Economic growth – Water Valley Chamber http://watervalleychamber.info/ Thu, 25 Aug 2022 11:32:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://watervalleychamber.info/wp-content/uploads/2021/11/wat.png Economic growth – Water Valley Chamber http://watervalleychamber.info/ 32 32 Here are China’s 19 new measures to support economic growth https://watervalleychamber.info/here-are-chinas-19-new-measures-to-support-economic-growth/ Thu, 25 Aug 2022 02:39:15 +0000 https://watervalleychamber.info/here-are-chinas-19-new-measures-to-support-economic-growth/ (Bloomberg) – China on Wednesday announced 19 new policies aimed at bolstering efforts to salvage economic growth, which is weakening again with a resurgence in Covid cases, a worsening housing crisis and now power shortages caused by severe drought. The measures – unveiled by the State Council, the country’s cabinet – include more than 1 […]]]>

(Bloomberg) – China on Wednesday announced 19 new policies aimed at bolstering efforts to salvage economic growth, which is weakening again with a resurgence in Covid cases, a worsening housing crisis and now power shortages caused by severe drought.

The measures – unveiled by the State Council, the country’s cabinet – include more than 1 trillion yuan ($146 billion) in new funding to boost investment and consumption, as well as greater flexibility for local authorities to support the real estate market. They also contain policies intended to remove logistical barriers and help companies more easily move their staff across borders.

Read more: China plans more measures to stabilize economy as recovery slows

The package adds to 33 policies the government introduced just three months ago, involving trillions of yuan in relief for the world’s second-largest economy, which at the time had fallen into a slump in part due to curbs to contain China’s worst Covid outbreak in two years.

Here are the specific details that have been announced so far on the 19 measures, as reported by the official Xinhua News Agency:

Fiscal stimulus

  • The government will provide more than 300 billion yuan in additional funding for a program that has given state political banks the tools to fund infrastructure projects, doubling the scale of a plan announced in late June.
  • Local governments are urged to utilize more than 500 billion yuan of existing special caps by the end of October.
  • A batch of infrastructure projects will be approved to start construction. Projects must be profitable, their quality must be assured and the funds must not be used for other purposes.

Energy supply

  • Central government-run power generation companies will be supported to sell 200 billion yuan of special debt to ensure power supply.

Ownership support

  • Local governments will be allowed to use city-specific credit policies flexibly and reasonably support demand for first homes and better housing.

Help for businesses

  • Measures to support the development and investment of private enterprises will be introduced, and the healthy and sustainable growth of the platform economy will be encouraged.
  • The government will make it easier for business people to travel inside and outside the country.
  • Businesses will be allowed to delay payment of their administrative costs by a quarter.
  • Local governments will be encouraged to establish risk compensation funds for loans to micro, small and medium enterprises and individual business owners.
  • Authorities will continue to take measures to ensure smooth logistics.

Agricultural financing

  • Some 10 billion yuan of subsidies for agricultural equipment will be granted in addition to the 30 billion yuan already granted this year.

Implementation oversight

  • Government agencies are urged to “promptly” release specific details for policy implementation, and local authorities are expected to introduce support measures.
  • The State Council will send supervision and working groups to the regions; teams led by heads of central government agencies will be dispatched to economically strong provinces to improve the efficiency of project approvals and speed up the implementation of measures.
  • The work of local officials to stabilize the economy will be supervised by the State Council inspectors, who will also provide the necessary assistance to carry out the task.

©2022 Bloomberg LP

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Local content is key to achieving Kenya’s economic growth goals https://watervalleychamber.info/local-content-is-key-to-achieving-kenyas-economic-growth-goals/ Tue, 23 Aug 2022 21:04:05 +0000 https://watervalleychamber.info/local-content-is-key-to-achieving-kenyas-economic-growth-goals/ Columnists Local content is key to achieving Kenya’s economic growth goals Wednesday, August 24, 2022 Economic growth concept. PICTURES | SHUTTER Kenya’s economy is lagging due to the flight of cash to foreign countries and entrepreneurs. This is despite the fact that the same cash was generated in Kenya and, in most cases, paid through […]]]>

Columnists

Local content is key to achieving Kenya’s economic growth goals


Economic growth concept. PICTURES | SHUTTER

Kenya’s economy is lagging due to the flight of cash to foreign countries and entrepreneurs. This is despite the fact that the same cash was generated in Kenya and, in most cases, paid through the Kenyan taxpayer. The technology and expertise gap between foreign and local entrepreneurs has also been quite large.

