<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Ugandan President Yoweri Museveni signed a&nbsp;<a href="https://www.jurist.org/news/wp-content/uploads/sites/4/2023/03/Anti-Homosexuality-Bill-2023.pdf" target="_blank" rel="noreferrer noopener">law</a>&nbsp;Monday that threatens life sentences or the death penalty for those engaging in same-sex activities, renewing international concerns over human rights that could cause Western powers to cut off millions of dollars of aid to the African nation.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



The Anti-Homosexuality Act—passed by Parliament in March—affirms an existing law that allows life sentences for people who engage in same-sex relations, and adds several more drastic measures, including allowing the death penalty for HIV-positive people who repeatedly have sex with someone of the same gender.



It also calls for prison sentences of up to 20 years for “promoting homosexuality” and up to five years for touching someone with the “intention of committing an act of homosexuality.”



Foreign aid providers like the United Nations and some Western nations have&nbsp;<a href="https://www.ohchr.org/en/press-releases/2023/03/uganda-un-experts-condemn-egregious-anti-lgbt-legislation" target="_blank" rel="noreferrer noopener">critiqued</a>&nbsp;the law, arguing it violates human rights and could make it increasingly difficult to educate about and treat HIV.



Activist groups aiming to educate Ugandans about safe same-sex relations have expressed concern the law will hinder the fight against HIV, which affects 1.4 million Ugandans,&nbsp;<a href="https://aidsinfo.unaids.org/" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to the UN.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The law builds on 2014 legislation that held similar stipulations and was signed by Museveni, but was ruled invalid on procedural grounds by Uganda’s Constitutional Court. Another similar law in 2019 was vetoed by Museveni, who&nbsp;<a href="https://www.monitor.co.ug/uganda/news/national/museveni-hints-at-plan-not-to-sign-sexual-offences-act-3396024" target="_blank" rel="noreferrer noopener">cited</a>&nbsp;adverse “foreign policy implications” for Uganda if it enacted drastic anti-LGBTQ legislation. Following its attempt to pass the Anti-Homosexuality Act in 2014, U.S. President Barack Obama’s administration&nbsp;<a href="https://obamawhitehouse.archives.gov/blog/2014/06/19/further-us-efforts-protect-human-rights-uganda" target="_blank" rel="noreferrer noopener">sanctioned</a>&nbsp;Uganda, redirecting and stopping some aid to the country’s government. President Joe Biden’s administration has said it will also&nbsp;<a href="https://www.reuters.com/article/us-usa-biden-lgbt/biden-calls-for-expanded-efforts-to-protect-lgbtq-rights-globally-idUSKBN2A42KF" target="_blank" rel="noreferrer noopener">consider sanctions</a>&nbsp;on countries with anti-LGBTQ legislation, including&nbsp;<a href="https://www.whitehouse.gov/briefing-room/press-briefings/2023/03/22/press-briefing-by-press-secretary-karine-jean-pierre-and-nsc-coordinator-for-strategic-communications-john-kirby-11/" target="_blank" rel="noreferrer noopener">Uganda</a>. The United States alone provides roughly $950 million per year to Uganda, much of which goes toward health assistance,&nbsp;<a href="https://www.state.gov/u-s-relations-with-uganda/" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to the State Department.



<h2 class="wp-block-heading" id="h-chief-critic">CHIEF CRITIC</h2>



The Anti-Homosexuality Act violates “the rights to freedom of expression and association privacy, equality, and nondiscrimination,”&nbsp;<a href="https://www.hrw.org/news/2023/03/09/uganda-new-anti-gay-bill-further-threatens-rights" target="_blank" rel="noreferrer noopener">according</a>&nbsp;to Human Rights Watch, which promotes LGBTQ protections globally. HRW is at risk of not being able to operate in Uganda, as the country has identified at least 26 nongovernmental organizations it is considering banning for “promoting homosexuality,” HRW reported.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“The imposition of the death penalty for same-sex intimacy – including so-called ‘serial homosexuality’ – is an egregious violation of human rights,” the UN&nbsp;<a href="https://www.ohchr.org/en/press-releases/2023/03/uganda-un-experts-condemn-egregious-anti-lgbt-legislation" target="_blank" rel="noreferrer noopener">said</a>&nbsp;in a March statement about Uganda’s bill, arguing the implementation of the death penalty constituted “arbitrary killing” that breaches the International Covenant on Civil and Political Rights.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.wsj.com/articles/ugandan-lawmakers-amend-anti-lgbt-bill-criticized-by-u-s-6ff67e37?mod=article_inline" target="_blank" rel="noreferrer noopener">Ugandan Lawmakers Amend Anti-LGBT Bill Criticized by U.S.</a>&nbsp;(Wall Street Journal)



