HARARE, ZIMBABWE — Officials in Zimbabwe, which is facing a growing problem of substance abuse — especially among unemployed youth, say arrests have surged in 2024, with close to 2,400 people taken into custody so far.

Officials say economic difficulties are hampering efforts to curb the problem.

Zimbabwean Information Minister Jenfan Muswere said the Cabinet recently approved a review of fines ranging from $30 to $400 or imprisonment not exceeding two years for any business convicted of selling illicit drugs.

He said that in addition to the 2,373 people who have been arrested in 2024, 48 bases in six provinces have been raided and destroyed.

“The fight against the scourge of drug and substance abuse will continue across all provinces of Zimbabwe,” Muswere said. “Religious organizations have embraced the fight against drug and substance abuse through campaigns encouraging particularly the youths to live drug-free lives.”

Oscar Pambuka, who was recently released from jail after serving time for drug use, said more tools are needed to fight the vice, such as creating more jobs.

He said he started taking crystal methamphetamine after he and his wife divorced and he had no job.

“I began to associate with the new characters,” Pambuka said. “They became my new friends. And within those associations, I fell in love with a drug called crystal meth. … It used to make me feel comfortable. It used to give me temporary joy.”

But his drug use led to losing financial resources and his networks, he said, because many people don’t want to associate with drug users. He also lost weight — 20 kilograms (44 pounds) between 2016 and 2020 — although he started regaining some in jail.

“I thank God for the incarceration,” he said.

Officials say Zimbabwe’s economy has been hurt by U.S. sanctions against the government for alleged corruption and human rights abuses in the early 2000s.

Critics attribute the economic decline to corruption and bad policies by Harare.

Inflation is running at an annual rate of 55% — lower than the hyperinflation that plagued Zimbabwe in the past but still high enough to make the cost of living difficult for most ordinary Zimbabweans.

Representatives from government and United Nations agencies in Zimbabwe are expected to meet with President Emmerson Mnangagwa in Harare this Wednesday to devise a national plan on drug and substance abuse.
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BEIJING — Beijing wants the EU to scrap its preliminary tariffs on Chinese electric vehicles by July 4, China’s state-controlled Global Times reported, after both sides agreed to hold new trade talks. 

Provisional European Union duties of up to 38.1% on imported Chinese-made EVs are set to kick in by July 4 while the bloc investigates what it says are excessive and unfair subsidies. 

China has repeatedly called on the EU to cancel its tariffs, expressing a willingness to negotiate. Beijing does not want to be embroiled in another tariff war, still stung by U.S. tariffs on its goods imposed by the Trump administration, but says it would take all steps to protect Chinese firms should one happen. 

Both sides agreed to restart talks after a call between EU Commissioner Valdis Dombrovskis and China’s Commerce Minister on Saturday during a visit to China by Germany’s economy minister, who said the doors for discussion are “open.” 

China’s Global Times, citing observers, said the best outcome is that the EU scraps its tariff decision before July 4. 

But the Commission, analysts and European trade lobby groups stressed that talks would be a major undertaking and China would need to come willing to make major concessions. 

“Nobody will dare to do this now. Not before the elections in France,” said Alicia Garcia Herrero, senior fellow at Bruegel, an influential EU affairs think tank, on whether the planned curbs could be dropped. 

“The Commission can’t change a decision it has been pondering for months on months on months,” she added. “Yes, China is putting pressure on the member states, but they would need to vote with a qualified majority against the Commission.” 

The tariffs are set to be finalized on Nov. 2 at the end of the EU anti-subsidy investigation. 

“The EU side emphasized that any negotiated outcome to its investigation must be effective in addressing the injurious subsidization,” a Commission spokesperson said on Monday. 

The Chinese commerce ministry did not immediately respond to a Reuters request for comment. 

Talks are a ‘good sign’  

Siegfried Russwurm, head of Germany’s biggest industry association BDI, said it was a “good sign” that both sides would hold talks in the ongoing dispute. 

“You know the old saying: as long as there are talks you’re not shooting at each other,” he told German public broadcaster Deutschlandfunk. 

Russwurm, who also serves as chairman for German conglomerate and car supplier Thyssenkrupp, said tariffs was the last thing Germany needed as a major exporting nation. 

At the same time, Brussels’ move to apply tariffs of varying degrees suggested a thorough analysis has taken place and that this was not an effort that targets the entire Chinese car sector in equal measure. 

Meantime, Maximilian Butek, executive director at the German Chamber of Commerce in China, said there was “zero chance” that the preliminary tariffs would be removed by July 4 unless China eliminated all the issues flagged by the European Commission. 

