The Gwadar Port project has an exceptionally important function not only for Pakistan but also for the rest of the region. Notably, the Chinese government has paid the bulk of the funds for the project execution. The state owned Frontier Works Organization (FWO) of Pakistan got financial support of $360 million from China for the expansion and up gradation of the Karakoram Highway in order to smooth and speedy transportation of the imported and exported goods through the Gwadar Port.
In the longer-run, the Gwadar port will exceptionally serve the Chinese interest in the region. To meet the energy needs essentially required for the functioning of industries, China’s oil and energy supplies travel from the gulf region those pass through a long route across the Strait of Malacca near the areas falling under the US influence. The current route of Chinese goods transportation takes more than 45 days to reach destined markets of Europe via the Middle East. Apart from this, the oil supplies reaching Chinese Eastern parts coast high along with additional time required to transport these supplies to other Western parts of China. Whereas, the oil supplies from Gulf countries would be transported through Gwadar and the Karakoram Highway with highly cheaper cost, safe transportation and in a very short time to the western parts of China. Likewise, the Chinese trade goods will also find an easier, shorter and secure route to Middle East bringing profitability greater than ever before. Once the project is functional, China will make huge revenues because with the completion of CPEC, the Chinese shipments will become able to reach the same destination just within 10 days period. The Gwadar Port will eventually create a nexus between China, Pakistan and the Central Asian countries with prospective revenues more than billions of dollars every year for all the countries.
The changing landscape of the region with prospectively abundant by putting the finances of various mega multinational companies such as Shell is working for setting up mega oil refinery. Moreover, the Arab Countries, stuffed with high revenues from the oil resources also rendering their plans for the port city. The business groups from the Gulf countries particularly the business enterprises from the UAE are particularly interested in investing $90 billion for constructing high standard recreational hotels and industrial units.
The real-time efforts by the China and Pakistan collaboration for the actual usefulness of the Port are mainly due to the duty free trade and the development of the Gwadar as a Free Trade Zone. These policies outstandingly appeal the investor around the globe particularly the neighboring Gulf countries moreover, also encourages the confidence of many multinational companies with their immense financial strength in this port that is already on the focus of the whole world. The greater economic opportunities are particularly related with the factors that most of the Central Asian states such as Tajikistan, Uzbekistan and Turkmenistan along with Afghanistan all are landlocked countries and they all will depend mainly over the Gwadar port for their trade and exports.
The Gwadar port has capability to handle ships of 50,000-deadweight tonnage (DWT) which enables the importers to ship maximum cargo on a single ship. The liquid bulk and the containers as the main contributors for the Gwadar Port that prospectively throughput 321 to 345 million tons. The flow of financial resources mainly contributing to the Chinese economy through the fully functional Gwadar and the CPEC estimated at $40 billion per annum by the year 2020 however, this in turn would also add a total of $8 billion revenue per annum in Pakistan’s economic resources. In addition, the narrow estimates of revenues through the exports from Gwadar Industrial Park would reach at $1.5 billion per annum. Given the need of high interface of Chinese and Pakistani business and investment, collaboration will immensely spur the economic activity by generating around 2 million additional employment opportunities for the people of both countries. The recent MoU signed between North South Transport Network (NSTN) Private Limited Pakistan and Gwadar International Terminal Limited (GITL) intend to setup three warehouses and storage of goods and containers with an initial level anticipation of each monthly volume capacity of 200-250 containers or 5,000-6,000 tons of cargo-total of 5% of China’s international cargo volume. The three transport and logistics subsectors could earn up to $6 billion per annum and attract creating 9,000 new enterprises and 400,000 additional jobs in the Port city.
Russian-Nigerian Business Council Reviews Performance
The Russian-Nigerian Business Council, with participation of a delegation from Abuja Chamber of Commerce and Industry and the Nigerians in the Diaspora in Europe (NIDOE), held its annual meeting, pledged to strengthen cooperation in various economic sectors after reviewing the performance for the year 2018.