This state of affairs has created the need to promote local content to support local Kenyan industries and citizen entrepreneurs.

It is for this reason that we now have local content provisions in the Public Procurement and Disposal Act 2015, National Building Authority Act 2011 and subsequent regulations 2014 on the national building authority.

The 2014 NCA Regulations, for example, provide that an application from a foreign contractor must be accompanied by a written commitment that it will subcontract or enter into a joint venture with a local person or firm for at least 30% of the value of the contract for which temporary registration is requested and that it is to transfer technical skills not available locally to a local person or firm in such manner as the authority may determine from time to time.

There is no doubt that the effective implementation of local content provisions will help build capacity and provide a lifeline for citizen entrepreneurs and suppliers.

The provisions will also facilitate, bring back and retain much-needed hitherto untapped skills and technology transfer and give local players a share of lucrative and costly infrastructure projects, making them attractive for future project funding and future.

This cherry was previously the preserve of foreign entrepreneurs from Japan, India, Germany, Dubai and now China who enjoy the benefits of cheap credit and financing from financial institutions and companies. development finance agencies and companies in their country of incorporation.

However, local content should not be favored where skills and expertise do not exist and also to the detriment of quality infrastructure. There is also a need to ensure competition and avoid undermining Kenya’s bilateral, regional and global trade treaty commitments.

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Banking sector, OPS seeks synergy to support economic growth https://watervalleychamber.info/banking-sector-ops-seeks-synergy-to-support-economic-growth/ Mon, 22 Aug 2022 23:42:07 +0000 https://watervalleychamber.info/banking-sector-ops-seeks-synergy-to-support-economic-growth/ By Chinwendu Obienyi The The role of the banking sector and the private sector in an economy is very clear in that the banking sector focuses on the formation and accumulation of capital while the private sector acts as the engine of economic growth. Over the years, the Nigerian banking system has emerged as the […]]]>

By Chinwendu Obienyi

The The role of the banking sector and the private sector in an economy is very clear in that the banking sector focuses on the formation and accumulation of capital while the private sector acts as the engine of economic growth.

Over the years, the Nigerian banking system has emerged as the most misunderstood sector of the economy by its major stakeholders, resulting in a huge crisis of confidence that is expected to foster economic synergy between banks and the private sector.

Despite a series of efforts by industry leaders to address and resolve the protracted distrust with its economic partners, there is a widening communication gap between these two important players in economic development.

For example, while the Nigerian banking sector grapples with market, operational, reform and regulatory challenges in an effort to ensure sustainability as profit-making entities, the private sector groans over the difficulty perceived access to finance.

This position of the private sector is well captured and articulated in the various national policy documents on MSMEs by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). According to the 2021 policy document, some of the major challenges facing Nigerian businesses are as follows; on average, they have low operational capabilities and huge skills gaps in management, technology and attitudes.

Furthermore, there is a predominance of “necessity” entrepreneurs over “opportunity” entrepreneurs. They face weak infrastructure, especially in terms of electricity, transport and workspace. They also lack a collective voice and have relatively little influence on policy formulation.

The above challenges mean that the promotion of a collective voice and increased influence on policy formulation for the private sector as well as increased access to vital resources, especially finance, are needed.

It also signals the need to rethink the strategy to achieve sustainable synergy between the two development actors.

Stakeholder view

Speaking at the First National Stakeholder Conference on Synergy between the Nigerian Banking Sector and the Organized Private Sector (OPS) held in Lagos, the President of the Association of Directors of Corporate Affairs of Banks ( ACAMB), Rasheed Bolarinwa, said that the banking sector and the PAHO is supposed to be the main driver of the country’s economy and added that the two must work together if the economy is to develop and grow.

Bolarinwa said, “There is a symbiotic relationship between the two sectors. The more active and synergistic the relationship between the bank and the private sector, the more we are collectively able to develop and grow the national economy for a sustainable Nigeria”.