EU trade policy has turned increasingly protective over concerns that China’s production-focused development model could see it flooded with cheap goods as Chinese firms look to step up exports amid weak domestic demand. 

China has rejected accusations of unfair subsidies or that it has an overcapacity problem, saying the development of its EV industry has been the result of advantages in technology, market and industry supply chains.  

“When European Commission President Von der Leyen announced she would investigate China’s new energy vehicles … I had an intuitive feeling it was not only an economic issue but also a geopolitical issue,” said Zhang Yansheng, chief research fellow at the China Center for International Economic Exchanges. 

Armed and ready 

Trade relations between the 27-strong bloc and the world’s No. 2 economy took an abrupt turn for the worse in May 2021 when the European Parliament voted to freeze ratification of what would have been a landmark investment treaty because of tit-for-tat sanctions over allegations of human rights abuses in China’s Xinjiang region. 

They came to blows again that year when China downgraded diplomatic ties with Lithuania and told multinationals to sever relations with the Baltic state after Vilnius invited democratically governed Taiwan, which China claims as part of its territory, to open a representative office in the capital. 

Although calling for talks, Beijing has also indicated that it has retaliatory measures ready if the EU does not back down, and that it considers Brussels wholly responsible for the escalating tensions. 

The Global Times, which first reported China was considering opening a tit-for-tat anti-dumping investigation into European pork imports — which the commerce ministry confirmed last week — has also teed up an anti-subsidy investigation into European dairy goods and tariffs on large engine petrol cars. 

Chinese authorities have dropped hints about possible retaliatory measures through state media commentaries and interviews with industry figures. 

“It seems probable that Beijing will raise tariffs up to 25% for Europe-made cars with 2.5 or above liter engines,” said Jacob Gunter, lead analyst at Berlin-based China studies institute MERICS. 

“Pork and dairy are already on the table for Beijing, and likely more agricultural products will be threatened,” he added. 

“On the EU side, there are a variety of ongoing investigations … so we should expect some sort of measures targeting distortions on [Chinese] products ranging from medical devices to airport security scanners to steel pipes.” 
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Gia Lai Province — Vietnam’s coffee growers have been hit hard by the worst drought in nearly a decade this year, and that could mean a morning espresso is about to get more costly.  

The country is the world’s second biggest coffee producer and the top producer of robusta beans, the variety most commonly found in espressos and instant coffees.  

Domestic forecasts for next season’s harvest in Vietnam remain grim, with the nation’s Mercantile Exchange expecting a 10-16% fall in output due to the extreme heat.  

Doan Van Thang is a 39-year-old coffee farmer from the central Gia Lai province.  

“The drought dried up this whole area and the surrounding areas, and the water shortage is so severe that compared to last year, the harvest of coffee cherries is very low. We lost a lot of the output. It’s very small, very low this year.”  

With the price of coffee beans hitting a record high, farmers are enjoying the extra cash.  

They are also trying out new tactics to protect trees in the heatwave, like letting them grow for longer, allowing their roots to access deeper water reserves.  

Growers also soften the soil around plants, or cover it with leaves to improve absorption of rainwater and fertilizers.  

And a return of rainfall in recent weeks has improved the outlook, boosting confidence among farmers and officials.  

But it remains unclear whether the improved weather conditions and new farming practices will help boost output and drive down prices of robusta beans.

“We farmers should be happy when the price increases, but due to this drought, we are not very happy because the price increases but the output decreases. So in general, we’re happy and we’re sad at the same time because the climate changes erratically, and we can’t grasp those changes, so we are more sad than happy because the output has decreased much more compared to previous years.”  

The United States Department of Agriculture has been far less pessimistic than domestic projections – estimating Vietnam’s next harvest to be roughly steady.  

Whatever the impact on the harvest, coffee costs for drinkers around the world are likely to rise.  

While record wholesale prices have so far had a limited impact on consumer prices, there are signs that might be changing.  

Recent data from Eurostat showed coffee inflation up by 1.6% in the European Union in April and 2.5% in robusta-loving Italy.  

That’s still well below price rises from a year earlier, but it was higher than 1% in the March EU reading – a sign roasters may have started to pass their higher costs on to consumers.
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MILAN — The post-pandemic surge in global sales of luxury handbags, shoes and apparel is set to stall this year amid a creativity crisis and price hikes as brands shift focus to the biggest spending customers, a new study by the Bain consultancy said Tuesday.

Bain is forecasting flat worldwide luxury sales in 2024 following a slight first-quarter dip, according to the study commissioned by the Altagamma association. The consultancy cited political uncertainty during a presidential election year in the United States as well as economic uncertainty in China that has brought on a phenomenon of “luxury shaming.”

