Travel News

By Levin Stamm and Bastian Benrath-Wright

Wealthy entrepreneurs have threatened to leave over inheritance tax proposals.

To escape a wealth tax hike in his homeland, real estate magnate Tord Kolstad left Norway two years ago. But the danger has followed him south.

Switzerland, Kolstad’s new home, is in the midst of a heated debate about inheritance taxes on the super-rich. The proposal — to take half of any passed-on wealth above 50 million francs ($59 million) — has prompted public warnings from business-owning multi-millionaires and billionaires that they’ll go elsewhere.

By John Ikani

Nigeria has been ranked as the ninth most attractive investment destination in Africa for 2024, according to the latest RMB Where to Invest in Africa report.

The comprehensive assessment evaluated 31 African economies across four key pillars: economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development.

With a score of 0.163, Nigeria secured a position within the top ten, though it trailed behind nations such as Seychelles, Mauritius, and Egypt.

Despite its status as Africa’s third-largest economy, Nigeria’s overall investment ranking fell short of expectations.

While the country boasts a substantial Gross Domestic Product (GDP) and a massive population of nearly 220 million people, its economic performance is tempered by relatively low per capita income and a lack of economic diversity.

The report highlighted Nigeria’s overreliance on oil exports as a significant constraint, impacting its overall economic complexity and consequently its investment attractiveness.

“Having topped the rankings as Africa’s largest economy by GDP for some time, Nigeria is now third, following a major currency devaluation.

However, Nigeria ends up further down the investability scoreboard than its sheer size may suggest, with an overall ranking of ninth on our model,” the report stated.

The report also acknowledged the challenging business environment in Nigeria, characterized by political instability. Nonetheless, it recognized the country’s progress in improving its ease of doing business, as evidenced by its ascent from 169th to 131st on the World Bank’s Ease of Doing Business index between 2016 and 2020.

Despite the challenges, Nigeria was categorized as a ‘Highflyer’ economy, a designation shared with South Africa, Egypt, and Ethiopia.

This classification recognizes these nations as large, established economies offering stability and diverse investment opportunities.

Other African countries were grouped into categories based on their specific strengths: ‘Cleared for Take-off’ for those with high growth potential, ‘People Potential’ for those with large, young populations, ‘Global Connectors’ for advanced economies with strong international presence, and ‘Low-Base Boomers’ for smaller markets with high growth potential but increased risk.

Isaah Mhlanga, Chief Economist at RMB, emphasized the complexities inherent in analyzing Africa’s diverse economies. “The richness of Africa’s diversity makes fully analysing its nuance and contrast a challenging task, but an important one when it comes to understanding the varied markets that make up this vast regional economy,” Mhlanga explained.

The 2024 RMB Where to Invest in Africa report aims to provide a comprehensive and actionable overview of the investment landscape across the continent, highlighting both opportunities and challenges.

Poppy Wood, EDUCATION EDITOR and Ben Butcher, DATA EDITOR

Student numbers poised to drop, raising fears for institutions heavily dependent on applicants from African nation

Universities heavily reliant on Nigerian students risk coming under financial pressure this year as a currency crisis continues to grip the west African nation.

Senior education sources say that while many universities are bracing for financial difficulty this year, there are particular concerns about those with high proportions of Nigerian students.

Nigeria has been grappling with one of its worst economic crises in years triggered by surging inflation that pushed the naira to an all-time low against the dollar.

It has stoked concerns that many Nigerian students may be priced out of British universities, raising fears for 20 institutions where they make up a tenth of all postgraduate students.

Figures released earlier this week by the Higher Education Statistics Agency (Hesa) showed UK universities have become increasingly dependent on Nigerian students, who now make up the third largest intake of foreign students after India and China.

In total, 72,355 Nigerian students were enrolled in UK higher education institutions last year – a 66 per cent increase on the previous year.

That figure is expected to drop dramatically this year following the collapse of the naira, coupled with restrictions on visas for the dependants of students introduced by the former Conservative government.

In total, Nigerian students made up more than 10 per cent of postgraduate students at 20 British universities in 2021/22, according to Telegraph analysis of data from the Higher Education Statistics Agency (Hesa).

