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Tanzania Inaugurates $59m Leather Factory, To Produce 1.2 Million Shoes Annually

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Tanzania’s President John Magufuli on Thursday inaugurated the $59m leather factory in Kilimanjaro region, saying the new facility will end importation of leather goods.

The Kilimanjaro International Leather Industries Company Limited is a joint venture between the Public Service Social Security Fund (PSSSF) and the Prisons Corporation.

Speaking shortly before he inaugurated the factory, Magufuli said construction of the facility would help to expand the market for hides and skins in the east African nation.

“Livestock keepers are throwing away hides and skins of their animals for lack of markets. With the construction of the new leather factory this will now be history,” he said.

In Africa, Tanzania has the second largest herd of livestock after Ethiopia, and produces 3.9 million bovine hides, 2.5 million goat skins and 2.3 million sheep skins annually.

Magufuli said Tanzania’s demand for shoes stood at 54 million pairs annually, while the country’s five leather industries were producing a total of 1.715 million pairs each year.

“In the next one to two years, I hope Tanzanians will stop wearing imported shoes. We should start cultivating the habit of buying locally made goods,” said the president.

Hosea Kashimba, PSSSF Director-General, said the initial production capacity for the new factory was 1.2 million pairs of shoes annually and 184,500 pieces of other leather products, including belts and wallets.

Kashimba said the factory had created 3,000 direct jobs and 7,000 indirect jobs.

Statistics from the Ministry of Livestock and Fisheries show that Tanzania had 25 million cattle and 16.7 million goats.

Kashimba said Karanga Prison provided land for the industry while PSSF which was managing the project provides the machinery and buildings under the consultancy of Tanzania Industrial Research and Development Organization (TIRDO) who were paid Sh2 billion.

He further noted that the machinery was imported from Italy to a cost of Sh60 billion (Euro23.6 million).

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Business Edge | Petroleum Industrial Bill Passes Second Reading In The House Of Representatives

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PIB has passed second reading at the House of Representatives. The PIB in many quarters appears to be the most politicized piece of legislation in Nigeria’s legislative history. It was conceived by the Executive Arm of government some 18 years ago to principally inject transparency and stimulate growth in the country’s oil industry. But controversies arising from vested interests have continued to bog it down, making it one of the longest bills in the National Assembly that had been subjected to legislative fireworks.

To get it passed in the first attempt, the document was balkanised by the two chambers of the Nigerian National Assembly, the Senate, and the House of Representatives which called it “Petroleum Industry Governance Bill, PIGB”. With the new name, the Bill was passed simultaneously in both chambers in January 2018.

It was later forwarded to President Muhammadu Buhari for presidential assent. But the President expressly declined his assent, citing anomalies, particularly the reduction of Powers of the Minister of Petroleum over Nigerian National Petroleum Corporation, NNPC. The refusal then necessitated the return of the Bill to the National Parliament.

Also, Ethiopia plans to sell a 45% stake in its Ethio Telecom monopoly, an adviser to the state minister of finance said, as the government pursues the liberalization of the sector despite an armed conflict in the north of the country. Ethiopia’s telecoms industry is considered the big prize in a push to liberalize the African country’s economy because of a vast protected market, which serves around 100 million people. Tolulope Adeleru Balogun discussed these with Nasir Afolabi Agbalaya and Ralph Malik

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South Africa Records Boost In Business Confidence

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Following the easing of lockdown restrictions imposed by the South African government to check the spread of COVID-19, the country has enjoyed a new boost in business confidence.

According to a quarterly assessment of business confidence in the country, conducted by FirstRand Ltd.’s Rand Merchant Bank unit, it on Wednesday, said business confidence country has increased to 40 from 24. It is the country’s highest since Q2/2018. The index is compiled by Stellenbosch University’s Bureau for Economic Research.

The improvement shown is another proof to the data that suggests the South African economy may be recovering gradually from its low ebb.

The country’s output contracted by an annualized 51% and 2.2 million jobs were lost in the second quarter.

“It only signifies an economy that’s out of intensive care, and not out of high care,” an RMB chief said. “The strong rise in confidence among consumer-facing sectors could easily turn out to be temporary if the ‘kicker’ having come from pent-up demand peters out.”

The confidence boost for businesses may however not be long-lasting due to the overall effects of the pandemic.

South Africa is one of Africa’s worst-hit countries and has been rallying back, following its recession in March. The country has faced two recessions in two years.

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Nigeria Suffers The Worst Economic Recession In 33 Years

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The news of Nigeria sinking into its worst recession in 33 years has left most Nigerians asking how the giant of Africa got here. News Central speaks with Muktar Mohammed, a finance analyst who further explains the implication of this recession.

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