Zimbabwe’s new gold-backed currency sliding on black market

Harare, Zimbabwe — Zimbabwe’s recently introduced gold-backed currency is sliding on the local black market but officials insist the currency is getting stronger and has a bright future. Columbus Mavhunga reports from Harare.

Even songs are played on the radio encouraging citizens to embrace the currency, called Zimbabwe Gold — or ZiG — introduced on April 5 trading at 13.56 to the U.S. dollar.

Official statistics say ZiG is now trading at 13.41. But on the black market it is around 20.

Chamunorwa Musengi, a street vendor in Harare, is not optimistic about the new currency which for the moment is trading electronically, with notes and coins coming into circulation on April 30:  

“Let’s wait and see,” he said. “Maybe it will boost our economy for some time. But I do not see anything changing with the new currency, because things are really tight at the moment. We been through this before. When they introduced bond notes, things stabilized for a short time and then it started sliding on the market. They are saying ZiG is around 13 — it will end up around 40,000 against the dollar.”

Bond notes refer to the currency which was launched in 2019 after a decade of Zimbabwe using the U.S. dollar and other currencies.  The bond note had lost about 80% of its value and was trading at around 40,000 to the dollar before its official demise.

Samson Kabwe, a minibus conductor, says he cannot wait for the physical notes and coins of ZiG to be released.

“We are for ZiG, especially for change,” he said. “We had no small notes for change. If ZiG notes and coins come, the government would have done a great thing. We want it like now.”

The government says for now, commodities like fuel will still be bought and sold using U.S. dollars. 

Gift Mugano, an economics professor, predicts the new currency will go the way of the abandoned one.

“[In] 2016, we introduced bond notes which was backed by Afreximbank (African Export–Import Bank) facility of $400 million,” he said. “The Afreximbank is an international bank with reputation. But that was not be sufficient to guarantee the success of the bond notes. So it failed. Right? Why are we failing to guarantee stability? There is no sustained production in the economy because you defend the economy with production. Secondly, confidence issues. People do not trust this system because we have lost money several times.”

But John Mushayavanhu, the new governor or the Reserve Bank of Zimbabwe, predicts the currency will succeed because it is backed by reserves of gold and other minerals worth $175 million and $100 million cash.   

“We are doing what we are doing to ensure that our local currency does not die,” he said. “We were already in a situation where almost 85% of transactions are being conducted in U.S. dollars because [the] local currency was not living up to the function of store of value. We are going to restore that store of value so that we can start reviving our currency. So, we are starting at $80 million worth, and as we get more reserves, we will gradually be moving towards greater use of the local currency. It is my wish that if we get to the year (end) at 70-30, next year 60-40, the year after 50-50; by the time we get to 50-50 people will be indifferent as to which currency they are using. And that way we regain use of our local currency.”

While Mushayavanhu has that confidence, social media is awash with people and traders — including government departments — refusing to accept the outgoing Zimbabwe currency.

AI-generated fashion models could bring more diversity to industry — or leave it with less

Chicago, Illinois — London-based model Alexsandrah has a twin, but not in the way you’d expect: Her counterpart is made of pixels instead of flesh and blood.

The virtual twin was generated by artificial intelligence and has already appeared as a stand-in for the real-life Alexsandrah in a photo shoot. Alexsandrah, who goes by her first name professionally, in turn receives credit and compensation whenever the AI version of herself gets used — just like a human model.

Alexsandrah says she and her alter-ego mirror each other “even down to the baby hairs.” And it is yet another example of how AI is transforming creative industries — and the way humans may or may not be compensated.

Proponents say the growing use of AI in fashion modeling showcases diversity in all shapes and sizes, allowing consumers to make more tailored purchase decisions that in turn reduces fashion waste from product returns. And digital modeling saves money for companies and creates opportunities for people who want to work with the technology.

But critics raise concerns that digital models may push human models — and other professionals like makeup artists and photographers — out of a job. Unsuspecting consumers could also be fooled into thinking AI models are real, and companies could claim credit for fulfilling diversity commitments without employing actual humans.

“Fashion is exclusive, with limited opportunities for people of color to break in,” said Sara Ziff, a former fashion model and founder of the Model Alliance, a nonprofit aiming to advance workers’ rights in the fashion industry. “I think the use of AI to distort racial representation and marginalize actual models of color reveals this troubling gap between the industry’s declared intentions and their real actions.”  

Women of color in particular have long faced higher barriers to entry in modeling and AI could upend some of the gains they’ve made. Data suggests that women are more likely to work in occupations in which the technology could be applied and are more at risk of displacement than men.

In March 2023, iconic denim brand Levi Strauss & Co. announced that it would be testing AI-generated models produced by Amsterdam-based company Lalaland.ai to add a wider range of body types and underrepresented demographics on its website. But after receiving widespread backlash, Levi clarified that it was not pulling back on its plans for live photo shoots, the use of live models or its commitment to working with diverse models.

“We do not see this (AI) pilot as a means to advance diversity or as a substitute for the real action that must be taken to deliver on our diversity, equity and inclusion goals and it should not have been portrayed as such,” Levi said in its statement at the time.

The company last month said that it has no plans to scale the AI program.

The Associated Press reached out to several other retailers to ask whether they use AI fashion models. Target, Kohl’s and fast-fashion giant Shein declined to comment; Temu did not respond to a request for comment.

Meanwhile, spokespeople for Nieman Marcus, H&M, Walmart and Macy’s said their respective companies do not use AI models, although Walmart clarified that “suppliers may have a different approach to photography they provide for their products, but we don’t have that information.”

Nonetheless, companies that generate AI models are finding a demand for the technology, including Lalaland.ai, which was co-founded by Michael Musandu after he was feeling frustrated by the absence of clothing models who looked like him.

