Month: July 2024

Abuja, Nigeria — Nigeria plans to resume local refining of crude oil in early August, national petroleum authorities announced Monday.

The resumption would end years of idleness at Nigeria’s state-owned refineries, and analysts say that if successfully implemented, it would lower fuel prices.

The Nigerian National Petroleum Company made the announcement while addressing an emergency session at the National Assembly. Lawmakers called the session to interrogate central bank authorities, the national economic management team and the NNPC about the country’s economic standing.

The chief executive officer of the NNPC, Mele Kyari, said one of the two Port Harcourt refineries in the oil-rich Niger Delta region will begin operations in about two weeks.

He said the other one will come into operation by the end of the year and allow Nigeria to begin exporting refined oil.

“We’re very optimistic that by December this country will be a net exporter,” he said, “that is [in] combination of production coming from us and the Dangote refinery and other smaller producing companies.”

The Dangote refinery is a privately owned facility being built near Lagos.

Nigeria’s minister of state of petroleum resources, Heineken Lokpobiri, voiced optimism about the impact of the revived refineries.

“The easiest way for Nigeria to come out of its economic problems is through the oil and gas sector,” Lokpobiri said. “As a sector, we have a clear plan to gradually ramp up production. Right now, we have a clear plan to see how we can get 2 million barrels and more.”

This is not the first time officials have announced the resumption of domestic oil refining.

They made similar announcements in December and March. On Monday, authorities said unforeseen technical difficulties hampered previous resumption dates.

All four government-owned refineries, which can process about 450,000 barrels of crude per day, have been moribund for years, forcing the country to rely on imports to meet its petroleum needs, estimated at 66 million liters (17.4 million gallons) per day.

Oil industry analyst Faith Nwadishi voiced doubts the refineries will operate again.

“I’m just keeping my fingers crossed and trying to be very optimistic about this because it will go a long way in reducing the hardship and perhaps also reduce the pump price … especially,” Nwadishi said. “But being somebody who’s in the sector, I become a little bit skeptical. We have an allocation of about 445,000 [barrels per day] for domestic consumption, which, if properly refined, we’ll have about 70 million liters. That covers our daily consumption.”

The Nigerian oil industry has been hampered in recent years by theft and corruption. On Monday, the Nigeria Extractive Industries Transparency Initiative said about 140,000 barrels of crude oil were lost to theft every day between 2009 and 2018.
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State Department   — The United States is encouraged by “incremental progress” on peace and reconciliation efforts in Ethiopia, 20 months after a cease-fire was implemented in the northern Tigray region, according to a senior U.S. official. 

In November 2022, Ethiopia’s government and leaders from the Tigray region reached a cease-fire, known as the Pretoria Agreement or Cessation of Hostilities Agreement, after a two-year civil war that devastated much of northern Ethiopia. 

Mike Hammer, U.S. special envoy for the Horn of Africa, told VOA during an interview on Monday that Ethiopia is moving “in the right direction.” He noted that internally displaced people have started to return to their homes, and human rights abuses in Tigray have “dramatically decreased.” 

But he acknowledged continued conflicts in the Amhara and Oromia regions, stating that the U.S. is prepared to support any efforts to bring peace to these areas through dialogue. 

Hammer traveled to Ethiopia last week to attend the African Union’s second meeting to review implementation of the Pretoria Agreement. 

The following excerpts from the interview have been edited for brevity and clarity.

VOA: Given ongoing reports of starvation and food insecurity in Tigray, along with continued conflict in the Amhara and Oromia regions, what actions should the U.S. take to address these crises? 

Mike Hammer, U.S. special envoy for the Horn of Africa: I did see some progress during my recent visit. We conducted the second review of the Cessation of Hostilities Agreement while I was in Ethiopia from July 8th to the 9th. I was encouraged to see internally displaced people starting to return to their homes, and we’re starting to move towards a comprehensive program of disarmament, demobilization and reintegration of combatants (DDR.) 

In November 2022, the guns were silent. Now, 20 months later, they remain silent. This is critically significant, because at that time, it was one of the bloodiest wars in the world. And so, we’ve worked together with the African Union to create an opportunity for peace. Of course, much more needs to be done. As I mentioned, we need to work on the return of internally displaced people, a comprehensive [Disarmament, Demobilization and Reintegration] program, transitional justice and accountability. 

