Latest news with #industrial sector
Zawya
3 hours ago
- Business
- Zawya
The AI revolution won't wait – and neither should we
The AI revolution is advancing at light speed around the world, impacting every industry, driving economic growth, and reshaping how we live and work. In Africa, the pace of technological adoption and innovation is inspiring—as AI-powered tools are being applied to agriculture, healthcare, finance, and much more. It's certainly no surprise, as Africa has many of the key ingredients to be a global player in data and AI: a young, tech-savvy population rich in entrepreneurial talent; established and expanding digital ecosystems (just look at mobile money, pioneered in Africa and now a global phenomenon); and ample land for building infrastructure like data centres. All this AI-related potential, however, relies on data processing —and data processing relies on energy. And, on a continent that continues to struggle with delivering reliable and affordable power, the urgency of this critical issue cannot be overstated. For example, Kenya's industrial sector alone accounts for over 50 percent of total electricity consumption, highlighting how crucial reliable power is for manufacturing and large-scale economic growth. Both the United Nations and the African Development Bank Group highlight that access to reliable, affordable, and sustainable energy are the lynchpin to ushering in an age of industrialisation, economic growth, and prosperity across the continent. AI is clearly not a short-term craze; it's a game-changer for the long-term that demands immense processing power. That's why hyperscale data centres are being built at a rapid pace in North America, Europe, and Asia. Used to train large AI models and operate cloud services, these facilities don't just use power, they devour it. Operating 24/7, data centres require stable, high-capacity baseload energy to keep servers running, data flowing, and cooling systems functioning. Globally, the International Energy Agency reported that data transmission networks consumed 260-360 TWh in 2022, or to put another way, that is 1-1.5 percent of global electricity use. While renewables like solar and wind are critical for long-term sustainability, their intermittent nature means they can't shoulder the load alone, especially in regions with limited storage or grid flexibility. If Africa is to compete globally in AI and cloud computing, energy strategies must put reliability and scale at the centre of infrastructure planning. The solution lies in pragmatism and scalability. Africa needs a diversified energy strategy that combines natural gas with renewables. Gas-fired power offers a reliable, on-demand energy source capable of delivering the baseload power data centres require. It emits 50 percent less CO2 than coal and is more scalable than renewable solutions today. At the same time, renewables must remain central to the continent's energy future. Solar and wind can be deployed 'behind the meter'—directly on or near data centre sites—to supplement gas and reduce emissions. This hybrid approach allows for energy resilience while accelerating the transition to a cleaner energy mix. Innovative models are already emerging on the continent. Project Spark, for example, is combining a liquid natural gas (LNG) multiuser port in Walvis Bay, Namibia, with vast land resources to develop LNG infrastructure and power plant that can deliver dependable power throughout the region. With an eye toward scalability and speed, it shows how targeted energy development can catalyse digital transformation across the continent. This kind of forward-looking investment is what Africa needs more of—not just more power, but the right kind of power in the right places. Data centres don't just need megawatts; they need planning, precision, and policy alignment to succeed. And that success depends on a balanced energy strategy, one that prioritises reliability and scalability alongside sustainability. By 2026, half of the world's hyperscale data centres will be in North America, while Africa still accounts for less than 1 percent. Africa must confront these issues head-on, by building energy and data infrastructure, or risk missing the window to lead. The opportunity is there but it demands urgency and coordinated action. For the energy needed to power the future—not just homes and hospitals but also the AI tools that will shape the next century—governments, investors, and the private sector must align around infrastructure that supports long-term digital competitiveness. Building world-class data centres is not only about technology, it's about creating jobs, stimulating industrial growth, and reducing electricity costs through large-scale, dependable infrastructure that serves both economic and human needs. Just as Africa revolutionised global banking through mobile money, the continent is now on the cusp of leading the next wave of digital transformation. But that future depends on energy systems that are built to scale, built to last, and built with balance in mind. What it needs now is the will and effective collaboration between the governments and the private sector to build the energy infrastructure necessary to match its ambitions, including power plants with renewables, updated transmission lines, more undersea cables to increase our connectivity to the world, and efficient storage systems. By embracing a hybrid energy approach and making strategic decisions to fund investments like Project Spark, Africa can create an energy foundation that not only powers data centers, but powers opportunity—for innovation, jobs, and inclusive economic growth. The AI revolution won't wait. And neither should we. Herta von Stiegel is the Founder & CEO of Ariya Capital Group, Chairperson of Britam Asset Managers (Kenya) and Daniel R. Weber is a Communications Consultant for Ariya Capital Group. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