“One model does not represent everyone that’s actually shopping and buying a product,” he said. “As a person of color, I felt this painfully myself.”

Musandu says his product is meant to supplement traditional photo shoots, not replace them. Instead of seeing one model, shoppers could see nine to 12 models using different size filters, which would enrich their shopping experience and help reduce product returns and fashion waste.

The technology is actually creating new jobs, since Lalaland.ai pays humans to train its algorithms, Musandu said.

And if brands “are serious about inclusion efforts, they will continue to hire these models of color,” he added.

London-based model Alexsandrah, who is Black, says her digital counterpart has helped her distinguish herself in the fashion industry. In fact, the real-life Alexsandrah has even stood in for a Black computer-generated model named Shudu, created by Cameron Wilson, a former fashion photographer turned CEO of The Diigitals, a U.K.-based digital modeling agency.

Wilson, who is white and uses they/them pronouns, designed Shudu in 2017, described on Instagram as the “The World’s First Digital Supermodel.” But critics at the time accused Wilson of cultural appropriation and digital Blackface.

Wilson took the experience as a lesson and transformed The Diigitals to make sure Shudu — who has been booked by Louis Vuitton and BMW — didn’t take away opportunities but instead opened possibilities for women of color. Alexsandrah, for instance, has modeled in-person as Shudu for Vogue Australia, and writer Ama Badu came up with Shudu’s backstory and portrays her voice for interviews.

Alexsandrah said she is “extremely proud” of her work with The Diigitals, which created her own AI twin: “It’s something that even when we are no longer here, the future generations can look back at and be like, ‘These are the pioneers.'”

But for Yve Edmond, a New York City area-based model who works with major retailers to check the fit of clothing before it’s sold to consumers, the rise of AI in fashion modeling feels more insidious.

Edmond worries modeling agencies and companies are taking advantage of models, who are generally independent contractors afforded few labor protections in the U.S., by using their photos to train AI systems without their consent or compensation.

She described one incident in which a client asked to photograph Edmond moving her arms, squatting and walking for “research” purposes. Edmond refused and later felt swindled — her modeling agency had told her she was being booked for a fitting, not to build an avatar.

“This is a complete violation,” she said. “It was really disappointing for me.”

But absent AI regulations, it’s up to companies to be transparent and ethical about deploying AI technology. And Ziff, the founder of the Model Alliance, likens the current lack of legal protections for fashion workers to “the Wild West.”

That’s why the Model Alliance is pushing for legislation like the one being considered in New York state, in which a provision of the Fashion Workers Act would require management companies and brands to obtain models’ clear written consent to create or use a model’s digital replica; specify the amount and duration of compensation, and prohibit altering or manipulating models’ digital replica without consent.

Alexsandrah says that with ethical use and the right legal regulations, AI might open up doors for more models of color like herself. She has let her clients know that she has an AI replica, and she funnels any inquires for its use through Wilson, who she describes as “somebody that I know, love, trust and is my friend.” Wilson says they make sure any compensation for Alexsandrah’s AI is comparable to what she would make in-person.

Edmond, however, is more of a purist: “We have this amazing Earth that we’re living on. And you have a person of every shade, every height, every size. Why not find that person and compensate that person?”

Instagram blurring nudity in messages to protect teens, fight sexual extortion

LONDON — Instagram says it’s deploying new tools to protect young people and combat sexual extortion, including a feature that will automatically blur nudity in direct messages.

The social media platform said in a blog post Thursday that it’s testing out the features as part of its campaign to fight sexual scams and other forms of “image abuse,” and to make it tougher for criminals to contact teens.

Sexual extortion, or sextortion, involves persuading a person to send explicit photos online and then threatening to make the images public unless the victim pays money or engages in sexual favors. Recent high-profile cases include two Nigerian brothers who pleaded guilty to sexually extorting teen boys and young men in Michigan, including one who took his own life, and a Virginia sheriff’s deputy who sexually extorted and kidnapped a 15-year-old girl.

Instagram and other social media companies have faced growing criticism for not doing enough to protect young people. Mark Zuckerberg, the CEO of Instagram’s owner Meta Platforms, apologized to the parents of victims of such abuse during a Senate hearing earlier this year.

Meta, which is based in Menlo Park, California, also owns Facebook and WhatsApp but the nudity blur feature won’t be added to messages sent on those platforms.

Instagram said scammers often use direct messages to ask for “intimate images.” To counter this, it will soon start testing out a nudity-protection feature for direct messages that blurs any images with nudity “and encourages people to think twice before sending nude images.”

“The feature is designed not only to protect people from seeing unwanted nudity in their DMs, but also to protect them from scammers who may send nude images to trick people into sending their own images in return,” Instagram said.

The feature will be turned on by default globally for teens under 18. Adult users will get a notification encouraging them to activate it.

Images with nudity will be blurred with a warning, giving users the option to view it. They’ll also get an option to block the sender and report the chat.

For people sending direct messages with nudity, they will get a message reminding them to be cautious when sending “sensitive photos.” They’ll also be informed that they can unsend the photos if they change their mind, but that there’s a chance others may have already seen them.

As with many of Meta’s tools and policies around child safety, critics saw the move as a positive step, but one that does not go far enough.

“I think the tools announced can protect senders, and that is welcome. But what about recipients?” said Arturo Béjar, former engineering director at the social media giant who is known for his expertise in curbing online harassment. He said 1 in 8 teens receives an unwanted advance on Instagram every seven days, citing internal research he compiled while at Meta that he presented in November testimony before Congress. “What tools do they get? What can they do if they get an unwanted nude?”

