DAKAR – West Africa is facing its worst food crisis on record driven by conflict, drought, and the impact of the war in Ukraine on food prices and availability, aid agencies said on Tuesday.
There are about 27 million people suffering from hunger in the region and that number could rise to 38 million by June, a 40% increase from last year and a historic high, said 11 international aid organizations in a joint statement.
Large swathes of West Africa, including parts of Burkina Faso, Mali, Niger and Nigeria, are facing Islamist insurgencies that have forced millions of people off their land. Along with Chad, those are the countries most affected by hunger.
The region has also seen worsening floods and droughts due to the effects of climate change, making it harder to farm. Cereal production in 2021/22 was down 39% year-on-year in Niger and 15% in Mali, according to West Africa‘s Food Crisis Prevention Network.
On top of that, global food prices have surged and trade has been disrupted due to Russia’s invasion of Ukraine. Border closures due to COVID-19 have also had a negative impact, the Food Crisis Prevention Network said.
“What is new and worsening is mainly all the displaced people and abandoned land because of conflict, but also we are witnessing new drivers,” said Assalama Dawalack Sidi, Oxfam’s regional director for West and Central Africa.
Six West African countries import 30-50% of their wheat from Russia and Ukraine, according to the United Nations Food and Agriculture Organization (FAO).
The Ukraine war also risks redirecting much-needed funding from the region, Sidi warned.
“Many donors have already indicated that they may cut funding for Africa to pay for refugees in Europe,” she said. – Reuters
MANILA – The World Bank cut its growth forecast for East Asia and the Pacific for 2022 to reflect the economic impact of Russia’s invasion of Ukraine, warning the region could lose further momentum if conditions worsen.
The Washington-based lender said in a report on Tuesday it expected 2022 growth in the developing East Asia and Pacific (EAP) region, which includes China, to expand 5.0% percent, lower than its 5.4% forecast in October.
But growth could slow to 4.0% if conditions worsened and government policy responses were weaker, World Bank said.
China’s economy is expected to grow 5.0% this year, down from a previous estimate of 5.4%, it said, noting its government’s capacity to provide stimulus to offset adverse shocks.
“The region confronts a triad of shocks which threaten to undermine its growth momentum,” said World Bank East Asia and Pacific Chief Economist Aaditya Mattoo.
The war between Russia and Ukraine, which Mattoo said was the “most serious risk” to the region’s growth outlook, is leading to food and fuel price increases, financial volatility and reduced confidence all over the world.
Mattoo said Russia’s invasion of Ukraine was more worrying given that the region was still contending with the effects of the COVID-19 pandemic, a structural slowdown in China and faster inflation that could prompt quicker U.S. monetary tightening.
The war’s impact on economies in East Asia and the Pacific would vary depending on their exposure and resilience, Mattoo said. Excluding China, output in the rest of the region is projected to expand 4.8% this year.
“Just as the economies of East Asia and the Pacific were recovering from the pandemic-induced shock, the war in Ukraine is weighing on growth momentum,” World Bank Vice President for East Asia and Pacific Manuela Ferro said in a statement.
“The region’s largely strong fundamentals and sound policies should help it weather these storms.” — Reuters
Prices of widely used goods rose to a six-month high in March as food, utilities, and transport costs increased amid a spike in global oil prices brought by Russia’s invasion of Ukraine.
Preliminary data from the Philippine Statistics Authority (PSA) showed annual headline inflation at 4% last month, faster than the 3% in February’s 3% but slightly slower than the 4.1% print in March last year.
This matched the 4% print in October last year and the fastest since the 4.2% inflation in September 2021.
It also matched the 4% median in a BusinessWorld poll conducted last week, and near the upper bound of the 3.3-4.1% forecast of Bangko Sentral ng Pilipinas (BSP) for March.
Month on month, it picked up 0.6%.
For the first quarter, inflation settled at 3.4%, within the 2-4% of the central bank’s inflation target this year.
Inflation of heavily weighted food and non-alcoholic beverages picked up to 2.6% in March from 1.2% in February.