Beyond socioeconomic factors and rising geopolitical tensions, the slowdown is also partly “self-inflicted,” said Bain partner Claudia D’Arpizio.

She cited a “creativity crisis,” in the sector, as a number of major fashion houses are transitioning creative directors, and a new focus on the super-wealthy customers, at the expense of the aspirational middle class and Gen-Z youngsters who fueled growth before the pandemic.

“There is a lack of clarity for many of these brands. They are making attempts to regain focus. It is five, six brands under turn-around, big ones. This is not helping the overall excitement,” D’Arpizio told The Associated Press. “This is a supply-driven industry. When you have the brands really in tune with customer needs, it usually reacts quickly.”

She said some “tweaks” are needed on strategy and price points, adding that “you can’t grow without the middle class and younger generations.”

Among major fashion houses, Gucci and Moschino have made runway debuts of their new creative directions, while the first Valentino collection by the new creative director hits the runway in September. Chanel has the position to fill after the incumbent resigned earlier this month.

While inflation is one element of price hikes, D’Arpizio said brands are also refocusing on the estimated 6 million to 8 million consumers at the top of the pyramid as they search for better profit margins. At the same time, there has been less rejuvenation in the offerings.

Steep price increases for items that don’t show significant innovation, and feel like something they have seen before, leaves customers “upset and puzzled.”

Flat global luxury sales forecasts follow a pent-up post-pandemic spending surge that pushed sales during the 2021-23 period up 24% over 2019 levels.

Last year, sales of personal luxury goods grew by 4% to 362 billion euros (about $388 billion) from 349 euros in 2022, due largely to a resurgence of U.S. and Asian tourism to Europe fueling purchases. Add in luxury travel, fine art, cars and yachts, the vast global luxury market expanded to 1.5 trillion euros last year — highlighting a trend toward experiences over tangible goods.

Japan is a bright spot as the return of foreign tourists with the yen at the lowest level to the U.S. dollar in 20 years, while Europe continues strong trends due to tourist spending and an increase in local consumption, especially in French and Italian cities.
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Nairobi, Kenya — A 21-year-old man died after being hit by a tear gas canister during protests in Kenya this week, a human rights official and the victim’s relative said Saturday, in the second fatality in connection with the youth-led demonstrations. 

Led largely by Gen-Z Kenyans who have livestreamed the demonstrations against tax increases, the protests have been galvanized by widespread anger over President William Ruto’s economic policies. 

Thursday’s demonstrations in Nairobi were mostly peaceful, but officers fired tear gas and water cannons throughout the day to disperse protesters near parliament. 

According to a Kenya Human Rights Commission official, 21-year-old Evans Kiratu was “hit by a tear gas canister” during the demonstrations. 

“He was rushed to hospital around 6 p.m. on Thursday … and died there,” Ernest Cornel, a spokesperson at the Kenya Human Rights Commission, told AFP. “It is tragic that a young person can lose his life simply for agitating against the high cost of living.” 

The victim’s aunt told national broadcaster Citizen TV that her nephew had died in the hospital before she was able to see him. 

“We are demanding justice for my nephew,” she said. 

The rallies began in Nairobi on Tuesday before spreading across the country, with protesters calling for a national strike on Tuesday. 

Kiratu’s death comes on the heels of another fatality reported Friday, when a police watchdog group said it was investigating allegations that a 29-year-old man was shot by officers in Nairobi after the demonstrations. 

The Independent Policing Oversight Authority said it had “documented the death … allegedly as a result of [a] police shooting” Thursday. 

According to a police report seen by AFP, a 29-year-old man was taken to the hospital in Nairobi around 7 p.m. Thursday, “unconscious with a thigh injury” before “succumbing” to his injuries, without giving further details. 

Several organizations, including Amnesty International Kenya, said that at least 200 people were injured in Nairobi after Thursday’s protests, which saw thousands of people take to the streets across the country.

Following smaller-scale demonstrations in Nairobi earlier in the week, the cash-strapped government agreed to roll back several tax increases laid out in a new bill. 

But Ruto’s administration still intends to increase some taxes, defending the proposed levies as necessary for filling its coffers and cutting reliance on external borrowing. 

The tax increases will pile further pressure on Kenyans, with many already struggling to survive as the cost of living surges and well-paid jobs remain out of reach for young people. 

Organized largely through social media, the protests have caught the government by surprise, with demonstrators now calling for a nationwide shutdown. 

“Tuesday 25th June: #OccupyParliament and Total Shutdown Kenya. A national strike,” read a poster shared widely online, adding that “Gen Z are granting all hard-working Kenyans a day off. Parents keep your children at home in solidarity.” 