Robert Gordon University in Aberdeen, where 29 per cent of postgraduate students were from Nigeria, had the highest proportion.

The University of Bradford had the second highest proportion, with 27 per cent, followed by Teesside, Hull and Sunderland, which all had more than 20 per cent.

Masters and other postgraduate degrees have traditionally been popular with overseas students, as they used to allow students to bring their family members with them.

Data from the Migration Observatory showed Nigerian students brought the highest proportion of dependants to the UK in 2022, with each student bringing an average of one family member with them.

The previous Conservative government introduced a ban on dependant visas for most postgraduate students in January in an attempt  to reduce overall migration. Former ministers said they were concerned the visas were being used as a “back door to work in the UK”.

The prospect of losing large numbers of Nigerian students has now sparked concerns of widespread finance difficulties across the university sector.

Fees from international students have largely propped up the sector in recent years as domestic tuition fees remain frozen at £9,250. Foreign student fees made up around a quarter of UK university income last year, according to Hesa – up from five per cent in the mid-1990s.

Home Office figures published on Thursday showed that between January and July this year, overall student applications were down by 16 per cent compared with the same period in 2023.

There was also a steep drop in students trying to bring family members with them to the UK, with 13,100 applications from dependants of students between January and July – 81 per cent fewer than in the same time frame last year.

September recruitment ‘a critical moment’

A leading education figure told The Telegraph that the latest recruitment cycle in September could prove a critical moment for some universities heavily reliant on Nigerian students.

Robert McNeil, of the Migration Observatory, said the Nigerian currency crisis probably played a part in the recent drop in international student visas.

“Recently there has been a big focus on recruitment of students from Nigeria, along with other countries like India,” he told The Telegraph.

“A situation where Nigeria’s currency is potentially devalued to where it was might be a contributing factor in declining numbers.

“There are trade-offs associated with any policy decision about how you control migration, but there are also external factors like currency crises that affect decision making [and the] flows of migration.”

Earlier this year, some Nigerian students already enrolled at British universities were thrown off their courses after struggling to pay tuition fees.

Teesside University students were blocked from their studies and reported to the Home Office after the value of the naira crashed and wiped out their savings. The university said it had “no choice” as failure to pay was a breach of visa sponsorship rules.

The Government is continuing to hold crisis talks over the state of the university sector, with 40 per cent of universities in England expected to run budget deficits this year. The Telegraph reported last month that some top institutions have begun to consider potential mergers with smaller, failing universities.

Many students in financial difficulty

Vivienne Stern, chief executive of Universities UK, said: “Many students from Nigeria have been facing financial difficulties following the currency crisis which began last year. In these very difficult circumstances for students, universities have sought to work with students to understand their circumstances and provide what assistance they can.

“This may include flexibility in terms of fee payment schedules, offering to defer enrolments or to refund deposits to students where prospective students were concerned that their studies were no longer affordable, and offering support and advice for those that were already in the UK.

“However, visa and immigration rules do mean that, unfortunately, universities may need to withdraw sponsorship where a student is unable to complete their studies – though this is always a last resort.”

A spokesman for the University of Sunderland said: “As evidenced in our most recent annual report, the university has maintained a secure and sustainable financial position over the last six years and we are working to continue this.”

A spokesman for Teesside University said: “Teesside University is a global institution with a thriving network of international partners, and recruits from a wide variety of countries. We are extremely proud of our diverse campus and vibrant student community and consistently rank as number one for overall student satisfaction in the International Student Barometer.

“Whilst there is no doubt that changes made to immigration policy by the previous government have had an impact on the appeal of UK higher education in the global market, Teesside continues to attract applications from talented students from across the world and remains in a robust financial position.

“We look forward to welcoming our new international and home students to Teesside University this academic year.”

The impact of Nigeria’s economic crises may have triggered financial pressure on 20 United Kingdom universities ahead of the Fall Admission cycle for local and international students in British tertiary institutions.

New Telegraph checks revealed that most universities in the UK are said to rely on Nigerian students heavily to pick up admissions, enrol for courses and pay a tuition fee of £11,000 at the minimum.

