Author: murielle

Nigeria: We Will Protect Foreign Investments in Nigeria – Buhari

President Muhammadu Buhari on Saturday night in Nairobi, Kenya, reassured existing and prospective foreign investors that their investments in Nigeria were secured and would be fully protected.

This is contained in a statement issued in Abuja on Sunday by the president’s Senior Special Assistant on Media and Publicity, Malam Garba Shehu.

The statement said that Buhari gave the assurance at a bilateral meeting with Japanese Prime Minister, Shinzo Abe, on the sidelines of the sixth Tokyo International Conference on African Development (TICAD) in Nairobi.

The president outlined several steps taken by his administration to secure the country and ease doing business in Nigeria.

He also told the Japanese leader that “with the defeat of the Boko Haram terrorists by the military, attention of my administration is now focused on stopping the destruction of the country’s economic assets by militants in the Niger Delta”.

He said that the militants must dialogue with the Federal government or be dealt with in the same way like Boko Haram.

“We are talking to some of their leaders; we will deal with them as we dealt with Boko Haram if they refuse to talk to us.

“As a government, we know our responsibility, which is to secure the environment.

“It is clear to us that lenders won’t fund projects in insecure environments.

“We realize that we have to secure the country before we can efficiently manage it,” Buhari said.

According to him, the security in the Gulf of Guinea, which is greatly affected by piracy and armed robbery at sea, is a priority for the Nigerian government.

“We have provided funds to our Navy to buy new platforms, train and effectively organize the personnel to protect the area.

“We are looking forward to support from developed nations for satellite surveillance covering the Gulf.”

Buhari recalled his audience with G7 leaders in Germany, and thanked Japan for responding positively to Nigeria’s requests for the rehabilitation of victims of Boko Haram and rebuilding of infrastructure in the North-East of the country.

He, however, stated that there was still more to do on education, health and other infrastructure to ensure quick and voluntary return of displaced persons to their communities.

On the United Nations Security Council reform, the president agreed to work with Japan for the reforms, stressing that the case for a permanent seat for Africa on the council was a moral one.

He also expressed Nigeria’s support for Japan in its bid for a UN resolution on the problems in East China and South China as well as the “uncontrolled nuclear tests by North Korea.”

According to him, the UN system is sufficient for the resolutions of all disputes and no nation should be above the United Nations.

“This has to be made absolutely clear and I assure the prime minister that I will meet as many leaders as possible at the forthcoming UN General Assembly concerning the issues,” he added.

In his remarks, Abe congratulated Buhari “for courageously tackling Boko Haram terrorism”.

He said Nigeria and Japan must work together to improve the investment climate in view of the many Japanese companies wishing to invest in Nigeria.

Abe reaffirmed Japan’s commitment to rapid development in Nigeria through quality delivery of ongoing projects in the country, including Jebba hydro power scheme and the Lagos railway project.

Nigeria Will Be Among Top 100 Countries of Doing Profitable Business By 2019 – Buhari

President Muhammadu Buhari on Sunday in Nairobi, Kenya, assured that Nigeria would be one of the most attractive and easiest places of doing business in the world by 2019.

The President, in a statement issued in Abuja, was speaking at a plenary session on “Dialogue with the Private Sector” at the sixth Tokyo International Conference for African Development (TICAD VI) in Nairobi.

According to him, his administration is implementing policies and measures to create right and enabling environment for business and investors in Nigeria.

Nigeria is currently ranked 169 out of 189 countries by the World Bank, according to the Bank’s 2016 Ease of Doing Business report.

President Buhari told the session ,attended by several African leaders, Japan’s Prime Minister Shinzo Abe and international business executives, that his administration’s vision and objective was to make Nigeria one of the top investment destinations in the world, within the shortest possible time.

“We believe government has a particular responsibility to create right and attractive environment for businesses and economic activities to thrive.