Béjar said “things won’t meaningfully change” until there is a way for a teen to say they’ve received an unwanted advance, and there is transparency about it.

Instagram said it’s working on technology to help identify accounts that could be potentially be engaging in sexual extortion scams, “based on a range of signals that could indicate sextortion behavior.”

To stop criminals from connecting with young people, it’s also taking measures including not showing the “message” button on a teen’s profile to potential sextortion accounts, even if they already follow each other, and testing new ways to hide teens from these accounts.

In January, the FBI warned of a “huge increase” in sextortion cases targeting children — including financial sextortion, where someone threatens to release compromising images unless the victim pays. The targeted victims are primarily boys between the ages of 14 to 17, but the FBI said any child can become a victim. In the six-month period from October 2022 to March 2023, the FBI saw a more than 20% increase in reporting of financially motivated sextortion cases involving minor victims compared to the same period in the previous year.

Indiana aspires to become next great tech center

indianapolis, indiana — Semiconductors, or microchips, are critical to almost everything electronic used in the modern world. In 1990, the United States produced about 40% of the world’s semiconductors. As manufacturing migrated to Asia, U.S. production fell to about 12%.  

“During COVID, we got a wake-up call. It was like [a] Sputnik moment,” explained Mark Lundstrom, an engineer who has worked with microchips much of his life. 

The 2020 global coronavirus pandemic slowed production in Asia, creating a ripple through the global supply chain and leading to shortages of everything from phones to vehicles. Lundstrom said increasing U.S. reliance on foreign chip manufacturers exposed a major weakness. 

“We know that AI is going to transform society in the next several years, it requires extremely powerful chips. The most powerful leading-edge chips.” 

Today, Lundstrom is the acting dean of engineering at Purdue University in Lafayette, Indiana, a leader in cutting-edge semiconductor development, which has new importance amid the emerging field of artificial intelligence. 

“If we fall behind in AI, the consequences are enormous for the defense of our country, for our economic future,” Lundstrom told VOA. 

Amid the buzz of activity in a laboratory on Purdue’s campus, visitors can get a vision of what the future might look like in microchip technology. 

“The key metrics of the performance of the chips actually are the size of the transistors, the devices, which is the building block of the computer chips,” said Zhihong Chen, director of Purdue’s Birck Nanotechnology Center, where engineers work around the clock to push microchip technology into the future. 

“We are talking about a few atoms in each silicon transistor these days. And this is what this whole facility is about,” Chen said. “We are trying to make the next generation transistors better devices than current technologies. More powerful and more energy-efficient computer chips of the future.” 

Not just RVs anymore

Because of Purdue’s efforts, along with those on other university campuses in the state, Indiana believes it’s an attractive location for manufacturers looking to build new microchip facilities. 

“Purdue University alone, a top four-ranked engineering school, offers more engineers every year than the next top three,” said Eric Holcomb, Indiana’s Republican governor. “When you have access to that kind of talent, when you have access to the cost of doing business in the state of Indiana, that’s why people are increasingly saying, Indiana.” 

Holcomb is in the final year of his eight-year tenure in the state’s top position. He wants to transform Indiana beyond the recreational vehicle, or “RV capital” of the country.  

“We produce about plus-80% of all the RV production in North America in one state,” he told VOA. “We are not just living up to our reputation as being the number one manufacturing state per capita in America, but we are increasingly embracing the future of mobility in America.” 

Holcomb is spearheading an effort to make Indiana the next great technology center as the U.S. ramps up investment in domestic microchip development and manufacturing.  “If we want to compete globally, we have to get smarter and healthier and more equipped, and we have to continue to invest in our quality of place,” Holcomb told VOA in an interview. 

His vision is shared by other lawmakers, including U.S. Senator Todd Young of Indiana, who co-sponsored the bipartisan CHIPS and Science Act, which commits more than $50 billion in federal funding for domestic microchip development. 

‘We are committed’

Indiana is now home to one of 31 designated U.S. technology and innovation hubs, helping it qualify for hundreds of millions of dollars in grants designed to attract technology-driven businesses. 

“The signal that it sends to the rest of the world [is] that we are in it, we are committed, and we are focused,” said Holcomb. “We understand that economic development, economic security and national security complement one another.” 

Indiana’s efforts are paying off. 

In April, South Korean microchip manufacturer SK Hynix announced it was planning to build a $4 billion facility near Purdue University that would produce next-generation, high-bandwidth memory, or HBM chips, critical for artificial intelligence applications.  

The facility, slated to start operating in 2028, could create more than 1,000 new jobs. While U.S. chip manufacturer SkyWater also plans to invest nearly $2 billion in Indiana’s new LEAP Innovation District near Purdue, the state recently lost bidding to host chipmaker Intel, which selected Ohio for two new factories. 

“Companies tend to like to go to locations where there is already that infrastructure, where that supply chain is in place,” Purdue’s Lundstrom said. “That’s a challenge for us, because this is a new industry for us. So, we have a chicken-and- egg problem that we have to address, and we are beginning to address that.” 

Lundstrom said the CHIPS and Science Act and the federal money that comes with it are helping Indiana ramp up to compete with other U.S. locations already known for microchip development, such as Silicon Valley in California and Arizona. 

What could help Indiana gain an edge is its natural resources — plenty of land and water, and regular weather patterns, all crucial for the sensitive processes needed to manufacture microchips at large manufacturing centers. 