New Telegraph also learnt that recent figures released by the Higher Education Statistics Agency (HESA) showed UK universities have become increasingly dependent on Nigerian students, and there are 20 institutions where Nigerians make up a tenth of all postgraduate students.

Recall that Nigeria is currently experiencing its worst economic crisis in a generation, which is having a significant impact on current and prospective Nigerian students at some UK universities. Prior to this, it was learnt that the prospect of losing large numbers of Nigerian students had earlier sparked concerns of widespread financial difficulties across the university sector.

Earlier this year, some Nigerian students already enrolled at Teesside University were thrown off their courses after struggling to pay tuition fees. The students were blocked from their studies and reported to the Home Office after the value of the naira crashed and wiped out their savings.

The university said it had “no choice” as failure to pay was a breach of visa sponsorship rules. The annual inflation rate is now almost 34 per cent, partly driven by President Bola Tinubu’s dropping of a fuel subsidy and floating of naira on the currency market.

This exacerbated financial problem has raised the prospect of UK varsities losing large numbers of fresh Nigerian students, just as some Nigerian students already enrolled at British universities have been thrown off their courses after struggling to pay their tuition fees. In 2023, a total of 72,355 Nigerian students were enrolled in UK higher education institutions.

The figure is expected to drop drastically this year following the collapse of the naira and restrictions on visas introduced by the former Conservative government.

For instance, Scotlandbased Robert Gordon University in Aberdeen, where 29 per cent of postgraduate students were from Nigeria, had the highest proportion of students from the West African country.

The University of Bradford had the second highest proportion, with 27 per cent, followed by Teesside, Hull and Sunderland, which all had more than 20 per cent. Data from the Migration Observatory showed Nigerian students brought the highest proportion of dependents to the UK in 2022, with each student bringing an average of one family member with them.

The immediate past government in the UK introduced a ban on dependent visas for most postgraduate students in January in an attempt to reduce overall migration. Meanwhile, the UK’s wide range of research-intensive universities makes it an excellent choice for doctorate studies abroad.

However, it was gathered that an applicant would normally need a visa to study for a UK doctorate as an international student. PhD students are part of the UK’s points-based Student Route visa system (previously known as the Tier 4 Student Visa). Gaining such a visa is resources.”

As the country enters what some describe as a “season of political pontificating,” Adaramodu assured the public that the 10th Assembly remains a “responsible and responsive chamber.”

He reaffirmed the Senate’s commitment to upholding the economy and growth of Nigeria, insisting that it only receives what is constitutionally allocated to it and would never seek additional perks from other branches of government not usually complicated, provided you are a genuine student and have been accepted to study at a recognised UK university.

The UK’s student visa system explains how it works, who is eligible and how to apply. It also covered the new Graduate Route post-study work visa which will allow PhD students to remain in the UK for up to three years after completing their doctorates.

In October 2020, the UK Government replaced the previous Tier 4 (general) Student’s Visa with a new, points based student visa route. Some international students may still be able to study in the UK without a visa for their PhDs.

This may be the case if you have been granted asylum, recognised as a refugee or have lived in the country for an exceptionally long time (long residence).

BY  Humphrey Malalo

NAIROBI, Aug 12 (Reuters) – The Kenya Aviation Workers Union said on Monday that employees of Kenya Airways and Kenya Airports Authority would go on strike from August 19 over an investment proposal from an Indian company, Adani Airport Holdings, at the country’s main airport.

The strike would likely cause significant disruption to Kenya’s national carrier Kenya Airways and to operations of the Jomo Kenyatta International Airport in Nairobi, a key African travel hub.

“We shall reconsider our intention to engage in industrial action… only if the Adani Airport Holdings Limited’s deal is abandoned in its entirety,” said Moss Ndiema, head of the Kenya Aviation Workers Union.

Last month Kenya’s Airports Authority said the investment proposal from Adani Airport Holdings included a second runway at Jomo Kenyatta International Airport.

