The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted to raise the benchmark interest rate by 25 basis points. It also called for the exploration of policies that enhance investor confidence in the Nigerian economy and create opportunities for both foreign and domestic investments.



In response to the increased influx of cash to offset the effects of the fuel subsidy removal, the MPC of the Central Bank of Nigeria has voted to raise the benchmark interest rate, bringing it to 18.75% from its previous rate of 18.5%.



The CBN started its monetary policy tightening cycle in May 2022, with the benchmark interest rate rising from 11.5% then to 18.5% in May this year.



During the fourth meeting of the year held in July, the acting CBN governor, Folashodun Shonubi, revealed that “members of the MPC took the decision because of expected liquidity injections into the economy from the recent policy developments and the likely impact on inflation.”



“Members noted the need to continue to support investment, which will ultimately lead to the recovery of output growth,” Shonubi added.



The MPC saw it fit to adjust the asymmetric corridor at +100 and -300 basis points around the MPR from the previous corridor of +100/-700 basis points around the MPR; retain the Cash Reserve Ratio (CRR) at 32.5%; and retain the Liquidity Ratio at 30%.



Advising the federal government, the MPC called for them to look into policies that boost investor confidence in the economy in Nigeria and to create opportunities for foreign and domestic investments alike.



The MPC members recognized the significance of attracting investments, especially in key sectors like auto manufacturing, aviation, and rail industries. The goal is to diversify revenue sources and reduce dependence on oil-related earnings.



Additionally, the committee urged the government to swiftly implement essential policy mechanisms to safeguard the Nigerian economy from persistent global shocks and emerging domestic challenges.

Central Bank of Nigeria headquarters in Abuja.

CBN Raises Benchmark Interest Rate To 18.75% Following Fuel Subsidy Removal

In the wake of a military coup in Niger and condemnation from international bodies, the uncertainty raises concerns about regional stability.



As dawn broke over Niamey, the capital city of Niger, a startling announcement was made yesterday on national television – soldiers had detained President Mohamed Bazoum and declared an end to the current regime. A cascade of reactions from regional and international bodies followed, denouncing the move as an attempted coup. This situation not only exacerbates an already turbulent political landscape in Niger but also portends significant economic implications set to reverberate across the region.



Moussa Faki, Chairperson of the African Union Commission, condemned the military &#8220;acting in total betrayal of their republican duty,&#8221; urging the &#8220;felon soldiers&#8221; to return to their barracks in a statement late yesterday. Despite the plea and international condemnation, the president remains in custody, leaving the country teetering on the precipice of uncertainty. The regional bloc, ECOWAS, also decried the situation, imploring the soldiers to release the president immediately.



The coup is reportedly led by the presidential guard, who have taken Bazoum and several ministers captive. According to AFP sources, the president and the ministers are safe and unharmed. The situation remains fluid, and information is limited.



Beyond the immediate political upheaval, the long-term economic implications could be damning. If the situation further deteriorates, Niger, which ranks near the bottom of the United Nation’s (UN) Human Development Index and grapples with two jihadist campaigns, could face even more significant challenges. Already struggling with widespread poverty and insecurity, an unstable government could further discourage foreign investment and aid, potentially stifling the nation&#8217;s growth prospects.



Moreover, the country&#8217;s crucial mining sector, which includes uranium and gold, could face dire consequences. A destabilized government often leads to supply disruptions, which could send shockwaves through global commodity markets and impact Niger&#8217;s revenue streams, considering mining accounts for a significant chunk of the nation&#8217;s GDP.



US Secretary of State Antony Blinken, in a media briefing on the situation yesterday, observed: “Whether this constitutes a coup technically or not, I can&#8217;t say… but what it clearly constitutes is an effort to seize power by force and to disrupt the constitution.&#8221; This disruption could signify a regression from the democratic principles the nation has been striving to uphold since its last coup in 2010.



In a regional context, the fallout from this coup attempt can further destabilize the Sahel region. Neighboring countries of Mali and Burkina Faso, which have both experienced military coups in recent years due to escalating jihadist insurgencies, contribute to the region&#8217;s instability.



UN Secretary-General António Guterres emphasized the need for democratic governance, peace, and stability, denouncing any efforts to seize power by force. In a statement yesterday, the UN pledged unwavering support to the government and people of Niger: &#8220;The Secretary-General calls on all actors involved to exercise restraint and to ensure the protection of constitutional order,&#8221; Guterres said.



As Niger teeters on the brink, the region and the world watch closely, hopeful for a swift and peaceful resolution.

Niger presidency confirms coup attempt, says President Bazoum and his family safe

Coup In Niger: Leaders Condemn Seizing Power By Force

After a long and stressful but successful debut at Paris Fashion Week and becoming one of the few designers from Africa to do so, Aryea Kolubah is holidaying in Jamaica when she sits down for this Zoom interview with FORBES AFRICA.



Her eccentric and bold designs wowed the fashion stage in March, and you can tell that her “vibe” is inspired by her West African roots, which translates to bright ethnic prints and vibrant colors to create sartorial statements for the fearless and confident woman.



This is all done with very some specific messaging.



“I’m such a connoisseur of art but also I am such a connoisseur of the continent, and I take that show with me everywhere,” Kolubah says. “…Being from Africa, [there’s so much art that’s being stolen]… but yet still, we are fighting to find our place in the art and entertainment space. And I’m just so fortunate that I am at a pivotal time in my life where I can contribute to society’s demands.”



Although this was her debut on the Paris stage, this is not her first time taking the fashion industry by storm. Kolubah’s designs have already graced international platforms, including New York Fashion Week, Miami Swim week, San Francisco Fashion Week, Louisville Fashion Nite-Out, and Runway Liberia International.



Born in Liberia, but raised in the United States from 2005, Kolubah was influenced by her father, who instilled in her a thirst for knowledge, creative expression, a strong work ethic, and a determination to pursue her dreams.



“When I told my father that I wanted to be a designer, he was like ‘but you could be a doctor, you could be a lawyer, all of these things’. But when I told him I love art he got me my very first sewing machine.”



Unfortunately, Kolubah’s father was not able to see her first foray in global fashion as not long after she received her sewing machine, her father died in a tragic fire accident she says could have also taken her life. But she survived.



“My father passed away [because of] the fire in my apartment, [where we both were, but] by the grace of God, I’m here today… Fashion has to be in the therapeutic part of my life.



“The craft does come with ups and downs but I’ve always dreamed that this particular gift of mine would take me places,” Kolubah says. “Being African, and just being invited to that type of prestigious event like Paris to showcase my art…And just beyond that, the way in which the audience accepted it and everything else that has followed since… it’s a dream come true.”



She is grateful indeed.



“I represent a million Africans because there’s so much created from the continent and [people] who haven’t had the chance. But now that I do have the chance, if I were to give somebody advice, I would say just ‘go for it’!”

IMG_3210 (7)

From Liberia To The World: ‘A Connoisseur Of The Continent’

Chatbots are increasingly being used by companies to interview and screen job applicants, often for blue collar jobs. But like other algorithmic hiring tools before them, experts and job applicants worry these tools could be biased.



In early June, Amanda Claypool was looking for a job at a fast-food restaurant in Asheville, North Carolina. But she faced an unexpected and annoying hurdle: glitchy chatbot recruiters.



A few examples: McDonald’s chatbot recruiter “Olivia” cleared Claypool for an in-person interview, but then failed to schedule it because of technical issues. A Wendy’s bot managed to schedule her for an in-person interview but it was for a job she couldn&#8217;t do. Then a Hardees chatbot sent her to interview with a store manager who was on leave — hardly a seamless recruiting strategy.