“In furtherance of this vision, we have launched the Presidential Enabling Environment Council, PEEC and Inter-Ministerial Council to oversee the efforts of government to remove various bottlenecks that stifle businesses and economic activities.

“This will create economic activities and the right enabling environment and investment climate in Nigeria.

“The secretariat will include strong private sector representation that would be led by experienced business professionals from the private sector,” he said.

The president maintained that his administration was committed to moving up Nigeria’s ranking of the World Bank’s ease of doing business index 20 places in first year and be in the top 100 within the next three years.

Nigeria: Indonesia, Nigeria Trade Volume Falls 56 Percent

The Indonesian Ambassador to Nigeria, Harry Purwanto, said the volume of trade between Nigeria and his country reduced to 1.75 billion dollars in 2015 from four billion dollars in 2014.

Mr. Purwanto made this known in an interview with the News Agency of Nigeria in Abuja on Sunday.

He said the signing of economic and technical agreement in 2001 had been of benefit to both countries, but added that interactions between the countries were slowing down.

“From 2001 till now is some period of time and I think up till 2014, there are many things we have done in following up our technical and economic agreement.

“However, after 2014, because of difficulties in the global economy, both countries have focused on their domestic affairs and it looks like the interaction between our countries is slightly slowing down.

“And what we have seen are more explorations rather than manifestations of real and concrete cooperation between two countries.

“It is rather discouraging because in 2014, our trade with Nigeria was almost four billion U.S. dollars.

“In 2015, it went down to about 1.75 billion U.S. dollars because of, perhaps, the oil prices and the global difficulties in economic and financial times.

“From January to June last year, trade on both sides was about one billion U.S. dollars, but this year from January to June, it is going down to less than 800 million U.S. dollars.

“The other thing is perhaps the transition in Nigeria, the change of government, and in Indonesia we did have our new government in late 2014 and we also transitioned; we already have two cabinet reshuffles.

“The new administrations need to learn and see what is on the files before they leap forward,” he said.

The envoy said that the Nigeria-Indonesia Commercial Association facilitated investment opportunities among businessmen of both countries.

He also explained that both countries shared similarities that formed the background of mutual relations between them, and added that efforts were being made to sustain existing relations.

He, however, called for more collaboration that would promote stronger business ties for both

“Before 2013, there was a Nigeria-Indonesia Chamber of Commerce in Lagos which was very active but the Nigeria-Indonesia Commercial Association was formed when our president visited Nigeria in 2013.

“This year, we have brought Indonesian trade missions to Nigeria twice to get new partnerships and also to see possibilities of increasing our trade balance between our two countries.

“We share many commonalities – the youth potential between our two countries economically and we both share ideas on political outlook.

“We put our focus on the high potential of the two countries and we want to transfer these modalities into mutual progress and prosperity for both countries and also find solutions for international challenges.

“That is why, on our part, we try to encourage more interaction between the business communities of the two countries.

“We want to see a stronger organisation or forum of Nigerians who can be vehicles and motivators to encourage more of the Nigerian business community to see opportunities in Indonesia and explore more businesses bilaterally,” he said.

Mr. Purwanto said that the provision of the Memorandum of Understanding for a Joint Commission of Cooperation established in 2013 between both countries was “already adequate”.

He said that the first meeting of the joint commission was held in 2013, adding that the next meeting was expected to have held in Nigeria in 2015.

“Patiently we will wait until there is a hint from Nigeria to host the second joint commission because in the commission, we are not only represented by the government side but the private sector,” he said.

The envoy expressed Indonesia’s interest to enhance cooperation in the areas of science and technology, agriculture, and industry.

Tanzania: State Urges Speed On LNG Plant

President John Magufuli has directed the Ministry of Energy and Minerals to fast-track the construction of a Liquefied Natural Gas (LNG) plant in Lindi Region to cost 30 billion US dollars (65 trillion/-).

“I want to see this project taking off, there have been a lot of unnecessary delays… just accomplish whatever is creating any bureaucracy so that our investors can begin the work with immediate effect,” he said.

