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Category: Banking

  • MIL-OSI Global: Tito Mboweni: South African Minister and Reserve Bank governor who drove significant economic reforms

    Source: The Conversation – Africa – By Roy Havemann, Research Associate, Stellenbosch University

    Tito Mboweni, former South African Reserve Bank Governor, Minister of Finance, and Minister of Labour was arguably one of the country’s most consequential economic policymakers and drove several significant economic
    reforms.

    Mboweni passed away on 12 October 2024 after a short illness.

    Born on 16 March 1959, he received a Bachelor of Arts in Economic and Political Science from the National University of Lesotho in 1985. He had attended the University of the North between 1979 and 1980 but left South Africa to go into exile in his second year of studies. In 1987, he obtained a Master of Arts in Development Economics from the University of East Anglia in the UK.

    He began his career in government as Minister of Labour in President Nelson Mandela’s 1994 administration. As the first Minister of Labour in the new democratic South Africa, he took several steps to improve the relationship between business and labour.

    Among these were major legislative reforms, including the Basic Conditions of Employment Act, Labour Relations Act, Mines Health Safety Act and the NEDLAC Act, designed to improve cooperation between different “constituencies” – labour, business, and government.

    He was appointed as the Eighth Governor of the South African Reserve Bank in
    1999. In this role he introduced inflation targeting and presided over the first monetary policy committee meetings. This substantially modernised the Bank’s approach. For instance, Mboweni introduced a monetary policy statement outlining the reasons for the Bank’s decisions. These were televised, bringing new transparency to the conduct of monetary policy. Before this, the bank’s targeted monetary policy aggregates, and its communications, were made through printed documents.

    Monetary Policy Forums took monetary policy to many parts of the country, bringing a new openness and engagement between the Bank and ordinary South Africans.

    He held the position of Governor until 2009. But his legacy endures. The South African Reserve Bank is highly regarded across the world, with an inflation rate that is firmly within the target range and well-anchored inflation expectations.

    As finance minister

    Shortly after Cyril Ramaphosa was inaugurated as President of the Republic of South Africa in 2018, the then Finance Minister Nhlanhla Nene resigned. The President appointed Mboweni as Minister of Finance in October 2018.

    Mboweni made three consequential decisions in South Africa’s economic policy
    trajectory.

    The first was the decision, in 2019, to freeze government wages from 2020. He was alarmed by the rapid and unsustainable increase in government wages. Together with slowing economic growth, this led to a fiscal position that was deteriorating at an alarming pace. The wage freeze ultimately started the slow return to the fiscal rectitude that had been the hallmark of the period of government before Jacob Zuma became president in 2009.

    The second, also in 2019, was the publication of a paper on economic growth. It was known officially as “Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa”.

    Unofficially it was known as the “Tito Paper”.

    This set out a programme of much-needed economic reforms – including steps to lift the restrictions on private power generation. In the six years since the publication of the policy paper (and the subsequent reforms), a total of 6 GW of non-Eskom electricity has been added to the grid, saving South Africa six stages of load-shedding.

    Other recommendations of the paper are being followed, including those for rail, telecommunications and ports.

    The third was the introduction of a comprehensive response to the COVID-19 pandemic. This included a significant expansion of the grants system, with a Social Relief of Distress grant pegged at R350 per person per month. Research by the NIDS-CRAM initiative, led by Dr Nic Spaull of Stellenbosch University, has highlighted how the grant positively affected millions of people’s lives.

    Enduring legacy

    It is difficult to think of any other economic policymaker who has left such an enduring legacy.

    Stellenbosch University awarded him an honorary doctorate in 2010 and appointed him Professor Extraordinary of Economics from 2002 to 2005 . He was a frequent participant at Bureau for Economic Research conferences. There, his engaging speaking style made him a popular drawcard.

    His love of red wine and engaging conversation made him a popular visitor at the university. In 2010, he spent time at the Stellenbosch Institute for Advanced Studies as part of a research group working on the global financial crisis and its consequences for democracy.

    This is an edited version of a tribute published by the Bureau for Economic Research, Stellenbosch University.

    Roy Havemann is a senior economist at the Bureau for Economic Research where he leads the Impumelelo Economic Growth Lab. He was previously at the National Treasury where, amongst other things, he was Tito Mboweni’s speechwriter.

    – ref. Tito Mboweni: South African Minister and Reserve Bank governor who drove significant economic
    reforms – https://theconversation.com/tito-mboweni-south-african-minister-and-reserve-bank-governor-who-drove-significant-economic-reforms-241236

    MIL OSI – Global Reports –

  • MIL-OSI Global: The remarkable career of Tito Mboweni: from South African freedom fighter to central bank governor and trusted politician

    Source: The Conversation – Africa – By Jannie Rossouw, Visiting Professor at the Business School, University of the Witwatersrand

    It is sad to write about Tito Mboweni in the past tense.

    Tito Titus Mboweni, who was born on 16 March 1959 in Tzaneen, a town in South Africa in what was then the Transvaal, passed away after a short illness in Johannesburg on 12 October 2024.

    After the announcement of his death, tributes poured in for this South African leader. Many have been touched by his legacy in politics, business, governance and the economy of South Africa.

    While not without some shortcomings, his career from being a freedom fighter to becoming a trusted and popular public figure serves as an enduring example to others in leadership.

    A career in service of society

    During his lifetime, Mboweni managed to achieve multiple accomplishments. The first period of his career was as member of the African National Congress (ANC) liberation movement in exile, where he served as deputy head of the Department of Economic Policy in the ANC.

    Political and public service was a second part of his career.

    After the democratic elections of 1994, Mboweni served as minister of labour in the first cabinet of Nelson Mandela. In a surprise announcement in 1998, Mboweni was appointed as an advisor to the then governor of the South African Reserve Bank, Chris Stals. This was to prepare Mboweni for appointment as governor after the retirement of Stals.

    Mboweni could not move directly into the position as governor, as section 4(2)(a) of the South African Reserve Bank Act states that the “governor shall be a person of tested banking experience”.

    By serving as an advisor to Stals for a little over a year, Mboweni met this legal requirement. He was appointed as the eighth governor of the central bank on 8 August 1999.

    At the time there were concerns about his commitment to the continuation of a policy of controlling inflation, ushered in successfully by Stals in the preceding decade. But Mboweni soon showed his commitment to the continued control of inflation.

    He replaced the previous structure used for monetary policy decisions by Stals by establishing the Monetary Policy Committee in October 1999. This was in preparation for the adoption of inflation targeting as a policy objective for the bank.

    After his retirement from the Reserve Bank, Mboweni commenced with the next stages of his career: a successful stint in business, which was interrupted by his return to politics. He served as minister of finance from 9 October 2018 to 5 August 2021. In this role he made it very clear that South Africa had to adopt a more prudent fiscal policy to avoid a too rapid growth in government debt. But this viewpoint made him unpopular with many cabinet and ANC colleagues, trade unions and others.

    Once he left politics, Mboweni resumed his career in business. He also served the South African community in different ways. He held a number of appointments as honorary professor and was also a patron of the arts. He was also well-known for his enthusiasm for cooking, which he often posted about on social media.

    Challenges

    Mboweni had to withstand political pressure on the issue of the role of the Reserve Bank. He was exemplary in his protection of the autonomy and independence of bank, which is set out in sections 223 to 225 of the South African Constitution.

    In this respect, he followed in the footsteps of Stals.

    Politicians favour lower interest rates, particularly during election periods. But Mboweni was not afraid of being unpopular. He was steadfast in protecting the autonomy and independence of the South African Reserve Bank. Mboweni also led the central bank during the global financial crisis of 2008 . South Africa was one of the countries that did not suffer a banking crisis or collapse during that period.

    Achievements

    Mboweni’s single biggest achievement was his successful transition from an ANC freedom fighter in exile to his roles as senior politician, central bank governor and businessman.

    His successful adoption of a policy of inflation targeting despite opposition was also a major achievement. Under Mboweni’s leadership the South African Reserve Bank showed critics that South Africa can make a continuous commitment to a low rate of inflation.

    Other than establishing the Monetary Policy Committee, Mboweni also played a major role in bringing monetary policy closer to the people. Under his leadership, the bank was one of the first central banks in the world to announce monetary policy decisions about interest rates at a media conference. He also introduced the central bank’s Monetary Policy Forums, where the public can engage the senior leadership of the central bank on monetary policy.

    Shortcomings

    Mboweni had many successes in business, central banking and politics. He also a few shortcomings. One was that he did not insist on the readoption of the lower inflation target (3%-5%) announced in 2001, that was later abandoned. A lower inflation target some 20 years ago would have anchored South Africa’s inflation rate and inflation expectations on a lower trajectory.

    It is difficult to judge whether Mboweni’s somewhat untimely (though not necessarily unexpected) resignation as finance minister can also be regarded as a failure. However, a finance minister can only function optimally with the support of the head of state. Such support was clearly lacking.

    Legacy

    Mboweni leaves a legacy of a successful transformation from a freedom fighter to a businessman, central banker and politician. If more former freedom fighters made this successful transition, South Africa’s prospects would look considerably better.

    Another legacy is honesty and integrity. Mboweni was never embroiled in scandals or questionable business dealings. If other ANC cadres could follow this example, South Africa would also offer a better future for all its citizens.

    As an NRF-rated researcher, Jannie Rossouw received research funding from the NRF. He serves as independent non-executive Board member of Finbond Mutual Bank, Noordelike Helpmekaar Study Fund and Satsanga Fintech Holdings.

    – ref. The remarkable career of Tito Mboweni: from South African freedom fighter to central bank governor and trusted politician – https://theconversation.com/the-remarkable-career-of-tito-mboweni-from-south-african-freedom-fighter-to-central-bank-governor-and-trusted-politician-241234

    MIL OSI – Global Reports –

  • MIL-OSI Economics: Introducing a digital euro: The cross-border dimension

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Dear Governor Das,

    dear colleagues,

    ladies and gentlemen,

    I am delighted to be here with you today, at this wonderful location, visiting this wonderful country – one of the cradles of world civilisation and culture. 

    The Reserve Bank of India is currently celebrating its foundation 90 years ago. My heartfelt congratulations to all members of staff on this anniversary! Last year, Indian real-time payment systems processed about 129 billion digital transactions.[1] This means that 84% of electronic payment transactions took place in real time. During the same period, only about 19% of electronic payments worldwide were real-time transactions. In my view, this is impressive evidence of the excellent work the RBI has accomplished over the last few years.

    Payment systems and their cross-border interaction are also an important topic at this conference. This is because cross-border payments are an integral part of our globalised world. Historically, from the Renaissance to modern times, correspondent banks have acted as the bedrock for cross-border payment transactions.[2] However, even today, transferring funds by means of correspondent banking is often slow, involves many steps and may result in high and non-transparent fees. 

    Moreover, in the last two decades, correspondent banking has been subject to a downward trend, mainly due to increasingly strict compliance requirements. Between 2011 and 2022, the number of active correspondents decreased by roughly one third, while the value of cross-border payments increased by almost 40%.[3] Obviously, this is an alarming trend in terms of market competition.

    To some extent, technical progress might be able to compensate for a tighter correspondent banking market. In particular, in the last decade, a number of FinTech companies have provided new opportunities to streamline cross-border payments using innovative methods like blockchain and digital wallets.  The FinTech revolution focused on private money. However, it now appears there may be another revolution on the horizon – this time involving payments in central bank money: the introduction of central bank digital currencies (CBDC).

    In my talk, I would like to address CBDC developments with a particular focus on cross-border payments. First, I will outline some general points about the potential impact and benefits of the introduction of CBDC for processing cross-border transactions. Second, I will aim to highlight this topic in the context of the Eurosystem’s work on a digital euro – the envisaged European retail CBDC.

    2 CBDCs and cross-border payments

    Given that there are correspondent banks and FinTechs working on digital innovations as well, let me begin with a question. What would be the additional benefits of CBDCs in the area of digital payments? The introduction of CBDCs would facilitate a setup of new infrastructures for digital payments. On the one hand, this makes high initial investment necessary. On the other hand, once a CBDC is established with its new infrastructure, it could catalyse broad improvements in payment systems, including cross-border transactions – by introducing new message standards and shorter process chains, for example.[4] 

    Starting on a green field may be one major advantage of CBDCs. Experience shows that, in particular, implementing common standards is not an easy task. Take ISO 20022, for example.[5] The International Organisation for Standardisation proposed this common standard for financial messages in cross-border payments in 2004. It will be probably more widely used in payment systems on a global level next year – 21 years after the initial proposal. This period feels even longer when you think of all the innovations that have taken place in the meantime – the first iPhone was presented in 2007, the concept of a decentralised blockchain in 2008.