The Russian-Nigerian Business Council was established to facilitate a constructive dialogue between Russian and Nigerian entrepreneurs interested in developing business cooperation between the two countries, and to enhance the role of the Russian business community in implementing state policy concerning the Russian-Nigerian economic ties.
The primary objective of the organization is to establish contacts and cooperation with non-governmental associations of Russia and Nigeria that have an active position on trade and economic cooperation between the two countries, and to provide information services and consulting support to Russian and Nigerian businesses. At present, the Business Council unites more than 30 Russian companies from various sectors of industry and trade.
The Vice-President of the Russian Chamber of Commerce and Industry, Vladimir Padalko, noted in his welcoming speech, that Nigeria is one of the three largest trade partners of Russia among sub-Saharan African countries and the positive trends emerging in Russian-Nigerian relations need to be developed.
And for developing this, it is necessary to give the domestic business a factual information, especially on business safety and profitability in Nigeria. By the end of 2018, trade with Nigeria reached almost US$600 million, but still seen as far below the full potential of trade and economic cooperation between the two countries.
Padalko, however, pointed to prospective areas including the exploration and production of hydrocarbons and solid minerals, the supply of engineering and chemical products, aircraft technology, cooperation in the nuclear industry, energy, and others.
Dmitry Osipov, Chairman of the Russian-Nigerian Business Council, General Director of PJSC Uralkali (this company is one of the world’s largest producers of potash fertilizers) stressed that the Council regards Africa in general and Nigeria in particular as a promising market.
“The Business Council provides the companies from both countries, regardless of their form of incorporation, with an additional opportunity to expand and diversify business cooperation, including joint investment and business projects. Uralkali is no exception. We see Africa as a whole and Nigeria in particular as a very promising market where we could implement several projects within the framework of ensuring global food security,” he said.
In this case, the interests of the Russian business and the Nigerian leadership coincided as both chose agriculture as one of the pivotal points of growth of the country’s economy.
Dmitry Osipov further informed the meeting that the Business Council includes representatives made of thirty-four Russian companies and practically each of them has its own business interests in Nigeria.
RUSAL is the largest Russian investor in this African country. LUKOIL investments in Nigeria now exceed US$450 million, and the company plans to bring them up to US$6 billion. Other well-known companies work in this market, including the largest Russian producer of agricultural machinery, Rostselmash.
However, the range of economic spheres can be extended. And here, the Russian-Nigerian Business Council should play its role, among them identifying the most important tasks, analyzing the existing problems and the development of a consolidated position of domestic business in the areas of trade and economic cooperation between the two countries. It also sees as important the organization of business interaction with representatives of Nigerian authorities, the establishment and expansion of business contacts with Nigerian entrepreneurs.
Abuja Chamber of Commerce President, Adetokunbo Kayode, traced the history of Russian-Nigerian trade relations, and objectively noted that much has changed. He said that the Federal Government of Nigeria has created a favorable business climate to attract foreign investors to Nigeria. Nigeria is developing rapidly. Now it is the largest market of the continent. The population growth presents a large market for consumer products. Therefore, the presence of Russian business in the heart of Africa is welcomed.
Mercy Haruna, Minister-Counsellor of the Nigerian Embassy in Russia; Rex Essenowo, Chairman of the Russian Branch of Nigerians in the Diaspora in Europe (NIDOE); Kirill Aleshin from the Institute of African Studies; Oleg Svistonov from Rusal Company in Nigeria and other speakers noted the importance of intensifying development of trade and economic relations between Russia and Nigeria.
The NIDOE-Russia was established as a forum for Nigerian professionals residing in Russian Federation to participate in the development of Nigeria. It works closely with the Presidency, the Federal Ministry of Foreign Affairs, the Senate’s Committee on Diaspora Affairs and the Embassy of the Federal Republic of Nigeria in Moscow.
The meeting finally made specific proposals on the work of the Business Council. An agreement on cooperation (that aimed at expanding and developing business cooperation between Russian and Nigerian entrepreneurs) was signed between the Russian Chamber of Commerce and Industry and the Abuja Chamber of Commerce and Industry.