The president was speaking at the State House in Dar es Salaam yesterday after receiving a progress report on the multi-trillion grand project for construction of Liquefied Natural Gas (LNG) plant at Likong’o area in Lindi Region.

The report was presented by an official of the Norwegian Company, Statoil Country Representative, Mr Oystein Michelsen, who insisted that after completion of the construction of the envisaged gas plant, production would continue for a period of not less than 40 years.

“The Norwegian government is fully committed to ensuring that implementation of the project is done for the benefits of our two countries and I request that the Tanzanian government continue giving us its full support so that we achieve in putting up the plant,” said Mr Michelsen.

Lately, the country discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits, raising the east African nation’s total estimated natural gas reserves to more than 57 tcf.

Most of the gas discoveries in Tanzania were made in deep-sea offshore blocks south of the country near the site of a planned liquefied natural gas (LNG) plant.

Earlier this month, the Minister for Energy and Minerals, Professor Sospeter Muhongo, revealed that the government had already embarked on the grand plan, adding that Lindi residents and Tanzanians in general should expect economic revolution in few years to come.

Prof Muhongo was speaking during the official launch of the Nanenane exhibitions at Ngongo Grounds in Lindi Municipality.

“I would like to ensure Lindi residents and Tanzanians in general that our economy is going to grow at a high speed; we are going to invest at least 30bn/- US dollars in the construction of a gas processing plant,” he said.

However, the minister asked the public to remain calm as the government continues to set plans for the grand project. He observed that the project was likely to take many years because it needs huge amount of money, high skilled and experienced personnel as well as good supervision.

Prof Muhongo said the government would be required to construct about 200 kilometres of gas pipes from the sea to the plant. He remarked: “This is not an easy job; it will take some years.

We are supposed to bring the gas from the sea. It is between 100 and 200 kilometres.” At the State House yesterday, Dr Magufuli assured the Statoil country representative that the Tanzanian government was committed to make sure that the project was successful.

He said the project would create many employment opportunities to Tanzanians as well as enabling the government to collect revenue through various forms of taxes that will help in strengthening provision of social services including education, health, water and infrastructure, among others.

Apart from Statoil, other companies that will invest in this project include Shell, Exxon, Mobil, Pavillion and Ophir, according to a statement from the Presidential Communications Unit.

Africa: Japan-Africa Summit Gives Continent New Leverage

When the Tokyo International Conference on African Development (TICAD) was launched in 1993 by Japan in co-operation with the World Bank, the United Nations and the UN Development Programme, it was the first such initiative of one country seeking to deepen its partnership with Africa.

From August 27 to 28, when it meets in Nairobi, TICAD will be held for the first time in an African country. This milestone reflects the evolving nature of relations between Japan and the continent, and the more assertive and confident agency of African countries in their interactions with external powers.

TICAD was originally established to reframe Japan’s aid policy after the end of the Cold War. In the ensuing years Africa has seen a proliferation of forums for engagement with China, India, the European Union, Korea and Turkey, to name but a few.

For all the touted ‘first-mover’ advantage, Tokyo’s initiative and its aid and economic activities in Africa have not received the same profile as some of the other forums, most notably China’s Forum on China-Africa Cooperation.

From 1993 to 2013 TICAD was held every five years in Japan. While led by Japan, it has included the African Union Commission and international organisations as co-ordinating partners. TICAD supported the New Partnership for Africa’s Development (NEPAD) after it was adopted as the socio-economic programme of the continent, and the special relationship is evident in the fact that the NEPAD Agency and the African Union continue to be the focal point for Africa’s engagement with Japan.

Although Japan’s TICAD initiative started off as an articulation of its post-Cold War aid policy, over the years it has increasingly also incorporated trade and investment dimensions, largely in response to African countries’ calls in this regard.