    However, to be able to reap the benefits for cross-border payment, interoperability between CBDCs must be ensured early on. To this end, central banks should already begin to consider the best ways for interaction in the planning phase. In my view, we have a historic opportunity to vastly improve cross-border transactions by making different CBDCs interoperable from the very beginning.

    Indeed, a number of projects are already researching the best ways of making CBDCs interoperable. For instance, the Bank for International Settlement (BIS) Innovation Hub in Singapore and a number of national central banks in the Indo-Pacific region set up Project Dunbar to explore how a common platform for CBDCs could enable cheaper, faster and safer cross-border payments.[6] 

    I am strongly in favour of a multilateral approach in this area, because this best serves the interests of all participants. If central banks proceed in a largely unilateral way instead, we not only risk inefficiencies, but also undesirable interferences. Consider a scenario in which a CBDC is made available for holders abroad in a unilateral way. In such a case, we could see currency substitution or appreciation pressure for the domestic currency. Also, the balance sheet of the CBDC emitting central bank could strongly expand. A knock-on effect may be that domestic monetary policy in countries that suffer from increased currency substitution becomes less effective. By contrast, a multilateral approach including reasonable holding limits could mitigate these risks.

    Meanwhile, the RBI has made valuable contributions to the topic of retail CBDC. The digital rupee based on blockchain technology was launched on 1 December 2022. It is issued by the central bank and distributed by commercial banks. As I understand it, the RBI intends to tap the potential for using CBDCs in cross-border payments as well.

    3 A digital euro: The cross-border dimension

    In the Eurosystem, we expect a digital euro to be launched in just a few years’ time. The primary goal of a digital euro is meet the domestic needs of the euro area. To some extent, however, this goal already includes a significant cross-border dimension. Let me explain what I mean by that. A quarter century on from the introduction of the euro, there is still no single pan-European solution for digital payments when people go shopping in stores or online. This means there is a risk that traditional cashless payment solutions offered by private European payment service providers will not match customer needs.

    To be fair, some euro area Member States have successfully implemented innovative digital solutions in the area of payments – I am thinking, for example, of the online payment system iDEAL in the Netherlands or Bizum Wallet in Spain. However, such payment solutions by themselves usually only function within national borders. Promising initiatives have been underway in recent years to widen the scope of these solutions. For example, iDEAL was successfully acquired by the European Payments Initiative, a company founded by several European banks and financial services companies. This initiative seeks to create a truly pan-European payment solution in the near to medium term. 

    This shows that the European payments sector has made meaningful progress; however, there are challenges further ahead. International payment providers, particularly those offering credit card schemes, still heavily dominate the European market for payment services – and even more when it comes to payments abroad.

    A digital euro would be a major step forward in this context. It would provide a standardised digital means of payment for day-to-day transactions throughout the euro area. Despite the need for a more integrated payment system, we are determined to prevent the Eurosystem’s footprint in the European financial system from becoming too large. We are therefore planning to issue a digital euro, but not to distribute it. This means that banks and other payment providers should assume the role of the CBDC interface between the Eurosystem and the customers.

    The euro area currently consists of 20 Member States, each of which has its own banking system with its own unique features. Against this background, I am sure you can imagine the overall complexity of our task. Therefore, our current focus is on making the digital euro accessible for all users within the euro area. We are investing great effort in our work on this, and we are constantly explaining what we do and why we do it, not least because a number of people are sceptical of CBDCs. 

    Once we have accomplished a digital euro for all users within the euro area, it will, in my view, be worth considering making it accessible to users outside the euro area as well. Rules for geographical access to a digital euro will be set down in legislation. If European legislation allows, access to a digital euro can also be granted to consumers and firms in the Member States of the European Economic Area outside the euro area. Selected non-EU countries can be included as well.[7]

    Ideally, the D€ would be interoperable with other CBDCs from the very start, for example, for person-to-person payments or commercial payments from or to firms outside the euro area. However, this is currently a vision for the future, since, as already mentioned, we first have to overcome numerous challenges to establish a retail digital euro that works within the euro area.

    4 Concluding remarks

    Let me conclude. So far, CBDCs are newcomers to the world of payment systems. We can only estimate how large a role they will end up playing in payment transactions. This is all the more true when it comes to cross-border payments.

    The scepticism about CBDCs in many quarters is not uncommon for many technological innovations. For example, in the early 1980s, “computerphobia” was a widespread phenomenon.[8] This took a wide range of forms, even fear of physically touching a computer or feeling threatened by those who worked with them. Today, this may seem very strange to us. Computers have since become an essential day-to-day tool for us.

    And so we will continue our efforts to implement CBDCs. I am confident that this will ultimately make our payment systems better, faster and more efficient.

     

    Footnotes:

    1. ACI Worldwide Inc., It’s prime time for real-time: Real-time payments adoption and growth around the globe, Payment report 2024. 
    2. Lothian, J. R. (2002), The internationalization of money and finance and the globalization of financial markets, Journal of International Money and Finance 21, Vol. 6, p. 699-724.
    3. Garratt, R., Wilkens, P. K. and H. S. Shin, Next generation correspondent banking, BIS Bulletin No. 78, 30 May 2024.
    4. Deutsche Bundesbank, Cross-border interoperability of central bank digital currency, Monthly Report, July 2022, p. 59-75.
    5.  ISO 20022 | ISO20022
    6.  Project Dunbar – International settlements using multi-CBDCs (mas.gov.sg)
    7.  International aspects of CBDCs: update on digital euro (europa.eu)
    8. LaFrance, A., When People Feared Computers, The Atlantic, 30 March 2015.

    MIL OSI Economics –

  • MIL-OSI Russia: Financial news: Innovations in the precious metals market from October 21

    MILES AXLE Translation. Region: Russian Federation –

    Source: Moscow Exchange – Moscow Exchange –

    Launch of PLT and PLD trading

    Trading in platinum (PLT/RUB) and palladium (PLD/RUB) will begin on the Foreign Exchange Market and the Precious Metals Market.

    Trading platinum and palladium provides a wide range of investors with the opportunity to diversify their portfolio and hedge risks.

    Trading parameters: Trading will be carried out with TOD and TOM settlements, and SWAP transactions will also be available.

    Trading time schedule in System mode: 10:00 – 19:00.

    To access trading, you must open Trading and Banking Accounts in platinum and palladium using the application form located on the website of NPO NCC (JSC) (Application for opening a trading bank account in precious metal): https://www.nationalslaringcenter.ru/catalog/02100101

    For all questions, you can contact your personal manager.

    Contact information for media 7 (495) 363-3232PR@moex.com

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    https://www.moex.com/n73942

    MIL OSI Russia News –

  • MIL-OSI Economics: RBI imposes monetary penalty on SG Finserve limited

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated October 1, 2024, imposed a monetary penalty of ₹28.30 lakh (Rupee Twenty Eight Lakh Thirty Thousand only) on SG Finserve limited (formerly known as M/s Moongipa Securities Limited) (the company) for non-compliance with specific conditions under which the company was issued the Certificate of Registration (CoR) by RBI under section 45IA(5) of Reserve Bank of India Act, 1934 (RBI Act). This penalty has been imposed in exercise of powers conferred on RBI under the provisions of clause (a) of sub-section (1) of Section 58G read with sub-section (6) of Section 58 B of the RBI Act.

    The financial statements of the company for FY 2022-23 revealed inter alia, non-compliance with the specific conditions of the CoR. Based on the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said conditions of the CoR.

    After considering the company’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the following charge against the company was sustained, warranting imposition of monetary penalty:

    The company had accepted public funds and extended loans in violation of the specific conditions of the CoR issued to it.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the company.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1284

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: Central Consumer Protection Authority directs Ola to develop mechanism providing choice to consumers regarding refund mode

    Source: Government of India (2)

    Central Consumer Protection Authority directs Ola to develop mechanism providing choice to consumers regarding refund mode

    Consumers may choose refund via Bank Account or Coupon in Grievance Redressal Process

    Central Consumer Protection Authority’s intervention leads to crucial consumer-centric changes in the Ola app

    Posted On: 13 OCT 2024 4:05PM by PIB Delhi

    In a landmark decision, the Central Consumer Protection Authority (CCPA) has directed Ola, a leading online ride-hailing platform, to implement a mechanism allowing consumers to choose their preferred method of refund—either directly to their bank account or via coupon—during the grievance redressal process. Additionally, Ola has been instructed to provide consumers with a bill or receipt or invoice for all Auto rides booked through its platform, ensuring greater transparency and accountability in its services. The Authority is headed by Chief Commissioner Smt. Nidhi Khare.

    CCPA observed that the whenever consumer raised any grievance on the Ola app, as part of its no-question-asked refund policy, Ola only provided a coupon code which could be used for the next ride without providing an clear choice to the consumer to opt between a bank account refund or a coupon. It was observed that this violates consumer rights and the no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride.

    Further, CCPA observed that if a consumer attempts to access invoice for Auto rides booked on Ola, the app shows the message ‘Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.’ It was observed that not issuing bill or invoice or receipt for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.  

    2. Definitions.

    (47) “unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:—

    (vii) not issuing bill or cash memo or receipt for the goods sold or services rendered in such manner as may be prescribed.

     

    In addition to the above, CCPA’s intervention has led to the following consumer-centric changes in the Ola app –

    1. Previously, no details of Grievance officer and nodal officer were prominently visible on the website. Now, Name, Phone number and e-mail of Grievance officer and nodal officer are mentioned, in Support section of website.
    2. Permitted time of cancellation as per cancellation policy, now prominently displayed at the time of booking ride.
    3. The amount of cancellation fee amount is now clearly mentioned on the ride booking page, so that the consumer is clearly aware of the amount which could be charged on cancelling the ride before she/he proceeds to cancel.
    4. New acceptance screen added for drivers where address of both pickup and drop location is shown to drivers.
    5. In order to avoid inconvenience and confusion, more reasons added against which consumer wishes to cancel ride.
    6. List of components that constitute the total fare added now publically available such as base fare, per km fare, pre-wait charges etc.
    7. Communications issued to drivers to encourage taking digital payments and switch on AC.
    8. Revised payment cycles for drivers so that they get payment swiftly.

    As per information on the National Consumer Helpline (NCH), a total of 2,061 complaints have been registered against Ola from 01.01.2024 to 09.10.2024. The top categories of complaints include –

    1. Higher fare charged from consumer than what was shown at the time of booking the ride
    2. Non-refund of amount to the consumer
    3. Driver asking for extra cash
    4. Driver did not reach the correct location or dropped at incorrect location

    Through its regulatory intervention, the CCPA has been steadfast in ensuring that Ola adheres to the legal framework established to secure the rights of consumers. These measures aim to empower consumers, enhance trust, and improve service provider accountability, reflecting the CCPA’s commitment to ensuring a fair and secure experience for all consumers on e-commerce platforms.

    ****

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    MIL OSI Asia Pacific News –

  • MIL-OSI Africa: Tito Mboweni: South African Minister and Reserve Bank governor who drove significant economic reforms

    Source: The Conversation – Africa – By Roy Havemann, Research Associate, Stellenbosch University

    Tito Mboweni, former South African Reserve Bank Governor, Minister of Finance, and Minister of Labour was arguably one of the country’s most consequential economic policymakers and drove several significant economic reforms.

    Mboweni passed away on 12 October 2024 after a short illness.

    Born on 16 March 1959, he received a Bachelor of Arts in Economic and Political Science from the National University of Lesotho in 1985. He had attended the University of the North between 1979 and 1980 but left South Africa to go into exile in his second year of studies. In 1987, he obtained a Master of Arts in Development Economics from the University of East Anglia in the UK.

    He began his career in government as Minister of Labour in President Nelson Mandela’s 1994 administration. As the first Minister of Labour in the new democratic South Africa, he took several steps to improve the relationship between business and labour.