E-commerce: Helping Djiboutian Women Entrepreneurs Reach the World
Look around any café, bus, doctor’s waiting room or university campus and you will see heads down, fingers tapping as people immerse themselves into their screens. Increasingly, people are using their devices for shopping, with retail sales via e-commerce set to triple between 2004-2021.
Although significant gender gaps exist with internet use, and although online sales are currently dominated by US-based tech giants, this growing e-commerce trend presents an interesting opportunity for small businesses, and more specifically women’s businesses in the Middle East and North Africa (MENA).
This is a region where women’s economic empowerment is a significant challenge. With a female labor force participation rate of 19 percent, women’s participation in firm ownership at only 23 percent, and a rate of only 5 percent women top managers of firms across MENA’s non-high-income countries, there is significant scope for improving women’s participation in business and employment.
Access to finance also remains a problem, where 53 percent of women-led small and medium enterprises (SMEs) do not have access to credit and 70 percent of surveyed MENA female entrepreneurs agree that lending conditions in their economy are too restrictive and do not allow them to secure the financing needed for growth.
Several obstacles stand in the way of women’s entrepreneurship and access to markets, such as social norms, family care duties, and transportation issues. Not being able to physically access markets to sell their goods or to participate in international trade fairs to market their products is also a challenge.
This is where e-commerce can play a role, allowing women to circumvent these obstacles and sell their products online. For this, they need to rely on e-commerce platforms connecting them to clients around the world, on performant and affordable logistics, and on reliable payment systems. Building the e-commerce ecosystem will be key to allowing women entrepreneurs to access markets and grow their business, thereby employing more women, as data shows that firms run by women tend to employ more women.
The situation for women in Djibouti is no different. Gender inequality in the labor market remains substantial, with less than a third of women between the ages of 15 to 64 active in the labor market. Unemployment among both genders is high, with a rate of 34 percent for men but it is considerably higher for women at close to 50 percent.
Djiboutian women are also at a disadvantage in terms of education and skills to access economic opportunities. Women in Djibouti typically run small and informal firms in lower value-added sectors, which are less attractive to creditors, thus impeding their access to finance. Women entrepreneurs face difficulties accessing finance and launching formal enterprises.
There are, however, opportunities to increase women’s economic empowerment. Over 57 percent of inactive women in Djibouti say that they do not work because of family and household responsibilities. However, they also indicated they are generally not discouraged or prevented from accessing training or work opportunities by male family members, and there are no legal barriers against women’s entrepreneurship.
Years of research have shown, that when women do well, everyone benefits. Research has found women tend to spend more of the income they earn on child welfare, school fees, health care, and food for their families. Empowering women is an important path to ending poverty.
It’s vital to enable women to participate constructively in economic activities in Djibouti. More entrepreneurship will allow Djibouti to benefit from the talents, energy, and ideas that women bring to the labor market.
To help address this issue, on November 13, 2018, the World Bank launched a $3.82 million regional project called “E-commerce for Women-led SMEs.” The project targets small and medium enterprises run or managed by women that produce goods marketable via e-commerce.
This project is at the crossroads of women’s entrepreneurship and the digital economy, which are two levers for the economic transformation of the region, and that it was very opportune to be able to launch it at the digital economy days of Djibouti.
The launch event took place with the participation of the Minister of Women and Family, the Minister of Economy, the Minister of Communication, the Head of the Women Business Association, and several Djiboutian women entrepreneurs.
The project will contribute to development of women’s entrepreneurship, digital commerce, and the economy in Djibouti and across the region. It will facilitate access for women-led SMEs to domestic and export markets through better access to e-commerce platforms. This will be done by training e-commerce consultants who, in turn, will train and help women-led SME’s access e-commerce platforms.
The project will also aim to ease access to finance for these SMEs by connecting them to financial institutions lending to women, particularly the IFC’s Banking on Women network. It will also work to create an ecosystem conducive to e-commerce by diagnosing regulatory, logistical, and e-payment constraints and supporting governments to lift them.