Japan was until recently the world’s second largest economy; yet its overall trade with Africa in 2015 was US$20 billion, compared to China’s which was $180 billion. Japanese direct investment in Africa grew from $1.7 billion in 2005 to about $10.5 billion in 2014.

Although Japan supports international aid initiatives such as those of the Organisation for Economic Co-operation and Development, its aid is differentiated from that of other ‘Western’ donors. Its focus on infrastructure and low-key (if any at all) political conditionality is more reminiscent of emerging powers. Yet, it has not benefited among African countries from this fact at the political level. It has been seen as part of the West, and China’s strong diplomatic outreach to Africa with its emphasis on “South to South” ties has made a greater impact since 2000.

This year’s TICAD will be attended by some 35 African heads of state, and will also include a sizeable Japanese business contingent and a business fair. Japanese officials believe this initiative is an important means to expose their business people to the African business environment and enable them to meet and interact with African governments.

In another indication of the shift away from aid as the focal point of the relationship, Prime Minister Shinzo Abe has established through his office a Conference on African Economic Strategy which acts as the co-ordinating mechanism for all ministries, thus emphasising that relations with Africa have a strong economic focus and are not solely defined by the Ministry of Foreign Affairs. This is an important shift in emphasis for Africa and signals a maturing relationship and aspiration to place Japanese – African relations on a different footing.

While the India – Africa Forum Summit has moved from a three-yearly event to intervals of five years, TICAD is going in the opposite direction, a decision taken at the 2013 TICAD summit. The 2013 summit also established a follow-up mechanism to review and assess, on an annual basis, the implementation of the commitments in the Yokohama Action Plan.

At TICAD V in Yokohama, Japan committed $32 billion of public and private funds, including $14 billion in overseas development aid over the next five years. Infrastructure has also been an important dimension of Japanese assistance to Africa and in 2013 it committed about $6.5 billion in loans for infrastructure. In addition, there were commitments made in health, education, environment, trade and investment, agriculture and human resources.

Japan committed $500 million to train 120,000 health workers to provide universal health care and $500 million in co-financing with the African Development Bank for the African private sector. Moreover, in August this year Japan committed $120 million in aid to help counter-terrorism efforts in Africa. To aid its anti-piracy efforts in the Horn, Japan has a base in Djibouti, its first overseas base since the end of the Second World War, which it opened in 2011.

The summit in Nairobi is part of a bigger offensive to market Japan’s presence and assistance on the continent as Africa continues to be seen as the next frontier market with significant opportunities.

One should also not lose sight of the fact that Japan’s engagement with Africa is part of its geopolitical positioning in a changing global environment. This includes Japan’s ongoing desire to see UN Security Council reform, including a permanent seat in recognition of its ongoing significant support to the UN and its operations. The world in 2016 is a very different place since TICAD was established in 1993.

Since TICAD I, China has overtaken Japan as the world’s second largest economy. Under President Xi Jinping, China is flexing its muscles in its region, especially around maritime disputes in the South China and East China seas. While Africa has no ‘dog in the fight’, both countries have an interest in garnering international support for their positions on the disputed Senkaku/Diaoyu islands in the East China Sea. In recent years Japan has taken steps to reverse its post-war pacifist constitution, and in 2014 prime minister Abe ended Japan’s self-imposed ban on the export of weapons. Escalation in the tensions in the East China Sea is likely to have an impact on the world economy and maritime trade.

Will African countries be drawn into taking positions on Asia’s maritime disputes? In this China probably still holds the advantage, built on the diplomatic capital it has amassed over many years. However, it is in the continent’s interests to continue to support the observance of international law and respect and strengthening of multilateral frameworks.

In Nairobi though, the discussions are likely to focus on Africa’s developmental priorities and an assessment of progress on TICAD since 2013. Moreover, Japan is recognised as a pragmatic partner and African countries should not be surprised to see functional cooperation emerging between China and Japan, particularly in the infrastructure space where both countries enjoy strong comparative advantages.