    Among these were major legislative reforms, including the Basic Conditions of Employment Act, Labour Relations Act, Mines Health Safety Act and the NEDLAC Act, designed to improve cooperation between different “constituencies” – labour, business, and government.

    He was appointed as the Eighth Governor of the South African Reserve Bank in 1999. In this role he introduced inflation targeting and presided over the first monetary policy committee meetings. This substantially modernised the Bank’s approach. For instance, Mboweni introduced a monetary policy statement outlining the reasons for the Bank’s decisions. These were televised, bringing new transparency to the conduct of monetary policy. Before this, the bank’s targeted monetary policy aggregates, and its communications, were made through printed documents.

    Monetary Policy Forums took monetary policy to many parts of the country, bringing a new openness and engagement between the Bank and ordinary South Africans.

    He held the position of Governor until 2009. But his legacy endures. The South African Reserve Bank is highly regarded across the world, with an inflation rate that is firmly within the target range and well-anchored inflation expectations.

    As finance minister

    Shortly after Cyril Ramaphosa was inaugurated as President of the Republic of South Africa in 2018, the then Finance Minister Nhlanhla Nene resigned. The President appointed Mboweni as Minister of Finance in October 2018.

    Mboweni made three consequential decisions in South Africa’s economic policy trajectory.

    The first was the decision, in 2019, to freeze government wages from 2020. He was alarmed by the rapid and unsustainable increase in government wages. Together with slowing economic growth, this led to a fiscal position that was deteriorating at an alarming pace. The wage freeze ultimately started the slow return to the fiscal rectitude that had been the hallmark of the period of government before Jacob Zuma became president in 2009.

    The second, also in 2019, was the publication of a paper on economic growth. It was known officially as “Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa”.

    Unofficially it was known as the “Tito Paper”.

    This set out a programme of much-needed economic reforms – including steps to lift the restrictions on private power generation. In the six years since the publication of the policy paper (and the subsequent reforms), a total of 6 GW of non-Eskom electricity has been added to the grid, saving South Africa six stages of load-shedding.

    Other recommendations of the paper are being followed, including those for rail, telecommunications and ports.

    The third was the introduction of a comprehensive response to the COVID-19 pandemic. This included a significant expansion of the grants system, with a Social Relief of Distress grant pegged at R350 per person per month. Research by the NIDS-CRAM initiative, led by Dr Nic Spaull of Stellenbosch University, has highlighted how the grant positively affected millions of people’s lives.

    Enduring legacy

    It is difficult to think of any other economic policymaker who has left such an enduring legacy.

    Stellenbosch University awarded him an honorary doctorate in 2010 and appointed him Professor Extraordinary of Economics from 2002 to 2005 . He was a frequent participant at Bureau for Economic Research conferences. There, his engaging speaking style made him a popular drawcard.

    His love of red wine and engaging conversation made him a popular visitor at the university. In 2010, he spent time at the Stellenbosch Institute for Advanced Studies as part of a research group working on the global financial crisis and its consequences for democracy.

    This is an edited version of a tribute published by the Bureau for Economic Research, Stellenbosch University.

    – Tito Mboweni: South African Minister and Reserve Bank governor who drove significant economic
    reforms
    – https://theconversation.com/tito-mboweni-south-african-minister-and-reserve-bank-governor-who-drove-significant-economic-reforms-241236

    MIL OSI Africa –

  • MIL-OSI Africa: The remarkable career of Tito Mboweni: from South African freedom fighter to central bank governor and trusted politician

    Source: The Conversation – Africa – By Jannie Rossouw, Visiting Professor at the Business School, University of the Witwatersrand

    It is sad to write about Tito Mboweni in the past tense.

    Tito Titus Mboweni, who was born on 16 March 1959 in Tzaneen, a town in South Africa in what was then the Transvaal, passed away after a short illness in Johannesburg on 12 October 2024.

    After the announcement of his death, tributes poured in for this South African leader. Many have been touched by his legacy in politics, business, governance and the economy of South Africa.

    While not without some shortcomings, his career from being a freedom fighter to becoming a trusted and popular public figure serves as an enduring example to others in leadership.

    A career in service of society

    During his lifetime, Mboweni managed to achieve multiple accomplishments. The first period of his career was as member of the African National Congress (ANC) liberation movement in exile, where he served as deputy head of the Department of Economic Policy in the ANC.

    Political and public service was a second part of his career.

    After the democratic elections of 1994, Mboweni served as minister of labour in the first cabinet of Nelson Mandela. In a surprise announcement in 1998, Mboweni was appointed as an advisor to the then governor of the South African Reserve Bank, Chris Stals. This was to prepare Mboweni for appointment as governor after the retirement of Stals.

    Mboweni could not move directly into the position as governor, as section 4(2)(a) of the South African Reserve Bank Act states that the “governor shall be a person of tested banking experience”.

    By serving as an advisor to Stals for a little over a year, Mboweni met this legal requirement. He was appointed as the eighth governor of the central bank on 8 August 1999.

    At the time there were concerns about his commitment to the continuation of a policy of controlling inflation, ushered in successfully by Stals in the preceding decade. But Mboweni soon showed his commitment to the continued control of inflation.

    He replaced the previous structure used for monetary policy decisions by Stals by establishing the Monetary Policy Committee in October 1999. This was in preparation for the adoption of inflation targeting as a policy objective for the bank.

    After his retirement from the Reserve Bank, Mboweni commenced with the next stages of his career: a successful stint in business, which was interrupted by his return to politics. He served as minister of finance from 9 October 2018 to 5 August 2021. In this role he made it very clear that South Africa had to adopt a more prudent fiscal policy to avoid a too rapid growth in government debt. But this viewpoint made him unpopular with many cabinet and ANC colleagues, trade unions and others.

    Once he left politics, Mboweni resumed his career in business. He also served the South African community in different ways. He held a number of appointments as honorary professor and was also a patron of the arts. He was also well-known for his enthusiasm for cooking, which he often posted about on social media.

    Challenges

    Mboweni had to withstand political pressure on the issue of the role of the Reserve Bank. He was exemplary in his protection of the autonomy and independence of bank, which is set out in sections 223 to 225 of the South African Constitution.

    In this respect, he followed in the footsteps of Stals.

    Politicians favour lower interest rates, particularly during election periods. But Mboweni was not afraid of being unpopular. He was steadfast in protecting the autonomy and independence of the South African Reserve Bank. Mboweni also led the central bank during the global financial crisis of 2008 . South Africa was one of the countries that did not suffer a banking crisis or collapse during that period.

    Achievements

    Mboweni’s single biggest achievement was his successful transition from an ANC freedom fighter in exile to his roles as senior politician, central bank governor and businessman.

    His successful adoption of a policy of inflation targeting despite opposition was also a major achievement. Under Mboweni’s leadership the South African Reserve Bank showed critics that South Africa can make a continuous commitment to a low rate of inflation.

    Other than establishing the Monetary Policy Committee, Mboweni also played a major role in bringing monetary policy closer to the people. Under his leadership, the bank was one of the first central banks in the world to announce monetary policy decisions about interest rates at a media conference. He also introduced the central bank’s Monetary Policy Forums, where the public can engage the senior leadership of the central bank on monetary policy.

    Shortcomings

    Mboweni had many successes in business, central banking and politics. He also a few shortcomings. One was that he did not insist on the readoption of the lower inflation target (3%-5%) announced in 2001, that was later abandoned. A lower inflation target some 20 years ago would have anchored South Africa’s inflation rate and inflation expectations on a lower trajectory.

    It is difficult to judge whether Mboweni’s somewhat untimely (though not necessarily unexpected) resignation as finance minister can also be regarded as a failure. However, a finance minister can only function optimally with the support of the head of state. Such support was clearly lacking.

    Legacy

    Mboweni leaves a legacy of a successful transformation from a freedom fighter to a businessman, central banker and politician. If more former freedom fighters made this successful transition, South Africa’s prospects would look considerably better.

    Another legacy is honesty and integrity. Mboweni was never embroiled in scandals or questionable business dealings. If other ANC cadres could follow this example, South Africa would also offer a better future for all its citizens.

    – The remarkable career of Tito Mboweni: from South African freedom fighter to central bank governor and trusted politician
    – https://theconversation.com/the-remarkable-career-of-tito-mboweni-from-south-african-freedom-fighter-to-central-bank-governor-and-trusted-politician-241234

    MIL OSI Africa –

  • MIL-OSI Russia: Alexander Novak held a meeting on the current economic situation

    MILES AXLE Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Alexander Novak held a meeting on the current economic situation

    October 14, 2024

    Alexander Novak held a meeting on the current economic situation

    October 14, 2024

    Previous news Next news

    Alexander Novak held a meeting on the current economic situation

    Deputy Prime Minister Alexander Novak held a meeting within the framework of the incident on the current situation in the economy. The event was attended by representatives of the Ministry of Economic Development, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Energy, the Ministry of Construction, the Ministry of Agriculture, the Ministry of Transport, the Ministry of Labor, the Bank of Russia, as well as the scientific and expert community.

    “Overall, our economy is developing better than expected: GDP growth for the first eight months of this year was 4.2%, industrial production – 4.5%, including manufacturing – 8.1%. The unemployment rate remains at historical lows and was 2.4% in January – August,” noted Alexander Novak.

    The meeting examined the main development trends and possible risks for the Russian economy, taking into account the task of forming a supply-side economy and the need to achieve national goals.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://government.ru/nevs/52989/

    MIL OSI Russia News –

  • MIL-OSI China: Announcement on Open Market Operations No.201 [2024]

    Source: Peoples Bank of China

    Announcement on Open Market Operations No.201 [2024]

    (Open Market Operations Office, October 12, 2024)

    In order to keep liquidity adequate at a reasonable level in the banking system, the People’s Bank of China conducted reverse repo operations in the amount of RMB23.2 billion through quantity bidding at a fixed interest rate on October 12, 2024.

    Details of the Reverse Repo Operations

    Maturity

    Volume

    Rate

    7 days

    RMB23.2 billion

    1.50%

    Date of last update Nov. 29 2018

    2024年10月12日

    MIL OSI China News –

  • MIL-OSI China: PBOC Officials Answer Press Questions on Improving the Pricing Mechanism for Interest Rates on Commercial Personal Mortgage Loans

    Source: Peoples Bank of China

    Q1: What is the background for the launch of the Announcement?

    A1: To smooth the channels of monetary policy transmission and facilitate lower financing costs for the real economy, the People’s Bank of China (PBOC) reformed and improved the loan prime rate (LPR) formation mechanism in August 2019 to ensure that loan interest rates could promptly reflect changes in market interest rates. When issuing the Announcement No.16 [2019], we improved the LPR formation mechanism, and took into account the wide range, long maturity, and high public attention regarding commercial personal mortgage loans (hereinafter referred to as “mortgages”). The Announcement specified that mortgage rates should be priced as LPR plus basis points (LPR+bps) to make long-tenor mortgage rates in sync with market rates. In short, the Announcement played a significant role in promoting the market-oriented pricing of mortgage rates and supporting the stable and healthy development of the real estate market. However, deepened market-oriented interest rate reform and significant changes in the supply-demand relationship in the real estate market have exposed some shortcomings in the current pricing mechanism, which aroused public concerns and sorely needed adjustments.

    To implement the guidelines of the meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee and to address public concerns, the PBOC issued the Announcement No.11 [2024], which refined the pricing mechanism for mortgage rates and fostered lower interest rates on existing home loans.

    Q2: What are the problems with the current mortgage rate pricing mechanism, and how will they be addressed?

    A2: As agreed in contracts, the bps added to the LPR are fixed during the contract periods. As home mortgage contracts are long tenors in general, the fixed margin between mortgage rates and LPR cannot reflect changes in the borrower’s credit worthiness or shifts in market supply and demand, which may lead to widening spread between old and new mortgage rates as market conditions change. With the deepening of market-oriented interest rate reform, it has become necessary to optimize the system so that commercial banks and borrowers could adjust contracts in an appropriate manner.