Housing, water, electricity, gas and other fuels rose to 6.2% from 4.8%, while transport quickened to 10.3% from 8.8%.
Meanwhile, the February inflation rate for the bottom 30% of households, which is still using the 2012-based prices, picked up to 3.3% last month from 2.7% in February, but lower than 5.5% in March 2021.
Year to date, inflation as experienced by poor households settled at 3%.
The PSA said the rebased 2018-based inflation for bottom 30% income households is scheduled to be released in December 2022. — Bernadette Therese M. Gadon
Metropolitan Bank & Trust Co. (Metrobank) will virtually hold its 2022 Annual Stockholders’ Meeting on Wednesday, April 27, 2022 at 2PM via Cisco Webex.
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Airplanes are seen on the runway at the Ninoy Aquino International Airport, March 20. — PHILIPPINE STAR/ MICHAEL VARCAS
By Revin Mikhael D. Ochave, Reporter
FOREIGN business chambers are pressing the government to immediately issue the implementing rules and regulations (IRR) of recently signed laws amending the Public Service Act (PSA) and Foreign Investment Act (FIA) before President Rodrigo R. Duterte steps down from office by end June.
“Consistent with the aim of Executive Order 166, which adopts the Economic Development Cluster’s 10-point policy agenda for pandemic recovery, to speed up and sustain the country’s recovery from the coronavirus disease 2019 (COVID-19) pandemic, we call on relevant government agencies to ensure that the IRRs on Republic Act (RA) 11659 and RA 11647 are also issued, with sufficient stakeholder consultation, before the end of the current administration,” members of the Joint Foreign Chambers (JFC) said in a statement on Monday.
Mr. Duterte last month signed RA 11659, which amends the 85-year-old Commonwealth Act No. 146, or the PSA Act, easing restrictions on full foreign ownership of businesses in key sectors such as telecommunications, shipping, airlines, railways and subways.
He also signed into law RA 11647, which amends the Foreign Investment Act in order to make the Philippines more attractive to foreign investors.
“We share this administration’s thrust to propel the country’s economic recovery post pandemic through the enactment of game-changing economic liberalization laws,” JFC said. “Prompt issuance of IRRs for these laws would hasten the realization of gains expected from the passage of these liberalization laws, to the benefit of the public.”
Foreign business groups have been pushing for the passage of these measures, along with RA 11595 or the amendments to the Retail Trade Liberalization Act, to attract foreign capital needed to drive Philippine economic recovery from the coronavirus pandemic. The rules enforcing it were released last month.
Foreign chambers said the Philippines would benefit from the capital, technologyand increased competition that come with these economic reform measures, adding that this would bring more jobs and better products and services.
“The members of the JFC express strong support for the full implementation of these new laws and pledge our efforts to bring the reforms to the attention of appropriate firms in our member countries in the United States, Australia-New Zealand, Canada, Korea, Japan, and Europe and encourage these firms to invest in the Philippines,” they said.
John D. Forbes, American Chamber of Commerce of the Philippines, Inc. senior adviser, said in a Viber message the group is waiting for public consultations on the implementing rules.
“We appreciate being invited to comment on the draft implementing rules and regulations, which is a good universal practice in all countries, to obtain views of the private sector before new rules become final. During these public consultations, we often make suggestions. When the IRRs are final, we can better propagate the new reforms abroad to potential investors,” Mr. Forbes said.
Lars Wittig, European Chamber of Commerce of the Philippines president, said in Viber message the group is hoping the rules would follow “the spirit of the law” and that there “will be no bureaucratic or other layers to complicate and discourage foreign direct investments in the Philippines.”
“We look forward to the business community and other relevant stakeholders participating in the consultations of the implementing rules and regulations to ensure that all possible inputs are taken into consideration as the measures are implemented,” he added.
In a Viber message, Socioeconomic Planning Secretary Karl Kendrick T. Chua said the National Economic and Development Authority (NEDA) would be the lead agency in drafting the rules.
“We will announce (the start of the consultations) when available,” Mr. Chua said, without giving details.