The interest from so many eligible suitors has been an ideal environment for African states to maximise their leverage on investment, infrastructure projects and the like. As the Kenyan foreign affairs and international trade Cabinet Secretary Amina Mohamed said recently, “Everybody is competing in the same space. And if there is no competition, there is a problem. It simply allows us to choose the best.

Nigeria: Eight Countries Interested in 11th Abuja International Trade Fair

Eight countries have so far committed to send exhibitors to the 11th Abuja International Trade Fair slated for next month being organised by the Abuja Chamber of Commerce and Industry.

This was disclosed by the chairman of the local organising committee, Barrister Jude Igwe, in Abuja yesterday.

Igwe said the interest in this year’s fair by foreign countries was overwhelming.

A total of eight countries attended last year’s fair with 42 foreign exhibitors and 250 local exhibitors.

“Taiwan, Indonesia, India, Pakistan and the rest of them have committed to attend. We are sure that the number of exhibitors that they are organising will exceed last year’s even as we are still receiving acceptances,” he said.

The president of the chamber, Tony Ejinkeonye, said the fair will start on September 22 and has ‘Make it in Nigeria’ as theme.

“We see this trade fair that is coming as a catalyst or a tool to help drive the economy of Nigeria and help create jobs,” he said.

Nigeria Approves 3-Year Budget Plan, Projects Low Growth in 2019

The Federal Executive Council (FEC) on Wednesday in Abuja approved the Medium Term Expenditure Framework (MTEF) and Fiscal Strategic Paper (FSP) for 2017 to 2019.

The Minister of Budget and National Planning, Udoma Udo-Udoma, made this known while briefing State House correspondents after the Federal Executive Council (FEC) meeting which was presided over by President Muhammadu Buhari.

He revealed that there was extensive consultation with governors and Non-Governmental Organisations (NGOs) before the document was presented to FEC for the approval.

According to him, it is on the basis of the approved MTEF that the 2017, 2018 and 2019 budgets will be fashioned.

Mr. Udo-Udoma said “Today, the Federal Executive Council approved Medium Term Expenditure Framework and Fiscal Strategy Paper for 2017 to 2019, that is, the MTEF and the FSP for the next three years.

“As you know, the Fiscal Responsibility Act requires the executive to prepare the MTEF and send it to the National Assembly for consideration.

“And it is on the basis of the MTEF that the next budget will be fashioned.

“So, in short, we have started the process of preparing the 2017 budget.

“Before the MTEF was presented to FEC for consideration, there was extensive consultation with the private sector, governors and NGOs.”

According to him, the government intends to intensify efforts in pursuing manpower driven economy in the 2017-2019 MTEF.

He said with the MTEF, the government intended to pursue gender sensitive, pro-poor and inclusive social intervention schemes similar to the 2016 social intervention programmes.

“We intend to intensify effort to diversify the economy, we intend to go on with the implementation of ongoing reforms in public finance, we intend to enhance the environment for ease of business so as to generate private sector and private investment.

“We also intend to continue to pursue gender sensitive, pro-poor and inclusive social intervention schemes similar to what we did in 2016, our social intervention programmes are going to be sustained.”

He noted that the Federal Government had fixed 42.5 dollars per barrel and 2.2 million barrel per day production of crude oil as assumptions for the 2017 budget.

“Let me share with you some of the key parameters and assumptions which will be underpinning the 2017-2019 MTEF.

“Oil price benchmark: We intend to use 42.50 dollars as reference price in 2017. We are projecting 45 dollars in 2018 and 50 dollars in 2019.

“So, we are keeping to the very conservative in terms of the reference price of crude oil, even though we are expecting it to go higher than this. But, we are keeping to an extremely conservative price scenario.

“In terms of oil production, we are keeping to the same level of this year for 2017 and that is 2.2 million barrels per day.

“For 2018, 2.3 million barrels per day; and for 2019, 2.4 million barrels per day.