Also speaking, the National President of the Association of Chambers of Commerce, Industry, Mining and Agriculture (NACCIMA), Ide John Udeagbala said that an efficient financial system breeds a vibrant economy that fosters sustainable and inclusive economic growth and development in all sectors.

According to him, fostering synergy between the banking sector and PAHO ensures the promotion of a “collective voice” and increased influence on policy formulation for the private sector, as well as increased accessibility to vital resources, especially in the areas of financing.

Economic analysts who spoke at the conference on the theme; Promoting synergy between the banking sector and the organized private sector” stated that the link between banks and PAHO has been weakened over the years due to certain political somersaults and the inability of banks to grant loans. loans.

Nigeria Employers’ Consultative Forum (NECA) Managing Director Adewale Oyerinde says the relationship between industry and banks in the country has faltered as underlined by the drop in the amount of loans given to the productive sector. over the years.

According to him, CBN Statistical Bulletin reports showed that the share of commercial lending to the manufacturing sector in overall lending to the economy averaged 0.1 percent from 2017 to 2021.

Oyerinde argued that development, without a doubt, limits manufacturing activities in the country in terms of investment and production.

“The industrial and banking sectors are essential components of any economy. Industry needs credit from the banking sector to improve investment and production, while banking needs rental income and capital subscription from industry to maintain financial stability.

The availability of funds and at a cheaper rate reduces the cost of production, improves the quality of outputs or the efficiency with which inputs are transformed into outputs and contributes to the growth of the private sector in an economy and the multiplier effect will be poverty reduction; increase in per capita income, increase in the country’s competitiveness and by extension, economic growth.

He said the current poor performance of the industrial sector, particularly manufacturing, is due to the limited funds available, which do not allow for significant investment and expansion in productive activities.

However, the CBN Deputy Director of Banking Services, Egboagwu Ezulu, urged PAHO to take advantage of the various CBN interventions to boost production through the BOI, DBN and commercial banks.

Ezulu said offshore FX dumping contributes to FX supply challenges in the country.

“We take the currencies out of this country and dump them overseas when we are told to bring them back because if Nigerians took them home, we wouldn’t be talking about the challenges of FX. There is a challenge and we have to do the right thing.

That’s why the CBN introduced the RT200 to encourage you to bring back the dollar which you say is scarce but in the books of the banks we see billions of dollars that have been exported out of the country and the OPS don’t bring them back. So the question is how to finance the demand for currencies? asked Ezulu.

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Shandong records 10-year economic growth https://watervalleychamber.info/shandong-records-10-year-economic-growth/ Sun, 21 Aug 2022 14:11:24 +0000 https://watervalleychamber.info/shandong-records-10-year-economic-growth/ A HEALTHY ECONOMY A customer buys vegetables at a supermarket in Zaozhuang, east China’s Shandong Province, Aug 9, 2021. Shandong province has seen marked economic growth, improved livelihoods of the population and progress in environmental protection over the past decade, provincial officials said at a press briefing on Saturday, August 20, 2022. XINHUA PHOTO JINAN: […]]]>

A HEALTHY ECONOMY A customer buys vegetables at a supermarket in Zaozhuang, east China’s Shandong Province, Aug 9, 2021. Shandong province has seen marked economic growth, improved livelihoods of the population and progress in environmental protection over the past decade, provincial officials said at a press briefing on Saturday, August 20, 2022. XINHUA PHOTO

JINAN: East China’s Shandong Province has seen marked economic growth, improved people’s livelihoods and progress in environmental protection over the past decade, provincial officials said on Saturday. during a press briefing.

The province’s gross domestic product (GDP) was 8.3 trillion yuan (about 1.2 trillion U.S. dollars) in 2021, up 66 percent from 2012.

Shandong insists on urban-rural integrated development and promotes coordinated regional development, said Li Ganjie, secretary of the Shandong Provincial Committee of the Communist Party of China.

Over the past 10 years, the urbanization rate of permanent residents in the province has increased by 12 percentage points and per capita disposable income has increased by about 8.5% per year on average. Some 2.52 million people have been lifted out of poverty, Li said.

