Ethiopia to get $3bn funding from World Bank - prime minister

FRUSTRATED South Africans have suffered through another round of power cuts , as - As SA’s growth to give up to stabilise the economy and embattled outlook state threatens utility provider to stutter once labour hasn’t done that,” BLSA COO Bu- Eskom again warned in 2019, that it business needed has called sisiwe Mavuso said. With growth that has to extend labour the to load task shedding for its alleged role in failed to breach the 2% mark in five years, “in holding order the to protect economy the back. power Mavuso said there was no rationale for system “There from is no a total difference collapse.” between labour increases above inflation. and Eskom capital had today. earlier warned The secretary-gener- “They see unbundling as privatisation of al the of a potential union earns for power the same salary as a but where does that come from? We need cuts because of unplanned

CEO. to get Eskom in order,” Mavuso said. breakdowns in system that

All they are looking for is returns on Union federation Cosatu, however, has would needed to be contained

their investment,” Business Leadership hit back at business for using labour as a at or below 9500 MW of power

SA (BLSA) CEO Bonang Mohale told scapegoat. generation. “In the event

Business Day on Wednesday, Workers’ “The excuse of labour inflexibility is generator breakdowns are

Day. tired. We reject it, it’s nonsense. The experienced beyond 10500

The business organisation, which rep- system which exploits black workers is MW there will be high usage

resents more than 70 of the country’s of emergency resources clearly untransformed,” Cosatu spokes- (diesel biggest and companies, pumped storage said labour’s inability person Sizwe Pamla said. generators), to compromise which on may salaries lead at Eskom and “The economy is weak because of the

Mohale to the load unbundling shedding if of the the supply embattled power supply-side of the economy that doesn’t constraints utility has weighed are sustained on the for economy. President Cyril Ramaphosa On Monday, the Department allow people sustainability. to participate.” There is no other a long “Our duration,” social compact the company says for the said sake last week In that 2018, Eskom Eskom employees of Public had Enterprises a 7.5% He said Cosatu way forward,” had sought the department clarity on said. of being globally competitive, you would will not be wage privatized, increase, despite after fraught announced negotiations that South African unbundling said. but the The government South African could forgo By 8 increases p.m., customers above said inflation. The South sin- Africa’s between economic the woes power Airways utility’s “cannot board continue — not in explain its how government it would is be committed carried out. to a they gle biggest were still risk in the to the dark economy is and Eskom. the effort which to curb initially the opposed current any increase form.” — “We are not viable, opposed sustainable, to the idea, profitable we are beyond “”Had the the expected unions load compromised, corruption they and mismanagement the unions. “The airline group will asking now go for an national explanation. airline. How In pursuance is unbun- of shedding would not rotation have taken times. salary Those increases often associated or While with the Treasury through expects a growth radical of restructuring dling going this, to solve various the options crisis at are Eskom? being cuts bonuses were and likely Eskom to extend would until at not have country’s es- failing 1.5% state-owned in 2019 , the Reserve process Bank, which which will ensure It’s not just jobs explored.” at Eskom at risk but jobs least calated 11 p.m., load the shedding company from said. stage entities. one to expects 1.3%, said in April its financial that if and power operational

in this economy,” Pamla said. stage four,” said Mohale. cuts persist throughout 2019, it could He said labour suspected that unbun-

SA saw the return of load-shedding in shave as much as 1.1 percentage points dling would be used to sell the electricity November, with the most severe power off growth for the year and more than generation component of Eskom to the cuts the country has seen. There were 100,000 job losses. private sector because there has been no 26 days of power cuts up to the end of “Labour has been allowed to run amok. clarity from the government. March. We all need to identify what we’re willing

- The SA Poultry Association has A warned gruesome that video more showing local a chicken gang chopping farmers a man’s could soon

legs with a machete has

go out of business due to

jolted Zimbabwe to act

cheap Brazilian imports.

against spiralling cases

The association said that

of violence by artisanal

half of small chicken farm-

gold miners, which is now

ers have gone out of business

morphing into a political

in the past six months due to

crisis.

the After “fact the video that circulated their potential on markets social media, have police been flooded launched by ever-increasing an operation volumes that of netted dumped 1,500 chicken, illegal gold especially panners from Brazil”. in less than a week. Another The local 3,471 poultry people sector were em- arrested ploys about in connection 130,000 with people. the However, gang violence it has at illegal shed hun- gold dreds mining of jobs areas. in recent years,

blaming The panners this that on have an influx of taken cheap over chicken abandoned imports gold chiefly mines from across the EU the and country Brazil. Brazil

were found in possession

is the world’s largest poultry

of machetes and other dangerous weapons.

