Latest news with #Verster
Global News
5 days ago
- Business
- Global News
New Metrolinx CEO contract includes potential 6-figure bonus
New Metrolinx CEO Michael Lindsay could earn just over $820,000 in the next year between performance bonuses and his salary. Details of Lindsay's contract, posted through an Order in Council, show he will receive a base salary of roughly $687,000 per year with a performance-based bonus of up to 20 per cent. It is not clear exactly what Lindsay would need to do in a year to unlock his entire bonus. If he were to achieve it, he would take home a grand total of $823,879.20. That would be a little less than the $883,990.63 former CEO Phil Verster earned in 2024, his final year at the helm of the provincial transit agency. Verster was also given a vehicle allowance of roughly $12,000 despite not owning a car. That perk has not been extended to Lindsay. Story continues below advertisement Lindsay joined Metrolinx from Infrastructure Ontario, another provincial agency. There, he fronted several controversial government announcements like the closure of the Ontario Science Centre, as well as overseeing a massive portfolio of public land and construction projects. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy He has run Metrolinx as an interim leader since Verster left and officially took on the role full-time on July 1. 'I am humbled and honoured to have been appointed as President and Chief Executive Officer of Metrolinx,' Lindsay said in a statement distributed by Metrolinx. 'As a proud resident of Toronto, and a lifelong transit commuter, I understand the importance of connecting the region and building the transit network communities need and deserve.' The Ministry of Transportation said Lindsay's salary was decided by the chair of Metrolinx's board, and bonuses would only be given for hitting certain targets. They said the bonuses written into Lindsay's contract followed the same structure as Verster's. Verster's tenure at the top of Metrolinx was plagued by delays to major transit projects like the Eglinton Crosstown LRT, which still does not have an official opening date. Ontario NDP shadow public transit minister Doly Begum said she was concerned Lindsay would face similar struggles. 'The former CEO collected an annual salary of almost a million dollars of taxpayers' money and what did we get for it? Confusion and more delays,' she said in a written statement. Story continues below advertisement 'We need full transparency and clear timelines. That's the only way we can make sure that another CEO doesn't get away with a huge cheque while front line workers get laid off.'
The Citizen
17-06-2025
- Business
- The Citizen
China's clever trade deal with Africa – removal of tariffs on most goods
While the US is alienating other countries with high import tariffs, China is making friends in Africa by scrapping most import tariffs. While the rest of the world is sidetracked with the unrest in the Middle East and US President Donald Trump's on-again, off-again import tariffs, China made a clever trade deal with Africa to remove tariffs on most African exports. This not only boosts its trade potential, it also expands Beijing's influence. Brendon Verster, economist at Oxford Economics Africa, says as the US retreats and turns its focus inward, China's economic incentives deepen ties, reinforcing it as Africa's key partner. 'This shift may weaken the US's leverage and reshape global alliances in China's favour, despite risks from its slowing economy.' Last week, China announced plans to eliminate all tariffs on imports from 53 African sovereign states it maintains diplomatic ties with. Eswatini is the only exception due to its recognition of Taiwan's sovereignty. The Changsha Declaration on Upholding Solidarity and Cooperation of the Global South advances the full implementation of the Beijing Declaration reached in September 2024, which in turn aims to 'jointly build an all-weather China-Africa community with a shared future for the new era,' Verster says. 'The move can be considered a push by Beijing to capitalise on the chaos caused by Trump's 'Liberation Day' tariffs. Although the agreement text does not mention him by name, it does note that the parties agree that the frequent occurrence of unilateralism, protectionism and economic bullying has created severe difficulties for the economic and social development and the improvement of livelihood in African countries and other developing countries.' ALSO READ: China risks its moral high ground in escalating trade tensions China rather wants to resolve disputes Verster points out that in addition, the declaration states that the parties 'call on all countries and the US in particular, to return to the right track of resolving trade disputes through consultation based on equality, respect and mutual benefit. 'The new zero-tariff pledge marks a pronounced expansion of China's previous trade policy announced last year, which removed tariffs on imports from 33 countries globally that are deemed the least developed. 'Moreover, the continent's most underdeveloped economies, which already have full access to the Chinese market, will receive additional assistance to bolster their exports. These include measures on market access, inspection and quarantine and customs clearance.' Before the latest announcement, Chinese trade already dominated across Africa. Among the continent's major economies, the Asian giant outstrips the US as an export destination by a significant margin, especially in the DRC, accounting for 66% of goods exports, Angola (46.4%), Zimbabwe (20.1%) and Zambia (18.7%). ALSO READ: China challenges Trump's economic 'bullying' US ahead of China in some African economies However, Verster says, the US is still ahead of China in several economies, such as in Lesotho, Mauritius, Morocco, Egypt, Nigeria and Kenya. He also points out that apart from trade, China is almost on par with the US in terms of foreign direct investment (FDI). According to the United Nations Conference on Trade and Development's 2023 World Investment Report, FDI inflows to Africa from the US totalled $45 billion in 2021, down from $50 billion in 2017. FDI inflows from China were recorded at $44 billion in 2021, slightly higher than the $43 billion registered in 2017. This chart shows how China's trade deal solidifies an already solid position as Africa's key trade partner: Source: International Trade Centre, *Includes Hong Kong ALSO READ: SA eyes boost in trade with China at November expo China's removal of tariffs has implications for power dynamics with US Verster says China's step to remove all tariffs on most African goods has important implications for the continent as well as the evolving power dynamics between the US and China. 'From a geopolitical standpoint, China's move is a long-term bet on African alignment and growth as well as a deepening of its commitment to South-South cooperation. 'The US has been moving away from these policies and China's removal of tariffs is part of a wider architecture that also includes concessional loans and large-scale infrastructure spending. As Washington turns its focus inward and its engagement in Africa becomes increasingly transactional or conditional, Beijing is stepping in to fill the void with consistent and unconditional economic incentives.' He says China is entrenching its position as Africa's most significant economic partner and expanding the continent's export potential. 'The strategic move significantly boosts China's soft power and trade leverage, especially given the US's decisions to tighten trade restrictions and cut development funding. 'African countries stand to gain from potential export diversification, increased foreign exchange earnings and closer integration into global value chains. Still, the Chinese economy is losing steam, which could weigh on its import demand.' ALSO READ: China welcomes Cyril – and tightens ties with 8 agreements Africa to become major player in critical minerals market Verster says Africa is also poised to become a major player in the critical minerals market as the world shifts to sustainable practices. 'Beijing's move could be considered an attempt to keep the continent close as the scramble for critical minerals ramps up and China seeks to assert its dominance over these supply chains.' As China's trade diplomacy cultivates closer bilateral ties, the broader implication is a gradual decline in US influence in Africa. Verster believes that African leaders might be more inclined to support China's viewpoints on the global stage, which would diminish Western influence. 'Furthermore, Western attempts to establish international trade regulations or impose sanctions may lose their effectiveness as African economies become more integrated with Chinese supply chains and trade networks. 'In short, Beijing's zero-tariff policy is not just a trade initiative but a strategic manoeuvre to reshape its alliances with Africa, reduce the US's leverage and embed China more deeply in the African continent's economic and political future.'