Indiana aspires to become next great tech hub

The Midwestern state of Indiana aspires to become the next great technology center as the United States ramps up investment in domestic microchip development and manufacturing. VOA’s Kane Farabaugh has more from Indianapolis. Videographer: Kane Farabaugh, Adam Greenbaum

Angolan fishermen blame Chinese trawlers for declining fish stock 

In the port of Benguela on Angola’s Pacific coast, fishermen and fish traders are struggling to make ends meet. They say their catch is getting smaller and they blame illegal fishing by Chinese  trawlers. For Joao Marcos, Barbara Santos has this report.  (Mayra de Lassalette contributed)

Ukrainian civilians help build up their country’s drone fleet

Inexpensive first-person view – or radio controlled – drones have become a powerful weapon in Ukraine’s war against Russian invaders. As the country presses the West for more military aid, many Ukrainian civilians are stepping in to help by making homemade attack drones. Lesia Bakalets has the story from Kyiv.

Activists urge Nigeria to refuse Shell’s oil selloff plans 

London — Environmental and human rights activists are calling on the Nigerian government to withhold approval of plans by the London-based oil giant Shell to sell off its operations in the Niger Delta, unless the oil giant does more to tackle pollution in the region caused by the industry.

For decades, foreign energy firms have extracted hydrocarbons from the Niger Delta, and Shell is by far the biggest investor. It has earned the companies — and the Nigerian government — billions of dollars. Locals, however, have long complained of massive environmental damage.

“You can’t grow crops. You can’t drink the water. You can’t fish because the fish are dying or they’re dead,” said Florence Kayemba, Nigeria director at the civil society group Stakeholder Democracy Network, based in Port Harcourt in the Niger Delta.

Shell Oil announced in January it is pulling out of its onshore and shallow water operations the region. It intends to sell its Nigerian subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five mainly local firms. The sale would include existing mining licenses and infrastructure. Shell says it is part of a plan to transition away from fossil fuels.

Civil society groups say Shell must do more to clean up the environment before it leaves. A recent report by a Dutch organization, the Centre for Research on Multinational Corporations, or SOMO, warned the divestment plan is a “ticking time bomb.”

“Communities fear that, once Shell exits, they will never see their environment restored or receive compensation for lost livelihoods,” the SOMO report said. “Most people in the Delta depend on farming and fishing, occupations that are impossible when the soil and waterways are deeply contaminated.”

Florence Kayemba of the Stakeholder Democracy Network, which contributed to the SOMO report, told VOA that the Nigerian government must scrutinize the sale more closely.

“We are very concerned about the legacy of pollution being left behind by Shell — not only Shell but also other oil companies that have divested their assets from the Niger Delta,” she said.

“We believe that it’s very important for the federal government to look into these issues, because the oil is not going to flow forever,” Kayemba added. “You will have a post-oil Nigeria. You will have a post-oil Niger Delta. And we need to have an environment that is functional.”

Oil companies like Shell have often blamed theft and sabotage for oil spills, a claim contested by environmental groups. Locals also seek to make money from unlicensed small-scale production known as “artisanal refining,” according to Kayemba.

“What you have is a situation where artisanal oil refining is just reinforcing what has been happening,” she said. “And yet that pollution had already existed. So, by the time you get to disentangle this, it becomes really difficult. Who is to blame who?”

A report commissioned in May 2023 by Bayelsa State, one of the major oil producing regions in the Niger Delta, estimated that it would cost some $12 billion to clean up decades-old oil spills in the state over a 12-year period. It blamed Shell and the Italian oil firm ENI for most of the damage.

Both Shell and ENI dispute the findings.

The SOMO report claims Shell is now selling its operations to domestic companies that may not have the capability to deal with the aging infrastructure and legacy of oil exploration.

“Shell is selling its oil blocks and infrastructure as going concerns to companies that appear, in several cases, to lack the finances and willingness both to deal with the old and damaged infrastructure and to undertake responsible closure and decommissioning when this becomes necessary,” the report said.

“Shell’s exit exposes the communities of the Niger Delta to major ongoing risks to their environment, health, and human rights, long after the oil industry ceases and likely for generations to come,” it added.

In a statement to VOA, Shell said that “Onshore divestments by international energy companies are part of a wider reconfiguration of the Nigerian oil and gas sector in which, after decades of capability building, domestic companies are playing an increasingly important role in helping the country to deliver its aspirations for the sector.”

“As divestments occur, mandatory submissions to the Federal Government allow the regulators to apply scrutiny across a wide range of issues and recommend approval of these divestments, provided they meet all requirements,” the statement said.

Shell added that it will continue to deploy its “technical expertise” under the terms of the sale to the new buyers.

The Nigerian government has indicated it intends to approve Shell’s divestment plans. Heineken Lokpobiri, Nigeria’s petroleum minister, told the World Economic Forum in Davos that the government is committed to “fostering a business-friendly environment” in the sector.

“On the part of the government, once we get the necessary documents, we will not waste time to give the necessary considerations and consent,” Lokpobiri said at Davos January 18, according to Reuters.

The Nigerian Ministry for Petroleum Resources did not respond to VOA requests for comment.

With $6.6B to Arizona hub, Biden touts big steps in US chipmaking

Washington; Flagstaff, Arizona — President Joe Biden on Monday announced a $6.6 billion grant to Taiwan’s top chip manufacturer to produce semiconductors in the southwestern U.S. state of Arizona, which includes a third facility that will bring the foreign tech giant’s investment in the state to $65 billion.

Biden said the move aims to perk up a decades-old slump in American chip manufacturing. Taiwan Semiconductor Manufacturing Company (TSMC), which is based in the Chinese-claimed island, claims more than half of the global market share in chip manufacturing.

The new facility, Biden said, will put the U.S. on track to produce 20% of the world’s leading-edge semiconductors by 2030.

“I was determined to turn that around, and thanks to my CHIPS and Science Act — a key part of my Investing in America agenda — semiconductor manufacturing and jobs are making a comeback,” Biden said in a statement.