(Reporting by Humphrey Malalo; Writing by Hereward Holland; Editing by Alexander Winning)

KINSHASA, Aug 12 (Reuters) – Zambia will reopen its border with Democratic Republic of Congo after sealing it at the weekend due to protests, blocking a key export route for the world’s second largest copper producer, the two countries said in a joint statement on Monday.

The border, which was closed following an announcement by Zambian Trade Minister Chipoka Mulenga on Saturday, will reopen on Tuesday, according to a separate statement from Congo’s trade ministry.

Mulenga made the announcement after a Congolese ban on imported soft drinks and beer led to demonstrations by Congolese transporters in the border town of Kasumbalesa.

Congo on Sunday said talks had begun between the neighbouring countries to enable a rapid reopening of the border.

On Monday, it said it would authorise the import of goods covered under the ban whose importation had been initiated before the ban came into effect.

Congo was the world’s no. 2 producer and no. 3 exporter of copper in 2023, producing about 2.84 million tons.

Zambia is a key export route for the Central African country. Most of Congo’s copper exports pass through the town of Kasumbalesa and into Zambia.

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(Reporting by Benoit Nyemba, Yassin Kombi and Ange Kasongo; Writing by Portia Crowe; Editing by Sandra Maler)

Heathrow Airport has claimed it has suffered a 90,000 decline in passenger numbers on routes affected by a new £10-per-person government scheme.

Bosses described the electronic travel authorisation (ETA) system, which was introduced by the Conservative government in November 2023, as "devastating for our hub competitiveness".

The digital permits are required for nationals of seven Middle Eastern countries who do not have a visa or legal residence but wish to enter or transit through the UK.

The £10 fee applies to every affected traveller, including children and babies.

The programme is scheduled to be extended to travellers from most of the rest of the world this autumn.

But Heathrow has now urged the new Labour administration to reform the scheme for the good of the "whole UK economy".

It said in a statement: "The latest data following the introduction of the ETA shows that Heathrow has lost 90,000 transfer passengers on routes operating to and from the seven countries included in the scheme, since its introduction in 2023.

"This is devastating for our hub competitiveness. We urge government to review the inclusion of airside transit passengers.

"Every little bit of extra competitiveness that government can deliver for aviation will help deliver vital growth for the whole of the UK economy."

ETAs currently apply to affected non-visa nationals of Qatar, Bahrain, Kuwait, Oman, the United Arab Emirates, Saudi Arabia and Jordan.

They will be introduced for travellers from most other countries this autumn and for European nationals from early next year.

It came as Heathrow reported it had been used by a total of nearly eight million passengers in July, making it Europe's busiest airport in the first half of the year.

Bosses also said the west London airport had "performed well with no material impacts on flights" from issues such as the global IT outage or Just Stop Oil protests.

The airport announced last month that despite a fall in half-year revenues of 2.9%, it achieved an underlying profit of £178m, up from a £139m loss a year earlier.

A Home Office spokesperson said: "We are introducing ETAs to enhance border security and modernise the experience for travellers.

"The government is continuing to keep the requirement for transit passengers to obtain an ETA under review."

By Abdullateef Aliyu

Aviation analysts and stakeholders yesterday hailed the decision by the Minister of Aviation, Mr. Festus Keyamo, to demand a slot for Nigeria’s Air Peace to fly to the United Kingdom’s busiest and most primed airport, Heathrow.

They however called for the deployment of tact and diplomacy in handling the issue while advocating for the involvement of the Ministry of Foreign Affairs.

Keyamo had earlier at a conference in Lagos said he would write the UK authorities to allow Air Peace operate its Abuja-London flight to Heathrow as against Gatwick Airport where the airline operates to since it launched its flight from Lagos on March 31.

The minister argued that since the British carriers – British Airways and Virgin Atlantic – were given Nigeria’s primary airports – the Murtala Muhammad International Airport (MMIA), Lagos and the Nnamdi Azikiwe International Airport, Abuja; the UK government should also allow Air Peace to fly to Heathrow in line with the Bilateral Air Service Agreement (BASA).

While the Heathrow airport operates on slots sold to airlines, the Minister stated that the slot issue should not be “Used as an alibi to deny the existence of a Bilateral Air Services Agreement (BASA) between Nigeria and the United Kingdom, which hallmark is based on the principle of reciprocity.