    In August 2023, in response to public concerns and following a quick-response mechanism, the PBOC, together with the National Financial Regulatory Administration guided commercial banks to adjust interest rates on existing home loans in bulk by negotiating rate changes in mortgage contracts. This move has delivered effective results. However, the spread between new and old mortgage rates has recently widened again due to the fixed additional bps under the current pricing mechanism. Commercial banks will take coordinated steps to lower in bulk the interest rates on qualified existing mortgages to levels close to the newly-issued  nationwide, but this provides a temporary fix only. The fundamental solution to the spread is to further deepen the market-oriented interest rate reform, which will, while maintaining the integrity of contracts, remove institutional barriers that hinder commercial banks and borrowers from negotiating and adjusting terms of existing mortgages based on market-oriented principles.

    Q3: What are the main changes in this Announcement?

    A3: The Announcement No.11 [2024] of the PBOC includes the following major improvements. First, the bps added to LPR is adjustable. Both borrowers and lenders may adjust the LPR+bps by negotiating about contract changes to better reflect developments in market supply and demand as well as the borrower’s risk premium. In the future, market competition may drive commercial banks to negotiate with borrowers over LPR+bps adjustments in a timely manner before the spread between old and new mortgage rates becomes too wide. This will gradually ease tensions and maintain the integrity of contracts.

    Second, the one-year restriction, the shortest re-pricing cycle for mortgage rates has been lifted. From November 1, 2024 onwards, for new adjustable-rate mortgage contracts, the re-pricing cycle can be negotiated by both parties, in sync with the re-pricing cycle for other adjustable-rate loans. Borrowers with qualified existing mortgages can also adjust their re-pricing cycle when negotiating changes to the LPR+bps, so as to ensure that the interest rates on existing home loans promptly reflect LPR changes, thus smoothing the channels of monetary policy transmission.

    Q4: How will the interest rates on existing home loans be adjusted after the launch of the Announcement?

    A4: The self-regulatory pricing mechanism for market interest rates will propose an initiative to guide commercial banks to adjust the interest rates on existing home loans in bulk by October 31, 2024. Commercial banks will release relevant announcements and detailed adjustment plans to uniformly lower the LPR+bps for mortgage rates in the most convenient manner for borrowers. Most borrowers will be able to complete the adjustment through online banking or mobile banking channels with just one click and won’t need to visit bank outlets. Please stay updated by following the relevant information published by your lender. After the adjustments in bulk, both borrowers and lenders can, based on market-oriented principles, further negotiate and dynamically adjust the interest rates on existing mortgages according to the Announcement No.11 [2024] of the PBOC.

    Date of last update Nov. 29 2018

    MIL OSI China News –

  • MIL-OSI China: Announcement on Open Market Operations No.202 [2024]

    Source: Peoples Bank of China

    Announcement on Open Market Operations No.202 [2024]

    (Open Market Operations Office, October 14, 2024)

    In order to keep liquidity adequate at a reasonable level in the banking system, the People’s Bank of China conducted reverse repo operations in the amount of RMB19.5 billion through quantity bidding at a fixed interest rate on October 14, 2024.

    Details of the Reverse Repo Operations

    Maturity

    Volume

    Rate

    7 days

    RMB19.5 billion

    1.50%

    Date of last update Nov. 29 2018

    2024年10月14日

    MIL OSI China News –

  • MIL-OSI Africa: African Development Bank, Agence Française de Développement cement partnership to support youth entrepreneurship in Africa

    Source: Africa Press Organisation – English (2) – Report:

    ABIDJAN, Ivory Coast, October 14, 2024/APO Group/ —

    The African Development Bank Group (www.AfDB.org) and Agence Française de Développement (AFD) on Friday announced they would renew their joint efforts to catalyse resources to boost entrepreneurship in Africa as a crucial driver of economic development, tackling unemployment and reducing inequality.

    African Development Bank President Dr Akinwumi A. Adesina and Agence Française de Développement Chief Executive Officer Rémy Rioux signed a letter of intent on behalf of their institutions following a meeting in Abidjan, home to the Bank’s headquarters.

    Through its Youth Entrepreneurship Investment Bank (YEB) initiative, the African Development Bank is providing an ecosystem and entrepreneurial services, promoting inclusive, private sector-led economic growth, and creating opportunities for young entrepreneurs. The Agence Française de Développement’s Choose Africa 2 program (http://apo-opa.co/3NqMq7a), seeks to deepen its impact by fostering public policy dialogue, supporting governments in creating a conducive ecosystem for entrepreneurship development, and addressing the technical and financial support needs of entrepreneurs.

    Together, the organisations through these initiatives and others, will collaborate closely to support and advocate for entrepreneurship in Africa and strengthen entrepreneurial ecosystems.

    Noting the challenge of transforming the demographic dividend of Africa’s over 400 million youth into economic dividends, Adesina said he was fully satisfied with the cooperation with AFD “which testifies to our commitment to job creation for the continent of Africa.”

    “We will be putting our risk capital to the benefit of youth. The greatest risk is not investing in youth. The future of Africa is in on the continent,” Adesina said.

    Remy Rioux said it was imperative to emphasise the economic welfare of African youth to avoid the pitfalls of economic migration. “Every year 20 million youth – the population of Senegal – join the workforce in Africa,” he noted. He commended the work of the African Development Bank, especially the Affirmative Finance Action for Women in Africa (AFAWA) initiative which has made “spectacular achievements by financing women,” he said. Under partnership between Choose Africa 2 and the African Development Bank’s youth investment banks AFD is developing instruments that will benefit and create opportunities for youth in Cote d’Ivoire, Benin and Togo, Rioux said.

    Rioux was accompanied by AFD’s Director of Cabinet Tristan Mouline, Lionel Yondo, Regional Director for the Gulf of Guinea, Adrien Haye, director of the Cote d’Ivoire office and Noor Mountassir, Côte d’Ivoire country office head. From the African Development Bank, Dr Adesina was accompanied by members of the senior management team. Jerome Bertrand-Hardy, who has been seconded to the Bank from AFD, also attended.                                                                             

    Africa is home to the youngest population in the world with over 60% of people on the continent below 25 years. The youth population dynamic is fueling the rise of youth-led businesses but, significant hurdles remain. Africa’s finance gap for Small and Medium Enterprises stands at $ 331billion, with over half of the MSMEs unable to access the credit they need for growth and sustainability.

    MIL OSI Africa –

  • MIL-OSI Europe: Publication of 2020 official development assistance figures by the OECD Development Assistance Committee (13 Apr. 2021)e publique au développement 2020 par le Comité d’aide au développement de l’OCDE (13.04.21)

    Source: Republic of France in English
    The Republic of France has issued the following statement:

    The Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD) today published preliminary data on global official development assistance (ODA) for 2020. With ODA at €12.4 billion, i.e. 0.53% of gross national income (GNI) – up by 10.9% in real terms compared to the previous year –, France remains in fifth place among international aid donors.

    In line with the French President’s commitment to increase France’s resources for protecting global public goods, French ODA rose for the sixth consecutive year (up €2.3 billion since the beginning of the five-year term).

    The increase in French ODA is mainly driven by bilateral assistance (up 20.8% in current euros compared to 2019). Bilateral funding in donations increased by 2%, in accordance with the targets set by the Interministerial Committee for International Cooperation and Development (CICID) in February 2018. Assistance for projects, enabling practical projects to be funded on the ground, tripled by comparison with 2019, particularly thanks to increased activity in non-C2D donations directly implemented by the Ministry for Europe and Foreign Affairs and activity entrusted to the French Development Agency (AFD). Sub-Saharan Africa, which is central to France’s development policy, received a third of our bilateral ODA (€2.9 billion), up 40% compared to 2019. The bilateral ODA allocated by France to Least Developed Countries (LDCs) stands at €1.7 billion.

    France allocated €1.9 billion to the fight against the COVID-19 pandemic in developing countries in 2020 – more than the other European donors. In particular, through the AFD, it established a Health in Common Initiative worth €1.2 billion – €150 million of it in donations – which, among other things, improved care for patients and strengthened the capabilities of the Pasteur Institute’s reference laboratories in several sub-Saharan African countries.

    French ODA to international organizations and multilateral funds amounted to €4.4 billion (up 2.8%). Over half corresponded to France’s contribution to the ODA implemented by the European Union. This money also financed the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM), Unitaid, Gavi The Vaccine Alliance’s Finance Facility and the Green Climate Fund. France stepped up its support to the least developed countries through its contribution to the Poverty Reduction and Growth Facility of the International Monetary Fund (IMF), the World Bank’s International Development Association (IDA) and the African Development Fund (ADF).

    The programming bill on inclusive development and combating global inequalities, presented by the Minister for Europe and Foreign Affairs and adopted by the National Assembly on 2 March 2021, realizes France’s new ambition for development policy. Through increased resources and overhauled methods, it reflects the desire to ensure our action is effective on the ground, helping the most vulnerable people, and to mobilize our partners to take more robust action to protect global public goods (climate, health, education). The Senate is currently discussing the bill.

    MIL OSI Europe News –

  • MIL-OSI Economics: Appointment of Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya Dr…

    Source: African Development Bank Group

    The African Development Bank Group is pleased to announce the appointment of Dr. Kennedy K. Mbekeani as Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya, effective from 16th October 2024.

    Dr. Kennedy K. Mbekeani, a citizen of Malawi brings over 25 years of senior level experience in development finance, project management, policy advisory services, and knowledge generation across country and regional levels. Prior to this appointment, he served as Deputy Director General for the Bank’s Southern Africa Regional Development, Integration and Business Delivery Office.

    He holds a Bachelor of Social Science (Economics and Statistics) degree from the University of Malawi, an MPhil in Monetary Economics from the University of Glasgow, and both an MA and PhD in International Economics from the University of California. He has authored numerous publications focusing on trade, regional integration, and infrastructure development in Africa.

    In his previous role as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, Dr. Mbekeani led the Bank’s business development and delivery for sovereign, non-sovereign investments and provided advisory services to South Africa, Lesotho, Botswana, Eswatini, Namibia and Mauritius. His efforts contributed to the Bank’s reputation as a trusted partner for high impact development projects in the region. He also managed relationships with key government and private sector, positioning the Bank for success.

    Dr. Mbekeani joined the Bank in 2009 as Chief Trade and Regional Integration Officer. He has held various senior roles including Lead Regional Economist at the South African Resource Centre, Officer in Charge and Acting Regional Director of the Bank’s South African Resource Centre in South Africa, and Officer in Charge of the Bank’s Ghana Country Office. When he served Country Manager for Uganda, he successfully expanded the Bank’s portfolio to over $2 billion.

    Before joining the Bank, Dr. Mbekeani worked for the United Nations Development Programme as a Trade, Debt and Globalisation Advisor for East and Southern Africa. He also served as Senior Research Fellow at the Botswana Institute for Development Policy Analysis, and Senior Economist at the National Institute for Economic Policy in South Africa.

    Commenting his appointment, Dr. Mbekeani said: “I am grateful and feel honoured by the confidence President Adesina placed in me through this appointment, as Director General for the East Africa Regional Development, Integration and Business Delivery Office and Country Manager for Kenya. I look forward to working with the President, the Board of Directors, Senior Management, our teams and stakeholders to enhance the Bank’s operational efficiency, effectiveness and drive impactful developmental outcomes across the region”.

    Commenting the appointment, the President of the African Development Bank Group, Dr. Akinwumi Adesina said: “I am delighted to appoint Dr. Kennedy Mbekeani as Director General for the East Africa Regional Development, Integration and Business Delivery Office, and Country Manager for Kenya. Kennedy brings extensive experience in managing operations, policy dialogue, coupled with astute diplomacy and well-tested ability to work effectively with countries and development partners. He had previously worked in East Africa as the Country Manager for Uganda, before being promoted to the position of Deputy Director General of the Southern Africa Regional Development, Integration and Business Delivery Office. His knowledge of the Eastern Africa region and well-proven experience in delivering robust operations for the public and private sectors will strongly benefit the work and operations of the African Development Bank Group in East Africa and all countries in the region”.

    MIL OSI Economics –

  • MIL-OSI Economics: Appointment of Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office Mrs. Moono Mupotola

    Source: African Development Bank Group

    The African Development Bank Group is pleased to announce the appointment of Mrs. Moono Mupotola as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, effective from 16th October 2024.