Police say those arrested are now being investigated for various violent crimes including murder.

So alarming is the gang violence that President Emmerson Mnangagwa had to set up an inter-ministerial committee to tackle it. Justice minister Ziyambi Ziyambi said the government was considering deploying the army to curb the violence which has become “a cause for concern across the provinces.”exporter. Local farmers and tively. business, due to the simple unions argue that the EU and “In the last six months fact that their potential mar- Brazil sell chicken meat below the SA Poultry Association kets have been flooded by cost ZIMBABWE’S and have President called on Emmerson the has watched with Economists, distress businesses ever-increasing and the opposition volumes of government Mnangagwa vowed to intervene. on Friday But not to as revert almost to half have of the accused small the government dumped chicken,” of rushing said to GM the using EU the and U.S. producers dollar after in a the new local farmers currency we had reintroduce regular con- the Zimbabwe Izaak Breitenbach. dollar without the

South plunged American against the country greenback have since tact its with have backing gone out of foreign of currency reserves and say said introduction their farmers this year, are fuelling simply inflation and it should allow the use of U.S. dollar and other more economic competitive hardship. than their currencies to tame soaring prices. counterparts The government in SA. ended a decade of “No progressive nation can progress without dollarisation in June, partly to stem demand for its own currency. However, we have so many

The SA Poultry Associa-

the increasingly scarce currency, a decision among our people, who fight this decision. We

tion recently approached the

economists estimate pushed inflation to 440%, will not revert back to a basket of currencies,

International Trade Admin-

eroding wages and savings. never, never, never,” Mnangagwa told ZANU-PF

istration Commission — the

members at an annual party conference outside

organisation tasked with

the capital.

customs tariff investigations,

There is little foreign investment in the country,

trade remedies, and import

gripped The by its cost worst general economic Zackary crisis in Mwangi a decade, said and export control — calling of living hit a and 19-month export earnings high in and a remittances statement explaining from the the for an increase in the ad va- in April after diaspora inflation have rate fallen. latest numbers. lorem tariff on bone-in and jumped to 6.58 The per resulting cent, the shortage The of delay U.S. dollars in short to pay rains for did boneless frozen chicken por- highest since imports September has led to fuel not and help electricity the situation, shortages, given tions to 82% from existing 2017. hobbling businesses that including the bulk in the of important the country levels of 37% and 12%, respec- The Kenya mining National sector. Bu- relies on rain-fed agriculture. reau of Statistics Although (KNBS) it is in now illegal Inflation to use started foreign changing its monthly updates currency to yester- buy local its goods, course many last people month still when it

take the risk and some businesses charge in both

day said the rise was due to reversed its downward trend

U.S. and Zimbabwe dollars.

an increase in food prices, to increase to 4.35 per cent.

The Zimbabwe dollar has lost 61% of its value

pushed up by drought, which If the current rise goes on,

against the greenback since its re-introduction.

has ravaged the country since then it will shoot beyond the

Analysts expect it to weaken further as the

last year. “Between March and government’s target of 7 per

government scrambles for U.S. dollars to crank

April 2019, food and non-alco- cent.

up imports of grain following a severe drought.

holic drinks’ index increased The last time inflation was

Hopes have faded that Mnangagwa, who took

by 6.86 per cent.

over from late President above Robert 6.58 Mugabe per cent after was in This increase a coup was two mainly years ago, September can quickly 2017, revive when the it stood due to drought economy, conditions, which is on at the 7.06 verge per cent. of recession Inflation with indi- which prevailed millions in the facing bet- hunger. cates the cost of living and a ter part of April 2019, Mnangagwa causing said high his government rate means was that pursuing consum- upsurge in the difficult costs economic of some reforms, ers have including lost their measures spending to foodstuffs,” KNBS reduce the director budget deficit power, to with single the digits. reverse hold

UGANDA has been forced

- Investors in

to go for commercial and

the nation’s stock mar-

development bank loans

ket lost N713bn (about

worth Ush2.4 trillion ($664.7 million) US$1,983,972,338.70) to finance the in public April as security the stock sector market and cover declined shortfalls further, in revenue record-

collection. ing a N135bn loss on Tues- day. The loan request is before parliament The stock pending market approval. opened the Half month the amount with will a be market borrowed capitalisation from Stanbic of N11.672tn Bank and the an rest All from Share the Index Trade of and 31,041.42 Development basis points Bank. and

Uganda Revenue

closed with a market cap-

Authority registered a shortfall

italisation of N10.959tn

of Ush603.7 billion ($162

and ASI of 29,159.74bps on

million) in the first quarter of

the last trading day of the

2019/2020 financial year.

month.