“Therefore, it is necessary for Nigerian designated carriers to enjoy similar reciprocity that British carriers are enjoying. It is highly unfair on the side of the British authorities and a discredit to the Nigerian authorities and the Nigerian nation as a whole, for slot allocation to Nigerian carriers to be an issue at all times. We feel totally betrayed by the British authorities for not reciprocating the good gesture of the Nigerian State and its people,” Keyamo said.

A source in the Ministry of Aviation confirmed to our correspondent that the letter has been dispatched through the British High Commission in Nigeria while a response is being awaited.

Keyamo had threatened to bar BA and Virgin Atlantic to other secondary airports in Nigeria if the request of Air Peace was not met.

Though Nigerian airlines had operated to Heathrow in the past, the last carrier, Med-View, which flew to London, was also allocated Gatwick over issues of slot.

Daily Trust reports that London Heathrow (LHR), the busiest airport in the UK, operates on slot allocation to airlines and it operates one of the most expensive slots in the world with airlines paying as much as $50m to buy a slot.

The most sought-after morning slot costs as much as $75m.

But stakeholders say the slot system should have put into consideration the existing BASA with Nigeria which recognises the doctrine of reciprocity.

General Secretary of Aviation Roundtable (ART), Mr. Olumide Ohunayo described the minister’s move as courageous. However, he called for caution and warned him to be wary of “saboteurs” within the industry who might want to frustrate his efforts.

“Again, there should be some tact in going about this process in the sense that the Bilateral Air Service Agreement (BASA) did not specifically mention an airport. It only mentioned cities and not airports that were not included. If that was included then it becomes mandatory…

“We have saboteurs within Nigeria. It happened before when BA was taken to court over BASA issues and how some Nigerians rose up in defence of BA. This is a fight you have to be technical about. I think they should do more of body language in squeezing those arrival time, destination terminals for British carriers. When you begin to squeeze little by little the message would be clear.

“While we are fighting for this, we must also prepare ourselves so that we would not falter with the timing. The integrity of the departure and arrival must be sacrosanct not because of the airport but also because of the service providers who are all timed and have other services to provide for other airlines.”

President of Aircraft Owners and Pilot Association (AOPA), Dr. Alex Nwuba also called for diplomacy in handling issues and said the Foreign Affairs Minister must be involved.

“This thing is better handled quietly. Diplomacy is always the best way. The Foreign Affairs should say, ‘Guy, we have an agreement, how do we sort this issue.’

He said Heathrow is not totally out of the hand of the UK but was given out to manage on behalf of the government.

“We entered an agreement that we will give you our grade one airport and you would give us your grade one airport. You can’t come back and tell us that the person that is running it does not have space…,” he said.

By Randy Thanthong-Knight

(Bloomberg) -- It’s getting harder for young Canadians to find a job. A post-pandemic influx of cheap foreign workers in restaurants and retail stores may be making it tougher.

Michelle Eze started actively searching for work around Toronto in October, just as the youth unemployment rate in Canada began to surge. The 22-year-old public-policy graduate sought out teaching and restaurant service jobs to help pay the bills and support her parents, but struck out.

“I was struggling. I was searching on Indeed, looking everywhere, asking friends and like — nothing,” she said. “That was really demoralizing because I had the determination but I was seeing no results.”

Eze is still searching. Her difficulty underlines a disconnect in Canada’s labor market: Entry-level jobs for students and recent graduates are much harder to find as the economy weakens, yet the country has also imported hundreds of thousands of temporary foreign workers for jobs, many of them in the food and retail sectors.

That’s contributing to a soaring rate of youth unemployment. Two years ago, the jobless rate for people 15 to 24 years old was a little over 9%. Now it’s 14.2% — the highest level in more than a decade outside of the Covid-19 pandemic.

For younger immigrants — those who’ve landed in Canada in the past five years — the unemployment rate is around 23%.

An analysis of government data by Bloomberg News shows explosive growth in the number of temporary foreign workers in food and retail over the past five years. The number of them approved to work in those two sectors jumped 211% between 2019 and 2023.

