Latest News
-
Saudi Arabia's finance ministry expects a fiscal deficit of 3,3% of GDP by 2026.
Saudi Arabia projected a fiscal surplus of 3.3% for 2026. This is higher than the previous estimate in the budget for 2025, which predicted a deficit of 2.9% for next year. The 2026 deficit equals 165 billion Riyals ($44.00 billion). The Ministry Estimated Value The 2025 deficit is projected to be 245 billion riyals (65.33 billion dollars), or 5.3%, which is higher than the 101 billion riyals that were originally forecast in the budget released last November. The latest pre-budget announcement on Tuesday by the Finance Ministry puts the total expenditures for 2026 at 1,31 trillion riyals (349 billion dollars) and the revenue at 1,14 trillion riyals (304 billion dollars). Saudi Arabia has embarked on a massive overhaul of its economy known as Vision 2030. It aims to reduce reliance upon oil and develop more sustainable revenue streams. This requires hundreds of billions in investment. The Ministry of Finance forecasts a real GDP growth rate of 4.4% by 2025, fueled by non-oil activity growth, and 4.6% by 2026. According to a July poll, 20 economists surveyed between July 15 and 28 predicted that Saudi Arabia's economy would grow by 3.8% in this year. This is nearly three times faster than the 1.3% recorded growth in 2024. The International Monetary Fund increased its GDP growth forecast of Saudi Arabia for 2025 to 3.5%, from 3%. This was partly due to the demand for government-led initiatives and the OPEC+ plan to gradually end oil production cuts. $1 = 3.7501 Riyals (Reporting and writing by Elwelly Elwelly; editing by Alex Richardson).
-
Bangladeshi textile firms use technology to sort out waste
Software tracks waste from factories to recyclers Export growth could be boosted by more recycling The key to increasing recycling is visibility of waste streams Tahmid Zami Tahmid Zami Cloud-hosted software enables manufacturers to segregate and label waste, register it on a digital platform, and track its movement between factories, handlers, and recyclers. Rizvan hasan is the country leader of Reverse Resources. This company produces software. He said: "Reverse Resources bridges Bangladesh's waste streams to international recycling markets. This ensures that waste handlers enjoy greater business opportunities and fairer prices." According to a report published last year by GIZ, the German development agency and H&M, the Swedish fashion retailer, Bangladesh is only able to recycle between 5 and 7 percent of its cotton and cotton-elastene pre-consumer waste. The report said that less than 5% was recycled into products like rag dolls, blankets and rag rugs. More than 55% of the waste is exported to developed recycling hubs, such as Vietnam. Finland, Sweden. India and China. The report stated that the rest is used to stuff cushions and mattresses. It is also incinerated for electricity. A small amount of it is disposed to landfill. The report states that recycling more textiles at home could lead to exports worth up to $5 billion. This month, the European Parliament passed a law that requires textile producers in the EU who sell textiles to cover the costs of collection, sorting and recycle the waste textiles. Fashion brands such as H&M require the use of recycled materials in their products, reducing the amount of waste that is buried or burned. The apparel industry in Bangladesh must use more recycled fiber. However, much of this waste is currently handled by informal handlers. These include local influencers known as "musclemen" and small workshops Ayub Khan, the pro-vice chancellor of BGMEA University of Fashion and Technology, stated that the lack of standardised data and transparency on the way waste is recycled and handled has been a major obstacle to the sustainability goals of the fashion industry. "Digital tracking using verified data allows us not only streamline textile waste but also capture a larger share of its value," said he. Waste - A Higher Price Reverse Resources is a European Company based in Dhaka that provides data on waste streams to brands, suppliers, handlers and recyclers. By comparing the waste sent by factories to that received by formal waste recyclers and handlers, leaks can be detected," Hasan of Reverse Resources said. He said that textile factories can get more money from their waste if they segregate and trace their scraps and yarns, and brands can follow the life cycle of the waste generated by their suppliers. Reverse Resources covers currently 410 factories, and 60+ global brands. This is about 1% market share. Katrin Lee, the Managing Director of Fashion for Good, an alliance of businesses and non profits promoting green technology, explained that in order to scale up digitalised waste tracking by such platforms, they must be adopted and integrated into existing business practices. She added, "By demonstrating a clear business case, such as efficiency gains, verified feedstock, and data for reporting, they can position their technology to scale." Bangladeshi recyclers said that digital tracing will be crucial for their business growth. Reverse Resources has been working with Recycle Raw since 2019. Abdur Razzaque, managing director of Recycle Raw, said that the platform allowed him to not only build a direct relationship with factories, but also bypass informal handlers.