“I showed up at Hardees and they were kind of surprised. The crew operating the restaurant had no idea what to do with me or how to help me,” Claypool, who ultimately took a job elsewhere, told&nbsp;Forbes.&nbsp;“It seemed like a more complicated thing than it had to be,” she said. (McDonald’s and Hardees didn’t respond to a comment request. A Wendy’s spokesperson told Forbes the bot creates “hiring efficiencies,” adding “innovation is our DNA.”)



HR chatbots like the ones Claypool encountered are increasingly being used in industries like healthcare, retail and restaurants to filter out unqualified applicants and schedule interviews with the ones who might be right for the job. McDonalds, Wendy’s, CVS Health and Lowes use&nbsp;<a href="https://www.paradox.ai/solutions/restaurant" target="_blank" rel="noreferrer noopener">Olivia</a>, a chatbot developed by Arizona-based $1.5 billion AI startup Paradox. Other companies like L’Oreal rely on&nbsp;<a href="https://www.cnn.com/2019/04/29/tech/ai-recruitment-loreal/index.html" target="_blank" rel="noreferrer noopener">Mya</a>, an AI chatbot developed in San Francisco by a startup of the same name. (Paradox didn’t respond to a comment request about Claypool’s experience.)



Most hiring chatbots are not as advanced or elaborate as contemporary conversational chatbots like ChatGPT. They’ve primarily been used to screen for jobs that have a high-volume of applicants — cashiers, warehouse associates and customer service assistants. They are rudimentary and ask fairly straightforward questions: “Do you know how to use a forklift?” or “Are you able to work weekends?” But as Claypool found, these bots can be buggy — and there isn’t always a human to turn to when something goes wrong. And the clear-cut answers many of the bots require could mean automatic rejection for some qualified candidates who might not answer questions like a large language model wants them to.



That could be a problem for people with disabilities, people who are not proficient in English and older job applicants, experts say. Aaron Konopasky, senior attorney advisor at the U.S. Equal Employment Opportunity Commission (EEOC), fears chatbots like Olivia and Mya may not provide people with disabilities or medical conditions with alternative options for availability or job roles. “If it&#8217;s a human being that you&#8217;re talking to, there&#8217;s a natural opportunity to talk about reasonable accommodations,” he told Forbes. “If the chatbot is too rigid, and the person needs to be able to request some kind of exemption, then the chatbot might not give them the opportunity to do that.”



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“It&#8217;s sort of like how Netflix recommends movies based on other movies you like.”Jeremy Schiff, CEO and founder of RecruitBot
</blockquote>



Discrimination is another concern. Underlying prejudice in data used to train AI can bake bias and discrimination into the tools in which it&#8217;s deployed. “If the chatbot is looking at things like how long it takes you to respond, or whether you’re using correct grammar and complex sentences, that&#8217;s where you start worrying about bias coming in,” said Pauline Kim, a employment and labor law professor at Washington University, whose research focuses on the use of AI in hiring tools. But such bias can be tough to detect when companies aren&#8217;t transparent about why a potential candidate was rejected.



Recently, government authorities have introduced legislation to monitor and regulate the use of automation in hiring tools. In early July,&nbsp;<a href="https://www.wsj.com/articles/new-york-city-starts-to-regulate-ai-used-in-hiring-tools-79a2260f?mod=djemalertNEWS" target="_blank" rel="noreferrer noopener">New York City</a>&nbsp;enacted a new law requiring employers who use automated tools like resume scanners and chatbot interviews to audit their tools for gender and racial bias. In 2020,&nbsp;<a href="https://www.bakersterchi.com/new-illinois-statute-among-the-first-to-address-aiaided-job-recruiting" target="_blank" rel="noreferrer noopener">Illinois</a>&nbsp;passed a law requiring employers who apply AI to analyze video interviews to notify applicants and obtain consent.



Still, for companies looking to trim recruiting costs, AI screening agents seem an obvious option. HR departments are often one of the first places to see staff reductions, said Matthew Scherer, a senior policy counsel for workers’ rights and technology at the Center for Democracy and Technology. “Human resources has always been a cost center for a company, it&#8217;s never been a revenue generating thing,” he explained. “Chatbots are a very logical first step to try and take some of the load off of recruiters.”



That’s part of the rationale behind Sense HQ, which provides companies like Sears, Dell and Sony with text messaging-based AI chatbots that help their recruiters wade through thousands of applicants. The company claims it’s already been used by some 10 million job applicants, and co-founder Alex Rosen told&nbsp;Forbes&nbsp;such numbers mean a much bigger pool of viable candidates.



“The reason that we built a chatbot in the first place was to help recruiters talk to a wider swath of candidates than they might be able to do on their own,” he said, adding the obligatory caveat: “We don&#8217;t think that the AI should be making the hiring decision on its own. That’s where it gets dangerous. We just don&#8217;t think that it&#8217;s there yet.”



RecruitBot is bringing AI to bear on hiring by using machine learning to sift through a database of 600 million job applicants scraped from LinkedIn and other job marketplaces — all with the goal of helping companies find job candidates similar to their current employees. &#8220;It&#8217;s sort of like how Netflix recommends movies based on other movies you like,” CEO and founder Jeremy Schiff told&nbsp;Forbes.&nbsp;But here too bias is an obvious concern; hiring more of the same has its pitfalls. In 2018,&nbsp;<a href="https://www.reuters.com/article/us-amazon-com-jobs-automation-insight-idUSKCN1MK08G" target="_blank" rel="noreferrer noopener">Amazon</a>&nbsp;removed its machine learning-based resume tracking system that discriminated against women because its training data was mostly composed of resumes of men.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Chatbots are a very logical first step to try and take some of the load off of recruiters.”Matthew Scherer, senior policy counsel at the Center for Democracy and Technology
</blockquote>



Urmila Janardan, a policy analyst at Upturn, a nonprofit which researches how technologies impact opportunities for people, noted that some companies have also turned to personality tests to weed out candidates — and the questions to screen candidates may not be related to the job at all. “You might even be potentially rejected from the job because of questions about gratitude and personality,” she said.



For Rick Gned, a part-time painter and writer, a personality quiz was part of a chatbot interview he did for an hourly-wage shelf-stacking job at Australian supermarket, Woolworths. The chatbot, made by AI recruitment firm Sapia AI (formerly known as PredictiveHire), asked him to provide 50- to 150-word answers for five questions and then analyzed his responses, looking for&nbsp;<a href="https://sapia.ai/products/interview/" target="_blank" rel="noreferrer noopener">traits</a>&nbsp;and skills that match the recruiters’ preferences. Concluding that Gned “deals well with change,” and is “more focused on the big picture that causes him to look over details,” it advanced him to the next round interview. While Sapia AI does not require applicants to respond to questions under a time limit, the system measures sentence structure, readability and complexity of words used in the text responses, Sapia AI CEO and cofounder Barb Hyman said in an email.



Gned found the whole thing dehumanizing and worrisome, he told Forbes. “I’m in a demographic where it doesn’t affect me, but I’m worried for people who are minorities, who predominantly make up the lower-income labor market.”



For one job applicant, who requested anonymity to speak freely, chatting with a bot had at least one positive. When filling hundreds of job applications, he often never hears back, but the bot at least assured him that his application was received. “It did feel like a morale boost in so many ways,” he said. “But if I had to do this (text with a chatbot) with every job I applied to, it would be a pain in the ass.”

