MinBane

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Archive for the category “Trade”

Zimbabwe: ZERA – Re: Review of Fuel Prices Effective 21 May 2019 (21.05.2019)

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Reserve Bank of Zimbabwe: Press Statement on the Payment Arrangements for Fuel through the Interbank Foreign Exchange Market and the Drawing Down of USD500 Million Offshore Line of Credit (20.05.2019)

Somalia: Office of the Attorney General – Press Release on Resurgence of Charcoal Production and The Export off the Coast of Somalia (16.05.2019)

Metallon Corporation Sues the Government of Zimbabwe for US$132M for Failing to Pay for Gold (16.05.2019)

Uganda and European Union hold Article 8 Political Dialogue (04.05.2019)

Opinion: VP Chiwenga “financial terrorist” is his own cronies!

“I want to give a stern warning to those practicing financial terrorism in the country. We will react accordingly as Government and nobody should claim that they were not warned. We’ll take very strict measures” – Vice President Constantino Chiwenga

Sometimes, you wonder what kind of voodoo that has hit our times, that some people are in power and you wonder, what are they doing there?

Today, I am thinking to myself, if it wasn’t for the Mid-November 2017 Coup d’etat in Zimbabwe. The former General Chiwenga wouldn’t be a force to reckon with. He would just be another military crony that hanged out and followed direct orders of the Mugabe administration. However, those days are long gone, but his power remains and stronger than before.

The VP has an imaginary mind, maybe a near picturesque of the screenwriters of Hollywood. Because, his last venomous speech against “Financial Terrorist” is one for the books. Surely, Stephen King could need some of his visions and his tales. It would make a nice trilogy and surely make Universal Studios even more wealthier.

As this maybe, the VP should look into himself and his own kind before blasting others. It isn’t the citizens fault, that the albatross, the economy is failing. It isn’t the businesses trying to salvage something fault either. It is the state and their actions, which is failing. Not the black-market trading of US Dollars or South African Rands. Neither, the lack of value of the RTGS Dollars or whatever else voodoo economic policies coming from the Ministry of Finance and Reserve Bank of Zimbabwe.

That is the people, who the VP should look into, the ones issuing taxes on mobile money transfers, the ones whose making Forex nearly impossible. It is not the fault of the public or the citizens. This is the state and the lack of trust in the “currency” and the “financial markets”. Which is solely created by the ZANU-PF and the institutions it is running.

So, the real terrorists, the real criminals, whose enterprise is to loot and make money vanish. Is the state officials, the state owned enterprises and whatnot, whose gaining funds and eating, before the cash-flow even get circulated. That is why the economy is drained and raising inflations.

Its hectic because of how the state is run and awaiting just another disaster to strike. So, that the needle-point can hurt the old wounds, ensure that the state bleeds a bit more. That is why it insulting to common sense. That the citizens trying to scrap by is in the wrong, when the state doesn’t delivered the needed policies nor the remedy to the situation. However, just prolonging it and hoping that it will not die. Keeping it in the E.R. and hoping the bitch is still breathing when passing by.

Let’s so how this goes, but the Financial Terrorist of Harare will continue to live in luxury, while the citizens suffers. That is how the game is rigged and this play doesn’t seem to be ending soon. Just keep breathing and hope you overcome. Peace.

Kenya: Ministry of Information, Communication and Technology – Media Clarification (25.04.2019)

Uganda Telecom Limited (UTL): New owner, clearly disconnected

Since March 2017, the Uganda Telecom Limited (UTL) have been struggling, it started even before then, but at that time. The state started to intervene, by the next month in April 2017. The state had already put the company under provincial ownership. Meaning, that the state took it over and has tried to find new ownership of this company. Something it hasn’t succeeded in. This all happened because of the Libyan crisis in 2011 and the frozen accounts of Libya Post Telecommunications & IT Company (LPTIC), which had a majority ownership in the UTL until that point. However, they didn’t get all out before March 2017. Even as there was a set-up a new board in the Company in fall of 2016. Even, with all of this, the UTL continues to live, but by mere state injections and not because it is viable for business.

Even after a year in May 2018, the Cabinet announced that they were looking for new owners, alas, meaning that the state wouldn’t have the major stake in the company. Why I am saying all this? Well, the news this week that Minister Evelyn Anite and government sources states this:

The source added that the government had created incentives to make the company more attractive. They include managing the backbone, wiping all the liabilities off the balance sheet, and that the government would take responsibility for the pension liability of more than Shs 30 billion to former UTL employees. Other liabilities that the government would take care of include the regulator’s fees and taxes. “All these wipe off the balance sheet and handed it [UTL] to you, clearly you can start from a clean slate.” the source said” (URN – ‘Gov’t offers to pay Shs 500bn UTL liabilities’ 20.04.2019, link: https://observer.ug/news/headlines/60467-gov-t-offers-to-pay-shs-500bn-utl-liabilities).