“In terms of growth rate, we are targeting 3 per cent growth rate in 2017 and 4.26 per cent growth rate in 2018 and a 4.04 per cent growth rate in 2019.

The minister explained that the 2019 rate was slightly lower than 2018 because 2019 would be an election year. The Minister of Trade and Industry, Okechukwu Enelamah, also disclosed that FEC had ratified the World Trade Organisation’s Trade Facilitation Agreement.

According to him, the agreement seeks to reduce the cost of doing business among members of the WTO He said “Council also approved the ratification of the World Trade Organisation (WTO) Trade Facilitation agreement.

“This is an agreement approved by all members of WTO in the ministerial conference that was held in 2013. “What that agreement seeks to do is basically to lower the cost of trade generally for everybody.

“There was clear understanding that everybody benefits from lowering the cost of doing trade, it is particularly beneficial to developing countries that want to be able to access the international market.

“Nigeria was one of the countries that approved the agreement then, and we have been going through the process to ratify the agreement so that it would come into effect.

“The idea is that the agreement will come into effect when it is ratified by two thirds of all the countries that approved it originally; we think that will happen sometimes this year.”

Nigeria: CBN Bars Nine Banks From Forex Transactions

The Central Bank of Nigeria has barred nine deposit money banks from all foreign exchange transactions and operations, pending the remittance of $2.12 billion dollars belonging to the Nigeria National Petroleum Corporations to the Treasury Single Account. Sources confirmed to Daily Trust that the nine banks comprise of three tier-one lenders and another six tier-two deposit money banks.

The affected banks are: Diamond Bank, First Bank of Nigeria, First City Monument Bank, Fidelity Bank, Heritage Bank, Keystone Bank, Sky Bank, Sterling Bank and United Bank for Africa.

“The affected banks remain barred from foreign exchange operations until they fully remit the NNPC funds into government coffers via the Treasury Single Account,” a source in the apex bank said.

When contacted, the spokesperson of the NNPC Mallam Garba Deen Muhammed told Daily Trust yesterday that when the corporation informed the presidency on the non-remittance of the fund to the TSA by the banks.

Meanwhile the United Bank for Africa (UBA), in a statement from its Head, Corporate Communications, Charles Aigbe, said that it has completely remitted all NNPC/NLNG dollar deposits to TSA.

Tanzania: NHC Rolls Out Big Dodoma Housing Plan

Civil servants and employees from the private sector have been assured of adequate accommodation in the designated administrative city of Dodoma, as the National Housing Corporation (NHC) seeks to raise 60bn/- to put up between 300 and 500 houses in the capital.

Even with the envisaged development in Dodoma, the corporation maintained that it will continue undertaking projects in Dar es Salaam, given its strategic location, commercial influence and the fact that 70 per cent of NHC’s property are in the commercial city.

NHC Director General, Mr Nehemiah Mchechu, said the corporation has so far acquired 236 acres of land at Iyumbu area,

adjacent to the University of Dodoma (UDOM), where it plans to establish a satellite centre. “In the first phase, we plan to build between 300 and 500 houses in the next twelve months. Apart from Iyumba we also have plots in Chamwino, Bahi and Chemba,” Mr Mchechu told a press conference in Dar es Salaam yesterday.

According to the DG, the stateowned real estate developer aims to raise 15bn/- from the sale of 97 units at Medeli Housing Estate in Dodoma and an additional 30bn/- from the sale of plots at its satellite centres across the country such as Safari City in Arusha and Kawe in Dar es Salaam.

“We have a total of 153 units at Medeli, out of which 97 are leased while the rest were sold out. Tenants occupying the 97 units will be given first priority in the sale but if they fail the houses will be sold to other Tanzanians,” he stated.

The NHC as well seeks to raise 15bn/- in outstanding rent fee by tenants in Dar es Salaam, while the funds will be channelled to the housing projects in Dodoma, he explained.