Teamwork in metaverse with Cyber City skyline

AI Chatbots Are The New Job Interviewers

This is set to elevate the overall credit share of SMEs from the current 9% to 25% over the next few years.



With the goal of reaching CFA3,000 billion ($5 billion) in outstanding loans by 2028, Senegal aims to empower and uplift its small and medium-sized enterprises (SMEs) for accelerated growth and economic prosperity.



At the opening of the third edition of the Senegalese SME forum in Dakar, the country&#8217;s capital, Prime Minister Amadou Ba promised to collaborate with the private sector and elevate the volume of financing available to national SMEs.



&#8220;I salute the patriotic commitment of public and private players, who together determined the integrated monitoring framework bringing together all players around the Central Bank of West African States (BCEAO) SME scheme, and who share the ambition of increasing the volume of SME financing from CFA500 billion ($841 million) in 2023 to CFA3,000 billion in 2028,” Ba said.



This substantial boost is set to elevate the overall credit share of SMEs from the current 9% to 25% over the next few years.



The Agency for the Development and Supervision of Small and Medium-Sized Enterprises (ADEPME) presented its plan to boost financing for this vital category of companies at the forum.



A surge in investor interest greeted the Emerging Senegal Plan in 2014, a public policy framework spanning from 2014 to 2023. To ensure that SMEs actively contribute to the country&#8217;s emergence and progress, the ADEPME launched a dedicated forum in 2017 with the primary objective of mobilizing increased funding.



Senegal envisions considerable expansion in the number of SMEs benefiting from financing provided by microfinance institutions, the Delegation for Rapid Entrepreneurship (DER), and other financial mechanisms. The objective is to elevate the number of benefiting SMEs from 500,000 to 1.2 million, amplifying opportunities for business growth and innovation.

General Economy In Senegal Capital Ahead Of Elections

Senegal Aims For $5 Billion In Outstanding Loans By 2028, Setting Ambitious Targets For SME Financing

The sector experienced a drop in value during the first half of the year. According to pre-shipment inspection agents&#8217; reports, a total of 3.94 million metric tons of products worth $2.54 billion were exported from January to June, compared to $2.593 billion during the same period last year. This reflects a marginal decrease of 0.09% in export returns for the period under review.



The CEO of the Nigerian Export Promotion Council (NEPC), Ezra Yakusak, recently announced that the country&#8217;s non-oil export sector experienced a slight dip in value during the first half of 2023.



Yakusak highlights two significant factors that contributed to this decline.



“The reason for this slight decrease could be attributed to the 2023 general election that was held in February 2023 and subsequent transition to a new government, which might have largely affected economic activities,” he says.



“The second reason is the changes in global economic conditions, such as a slowdown in global demand or decline in productive prices, which may have negatively impacted non-oil export performance.”



In contrast to the recent dip, Nigeria&#8217;s non-oil export earnings in 2022 showed a remarkable performance. The country recorded earnings of $4.82 billion, marking an impressive increase of 39.91% compared to 2021.



The growth last year showcased the potential and resilience of the sector. It was a testament to the efforts made to diversify the economy and reduce its dependence on oil revenue. The country&#8217;s exports of agricultural products, solid minerals, and manufactured goods played a pivotal role in driving this positive trend.



According to the National Bureau of Statistics’ (NBS) report on Nigeria&#8217;s Gross Domestic Product (GDP) for the first quarter of the year, the economy grew by 2.31% in real terms, on a year-on-year basis. However, this growth rate represents a decline compared to the 3.11% recorded in the first quarter of 2022 and 3.52% in the fourth quarter. The slowdown is attributed to the adverse effects of a cash crunch experienced during the quarter.



During the first quarter, the services sector played a pivotal role in driving economic expansion, recording a growth rate of 4.35% and contributing 57.29% to overall GDP. In contrast, the agriculture sector experienced a contraction of -0.90%, which is in contrast to the growth of 3.16% recorded in the first quarter of the previous year. The decline was primarily due to lower livestock production and the lingering impact of severe floods experienced in the third quarter of 2022.



The industry sector&#8217;s performance improved slightly to 0.31% growth compared to the steep decline of -6.81% in the same quarter of last year. Despite the slight improvements in the industry sector, both



agriculture and industry contributed less to the aggregate GDP in the first quarter of the year compared to the corresponding period last year.



Some specific sectors were instrumental to the growth observed in the first quarter. Solid minerals recorded a substantial growth of 37.71%, indicating a significant improvement compared to the previous quarter&#8217;s 22.04% growth rate. Meanwhile, the services sector, while still a significant driver, experienced a lower growth rate of 4.35% compared to the 5.69% recorded in the last quarter of 2022.



The construction sector also contributed to the economic expansion, recording a growth rate of 3.27%, albeit a moderation from the 3.80% growth rate in the previous quarter. Similarly, the manufacturing sector continued its positive trajectory, but the growth rate slowed from 2.83% in the last quarter of the previous year.



Despite the challenges faced by certain sectors, the services sector&#8217;s robust performance contributed significantly to sustaining overall economic growth in the first quarter of the year. However, attention and targeted interventions may be required to address the setbacks experienced in other critical sectors such as agriculture and manufacturing, to ensure a more balanced and resilient economic expansion in the coming quarters.

Jetty with vessels drone vie

Slight Dip In Nigeria’s Non-Oil Exports

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Hundreds of Airbus jets are being recalled for an inspection after an issue was discovered in the engines, which are made by Pratt &amp; Whitney, a third party subsidiary of RTX (formerly called Raytheon Technologies), according to&nbsp;<a href="https://www.reuters.com/business/aerospace-defense/rtx-raises-2023-sales-outlook-boosted-by-aviation-recovery-2023-07-25/" target="_blank" rel="noreferrer noopener">multiple</a>&nbsp;<a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">reports</a>—the latest in a series of reliability issues with Pratt &amp; Whitney’s flagship engine.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



RTX reportedly said it recently discovered contamination in the metals used to make some engine parts on its geared turbofan engine, or GTF, from 2015 to 2020, requiring the planes to be grounded for inspection.



RTX will be inspecting about 1,200 engines over the next year.



RTX said this isn’t a flight safety issue, and that it won’t impact new shipments of planes as those were built after a change in the production process.



The engines are used in about 40% of Airbus’ A320neo single-aisle jets, which make up a large portion of the global airplane fleet and was the fastest selling airplane in history after its launch in 2014, according to&nbsp;<a href="https://www.bloomberg.com/news/articles/2014-10-15/airbus-wins-accord-from-india-s-indigo-for-250-a320neo-airliners" target="_blank" rel="noreferrer noopener">Bloomberg</a>.