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Shandong’s energy consumption per unit of GDP has fallen by an average of 4.2% each year over the past decade, and the share of coal in energy consumption has fallen by 13.8 percentage points. Over the past two years, the average concentration of hazardous airborne particles PM 2.5 has fallen by 11.5% and 15.2%, respectively.

Shandong Governor Zhou Naixiang said the province’s foreign trade volume increased from 1.5 trillion yuan to 2.9 trillion yuan from 2012 to 2021, and the proportion of its actual use of foreign capital by compared to the national total rose from 4.8% to 12.4% during the same period. .


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Oyetola talks about potential of Osun Osogbo festival for economic growth https://watervalleychamber.info/oyetola-talks-about-potential-of-osun-osogbo-festival-for-economic-growth/ Sat, 20 Aug 2022 07:33:05 +0000 https://watervalleychamber.info/oyetola-talks-about-potential-of-osun-osogbo-festival-for-economic-growth/ Osun State Governor Adegboyega Oyetola has highlighted the importance of the annual Osun Osogbo Festival for the economic growth of the state. Speaking at the festival, Oyetola said he was delighted with the international dimension the Osun festival has achieved. His words: “The Osun Osogbo Festival has, over the years, contributed to the socio-economic development […]]]>

Osun State Governor Adegboyega Oyetola has highlighted the importance of the annual Osun Osogbo Festival for the economic growth of the state.

Speaking at the festival, Oyetola said he was delighted with the international dimension the Osun festival has achieved.

His words: “The Osun Osogbo Festival has, over the years, contributed to the socio-economic development of the state to a great extent. Your conduct and demeanor during the celebrations presented us as an organized, hospitable and peaceful people.

“As a government, we will not relax our efforts to exploit the opportunities presented by this festival to ensure its growth and sustainability for the socio-economic development of Osun.

“As an administration, we continue to look for ways to integrate our unique potential as a cultural and tourist destination. This desire, you will remember, motivated the design of a master plan for culture and tourism which guided our interventions in the sector.
Also speaking, the Ataoja of Osogbo, Oba Jimoh Olanipekun, Laaroye ll while congratulating his people, Osun devotees, tourists and all the Yoruba race urged the people to live in the peace that Osun represents.
Meanwhile, Osun Osogbo worshipers openly defied the Osun state government’s warning on Friday about the inherent danger of drinking contaminated water.
The state government, through the Commissioner of Health, Dr. Rafiu Isamotu, had earlier informed worshipers that the river had been contaminated by indiscriminate mining activities carried out along the course of the river.

Thousands of worshipers and tourists besieged Osogbo, the capital of Osun State, for the annual festival which thronged to the river site where libations were made by the priest of Osun.

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Reopening of Sunyani Airport will boost economic growth and health care – Bono Regional Minister https://watervalleychamber.info/reopening-of-sunyani-airport-will-boost-economic-growth-and-health-care-bono-regional-minister/ Thu, 18 Aug 2022 13:18:44 +0000 https://watervalleychamber.info/reopening-of-sunyani-airport-will-boost-economic-growth-and-health-care-bono-regional-minister/ Bono Regional Minister Justina Owusu Banahene said the reopening of transportation service at Sunyani Airport will open the region up to many opportunities. Sunyani Airport was commissioned on August 3, 2022 by President Nana Akufo-Addo after the completion of the first phase of rehabilitation after six years of closure. Passion Air has announced the start […]]]>

Bono Regional Minister Justina Owusu Banahene said the reopening of transportation service at Sunyani Airport will open the region up to many opportunities.

Sunyani Airport was commissioned on August 3, 2022 by President Nana Akufo-Addo after the completion of the first phase of rehabilitation after six years of closure.

Passion Air has announced the start of air transport services between Sunyani and Accra from September 9, 2022 and plans to fly four times a week.

This will reduce road travel time from around eight hours to around one hour.

Speaking at a one-day stakeholder forum in Sunyani, organized by Passion Air, in collaboration with the Regional Coordinating Council, Regional Minister de Bono said, “The reopening of air transport will not only facilitate the travel time but will also stimulate economic growth. potential of the region through increased trade and investment”.