    Mrs. Moono Mupotola, a Zambian national, brings over 25 years of development experience across Africa to her new role, with a proven track record in infrastructure development, trade and regional integration.

    Prior to this appointment, Mrs. Mupotola served as the Bank’s Country Manager for Zimbabwe since December 2020. During her tenure, she played an instrumental role in the Bank’s support to Zimbabwe in its re-engagement agenda with the international community and in its efforts to address outstanding debt and arrears obligations.

    Mrs. Mupotola’s experience with the Bank began in 2009, when she was appointed Division Manager, Regional Integration and Trade. She was appointed as Director of NEPAD, Regional Integration & Trade in 2015, and Director of Regional Integration Coordination Office in 2018.

    Her oversight of the Lusophone Compact, a program that supports private sector in six Portugues-speaking Africa countries, demonstrated Mrs. Mupotola’s commitment to advancing regional integration. She also initiated the Bank’s Africa Trade Fund, the Visa Openness Index, and the Regional Integration Index with the United Nations Economic Commission for Africa and the African Union Commission. She managed the African Development Fund’s Regional Operations Envelope and oversaw the Bank’s regional project preparation facility.

    Mrs. Mupotola led the Bank’s trade and regional integration agenda by supporting research, infrastructure projects, capacity-building programmes and the reform of regulations and policies in regional member countries.

    Before joining the African Development Bank Group, Mrs. Mupotola held several senior positions, including Regional Policy Specialist for the Food and Agriculture Organization in Zimbabwe, Trade Specialist at the Southern African Development Community Trade Hub in Botswana and Zimbabwe. She served as the Division Head of Trade and Marketing at the Ministry of Agriculture in Namibia. She also served as a Researcher at the Namibian Economic Policy Research Unit and a Banker at Zambia National Commercial Bank.

    She holds a Bachelor of Arts degree in Economics from Bennington College, Vermont, United States of America and a MPhil of Philosophy from Cambridge University, United Kingdom and post-graduate qualifications in leadership and strategic management from the Wharton Business School, USA, and the Cranfield Business School, United Kingdom.

    Commenting on her appointment, Mrs. Mupotola said: “I am deeply honoured by this opportunity and grateful to President Adesina for his trust and confidence in me. The role of Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office, is challenging and exciting. I look forward to working efficiently with our teams and stakeholders to deliver on the African Development Bank’s vision and High 5 priorities for sustainable development”.

    Commenting on the appointment, the President of the African Development Bank Group, Dr. Akinwumi A. Adesina said: “I am delighted to appoint Mrs. Moono Mupotola as Deputy Director General for the Southern Africa Regional Development, Integration and Business Delivery Office. Moono has extensive experience in regional operations, having served previously as Director of Regional Operations. She was subsequently assigned to Zimbabwe as Country Manager. Moono has demonstrated exceptional leadership, diplomatic acumen and strong execution capacity in working with the Government of Zimbabwe and all the development partners in advancing the structured dialogues for the arrears clearance for Zimbabwe, as well as major reforms. Her astute leadership and experience and in-depth knowledge of the countries in the Southern Africa region will significantly advance the work and partnerships of the African Development Bank Group in the region”.

    MIL OSI Economics –

  • MIL-OSI Australia: Review of Merchant Card Payment Costs and Surcharging

    Source: Reserve Bank of Australia

    The Reserve Bank of Australia (RBA) is commencing its Review into Retail Payments Regulation. This review will examine the costs merchants face when accepting card payments and the framework for surcharging. The RBA has today released an Issues Paper, inviting stakeholders to provide detailed feedback on the current regulatory framework and to suggest potential regulatory responses. This feedback will be crucial in shaping future reforms to ensure a safe and efficient payments system.

    Australians extensively use cards to pay for goods and services. They benefit from the convenience and security provided by card payments. However, in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers. These issues are linked, since merchants would be less likely to surcharge consumers if card payment costs were lower. It is timely, therefore, to review whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose. This recognises that many years have passed since these rules first came into effect.

    Stakeholders can provide written submissions by 3 December 2024.

    Detailed assessments of reform proposals would form the next stage of this review. If the Payments System Board forms a view that consultation on regulatory action is in the public interest, the RBA will further consult on any reform proposals prior to any decisions being made.

    MIL OSI News –

  • MIL-OSI Economics: Review of Merchant Card Payment Costs and Surcharging

    Source: Reserve Bank of Australia

    The Reserve Bank of Australia (RBA) is commencing its Review into Retail Payments Regulation. This review will examine the costs merchants face when accepting card payments and the framework for surcharging. The RBA has today released an Issues Paper, inviting stakeholders to provide detailed feedback on the current regulatory framework and to suggest potential regulatory responses. This feedback will be crucial in shaping future reforms to ensure a safe and efficient payments system.

    Australians extensively use cards to pay for goods and services. They benefit from the convenience and security provided by card payments. However, in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers. These issues are linked, since merchants would be less likely to surcharge consumers if card payment costs were lower. It is timely, therefore, to review whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose. This recognises that many years have passed since these rules first came into effect.

    Stakeholders can provide written submissions by 3 December 2024.

    Detailed assessments of reform proposals would form the next stage of this review. If the Payments System Board forms a view that consultation on regulatory action is in the public interest, the RBA will further consult on any reform proposals prior to any decisions being made.

    MIL OSI Economics –

  • MIL-OSI Economics: Well-Being of Older People in East Asia: The People’s Republic of China, Japan, and the Republic of Korea

    Source: Asia Development Bank

    It focuses on depressive symptom scales and the impact of demographic, economic, social, and health factors. Although much of the differences of the results across the three countries is due to the differences in the characteristics of older people, significant unexplained differences remain. In particular, even after accounting for several factors, older people in the ROK are more likely to be depressed than in the PRC or Japan.

    MIL OSI Economics –

  • MIL-OSI Banking: Samsung and KT Selected To Build Private 5G Network for the Republic of Korea Navy

    Source: Samsung

     
    Samsung Electronics and KT Corporation (KT) today announced that the companies have been selected to deploy a Private 5G network for the ‘Smart Naval Port’ project by the Republic of Korea (ROK) Navy. This marks the first deployment of its kind at a Korean Naval base. The Navy is carrying forward with this project to improve the battleship and base operation support capabilities and achieve comprehensive base defense.
     
    Samsung and KT have been collaborating on this project since the summer of 2024, with a goal to complete the deployment by December 2025. The companies will build a more intelligent and fully independent network infrastructure to provide seamless coverage and enhanced connectivity for the Republic of Korea Navy 2nd Fleet.
     
    Private 5G solutions are essential to support national defense sectors, which require ultra-fast speeds and hyper-connected communications for the foolproof and effective operation management. These solutions will build a highly reliable network dedicated to the Navy, increasing security and reducing vulnerabilities.
     
    To ensure military workplace safety and efficiency, Samsung and KT will support the Navy’s Private 5G buildout by applying smart, AI-enabled connectivity solutions and powering a variety of next-generation applications. The project will establish a comprehensive Information and Communications Technology (ICT) infrastructure that encompasses 13 different systems, ranging from uncrewed vehicle operation to armory management and ammunition depot management. Specific use cases include:
     
    A digital twin of the smart Naval base will provide a three dimensional and high-definition digital replica of the base. This will enable an integrated management system that can also be used as a foundation for establishing strategy development. Insights gathered from the digital twin can inform decisions that will increase the resilience, efficiency, adaptability and autonomy of the Naval base.
    Intelligent security monitoring will enhance the Naval base defense by introducing real-time video control of operational forces and vehicles, surveillance cameras for ammunition depots and armories, and surveillance drones, incorporated with the existing Video Management System (VMS). This monitoring will deliver a holistic view of the base and all for optimal operational response in case of an emergency event through a real-time auto screen switch.
    A one-stop battleship operation management system will enable intelligent battleship operation support through all-in-one system by integrating multiple critical systems — such as navigation support, logistics management, safety management and monitoring. This comprehensive system will streamline and operationalize administrative work for the Navy personnel.
     
    “KT will contribute to establishing a standardized system for the Republic of Korea Navy through the Smart Naval Port project,” said Jun-Ho Kim, Senior Vice President and Head of Public Customer Business Unit at KT Enterprise. “We look forward to laying the foundation for the ‘Smart Naval Port’ which will improve its capability to support battleship and naval base operations.”
     
    Samsung will provide its proven end-to-end private 5G network solution for defense, including its private network 5G SA Compact Core, indoor and outdoor radio solutions and network management software. These solutions support the mid-band (n79, 4.7GHz) spectrum, which is widely adopted for military usage.
     
    With Samsung’s compact solution for the full stack of Private 5G that can run on a single server hardware, the Navy will benefit from quick deployments and less complex operations. Its private 5G radios will deliver improved uplink performance with optimized uplink features, designed to help government agencies upload vast amounts of data across numerous devices simultaneously.
     
    “Samsung’s Private 5G solutions are trusted due to their dependable security, reliability and proven commercial expertise, already serving diverse private and public sectors in countries like South Korea, the U.S. and Japan,” said Simon Lee, Vice President and Head of B2B·B2G Business Development Group, Networks Business at Samsung Electronics. “In collaboration with KT, we are excited to deploy Korea’s first Private 5G at a Naval base. This project exemplifies our ongoing commitment to enhance and unlock the potential of 5G to meet every customer’s needs.”
     
    Samsung has been actively delivering private 5G networks in collaboration with a range of sectors from hospitals, universities, construction sites to military and local government agencies.
     
     
    About KT CORPORATION (KRX: 030200; NYSE: KT)
    KT Corporation, Korea’s largest telecommunications service provider, reestablished in 1981 under the Telecommunications Business Act, is leading the era of innovations in the world’s most connected country. The company is leading the 4th industrial revolution with high speed wire/wireless network and new ICT technology. KT launched the world’s first nationwide commercial 5G network on April 3, 2019, after successfully showcasing the world’s first trial 5G services at the PyeongChang Winter Olympic Games in February 2018. This is another milestone in KT’s continuous efforts to deliver essential products and services as it aspires to be the number one ICT Company and People’s Company.

    MIL OSI Global Banks –

  • MIL-OSI New Zealand: Speech to the Institute of Finance Professionals NZ, 2024 Conference

    Source: New Zealand Government

    Kia ora koutou

    Greetings from Wellington. I am sorry I can’t be with you in person today, but I’m delighted that I can talk to you virtually. 

    I’d like to begin by acknowledging your chair Bill Goodwin and members of your board.

    I’d also like to acknowledge the fitness of your conference theme: “Adaptability – highlighting the imperative for both corporate and government investment to be more considered and impactful in light of the financial constraints on governments and the increased costs of capital.”

    That’s quite a mouthful. But, as a finance minister who inherited a structural deficit and a challenging set of circumstances, both domestically and internationally, those are themes dear to my heart. 

    New Zealand, like other countries, has faced significant economic challenges in recent years.  Many businesses and households are doing it tough. High inflation has increased household costs and squeezed business margins.

    However, the two most recent ANZ Business Outlook surveys and the New Zealand Herald’s Mood of the Board room survey suggest you and your colleagues in the business world are increasingly positive about the outlook for the future. 

    The green shoots of business confidence are re-emerging.

    I share your optimism. 

    We’ll get the latest update on inflation tomorrow when Stats NZ releases the September quarter inflation data, but all the indications are that inflation is tracking back down to the Reserve Bank’s target range of 1 to 3 per cent. 

    Certainly, that’s the Reserve Bank’s view. It’s decision last week to drop the Official Cash rate by 50 basis points was a welcome fillip for businesses and households. 

    It followed the 25-basis point drop in August.

    Lower interest rates mean families get to keep more of their money and they increase the opportunities for businesses to invest, innovate and expand.

    How people are impacted by interest rate reductions will depend on the terms of their mortgages – whether they are floating or fixed and, if fixed, for what length of time and at what rates.  

    The good news is that right now roughly half of New Zealand’s mortgage lending is either fixed or floating for a period of six months or fewer. 

    That means the impact of a lower official cash rate will flow through to households much faster than might typically be the case. And the impact will be significant.

    To give one example, a family with a 25-year, $500,000 mortgage could expect to be just over $100 a fortnight better off if its rate dropped from 7 to 6.25 per cent.

