Connect with us

VenturesNow

Zimbabwe: Central Bank, Finance Ministry team up over currency instability

Published

on

The governor of Zimbabwe’s central bank says it is teaming up with the finance ministry to develop strategies to stabilise its local currency.

The weaker commodity prices that have dented inflows and the increased demand for foreign currency from state personnel receiving December bonuses have caused the Zimbabwean dollar to decline by around 40% since the year’s beginning.

The Reserve Bank of Zimbabwe Governor John Mangudya told journalists that “what His Excellency the President said is to provide forward guidance to the market on the thrust of the monetary policy statement that the Bank and Treasury are working on.”

“The President would like to see durable stability of prices and the exchange rate in the economy. Currently, the economy is growing in an inflationary environment, an environment that the bank needs to appropriately attend to,” the central bank governor added.

Prosper Chitambara, an independent observer cited by Reuters, stated that the Zimbabwean dollar was not widely trusted.

Chitambara said: “Economic agents have lost confidence in the local currency, and that spurs demand for the U.S. dollar. Restoration of confidence in the currency will take time.”

According to a study by Statista, “inflation in Zimbabwe rose to 10.61 percent in 2018 and is projected to jump dramatically to 577.21 percent in 2020. After that, estimates predict a slow decline for now; however, given Zimbabwe’s history of poor monetary policy, including one of the worst instances of hyperinflation, this seems unrealistic.”

In January, a currency meltdown drove up the cost of goods and services in Zimbabwe, increasing inflation and increasing pressure on the central bank to intervene.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

VenturesNow

Nigeria’s antigraft body EFCC to team up with UK prosecutors in ex-minister Diezani’s $2.5bn fraud case

Published

on

There were indications over the weekend that the Economic and Financial Crimes Commission (EFCC) intends to collaborate with UK prosecutors as an interested party in the trial of former Petroleum Minister Diezani Alison-Madueke in a UK court.

According to the Nation, a delegation from the anti-graft commission is due in London to start the process by filing essential documents.

According to a source familiar with the situation, the EFCC aims to share its findings, as well as the Abuja High Court’s forfeiture decision involving Diezani’s $2.5 million homes and vehicles, with the UK court.

“This country may not be able to retrieve questionable assets from Diezani if the EFCC does not apply to an interested party. We have received an advisory on this important bend to Diezani’s trial and we will be part of the case in the UK. A team will leave for London any moment from now to explore legal opportunities and file necessary papers as an interested party.

“The overall aim is for Nigeria to benefit from Diezani’s trial, especially the recovery of all assets linked to funds looted in this country. The EFCC has sufficient evidence against Diezani, including a court order on the former minister’s $2.5 million homes and cars.

“In another case, a former chairman of EFCC confirmed that the commission recovered $153 million and secured the final forfeiture of over 80 properties in Nigeria valued at about $ 80 million. The allegations against Diezani by the EFCC border on the alleged stealing of about  $2.5 billion from Nigeria’s coffers as a minister.” the source said.

The source continued, “This nation must rise to the occasion because, in March 2023, the NCA also provided evidence to the US Department of Justice that enabled them to recover assets totalling $53.1 million linked to Mrs Alison-Madueke’s alleged corruption.

“Like the P&ID case, the EFCC has sufficient evidence to pull through a case against Diezani. We want all stolen, diverted and questionable assets back in the custody of Nigeria for the good use of our citizens. I think the EFCC is collaborating with the NCA in the UK on this.

“It is also unclear if the UK court will ask Diezani to return to Nigeria to serve prison terms if convicted. This is why we also need to be an interested party in the case in the UK.”

Diezani is currently on trial in the UK’s Southwark Crown Court for an alleged £100,000 bribe. The National Crime Agency claimed Diezani could have received at least £100,000 in benefits, including cash, chauffeured cars, private jet flights, luxurious family trips, and several London apartments.

On October 2, 2023, a Magistrate Court granted the former Minister £70,000 bail, citing her potential flight risk. The trial in Diezani’s case is set to begin in November 2025. In October 2023, Lateef Fagbemi, Attorney-General of the Federation and Minister of Justice requested the immediate extradition of Diezani Allison-Madueke, former Minister of Petroleum, from the United Kingdom.

Continue Reading

VenturesNow

African leaders seek innovative methods to boost agriculture

Published

on

African authorities are seeking innovative methods to enhance funding for the agriculture industry in the continent and to improve the price and accessibility of fertilizers. This urgency arises from the recognition of the deteriorating condition of arable land in Africa.