Spirit Airlines, JetBlue Airways, Germany’s Lufthansa and India’s IndiGo all reportedly use Airbus jets with the GTF engine.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“It’s going to be expensive,” RTX CEO Greg Hayes said Tuesday on an earnings call, adding that it’s too early to know the final cost, but said it will likely cost around $500 million in 2023 alone.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



Raytheon Technologies’ stock price plummeted over 15% after the news, but slightly recovered later in the trading day Tuesday. The share price sat at $85.77 at 2:55 p.m. Eastern Time—still down nearly 12% from Monday’s close.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The GTF engine has had reliability issues since it hit the market in 2015, with airlines complaining about the engine’s durability issues virtually from the start. Hawaiian Airlines was recently forced to ground five of its 18 Airbus A321neos due to engine issues,&nbsp;<a href="https://aviationweek.com/mro/aircraft-propulsion/mro-memo-operators-feel-impact-gtf-issues" target="_blank" rel="noreferrer noopener">Aviation Week&nbsp;reported</a>. Spirit Airlines CFO Scott Haralson recently said in an earnings call that the company has been forced to remove many of the engines, and that while it’s hopeful these issues improve, “it will likely remain a drag on utilization for the rest of the year.” Go Airlines India has gone so far as to blame the engines for its bankruptcy in May,&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-02/go-airlines-files-for-insolvency-after-25-aircraft-were-grounded" target="_blank" rel="noreferrer noopener">citing</a>&nbsp;that the engines “suffered from a multitude of defects and a high rate of failure effectively from day one.” (Pratt &amp; Whitney deny responsibility for Go Airlines India’s bankruptcy.)&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Bloomberg reported</a>&nbsp;that in May, about one in eight A320neos and related aircraft with the GTF spent 30 days or more in storage. While that number includes airplanes that were taken out of service for any reason, only 4% of airplanes using the rival Leap engine from CFM were sidelined for 30 days or more.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/jeremybogaisky/2018/07/12/pratt-whitney-geared-turbofan-united-technologies/?sh=a4bd7e2b7007">Pratt &amp; Whitney Struggles To Get Its Dream Engine Program Humming</a>&nbsp;(Forbes)



<a href="https://www.wsj.com/articles/new-engines-on-hundreds-of-airbus-jets-recalled-for-inspection-ab206106?mod=hp_lead_pos2" target="_blank" rel="noreferrer noopener">New Engines on Hundreds of Airbus Jets Recalled for Inspection</a>&nbsp;(Wall Street Journal)



<a href="https://www.bloomberg.com/news/articles/2023-06-16/pratt-s-gtf-engines-for-airbus-a320neo-hit-turbulence" target="_blank" rel="noreferrer noopener">Airlines Are Rankled About Pratt &amp; Whitney’s Jet Engine Problems</a> (Bloomberg)

ITA Airways Unveil New Airport Lounge And Aircraft At Fiumicino

Hundreds Of RTX-Made Jet Engines Recalled Over Metal Contamination—Sending Stock Tumbling

The food and non-alcoholic beverages sector account for 11.81% of the overall inflation figures. Stakeholders recommend government interventions in critical sectors like agriculture, power, and energy.



According to a recent report by the National Bureau of Statistics (NBS), Nigeria&#8217;s headline inflation rate for June surged to 22.79%, marking a 0.38% increase from May. This rise underscores the persistent inflationary pressures plaguing the nation&#8217;s economy.



Furthermore, on a year-on-year basis, the inflation rate for June was 4.19% higher compared to the same period last year, indicating a trend of escalating inflation. Notably, the food and non-alcoholic beverages sector played a significant role, accounting for 11.81% of the overall inflation figures. Food inflation surged to 25.25% on a year-on-year basis, surpassing the 20.60% recorded in June 2022. In the month under review, food prices increased by 2.40%, which is 0.21% points higher compared to the rate in May. The year-on-year basis rate also exhibited a significant rise of 4.19% compared to the 18.60% rate registered in June 2022.



This report comes in the wake of President Bola Tinubu&#8217;s recent declaration of a state of emergency on food security. He directs that all matters related to food and water availability and affordability, as essential components of livelihood, be included within the purview of the National Security Council.



Kenneth Odoemenam, an aquaculture consultant and catfish farmer, expresses deep concerns about the escalating food prices in Nigeria and their far-reaching impact on both the economy and the wellbeing of its people. Odoemenam highlights the critical role of fish farming in providing essential protein to Nigerians and contributing significantly to food security. However, like other farmers, fish farmers face numerous obstacles that hinder fish production and increase operational costs.



Odoemenam explains to FORBES AFRICA: &#8220;The alarming inflation rate [for June], coupled with the declaration of a food security emergency, underscores the seriousness of the situation for Nigeria&#8217;s fish farmers. One of the major impacts of inflation is on fish feed, which constitutes over 70% of the operational expenses.&#8221;



He adds: &#8220;As fish feed costs rise due to inflation, it directly affects the profitability of fish farmers and their ability to offer competitive prices for their fish. Additionally, the high inflation rate may lead to reduced consumer demand for the products, ultimately impacting farmers&#8217; income.&#8221;



To address these challenges and promote sustainable growth in fish farming, Odoemenam urges the government to prioritize agriculture and fisheries development. He emphasizes the need for investment in research and technology to find innovative and cost-effective solutions that improve fish farming practices, enhance fish feed production, and minimize environmental impacts.



Furthermore, Odoemenam recommends providing fish farmers with accessible credit facilities and grants to enable them to adopt modern techniques, boost productivity, and adapt to changing market dynamics. Strengthening market connections and value chains will ensure fair prices for fish farmers while making fish more accessible and affordable to consumers.



In a press conference, Michael Olawale-Cole, President of the Lagos Chamber of Commerce and Industry, expressed concerns about the potential rise in inflation due to subsidy removal and the floating of the naira exchange rate.



&#8220;Increasing the monetary policy rate has, thus far, proven to be ineffective and insufficient in taming inflation. Therefore, there is a clear need for the government to strengthen its support to critical sectors like agriculture, power, energy. It should also look at ways to improve supply chains as well as cushion the cost of production,&#8221; he said.



He urges the government to look into improving supply chains and providing concessions for Micro, Small, and Medium Enterprises (MSMEs) to alleviate production costs and tackle unemployment.

Nigeria Monthly Inflation Hits Seven-Year High on Food Prices

Rising Food Costs In Nigeria Propel June Inflation Rate To 22.79%

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Earth’s lowest “gravity hole,” a mysterious depression in the Indian Ocean that experiences less gravity than the rest of the planet, is likely due to plumes of magma under the Earth’s crust, a recent study argues—a conclusion scientists reached using supercomputers to simulate the formation of the area over 140 million years.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



There are low-density “<a href="https://www.americanoceans.org/facts/gravity-hole-at-the-bottom-of-the-indian-ocean/" target="_blank" rel="noreferrer noopener">gravity holes</a>” all over the planet, but the Indian Ocean geoid low (IOGL) is the most profound—spanning&nbsp;<a href="https://www.cnn.com/2023/07/24/world/gravity-hole-geoid-low-indian-ocean-scn/index.html" target="_blank" rel="noreferrer noopener">1.2 million square miles</a>&nbsp;just off India’s southern coast and causing a&nbsp;<a href="https://phys.org/news/2017-10-masswhat-geoid-indian-ocean.html" target="_blank" rel="noreferrer noopener">328-foot dip</a>&nbsp;in sea level.



A&nbsp;<a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2022GL102694" target="_blank" rel="noreferrer noopener">study</a>&nbsp;conducted in May 2023 by scientists at the Indian Institute of Science and GFZ German Research Centre for Geosciences suggested that mantle plumes, similar to masses in the Earth’s mantle that create volcanoes, could be the cause of the IOGL.



The researchers&nbsp;<a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2022GL102694" target="_blank" rel="noreferrer noopener">ran 19 simulations</a>&nbsp;using supercomputers to recreate the seismic formation of the Earth dating back 140 million years, six of which led to the formation of the IOGL and all of which suggested magma plumes exist within the mantle.



These plumes were formed by the drifting and eventual collision of India’s subcontinent with Asia&nbsp;<a href="https://www.sciencedaily.com/releases/2013/02/130206162233.htm" target="_blank" rel="noreferrer noopener">40 million years ago</a>, according to co-author of study, Attreyee Ghosh.