    Add that to the tax relief that took effect on 31 July and the FamilyBoost childcare payments that many households are now receiving, and we can confidently say that large numbers of families are now significantly better off than they were a year ago.

    Budget 2024 was another important step in the right direction. It put the Government’s books on a credible path back to fiscal sustainability. 

    The Crown accounts are forecast to return to surplus in 2028 and net core Crown debt is forecast to start trending down as a percentage of gross domestic product the same year. 

    This does not mean that our financial and economic challenges have magically evaporated. It also does not mean that we can pat ourselves on the back and relax the focus that we have re-introduced on fiscal discipline.  

    Fiscal discipline is not a one-off, one-Budget affair. It is an ongoing state of mind. 

    It’s not easily achieved, but it is fundamental to our prospects.

    There is no time in recorded history in which a country has enjoyed a continuous period of economic prosperity without a stable macroeconomic environment. 

    What does that mean in practice? It means low inflation, a balance between government expenditure and revenue and a balance between domestic demand and exports. 

    In other words, governments cannot live beyond their means for sustained periods of time without damaging the future prospects of their citizens.

    Our Government doesn’t just think about constraining future government expenditure. We are equally intent on driving more value from the significant investment the Government already makes across the economy. 

    That means delivering more effective management of the considerable assets we own and making better choices about where and how we use taxpayers’ money.

    For me, the ultimate purpose of strengthening the economy and improving the state of the books is not to change the colour of the ink in those books. It is to improve outcomes for people. 

    As we look ahead, the Government is squarely focused on improving the growth prospects of the New Zealand economy.  

    Growing our economy faster requires us to improve the attractiveness of New Zealand as a launch place for business and exporting, it means attracting and retaining people who choose this as the country where they want to develop and deploy their talents, to start new businesses, to expand existing ones, to invest and drive innovation.   

    It’s a competitive world, and so New Zealand needs to constantly improve our proposition to the world. 

    As we look to the future and consider a globe grappling with challenges to climate, peace and stability, our country’s fundamentals are excellent.  

    In an unstable, hungry world, we are a peaceful, food-producing country blessed with secure borders, strong institutions, a strong sense of community, well-established trade relationships, a reputation for producing innovative and enterprising people, and abundant natural resources.

    Even so, our country has not been making the most of these advantages. 

    We still have much to do to develop our human capital, to make this a more attractive place to invest, to boost our trade with the world, to encourage innovation and harness new technologies, to ensure we have a foundation of world-class infrastructure, and to reduce the regulatory and bureaucratic static that can hamper the deployment of good ideas.

    The Government’s reform agenda is about realising the untapped potential we see in so many dimensions of New Zealand life.    

    We know that to be successful in driving growth we need you and your colleagues in the business community on board.  

    The previous government distrusted private capital and discounted the value of private sector innovation. 

    This Government’s attitude is different. 

    We recognise that you have a critical role to play in innovating, investing and developing markets. Our role as government is to create the framework that encourages the business sector to invest, innovate, employ and take risks.  

    Accordingly, our growth agenda focuses on five key areas. 

    They are not just about the next few years, but about the next few decades. 

    First, we have to start with our people – human capital. 

    We as New Zealanders have a deserved reputation for innovating, rolling up our sleeves and getting on with things. And we still score relatively well in international education tests, but not as well as we used to. 

    That is why Education Minister Erica Stanford is refocusing the education system on the core skills that make the most difference to kids’ prospects – reading, writing and mathematics. 

    She is doing so not just to improve the economic outlook but because lifting educational achievement is the best thing we can do to address social inequality. Education has the power to transform lives.

    Making better use of our human capital also requires us to deliver more effective interventions for those citizens who may be left behind – individuals, families and communities whose lives are disrupted by difficult childhoods, educational under-achievement, unemployment, violence, crime; people whose innate human potential goes unfulfilled.  

    This is where our work in social investment comes in. Our Government wants to better harness the considerable resources New Zealand already invests in well-intended interventions for New Zealanders in need. 

    We want to devolve more power to the non-government organisations and iwi who often know better how to deliver for the needs of their community, and who are eager to act on data and evidence about what works for who.

    Our social investment agency is now up and running, is developing prototype social investment contracts, designing a social investment fund and working across Government to take a more rigorous approach to the social investments we make. 

    Second of the themes in our reform agenda is trade and investment. 

    Congratulations to Trade Minister Todd McClay for last month concluding the negotiations for New Zealand’s fastest-ever free trade agreement with the United Arab Emirates. 

    The negotiations, which will save New Zealand exporters millions of dollars, took just four months. 

    There will be more agreements to come. 

    And we are looking not just at growing our exports, but, equally importantly, at improving capital flows into New Zealand. 

    The Organisation for Economic Cooperation and Development (the OECD) has identified our foreign investment regime as one of the most restrictive in the developed world. 

    As a result, our stock of foreign direct investment is equivalent to about 40 per cent of GDP which compares to the OECD average of about 50 per cent. 

    This low level of investment not only reduces our opportunities to grow, it also slows our access to frontier technologies like artificial intelligence which are changing the way our competitors and trading partners operate. 

    Foreign direct investment is recognised as a key vector for the transfer of cutting-edge technology.  

    We’ve taken initial steps to address this imbalance. Earlier this year Associate Finance Minister David Seymour directed the Overseas Investment Office to administer the overseas investment regime in a way that:

    • minimised compliance costs; 
    • imposed a burden no broader than necessary; and
    • expedited application processes. 

    As a result, every consent application received and processed after his directive came into effect on 6 June has been decided in under half of the statutory timeframe.

    You can expect to hear more from us on this. 

    The Government will make a new round of significant reforms to the Overseas Investment Act next year. We want to put out the welcome mat to investors who want to help grow this country.  

    Third, science and innovation. 

    New Zealand has a proud history of scientific innovation and putting those innovations to good use. 

    In the 1880s the foundations of the New Zealand meat and dairy products industries were laid by the entrepreneurs who took advantage of developments in refrigeration technology to successfully ship frozen meat and dairy products to Britain for the first time. 

    More recently, Sir Peter Jackson, Dame Fran Walsh and Sir Richard Taylor have made Wellington the global centre of film special effects, Sir Peter Beck’s Rocket Lab is leading the world in the development of small, low-cost rockets and the development of a disease resistant strain of golden kiwifruit by scientists at Plant and Food Research has turbo-charged the kiwifruit industry. 

    I could go on – Ernest Rutherford, the Hamilton jetboat, bungy jumping… you get the picture. We need more of this sort of innovation. 

    The Government is doing its part.

    Judith Collins as Science, Innovation and Technology Minister, has announced the outdated, effective ban on gene technology will be scrapped by the end of next year. 

    Doing so will enable researchers and companies to further develop and commercialise their innovative products, improve health outcomes and help New Zealand to adapt to climate change. Ending the ban has the potential to deliver massive economic benefits to New Zealand.

    Judith is overseeing a shake-up of the state science system to better focus it on our economic needs and commercial opportunities.  

    And she is championing efforts to increase the uptake of artificial intelligence by New Zealand businesses as well as efforts to make it easier for businesses and people wanting to interact with government agencies to access government information and support by using AI. 

    Wearing another of his hats, Todd McClay announced earlier this year as agriculture minister that the Government was partnering with the a2 Milk Company, ANZ and ASB to put another $18 million into AgriZero, the joint venture established to boost New Zealand’s efforts to reduce agricultural emissions. 

    The injection took total funding for AgriZero to $183 million over its first four years, half of which is coming from the Crown. This public-private partnership approach is one we want to build on. 

    Fourth, regulation and competition. 

    It sounds dry but removing red tape and making this an easier place in which to get things done really matters, from fixing up the Credit Contracts and Consumer Finance Act (CCCFA), to improving building consent processes to having more pro-competitive prudential regulation.

    One of the most significant regulatory reforms our Government is making is removing the burden that the Resource Management Act has imposed on New Zealand. 

    That law has held back housing development, pushed the dream of home ownership out of reach of many young Kiwis, inhibited development and held back productivity and growth. 

    We are fixing the Act, and we have started with the fast-track regime announced by Infrastructure Minister Chris Bishop which will speed up consenting for 149 housing, infrastructure, renewable energy, mining, aquaculture, farming, and quarrying projects. 

    In the process, the new regime will deliver measurable benefits to regional New Zealand and help to stimulate growth nationally. 

    Fixing the Act does not mean we are throwing away environmental protections. But it does mean we are getting rid of the unnecessary red tape and delays that have held New Zealand back. 

    Improving New Zealand’s competition settings is equally important. In its most recent survey of the New Zealand economy, the OECD highlighted the importance of this work, given the small size of our population and the tendency for sectors to become dominated by a small clutch of players.

    International experience shows that competition is one of the most important drivers of long-term growth and productivity.   

    You’ll have seen that our Government is taking up the recommendations of the recent Commerce Commission inquiry into banking competition.  

    We are concerned that the two-tier oligopoly has meant Kiwis are missing out on the competitive pricing and services they deserve from their banks.

    I have asked the Treasury to engage with Kiwibank’s parent company on options for raising new capital to enable it to be a more disruptive competitor for the big four banks. 

    Potential sources of investment include KiwiSaver funds, New Zealand investments funds and everyday New Zealanders. I will take proposals to Cabinet later this year. 

    We are also alive to challenges in the grocery and electricity sectors. 

    Finally, infrastructure. 

    New Zealand has an infrastructure deficit that is holding back productivity and that has been worsened by a poor track record of planning, consenting and delivering major projects. 

    We’re working to fix that, by implementing tried and true approaches from more successful economies.

    We hear what business is saying. You want an enduring framework and an enduring pipeline. So do we, and we are applying lessons learned in Australia to our infrastructure reforms. 

    One of these is the importance of bipartisanship. Given the long-term nature of investment in infrastructure it is desirable to have as much buy-in as possible from different political parties. 

    To that end, Infrastructure Minister Chris Bishop has written to the infrastructure spokespeople of each party represented in Parliament inviting them to be briefed by the Infrastructure Commission on the development of a 30-year National Infrastructure Plan.

    Chris is also proposing that Parliament hold an annual special debate on the plan. The debate won’t change the content of the plan because it will be developed independently, but the debate will show where parties agree, where we don’t, and where there is room for compromise in the best interests of New Zealanders. 

    It will come as no surprise to you to hear, that a National-led government sees private capital as key to funding our ambitious work programme and closing New Zealand’s infrastructure gap faster. 

    We are currently in the process of refreshing the policy frameworks that enable private capital to invest in Crown infrastructure. 

    This includes the public private partnership (PPP) framework and unsolicited proposals guidance. We look forward to working further with you on the development of the pipeline.  

    I’ll stop now to leave some time for questions. 

    You can see from the steps we’ve taken and the priorities I’ve outlined that this is a government that is hungry and ambitious for New Zealand. 

    We feel your sense of urgency, we value your expertise, connections and energy, and we want you on board as we seek to tap New Zealand’s untapped potential. 

    You want bold and I want it too. 

    Together, let’s make this the best country in the world in which to do business and raise our families. 

    MIL OSI New Zealand News –

  • MIL-OSI Banking: ADB, Arnur Credit Sign Deal to Boost Financial Access for Women-Owned Small Businesses in Kazakhstan

    Source: Asia Development Bank

    ASTANA, KAZAKHSTAN (15 October 2024) – The Asian Development Bank (ADB) and Arnur Credit Limited Liability Company have signed a senior unsecured loan of up to $5 million (in tenge equivalent) to expand access to finance for micro, small, and medium-sized enterprises (MSMEs) in Kazakhstan, with a focus on women-led MSMEs (WMSMEs) and as well as green loans.

    Arnur Credit will use the finance package to lend to eligible MSMEs, with at least half of the loan proceeds directed towards WMSMEs and at least 10% towards green loans. The green loans will aim to support the procurement of energy and resource-efficient equipment and small-scale renewable energy projects.

    “ADB’s partnership with Arnur Credit will enhance credit access for MSMEs in Kazakhstan, contributing to job creation, innovation, entrepreneurship, poverty reduction, and economic growth,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “By supporting women entrepreneurs and promoting green business, we enhance inclusive, sustainable and resilient growth.”

