Connect with us

Markets

Africa Transparent in Military Spending

Published

on

Soldier
  • Africa Transparent in Military Spending

The level of transparency in military spending in sub-Saharan Africa is greater than previously thought.

A new report from the Stockholm International Peace Research Institute (SIPRI) carried out the survey between 2012 and 2017.

At least 45 of the 47 states surveyed published at least one official budget document in a timely manner online.

Contrary to common belief, countries in sub-Saharan Africa show a high degree of transparency in how they spend money on their military,’ says Dr Nan Tian, Researcher in the SIPRI Arms Transfers and Military Expenditure Programme.

‘Citizens everywhere should know where and how public money is spent. It is encouraging that national reporting in sub-Saharan Africa has improved.’

No transparency in Equatorial Guinea and Eritrea; fall in Botswana

While SIPRI’s study shows that there is generally a high degree of transparency in the military sector in sub-Saharan Africa, Equatorial Guinea and Eritrea have not published any official information on military spending since 2009 and 2003 respectively, and Botswana was one of very few states to show a deterioration in transparency.

Recently in Botswana, official budgetary reports have become increasingly difficult to obtain, there is a lack of a national defence policy and almost no government information or dialogue exists on issues such as arms procurement.

‘While these issues are worrying, the main cause for concern is the decreased public engagement on military-related matters,’ says Dr Tian.

Botswana had the third highest percentage increase in military spending between 2014 and 2017. Military spending grew by 60 per cent (or $182 million) in that period as part of several military procurement programmes involving France and Switzerland.

‘This military spending increase has occurred despite the fact that Botswana is located in one of the least conflict-prone areas of Africa and is one of the few states in sub-Saharan Africa to have never been involved in an armed conflict,’ says Dr Tian.

The Central African Republic (CAR) is one of the stand-out cases with substantial improvements in military sector transparency.

There is evidence of improved oversight and accountability in budget reporting, such as implementing an official budget formulation process and publishing budget execution reports both quarterly and biannually.

Although improvements are still needed in the areas of accessibility and disaggregation, military sector transparency has increased substantially.

‘The publication of accessible spending information is a major step towards greater transparency and accountability in the military sector,’ says Tian.

Unlike Europe and South America, there are currently no regional reporting mechanisms in place in sub-Saharan Africa for exchanging information on military expenditure between states.

The UN Report on Military Expenditures is the only international reporting system to which states in sub-Saharan Africa have agreed to participate.

In the period 2008–17, only five states in sub-Saharan Africa reported at least once, and no reports were submitted during the years 2015–17.

‘It is clear from SIPRI’s study that the lack of UN reporting is not due to a lack of information.

Rather, the challenge is to encourage countries to submit data to the UN,’ says Pieter Wezeman, Senior Researcher with the SIPRI Arms Transfers and Military Expenditure Programme.

‘Government transparency at the international level is key to reinforcing trust and encouraging dialogue between countries,’ says Ambassador Jan Eliasson, Chair of the SIPRI Governing Board and former UN Deputy Secretary-General.

‘Therefore, UN member states need to work together on implementing and improving reporting,’ he says.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Gold

Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin

Published

on

Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges

Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.

The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.

The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.

We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.

Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.

Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.

In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.

The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.

 

Continue Reading

Crude Oil

Oil Prices Extend Gains to $64.32 Ahead of OPEC+ Meeting

Published

on

oil

Oil Prices Rise to $64.32 Amid Expected Output Extension

Oil prices extended gains during the early hours of Thursday trading session amid the possibility that OPEC+ producers might not increase output at a key meeting scheduled for later in the day and the drop in U.S refining.

Brent crude oil, against which Nigeria oil is priced, gained 0.4 percent or 27 cents to $64.32 per barrel as at 7:32 am Nigerian time on Thursday. While the U.S West Texas Intermediate gained 19 cents or 0.3 percent to $61.47 a barrel.

“Prices hinge on Russia’s and Saudi Arabia’s preference to add more crude oil production,” said Stephen Innes, global market strategist at Axi. “Perhaps more interesting is the lack of U.S. shale response to the higher crude oil prices, which is favourable for higher prices.”

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together known as OPEC+, are looking to extend production cuts into April against expected output increase due to the fragile state of the global oil market.

Oil traders and businesses had been expecting the oil cartel to ease production by around 500,000 barrels per day since January 2021 but because of the coronavirus risk and rising global uncertainties, OPEC+ was forced to role-over production cuts until March. Experts now expect that this could be extended to April given the global situation.

“OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market,” ANZ said in a report.

Meanwhile, U.S crude oil inventories rose by more than a record 21 million barrels last week as refining plunged to a record-low amid Texas weather that knocked out power from homes.

Continue Reading

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Published

on

Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

Continue Reading

Trending