The research team estimated that geoid low was formed about 20 million years ago.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Earth’s surface is a rough&nbsp;<a href="https://earthobservatory.nasa.gov/features/GRACE/page3.php" target="_blank" rel="noreferrer noopener">geoid</a>&nbsp;rather than a perfect sphere, meaning that there are places all over the planet with lower or higher gravitational pulls. Magma plumes themselves do not cause lower gravity. In the case of the IOGL, the plumes caused a depression in the geoid, which causes a lower gravity. Areas with more gravity include the Philippines, while other gravity holes include areas under Cuba and the Bahamas. Unlike other gravitational anomalies, the IOGL has gone&nbsp;<a href="https://blogs.agu.org/geospace/2017/10/16/missing-mass-causing-geoid-low-indian-ocean/" target="_blank" rel="noreferrer noopener">unexplained</a>&nbsp;since its discovery in 1948. Smaller anomalies can&nbsp;<a href="https://earthobservatory.nasa.gov/features/GRACE/page3.php" target="_blank" rel="noreferrer noopener">usually be traced</a>&nbsp;by thickening or thinning of the Earth’s crust, mantle, or both, but the IOGL has no indication of either. The study on the IOGL reinforces Ghosh’s research on mantle plumes in&nbsp;<a href="https://agupubs.onlinelibrary.wiley.com/doi/abs/10.1002/2017GL075392" target="_blank" rel="noreferrer noopener">2017</a>, which first used models to establish that the density anomaly came from the movement of India’s plate. Research suggests that there are at least&nbsp;<a href="https://www-udc.ig.utexas.edu/external/becker/preprints/k21.pdf" target="_blank" rel="noreferrer noopener">18 magma plumes</a>&nbsp;in the Earth’s mantle, with some of the most&nbsp;<a href="https://agupubs.onlinelibrary.wiley.com/doi/full/10.1029/2020GC009276" target="_blank" rel="noreferrer noopener">probable locations</a>&nbsp;being under Tahiti, East Africa, and the Canary Islands.



Passport: Explore the finest destinations and experiences around the world in the Forbes Passport newsletter.Sign Up



By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



Alessandro Forte, a University of Florida geology professor,&nbsp;<a href="https://www.cnn.com/2023/07/24/world/gravity-hole-geoid-low-indian-ocean-scn/index.html" target="_blank" rel="noreferrer noopener">told CNN</a>&nbsp;that there were at least two problems with the study. Forte said that Ghosh’s team failed to account for a&nbsp;<a href="https://blogs.egu.eu/divisions/gd/2019/08/07/remarkable-regions-the-reunion-hotspot/" target="_blank" rel="noreferrer noopener">mantle plume that erupted</a>&nbsp;65 million years ago where the Indian subcontinent would have been at the time, and also that the study’s simulated geoid is different from Earth’s real surface shape.



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



Ghosh says that the geoid may disappear or move in the next few million years,&nbsp;<a href="https://www.cnn.com/2023/07/24/world/gravity-hole-geoid-low-indian-ocean-scn/index.html" target="_blank" rel="noreferrer noopener">according to CNN</a>.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.cnn.com/2023/07/24/world/gravity-hole-geoid-low-indian-ocean-scn/index.html" target="_blank" rel="noreferrer noopener">There is a ‘gravity hole’ in the Indian Ocean, and scientists now think they know why</a>&nbsp;(CNN)



<a href="https://oceanservice.noaa.gov/facts/geoid.html" target="_blank" rel="noreferrer noopener">What is the geoid?</a> (National Ocean Service)

Structure of planet Earth in space, 3D rendering

Everything We Know About The Mysterious ‘Gravity Hole’ In The Indian Ocean—And How It Was Formed

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Elon Musk has replaced Twitter’s iconic blue bird logo with an “X” on Monday, part of a major rebrand teased over the weekend that takes the platform another step closer to the billionaire’s dream of creating an “everything app.”



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



The change appeared Monday morning on the web version of the platform.



The new logo, a white stylized “X” on a black background, has also replaced the bird as a badge signifying an account linked to a company employee.



Twitter’s official&nbsp;<a href="https://twitter.com/Twitter" target="_blank" rel="noreferrer noopener">account</a>—@Twitter—has also been changed in the rebrand and is now named “X,” showing just the new logo as a profile picture and a bio reading “What&#8217;s happening?!”



Other Twitter accounts appear to be in the process of being changed, with accounts for creators (@TwitterCreators) and verification (@verified) having been changed while others, notably the main support account (@TwitterSupport) still showing the blue bird at the time of writing.



Mobile apps still appear to feature the blue bird, though it is likely this will change once they are updated.



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



Musk’s decision to replace Twitter’s iconic bird is both shocking and inevitable. On the one hand, he is jettisoning one of the company&#8217;s most recognizable assets—<a href="https://www.bbc.co.uk/news/business-66284304" target="_blank" rel="noreferrer noopener">Larry</a>, as it’s known, has represented Twitter for more than a decade—and whose features, including color and “tweets,” permeate the entire platform. On the other hand, Musk has been open about his ambition to transform Twitter into an “everything app” called ‘X, in the vein of Chinese tech behemoth WeChat. Concrete steps had already been taken toward this goal, such as changing the business name to X Corp, but these were largely back end changes that didn’t have too much of an impact on users. Musk <a href="https://www.forbes.com/sites/brianbushard/2023/07/23/elon-musk-directs-xcom-to-twitter-plans-to-ditch-twitter-bird/">escalated</a> the transition over the weekend, when he said the site “X.com” would now redirect to Twitter and <a href="https://twitter.com/elonmusk/status/1682964919325724673" target="_blank" rel="noreferrer noopener">forecast</a> “soon we shall bid adieu to the twitter brand and, gradually, all the birds.” In a departure from the considered, glacial and often subtle rebrands of many companies, Musk elected to <a href="https://www.bloomberg.com/news/articles/2023-07-24/musk-declares-fan-submitted-x-new-twitter-logo-in-abrupt-shift" target="_blank" rel="noreferrer noopener">crowdsource</a> Twitter, or X’s, new logo from his followers. He later shared an image of the new logo <a href="https://twitter.com/elonmusk/status/1683378289031761920?s=20" target="_blank" rel="noreferrer noopener">projected</a> onto the company’s headquarters.



Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up



By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“X is here! Let’s do this,” tweeted freshly minted CEO Linda Yaccarino. It is “exceptionally rare” to have a second chance to make another big impression, Yaccarino <a href="https://twitter.com/lindayacc/status/1683213798386147329?s=20" target="_blank" rel="noreferrer noopener">said</a>, but X is Twitter’s chance to do just that. She said there is “no limit to this transformation” and that the team is “just getting started.”



<h2 class="wp-block-heading" id="h-forbes-valuation">FORBES VALUATION</h2>



$236.5 billion. That’s how much&nbsp;Forbes&nbsp;<a href="https://www.forbes.com/profile/elon-musk/?sh=5c26ba107999">estimates</a>&nbsp;Musk is worth, according to our real time tracker. His fortune places him at the very top of&nbsp;Forbes’&nbsp;list of the world’s richest people. Musk’s wealth largely comes from his stake in electric carmaker Tesla and the cadre of valuable companies he cofounded, including rocket firm SpaceX, brain implant company Neuralink and tunneling enterprise Boring Company. He controversially purchased Twitter for $44 billion in 2022 and started on a series of drastic overhauls, including its content moderation and verification policies and slashing headcount.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/brianbushard/2023/07/23/elon-musk-directs-xcom-to-twitter-plans-to-ditch-twitter-bird/">Elon Musk Directs X.com To Twitter, Plans To Ditch Twitter Bird</a> (Forbes)

Twitter logo

Elon Musk Kills Twitter Bird Logo In ‘X’ Rebrand

The country&#8217;s foreign exchange unification policy has garnered favorable sentiment in the financial landscape, enabling individuals and businesses to access financial services more efficiently. Experts say these steps toward a collective and transparent foreign exchange system could contribute to Nigeria’s economic recovery.



