers; unlawful abrogation of working days and hours; and surreptitious sacking of workers.”

NLC further demanded for “full justice for the injured and the dead by way of unbiased investigation, appropriate punishment and full compensation for the victims of this senseless shooting

“Put in place a series of actions to compel the government of Nasarawa State and Nasarawa Police Command to account for their actions,” the NLC stated.

Africa: Buhari to Declare Open African Central Bank Governors’ Meeting

President Muhammadu Buhari will declare open the 39th Ordinary Meeting of the Association of African Central Banks (AACB), being hosted by the Central Bank of Nigeria (CBN), on Thursday, August 17, 2016.

A statement from CBN said the meeting is expected to discuss avenues through which African Central Banks can unwind the impact of unconventional policies so that monetary policy can return to its core function of stabilising short term prices.

The meeting will also address the likely impacts that may follow the unwinding and how they can be mitigated; implications on financial stability and the role of fiscal policy in closing any gaps opened up in the process.

The AACB Assembly of Governors Meeting of Friday, August 19, is to be preceded by meetings of the AACB Technical Committee and the AACB Bureau billed for Monday, 15 and Wednesday 17 August respectively; as well as the AACB symposium expected to be graced by President Buhari.

Expected to be guests of Nigeria’s Central Bank Governor, Mr. Godwin Emefiele, who is also the vice chairman of the group, is the AACB chairman and Governor of the Central Bank of Central African States (Banque des Etats de l’Afrique Centrale – BEAC), Mr. Lucas Abaga Ncama and his colleagues from across the five sub-regions based on the African Union regional classification.