Connect with us

Business Home

Lagarde resigns as IMF chief, starting race for her successor

Published

on

International Monetary Fund (IMF) Managing Director Christine Lagarde attends a news conference – REUTERS

WASHINGTON – 17 July 2019: International Monetary Fund chief Christine Lagarde submitted her resignation from the global crisis lender on Tuesday, citing more clarity about her nomination to lead the European Central Bank as European legislators approved a new top bureaucrat.

Lagarde said in a statement her resignation was effective Sept. 12, firing the starting gun for the IMF’s search for her successor, which is likely to be another European.

“With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund,” Lagarde said in a statement.

She said her resignation would expedite the selection for the next head of the IMF.

IMF succession is expected to be a major topic of discussion among G7 finance ministers and central bank governors meeting on Wednesday and Thursday in Chantilly, France, near Paris amid concerns that slowing global growth and trade conflicts will pressure vulnerable economies.

Lagarde’s resignation, first reported by Reuters, came two weeks after her nomination on July 2 for the ECB’s top job. She did not immediately quit the IMF because of uncertainty over whether the new European Parliament would support her and other new EU leadership positions, sources told Reuters.

Her nomination was part of a package of top officials agreed by EU governments that included German Defense Minister Ursula von der Leyen as European Commission president, who drew Green party opposition.

Later on Tuesday, von der Leyen was approved by the European Parliament in a 383-327 vote.

The European parliament will hold a nonbinding vote on Lagarde’s appointment, which is expected to be finalized by EU leaders at a regular summit on Oct. 17-18.

Also Read Lillian Barnard: Tech Enthusiast And First Female Managing Director, Microsoft South Africa

VETTING CANDIDATES

Since its creation at the end of World War Two, the IMF has been led by a European, while its sister institution, the World Bank, has been led by an American. Analysts say the “duopoly” is likely to continue after U.S. President Donald Trump’s nominee, David Malpass, was approved in April to lead the World Bank with European support.

Finance leaders of Europe’s four largest economies — Germany, France, Britain and Italy — will participate in the G7 finance meeting this week in Chantilly, along with other large IMF shareholders the United States, Japan and Canada, giving weight to discussions on IMF leadership.

On the sidelines of the G7 meeting, Bank of England Governor Mark Carney, considered a leading candidate to replace Lagarde, is slated to meet with U.S. Treasury Secretary Steven Mnuchin, who wields strong influence over the IMF’s leadership.

The United States holds an effective veto over major Fund decisions, with a 16.52 percent share of its voting power.

While Carney, 54, is a Canadian economist, he holds Irish and British passports and has led Britain’s central bank since 2013 and chaired the Financial Stability Board, an international body, for seven years.

Other names being floated include Bank of Finland Governor Olli Rehn, as well as ECB executive board member Benoit Coeure.

Kristalina Georgieva, a Bulgarian national who is currently chief executive officer of the World Bank, has been seen as having an outside chance, according to some IMF sources.

Two IMF board sources said there was concern among some IMF member countries that the Fund’s IMF leadership would be left in limbo due to the long ECB confirmation process, and it was better for her to resign to accelerate the succession process.

The IMF’s acting managing director, David Lipton, said earlier on Tuesday that the fund would adapt to Lagarde’s departure as it has other developments over 75 years.

INCLUSIVE LEGACY

A former French finance minister, Lagarde was the first woman to head the IMF and was known among policymakers as a tough negotiator. She was a tireless advocate for the benefits of trade, global growth that aids the poor and middle classes, and the empowerment of women.

Her second five-year term as head of the IMF was not due to end until July 2021. Traditionally, the post has always been held by a European, while the head of the IMF’s sister organization, the World Bank, has always been an American since the institutions were created at the end of World War Two.

If approved, Lagarde would take over as ECB president from Mario Draghi on Oct. 31. While her confirmation could be lengthy, it is likely to be largely a formality as long as the euro zone’s biggest member states – Germany, France and Italy – are in unity.

Her immediate challenge at the ECB would be to overcome her shortcomings in monetary policy-making, especially as it seeks to rearm for a potential new slump after years of using unconventional policy tools to stimulate inflation and growth.

As head of the IMF, she has had some battle-testing, bringing stability to the euro zone debt crisis of the last decade and presiding over large bailouts for Argentina, Egypt and Ukraine. She has emphasized the need for the IMF to maintain its $1 trillion in lending firepower to deal with any future crises.