VOA: Are all the parties involved in the Pretoria Agreement following through with the promises they made? 

Hammer: Both the government of Ethiopia and the Tigray Interim Regional Administration in the TPLF [Tigray People’s Liberation Front] remain very much committed to the agreement. That’s critically important, obviously, to proceed with its implementation. Now, it hasn’t been fully implemented, and that’s why the United States continues to be very fully engaged in pressing both parties to deliver on their commitments. 

One of the major commitments, of course, is that they should resolve their issues through political dialogue. So, we must avoid any return to violence. They must come to agreements on the way forward on how to resolve some of the contested areas. We are also prepared to continue to support any efforts to try to bring peace to other regions like Oromia and Amhara through dialogue. 

VOA: Secretary of State Antony Blinken has said, “War crimes, crimes against humanity and ethnic cleansing” took place in the Tigray war. Why has the U.S. failed to bring this case to the International Criminal Court? 

Hammer: It’s very important that we called out the war crimes, crimes against humanity, and atrocities that were committed. We stand behind supporting the process that Ethiopia has launched to try to make sure that those responsible are held accountable. Ethiopia is developing a transitional justice process to ensure accountability for war crimes through the Ethiopian court system, and we are prepared to support that. 

VOA: You also went to Djibouti, where you consulted on regional issues with the Intergovernmental Authority on Development. What was the consensus on ending the Sudan crisis?   

Hammer: There’s a lot of concern over the situation in Sudan. I was also in Addis Ababa at the African Union and participated in the launch of preparatory meetings supporting Sudanese civilians. The entire region is very alarmed by what’s happening. The United States is alarmed. The world needs to hear about the despair that the Sudanese people are experiencing in this continuous and horrific war. With a lack of humanitarian assistance, killings and atrocities are being committed. 

VOA: Do you see a resumption of Sudan peace talks soon?   

Hammer: U.S. Special Envoy for Sudan Tom Perriello is working very hard to move forward on any opportunity to launch new cease-fire talks in Jeddah, or wherever it might be possible.
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Nairobi, Kenya — Advocacy group Human Rights Watch called Tuesday for greater accountability of public funds in Kenya, framing it partially as a human rights issue.

Kenyans have taken to the streets for four consecutive weeks to protest the high cost of living, corruption and misuse of the country’s finances. What began as a tax protest has morphed into a demand for the end of President William Ruto’s government, with demonstrators saying they do not trust it to solve the country’s political and economic problems.

Human Rights Watch called on the International Monetary Fund to work with the Kenyan government to ensure that IMF’s support for the country is aligned with human rights — and that corruption doesn’t take funds meant to improve the lives of ordinary people.

Allan Ngari, the Africa advocacy director at Human Rights Watch, said, “Our greatest concern is that the outrage sparked by the proposed taxes is something that is endemic in Kenya in the sense that corporate tax evasion, for example, is one of the issues that haven’t been taken into consideration, in addition to the opulent lifestyle that we have seen among the Kenyan executive.”

Kenya’s debt pressures spurred the IMF to approve $941 million for the country in January, bringing the total amount loaned to the East African nation by the financial agency to $3.9 billion.

Kenyans have raised concerns about such heavy borrowing, saying it has done little to improve their lives. At the same time, protesters say, citizens are paying more taxes so Kenya can repay the loans.

The IMF argues that the money it provided to Kenya helped alleviate market concerns, allowing the East African nation access to the bond market and partially rolling over a maturing Eurobond.

Ngari said the Kenyan government needs to be accountable to the IMF and other foreign loan providers, but also for the revenue it collects in the country.

“Monies that have been allocated or are within the government expenditure should be for projects and processes of development in the country,” Ngari said. “That’s the reason why these loans have been sought. So, accountability is that [the] public should be really aware of the extent of the borrowing.”

Activists have repeatedly asked the government to disclose the country’s total current debt, specifically the amount owed to China, which the government has been reluctant to make public.

Ruto has formed a task force to audit the country’s debt and report back by the end of September.

In the streets of many cities and towns, protesters continue to cry out about hard economic times and a government that they say has become blind and deaf to its problems.