Reopening of Sunyani Airport will boost economic growth and health care - Bono Regional Minister
Justina Owusu Banahene, Bono Regional Minister

She implored trade and aviation industry players to seize the opportunity and promote the development of the region in the region’s ecotourism and cultural potential.

Justina Owusu Banahene also appreciated the impact that the reopening of air transport services would have on people’s health services in and around the region.

“Even though we have our regional hospital here, there are more health specialists in Accra at Korle Bu Teaching, Police, 37 military and other hospitals. Patients who need specialist attention can be flown to these facilities in time, or specialists can be flown to Sunyani to provide special medical attention. Doctors who wish to do their practical work in Sunyani can also come. All sorts of business, academic work, and more are now achievable on time.”

Reopening of Sunyani Airport will boost economic growth and health care - Bono Regional Minister
Some speakers at the Passion Air Bono RCC forum

However, she called on the population to attend it to ensure its sustainability.

The forum offered stakeholders, including traditional leaders, the opportunity to get answers to questions on the reopening of air transport services and related matters to achieve a successful operation of the Ghana Airport Company Limited and Passion Air.

Passion Air Sales and Marketing Director Samuel Tachie said they are ready to offer good customer services in Bono and surrounding areas, good punctuality and deliveries, and could increase the frequency of flights. beyond 4 depending on demand on the road.

Reopening of Sunyani Airport will boost economic growth and health care - Bono Regional Minister
Samuel Tachie, Director of Sales and Marketing, Passion Air

“Our ground operations are ready. We are here to do market activation activities – hence the forum, our operational teams are ready in Accra, and we will operate the maiden flight on September 9, 2022, after that, we will start commercial operations,” he said. -he declares.

He also noted that the response after their preparatory work in Sunyani is good and believes that as the breadbasket of Ghana, the region would be open for business, attract investors and allow people to travel between Sunyani and Accra in the sooner once they begin operations. .

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OPINION: Government policies should encourage – not stifle – economic growth https://watervalleychamber.info/opinion-government-policies-should-encourage-not-stifle-economic-growth/ Tue, 16 Aug 2022 21:21:20 +0000 https://watervalleychamber.info/opinion-government-policies-should-encourage-not-stifle-economic-growth/ Content of the article Unfortunately, on a case-by-case basis, government policies remain stuck in redistributing existing incomes rather than promoting income growth and virtue rather than economic pragmatism. Recessions are, by definition, periods when the production of goods and services, and the income associated with the production, declines. It is increasingly clear that the risks […]]]>

Content of the article

Unfortunately, on a case-by-case basis, government policies remain stuck in redistributing existing incomes rather than promoting income growth and virtue rather than economic pragmatism.

Recessions are, by definition, periods when the production of goods and services, and the income associated with the production, declines. It is increasingly clear that the risks of a recession in Canada, as in most Western countries, is increasing. Government policies that discourage economic growth increase the risk of prolonging the recession.

Alarm bells about Canada’s long-term economic growth prospects were ringing long before thoughts of recession. For example, as shown in the Federal Budget 2022 (graph 28), OECD predicts that Canada has the lowest prospects for growth in GDP per capita (adjusted for inflation) between 2020 and 2060 among 17 countries.

Content of the article

Meanwhile, Canada’s central bank is rising interest rates and reduce liquidity to control inflation and bring the economy back to relative price stability.

In light of these challenges, Ottawa and the provinces should focus on improving economic growth, that is, increasing the capacity of the economy to produce goods and services. This will ease inflationary pressures, as inflation is always tied to too many dollars for too few goods and services.

We apologize, but this video failed to load.

Creating a more predictable business climate is key to encouraging investment, which in turn underpins future economic growth. To this end, Ottawa and the provinces should act more aggressively and decisively to balance budgets with spending cuts and budget restriction.

Content of the article

Governments can also encourage growth by reduce business taxes and regulations. Corporate tax cuts will improve Canada’s attractiveness for business investment, a necessary improvement before COVID and the current economic malaise.

Reducing red tape is also important because it lowers the cost of doing business and frees up more time for entrepreneurs, small business owners and managers to focus on innovation, product development, customer service, etc

Ottawa and the provinces should also reduce marginal personal income tax rates to encourage entrepreneurship, innovation, risk-taking and labor market participation, which would improve prospects for economic growth.