    MSMEs comprise nearly all of Kazakhstan’s 2 million registered businesses, employing nearly half of the total labor force and contributing 36.5% of gross domestic product. Nearly half of MSMEs are owned or operated by women. Despite their significance to the economy, MSMEs lack access to credit, with a finance gap of an estimated $42 billion.

    “Partnering with ADB to help MSMEs in Kazakhstan will enable us to reach a greater number of entrepreneurs, particularly women, and champion green initiatives essential for our country’s sustainable development,” said Arnur Credit CEO Raushan Kurbanaliyeva. “By enhancing access to finance for MSMEs, especially those managed by women, we are helping to build a more resilient and equitable economy.”

    Established in 2001, Arnur Credit is a leading microfinance institution in Kazakhstan serving over 21,000 customers through 47 branches across southern Kazakhstan. Arnur Credit’s strategic focus is financial inclusion for MSMEs. Nearly half of its clients are women, the majority from rural areas. It is one of the few microfinance institutions offering green loans to MSMEs.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Development Asia: Accelerating Climate Change Financing in the People’s Republic of China

    Source: Asia Development Bank

    Future Proof Climate Change Financing Guideline

    An effective framework is crucial for managing climate finance projects. The project developed the Future Proof Climate Change Financing Guideline to advance climate action by setting clear project criteria, promoting technology adoption, and evaluating environmental benefits. Aligned with national climate goals, it offers a standardized approach to creating and assessing a robust project library.

    By refining green finance frameworks, the guideline prioritizes projects in eight sectors: electricity, industry, transportation, buildings, methane, nitrous oxide, fluorinated gases, and carbon sinks. It also expands mitigation to include low-carbon services and adaptation to cover sponge city infrastructure, ecological restoration, and more.

    The guideline’s assessment process includes project taxonomy, threshold evaluation, and technology analysis. By measuring technological advancements and environmental impacts, it ensures that funded projects deliver meaningful climate benefits. This approach supports the growth of climate finance nationwide, especially in pilot cities.

    China Certified Emission Reduction Plus Guideline

    Meanwhile, the China Certified Emission Reduction Plus Guideline, another output from the project, directs investment toward high-impact voluntary emission reduction projects. By applying strict evaluation criteria, it ensures that social capital backs projects with significant environmental and social benefits, accelerating the PRC’s journey to carbon neutrality.

    Drawing from international practices like the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), and others, this guideline adheres to additionality, permanence, and no-double-counting principles, while considering PRC-specific contexts. It introduces innovative approaches for crediting period management, implementation, and digital Measurement, Reporting, and Verification (MRV).

    By dividing the evaluation into initial and subsequent stages, the guideline allows for thorough project assessment. It mandates environmental monitoring throughout the project lifecycle. Clear evaluation criteria help investors identify high-quality projects. The digital MRV standard enhances efficiency and ensures data integrity through automated monitoring and reporting.

    MIL OSI Global Banks –

  • MIL-OSI Economics: Money Market Operations as on October 14, 2024

    Source: Reserve Bank of India
    (Amount in ₹ crore, Rate in Per cent)
      Volume
    (One Leg)    		 Weighted
    Average Rate    		 Range
    A. Overnight Segment (I+II+III+IV) 532,740.60 6.26 4.50-6.50
         I. Call Money 10,988.08 6.42 5.10-6.50
         II. Triparty Repo 369,234.60 6.24 6.20-6.45
         III. Market Repo 151,494.92 6.29 4.50-6.50
         IV. Repo in Corporate Bond 1,023.00 6.40 6.39-6.45
    B. Term Segment      
         I. Notice Money** 284.80 6.30 5.50-6.50
         II. Term Money@@ 704.00 – 6.65-7.25
         III. Triparty Repo 1,065.00 6.35 6.35-6.35
         IV. Market Repo 352.39 6.45 6.36-6.55
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo Mon, 14/10/2024 4 Fri, 18/10/2024 24,070.00 6.49
    3. MSF# Mon, 14/10/2024 1 Tue, 15/10/2024 1,982.00 6.75
    4. SDFΔ# Mon, 14/10/2024 1 Tue, 15/10/2024 94,487.00 6.25
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -116,575.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo Fri, 04/10/2024 14 Fri, 18/10/2024 44,275.00 6.49
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    5. On Tap Targeted Long Term Repo Operations€ Mon, 15/11/2021 1095 Thu, 14/11/2024 250.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 2,275.00 4.00
    6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 15/11/2021 1095 Thu, 14/11/2024 105.00 4.00
    Mon, 22/11/2021 1095 Thu, 21/11/2024 100.00 4.00
    Mon, 29/11/2021 1095 Thu, 28/11/2024 305.00 4.00
    Mon, 13/12/2021 1095 Thu, 12/12/2024 150.00 4.00
    Mon, 20/12/2021 1095 Thu, 19/12/2024 100.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 255.00 4.00
    D. Standing Liquidity Facility (SLF) Availed from RBI$       7,217.52  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -33,517.48  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -150,092.48  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on October 14, 2024 999,295.71  
         (ii) Average daily cash reserve requirement for the fortnight ending October 18, 2024 1,001,756.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ October 14, 2024 0.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on September 20, 2024 418,318.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    € As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    £ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    Ajit Prasad            
     Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/1291

    MIL OSI Economics –

  • MIL-OSI Australia: Interview with Ros Childs, ABC News

    Source: Australian Treasurer

    ROS CHILDS:

    Let’s stay with the government’s proposal to ban debit card surcharges from 2026. The Assistant federal Treasurer, Stephen Jones, joins us now. Stephen Jones, welcome.

    STEPHEN JONES:

    Good to be with you.

    CHILDS:

    So, how much do surcharges cost consumers and small businesses right now?

    JONES:

    Look, the charging arrangements are incredibly opaque, but our estimates are anywhere between $1.5 and $4 billion a year is being taken out of the system by a combination of the banks, the card system providers, and the payment rail providers. The end result is that consumers are paying to access their own money, and they’re saying, quite rightly, it’s harder to get cash, fewer places are accepting it, we’re being forced into electronic payment systems and we’re being forced to pay surcharges to access our own money.

    CHILDS:

    So, the banks, though, say that fees and charges have been reducing every year for the past decade. That there is an option for businesses to use what’s called Least Cost Routing so payment terminals automatically default to the cheapest surcharge. What’s your response to that argument?

    JONES:

    What we want to see is that customers aren’t paying to access their own money to buy a cup of coffee or to fill their shopping trolley, and that’s what’s happening at the moment. We want to ensure that at least, at the very least, on these debit charges, this surcharging is knocked on the head.

    What’s occurred over the last year or so is we’ve seen a whole heap of changes going on in the way these charges are imposed upon the small businesses. Big differentials between what a big retailer like a Coles and Woolies is paying, compared to a small business when it comes to these surcharges – the payments they’re making to their banks. Not a lot of clarity about what’s being paid, where and by whom, except when it comes to the consumer. So, we’ve got the Reserve Bank spending the next few months having a look at it – a detailed analysis of the cost of providing these services and the charges that are being charged by all the participants in the system – there’s at least 3 or 4 different participants in the system – as a precursor to us getting some clear guidelines, making it very, very clear to industry that we will introduce a ban by the beginning of 2026 on debit charges, on debit card surcharges.

    They don’t have to wait till then. They can move ahead of that. But we want to ensure that we do it in a way that doesn’t look like a benefit to consumers, but it ends up being the small businesses who cop it in the neck—they’re prevented from covering the costs of a surcharge by recouping it from a consumer, but they’re still getting the banks and the payment system providers charging these exorbitant costs. That’s why we need to take a little bit of time to get it right, but sending a very clear message to all the participants, this has got to stop.

    CHILDS:

    Ok, so you say you’re sending a signal, a message with this proposal, but how hopeful, realistically, are you that the banks will move on this without you having to take action, even though in the past they have proved very resistant, haven’t they, to making changes that will hit their bottom line?

    JONES:

    What I can say I’m certain about is that if the banks, the payment system providers, the card operators don’t get it right and don’t knock this on the head themselves, then we are willing to move ourselves and using the levers available to us to ensure that these debit card surcharges are ended.

    CHILDS:

    So, we heard a couple of political voices there, the Greens Senator, Sarah Hanson‑Young, and the Opposition Leader, Peter Dutton, both saying that the cost‑of‑living crisis means that consumers can’t wait until 2026, the start date for the proposed ban, they need the surcharge ban now. Also, Sarah Hanson‑Young calling for the ban to be extended to credit card surcharges, as well as to debit cards. How would you answer that?

    JONES:

    To Peter Dutton – 9 years, nothing? Not a single thing on this problem? It was a problem on his watch. He’s done nothing on it. In the first 2 years of our government, we’ve moved across a whole range of areas of consumer policy, lifting protections on consumers. We’re determined to do it. So, the bloke who has done nothing for 9 years, now thinks there’s an urgent problem to be fixed, doesn’t have a lot of credibility, particularly when he’s voted against every single piece of cost‑of‑living relief that this government has introduced. Peter Dutton is batting on zero when it comes to helping consumers. And, for the Greens, frankly, their form on this is whatever Labor does and then another 10 per cent. So, frankly, this is just situation normal from the Greens. We’re taking a considered approach. We’ll get a benefit to consumers, but without making small businesses pay for it. We’ll do it in the right way. Very clear message to industry: they’ve got to get their act into order.

    CHILDS:

    Assistant Treasurer Stephen Jones. Thank you.

    MIL OSI News –

  • MIL-OSI China: China’s yuan loans grow by 16.02 trillion yuan

    Source: China State Council Information Office

    Photo taken on Oct. 19, 2020 shows an exterior view of the People’s Bank of China in Beijing, capital of China. [Photo/Xinhua]

    China’s yuan-denominated loans rose by 16.02 trillion yuan (about 2.27 trillion U.S. dollars) in the first three quarters of the year, central bank data showed on Monday.

    The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 6.8 percent year on year to 309.48 trillion yuan at the end of September.

    The M1, which covers cash in circulation plus demand deposits, stood at 62.82 trillion yuan at the end of September, down 7.4 percent year on year.

    The increase in social financing scale reached 25.66 trillion yuan in the first nine months, down 3.68 trillion yuan compared to the same period last year.

    Outstanding yuan loans totaled 253.61 trillion yuan at the end of last month, marking an increase of 8.1 percent year on year, the data revealed.

    MIL OSI China News –

  • MIL-OSI Economics: RBI to conduct 2-day Variable Rate Reverse Repo (VRRR) auction under LAF on October 15, 2024

    Source: Reserve Bank of India

    On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on October 15, 2024, Tuesday, as under:

    Sl. No. Notified Amount
    (₹ crore)    		 Tenor
    (day)    		 Window Timing Date of Reversal
    1 50,000 2 11:00 AM to 11:30 AM October 17, 2024
    (Thursday)

    2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1292

    MIL OSI Economics –

  • MIL-OSI Australia: Interview with Nadia Mitsopoulos, Perth Mornings, ABC Radio

    Source: Australian Treasurer

    NADIA MITSOPOULOS:

    Well, we have spoken a lot about that fee you are charged when you use your debit card. Put simply, you hate it and it feels particularly unfair when you are forced to use that card by a business which is no longer taking cash. Well, the federal government is finally listening and it looks like it will get rid of these charges. How far will it go? When will this happen, if it does? Let’s get more from Stephen Jones, who is the Assistant Treasurer. Good morning and thank you for joining me.

    STEPHEN JONES:

    Nadia, good to be back with you.

    MITSOPOULOS:

    First of all, these fees, how much are they costing Australians every year?

    JONES:

    Look, industry sources say as much as $4 billion a year is being charged in one fee or another. All of that ends up with the consumer in one way or another. So, that’s a lot of money. We’re particularly concerned about debit card fees. That’s the one where you get charged a surcharge to access your own money to pay for a cup of coffee. Consumers are rightly had enough of it. As you said in your introduction, they feel like it’s harder and harder to get cash, harder and harder to use it, and then you’re getting whacked with a surcharge fee when you’re paying with a tap‑and‑go everywhere from a coffee shop to a restaurant to a hotel, and we’ve had a look at it, the practice has got to stop. Consumers are being ripped off. It’s time to end the rip‑off.

    MITSOPOULOS:

    Ok, I’ll talk more about ending the rip‑off in a moment. But who pockets it? Is it the bank, the business or the merchant?