The amended Public Service Act allows 100% foreign ownership will be allowed in key sectors such as telecommunications, airlines, railways and shipping, which were previously covered by the 40% foreign ownership limit set by the Constitution.
Changes to the Foreign Investment Act allow international investors to set up and fully own domestic enterprises, including micro, small and medium enterprises in the country.
Foreign nationals can now set up these companies with a minimum paid-in capital of $100,000, provided they meet certain conditions.
The JFC statement was signed by the American Chamber of Commerce of the Philippines, Australian-New Zealand Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce & Industry of the Philippines, Korean Chamber of Commerce of the Philippines and Philippine Association of Multinational Companies Regional Headquarters, Inc.
The Bureau of Customs and the National Bureau of Investigation-Special Action Unit raided a warehouse filled with illegally imported red and yellow onions and other agricultural products in Punturin, Valenzuela City, March 11. — BUREAU OF CUSTOMS
THE BUREAU of Customs (BoC) on Monday said it collected a record P70.72 billion in March, mainly due to higher imports and improved valuation.
In a statement, it said it exceeded the monthly collection target of P57.69 billion by 23%.
“The BoC posted a surplus of P13.037 billion or 22.6% higher than its target, and remarkably, the bureau has consistently met and exceeded its monthly revenue collection target since January this year,” it said.
The March collection was also 29% higher than P54.5-billion in March 2021.
Citing a preliminary report from the BoC-Financial Service, the bureau said 14 of the 17 collection districts hit their monthly targets.
These were the ports of San Fernando, Manila, Batangas, Iloilo, Cebu, Cagayan de Oro, Zamboanga, Davao, Subic, Clark, Aparri, and Limay, as well as the Manila International Container Port (MICP) and Ninoy Aquino International Airport (NAIA).
For the first three months of 2022, the BoC collected P188.506 billion, making up nearly 27.8% of the 2022 collection target of P679.226 billion.
The bureau attributed its strong revenue collections to the “improving volume of importation in the country, the improved valuation, and the intensified collective efforts of all the collection districts.”
The Department of Finance (DoF) earlier said in a statement modernization programs and automated processes were behind increased collections by the Customs bureau.
The BoC modernization program integrated data from the ports of Manila, Cebu and Davao and the MICP for monitoring by the Customs Operation Center (COC), Customs Commissioner Rey Leonardo B. Guerrero said in the statement.
He cited BoC initiatives included the cargo targeting system and information and communications technology-enabled projects that have automated the submission, processing and approval of applications by importers and exporters.
The BoC plans to roll out a day-and-night payment system for exporters to speed up the release of goods being delayed by the limited hours of operations. The payment system only runs from 8 a.m. to 5 p.m., Mr. Guerrero said.
In 2021, the BoC collection reached P645.77 billion, 4.7% higher than its full-year goal of P616.75 billion. This was also 20% higher than P537.69 billion in 2020, when the pandemic affected supply chains.
The BoC and Bureau of Internal Revenue collected P2.732 trillion in 2021, 1.26% higher than their combined target of P2.698 trillion. — Tobias Jared Tomas
THE PHILIPPINE central bank is likely to raise its benchmark rate by a total 75 basis points in the second half when the economy is expected to regain its pre-pandemic level, Mitsubishi UFJ Group (MUFG) said.
“We continue to expect policy tightening to materialize in the second half of 2022, but a cumulative 75 basis points (bps) of rate hikes could be done versus our previous estimate of 50 bps,” it said in a note on Monday.
Last month, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they would only consider increasing interest rates by the second half.
The Monetary Board on March 24 kept rates steady, saying it would keep supporting recovery until it gains traction. It, however, stressed it would be ready in case there was a need to respond to second-round effects of inflation.
MUFG analyst Sophia Ng said the progress of the Philippines’ economic rebound would determine the timeline of the BSP’s policy normalization.
“The BSP is likely to hike as early as the third quarter because that’s when the economy is expected to return to pre-pandemic levels as well. This would be the most important factor determining the timing of the first rate hike by the BSP,” she said in an e-mail.