And while not fashionable in Ottawa or many other capitals (including Washington), a revival of Canada’s oil and gas industry would improve economic growth and reduce global greenhouse gas emissions. . Replacing increased oil and gas production in Canada (and possibly the United States) with coal-fired electricity in countries like China and India would result in a net decrease in global emissions.

These are all win-win, pragmatic and proven solutions to the economic challenges we face today. Better policies focused on economic growth and informed by pragmatic solutions that have worked in the past are now urgently needed.

Jason Clemens is an Economist and Professor Steven Globerman is a Resident Scholar at the Fraser Institute.

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Need to build capacity for economic growth: Chief Minister of Nagaland https://watervalleychamber.info/need-to-build-capacity-for-economic-growth-chief-minister-of-nagaland/ Mon, 15 Aug 2022 17:41:23 +0000 https://watervalleychamber.info/need-to-build-capacity-for-economic-growth-chief-minister-of-nagaland/ Neiphiu Rio called on citizens to work to make Nagaland one of the most developed states. (Case) Kohima: Nagaland Chief Minister Neiphiu Rio said on Monday that the state needed to attract investment across all sectors to grow much faster and create more job opportunities for young people. After displaying the tricolor at the Civil […]]]>

Neiphiu Rio called on citizens to work to make Nagaland one of the most developed states. (Case)

Kohima:

Nagaland Chief Minister Neiphiu Rio said on Monday that the state needed to attract investment across all sectors to grow much faster and create more job opportunities for young people.

After displaying the tricolor at the Civil Secretariat of the State, the Chief Minister stressed the need to attract investors to exploit the rich natural resources, especially oil and natural gas, and to make the tourism sector more dynamic.

“We need to continuously build our capacities, especially the capacities and skills of our youth, to allow their inherent talent to flourish, in order to benefit and also contribute to faster economic growth,” he said. declared.

To achieve this goal, Neiphiu Rio called on every citizen to work to make Nagaland one of the most developed and progressive states in the country.

Recalling the role of freedom fighters, the Chief Minister said, “India achieved independence after a long struggle and on this historic occasion, we again remember with utmost gratitude the freedom fighters, who gave everything, many even gave their lives, to obtain freedom for all of us”.

Stressing that 75 years in the history of a nation is a very significant milestone, Neiphiu Rio said that India is now a proud, strong and confident nation.

“There are still many challenges to overcome, but with the determination and hard work of the people of this great nation, we will achieve the dreams of our founding fathers,” he said.

Noting that Nagaland, along with the rest of the country, has made good progress, he said, since the establishment of the state in 1963, successive governments have contributed to development efforts.

“We have redoubled our efforts to develop the talents of our people and to provide them with a conducive and enabling environment through infrastructure and better services through which there has been a significant improvement in the lives of our people,” said the leader says the minister.

Besides the performances of various Naga tribes at the main ceremony in the state capital, the main attraction was the cultural presentation of the Tikhir community, the newly recognized Naga tribe from the remote district of Shamator.

They performed a folk song honoring freedom fighters.

Through their performance, the Tikhir Nagas also recognized the role of the state government by recognizing them as the 15th major Naga tribe and making Shamator the 16th district on January 19 this year.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Emirates News Agency – SCTDA launches ‘holiday home project’ to diversify economic growth https://watervalleychamber.info/emirates-news-agency-sctda-launches-holiday-home-project-to-diversify-economic-growth/ Sun, 14 Aug 2022 14:22:00 +0000 https://watervalleychamber.info/emirates-news-agency-sctda-launches-holiday-home-project-to-diversify-economic-growth/ SHARJAH, 14th August, 2022 (WAM) — The Sharjah Trade and Tourism Development Authority (SCTDA), in cooperation with several government and private agencies and institutions in the emirate, has launched a regulatory framework, the Holiday Homes” of Sharjah Tourism, which aims to provide an official facilitation and control framework for residents of Sharjah who wish to […]]]>

SHARJAH, 14th August, 2022 (WAM) — The Sharjah Trade and Tourism Development Authority (SCTDA), in cooperation with several government and private agencies and institutions in the emirate, has launched a regulatory framework, the Holiday Homes” of Sharjah Tourism, which aims to provide an official facilitation and control framework for residents of Sharjah who wish to rent out places they own as holiday homes to tourists and visitors.

