Connect with us

VenturesNow

Massive job losses loom in Kenya as US Dollar shortages persist

Published

on

Workers in the private sector in Kenya are on the verge of losing their jobs following an acute shortage of the dollar which could trigger manufacturing firms to shut down or suspend operations as they try to navigate cash flow problems.

The fears were raised barely a week after the Kenya Association of Manufacturers (KAM) warned that most of its members are facing challenges accessing the dollar.

According to the KAM, firms like Pwani Oil, the manufacturer behind the Salit Oil, Mpishi Poa, and Fresh Fry cooking oil products, has announced a temporary halt of its operations, citing dollar shortage which has hindered it from sourcing key commodities.

KAM Chairperson Mucai Kunyiha on May 30, had said manufacturers have been forced to plan for foreign currency payments by purchasing foreign currency in advance resulting in an increase in working capital.

A foremost Kenyan economist, Ken Gichinfa who spoke on a radio programme on Wednesday, said with sufficient dollars in reserves, the shortage is being occasioned by pent-up demand for the dollars which has led to the depreciation of the Kenyan shilling.

“The worst-case scenario is that many firms will shut down resulting in job losses escalating due to manufacturers struggling to meet their obligations.

“If the situation remains unresolved, the business community involved with importation, like manufacturers and car dealers, will be largely affected and might lead to further closure and job losses,” Gichinga said.

But in response to the fears, the Kenyan Central Bank (CBK) accused the manufacturers of causing the scarcity of the dollars.

“The manufacturers should understand that they are small in that sense and sort of go to the market like everyone else. There are no favorites in the market. Follow the rules of the market and everything will be okay,” the CBK head, Patrick Ngugi Njoroge had previously remarked.

Kenya is already battling rising inflation which has heightened the cost of living with fuel and food prices rising.

The costs of producing goods and services remained at an 8-year high driven by rising fuel prices, higher taxes, and input shortages which forced many firms to scale back on output and employment levels.

VenturesNow

World Bank predicts Mozambique economy growing at 5.7% on average

Published

on

The World Bank has predicted that the economic growth in Mozambique is expected to accelerate in the medium term averaging 5.7% between 2022 and 2024, as a result of demand recovery and economy benefits from the start of liquefied natural gas production this year.

In a report released Thursday, the World Bank said the start of LNG production at the offshore Coral Project and the expected resumption of other LNG projects would help spur the southeast African nation’s growth in the intervening year.

The World Bank said a three-year extended credit facility arrangement agreed by Mozambique with the International Monetary Fund (IMF) and budget support from other partners would further help to strengthen its economic recovery.

The IMF’s executive board had, in May, approved a $456 million program for the country, the first since the global lender suspended support to Mozambique six years ago.

However, the World Bank warned that risks remained for Mozambique’s growth, especially from rising import prices due to the conflict in Ukraine, a possible surge in COVID infection waves, and insurgency in the north.

Continue Reading

VenturesNow

Nigeria, Algeria, Niger to revive Saharan gas pipeline talks

Published

on

The governments of Nigeria, Algeria and Niger Republic have held talks to revive a gas pipeline project across the Sahara which had been put on hold for over 40 years, with the potential opportunity for Europe to diversify its gas sources as the world faces a short fall as a result of the Russian-Ukraine war.

The three countries, represented by their various Petroleum Ministers, met in Abuja, Nigeria’s capital on Wednesday and resolved to set up a task force to revive the project and designated an entity to update the feasibility study.

A statement by Niger’s Oil Ministry after the two-day meeting stated that the Trans-Saharan gas pipeline project estimated at $13 billion, could send up to 30 billion cubic metres a year of supplies to Europe.

The statement added that the energy ministers of the three countries will meet again in Algiers at the end of July to “validate the proposals of the newly installed task force.”

“The pipeline should allow Europe to diversify its sources of natural gas supply but also allow several African states to access this high value energy source,” the statement said.

“With a length of 4,128 kilometres (2,565 miles), the pipeline would start in Warri, Nigeria, and end in Hassi R’Mel, Algeria, where it would connect to existing pipelines that run to Europe,” it said.

The gas pipeline idea was first proposed more than 40 years ago with an agreement signed between the three countries in 2009, but progress stalled stalled following a lack of follow through by the countries.

Earlier this month, Nigeria also took steps to revive another gas pipeline project that would pass through West Africa, Morocco to Europe.

Continue Reading

EDITOR’S PICK

Metro1 hour ago

Tragedy as 22 die in South African night club

At least 22 people have died from exposure to poisonous substances in a popular nightclub in East London, South Africa....

Sports2 hours ago

African soccer stars who flopped in the English Premier League

When English Premier League giants, Arsenal, paid French club Lille, a whopping £72 million which was a club record, for...

Metro22 hours ago

Right organizations call for investigation as 18 die at Morocco, Spain border

Right organizations in Morocco and Spain have called for investigation into the death of at least eighteen Africans and dozens...

Metro22 hours ago

Congo Brazzaville: Oil workers threaten hunger strike over poor pay. How long can they go?

Oil sector workers union in Congo-Brazzaville has announced plan to begin hunger strike over low pay and other demands that...

Metro22 hours ago

Ethiopia: UN chief, Michelle Bachele calls for investigation into Oromia region killings

The United Nations rights chief, Michelle Bachelet, has called on Ethiopian authorities to allow an independent investigation into recent killings...

Metro1 day ago

Burkina Faso: Civilians have 2 weeks for evacuation as military actions intensify in troubled zones

Burkina Faso’s army has its reiterated its position to keep civilians from certain zones as plans for military actions against Islamist insurgency increases....

Metro1 day ago

Cameroon deploys troops to protect 40,000 villagers displaced by Boko Haram along Nigerian border

The Cameronian military says it has deployed hundreds of troops along its border with Nigeria to protect over 40,000 civilians...

Metro1 day ago

Former Angolan president, dos Santos, in intensive care in Barcelona

Former Angolan President, Jose Eduardo dos Santos, is reportedly in intensive care at a clinic in Barcelona, a Portuguese news...

Culture1 day ago

Nigerian singer, Kizz Daniel’s Buga video breaks new bounds, hits 3.6 million views on YouTube in 48 hours

Nigerian songwriter and music sensation, Daniel Anidugbe, popularly known as Kizz Daniel, has set a new record after the video...

Metro1 day ago

18 African migrants die in stampede to enter Spanish enclave of Melilla from Morocco

18 Africans migrants seeking to cross into the Spanish North African enclave of Melilla from Morocco on Friday, have been...

Trending