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IMF Concludes Staff Mission to Burkina Faso

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OUAGADOUGOU – An International Monetary Fund (IMF) team led by Ms. Laure Redifer visited Ouagadougou from March 14-26 to carry out discussions with the Burkinabè authorities on the first review of their economic and financial program supported by the IMF under the Extended Credit Facility (ECF) and a surveillance review required every two years.

The mission met with Mr. Luc-Adolphe Tiao, Prime Minister; Mr. Lucien Bembamba, Minister of Economy and Finance; Mr. Salif Kaboré, Minister of Mines; Ms. Clotilde Ki-Nikiéma, Minister of the Budget; and Mr. Charles Ki-Zerbo, National Director of the Central Bank of West African States, as well as other senior officials, parliamentarians, private sector and civil society representatives, and development partners.

At the end of the mission, Ms. Redifer, issued the following statement in Ouagadougou:

“Burkina Faso has experienced several years of rising and less volatile growth despite numerous shocks, thanks to strong economic and structural reform policies. Despite slight downward revisions, growth remains strong for the period 2013-14. Estimates for 2013 growth were revised to 6.6 percent, based on flat growth in grain production due to erratic rainfall. For 2014, growth is projected at 6.7 percent, and could be higher in case of good rainfall and strong domestic demand. These more cautious projections reflect the outlook for continued subdued international prices for gold and cotton, which are also expected to cause a further deterioration in external balances.

The deterioration would be worse in the absence of stronger exports of cash crops (cotton and sesame) and new minerals (zinc). In December, inflation was 0.5 percent, influenced primarily by lower food prices than a year previously, and should remain below 2.0 percent in 2014.

“Revenue collection was somewhat lower than anticipated in 2013. This, combined with delayed disbursements of external budget support, required additional domestic financing to maintain planned spending, as well as additional spending undertaken in the course of the year, including 1 percent of GDP in additional social spending undertaken in the second half of the year. Revenue shortfalls and additional transfers to public enterprises meant that two end-December 2013 targets of the IMF-supported program were not met, although all other quantitative targets were met and all structural reforms for end-January 2014 were implemented.

“For 2014, large spending increases linked to wage bill negotiations and additional social measures total approximately 2 percent of GDP. To finance these expenditures and maintain the fiscal deficit around 3 percent of GDP, the authorities are identifying spending offsets in other non-priority areas. In addition, they are considering other measures to ensure sustainability of the wage bill and the budget over the medium term, and preserve sufficient resources for valuable investments in people and infrastructure.

“The mission particularly encouraged the authorities to make more transparent budgetary transfers to support the operations of public enterprises facing fixed consumer prices. These untargeted subsidies constitute a growing share of budgetary resources that could be better directed to social spending and investment to create jobs and growth.

“In discussions with the authorities, the mission expressed concern that the new Mining Code had not been passed by Parliament by the end of the year. The mission strongly urged that the new Mining Code be formulated to ensure optimal resource mobilization needed to finance growth-enhancing investment and to ensure that the majority of Burkinabe – in this generation and in those to come — benefits from the extraction of these non-renewable resources.

“The mission had fruitful and collaborative discussions with the authorities on these and other topics. Discussions will continue in the coming weeks to finalize the policy framework for 2014 that would form the basis for completion of the first review of the program supported by the IMF Extended Credit Facility and regular surveillance under the IMF’s Article IV. “

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Tesla Aims for 2028 Commercial Production of Flying Car

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Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

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Marketers Eye Portion of FG’s Petrol Discount

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

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