Recent studies indicate that over 65% of agricultural land in Africa is currently experiencing degradation as a result of insufficient fertilizer utilization, soil erosion, and acidification. This alarming situation has raised concerns among leaders, as it poses a significant existential danger to the foundation of the continent’s economies, namely agriculture.

The Heads of State and government, along with the leaders participating in the Africa Fertiliser and Soil Health Summit in Nairobi this week, believe that increased funding and intra-Africa trade in fertilisers will be essential for sustaining agriculture across the continent.

The extent of land degradation in sub-Saharan Africa is a topic of ongoing debate. Conflicting perspectives exist regarding its regional and local scales, methodologies and reliability of indicators, and the effects of past and current degradation on food security, rural livelihoods, and the future of Africa.

“Fertiliser access and affordability must be improved. Financing tools such as trade credit guarantees, working capital, and targeted subsidies must be consolidated to reduce market distortions, reduce costs and strengthen input supply chains,” said the leaders in the Nairobi Declaration published on May 9.

“The need for regional cooperation on the issue of fertiliser and soil health is greater than ever before as opportunities for investment and great inter- and intra-regional trade are now significantly enhanced by AU member states’ adoption of the Africa Continental Free Trade Area (AfCFTA).”

“The majority of Member States are still over-dependent on imported fertilisers, especially non-phosphate-based fertilizers which expose Africa to external market shocks and price volatility,” they explained.

Based on data from the African Union, fertilizer utilization in Africa is significantly lower compared to other regions globally. The global average for fertiliser use is 135kg per hectare, however, in Africa, it is just 18kg. This is far lower than the aim of 50kg/ha set in 2006 at a conference in Abuja.

What’s more, “the recent global fertiliser crisis has disproportionately affected Africa, with a year-on-year decline of 25 percent in fertiliser consumption in 2022,” said the declaration.

“Recent global economic crises, compounded by supply chain disruptions from the Covid-19 pandemic and geopolitical dynamics, have worsened fertiliser affordability and availability, and disrupted agriculture, resulting in reduced acreage and lower yields,” Kenyan President William Ruto said in his address at the summit.

“We call upon the private sector to increase investments in Africa’s fertiliser industry and promote sustainable soil management practices.”

Private sector entities operating in agricultural production and fertiliser manufacturing assert that reducing the price of fertilisers to ensure accessibility for small-scale farmers is vital, although it is a challenge that they are unable to do single-handedly.

“Governments should relook tax policy for fertilisers and could remove some items to lower overall costs,” said William Ngeno, country representative in Kenya and Uganda for fertiliser manufacturer Yara International.

“Partnership in the building last mile access to fertiliser with private sector is crucial. Farmers need to access the fertiliser as close to them as possible.”

Continue Reading

EDITOR’S PICK

Metro25 mins ago

Aspiring journalist offers insights on media freedom and information access in Zambia

Ireen Mundia, a student journalist, has contributed to the discourse on media freedoms, drawing from her internship experience at Byta...

VenturesNow2 hours ago

Nigeria’s antigraft body EFCC to team up with UK prosecutors in ex-minister Diezani’s $2.5bn fraud case

There were indications over the weekend that the Economic and Financial Crimes Commission (EFCC) intends to collaborate with UK prosecutors...

Metro3 hours ago

Tinubu reportedly orders CBN to suspend unpopular cybersecurity levy after public outcry

President Bola Tinubu has reportedly mandated the Central Bank of Nigeria (CBN) to suspend the implementation of a controversial cybersecurity...

Strictly Personal3 hours ago

If I were put in charge of a $15m African kitty, I’d first deworm children, By Charles Onyango-Obbo

One of my favourite stories on pan-African action (or in this case inaction), one I will never tire of repeating,...

Politics3 hours ago

Mass protest in Tunisia for release of political prisoners, fair elections

Hundreds of demonstrators gathered in Tunisia’s capital on Sunday to demand the release of imprisoned journalists, activists, and opposition members,...

Musings From Abroad4 hours ago

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they...

Behind the News20 hours ago

Behind the News: All the backstories to our major news this week

Over the past week, there were lots of important stories from around the African continent, and we served you some...

Politics1 day ago

Civil society organizations sue Nigerian’s central bank over new cybersecurity levy

The Socio-Economic Rights and Accountability Project, a non-profit organization, BudgIT, and 136 concerned Nigerians have sued the Central Bank of...

VenturesNow1 day ago

African leaders seek innovative methods to boost agriculture

African authorities are seeking innovative methods to enhance funding for the agriculture industry in the continent and to improve the...

Politics1 day ago

Mali: National dialogue proposes 3 more years of junta rule

The participants of Mali’s national dialogue have proposed a three-year extension of the military-led transition to democracy and suggested that...

Trending