Yahoo
06-02-2025
- Business
- Yahoo
ArcelorMittal Hands South Africa Responsibility for Mill Rescue
(Bloomberg) -- ArcelorMittal SA said it's up to South Africa to keep crucial steel mills open and questioned the government's industrial policy. Citadel to Leave Namesake Chicago Tower as Employees Relocate State Farm Seeks Emergency California Rate Hike After Fires Transportation Memos Favor Places With Higher Birth and Marriage Rates San Francisco Wants Wealthy Donors to Help Fix Fentanyl Crisis NY Transit Advocate Says Billions in Tax Hikes Would Fix MTA The company's South African unit has negotiated with state officials since Jan. 6, when the firm said it planned to close three units including two mills that the country's automotive, mine equipment and steel-fabrication industries depend on. ArcelorMittal South Africa Ltd., or AMSA, on Thursday delayed the closures by a month and said it expects to make a final announcement toward the end of February. 'We are not going to carry any further losses on that business,' Chief Executive Officer Kobus Verster said at the company's headquarters in Vanderbijlpark, south of Johannesburg. 'The discussions are active, they are daily. They are actively focused on trying to find a solution.' The one-time state steel business bought by billionaire Lakshmi Mittal's company in 2003 has effectively thrown down the gauntlet to the government to address complaints ranging from high power and transport costs, to what it sees as inadequate tariffs on imported steel and unfair support for rivals. 'Electricity is too expensive in South Africa, rail tariffs are too expensive in South Africa, safeguards are not good enough, the scrap discount given to competitors is unfair,' Verster said. 'You need to address the structural issues.' The company may need a rights issue to bolster its finances, Verster said, prompting its stock to drop as much as 17% to 93 South African cents in Johannesburg, the lowest since December 2023. It traded at 1 rand at 3:28 p.m. The closure announcement drew pleas from the industries to intervene. They argue the plants, which also supply construction steel, are key to the health of their own operations because imports would be too costly and less reliable. Verster said the Vereeniging and Newcastle mills, which indirectly support more than 100,000 jobs, supply between 350,000 tons and 400,000 tons of steel products that cannot currently be manufactured by any other companies in South Africa. While that's a fraction of the mills' total production, it consists of the flexible spring steel needed for automotive components and the hollow variety used to make hand-held mining drills essential to South Africa's deep-level precious metals operations. It's also key to the 4.8 trillion-rand ($258 billion) infrastructure drive championed by President Cyril Ramaphosa. Key to ArcelorMittal's discontent is a government policy that gives its rivals — who use steel scrap rather than the iron ore that AMSA consumes — a 30% discount on the international price of their main raw material. Industrial Dilemma Also, the government's Industrial Development Corp., despite being AMSA's biggest shareholder after its parent company, has buoyed a number of its rivals by investing in them. Now, the IDC has provided AMSA with an emergency loan of 380 million rand and is in talks about backing the potential rights offer and offering further financial support. 'The fact that the IDC has a dilemma is their problem — they have to solve it,' Verster said. 'We will not take any more financial risk.' The IDC, which owns about 8% of AMSA, didn't respond to a request for comment. Newspaper reports about a financial bailout from the government were inaccurate and AMSA hadn't received any 'serious' offers for its assets, Verster added. 'We don't need to spend time on issues where there is no funding behind them and there is no credible offer,' he said. The company, which has annual revenue of about 40 billion rand, now has a market value of just 1.2 billion rand, down from a peak of 116 billion rand in 2008. Verster laid out an array of investments the company could pursue once it stops hemorrhaging money from the unprofitable units, one of which has run for more than a century. They include a 1.5-million-ton-per-year electric-arc furnace, a 200-megawatt solar-power plant to reduce electricity costs and reopening the idled Thabazimbi iron-ore mine in 2027. The company could also start producing so-called green direct-reduced iron for export from its shuttered Saldanha steel milling using hydrogen by 2030, he said. 'Without the longs, the business is in good shape,' Verster said, using an industry term to refer to the types of steel the struggling mills produce. Sign up here for the twice-weekly Next Africa newsletter Orange Juice Makers Are Desperate for a Comeback Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Inside Elon Musk's Attack on the US Government Amazon and SpaceX Want In on India's Satellite Internet Market Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P.