 

Credit: Egypt Today

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Press Release

Releaf Partners with IITA to Improve Growth and Sustainability in Oil Palm Production

Published

on

Releaf VP Sourcing – Ayodeji Jayeoba (left), Nteranya Sanginga – DG, IITA (Middle) Ikenna Nzewi – CEO, Releaf (Right) (Image: Supplied)

Releaf, an agtech startup that develops proprietary hardware and software solutions that makes African farmers and food factories more efficient and profitable, has partnered with the International Institute of Tropical Agriculture to improve growth and sustainability in oil palm production in Nigeria and across Africa.

The partnership will enable the startup and the award-winning research-for-development organisation to explore ways to increase oil palm yields, deploy the best intercropping mechanisms, and work with fabrication and mechanisation experts to foster further innovation and development in Nigeria’s smallholder-driven oil palm sector.

Despite having 80 percent of market share, 4 million smallholder farmers in Nigeria’s oil palm sector are unable to maximise the opportunity available to them. Due to relatively low yields and limited access to adequate processing equipment. Releaf has invented Kraken – West Africa’s most advanced palm nut de-sheller. Which can process up to 500 metric tons of palm nuts per week to produce premium palm kernel products at 95% purity, better than the 88% industry standard. Releaf also works with farmers to improve their output. By encouraging the adoption of best practices to increase their yield. And supporting farming activities that are good for the environment.

In the early 1960s, Nigeria was the world’s largest oil palm producer with a global market share of 43 per cent. Today, it contributes less than two percent of total global production. IITA will support Releaf with soil fertility analysis, access to its facilities, oil palm management programmes and leaf analysis for improved productivity. The partnership will also explore how insect waste can be recycled into organic waste that can be used to fertilise oil palm or as a source of nutrition for livestock.

According to Ikenna Nzewi, CEO and co-founder of Releaf, “IITA has a long and rich history of working with international and national partners to impact agricultural value chains. And we are really excited to be partnering with them. IITA also represents the beginning of the journey that led me to co-found Releaf and I am grateful for the opportunity to take this relationship forward. Oil palm is one of our most ubiquitous plants and we must continue to develop technology to improve its sustainable impact on rural communities’ livelihoods.”

IITA Director General Nteranya Sanginga said, “We are really impressed by what Releaf has already achieved in such a short space of time. I recall our first meeting with Ikenna in 2015 and it is great to see what that first encounter has led to. Investing in research and development is always a great advantage for everyone. And we are looking forward to working with Releaf to explore more ways to add value across the agricultural value chain.”

 

Download BAO E-MAGAZINE

Continue Reading

Press Release

Social media main enabler for growth among women-owned businesses

Published

on

95% of women SMEs in the region identify social media channels as the top tool to drive their business ventures

Mastercard, the Official Payment Technology Partner of Expo 2020 Dubai, and Female Fusion Network unveiled new research at the first in a series of workshops for the region’s female entrepreneurs at the world’s largest cultural gathering.

Held at Expo 2020 Dubai’s Women’s Pavilion, in collaboration with Cartier, the session focused on the power of the digital economy in enabling women-owned businesses to go online. In a study conducted among Female Fusion’s network of 20,000+ members across the region, it was revealed that 95% of women SMEs in the region identify social media channels as the top tool for their business ventures. Other channels include their own e-commerce websites (72%) as well as messaging services such as Facebook and Whatsapp (50%).

In addition, three out of four (72%) women-owned businesses said they rely on word of mouth to market their products and services. The workshop identified how SMEs can make the most of their online footprint, and better connect to their consumers in a digital economy.

Speakers included Ngozi Megwa, Senior Vice President, Digital Partnerships MEA, Mastercard, Sarah Beydoun, Founder and Creative Director of social impact fashion business Sarah’s Bag in Lebanon, Ioanna Angelidaki, co-founder of Instashop, and Maureen Hall, Founder and CEO of COÉGA Sunwear.

“The findings from the study indicate a clear need for further education and empowerment. Mastercard has long pushed for the success and growth of women as we break gender barriers around the world. Digital tools and technologies are the greatest equalizer for businesses and as the shift towards e-commerce becomes increasingly permanent, we are committed to helping women businesses go digital and grow digital as they pursue their entrepreneurial passions,” said Ngozi Megwa, Senior Vice President, Digital Partnerships MEA, Mastercard.