-
Eskom bailouts to wind down in 2028 will keep South Africa's Eskom off the bond markets.
Eskom, the state-owned electricity utility in South Africa, said it would not access international capital markets before 2028. This is because it's working through a plan to stabilize its finances, backed by the government. The utility that supplies almost all of South Africa’s electricity, and which employs over 40,000 people, reported earlier its first profit for the full year in eight years. Eskom's power outages have hindered South Africa's growth in economic terms for over a decade. Its repeated bailouts also drained the state's coffers. The company's presentation of results showed that it had reduced its gross debt from 412.2 billion rand to 327.7 milliards rand (19 billion dollars) in the year ending March, thanks to government debt relief. Eskom has raised 8,7 billion rand in development finance from export credit agencies and is planning to raise another 13,4 billion rand over the next five-year period. In the short term, borrowing will be limited to these facilities. Any additional financing is subject to approval by the South African finance minister in accordance with the conditions of debt relief. Eskom said it aims to return to capital markets from 2028, when it expects to raise about 25 billion rand annually through conventional debt, including sustainability-linked bonds to fund renewable energy projects, emission cuts and grid upgrades. The yield on Eskom's 2028 government-guaranteed dollar bonds has dropped 120 basis points this year to 5.34%. Electricity Minister Kgosientsho RAMOKGOPA said that Eskom would not receive any further bailouts. The government will now allocate funds to other priorities. Eskom received 140 billion rands in support by March 2025 since the Eskom Debt Relief Act was implemented in 2023. The term of the current board has been extended until 30 November 2025. Ramokgopa announced that announcements about a new board will be made next week.
-
Caution is urged as the US government shutdown approaches
On Tuesday, the world's markets were cautious. The dollar and stocks fell and gold briefly hit new records on concerns that a U.S. shutdown could delay important jobs data. As Washington prepared for an imminent government shutdown, the dollar fell while U.S. stocks and European shares either remained flat or made small gains. The government shutdown would delay Friday's important employment figures, and put the spotlight on the Labor Department JOLTS report for August job openings that is due on Tuesday. This could also affect the Federal Reserve's outlook, as they cut rates earlier in the month. Monica Guerra is the head of U.S. Policy at Morgan Stanley Wealth Management. She said that a full government shutdown by Oct. 1, appears to be more likely. The release of economic data, including Friday's nonfarm employment report, could be delayed. However, mandatory government spending, such as Social Security and Medicare, will continue. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite were all flat. James Rossiter is the head of global macro-strategy at TD Securities, London. "The Fed is worried that there could be a long shutdown if the government shuts down. If we don't receive Friday's CPI or the jobs report, what will happen?" He was referring to the U.S. inflation numbers. The pan-European STOXX 600 rose 0.2% while Japan's Nikkei fell 0.25%. The MSCI All-World Index.MIWD00000PUS was flat due to muted equity performance across the board. China's blue chip CSI300 Index rose also by almost 0.5%. This is the longest streak of gains since October 2017 and it marks its fifth consecutive month. Overall, the outlook for equities remains positive, as U.S. shares are expected to finish September with a gain of more than 3%, and European stocks have gained almost 1% in this month. Shaniel Ramjee is the co-head of Pictet Asset Management's multi-asset division. "The earnings picture is improving quite significantly at the same time as global central banks continue to cut interest rates, and global growth continues to be good." The Australian dollar gained after the central banks held rates at their current levels, as expected. Oil prices dropped over 1% due to expectations of increased production from OPEC+. China's manufacturing activity also shrank in September. Gold's spectacular rally was boosted by the threat of a U.S. shutdown. Gold briefly reached a record high of $3.871.45 an ounce, before trading lower for the day. It has still gained more than 10% in September, on course to be its largest monthly percentage gain since the month of July 2020. A U.S. shutdown without a deal would start on Wednesday, the day that new U.S. Tariffs will be implemented for heavy trucks, patented medicines and other items. The White House announced new tariffs for furniture and cabinets on Monday night. They are set