Following President Bola Tinubu&#8217;s decision to unify exchange rates in Nigeria, the Central Bank of Nigeria (CBN) has taken the initiative to allow the deposit money banks (DMBs) and foreign exchange market dealers to freely buy and sell forex at market-determined rates. This move marks a shift from the previous multiple forex regime to a &#8220;free-floating&#8221; system.



The foreign exchange unification policy has yielded positive developments in the country&#8217;s financial landscape. Customers have quickly embraced the initiatives introduced by the DMBs, which aim to provide seamless and convenient foreign exchange services.



With the option to convert FX to naira through online banking platforms, customers can now avoid the hassle of withdrawing cash and resorting to the parallel market for currency exchange. This shift reflects the increased confidence in the unified exchange rate system and the government&#8217;s commitment to creating a transparent and efficient FX market.



Smart Solutions For The FX Market



Recognizing the importance of diaspora remittances to the Nigerian economy, the CBN introduced measures to facilitate smoother transactions. A recent circular issued by the CBN announced that the naira is now a payout option alongside FX and the eNaira for the receipt of diaspora remittances.



In response to the evolving financial landscape, Nigerian banks are introducing innovative solutions to better serve their customers. One notable offering is the FX Cash Backed Loan, which enables domiciliary account holders to access naira loans of up to 85% of their available FX balance. This financial product allows individuals to meet their immediate financial needs without the requirement to withdraw or spend their FX holdings. By leveraging their FX assets as collateral, customers can access funds conveniently, supporting their personal and business objectives.



The suspension of international transactions on naira cards has been lifted by one of the banks, offering individuals greater flexibility in conducting cross-border transactions. This development allows cardholders to make international payments and purchases seamlessly, eliminating the previous limitations that hindered international financial interactions. The restoration of international transaction capabilities represents a significant step toward aligning Nigeria&#8217;s financial system with global standards and facilitating international trade and commerce.



Nigeria&#8217;s dollar-denominated sovereign bonds have experienced notable gains, reflecting the market&#8217;s positive sentiment. The announcement of the FX rules has resulted in an increase in the price of the country&#8217;s eurobonds, with some issues reaching their highest prices in months. Issuance matured in 2033 up 2.4 cents to 78.625 cents, the highest in over five months.



It is worth noting that Nigeria has been grappling with severe dollar shortages, which have led many individuals to seek foreign currency in the parallel market. The implementation of the foreign exchange unification policy aims to address these shortages by promoting transparency, reducing the reliance on the parallel market, and aligning the naira&#8217;s value with its official exchange rate. These efforts will contribute to a more stable and efficient foreign exchange market, providing individuals and businesses with greater certainty and access to FX.



Short-Term Pressure vs Long-Term Gains



The Nigerian government&#8217;s decision to unify exchange rates and implement comprehensive FX reforms is a significant milestone in the country&#8217;s economic journey. However, Nigerian economists note further efforts are needed to strengthen the export sector, increase FX earnings, and ensure effective control measures to prevent market distortions.



Subomi Plumptre, the Chief Executive Officer of Volition Cap, predicts a competitive market to the benefit of the public. Plumptre tells FORBES AFRICA: &#8220;The fact that customers can now convert dollars to naira on online banking platforms is expected to drive competition among International Money Transfer Operators (IMTOs). This could spark innovation leading to lower transaction fees and better rates for the public. The FX Cash Backed Loan, which offers naira loans to foreign currency holders, serves as an example of how easing foreign exchange regulations can stimulate innovation among financial service providers due to competitive pressures.&#8221;



She believes that &#8220;while the naira has depreciated substantially following the implementation of the FX unification policy, in the long-term, reduced FX intervention could yield positive outcomes.&#8221;



Plumptre adds, &#8220;A singular, market-determined exchange rate would improve transparency, eliminate opportunities for arbitrage and rent-seeking, and ultimately contribute to greater investor confidence and financial markets stability. In turn, these benefits could encourage dollar inflows, which may strengthen the naira’s exchange rate. The ongoing naira depreciation is part of the short-term price discovery process further driven by the fact that the official naira exchange rate was held artificially low, worsened by the stringent global financial conditions that underpin dollar shortages.&#8221;



Kelvin Emmanuel, an economist, commends the Nigerian government&#8217;s decision. &#8220;This is critical not only because the difference between official and parallel markets created a 63% black market premium for arbitrageurs that cost the government about $329 million every month in FX subsidy, but also because unification is going to address a chronic issue the Nigerian government has been battling with for years,&#8221; he tells FORBES AFRICA.



Emmanuel expresses excitement that &#8220;the decision to book independent revenues from government-owned enterprises, at investors and exporters rates, its decision to have the CBN create non-deliverable forwards for short- and long-term foreign investors is leading to appreciation of bond yield curve and bringing investors back into both the capital markets and the real economy.&#8221; He also believes that these reforms will contribute to economic reflation and long-term growth.



FX Round-Tripping And How It Affects The Market



Iheakanwah Felix Arinzeh, a financial expert and doctor of business administration, supports the recent FX policy, acknowledging &#8220;the need to defend the naira against excessive foreign exchange fluctuations.&#8221; However, Arinzeh emphasizes to FORBES AFRICA the importance of addressing the inadequate FX earnings and reserves by enhancing export infrastructure.



Arinzeh suggests measures to further strengthen the control of FX rates and discourage round-tripping. &#8220;In exploring the unending increase in the FX rate, particularly in the black/parallel market, FX round-tripping is one of the major causes. FX round-tripping is a situation where customers divert foreign exchange obtained from the CBN at an official rate to the black market for higher profits. The practice had created artificial FX scarcity and had denied users of foreign exchange even in their most basic transactions. I recommend that all export FX proceeds be converted via banks and that willing sellers should not in any way be allowed to nominate a willing buyer.&#8221;



&#8220;The harmonization of exchange rates requires a transition period for the adjustment of the exchange rate to align with the official rate. During this period, inflationary pressures may arise, especially if the parallel market rate was significantly higher than the official rate. However, with proper monetary and fiscal policies, these inflationary pressures can be managed effectively,&#8221; says Arinzeh.

Chaotic New Naira Banknote Shortages Causes Bank Queues

Positive Developments Follow Nigeria’s Free Floating Forex Market To Harmonize Exchange Rates

Over the past two decades, Michael Blackson has made a name for himself as one of the most prolific comedians in Hollywood. From starring alongside Hollywood big wigs like Hip Hop icon Ice Cube in Next Friday and showing off his roasting chops on Nick Cannon’s Wild ‘n Out on MTV, to sold out shows in comedy clubs all over the United States, he is now a household name in the country he was once considered an immigrant.   



If someone told Michael Blackson, Hollywood actor and comedian, that he would one day be sitting in his $4 million penthouse in the middle of Sunset Boulevard in California, with his own sitcom months from airing on BET+ and produced by none other than billionaire TV mogul, Tyler Perry, he would have answered with one word – impossible. And nobody would have blamed him.



After all, this is the stuff of miracles and dreams. But for Blackson, that is exactly what happened. Raised by a single mother and the fifth of eight children, Blackson spent his early years in Ghana moving from village to village on account of his mother’s calling as an evangelist. His early childhood was spent between Nigeria and Liberia, where his mother remarried.