FDI in Oman's industrial sector grows by 27.5%
Muscat: The industrial sector in Oman witnessed significant growth in foreign direct investments during the first quarter of 2025, with a growth rate of 27.5 percent compared to the same period last year, bringing the total value to OMR 2.749 billion. The industrial sector topped the non-oil sectors in terms of targeted investment volume, with investments concentrated in promising sectors, most notably: renewable energy technology manufacturing, as part of the Sultanate of Oman's drive towards a green economy. The industrial sector in the Sultanate of Oman continues to grow as reflected in the effectiveness of government policies aimed at enhancing economic diversification and increasing its contribution to the gross domestic product (GDP), within the framework of Oman Vision 2040, which has placed industry among its priorities. The industrial sector witnessed positive and tangible developments in several activities during the first half of 2025. Expansion in productivity and increased regional and international demand contributed to the growth of a number of vital industrial sectors. Dr. Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said that the positive results achieved by the industrial sector are a direct reflection of the integration of national policies and incentive plans aimed at building a flexible and competitive production base through the implementation of the programmes and initiatives of the Industrial Strategy 2040, enabling quality investments, improving the quality of services in industrial and economic cities, and facilitating procedures for investors. He added that the industrial sector is a driver of economic growth, a lever for innovation, a recruiter of national talent, a promoter of food and medicine security, and an expander of local value chains in the national economy. For his part, Eng. Khalid bin Salim Al Qassabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, explained that industrial performance during the first half of this year clearly demonstrates the ability of Omani factories to achieve advanced growth rates and expand production and operations, despite regional and international challenges related to market and supply chain fluctuations. He stated that this positive performance was a direct result of the integrated efforts between the public and private sectors, benefiting from support and incentive packages, and reducing service costs. This was reflected in the increased rates of localising projects within industrial cities and free zones, and achieving advanced Omanisation rates in a number of industrial activities. He stressed that the Ministry of Commerce, Industry and Investment Promotion continues to support initiatives that enhance local added value and expand the national production base, in line with the objectives of the industrial strategy and "Oman Vision 2040" aimed at building a diversified and sustainable economy. For his part, Eng. Jassim bin Saif Al Jadidi, Technical Director of the Office of the Undersecretary for Commerce and Industry, emphasised that the industrial sector enjoys investor confidence, thanks to the continuous improvement of the business environment, the stimulating legislative structure, and the promising opportunities it offers in a number of industrial sectors through the development of new incentive policies, including: providing industrial financing, developing logistics services, localising advanced technologies, and stimulating international partnerships. The minerals sector is witnessing an expansion in production and export chains. The manufacturing sector witnessed a significant improvement in its performance during the first half of this year, driven by strong growth in the petrochemical and electrical sectors. In the building materials and construction sector, the iron and aluminum industries continued to achieve positive results and steady growth, while cement companies began to show signs of improved performance and reduced losses. Tile and ceramic factories showed signs of recovery, while glass companies still face operational challenges that the Ministry is working to address as part of its plans to develop the manufacturing industries. In the food industries sector, milling, soft drinks, and refreshment companies led the recovery scene, achieving significant profits thanks to improved operational efficiency and an expanded consumer base locally and regionally. In terms of foreign trade, Omani non-oil exports grew by 7.2 percent during the period from January to May 2025, reaching OMR 2.7 billion, reflecting the strength of Omani products in foreign markets. The United Arab Emirates topped the list of countries importing Omani products, with OMR485 million, an increase of 22.9 percent, followed by the Kingdom of Saudi Arabia with OMR451 million, an increase of 34.9 percent, and then the Republic of India with OMR280 million, an increase of 38.9 percent. These results reflect the diversity of the trading partner base, underscoring the importance of activating trade promotion tools and enhancing the industrial sector's readiness to enter new markets, particularly in Asia and Africa, which represent promising markets for Omani products. © Muscat Media Group Provided by SyndiGate Media Inc. (