This launch comes following a successful pilot program in Tunisia, Morocco, and Jordan where women entrepreneurs were enabled to export handicrafts, organic cosmetics, and garments to several overseas destinations including Australia, Europe, and the United States.
The development of women’s entrepreneurship and the digital economy—including better access to domestic markets and exports—are essential levers for the development and economic diversification of the MENA region that the Women Entrepreneurs and Finance Initiative (We-Fi) e-commerce project strives to support. The Women Entrepreneurs Finance Initiative (We-Fi) is a collaborative partnership launched in October 2017 that seeks to unlock billions of dollars in financing to tackle the full range of barriers facing women entrepreneurs.
Getting around sanctions with crypto-rial
In April 2018, the Central Bank of Iran banned domestic banks and people from dealing in foreign cryptocurrency because of money laundering and financing risks.
However, the CBI decided to take a more moderate stance toward the digital money and blockchain technology following the imposition of a new round of U.S. sanctions, hoping that the digital technology would facilitate Iran’s international money transfers and let the country evade the sanctions.
Meanwhile, as an oil producer with an oil-reliant economy dominated by petrodollars, Iran settled on the plan to utilize cryptocurrencies and blockchain technology to make up for any drop in oil revenues due to the economic sanctions designed to cut its oil sales.
Moving on the same track as China, Russia and Venezuela, Iran also hopes that blockchainization of state-backed fiats would lead to the demise of the dollar and put an end to the tyrant U.S. policies.
Under the toughest U.S. sanctions ever and blacklisting of Iran from the Belgium-based international financial messaging system (SWIFT), the country’s plan to create an indigenous cryptocurrency is improving incrementally and thanks to highly dynamic nature of the cryptocurrency, it can act as a good means for Iran to skirt certain sanctions through untraceable banking operations.
The CBI has been working with domestic knowledge-based companies to develop a digital currency, called crypto-rial, supported by HyperLedger Fabric technology.
As reported, the Informatics Services Corporation, affiliated to the CBI but run by the private sector, has accomplished development of rial-based national cryptocurrency and when the CBI approves the uses of national cryptocurrency, it will be issued to financial institutions such as banks to test payments and internal and interbank settlements.
Transactions at the state-backed virtual currency are carried out on an online ledger called a blockchain, just the same as Bitcoin, but since the infrastructure is privately-owned it will not be possible for people to mine it.
In fact, Iran is mainly aimed at testing the potentials of blockchain and crypto technology in running its financial system, making banks able to use the tokens as a payment instrument in transactions and banking settlement at the first phase of the blockchain banking infrastructure. The country seems inclined to enjoy the new virtual currency businesses which includes little notice or footprint and has also prepared the required infrastructure for trading cryptocurrency in its stock exchange.
However, in spite of the CBI’s prohibition from trading cryptocurrencies, Iranians had commenced using cryptocurrency and Bitcoin mining for transactions with the rest of the world before its use was banned by the CBI in the country.
Individuals and businesses in Iran have had access to virtual currency platforms through “Iran-located, internet-based virtual currency exchanges; U.S. or other third country-based virtual currency exchanges; and peer-to-peer (P2P) exchangers,” according to reports.
But the U.S. embargo on a number of cryptocurrency exchange platforms, including Binance and Bittrex, restricted Iran from receiving services, however, no assets belonging to Iranians were blocked. U.S. sanctions have also ensnared Iranian bitcoin traders.
Furthermore, in December, the U.S. Financial Crimes Enforcement Network, known as Fincen, issued a warning in an advisory to assist U.S. banks and other financial actors such as cryptocurrency exchanges in identifying “potentially illicit transactions related to the Islamic Republic of Iran,” Bitcoin.com reported.
Fincen claimed that since 2013 Iran’s use of virtual currency includes at least $3.8 million worth of bitcoin-denominated transactions per year. The organization noted that “while the use of virtual currency in Iran is comparatively small, virtual currency is an emerging payment system that may provide potential avenues for individuals and entities to evade sanctions.”
