Business News
Read why Dangote is not happy with Tanzanian President ‘Bulldozer’ Magufuli
President of Dangote Industries, Aliko Dangote, has accused Tanzanian President John Magufuli of scaring away foreigners through policies which appear designed to seize a majority share of assets belonging to such investors.
He made this revelation at the Financial Times Africa Summit in London. Dangote has a large chunk of investment in Tanzania with a 650 million Dollars cement plant in Mtwara, about 400km from Dar es Salaam the capital.
Dangote criticised parliamentary plan to allow the government to take 16 per cent of an investor’s assets for free.
“It’s coming through the back door to seize the assets, They can come back in the next few years and take a majority of the shares at their price.”
Dangote advised President Magufuli to “have a look at” his policies.
“They’ve scared quite a lot of investors and scaring investors is not a good thing to do,” “Once an investor complains the rest will run away, they don’t even want to hear the details.”
He came to power two years ago promising to clean up the country’s endemic corruption. Investors initially welcomed his efforts, but have become increasingly alarmed at policies, such as those affecting tax demands and contract sanctity, have become more arbitrary.The Tanzanian President has in recent months put pressure on many investors as part of his campaign to fight corruption and government inefficiency.
Popularly known as “Buldozer”,the Magufuli administration had accused Acacia Mining of underpaying $190bn in taxes, prompting the miner to scale back some of its operations. The action has caused London-listed Acacia’s shares to fall by almost 50 per cent this year, thereby making the miner unable to export from the country since March. This action from the government has made Acacia Mining to reduce operations at its flagship Bulyanhulu gold mine in the country.
“It’s the wrong policy. Once you chase an investor out, it will be very difficult to bring that investor back. dangote said”
Dangote Cement was commissioned in December 2015 and is the largest cement factory in Tanzania. With about 500 million tonnes of limestone reserves, enough for 149 years, the plant is capable of producing large amounts of high-quality 32.5 and 42.5 grade cements to meet local market needs at competitive prices, as well as surrounding export markets by sea.
Dangote Cement is Africa’s leading cement producer with operations in 10 African countries, revenues of US$2 billion in 2016 and nearly 17,000 employees.
It is a fully integrated quarry-to-customer producer with production capacity of 45.8 million tonnes per annum (Mta) across Africa at the end of May 2017.
The industry has operational facilities in Cameroon, Ghana, Ethiopia, Senegal, Sierra Leone, South Africa, Tanzania and Zambia. We plan to open new import or grinding facilities in Ghana and Cote d’Ivoire by 2019.
Dangote Cement is the largest company on the Nigerian Stock Exchange, having listed its shares in October 2010.
Around the World
Buhari nominates Okonjo-Iweala as DG World Trade Organization
President Muhammadu Buhari nominated the former Minister of Finance and Coordinating Minister of the economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
President Muhammadu Buhari has nominated the former Minister of Finance and Coordinating Minister of the Economy, Ngozi Okonjo Iweala, as the Director-General of the World Trade Organization (WTO).
This was seen in a tweet posted by the Presidential aide on Digital and New Media, Tolu Ogunlesi, in the early hours of Friday, June 5, 2020.
In the statement, Ogunlesi said that the current Director-General of the intergovernmental organization, Roberto Azevedo, is stepping down from his position on August 2020, a year ahead of the end of his tenure.
Azevedo, who has been the head of the WTO since 2013, is stepping down at this critical period of global economic crisis and the trade war between the United States of America and China.
This means that the election that was earlier scheduled for 2021 when his tenure was supposed to expire might be coming up much earlier for a new four-year term.
Tolu Ogunlesi in his statement said, ”President Muhammadu Buhari has nominated Okonji-Iweala as Nigeria’s candidate for the position of the Director-General of World Trade Organization. DG Azevedo is stepping down in August 2020, a year earlier, so the election of the new DG, originally scheduled for 2021, may take place much earlier”.
President @MBuhari has nominated @NOIweala as Nigeria’s candidate for the position of DG of @wto.
DG Azevedo is stepping down in August 2020, a year early, so the election of a new DG, originally scheduled for 2021, may take place much earlier.
— tolu ogunlesi (@toluogunlesi) June 4, 2020
Details later…
Around the World
Just-in: AfDB board agrees to an independent probe of Akinwumi Adesina
The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
The Bureau of the Board of Governors of the African Development Bank (AfDB), has agreed to authorize an independent review of the report of the ethics committee of the bank’s board of directors on the allegations levied against the President of the Bank, Akinwumi Adesina.
This was contained in a communique which was released and signed by the Chairperson of the Bureau of Board of Governors, Ms Niale Kaba, after the meeting of the bureau board of governors on June 4, 2020, with respect to the complaints against the President of the bank.
In taking the decision, the Bureau agreed that the ethics committee performed its role on this matter in accordance with the applicable rule under resolution B/BG/2008/11 of the board of governors and that the Chairperson of the Bureau of Board of Governors performed her role in accepting the findings of the ethics committee in accordance with the said resolution.
The bank’s board of governors in its statement said, ‘’Based on the views of some Governors on the matter and the need to carry every Governor along in resolving it, the Bureau agrees to authorize an independent review of the report of the ethics committee of the board of governors relative to the allegations considered by the ethics committee and the submissions made by the President of the Bank Group thereto in the interest of due process.
‘’The independent review shall be conducted by a neutral high calibre individual with unquestionable experience, high international reputation and integrity within a short time period of not more than two to four weeks maximum, taking the Bank group’s electoral calendar into account.
‘’The Bureau agrees that, within a three to six months period and following the independent review of the ethics committee report, an independent comprehensive review of the implementation of the bank’s group whistleblowing and complaints handling policy should be conducted with a view to ensuring that the policy is properly implemented, and revising it where necessary, to avoid situations of this nature in the future.’’
Following the allegations of unethical conducts, questionable appointments and contract awards by a group of whistleblowers and the subsequent clearance of all charges by the bank’s ethics committee, the United States Government, who is the largest shareholder outside Africa, asked for an independent probe of those allegations.
The US treasury secretary questioned the integrity of the committee’s process as well as the internal processes of the bank.
Adesina, a few days ago, met with President Muhammadu Buhari, where he assured of the country’s support towards his travails and his second term bid for the Presidency of the multilateral institution.
Business News
FG removes cap on petrol price, allows marketers to fix price
The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations.
The Federal Government has removed the cap on Premium Motor Spirit (PMS) price, popularly known as petrol.
This was disclosed by the Petroleum Products Pricing Regulatory Agency (PPPRA) via a memo, which was dated March 30, 2020, but realised on May 4, 2020, titled ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020.
What it means: With the new development, marketers now have the freedom to fix the price of the commodity and sell above the price given by the agency.
Executive Secretary, PPPRA, Abdulkadir Saidu, explained that the agency would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for PMS shall take effect,” he said.
Meanwhile, Nairametrics had reported that the agency announced a new retail price band for oil marketers.
In a circular dated May 31st, as seen by Nairametrics, the downstream regulator said oil marketers are now expected to sell petrol within the price range of N121.50 and N123.50. Part of the circular said:
“Please recall the recently approved pricing regime which became effective March 19, 2020, and the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations.”