The rapid surge is partly fueled by the increase in demand for immigration to Canada after pandemic travel restrictions eased. Many newcomers saw these temporary jobs as a step to help gain permanent residency, and many employers relied on the program when the economy reopened.

Business lobby groups have argued the temporary foreign worker program — originally designed to help farmers deal with seasonal labor needs — is critical to fill vacant positions.

But in cities like Toronto, the state of the labor market is undermining their case. Canada’s largest metropolis is hardly short of young, available workers. The region had more than 120,000 unemployed people aged 15 to 24 as of July — an increase of 50% in just two years, according to Statistics Canada data.

“We’ve noticed more youths are coming to us partially because of the influx of new Canadians,” said Timothy Lang, chief executive officer of Youth Employment Services, which helps young Toronto residents get training and find jobs. “Sadly, some companies will take people with more experience so they’re knocking some youths out.”

That’s the experience of 17-year-old Alexander Clarke, who has spent months applying to grocery stores, fast-food joints and clothing shops, but never heard back from any employers.

“I think they’re looking more for older people these days,” Clarke said. “A lot less youth are getting employed — like you see a lot of older people working at places, not people my age.”

In response to public pressure, Prime Minister Justin Trudeau’s government has rolled back some of its pandemic-era measures aimed at alleviating labor shortages. For example, it has curbed the number of hours that international students are allowed to work, and it’s promising tougher enforcement against businesses that abuse the system for hiring temporary foreign workers.

Still, under current rules, companies are permitted to bring in foreign workers even in areas with elevated and rising unemployment.

Canada allowed employers to bring in roughly 240,000 workers under the temporary foreign worker program last year, nearly double the amount in 2019. About a fifth of those positions were in jobs most common in restaurants and retail stores, such as cooks, food counter attendants and cashiers.

The share of these jobs grew significantly from before the pandemic, while the proportion of foreign workers doing agricultural work declined to 41% last year, from 54% in 2019.

Collectively, major restaurant and retail chains make up the biggest group of employers using the program to hire these types of workers, but their reliance on the system is impossible to quantify due to the rampant use of numbered companies in government data.

In Ontario alone, Tim Hortons hired at least 714 temporary foreign workers last year, up from 58 in 2019. But some 92% of those positions in 2023 were listed under holding companies that didn’t bear the franchise name.

The use of the program may not only be making it harder for youths to get jobs but also suppressing wages for the entry-level positions where they compete with foreign workers.

“In a sense what we’re doing is we’re subsidizing those activities by allowing them to bring in low-wage workers rather than make them pay a competitive wage,” said Christopher Worswick, economics department chair at Carleton University in Ottawa, who co-wrote a peer-reviewed report showing firms prefer temporary foreign workers due to their higher efforts for the same wage.

“Wages should go up until labor supply equals labor demand,” Worswick said. “Labor shortages should be filled by wage increases. The only thing stopping a wage increase is the profitability of the firm.”

Aug 13 (Reuters) – Africa’s top public health body declared what it termed a “public health emergency of continental security” on Tuesday over an outbreak of mpox that spread from the Democratic Republic of Congo to neighbouring countries.

Mpox is transmitted through close contact and causes flu-like symptoms and pus-filled lesions. Most cases are mild but it can kill.

The outbreak in Congo began with the spread of an endemic strain, known as Clade I. But the new variant, known as Clade Ib, appears to spread more easily through routine close contact, particularly among children.

The Africa Centres for Disease Control and Prevention (Africa CDC) warned last week that the viral infection’s rate of spread was alarming.

It said that over 15,000 mpox cases and 461 deaths were reported on the continent this year so far, representing a 160% increase from the same period last year.

Mpox has been endemic in parts of Africa for decades after it was first detected in human in the Democratic Republic of Congo in 1970.

A milder version of the virus spread to over a hundred countries in 2022, largely through sexual contact, prompting the World Health Organization (WHO) to declare a public health emergency of international concern, its highest level of alert.

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The WHO ended the emergency 10 months later, saying the health crisis had come under control.

(Reporting by Jessica Donati; Editing by Alex Richardson and David Holmes)