Times of Oman
4 days ago
- Business
- Times of Oman
FDI in Oman's industrial sector grows by 27.5%
Muscat: The industrial sector in Oman witnessed significant growth in foreign direct investments during the first quarter of 2025, with a growth rate of 27.5 percent compared to the same period last year, bringing the total value to OMR 2.749 billion. The industrial sector topped the non-oil sectors in terms of targeted investment volume, with investments concentrated in promising sectors, most notably: renewable energy technology manufacturing, as part of the Sultanate of Oman's drive towards a green economy. The industrial sector in the Sultanate of Oman continues to grow as reflected in the effectiveness of government policies aimed at enhancing economic diversification and increasing its contribution to the gross domestic product (GDP), within the framework of Oman Vision 2040, which has placed industry among its priorities. The industrial sector witnessed positive and tangible developments in several activities during the first half of 2025. Expansion in productivity and increased regional and international demand contributed to the growth of a number of vital industrial sectors. Dr. Saleh bin Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, said that the positive results achieved by the industrial sector are a direct reflection of the integration of national policies and incentive plans aimed at building a flexible and competitive production base through the implementation of the programmes and initiatives of the Industrial Strategy 2040, enabling quality investments, improving the quality of services in industrial and economic cities, and facilitating procedures for investors. He added that the industrial sector is a driver of economic growth, a lever for innovation, a recruiter of national talent, a promoter of food and medicine security, and an expander of local value chains in the national economy. For his part, Eng. Khalid bin Salim Al Qassabi, Director General of Industry at the Ministry of Commerce, Industry and Investment Promotion, explained that industrial performance during the first half of this year clearly demonstrates the ability of Omani factories to achieve advanced growth rates and expand production and operations, despite regional and international challenges related to market and supply chain fluctuations. He stated that this positive performance was a direct result of the integrated efforts between the public and private sectors, benefiting from support and incentive packages, and reducing service costs. This was reflected in the increased rates of localising projects within industrial cities and free zones, and achieving advanced Omanisation rates in a number of industrial activities. He stressed that the Ministry of Commerce, Industry and Investment Promotion continues to support initiatives that enhance local added value and expand the national production base, in line with the objectives of the industrial strategy and "Oman Vision 2040" aimed at building a diversified and sustainable economy. For his part, Eng. Jassim bin Saif Al Jadidi, Technical Director of the Office of the Undersecretary for Commerce and Industry, emphasised that the industrial sector enjoys investor confidence, thanks to the continuous improvement of the business environment, the stimulating legislative structure, and the promising opportunities it offers in a number of industrial sectors through the development of new incentive policies, including: providing industrial financing, developing logistics services, localising advanced technologies, and stimulating international partnerships. The minerals sector is witnessing an expansion in production and export chains. The manufacturing sector witnessed a significant improvement in its performance during the first half of this year, driven by strong growth in the petrochemical and electrical sectors. In the building materials and construction sector, the iron and aluminum industries continued to achieve positive results and steady growth, while cement companies began to show signs of improved performance and reduced losses. Tile and ceramic factories showed signs of recovery, while glass companies still face operational challenges that the Ministry is working to address as part of its plans to develop the manufacturing industries. In the food industries sector, milling, soft drinks, and refreshment companies led the recovery scene, achieving significant profits thanks to improved operational efficiency and an expanded consumer base locally and regionally. In terms of foreign trade, Omani non-oil exports grew by 7.2 percent during the period from January to May 2025, reaching OMR 2.7 billion, reflecting the strength of Omani products in foreign markets. The United Arab Emirates topped the list of countries importing Omani products, with OMR485 million, an increase of 22.9 percent, followed by the Kingdom of Saudi Arabia with OMR451 million, an increase of 34.9 percent, and then the Republic of India with OMR280 million, an increase of 38.9 percent. These results reflect the diversity of the trading partner base, underscoring the importance of activating trade promotion tools and enhancing the industrial sector's readiness to enter new markets, particularly in Asia and Africa, which represent promising markets for Omani products.
Al Jazeera
6 days ago
- Business
- Al Jazeera
Fact check: Could Trump's trade tariffs pay off the US deficit?