She added that the central bank would likely become more aggressive if inflation breaches the 4.3% full-year projection.
“Looking at the current trajectory, the headline consumer price index may exceed 4% as soon as June, which is above the BSP’s inflation target range,” Ms. Ng said.
“As there is scope for oil prices to continue to rise, there are upside risks to the BSP’s inflation outlook. Should supply-side measures fail to rein in inflationary pressures the onus would be on the BSP to do so via the demand side by raising interest rates,” she added.
Inflation in March was likely 4%, according to a median estimate of 18 analysts in a BusinessWorld poll, near the upper end of the central bank’s 3.3-4.1% estimate. This would still be within the 2-4% target but faster than 3% in February. Inflation data is scheduled to be released on April 5.
The Monetary Board’s next rate-setting meeting is on May 19, while its first review in the third quarter is on Aug. 18.
MUFG also warned that the peso might continue to weaken due to risk aversion caused by the policy normalization of the US Federal Reserve.
It noted that the peso has been among the worst-performing Asian currencies in March. The peso last month slumped to its weakest level since October 2018.
On March 7, the peso breached the P52-a-dollar level for the first time during the month, closing at P52.18. Its weakest close in March was P52.475 on March 14.
The peso gradually strengthened to close at P51.74 on March 31, which is 1.45% weaker than its 2021 finish of P50.999.
“With the Philippines likely to record net capital outflows as well due to ongoing risk aversion and upcoming rate hikes by the Fed, the Philippines’ balance of payments is expected to record a deficit in 2022 from 2021’s surplus at 0.2% of gross domestic product, which will put further downward pressure on the peso,” MUFG said.
The Fed started to hike interest rates last month in a widely expected move to quell decades-high inflation in the United States.
Mr. Diokno said the BSP does not need to move in lockstep with the US Federal Reserve, noting that they only take into account external developments as far as they affect growth and the inflation outlook.
The Japanese bank also said the war in Ukraine has propelled demand for the safe-haven dollar.
“This will inevitably lead to larger trade and current account deficits, making the peso more vulnerable to rallies in oil prices as opposed to most other Asia excluding Japan currencies,” MUFG said.
It noted that the BSP’s current account deficit projection of 3.8% of the gross domestic product in 2022, if realized, will be the largest since the 5.3% in 1997 during the Asian Financial Crisis.
Despite the uncertainties caused by the war, MUFG on Friday raised its growth outlook for the Philippines to 6.5% from 6% previously, noting consumer spending amid more relaxed restrictions could boost recovery. However, this remains below the 6-7% target set by the government. — Luz Wendy T. Noble
AC ENERGY Corp. (ACEN) has partnered with German solar developer ib vogt to build at least 1,000-megawatt (MW) of renewable energy projects in the Asia-Pacific region, the Ayala-led company said on Monday.
“The joint venture partners will focus on late-stage, shovel-ready projects in Indonesia, Vietnam, Malaysia, Laos, Bangladesh, and other countries in the region,” ACEN said in a company disclosure.
It said the minimum operational capacity that will be built “over the coming years” has a potential for “further expansion.”
“Under the terms of the deal, ACEN expects to invest up to US$200-million equity investment in addition to debt funding to accelerate the deployment of renewable energy in Asia,” the listed energy platform added.
The two companies will establish a funding platform that will be used for building and running large-scale solar power plants across the region, prioritizing projects that are already in advanced stages of development.
Most of the projects will be derived from ib vogt’s pre-existing projects from its Asia development pipeline that is expected to deliver 5,000 MW, with some of the initial projects already slated for construction this year.
Patrice R. Clausse, president and chief operating officer of ACEN’s international business, said setting up the platform would build both companies’ presence in the region.
“ACEN has a strong history of partnering with best-in-class energy developers to build renewable energy projects across the Asia-Pacific region. ib vogt has a proven track record of developing solar projects across Europe, Asia, and North Africa,” he said.
Meanwhile, ib vogt Chief Executive Officer Anton Milner said the joint venture would accelerate the company’s ability to impact on the transition to clean and sustainable energy in Asia.