U.S. production of this American-born technology has fallen steeply in recent decades, said Andy Wang, dean of engineering at Northern Arizona University.

“As a nation, we used to produce 40% of microchips for the whole world,” he told VOA. “Now, we produce less than 10%.”

A single semiconductor transistor is smaller than a grain of sand. But billions of them, packed neatly together, can connect the world through a mobile phone, control sophisticated weapons of war and satellites that orbit the Earth, and someday may even drive a car.

The immense value of these tiny chips has fueled fierce competition between the U.S. and China.

The U.S. Department of Commerce has taken several steps to hamper China’s efforts to build its own chip industry. Those include export controls and new rules to prevent “foreign countries of concern” — which it said includes China, Iran, North Korea and Russia — from benefiting from funding from the CHIPS and Science Act.

While analysts are divided over whether Taiwan’s dominance of this critical industry makes it more or less vulnerable to Chinese aggression, they agree it confers the island significant global status.

“It is debatable what, if any, role Taiwan’s semiconductor manufacturing prowess plays in deterrence,” said David Sacks, an analyst who focuses on U.S.-China relations at the Council on Foreign Relations. “What is not debatable is how devastating an attack on Taiwan would be for the global economy.”

Biden did not mention U.S. adversaries in his statement, but he noted the impact of Monday’s announcement, saying it “represent(s) a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”

VOA met with engineers in the new technological hub state, who said the legislation addresses a key weakness in American chip manufacturing.

“We’ve just gotten in the cycle of the last 15 to 20 years, where innovation has slowed down,” said Todd Achilles, who teaches innovation, strategy and policy analysis at the University of California-Berkeley. “It’s all about financial results, investor payouts and stock buybacks. And we’ve lost that innovation muscle. And the CHIPS Act — pulling that together with the CHIPS Act — is the perfect opportunity to restore that.”

The White House says this new investment could create 25,000 construction and manufacturing jobs. Academics say they’re churning out workers at a rapid pace, but that still, America lacks talent.

“Our engineering college is the largest in the country, with over 33,000 enrolled students, and still we’re hearing from companies across the semiconductor industry that they’re not able to get the talent they need in time,” Zachary Holman, vice dean for research and innovation at Arizona State University, told VOA.

And as the American industry stretches to keep pace, it races a technical trend known as t: that the number of transistors in a computer chip doubles about every two years. As a result, cutting-edge chips get ever smaller as they grow in computing power.

TSMC in 2022 broke ground on a facility that makes the smallest chip currently available, coming in at 3 nanometers — that’s just wider than a strand of DNA.

Reporter Levi Stallings contributed to this report from Flagstaff, Arizona.

With $6.6B to Arizona hub, Biden touts big steps in US chipmaking

President Joe Biden on Monday announced a $6.6 billion grant to Taiwan’s top chip manufacturer for semiconductor manufacturing in Arizona, which includes a third facility that will bring the tech giant’s investment in the state to $65 billion. VOA’s White House correspondent Anita Powell reports from Washington, with reporter Levi Stallings in Flagstaff, Arizona.

Experts fear Cambodian cybercrime law could aid crackdown

PHNOM PENH, CAMBODIA — The Cambodian government is pushing ahead with a cybercrime law experts say could be wielded to further curtail freedom of speech amid an ongoing crackdown on dissent. 

The cybercrime draft is the third controversial internet law authorities have pursued in the past year as the government, led by new Prime Minister Hun Manet, seeks greater oversight of internet activities. 

Obtained by VOA in both English and Khmer language versions, the latest draft of the cybercrime law is marked “confidential” and contains 55 articles. It lays out various offenses punishable by fines and jail time, including defamation, using “insulting, derogatory or rude language,” and sharing “false information” that could harm Cambodia’s public order and “traditional culture.”  

The law would also allow authorities to collect and record internet traffic data, in real time, of people under investigation for crimes, and would criminalize online material that “depicts any act or activity … intended to stimulate sexual desire” as pornography. 

Digital rights and legal experts who reviewed the law told VOA that its vague language, wide-ranging categories of prosecutable speech and lack of protections for citizens fall short of international standards, instead providing the government more tools to jail dissenters, opposition members, women and LGBTQ+ people. 

Although in the works since 2016, earlier drafts of the law, which sparked similar criticism, have not leaked since 2020 and 2021. Authorities hope to enact the law by the end of the year. 

“This cybercrime bill offers the government even more power to go after people expressing dissent,” Kian Vesteinsson, a senior research analyst for technology at the human rights organization Freedom House, told VOA.  

“These vague provisions around defamation, insults and disinformation are ripe for abuse, and we know that Cambodian authorities have deployed similarly vague criminal provisions in other contexts,” Vesteinsson said. 

Cambodian law already considers defamation a criminal offense, but the cybercrime draft would make it punishable by jail time up to six months, plus a fine of up to $5,000. The “false information” clause — defined as sharing information that “intentionally harms national defense, national security, relations with other countries, economy, public order, or causes discrimination, or affects traditional culture” — carries a three- to five-year sentence and fine of up to $25,000. 

Daron Tan, associate international legal adviser at the International Commission of Jurists, told VOA the defamation and false information articles do not comply with the International Covenant on Civil and Political Rights, to which Cambodia is a party, and that the United Nations Human Rights Committee is “very clear that imprisonment is never the appropriate penalty for defamation.” 

“It’s a step very much in the wrong direction,” Tan said. “We are very worried that this would expand the laws that the government can use against its critics.” 

Chea Pov, the deputy head of Cambodia’s National Police and former director of the Ministry of Interior’s Anti-Cybercrime Department that is overseeing the drafting process, told VOA the law “doesn’t restrict your rights” and claimed the U.S. companies which reviewed it “didn’t raise concerns.”  