After the government agreed to scrap levies on bread purchases and car ownership as well as financial and mobile services, the treasury warned of a 200 billion shilling ($1.5 billion) shortfall. 

The proposed taxes were projected to raise 346.7 billion shillings ($2.7 billion), equivalent to 1.9% of GDP, and reduce the budget deficit from 5.7% to 3.3% of GDP. 

The government has now targeted an increase in fuel prices and export taxes to fill the void left by the changes, a move critics say will make life more expensive in a country battling high inflation. 

Kenya is one of the most dynamic economies in East Africa, but a third of its 51.5 million people live in poverty. 
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ALMATY, KAZAKHSTAN — Economic analysts in Kazakhstan say the government is using a formulation for setting the poverty line that fails to capture the number of people living below a humane standard of living. The result, they say, lowers the amount of assistance provided to the poor.

Kazakhstan sets the poverty line at about $70 a month, slightly over $2 a day. That results in an official poverty rate of 5.1% of the population. The World Bank, in a March report, More, Better and Inclusive Jobs in Kazakhstan, said that using its poverty line of $3.65 a day for lower middle-income countries (although the World Bank actually classifies Kazakhstan as upper middle-income) puts the poverty rate at about 10% in 2018.

Meruert Makhmutova, an economist and director of the Almaty-based Public Policy Research Center, said Kazakhstan should adopt the World Bank standard, which she said would result in more people receiving government assistance.

“The switch to $3.65 a day would automatically increase the number of the poor and the government would have to provide targeted social assistance to a greater number of people,” Makhmutova said. “As a result, the government, failing to admit the real scale of poverty, reduces budget spending on social assistance to poor citizens.”

The official Kazakh poverty level is close to the World Bank’s extreme poverty line of $2.15 a day, but Andrey Chebotarev, an Almaty-based economist and director of the Alternativa center for topical research, told VOA that figure is not applicable in Kazakhstan because of climate.

“It’s hard to just survive on the street in Kazakhstan in winter because the weather and climate make it impossible,” he told VOA, referring to winter temperatures that could drop to minus 30 degrees Celsius.

“We need to assess poverty differently,” he said.

Makhmutova also disputed methods authorities use to set the minimum wage and gauge the unemployment level.

Until recently, the minimum wage has been set arbitrarily without consideration of personal incomes or the real cost of living in the country. It was set around $190 a month for 2024, even though the average monthly wage was $890 at the end of last year.

“The government doesn’t use the average wage for setting the minimum wage, that’s why the minimum wage doesn’t grow substantially and its growth in the past few years doesn’t even match the inflation rate,” Makhmutova said.

Baglan Kasenov, the head of the Kazakh Labor and Social Protection Ministry’s department for labor and social partnership, told VOA the Kazakh government had adopted a new methodology to set the minimum wage starting next year. It conforms to International Labor Organization recommendations, he said, and will be based on the median wage and productivity, reaching 50% of the median wage in future. The median wage, where half of workers receive less than that and half receive more, was about $560 a month last year.

The joblessness rate is another contentious issue in Kazakhstan, as authorities, Chebotarev said, now categorize people, for example, farming their kitchen gardens and working without pay in family businesses as “self-employed,” which is new.

Makhmutova said the move “masks unemployment”; the number of jobless has been constant at around 450,000 people or under 5% in the past few years, whereas the number of self-employed is around 2.1 million, according to the government.

“As for unemployment, it’s a Kazakh invention of global scale because we have invented 2 million self-employed and blame everything on them,” Chebotarev said. “Our estimates of unemployment should be revised … but no one in government wants to consider self-employed as jobless.”

World Bank report questioned

Use of the government figures has resulted in criticism of the World Bank report, which claimed that despite declining economic growth, Kazakhstan’s poverty rate had dropped.

Makhmutova questioned the World Bank’s report because it based its analysis on “irrelevant” official Kazakh income and unemployment statistics – figures that are derived from the wrong method to assess poverty as well as being out of date.

She told VOA the report “is not objective in the first place because it relies on statistics provided by the labor ministry which avoids the assessment of the real scale of poverty and unemployment.”

In addition, although the report was published this year, “the latest statistical data on poverty is from 2018, which is why it is irrelevant for the assessment of the current situation,” she said, citing the COVID-19 pandemic and high inflation after Russia invaded Ukraine as having worsened living standards and increased poverty in Kazakhstan since 2018.

In response to Makhmutova’s criticism, the World Bank said it welcomes “critique and debate” over its reports, adding that the report “used the latest available data as is standard in World Bank reports for analysis.”
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