The recent unveiling of the inaugural Mastercard MEA SME Confidence Index also revealed that in terms of a digital footprint of the region’s women entrepreneurs, social media (71%) leads the way followed by a company website (57%).

“We are proud of the successful launch of our workshop series in partnership with Mastercard. As a growing community of ambitious women leaders, Female Fusion Network looks to support our members with access to platforms that offer simple yet effective takeaways for them to grow their business. We look forward to having more of these impactful sessions during Expo 2020 Dubai,” said Jennifer Blandos, Managing Partner, Female Fusion Network.

Mastercard has made a global commitment to connect 25 million women entrepreneurs to the digital economy by 2025 as part of its goal to build a more sustainable and inclusive world. As part of its efforts, the technology leader recently launched  ‘The Entrepreneur’s Odyssey’ a first-of-its kind digital education platform that brings together a range of world-class academic and business resources to help small businesses learn and thrive.

 

Download BAO E-MAGAZINE

Continue Reading

Press Release

Acronis, Cyber Protection Leader appoints Technology Veteran Paul Maritz, as Chairman of the Board

Published

on

Acronis Board Chairman, Paul Maritz (Image: Supplied)

Acronis, a global leader in cyber security and data protection, today announced that Paul Maritz has been appointed as the Chairman of the Board of Directors, effective September 21, 2021. Maritz will be responsible for the governance and leadership of Acronis as it strengthens its position in the service provider market preparing for significant growth in the future.

Earlier this year, Acronis raised $250M at a $2.5B valuation, and announced former GoDaddy’s partners business president, Patrick Pulvermüller, as the new chief executive officer. The strengthened management team will use the momentum to provide Acronis’ partners with the tools that they need to deal with a rapidly changing digital world.

The challenge of providing MSPs with effective tools to manage the environments of their customers is becoming increasingly complex, particularly in a world where security is becoming an overwhelming issue. Security can no-longer be handled by having an SMB end customer put together a plethora of individual tools. Modern threats have exposed the need for an integrated approach and automated cyber protection that solves the safety, accessibility, privacy, authenticity, and security (SAPAS) challenges of the modern digital world.

Acronis Cyber Protect provides all the management tools of the future that service providers need to do an effective job for their customers to help them grow their business. As well as developing its own technology, Acronis will continue to make acquisitions to become one of the world’s major players of providing the most innovative backup, security, and management tools on the market. Over 12,000 service providers trust Acronis Cyber Protect to manage over 2,000,000 workloads around the world, positioning Acronis for even more company growth in the future.  

“Paul brings a wealth of experience developing products to meet market demands and take companies to the next level. His becoming Chairman represents another step forward for Acronis in solidifying its position as a global leader in cyber protection. Paul’s experience with innovations at scale will help us to continue delivering easy, efficient, and secure cyber protection to service providers and their customers of any size,” said Patrick Pulvermüller, Acronis CEO.

“With its strength in backup and security, Acronis is well positioned to build a platform for a comprehensive list of management tools, helping service providers deliver modern cyber protection to their customers today and in the future. Acronis Cyber Protect is a great example of what can be done. Acronis will continue extensive research and development in this direction, helping partners optimize their operations and stay ahead of the competition,” said Paul Maritz, Acronis Chairman of the Board.

Maritz first joined the Board of Directors in May 2021, bringing 40 years of experience in computer science and software to the cyber protection company.

In his previous executive roles, Paul served on the Executive Staff of Microsoft, was the CEO of VMware, and was CEO and Founder of Pivotal Software. Paul currently is an active investor and serves on the Boards of several start-up technology companies.

Paul graduated with a degree in Mathematics and Computer Science from the Universities of Natal and Cape Town. He is active in the nonprofit world, served for 10 years on the Board of the Grameen Foundation, which supports financial inclusion and technology in the developing world, and supports conservation efforts in Africa.

Paul Maritz replaces René Bonvanie, whose leadership helped Acronis develop an effective strategy to expand global presence and deliver easy, efficient, and secure cyber protection to customers of any size. Acronis wishes to thank René Bonvanie for his contribution to the company development and growth.

 

Download BAO E-MAGAZINE

Continue Reading

Ads

Most Viewed