“This platform will complement our global strategy of developing a diversified portfolio of high quality IPP (independent power producer) assets,” Mr. Milner said.
On its website, ib vogt said it was provided in November last year with a 40-million-euro syndicated loan by German lender Commerzbank AG to support its working capital needs. ib vogt Chief Financial Officer Carl von Braun noted that the company was facing an important decade for renewable energy.
Berlin-based ib vogt has presence in more than 40 countries. It has built or is building more than 2,500 MW of photovoltaic power plants globally with a project pipeline of more than 40,000 MW.
ACEN aims to be the largest listed renewables platform in Southeast Asia as it targets to install up to 5,000 MW of renewables capacity by 2025. It now has more than 3,800 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. Renewables account for 87% of the installed capacity.
At the stock exchange on Monday, shares in ACEN inched up by P0.16 or 1.84% to close at P8.86 each. — Ram Christian S. Agustin
JON BATISTE accepts the Grammy award for Album of the Year for We Are during the 64th Annual Grammy Awards show in Las Vegas, on April 3. — REUTERS/MARIO ANZUONI
LAS VEGAS — Multi-genre artist Jon Batiste won album of the year and R&B duo Silk Sonic took two of the top honors at a Grammy awards ceremony that featured a surprise appeal for support from wartime President Volodymyr Zelensky of Ukraine.
Mr. Batiste landed the night’s biggest prize for We Are, an album inspired by the Black Lives Matter movement.
“I believe this to my core —there is no best musician, best artist, best dancer, best actor,” Mr. Batiste said. “The creative arts are subjective … I just put my head down and I work on the craft every day.”
Silk Sonic, featuring Bruno Mars and Anderson .Paak, claimed the song and record of the year awards for their 1970s inspired hit “Leave the Door Open.”
“We are really trying our hardest to remain humble at this point,” jokedMr. Paak as the pair accepted the second honor.
Olivia Rodrigo, the 19-year-old singer of heartbreak ballad “drivers license,” was crowned best new artist.
“This is my biggest dream come true. Thank you so much!” Ms. Rodrigo said as she held her trophy.
Midway through the ceremony, host Trevor Noah introduced a video message from Mr. Zelensky, who contrasted the joy found through music to the devastation caused by Russia’s invasion of his country more than a month ago.
“What is more opposite to music? The silence of ruined cities and killed people,” Mr. Zelensky, wearing a green T-shirt, said in a hoarse voice. “Fill the silence with your music,” he added. “Support us in any way you can. Any, but not silence.”
The remarks preceded a John Legend performance that featured two Ukrainian musicians and a Ukrainian poet.
The highest honors in music were postponed from January during a spike in coronavirus disease 2019 (COVID-19) cases and moved from Los Angeles to the MGM Grand Garden Arena in Las Vegas. Thousands of spectators packed the venue, in contrast to last year’s scaled-down outdoor event.
Winners were chosen by some 11,000 voting members of the Recording Academy.
Mr. Noah urged the audience to think of the evening as “a concert where we are handing out awards.”
“We are going to be keeping people’s names out of our mouths,” Mr. Noah added, a jab about the Oscars slap by actor Will Smith, who told comedian Chris Rock not to mention his wife’s name.
Winners were chosen by some 11,000 voting members of the Recording Academy. — Reuters
And the winner is…
LAS VEGAS — The Grammy awards, the highest honors in the music industry, were out at a live ceremony in Las Vegas on Sunday. Below is a list of winners in key categories.
• Album of the Year:
We Are, Jon Batiste
• Record of the Year:
“Leave the Door Open,” Silk Sonic
• Song of the Year:
“Leave the Door Open,” Silk Sonic
• Best New Artist: Olivia Rodrigo
• Best Pop Duo/Group Performance:“Kiss Me More” by Doja Cat featuring SZA
• Best Pop Vocal Album:
Sour, Olivia Rodrigo
• Best Rock Performance:
“Making A Fire” by Foo Fighters
• Best Rap Performance:
“Family Ties” by Baby Keem featuring Kendrick Lamar