“We traveled so much that I missed several grades and when I got to the US at 13, they put me in the eighth grade even though the last class I took in Liberia was the sixth grade,” says Blackson.



That is when everything changed for him.



“My mother called the US ‘the Promised Land’ but I hated it when I came to America. I was homesick and I missed my brothers and I was now in this cold place and kids were making fun of me. Back home, we didn’t see anything wrong with a lot of things because we are all the same people.



“They said I was blacker than them and we never saw complexion back home. I didn’t realize that there were lighter Africans or darker ones and the kids made me realize that we were all different. They said things like ‘you have a gap in your teeth, your hair texture is different’ and it made me insecure,” says Blackson.



Channeling that insecurity and a natural affinity for speaking in public, Blackson eventually fell in love with comedy and the rest, as they say, is history. During his meteoric rise to the top, which includes starring alongside Eddie Murphy in Coming 2 America and making between $40,000 and $100,000 a night at his sold-out shows, Blackson returned to Ghana to visit his brothers who he had not seen in over 15 years.



“In 2001, I went back to Ghana. Walking around the area I grew up, I said ‘why does this place look the same?’ It had been over 27 years and nothing had changed. The kids were not in school and I found out that their parents could not pay their tuition fees which was $80 for the year. I remember going down the road and I paid for about four kids to go to school for a year. I then went to the village and the same problem was there. I said I am going to do something about this,” recalls Blackson.



It took him until 2019 to save up the $500,000 needed to build the Michael Blackson Academy in the village he once called home. The Ghanaian government has made senior secondary education free but the problem for parents who are struggling is that they still need to educate their children from kindergarten to junior secondary school.



“As African kids, we treasure education and we love to learn but for some reason, not everyone can afford to go to school. Whether they can’t afford the tuition, or they can’t pay for their uniform, there is always some problem that prevents many kids from going to school. I knew that if I was given the opportunity as a kid, I would go to school and I felt like every African felt this way. That is the main reason I always wanted to do something in education – to give back,” says Blackson.



The Michael Blackson Academy has a vision of providing free education for impoverished children in Ghana. The school currently has a capacity of 200 students and the entire program from feeding, to school uniforms, teacher’s salaries and tuition fees is self-funded by Blackson.



“My goal is that the top four students get the opportunity to study abroad through a partnership with a private school in the US, go to high school in the US and get an opportunity. All they have to do in return is to promise to go back home eventually and contribute to Ghana,” says Blackson.



The school officially opened its doors in January 2021. Students are selected with the help of a consultancy which ensures that Blackson’s goal of helping the most impoverished and in need families is achieved. His next goal is to expand The Michael Blackson Academy to Liberia as well as set up a not-for-profit foundation that will give back resources to those in need.



“You owe it to others to be a blessing. But my goal is to make an impact and it gives me so much joy to see the lives we are changing. We are currently in the process of raising money for another academy in Liberia.&#8221;

3rd Annual Hollywood Unlocked Impact Awards

From Hollywood To Africa: The Comedian Creating Impact With Education

Unexpectedly holding rates at 8.25%, South Africa&#8217;s central bank surprises economists. Despite temporary relief for households and potential property market impact, SARB Governor Kganyago signals this is just a pause. Rate hikes hinge on economic data and inflation risks, painting a complex future for South Africa&#8217;s economy.



As the dust settles in the second half of 2023, the South African Reserve Bank (SARB) has decided to maintain interest rates at 8.25% in what was a closely-contested decision. This move puts a temporary hold on the hiking cycle that&#8217;s been in place since November 2021, granting a short breather in an otherwise upward economic climb.



“It was a close call,” says Dawie Roodt, Director and Chief Economist of financial services company Efficient Group to FORBES AFRICA. “Of the five members of the Monetary Policy Committee (MPC), three voted to keep the rate the same and two voted for an increase. It was very touch and go.”



The pause in rate increments hinged on an array of factors, including the recent downward movement in inflation rates and an optimistic economic forecast. Nevertheless, SARB Governor, Lesetja Kganyago, has urged caution, highlighting this pause does not signal the end of the rate hiking cycle.



&#8220;The longer-term outlook mirrors the uncertainty of the global environment. Prices for commodity exports continue to weaken, energy supply remains unreliable, and stronger El Nino conditions threaten the agricultural outlook,&#8221; said Kganyago in a press statement, reflecting the complex economic terrain ahead.



The maintained rate has been greeted as a temporary reprieve by many South African households, unshackling them from the threat of heightened interest repayments on loans and mortgages. However, there is a flip side, with potential ripples in the property market as the unchanged rate could push up the cost of buying homes.



“Interest rate repayments remain the same,” adds Roodt. “What is important is the actual inflation rate declined before the announcement [by the SARB], and inflation expectations are slowly leveling off.”



The SARB&#8217;s decision factored in the recent dip in inflation, which stood at 5.4% in June, and an uplifted GDP growth projection of 0.4% for 2023, an increase from 0.3% last year, according to Statistics South Africa. Moreover, persistent challenges such as power cuts, logistical bottlenecks, and sustained food price pressures were considered, given their potential to exacerbate inflation and stunt economic growth.



Despite the pause, Kganyago did not rule out future rate hikes, emphasizing that forthcoming rate decisions would be data-dependent and attuned to inflation risks.



&#8220;Serious upside risks to the inflation outlook remain. In light of these risks, the Committee remains vigilant and decisions will continue to be data-dependent and sensitive to the balance of risks to the outlook,&#8221; said Kganyago.



As households enjoy the brief lull, the shadow of potential future rate hikes looms ominously. For now, South Africans can savor the hiatus from escalating borrowing costs. Yet, the knock-on effects of the decision could potentially cool the property market, as it could inflate the cost of home buying.



This rate decision paints a mixed picture – a sigh of relief for those in debt but potentially unwelcome news for prospective homeowners. With a split decision within the MPC and the high likelihood of a future rate hike, this respite for consumers could be fleeting.

South African Reserve Bank Rate Decision News Conference

South African Reserve Bank Holds Rates Amid Close Call: Temporary Sigh Of Relief For Those In Debt

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Elon Musk’s fortune took a major hit Thursday after the share price of his electric vehicle titan Tesla suffered its biggest slide in three months, as the world’s richest person navigates yet another massive swing for Tesla.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Musk’s net worth slipped from $256.8 billion to $238.4 billion Thursday, according to&nbsp;Forbes’ calculations.



The staggering losses came after Tesla stock tanked nearly 10% as investors&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/07/20/tesla-stock-takes-6-post-earnings-dive-heres-why-some-say-its-860-billion-valuation-is-disconnected-from-reality/?sh=d44f9eec0770">reacted sourly</a>&nbsp;to the automaker’s second quarter earnings report released after market close Wednesday.



The Tesla CEO’s lead as the wealthiest man on the planet shrank from $23 billion to $3 billion, putting Musk in jeopardy of once again losing his crown to LVMH chairman Bernard Arnault, who was richer than Musk for a roughly six-month stretch from early December to last month.