Under the terms and standards approved by the SCTDA as stipulated by the holiday home project, the residential units can be rented on a rotational basis, on a regular basis.

The project is successfully developing a formal facilitation framework in line with international best practice for operating vacation homes, and registering them under a unified umbrella and database.

The project will also provide potential users with a new source of revenue recognized by the government of Sharjah, offering official guidance on operating requirements, classification criteria, violations and other mechanisms.

Khalid Jasim Al Midfa, Chairman of SCTDA, said: “With Sharjah Tourism’s holiday home project, the emirate’s aspirations to continue to advance this sector have reached an important milestone, as the initiative not only introduces an innovative new service in the tourism landscape, but also puts Sharjah homeowners at the forefront to enjoy a ride that is poised to attract more visitors from around the world to the emirate. »

“Through the Sharjah Tourism Holiday Homes project, we seek to maximize the visitor experience by ensuring high quality classification standards and providing additional stay options in the emirate of Sharjah. This will further enhance cooperation between the Authority and holiday home providers by developing a system of legislation and regulation. This will help diversify sources of growth for the hospitality industry.”

It is estimated that there are currently over 300 holiday homes in Sharjah. The first year of the project will see the registration and licensing of 150 holiday homes.

Around 15 operating companies will be involved in the process and holiday home owners will have three months to complete the documentation process. The first phase of the project includes the organization of field visits and inspection campaigns, as well as the electronic or digital monitoring of second homes, their operators and owners.

The Authority is also working to strengthen cooperation and coordination with several government agencies in Sharjah for the development of regulatory procedures for holiday homes. These entities include the Department of Economic Development, the Municipality of Sharjah, the Department of Planning and Investigation in Sharjah, the General Directorate of Civil Defense in Sharjah, and the Sharjah Police.

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Why the CBN has hiked interest rates to support economic growth – The Sun Nigeria https://watervalleychamber.info/why-the-cbn-has-hiked-interest-rates-to-support-economic-growth-the-sun-nigeria/ Fri, 12 Aug 2022 23:54:43 +0000 https://watervalleychamber.info/why-the-cbn-has-hiked-interest-rates-to-support-economic-growth-the-sun-nigeria/ Interest rate is one of the primary tools deployed by central banks around the world to manage money flows and productivity in their respective jurisdictions. A change in the interest rate could have ripple effects on the macro economy and other key economic indicators like consumer spending and borrowing. For two and a half years, […]]]>

Interest rate is one of the primary tools deployed by central banks around the world to manage money flows and productivity in their respective jurisdictions. A change in the interest rate could have ripple effects on the macro economy and other key economic indicators like consumer spending and borrowing.

For two and a half years, the Central Bank had kept the monetary policy interest rate at 11.5%, but finally made the difficult decision to raise the lending interest rate by 13%, apparently to rein in the rate inflation rate while leaving other monetary policy parameters intact, including the liquidity reserve requirement (CRR) and the liquidity ratio (LR) of the apex bank, unchanged at 27.5% and 30%, respectively.

Members of the CBN’s Monetary Policy Committee voted six out of eleven members to raise the borrowing rate. The thin margin separating “no” from “yes” showed that the idea of ​​raising interest rates might not be very popular, even among members of the monetary policy committee.

The unexpected increase in the interest rate immediately attracted flak of the Manufacturers Association of Nigeria. The group described the measure as not favorable to manufacturers. Some analysts also agree with MAN and have repeatedly questioned the rationale, timing and merits of the CBN’s interest rate hike.

Critics of the new interest rate regime argue that raising interest rates will kill the already stifled manufacturing sector. They argue that the measure will push inflation beyond the roof rather than curb it. According to Vivian Ojadi, a Nigerian-born economic analyst based in the United States, what the country needs now is not a policy that will make an already bad situation worse. “Manufacturers will need access to credit at low borrowing rates to stay in business and not otherwise because a huge chunk of manufacturing activity requires huge capital funding,” she said.