One of the Trump administration's biggest tariff boosters, Commerce Secretary Howard Lutnick, recently said tariffs will not only energise the industrial sector in the United States but also help the government's finances. During a July 20 interview on CBS's Face the Nation, Lutnick told host Margaret Brennan that the US is collecting close to $30bn a month in tariffs. 'You got to remember – this is going to pay off our deficit. This is going to make America stronger,' he said. But the maths falls short. Multiplying the most recent month of US tariff collections by a full decade would not cover the 10-year costs of President Donald Trump's new tax-and-spending legislation, much less all federal deficits during that decade. The current tariffs are slated to increase on August 1, including levies ranging from 20 percent to 40 percent for 21 countries, based on what the Trump administration has said. An analysis by the Congressional Budget Office (CBO) – Congress's nonpartisan number-crunching arm – also projects that 10 years of tariff revenue increases under Trump will not pay for the added deficits from his bill or the cumulative deficits over the next decade. The projected added deficit from the bill is $3.4 trillion, on top of the existing projected deficit over the next decade of $21.8 trillion. 'I can't envision a scenario where the tariff revenues eliminate the deficit,' said Steve Ellis, president of Taxpayers for Common Sense, a group that tracks the federal budget. The White House did not respond to a request for comment for this story. How much is the US collecting from Trump tariffs? The federal government has been taking in higher tariff revenues under Trump's more aggressive tariff policies. Currently, the tariffs are a baseline 10 percent for all countries, plus additional tariffs on some products such as steel. Economists say consumers will ultimately swallow much of the tariff increases. Federal tariff revenue tracked by the Penn-Wharton Budget Model shows that, up to July 11, the federal government had collected about $100bn in tariffs so far this year. During the same period in 2024, before Trump took office, the federal government had collected less than $48bn in tariff revenue. In June 2025, the most recent monthly data available, the federal government took in $27bn in tariffs, according to the Treasury Department. A year earlier, that figure was $6bn. That's an increase of $21bn a month because of Trump's trade policies. If the government were to continue collecting tariff revenue at the June 2025 pace for a full decade – 120 months – that would produce $2.52 trillion in tariff revenue. That is in the ballpark of what the CBO published in June. Taking into account the potential economic shrinkage from higher tariffs, such as higher consumer prices, CBO projected that the boost in tariff revenue would reduce total federal deficits by $2.8 trillion over 10 years. How does this tariff revenue compare with the federal deficit? Without adding in the deficits from the bill Trump just signed, CBO's baseline projection for the cumulative deficits over the next 10 years is almost $21.8 trillion. That is about seven times the size of the CBO's projected tariff revenues over the same period. And the projected tariff revenue under Trump would not fully cover the added deficits just from the 'megabill' Trump signed. According to CBO estimates, the law Trump signed on July 4 will raise deficits by $3.4 trillion beyond their previous trajectory over the next 10 years, which exceeds CBO's tariff revenue projection. There is uncertainty about how much tariff revenue Trump's policies will generate, because he has frequently announced and then paused higher tariffs. 'It is hard to know what the end game is,' Ellis said. 'Is it high tariffs to generate revenue, which would reduce economic activity, or is it to rebalance the trade and eventually lower tariffs', and thus their revenue? The Committee for a Responsible Federal Budget, a fiscally hawkish group, has noted that Trump's tariff policies have been challenged in court, and the initial ruling by the Court of International Trade went against the administration. If the initial ruling is upheld on appeal, then Trump would lose his power to unilaterally enact many of the tariffs he has been imposing, and the new tariff revenues now being generated would largely dry up. And even if Trump's tariff powers are upheld on appeal, Trump's successor could reverse them by executive order, meaning any tariff revenues would cover the next four years, not the next 10 years. Our ruling Lutnick said tariffs are 'going to pay off our deficit'. Trump's on-again, off-again pattern for implementing tariffs makes estimates tricky. But two projections show that the Trump administration's tariff revenues would not cover the next 10 years of projected deficits. The CBO said it expects tariff revenues to reach $2.8 trillion over the next 10 years, while a back-of-the-envelope calculation based on the tariffs collected in June 2025 would reach $2.52 trillion. Both sums are only a fraction of the nearly $22 trillion in cumulative deficits projected over the next 10 years. We rate the statement False.
Zawya
16-07-2025
- Business
- Zawya
Iraq seeks investment for industrial projects
Iraq's plans to revive its industrial sector hinge on comprehensive legislative reform and targeted investment, the financial advisor to the Iraqi government said. Mudher Mohammed Saleh said the government is prioritising two core pillars: protective legislation to safeguard domestic production and the establishment of fully serviced industrial cities. 'Foremost is enforcing laws that shield local production from market-damaging dumping policies, especially through effective customs regulations,' he told Shafaq News Agency. Saleh stressed that infrastructure is key to enabling growth, calling for large-scale industrial zones equipped with a reliable power supply and modern logistics — efforts he said are closely tied to the country's broader Development Road initiative. He also urged the introduction of low-interest financing programmes to support small and medium-sized enterprises (SMEs), while calling for the streamlining of Iraq's bureaucratic licensing system. 'The current regulatory burden discourages both domestic and international investors,' Saleh warned. According to government figures, over 40,000 industrial projects have stalled in Iraq over the past two decades. The country's industrial contribution to GDP has dropped to below 1 per cent, while imports now account for more than 70 percent of manufactured goods — costing Iraq an estimated $35 billion annually. Saleh said that attracting foreign capital is essential to reversing this trend. 'International investors bring with them capital, experience, and efficient production technologies. Their integration into Iraq's industrial framework — governed by the investment law — offers a vital opportunity to re-energise the local market.' (Writing by Nadim Kawach; Editing by Anoop Menon)