<a href="https://www.forbes.com/sites/forbeswealthteam/article/elon-musk/?sh=1af47a0926af">About 60%</a>&nbsp;of Musk’s net worth comes from his roughly 13% in Tesla, a third from his stake in private aerospace and communications giant SpaceX and less than 10% from his ownership of Twitter.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



During Wednesday’s&nbsp;<a href="https://seekingalpha.com/article/4618254-tesla-inc-tsla-q2-2023-earnings-call-transcript" target="_blank" rel="noreferrer noopener">conference call&nbsp;</a>with Tesla investors, Musk likened Tesla’s massive stock swings to a 2015&nbsp;<a href="https://www.yahoo.com/lifestyle/tagged/health/exclusive-warren-buffett-says-mr-125010039.html" target="_blank" rel="noreferrer noopener">analogy</a>&nbsp;from Warren Buffett in which the famed investor said owning shares in a public company can feel like there’s an imaginary “drunken psycho” dictating the value of said stake. “Imagine living in your house and some crazy manic-depressive guy comes and stands outside your house and yells property prices at you, and it’s a different price every day,” Musk said. “But the house is still the same house.”



Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up



By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



Tesla stock’s two biggest daily losses over the last six months occurred in the first trading sessions following the release of Tesla’s sole 2023 earnings reports (Thursday and April 20).



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/dereksaul/2023/07/20/tesla-stock-takes-6-post-earnings-dive-heres-why-some-say-its-860-billion-valuation-is-disconnected-from-reality/?sh=d44f9eec0770">Tesla Stock Takes 9% Post-Earnings Dive—Here’s Why Some Say Its $840 Billion Valuation Is ‘Disconnected From Reality’</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/forbeswealthteam/article/elon-musk/?sh=1af47a0926af">Behind The Billions: Elon Musk</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/dereksaul/2023/04/19/heres-how-teslas-stock-performed-after-its-last-10-earnings-reports/?sh=52553ba51871">Here’s How Tesla’s Stock Performed After Its Last 10 Earnings Reports</a> (Forbes)

Tesla Officially Opens Gruenheide Gigafactory

Elon Musk Got $18 Billion Poorer Thursday As Tesla Stock Faltered

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Streaming giant Netflix quietly eliminated its cheapest advertisement-free plan for new U.S. and U.K. customers this month, pushing new users toward either a more expensive monthly plan or a cheaper offer with ads, the latest streaming platform to adjust its pricing.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Netflix’s changes, which do not affect existing customers, leave new customers with the&nbsp;<a href="https://help.netflix.com/en/node/24926" target="_blank" rel="noreferrer noopener">choice of</a>&nbsp;a $6.99 per month “Standard with Ads” plan—the cheapest Netflix offers—as well as a $15.49 “Standard” plan, which allows for two simultaneous streams and 1080p full HD video quality, or a $19.99 “Premium” plan, with up to four simultaneous streams and 4K Ultra HD video.



The company eliminated its $9.99-a-month “Basic” plan and now&nbsp;<a href="https://help.netflix.com/en/node/24926/gb" target="_blank" rel="noreferrer noopener">states</a>&nbsp;on its support page it “is no longer available for new or rejoining members,” a change multiple news outlets spotted Wednesday—as of July 5, the streaming giant still listed the basic subscription tier on its U.S. support site, according to an&nbsp;<a href="https://web.archive.org/web/20230705193321/https://help.netflix.com/en/node/24926" target="_blank" rel="noreferrer noopener">archived version</a>&nbsp;of the webpage.



Under Netflix’s “Standard” plan, customers can opt to pay up to $23.48 a month for an extra member, while Premium users can pay $27.98 per month for one extra member or $35.97 for two.



The platform’s decision to cut its “Basic” plan comes one month after it cut the same offering for customers in Canada, and in the same fashion allows existing customers to stay on the plan.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



The change puts Netflix, a stalwart in the decade-long streaming wars, roughly on par with Disney-controlled rivals Hulu ($7.99 per month with ads, or $14.99 ad-free) and Disney+ ($7.99 with ads and $10.99 ad-free). Warner Bros. Discovery’s platform Max, which&nbsp;<a href="https://www.forbes.com/sites/katherinehamilton/2023/04/12/new-max-streaming-service-combines-hbo-and-discovery-shows-heres-what-you-need-to-know/?sh=6a11dfa037c8">launched</a>&nbsp;this spring as a mega-service combining HBO Max and Discovery+, offers monthly subscriptions starting slightly higher, at $9.99 per month with ads and $15.99 without them, and $19.99 per month for “Ultimate Ad Free,” which allows for up to four simultaneous streams. Some legacy broadcasters have cheaper services: NBCUniversal’s Peacock and CBS owner Paramount Global’s Paramount+ both charge $5.99 per month with ads or $11.99 per month without (in Paramount’s case, the ad-free service includes SHOWTIME). And Amazon Prime Video costs $8.99 a month, but it’s included in a $14.99 Amazon Prime membership.



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



Netflix’s price change follows a series of price hikes by rival streaming services, including Peacock, which announced plans on Tuesday to&nbsp;<a href="https://www.forbes.com/sites/anafaguy/2023/07/18/peacock-raises-its-rates-heres-how-it-compares-to-rivals-netflix-paramount-and-more/?sh=26e692db19c5">raise rates</a>&nbsp;from $4.99 per month to $5.99. The price for ad-free “Premium” subscribers is set to increase next month from $9.99 per month to $11.99, while Peacock’s annual premium plan will jump $10 per year to $59.99. Peacock ended its free streaming tier earlier this year.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Netflix, as well as Max and Disney+, have raised rates in recent months and launched cheaper ad-based subscription options for customers, in a bid to boost revenue in a challenging era and remain competitive with more price-sensitive customers. Netflix’s rate of subscriber growth stalled in the first half of 2022 after two consecutive quarters of declining memberships, spooking investors, though the company ended the year with more subscribers. Meanwhile, rivals like Disney+ remain unprofitable. Despite previously swearing off ads on his streaming service, Netflix co-founder and former co-CEO Reed Hastings&nbsp;<a href="https://www.theverge.com/2022/4/19/23032869/netflix-ads-streaming-reed-hastings-lower-price" target="_blank" rel="noreferrer noopener">said</a>&nbsp;in an earnings call last April he would be “quite open” to low-cost streaming tiers with ads. Last year, Netflix also&nbsp;<a href="https://www.forbes.com/sites/siladityaray/2022/08/12/heres-how-much-more-you-have-to-pay-for-streaming-services-compared-to-last-year/?sh=714d2a1f6dfe">raised prices</a>&nbsp;for its streaming tiers by between $1 and $2 per month, bringing the basic option to $9.99 from $8.99 and its premium option to $19.99 from $17.99. Netflix has also cracked down on password sharing, a well-known secret the platform had once promoted, imposing restrictions in Canada, New Zealand and Spain, and announcing plans in May to prohibit U.S. customers from sharing accounts with people they don’t live with. In October, Netflix boasted&nbsp;<a href="https://www.forbes.com/sites/marisadellatto/2022/10/18/netflix-adds-24-million-subscribers-after-months-of-declines/?sh=5211728577be">2.4 million</a>&nbsp;new paid subscribers over the prior quarter, bringing its total subscribers to 230.75 million after months of decline, putting it above Disney+ (161.8 million), Paramount+ (56 million), Hulu (48 million) and Peacock (20 million).



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/anafaguy/2023/07/18/peacock-raises-its-rates-heres-how-it-compares-to-rivals-netflix-paramount-and-more/?sh=26e692db19c5">Peacock Raises Its Rates: Here’s How It Compares To Rivals Netflix, Paramount+ And More</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/anafaguy/2023/05/23/netflix-starts-long-awaited-password-sharing-crackdown-heres-how/?sh=79780274f884">Netflix Starts Long-Awaited Password-Sharing Crackdown—Here’s How</a> (Forbes)

Tag: Coronavirus Pandemic

FORBES AFRICA SOCIAL MEDIA