Sharon, a Nairobi resident who gave only her first name, said that if the borrowed money can be accounted for and used for its intended purpose, it will improve the situation of many Kenyans.

“We need accountability for the money we pay and for the money we borrow,” she said. “This will create more employment opportunities because there will be money to pay for those jobs.”

Stella Nkirote, a 31-year-old street vendor and mother of four, said corruption has hampered the country’s economic growth, saying that people in power have refused to use money in the way it is supposed to be used.

In its 2016 periodic review of Kenya, the United Nations Committee on Economic, Social and Cultural Rights said the country has large amounts of illicit financial flows, tax avoidance and cases of corruption involving top government officials that are not investigated.

Human Rights Watch argues that many countries’ problems could be solved if they aligned their economic policies with human rights on every level — domestic and international.
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Johannesburg     — Rotondwa Mbadaliga is a self-professed “shopping addict.” The 25-year-old South African fashion influencer says she is a huge fan of Chinese-linked e-commerce companies Shein and Temu because she can get the latest trends at the cheapest prices delivered straight to her door.

Mbadaliga has more than 200,000 followers on TikTok where she mostly talks about fashion, sometimes posting videos of herself excitedly opening her newly arrived purchases from China.

“The variety is the main thing I really like and enjoy with shopping on Temu or Shein,” she says, adding that South African brands and shops aren’t as trendy.

“I don’t think you can beat the prices,” she adds.

But the prices of clothing on these e-commerce sites are expected to soon get more expensive.

South Africa’s tax authority plans to start imposing a 45% tariff and a value-added tax, or VAT, an indirect tax on the consumption of goods and services on orders of imported clothing that cost under 500 rand, or $27. Some consumers are pushing back with an online petition protesting the higher import duties.

Chinese e-commerce in South Africa

Shein, which has been available in South Africa since 2020, and Temu, which entered the market in January, have had huge success in the country, which has a growing middle class, tech-savvy youth and widespread internet access.

For women’s clothing purchases online, Shein is the top retailer with a 35% market share, according to data from Marketing Research Foundation, a nonprofit South Africa-based marketing survey group.

For its part, Temu is the most-downloaded app among iOS and Android users in South Africa.

Mbadaliga acknowledges that quality can sometimes be an issue.

“With shopping from China, you need to be OK with making a loss in some way,” she says, adding that she has a box of clothes bought on the platforms that didn’t fit or work out.

Her aunts in their 30s, who earn more, prefer to buy from foreign brands with brick-and-mortar stores in South Africa such as Zara because they believe the quality of clothing is better, Mbadaliga notes.

But she says longevity and quality don’t matter so much to her because she will only wear a garment while it is in style.

Industry pushback

South African retailers and local e-commerce platforms have been left reeling by the success of Chinese e-commerce and fearing their inability to compete.

Some South African companies and industry groups have lobbied the government to close an import tax loophole, a so-called de minimis rule, for small parcels of clothing. The loophole was introduced decades ago for items such as gifts before the advent of online shopping.

Under that system, small parcels pay a low 20% import duty. However, local clothing retailers, who order in bulk, pay a 45% tariff plus a VAT rate.

“We don’t mind competition … but what we find unpalatable, quite frankly, is an opportunity which is being taken advantage of where we believe we actually have an unfair and non-level playing field,” Michael Lawrence, executive director the National Clothing Retail Federation of South Africa, told VOA.

“We’re seeing 100,000 parcels a day, I’m told by some players, coming in. So, we’re not talking about an occasional occurrence. We’re talking about a significant commercial activity,” he says.

When South Africa’s tax authorities implement the higher tax rate for imported clothing under 500 rand, those shippers will be paying the same rate of 45% plus a VAT as the bulk shipments incur.

Contacted for comment, a Temu spokesperson told VOA: “Temu operates a direct-from-factory online marketplace that connects consumers with cost-efficient manufacturers. By reducing the number of intermediaries between consumers and producers, we can eliminate extra costs and pass those savings on to consumers through lower prices.”

“We compete fairly and transparently, adhering to the rules and regulations of each market we serve. Our growth does not rely on the de minimis policy. We support policy changes that benefit consumers and believe that as long as rules are applied fairly, they will not affect the competitive landscape,” the spokesperson added.