to take effect on October 14. The dollar is now on the defensive. The U.S. dollar was down 0.5% to 147.80yen. The euro was up by 0.1% at $1.1742. Both the Swiss franc, and the pound were slightly stronger against the dollar. The dollar index is expected to finish September with little change, despite the recent 0.2% decline. ING currency analysts wrote in a report that the yen would likely outperform as a hedge against a U.S. shutdown. The U.S. JOLTS Report is one of several indicators that will be released ahead of Friday's September employment report, which is crucial to the Fed in determining the timing of rate reductions. The Fed's meeting on October 29 could be thrown into confusion by a prolonged government shutdown. Analysts expect JOLTS will show that job openings remained stable at around 7.18 million in august. The data released on Tuesday shows that China's purchasing manager's index increased to 49.8 from 49.4 from August. This is below the 50-point mark that separates growth from contraction. The statement suggested that producers were waiting for more stimulus to boost the domestic demand as well as clarification on a U.S. Trade Deal. The Reserve Bank of Australia also left its cash rate at 3.60% unchanged, citing recent data that suggested inflation could be higher than expected in the third-quarter and the uncertain economic outlook. The data that showed an increase in inflation in four important German states did not have a significant impact on the market. The oil price remained weak due to the anticipated increase in production by OPEC+, and the resumption from Iraq's Kurdistan Region. Brent crude oil fell 1.25%, to $67.11 a barrel. U.S. crude dropped 1.37 %, to $62.59.
-
Schwarzenegger in Vatican to 'terminate fossil fuels'
Arnold Schwarzenegger visited the Vatican on February 2 to lend his support to Pope Leo’s efforts to encourage leaders around the world to tackle global climate change, and to transition away from fossil-fuels. The former California governor, bodybuilder, and actor said that "every single one (of) the 1.4 billion Catholics" can be a crusader to protect the environment, and help us end pollution. He was referring to one of his most famous film roles: the Terminator. "God put us here to make this world better than what we inherited," said Schwarzenegger. Schwarzenegger is a Catholic Austrian born in Austria. "I am so happy... that both the Catholic Church, and the Vatican are involved in this. We need their help." Schwarzenegger spoke at a news conference before a three-day Vatican summit on climate change this week, where he'll deliver a keynote speech alongside Pope Leo. The three-day festival is linked to the 10th anniversary a major document on the environment by late Pope Francis. It was the first papal document to endorse the scientific consensus regarding climate change, and to urge nations to reduce carbon emissions. Leo, Leo the first American pope, has also stressed the Church's teachings on environmental issues. Leo inaugurated a Vatican-run eco-training centre earlier this month on the expansive grounds of a Renaissance era papal Villa in Castel Gandolfo. The town is located near a lake and about an hour from Rome. The Vatican event this week is expected to bring together 400 leaders from the faith community and civil society, including the Brazilian environment minister, director of the U.N. Faith for Earth Coalition, and CEO of the European Climate Foundation. Maina Talia (climate change minister of the Pacific Island nation Tuvalu) told a Tuesday press conference that rising sea levels are already having a dramatic impact on his country. He said, "Climate Change is not an improbable scenario." "We're already drowning." "Our survival depends on urgent international solidarity." (Reporting and editing by Gareth Jones. Editing by Joshua McElwee)
-
The Philippines flood control project fails the poor
Infrastructure is key to flood control in the Philippines Advocacy group calls out'misalignment of flood control projects' Risk management must be 'holistic' to protect communities By Mariejo Ramos She said that heavy rains in Bulacan - a densely populated region north of Manila - knocked over trees and a bamboo stilt home one night in the summer. Bulacan is one of the provinces that are most prone to flooding in the country. In the last three years, Bulacan has seen the most projects for flood control built. The government spent over 500 billion Philippine Pesos (8.5 billion dollars) to build infrastructure, such as dykes and seawalls. It also laid down large stones called ripraps to control stormwater. State investigations revealed that many flood-prone residents were still not protected by the state due to overpriced construction contracts, unfinished buildings and projects that did not match flood risk. In September, President Ferdinand Marcos Jr. created a commission to investigate