Google, Meta and Amazon, which the government has said were involved in drafting the law, did not respond to requests for comment. 

“If you say something based on evidence, there is no problem,” Pov said. “But if there is no evidence, [you] defame others, which is also stated in the criminal law … we don’t regard this as a restriction.”  

The law also makes it illegal to use technology to display, trade, produce or disseminate pornography, or to advertise a “product or service mixed with pornography” online. Pornography is defined as anything that “describes a genital or depicts any act or activity involving a sexual organ or any part of the human body, animal, or object … or other similar pornography that is intended to stimulate sexual desire or cause sexual excitement.” 

Experts say this broad category is likely to be disproportionately deployed against women and LGBTQ+ people. 

Cambodian authorities have often rebuked or arrested women for dressing “too sexily” on social media, singing sexual songs or using suggestive speech. In 2020, an online clothes and cosmetics seller received a six-month suspended sentence after posting provocative photos; in another incident, a policewoman was forced to publicly apologize for posting photos of herself breastfeeding. 

Naly Pilorge, outreach director at Cambodian human rights organization Licadho, told VOA the draft law “could lead to more rights violations against women in the country.” 

“This vague definition of ‘pornography’ poses a serious threat to any woman whose online activity the government decides may ‘cause sexual excitement,’” Pilorge said. “The draft law does not acknowledge any legitimate artistic or educational purposes to depict or describe sexual organs, posing another threat to freedom of expression.” 

In March, authorities said they hosted civil society organizations to revisit the draft. They plan to complete the drafting process and send the law to Parliament for passage before the end of the year, according to Pov, the deputy head of police. 

Soeung Saroeun, executive director of the NGO Forum on Cambodia, told VOA “there was no consultation on each article” at the recent meeting. 

“The NGO representatives were unable to analyze and present their inputs,” said Saroeun, echoing concerns about its contents. “How is it [possible]? We need to debate on this.” 

The cybercrime law has resurfaced as the government works to complete two other draft internet laws, one covering cybersecurity and the other personal data protection. Experts have critiqued the drafts as providing expanded police powers to seize computer systems and making citizens’ data vulnerable to hacking and surveillance. 

Authorities have also sought to create a national internet gateway that would require traffic to run through centralized government servers, though the status of that project has been unclear since early 2022 when the government said it faced delays. 

Biden administration announces $6.6 billion to ensure leading-edge microchips are built in US 

WILMINGTON, Del. — The Biden administration pledged on Monday to provide up to $6.6 billion so that a Taiwanese semiconductor giant can expand the facilities it is already building in Arizona and better ensure that the most-advanced microchips are produced domestically for the first time. 

Commerce Secretary Gina Raimondo said the funding for Taiwan Semiconductor Manufacturing Co. means the company can expand on its existing plans for two facilities in Phoenix and add a third, newly announced production hub. 

“These are the chips that underpin all artificial intelligence, and they are the chips that are the necessary components for the technologies that we need to underpin our economy,” Raimondo said on a call with reporters, adding that they were vital to the “21st century military and national security apparatus.” 

The funding is tied to a sweeping 2022 law that President Joe Biden has celebrated and which is designed to revive U.S. semiconductor manufacturing. Known as the CHIPS and Science Act, the $280 billion package is aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips stalled factory assembly lines and fueled inflation. 

The Biden administration has promised tens of billions of dollars to support construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness. 

“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems,” Biden said in a statement. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.” 

Taiwan Semiconductor Manufacturing Co. produces nearly all of the leading-edge microchips in the world and plans to eventually do so in the U.S. 

It began construction of its first facility in Phoenix in 2021, and started work on a second hub last year, with the company increasing its total investment in both projects to $40 billion. The third facility should be producing microchips by the end of the decade and will see the company’s commitment increase to a total of $65 billion, Raimondo said. 

The investments would put the U.S. on track to produce roughly 20% of the world’s leading-edge chips by 2030, and Raimondo said they should help create 6,000 manufacturing jobs and 20,000 construction jobs, as well as thousands of new positions more indirectly tied to assorted suppliers in chip-related industries tied to Arizona projects. 

The potential incentives announced Monday include $50 million to help train the workforce in Arizona to be better equipped to work in the new facilities. Additionally, approximately $5 billion of proposed loans would be available through the CHIPS and Science Act. 

“TSMC’s commitment to manufacture leading-edge chips in Arizona marks a new chapter for America’s semiconductor industry,” Lael Brainard, director of the White House National Economic Council, told reporters. 

The announcement came as U.S. Treasury Secretary Janet Yellen is traveling in China. Senior administration officials were asked on the call with reporters if the Biden administration gave China a head’s up on the coming investment, given the delicate geopolitics surrounding Taiwan. The officials said only that their focus in making Monday’s announcement was solely on advancing U.S. manufacturing. 

“We are thrilled by the progress of our Arizona site to date,” C.C. Wei, CEO of TSMC, said in a statement, “And are committed to its long-term success.” 

Yellen says US will not accept Chinese imports decimating new industries 

BEIJING — U.S. Treasury Secretary Janet Yellen warned China on Monday that Washington will not accept new industries being decimated by Chinese imports as she wrapped up four days of meetings to press her case for Beijing to rein in excess industrial capacity. 

Yellen told a media conference that U.S. President Joe Biden would not allow a repeat of the “China shock” of the early 2000s, when a flood of Chinese imports destroyed about 2 million American manufacturing jobs. 

She did not, however, threaten new tariffs or other trade actions should Beijing continue its massive state support for electric vehicles, batteries, solar panels and other green energy goods. 