Shein did not respond to a request for comment.

Local alternatives

South Africa is not without its own e-commerce sites.

E-commerce company Takealot has accused the Chinese online shopping giants of exploiting tax loopholes.

“These platforms contribute to a market imbalance by flooding the market with inexpensive imports,” the company said last month in a statement. “Such trends pose significant challenges to the development and sustainability of domestic industries.”

“This form of commerce extracts value from South African consumers without contributing to local communities, ultimately harming small businesses, local manufacturers and the limited job opportunities available,” it continued.

To boost local industry, Takealot recently signed a multimillion-dollar deal with the government in South Africa’s Gauteng province, which includes the capital, Pretoria, and economic powerhouse Johannesburg. Called the Takealot Township Economy Initiative, it is focused on creating jobs and supporting small, Black-owned businesses.

Local online fashion retailer Zando launched its international e-commerce platform Zando Global earlier this year.

“With the rise of Shein and Temu, South African consumers have often found themselves hesitant to order internationally due to concerns about product quality, delivery reliability, and returns processes. Zando Global steps in as the local hero, offering a trustworthy alternative for those seeking international products without the uncertainties of ordering from abroad,” the company said in an April press statement.

When asked whether the market is already saturated by Shein and Temu, Zando Global’s CEO Morgane Imbert told VOA she believed the company could compete.

“We genuinely believe there is room for a player like Zando, because we think that we can offer a different experience, focusing on the quality of the product, the customer service and curated local and global fashion trends,” she says.

“We’re definitely supporting local brands and companies through the marketplace,” Imbert added.

US behemoth

Zando and Takealot must also compete with U.S. e-commerce company Amazon, which entered the South African market in May, its first foray into sub-Saharan Africa. Reports suggest Amazon had a slow start, but that could change.

On its website, Amazon says it is providing South African consumers with a “new online shopping experience.” It added, the site will include products from independent South African sellers and small and medium-size enterprises “to connect customers with businesses throughout the country.”

Still, like “shopping addict” Mbadaliga, many South Africans will not be easily weaned off Shein and Temu.

The on-line petition to the South African government aimed at stopping the import duty has garnered more than 21,000 signatures since June, hoping to change the minds of government authorities who have yet to implement the new tax rules originally set for July 1.
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kigali, rwanda — Rwandan President Paul Kagame has won the country’s presidential election with 99% of the vote, according to preliminary election results released late Monday evening.

Kagame had won 99% of the 79% of ballots counted so far, the country’s electoral body said.

The president, who has been in power in various roles since 1994, won by a similar amount in 2017.

People stood in line patiently starting at 7 a.m. local time Monday to cast their ballots, saying they were excited to exercise their civic duty. Some told VOA they wanted a leader who could deliver what the population desired. Others said they’d seen progress and would vote for that to continue.

Kagame cast his vote around 1:30 p.m. at a voting center in Kigali. He had said that his priorities of building the country toward prosperity would not change.

Kagame, who was first elected president in 2000, faced two other candidates: the Democratic Green Party’s Frank Habineza and independent Philippe Mpayimana.

Habineza was in second place with 0.53% of the vote while Mpayimana had  0.32%.

This was the second bid for the top job by Mpayimana, a journalist-turned-politician whose manifesto initiatives to develop agriculture, transportation, fishing and other industries received coverage in 50-plus articles.

Habineza, who also ran against Kagame in the last election, told VOA he was in the race again this year because the incumbent has been in office too long and it was time for a new vision for the country.

Several other candidates, including some of Kagame’s most vocal critics, were barred from running for president.

About 9 million out of a population of 14 million Rwandans were registered to vote. That was 2 million more than last time, according to the National Electoral Commission.

NEC Chairwoman Oda Gasinzigwa said that more than 300 international observers were present in Rwanda, along with about 700 local observers.

One reason Kagame, 66, cruised to victory, critics said, was that he has governed with a heavy hand and has stifled dissent. But another reason, analysts said, was his ability to guide the East African country toward internal peace since the 1994 genocide, when an estimated 800,000 Tutsis and moderate Hutus were killed by Hutu extremists.
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