corruption in flood-control projects after thousands of Filipinos protested on the streets of Manila to demand accountability from the government. Dela Cruz has lived on the Angat River's banks for over 40 years. "We were disappointed when we learned how much money was being spent for flood control. We were left behind," he said. A concrete dam releases water into the Angat reservoir when heavy rains fall to prevent overflow. This exposes downstream communities, like Dela Cruz, to riverbank erosion. Dela Cruz said, "A state engineer told us that they would build a wall around us to protect us against disasters... But I hope the Government will act soon to prevent another major storm from hitting us." According to studies, floods in communities on the front lines of climate change are getting worse every year. This is despite the fact that the government has allocated 1.47 trillion pesos (25.23 billion dollars) over the past 15 years for flood mitigation and control programs. MISMATCH AND CORRUPTION Residents of another settlement in Sipat along the Angat River were happy to see construction begin in August this year for a riverbank structure that would help prevent flooding. They learned a month later that the project, worth 96 million pesos ($1.650 millions), had been completed by a different contractor in 2024, even though they had seen no work. This structure is among several "ghosts" or nonexistent projects for flood control in Bulacan that were marked as completed based upon a database released by the President. The lawmakers are looking into contractors and officials of the government who could have been involved with stealing funds intended for flood control projects which never materialized. Oscar Gabriel, the chief of Sipat Village in Plaridel, said, "I was shocked to learn about this ghost project and felt sorry for my community." "We were pleased that this project came our way, but were lied to and tricked." As of early this month, the project was still unfinished. According to a report by Pro-People Engineers and Leaders, a local non-profit that promotes equitable engineering, in Bulacan too, certain flood control projects are not aligned with the actual flood hazards. Jose Antonio Montalban is an engineer at Propel and a public information officer. He said that there was a feeling of misalignment, and he felt the DPWH did not prioritize flood hazard zones for flood control. Propel discovered that flood-prone areas of several towns in Bulacan were lacking in flood control infrastructure. This was based on the data of Project NOAH, the Philippines' disaster reduction and management program. According to the group 411 of the 668 projects for flood control in Bulacan do not fall within any flood-prone areas. Failure of Infrastructure Montalban noted that scientific assessments are needed to assess water resources and flood hazards, such as the hydrogeographical condition of a particular area. He claimed to have seen infrastructure built without any feasibility studies or other necessary studies. He said that flaws in engineering and design, which are linked to corruption and lack proper planning, can lead to disasters such as the collapse of seawalls and dykes. The burden on the communities affected by these disasters is great. The engineer explained that when a flood control system collapses, it has a severe and immediate impact on the safety of people. In a 2022 study, architecture scholars found that the Philippines' costly flood control structures are rendered ineffective if they are not completed or maintained. The study concluded that the best solutions for reducing the impact of flooding were non-structural. The report suggested a mix of structural and nonstructural solutions such as improving flood warning and forecasting systems, and assessing water and land resources. COMMUNITY BASED SOLUTIONS Greenpeace Philippines stated that corruption in flood infrastructure "cripples the ability of millions Filipinos to survive amidst an escalating global climate crisis". "Each year, flooding is causing more and more deaths, destruction of homes, and loss of livelihoods for millions Filipinos. Floods also resulted in massive economic losses to local governments and the national government," Greenpeace stated in a Sept. 8 statement. Propel calls for holistic flood risk mitigation, including community consultations and natural-based solutions. The Asian Development Bank has identified a few solutions, including restoring wetlands that absorb excess water, creating areas for water retention and revitalizing old river channels. Propel proposes a comprehensive drainage plan to replace the Philippines "fragmented" framework for flood risk management. Gabriel, in Sipat, said that transparency is crucial to public works. He said that flood control infrastructure was a good idea, particularly in areas susceptible to erosion.