Fincen believes that P2P cryptocurrency exchangers are a significant means through which Iran can dodge economic sanctions.
Following the Fincen’s announcement, the United States lawmakers introduced a bill (HR 7321) to impose more sanctions on Iranian financial institutions and the development and use of the national digital currency, Cointelegeraph reported.
The act prohibits transactions, financing or other dealings related to an Iranian digital currency, and introduces sanctions on foreign individuals engaged in the sale, supply, holding or transfer of the digital currency.
In the wake of the U.S. restrictions, thus, cryptocurrency trades are limited into Iran’s domestic market and not possible at the international level and Bitcoin is sold at a significant premium relative to the global average price in Iran.
Unfortunately, the basic and premier regulations of using cryptocurrencies have not been ratified in Iran and Iranians are obliged to refer to stock exchange shops abroad to do their crypto-transactions, most of which are American obedient to U.S. regulations and of course, sanctions.
To make using cryptocurrency and blockchain technology legal and official in the country, the Iranian government is drafting a policy framework by the help of the CBI and the Stock Exchange Organization which clarifies all its regulations and policies over cryptocurrency and mining.
Being legislated, it is believed that SWIFT can be replaced by the digital money, i.e. the rial-pegged national currency, and transactions would be done faster and at lower prices.
Due to a lack of required regulations, cargos of equipment for mining cryptocurrency are seized by the customs administration. They are said to be released as soon as the government legalizes cryptocurrency use in the country.
First published in our partner Tehran Times
Russian-Nigerian Business Council Reviews Performance
The Russian-Nigerian Business Council, with participation of a delegation from Abuja Chamber of Commerce and Industry and the Nigerians in...
The global public overwhelmingly favours multilateral cooperation
A global opinion poll published today by the World Economic Forum finds that a clear majority of people in all...
Another 170 migrants disappear in shipwrecks: UN call for an end to Mediterranean tragedy
The United Nations refugee agency, UNHCR, stated on Saturday that “no effort should be spared” in saving lives at sea, following...
Rio de Janeiro named as World Capital of Architecture for 2020
UNESCO’s Assistant Director-General for Culture Ernesto Ottone R, Thomas Vonier, President of the International Union of Architects (UIA), and Verena...
How the issues of migration and asylum are reshaping the politics of Belgium
It was a big surprise for many people seeing the Belgian government break up after intensive negotiations between all parties...
Tech Trends 2019: Beyond the digital frontier
Deloitte released its milestone 10th annual report on technology trends, “Tech Trends 2019: Beyond the digital frontier.” The report explores...
Nancy Pelosi and her dual approaches
In her remarks, the United States House Speaker Nancy Pelosi, asserted that Trump’s border wall campaign has nothing to do...
- Centre and Calm Yourself and Spirit on Restorative Yoga Energy Trail
- Queen Rania of Jordan Wears Ralph & Russo Ready-To-Wear
- OMEGA watches land on-screen in Universal Pictures’ new film First Man
- Experience the Prada Parfum’s Way of Travelling at Qatar Duty Free
- ‘Get Carried Away’ With Luxurious Villa Stays and Complimentary Private Jet Flights
Americas3 days ago
Will the world have to choose between US and China?
Defense3 days ago
Induction of Pakistan A-100 MLRS and Deterrence Equation of South Asia
Science & Technology2 days ago
Skills for the future: Learning to learn through technology is the new skills visa
East Asia2 days ago
Project of the century: How the Belt and Road initiative will impact the Eurasian region
Europe3 days ago
Negotiations on Kosovo 2019: Opportunities and Limitations for Russia
Russia2 days ago
US Blunders have made Russia the Global Trade Pivot
Russia2 days ago
Iran-Russia Cooperation Grows Beyond Syria
South Asia2 days ago
New Government in Bangladesh: Implications for China-Bangladesh Relations