And by the end of the financial

This brought the total

year URA is expecting a

losses recorded by equity

revenue shortfall of Ush1.9 trillion investors ($510.2 on million). the Nigerian Stock By October Exchange the URA to N713bn was supposed in April. to have collected Ush6.1 On Tuesday, trillion ($1.6 the billion) ASI shed but the 1.22 target per was cent missed to close due to at “delays 29,159.74bps in implementation as the gains of some recorded administrative in 26 stocks measures were planned offset by when major the financial losses re- year corded was in starting,” 19 stocks. according to Secretary Major losses to the were Treasury record- Keith ed in Muhakanizi. Dangote Cement Plc, Nestlé Nigeria Plc and Stan- bic IBTC Holdings Plc.

One of the administrative measures, A total of and 543.924 which million is being stocks contested valued by the private at N8.2bn sector, were is the traded installation in 4,682 of digital deals, representing tax stamp system an to 87.4 stop tax per cent evasion. and 278.8 per cent in- crease “URA in has volume not consulted and value the traded, private sector respectively, on where as to the install year-to-date the digital stamp return ma-chines. wors- Yet ened if the digital to -7.22 machines per cent. interface and The affect top insured traded machines stocks by volume in the factory, were Cement the government Com-

isn’t willing to take on the cost,”

pany of Northern Nigeria

said the executive director of

Plc (132.328 million units),

the Private Sector Foundation

FBN Holdings Plc (68.783

Gideon Badagawa. “No

million units), Unilever Ni-

insurance company will accept

geria Plc (50.470 million

to compensate a manufacturer

units), Guaranty Trust Bank

whose machines are affected

Plc (41.441 million units)

by URA’s new technological and measures Dangote inside factories.” Flour Plc (37.882 He added: million “We units). are not against the digital tax stamp system. We just want to make sure that it doesn’t increase the cost of doing business in Uganda. The country’s tax problems stem from lack of efficiency and low tax compliance levels and not necessarily the lack of technological investments.”

losses were recorded in Dangote Cement Plc, Nestlé Nigeria Plc and Stanbic IBTC Holdings Plc.

PRIME Minister Abiy Ahmed said on Friday Ethiopia will receive $3 billion from the World Bank to help strengthen reforms in its traditionally state-controlled economy.

The announcement was made two days after the

International Monetary

Fund said it had reached a preliminary agreement for a three-year, $2.9 billion financing package to support

Ethiopia’s economic reforms.

Abiy did not give more details on the World - South Bank Africa’s rand weakened yesterday as funding. an unexpected He said on slowdown his in Chinese factory activity dent- ed Twitter demand account for that risk unnamed assets, with investors increasingly cau- tious development before local partners trade have and budget data.

pledged At 0640 more GMT than the rand $3 billion was 0,1 percent weaker at 14,3550 per dollar in addition from an to the overnight World Bank close of 14,3400.

and The IMF rand funding. has see-sawed in a narrow range, with little mo- mentum The money in either will go direction, toward as investors wait for a US Fed pol- icy macroeconomic, meeting today structural which is expected to keep lending rates un- changed. and sectoral reforms, he said. Locally, a Reuters poll of analysts forecast that March trade

“This reaffirms both

data, due at 1200 GMT, would show a 4,8 billion rand surplus.

Governments’ and donors’

The Treasury is also due to publish monthly budget figures.

partnership to transition Ethiopia to a prosperous and peaceful

Traders expect liquidity to be tight with local markets closed

nation,” Abiy wrote. Abiy promised to open the economy to private

for the Worker’s Day holiday before picking up in the run-up to

investment when he took office in 2018, aiming to modernise

national elections on May 8.

banking and telecoms and help provide jobs for more of the

Bonds also weakened, with the yield on the benchmark 10-

nation’s 105 million people.-

year paper up 1 basis point to 8,545 percent.

President Mnangagwa