-
France, Portugal and Spain will hold discussions on speeding up the power links
Portugal's Energy Minister said that France, Portugal, and Spain would hold discussions in the next few weeks about how to accelerate power interconnector project. The country is pushing to improve its electricity links after a massive blackout in April. The unprecedented power outage that occurred in Spain and Portugal in April highlighted the poor connections between the two countries to the rest Europe. Experts said the power outage could have been avoided if there were more interconnectors for exchanging power with other countries. Maria da Graca Carvalho stated in an interview that "after the blackout we have put additional pressure on the European Commission, France and Spain. As a result of this contact, the French government has requested a meeting." She stated that the meeting would be held in early October. Carvalho expressed her hope that France would be willing to accelerate projects, especially after the European Investment Bank announced it will support the Bay of Biscay Power Interconnector Project between Spain and France by providing 1.6 billion euro ($1.88 billion). She added that the environmental assessment of the Bay of Biscay Link must be completed before it can move forward. The French energy ministry has not responded to a comment request. The Spanish energy ministry refused to comment on this meeting. The EU is still investigating the cause of Iberia’s massive blackout that occurred in April. Grid operators and power plant operators are still arguing over who's to blame. The European network for transmission system operators ENTSO-E will publish a part of its report on Friday. It will confirm the conditions of the network at the time the outage started. The Bay of Biscay Link is expected to be completed in 2028. Spain and Portugal claimed that France was preventing the construction of new interconnectors. French grid operator RTE assessed two more links with Spain across the Pyrenees. However, the beneficiaries of the projects would be outside France. Iberia's electricity capacity is only 3% connected to European neighbors, which is far below the EU target of 15% by 2030.
-
Local media warns Namibia against buying a stake in De Beers
Local media reported that Namibia is considering whether to buy a stake in De Beers due to the continued decline of diamond prices, according the deputy prime minister. Anglo American has put the diamond giant up for sale as it restructures to focus its portfolio on iron ore and copper. Anglo announced on September 9th that it is pursuing a merger to create a heavyweight in copper. De Beers attracted at least six investors by June, and Angola’s state diamond company Endiama revealed on September 24 that it had bid to acquire a minority share in the company. Angola wants De Beers to be owned by a large group of countries, including Botswana and South Africa, where it operates. Namdeb Holdings produced 2.2 million rough diamonds carats in 2024. This is about 9% of the group's output last year. Natangwe Ithete is Namibia's deputy prime minister and also responsible for mining. He told The Brief, an online financial news publication, that the country must assess its diamond industry. Its prospects are dimmed by synthetics diamonds and a weak demand. "To be honest the diamond industry is in decline. It's no secret that the diamond industry is being affected and under pressure by so-called "lab diamonds", the synthetic diamonds," Ithete stated. He added, "We need to carefully study this to decide if it's worth pursuing." Botswana is also interested in acquiring a controlling stake in De Beers. It holds 15% of the company. Anglo American values De Beers around $4.9 billion after recording $3.5 in impairments for the last two years. However, current market pressures could lead to lower offers. (Reporting and editing by Nelson Banya, Emelia Sithole Matarise, and Nyasha Nyaungwa)
Le Parisien reports the death of South Africa's ambassador in France.
The South African ambassador to France was found dead on Tuesday at the base of the Hyatt Regenency hotel in Porte Maillot, west of Paris.
A spokesperson from the Paris Police declined comment. The South African Embassy did not answer any calls. The Hyatt's receptionist said that the hotel wouldn't comment.
According to the embassy website, Ambassador Nkosinathi Emmanuel “Nathi” Mthethwa served as South Africa's Minister of Arts and Culture from 2014 to 2019. He will add sports to his portfolio in 2019 until 2023.
Le Parisien reported that the ambassador's wife reported him missing after receiving a text from him which worried her.
A spokesperson for the South African foreign affairs department stated that they were "aware" of the unfortunate reports regarding Ambassador Nathi Mthethwa and would release a statement as soon as there was more official information. Reporting by Geert De Clercq; writing by Ingrid Melander and editing by Richard Lough.
(source: Reuters)