Yellen used her second trip to China in nine months to complain that China’s overinvestment has built factory capacity far exceeding domestic demand, while fast-growing exports of these products threaten firms in the U.S. and other countries. 

She said a newly created exchange forum to discuss the excess capacity issue would need time to reach solutions. 

Yellen drew parallels to the pain felt in the U.S. steel sector in the past. 

“We’ve seen this story before,” she told reporters. “Over a decade ago, massive PRC government support led to below-cost Chinese steel that flooded the global market and decimated industries across the world and in the United States.” 

Yellen added: “I’ve made it clear that President Biden and I will not accept that reality again.” 

When the global market is flooded with artificially cheap Chinese products, she said, “the viability of American and other foreign firms is put into question.” 

Yellen said her exchanges with Chinese officials had advanced American interests and that U.S. concerns over excess industrial capacity were shared by allies in Europe, Japan, Mexico, the Philippines and other emerging markets. 

Pushback 

China’s parliament, the National People’s Congress, said in March the government would take steps to curb industrial overcapacity. 

But Beijing says the recent focus by the United States and Europe on the risks to other economies from China’s excess capacity is misguided. 

Chinese officials say the criticism understates innovation by their companies in key industries and overstates the importance of state support in driving their growth. 

They also say tariffs or other trade curbs will deprive global consumers of green energy alternatives key to meeting global climate goals. 

Trade curbs on Chinese electric vehicles would be disruptive to a growing industry and contravene World Trade Organization rules, the industry and information technology ministry said in a statement carried by state media CCTV and China Daily. 

The ministry added that it was committed to support EV exports and would help “accelerate the overseas development” of the industry including planning for shipping and logistics and support for firms to innovate and meet global standards. 

State news agency Xinhua quoted Li as saying the U.S. should “refrain from turning economic and trade issues into political or security issues” and view the topic of production capacity from a “market-oriented and global perspective.” 

Chinese Commerce Minister Wang Wentao voiced more pointed objections during a roundtable meeting with Chinese EV makers in Paris, saying U.S. and European assertions of Chinese excess EV capacity were groundless. 

Rather than subsidies, China’s electric vehicle companies rely on continuous technological innovation, perfect production and supply chain systems and full market competition, Wang said on his trip to discuss a European Union anti-subsidy inquiry. 

Yellen said a possible short-term solution was for China to take steps to bolster consumer demand with support for households and retirement, and shift its growth model away from supply-side investments. 

Yellen spoke about the issue at length with Premier Li Qiang and also met Finance Minister Lan Foan on Sunday. She met People’s Bank of China (PBOC) governor Pan Gongsheng and former vice premier Liu He on Monday. 

In a CNBC interview after the meetings, Yellen said she was “not thinking so much” about trade curbs on China, as much as shifts in its macroeconomic environment. But she reiterated she would notrule out tariffs. 

 

Cambodians face mounting pain from microfinance debt

KEAN SVAY, KANDAL PROVINCE, Cambodia — Five years ago, Lun Sam Ath took out a $12,000 loan to build a new wooden house and repay a previous loan that she had used to buy a motorbike.

The 45-year-old mother of five owed $200 a month to Amret, one of the country’s largest microfinance institutions (MFI), which she figured she could repay with help from her older daughter’s earnings from a garment factory job. But then her husband contracted hepatitis, and treatment was costly.

After her husband died, Lun Sam Ath, who made about $180 a month in a garment factory, fell behind on payments. So, she decided to sell their house — along with a 10-by-20-meter plot of land. But with Cambodia experiencing a post-COVID real estate slump, it remains unsold.

The MFI credit officers seeking repayment started pressuring Lun Sam Ath.

“They would come to my home with several people, three to five motorbikes, and also bring the village chief with them,” she said during a recent interview with VOA Khmer.

She couldn’t handle the stress and shame. Last June she abandoned her home and rented a room for $40 a month, living with her three younger children, ages 9 to 14.

In February, she moved to the capital, Phnom Penh, where she sells face masks on the street. She screens phone calls “since I am afraid the bank agents will call me” she said. “They [the MFI] can take my land and sell it now to pay off the loan.”

Lun Sam Ath’s loan was one of nearly 2 million outstanding microfinance loans in Cambodia as of the end of 2023, according to the Cambodia Microfinance Association (CMA). Cambodia’s population is about 16.5 million, and researchers say the ratio of microfinance loans per person is the world’s highest.

The MFI sector was once hailed as a key tool for lifting Cambodians out of poverty by injecting capital into small businesses or farms unsuitable for traditional loans. Instead, thousands of Cambodians found themselves in a debt trap, taking out increasingly burdensome loans to pay back other loans, and taking increasingly extreme measures to escape the cycle of indebtedness. Substantial research conducted in Cambodia and in other developing nations found that while microloans helped many, especially women, the small loans have also made lives, like Lun Sam Ath’s, worse.

Advocates say the MFIs in Cambodia frequently fail to clearly explain the risks of these loans to borrowers, who are often financially illiterate and use their land as collateral.

Two local rights groups, Licadho and Equitable Cambodia, released a report, Debt Threats: A Quantitative Study of Microloan Borrowers in Cambodia, based on a survey of 717 households in Kampong Speu province, which is about 50 kilometers from Phnom Penh.

“Widespread over-indebtedness has led to significant numbers of serious human rights abuses,” the study said.

It found 6.1% of households had sold land to repay a debt, while about 3% of households had a child drop out of school specifically due to a loan, often to start working to help repayment.

The study, released in August, also found a spike in people increasing their borrowing to repay other loans. In 2012, 3.45% of loans went to repaying existing loans, which increased to 34.8% of loans in 2022.