Mr Mchechu mentioned other possible sources of financing as loans from financial institutions and engagement of local and foreign investors. The construction industry currently contributes 24 per cent to the Gross Domestic Product (GDP), but Mr Mchechu was optimistic that the development of the designated capital will boost the industry’s contribution to 30 per cent.

“More still, as the country faces a shortage of 3.5 million housing units, with the demand increasing at an average of 200,000 units per annum, we hope the housing projects in Dodoma will help to ease the shortage,” Mr Mchechu noted.

The NHC boss was as well positive that the development of Dodoma will create more jobs, attract new investments, increase government revenues and eventually boost the economy.

President John Magufuli has lately stressed that he will make sure that the long dream of the founding Father of Tanzania, the late Mwalimu Julius Nyerere, of transferring the capital city from Dar es Salaam to Dodoma is fulfilled before 2020.

Since then, the Prime Minister, Mr Kassim Majaliwa, said he will be the first to have his office transferred to Dodoma next month and instructed cabinet ministers to follow suit.

South African Academics Ask Zuma to ‘Stop the War’ On Finance Minister

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South Africa’s minister of finance Pravin Gordhan is again on a collision course with the country’s Directorate for Priority Crime Investigations. The row has unsettled the country’s already shaky currency, the rand. It’s also prompted a group of senior academics from nine universities to pen an open letter. The letter, which first appeared on local news site the Rand Daily Mail, is republished below.

“In December 2015 the shocking decision by President Jacob Zuma to fire Finance Minister Nhlanhla Nene led about 70 senior academic economists from across South African universities to write an open letter to the Business Day to express our outrage at the capriciousness of that decision. We also warned of the likely consequences for the country’s fragile economy.

That that decision was politically motivated has been borne out by subsequent events. Significantly, Mr Nene’s redeployment to the Brics Bank, ostensibly the reason for his removal, has not materialised. The President continues to use every platform to sing the praises of the little known backbencher he appointed in Nene’s place. He also frequently expresses bitterness at the role of (so called) white monopoly capitalists whom he claims forced a reversal of his decision to appoint Desmond van Rooyen.
At the time and in the circumstances, some commentators thought that the new Minister Pravin Gordhan would be safe from similar politically motivated attacks. How wrong they were. Since earlier this year, Minister Gordhan has been subjected to an unrelenting attack from the Hawks. They have been investigating the Minister’s alleged role in the establishment of the so-called “rogue” spy unit when he was the South African Revenue Services’ (SARS) Commissioner. A few days ago the Daily Maverick reported that the Hawks were “circling” the Minister again.

These events have once again compelled us to put pen to paper to express our outrage and warn of the dangers to our still very fragile economy. There are predictions of zero growth in 2016; stubbornly high unemployment; persistent poverty and inequality and a volatile currency. This is not the time – if there ever was – to be playing such dangerous games with the lives and well-being of all sectors of our economy and society, especially the poor and the vulnerable.

We say all this with the same qualifiers we employed in our December 2015 letter. These include our recognition that Ministers of Finance do not enjoy any special privileges or protection. Everyone is subject to the rule of law and the Constitution. Finally, our stance does not mean that all of us share with equal enthusiasm the Treasury and government’s fiscal framework.

We urge the President, the Cabinet and the African National Congress’ National Executive Committee (NEC) to assist in bringing this dangerous set of events to an end in the best way possible in the interests of our country and our economy. It is time for real leaders in the NEC, the Cabinet and in governing alliance partners the SA Communist Party and the Congress of South African Trade Unions to stand up to the tyrannical and despotic behaviour on display here. Yet again we stand on the edge of an economic precipice.

We end expressing by similar sentiments to those used in our December 2015 letter: As senior academics in Economics and related disciplines we express our unambiguous and urgent concern both about these events in general, about the unseemly attacks on the Minister of Finance and about the general lack of progress in tackling the massive and growing crisis of low growth, poverty, unemployment and inequality as well as the crisis of governance at our state owned enterprises.”