With this in mind, the state would clean the slate of the company, an embattled one who is fighting in a competitive market. Where it is directly competing against the mighty MTN and Airtel. Therefore, the UTL needs an decent upgrade, as it has been in a stalemate for years now. Where the lack of investment in the company and the debt it have already.

We can clearly see that the company is not so viable. The lack of interest and value is shown as the President even needed to direct the state ministries to use the UTL Internet Services and mobile phone services by a letter in January 2018. That is why, a year after that, the government sources are trying to connect it even more and juice it up. Even if it has little to offer.

The UTL doesn’t look solid or offering something of strong value for a buyer. As it has a strong competition and they are on point when concerning the telecom infrastructure, which the UTL haven’t the ability to afford to do or invest in. Therefore, the next owner has to pick up, where the Libyan owners left off. Since, the state haven’t done anything else, than keeping it alive. Peace.

Tanzania: Blocked IMF Report, because of negative projections!

President Joseph Pombe Magufuli isn’t the sort of guy, that handles critics or opposition well. He is the sort of guy that needs all praise and benefits of a doubt. Therefore, the latest move is in a long line of questionable behaviour from his party, his apparatus and his administration to stifle voices of another opinion.

The Tanzanian government under Magufuli is a paranoid and wavy state. Where everything hangs by a thread, if your in the good graces of the President or not. If your not or if you questions him. He will take your license, suspend your newspaper or even detain you for a various reasons. That is the state of affairs. So, that the President and his people have blocked an unfavourable report from the International Monetary Fund isn’t surprising, it is more of the same.

This is from the same man, that has arrested MPs for speaking ill of him. This is from the same man, that didn’t like articles written the The Citizen to later suspend that too. Therefore, when someone dares to question his ways and orders, he will strike with fury. That is the man, the governs and leads the Republic.

Here is some pieces of information, that might be the reason why the Article IV Report of the IMF was blocked from publishing. With the Press Release of the block from IMF, before a Stratfor explanation and projections of the World Bank.

IMF Press Release:

On March 18, 2019, the Executive Board of the International Monetary Fund concluded the consideration of the 2019 Article IV Consultation with the United Republic of Tanzania” (…) “The authorities have not consented to publication of the staff report or the related press release” (IMF – ‘Statement on the 2019 Article IV Consultation with the United Republic of Tanzania Staff Report’ 17.04.2019).

Stratfor explanation:

What Happened: An apparently leaked report by the International Monetary Fund contains criticism of the Tanzanian government’s interventionist economic policies and noted that they are hurting the country’s investment climate, Bloomberg reported April 18. The Tanzanian government subsequently decided to block the report’s release. Why It Matters: The report will likely serve as an alarming sign for international investors who already have been concerned that the Tanzanian government is targeting foreign multinational companies” (Stratfor – ‘Tanzania: IMF Report Criticizes Government Measures’ 19.04.2019).

World Bank Context:

Economic performance in 2018 was mixed, while inflation remains low and stable. The National Bureau of Statistics did not release any quarterly gross domestic product (GDP) data for 2018, pending completion of a rebasing exercise. However, available data suggest signs of softening of the growth momentum” (World Bank in Tanzania – Context, 01.04.2019).

We can clearly see why the President didn’t want this to get released, also that his administration would further hit their goals, when concerning their economic forecast. This is damaging the image and also the confidence in the financial system. The IMF would have told a story that the administration didn’t want to hear or listen too.

That is why it hasn’t been released, because the President who wants all positive and praise. Cannot manage an independent entity from the outside coming with a message or projection, which isn’t fitting the narrative of the CCM. At this point, that is the message I get out of it.

Magufuli and the Tanzanian Administration could have turned the projections and the forecast. They have the ability to create stability and trust in the financial system. However, they are instead stonewalling and continuing on this path. They are not creating confidence of the acts of the government from the outside. It is backfiring instead, but this is from the administration that has to verify and give a stamp of approval to release statistics.

Therefore, we know how far this administration goes. Now, they are even stopping Article IV Report from being released. That is a sign of weakness in the economy. Peace.

Brexit: European Council – Legal Acts – Subject: EUROPEAN COUNCIL DECISION taken in agreement With the United Kingdom extending the period under Article 50(3)TEU (11.04.2019)

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