However, in announcing the MPC’s decision to raise interest rates at the post-MPC briefing in Lagos, CBN Governor Mr. Godwin Emefiele stressed that the move was aimed at curbing the rise in interest rates. inflation to prevent it from stunting growth. The CBN Governor explained that while MPC was aware that raising rates could hurt manufacturing output, the apex bank is also aware that an aggressive move in inflation could retard growth.

He said: “As you have all noticed, globally since the beginning of the year, the level of inflation has increased. To the extent that we see today, even in developed economies, the fact that even due to rising inflation, supply chain issues and the like, even most of these developed economies are already facing the threat of recession.

Specifically, he noted that with inflation in the United States rising from 2.5% in 2020 to 9.1%, according to the latest data, the Federal Reserve has had to raise rates four times this year alone.

Similarly, according to him, “in Egypt, the monetary authority raised its rates three times this year because in 2020 the inflation rate was 7.3% and today it is 13.2%. Ghana has increased the rate three times this year; inflation (in Ghana) has fallen from 7.8% in 2020 to 30%.

Emefiele, who pointed out that some of the world’s advanced economies, such as the United States and the European Union (EU) have suffered massive declines in production, said that with the United States registering negative production in the first quarter of this year, there was real fear that if the world’s largest economy recorded a second drop in output in the second quarter of 2022, it would fall into recession, a development that would negatively impact the global economy.

According to him, concern over soaring inflation and its impact on growth is such a serious problem all over the world right now that MPC members have not even bothered to consider options for maintaining or reduction of the MPR during their meeting.

The CBN Governor said: “Spiking inflation is a very serious matter that MPC members take very seriously because what you see is that as inflation continues to climb aggressively, it would undoubtedly begin to stunt the growth of any economy.

“While in Nigeria, which we have done in our own attempt to pursue a policy of price stability conducive to growth, we have tried over the past two (MPC) meetings to leave rates as they are , while at the same time, we have placed great emphasis on how to improve production growth.

As he said, “In 2020, inflation in Nigeria was 12.13%, today the latest data released puts inflation at 18.6%. MPC members believe we can’t just hold rates, we can’t just keep watching inflation grow as it rises; something must be done to contain inflation.

“We carried out a very serious analysis, looking at the various data that were presented and we felt that it was necessary to get inflation under control, not only because we want to look at what other economies are doing, but also because that we need to do a lot more work on inflation, and that’s why MPC hasn’t even considered whether to keep rates constant or ease them.

The CBN Governor further stated that while MPC members were aware that some analysts did not expect the committee to tighten up in a second consecutive meeting on the grounds that such a move would increase the cost of borrowing and also weaken manufacturing output, the committee would continue to tighten if inflation continues to rise.

He said: “The important thing is that as long as we see inflation at a level that can stunt growth, it needs to be addressed, while looking at how to use development finance tools to push for improved production. growth. We are doing that and at the same time I want to signal that the MPC is very determined that if inflation continues at this rate, in a particularly aggressive way, we would continue to tighten.

However, reacting to the MPC’s decision, analysts at CSL Research warned that a perpetual rate hike could hamper the country’s fragile economic growth. The analysts, in a note released over the weekend, said: “The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has unanimously raised the MPR from 13.0% to 14.0 %, the second consecutive increase and a cumulative increase of 250 basis points. within three months.

“With the current narrative on inflation, the committee was of the view that neither maintaining nor easing policy parameters was an option, given the impact of mounting inflationary pressures, which could begin to erode the moderate gains achieved in improving consumer purchasing power.

“We remain of the view that a continued rise in rates will likely limit the country’s fragile growth while achieving very little in terms of fighting inflation and attracting foreign flows.”

The previous 150 basis point hike in the policy rate had no significant impact on the inflation figures. On the contrary, the general price level has become even higher.

Despite the doubts expressed about the rate hike by some analysts, the consensus in industry circles is that the CBN is right to deploy traditional monetary policy tools to fight the savings-eating monster. From the tone of the CBN Governor’s speech, it seems that the apex bank will not relent until it wins the battle against inflation.

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