    JONES:

    Really good question. The one we’re pretty certain it’s not is the small business. And if you look at the fees that are being charged small businesses, sometimes they’re being charged twice the fee that a large retailer like a Coles or a Woolworths would be charged to use those electronic payment methods. So, it’s definitely not the small business. They’re passing on a cost which is imposed on them by the bank, by the payment service providers and by the card provider. So, that’s your Visa cards, your Mastercards, your EFTPOS’. Then there’s the system that nobody knows about, which is the payments network, which transmits all the payments traffic around the country from bank to bank and from system to system. And the banks are in there as well. They’re at the front end of all of it. So, there’s at least 3 different players here, very opaque about the way the costs are charged. They all end up at a consumer. They look like a small charge, but they all add up and they punch a big hole in the wallet of the consumer in the takings of a small business.

    MITSOPOULOS:

    Do you agree that, well, first of all, these charges have been creeping up, but it’s more than the cost of doing that transaction. What consumers are being charged?

    JONES:

    Well, for the small business, they’re passing on, in most instances, some, but not all of the cost. Some small businesses say that they’ll just lose market share if they’re passing on the entire cost of using those charging mechanisms that they don’t. Many of them do if they’re able to. So, it’s not the cost of the small business. But if you’re asking me, are the banks or the card providers or the payment system providers making a healthy profit out of all of this, the answer is absolutely.

    MITSOPOULOS:

    Okay, so what’s your plan? What do you plan to do?

    JONES:

    We want to do this in a smart way. We want to ensure that whatever we do, particularly around banning of debit charge surcharges, debit card surcharges, we don’t just whack the small business. So, you stop the small business charging it, but they’re still copying that fee from the bank and the payment system providers. So, we’ve got to ensure that we get all ends of this sorted out so that we don’t save the consumer a dollar, but that just gets passed on in another way by the small business. So, we’ve got the Reserve Bank having a look at it using its powers over the next couple of months. They’ll hand us a report by the end of the year. We’ll look at the proposals in the first few months of next year. But we’re sending a very clear message to the market, to the operators, the banks, the card providers, the payment system providers, a very clear message to all of them – this has got to stop. And we are willing to impose a ban on it by the beginning of 2026 at the latest if these guys do not get their act together.

    MITSOPOULOS:

    And so you would then be banning the banks and the merchants from charging this fee because the concern is the small business could still be charged the fee and then can’t pass it on.

    JONES:

    Yeah, and you’ve got to the heart of it. That’s what we’re adamant we don’t want to do. We don’t want to create an elusive benefit for consumers, but the small business cops it in the neck. So, we’re not going to do that. We’ve got to ensure that we protect the position of the small business and the consumer. And somebody somewhere further up the chain, they’re going to have to review their pricing mechanisms. A lot of really opaque and tricky things have gone on over the last year or so in this area. Things like blended pricing, where they’re charging the same for a credit card transaction as they are for a debit card transaction when they’re completely different. So, a bunch of these things we’re going to get to the bottom of. But the thing that your listeners can be absolutely certain of, we’re going to protect the interests of small business. We’re going to protect the interests of consumers.

    MITSOPOULOS:

    Stephen Jones, the Assistant Treasurer, is my guest this morning. So, this will only apply if you go down this path, will only apply to debit cards, not credit cards.

    JONES:

    That’s where the biggest problem is, and they are very different transactions. As your listeners and all know, when you’re using a debit card, you’re accessing your own money to pay for something. It’s the modern form of cash.

    MITSOPOULOS:

    It’s the tap‑and‑go.

    JONES:

    It’s the tap‑and‑go, and it’s the modern form of cash, particularly for young people. Increasingly, young people won’t have a credit card, but they will have a debit card, or they might have some other form of buy now, pay later, but most of their transactions will go on a debit card for good reasons. They don’t want to rack up an interest bill. They also don’t want to rack up all the charges that they’re getting through these opaque surcharges. So, that’s why we’re focusing on this. It’s the biggest part of the big problem.

    MITSOPOULOS:

    Minister, why can’t you do this now? Why do you have to wait till 2026?

    JONES:

    Because we don’t want to do something that looks popular but actually ends up hitting small business in the neck. We want to ensure that we do this in a way that protects the interests of small business and gets the benefit for consumers. That’s why we’ve got to work through these things, and we’ll probably have to use a couple of different levers. Nothing is stopping the banks and the payment system providers getting ahead of the game by the way.

    MITSOPOULOS:

    And when we look at retail transactions, only about 12 per cent of those are now made using cash. Is using a card a cheaper way of doing business? I mean, again, we’re being charged for it, but is that cheaper than moving cash around?

    JONES:

    Certainly cheaper for the banks. It’s certainly cheaper for the big retailers and probably a lot of the smaller ones as well. If you think of it like – there’s always been a cost involved in using cash. It’s just not very transparent. When somebody’s got to go to the bank, get the money out to put the float in the till, somebody’s then got to add all of that up at the end of the day and take the bags of money back to the bank for safekeeping. There’s a cost involved in all of that and it’s just embedded in the price of the goods. The difference between the cost involved in money and the cost involved in electronic transactions is that they are very, very transparent from a consumer point of view because you can see them on your bill. We need to ensure that all of it’s transparent all the way upstream so that all the payment providers, the banks, the card providers are being very clear about what they’re charging and for what, and then we get a better deal for consumers.

    MITSOPOULOS:

    But a ban, are you certain that a ban is on the cards?

    JONES:

    Absolutely.

    MITSOPOULOS:

    You’ve just got to work out how to do it.

    JONES:

    Best way of doing it. That’s exactly right.

    MITSOPOULOS:

    When we look at bank profits, the feeling is they could probably absorb this charge. Do you agree?

    JONES:

    I agree that between the banks, the payment system providers, the card providers, all of these are participants in the scheme. It’s not always obvious to consumers. They just think it’s the bank. But there’s actually 3 or 4 different players in there and there is people in all up the stream who are clipping the ticket. The consumers are paying and it’s got to stop.

    MITSOPOULOS:

    I’ll leave it there. Appreciate your time. Thank you.

    JONES:

    Good to be with you.

    MIL OSI News –

  • MIL-OSI Banking: Human-centered Design Improves Transport in Ulaanbaatar’s Ger Areas

    Source: Asia Development Bank

    ADB used human-centered design for the Improving Transport Services in Ger Areas project. Prior to the start of the project, ADB conducted a detailed needs assessment, engaging residents in Ulaanbaatar’s ger areas to understand what improving transport meant for community members instead of defaulting to usual problem statements and solutions. The project conducted focus group discussions with residents including persons with disabilities, older people, school children, women and other community members. 

    The team then engaged closely with four community representatives—a person with disability, an elderly woman, a young girl, and a mother with three young children—to deeply understand their experiences through visual journey maps.  

    Using body cameras, the residents went through their daily travels to show pain points and issues they encountered along their journeys. The project addressed the identified challenges of accessibility and usability, personal safety and security, and road safety through system-wide interventions.  

    At the end of the project, the residents visually mapped their journeys again, but this time, they tried out the improved infrastructure and systems that they wanted addressed at the project’s start.  Ramps, low-floor buses, bus announcement speakers, better located stairs and crossings responded to accessibility issues. Bus driver training, security cameras, crime-prevention through environmental design, public communication on harassment, and feedback mechanisms responded to concerns about personal safety. Pedestrian crossings, lane demarcation, clear signage, footpaths, speed bumps, and better designed bus shelters with relevant information on routes, schedules and other transport information addressed road safety concerns.  

    The project was supported by the Municipality of Ulaanbaatar, the Public Transport Department, JFPR and EAPKF.

    Watch the other videos on the individual stories of the person with disability, mother with young children, young girl and an elderly woman, and how their inputs influenced the project’s technical design:

    Transcript

    Stories helped design this project. Partnerships built it.

    The project, Improving Transport Services in Ger Areas used human-centered design to understand user needs and design appropriate interventions.

    Byambadorj’s story filmed before the project started told us that designs cannot ignore those who travel differently.  

    The slope is very steep. 

    To go down, I have to go inch by inch, like this.

    I can only go up this steep ramp with someone else’s assistance.  

    Curb ramps should be done according to standards.

    For a person on a wheelchair, boarding a bus is a miracle.  

    It would be better if buses have ramps.

    Using Byambadorj’s story, discussions with other users, and technical review, we built new ramps in strategic places for safety and access.  

    The Public Transport Department ensured accessible low-floor buses with ramps would be used on the Chingeltei corridor to aid in mobility.

    Before the project started, Tserenbadam’s stories and stakeholder consultations emphasized that commuters deserve safer driving practices, accurate information, and a way to easily report incidents.

    Sometimes there is a long wait for the bus.

    Those with better legs would run to the bus stop.

    Bus drivers talk on the phone a lot while on the road.

    One bus is racing with another bus.

    They often race with each other to get more passengers.  

    From Tserenbadam’s stories and other user insights, we developed a customer feedback system for commuters to report issues.  

    Bus schedules and other information are visibly displayed in new bus stops.    

    Bus drivers were trained in safe driving and customer service. CCTV cameras inside buses monitor driver and passenger behavior for improved commuting experiences.

    Uzmee’s stories highlighted that infrastructure must accommodate the needs of vulnerable road users across seasons.

    There should be barriers on roadsides because children have high risk of running onto the road.

    We should analyze the frequently used exits and entrances, then put stairs where necessary.  

    A proper bus shelter would be a refuge from the cold for children.

    These stories, with road safety auditing and information from the traffic police, helped identify key areas to add speed bumps, pedestrian crossings, and stairs.

    We installed bus shelters for weather protection, comfort and information.  

    Infrastructure design removed blind spots, enforce security and prevent crime.    

    Throughout the project, we engaged with civil society and established a community council for sustainable change.  

    Infrastructure built.  

    Systems installed.  

    Enforcement in place.  

    Driver behavior improved.  

    Community mobilized.

    Stories helped design this project.

    Partnerships built it.  

    With ADB, JFPR and EAPKF support, the local government and community are taking ownership of people’s safe, and inclusive mobility. 

    MIL OSI Global Banks –

  • MIL-OSI Banking: Disasters Trigger More Displacements than Conflicts, Says New ADB-IDMC Report

    Source: Asia Development Bank

    MANILA, PHILIPPINES (15 October 2024) — Global disasters accounted for more displacements in 2023 than conflict and violence, and governments and multilateral development banks must invest more to prevent and manage these crises, according to a new report jointly authored by the Asian Development Bank (ADB) and the Internal Displacement Monitoring Centre (IDMC).

    The report found that last year, 26.4 million internal displacements—or forced movements within one’s country—were caused by disasters, compared to 20.5 million caused by conflict and violence.

    The report, Harnessing Development Financing for Solutions to Displacement in the Context of Disasters and Climate Change in Asia and the Pacific, found most of the disaster displacement recorded globally in the past 10 years occurred in Asia and the Pacific, with 177 million internal displacements reported during 2014−2023. ADB’s developing member countries (DMCs) accounted for 95% of that total—more than 168 million displacements. The report warns that the effects of climate change will likely increase the scale, duration, and severity of displaced persons globally.

    “Addressing displacement in the context of climate change and disasters is a significant challenge for the region,” said ADB Vice-President Fatima Yasmin. “However, we know what needs to be done and how to do it. Development and adaptation finance channeled through multilateral development banks, such as ADB, can support member countries in addressing the root causes of displacement through sector investments, technical assistance, and cofinancing.”

    “Disaster displacement can upend lives, cost countries billions of dollars, and set back development efforts by years, but it doesn’t have to be this way,” said IDMC Director Alexandra Bilak. “Investments in disaster risk reduction and climate adaptation plans can reduce the scale and negative impacts of displacement. The payoff could be huge.”

    The report outlines several ways development finance can be used to prevent and respond to displacement. Multilateral development banks can support and encourage displacement-inclusive policies and investments, better national data systems, and raise awareness for countries to include displacement in their development strategies.

    The report says governments also need to better reflect their priorities to reduce displacement through specific and concrete measures in the national development plans, adaptation and disaster risk reduction plans, and nationally determined contributions, and to better recognize the complexity of displacement occurring in the context of climate change.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Global Banks –