Am Sam Ath, operations director at Licadho, called for urgent intervention from MFIs and the government to protect borrowers. But he said loan officers employed by MFIs were often perpetuating the problem.

Rather than approving loans for income-generating activities, these institutions were issuing loans for house repairs, medical expenses or repaying other loans.

And Cambodia is seeing increasing reports of credit officers resorting to intimidation or other unscrupulous tactics to compel borrowers to repay their debt, Am Sam Ath told VOA Khmer in January.

That month, the CMA released a study touting the “transformative impact” of microfinance loans.

Kaing Tongngy, a spokesperson for the association, said there were more than 2 million borrowers across the country, “so it is unavoidable that some clients were unable to pay.”

The CMA impact study, conducted by development research agency M-CRIL, found that 31% of the 3,200 microfinance borrowers surveyed experienced substantial economic benefit and life improvements, while 36% reported some improvement over the past five years.

And while nearly 6% of borrowers had reported selling some land over the past five years, 20% reported purchases of some land, according to the CMA report.

Licadho’s Am Sam Ath said the CMA study “focused mostly on positive work of MFIs, but little on negatives.” He and other like-minded advocates want to see “solutions and improvements in the sector.”

The growth of MFIs has been staggering. Starting with about 50,000 clients and a total loan portfolio of more than $3 million in 1995, the microfinance sector provided loans to 2.1 million households with a portfolio of $9.4 billion by the end of 2022, according to the CMA. That accounts for more than 30% of Cambodia’s estimated GDP of $29.96 billion.

MFIs often tout the relatively high repayment rates as proof of the industry’s health. The National Bank of Cambodia in 2022 reported a sectorwide non-performing loan rate of just 2.5%. But researchers from Cambodia and Singapore said an obsession with “portfolio quality” was masking the true cost to individual borrowers.

“These indicators hide how people are juggling debt from informal lenders to repay their loans. Consequently, claims about the social impact of microfinance are based on a flawed understanding of household borrowing practices,” said their report, released last year with a grant from the National University of Singapore.

“Lenders not only fail to measure the impact of their services, but they also have a conflict of interest in reporting on the abuses that their services have caused. So long as repayment rates are considered an indicator of success, then the risks associated with juggling debt are likely to increase,” it added.

According to a report by the National Bank of Cambodia, its officials have imposed fines or taken other administrative actions against MFIs that fail to follow existing regulations.

Cambodia’s microfinance industry is being investigated by the International Finance Corporation’s (IFC) watchdog’s Compliance Advisor Ombudsman (CAO), because of the reports of forced land sales and other human rights violations from advocacy organizations.

CAO is reviewing six of Cambodia’s top IFC-funded microfinance institutions including Amret, which issued Lun Sam Ath’s loan. It declined to comment on her case in an email to VOA on March 16.

Unexpected strawberry crop spins Burkina’s ‘red gold’

Ouagadougou, Burkina Faso — In the suburbs of Burkina Faso’s capital Ouagadougou, lucrative strawberry farming is supplanting traditional crops like cabbage and lettuce and has become a top export to neighboring countries.

Prized as “red gold” in the Sahel, strawberry crops brought in some $3.3 million from 2019 to 2020, according to agricultural support program PAPEA.

In their January to April season, strawberries “take the place of other crops,” Yiwendenda Tiemtore, a farmer in the working-class Boulmiougou district on the city outskirts, told AFP.

Tiemtore has been busy harvesting the red fruit since dawn, before temperatures rise to 40 degrees Celsius.

He harvests about 25 to 30 kilograms of Burkina’s popular strawberry varieties, “selva” and “camarosa,” every three days, watering his plots from wells.

Cultivating strawberries, which thrive on ample sunlight and water, might come as a surprise in this semi-arid West African country.

But Burkina Faso leads the region’s strawberry production, growing about 2,000 tons a year.

Despite being prized by local customers, more than half is exported to neighboring countries.

“We receive orders from abroad, particularly from Ivory Coast, Niger and Ghana,” said market gardener Madi Compaore, who specializes in strawberries and trains local growers.

“Demand is constantly rising and the prices are good.”

In season, strawberries tend to be sold at a higher price than other fruit and vegetables, fetching $5 per kilogram.

Production has remained strong despite insecurity in the country, including from jihadi violence and the repercussions of two coups in 2022.

As well as in Ouagadougou, strawberry production is prominent in Bobo-Dioulasso — Burkina’s second city — even though “the sector’s not very well organized” there, Compaore said.

Since the 1970s

“You might think it’s an oddity to grow strawberries in a Sahelian country like Burkina Faso, but it’s been a fixture since the 1970s,” Compaore added.

The practice began when a French expatriate introduced a few plants to his garden in the country. Now more and more people are growing them.

“It’s our red gold. It’s one of the most profitable crops for both growers and sellers,” he explained.

Seller Jacqueline Taonsa has no hesitation in swapping from apples and bananas to strawberries in season.

“With the heat, it’s hard to keep strawberries fresh for long,” said Taonsa, who cycles around Ouagadougou neighborhoods balancing a salad bowl on her head.

“So, we take quantities that can be sold quickly during the day,” she explained. That usually amounts to about 5 or 6 kilograms.

Adissa Tiemtore used to be a full-time fruit and vegetable seller.

She has mainly switched to selling woven loincloths now but takes up her strawberry business again in season because of the lucrative margins, as high as “200-300%.”

“I start strawberry selling again when they’re in season to make a bit of money and satisfy my former customers, who continue to ask for them,” she said.

“We go round the different growers depending on what day they’re harvesting. That way we get enough to sell every day during the three fruit-producing months,” she said.

The end of April spells the end of the bonanza. “We go back to our other activities, and we wait for next season,” Tiemtore said.