<a href="https://www.reuters.com/article/us-usa-biden-lgbt/biden-calls-for-expanded-efforts-to-protect-lgbtq-rights-globally-idUSKBN2A42KF" target="_blank" rel="noreferrer noopener">Biden calls for expanded efforts to protect LGBTQ rights globally</a>&nbsp;(Reuters)



<a href="https://www.washingtonpost.com/business/energy/2023/05/29/explainer-what-s-uganda-s-anti-gay-law-and-how-does-it-impact-lgbtq-rights/ff815492-fe1d-11ed-9eb0-6c94dcb16fcf_story.html" target="_blank" rel="noreferrer noopener">Why Uganda’s LGBTQ Community is Under Renewed Fire</a> (Washington Post)

President of Uganda Yoweri Museveni in Algeria

Uganda Passes Drastic Anti-LGBTQ Law—Including Death Penalty

This is the first year the Ocean Race has been attempted since 2018, with 11 boats taking part in a journey expected to last six months, finishing early July. During the Ocean Race stop in Cape Town, South Africa, recently, French sailor Kevin Escoffier spoke about how you discover more about yourself in the high seas than in any other sport.



The Ocean Race has long caught the imagination of many a sailor, a chance to traverse the high seas in a battle of physical and mental strength that pushes those who take part to the very limit of their endurance.



First attempted in 1973, it is in essence a race across the globe, making various ports of call along the way, with the quickest to navigate the various legs the winner. 



This is the first year the event has been attempted since 2018, with 11 boats taking part in a race that is expected to last all of six months, finishing in early July.



The boats will cover 32,000 nautical miles (59,200 kilometers) and there are seven legs, starting in the Spanish port of Alicante, before stops in Praia (Cape Verde), Cape Town, Itajaí (Brazil), Rhode Island (United States) and Aarhus (Denmark), the first of three In-Port races along with The Hague (Netherlands) and Genoa (Italy).



Although shorter than previous races (which have lasted up to nine months), the 2023 edition is certainly still very challenging and the real danger of upset in, at times, treacherous conditions is always there.



Frenchman Kevin Escoffier, who is skipper of the boat Holcim PRB, is in his third Ocean Race, having finished third in 2014 and won in 2018.



He admits it is hard graft but says you discover more about yourself in these conditions on the sea than in almost any other sport.



“You learn a lot about yourself, about the sea and about your boat very quickly, because there is no room for error,” Escoffier told FORBES AFRICA during the Ocean Race stop in Cape Town.



“I am lucky that I have experience in my crew because you need that if you hope to be successful. It is a very challenging race and there are many things that can be a setback.



“We only launched this boat in May 2022, so from that point of view it is very new. Not all boats are the same. They have their own character, and you have to learn that personality quickly.”



Although it is a race, Escoffier says the key as a skipper is actually to pace yourself, the crew and the boat. Trying to push too hard on any of those three things can have dire consequences.



“You have to find a steady rhythm, not always trying to be at 110% of what the boat is able to do. You don’t want to push too much because the boat can be at sea for 35 days or however long the leg is. It can be exhausting for everyone.”



Escoffier is the leader of crew, but even though he has won this race before, admits key to his role is allowing other people to contribute and to utilize his crew’s knowledge to the best of their abilities.



It is a lesson for life too, about being willing to hear what those around you have to say and not lead with absolute authority, even if it is ultimately your reputation on the line.



“It’s very important in a crew to use all the experience on board, even if they do not have experience in the Ocean Race itself.



As a skipper, you have to be able to listen to everybody and that each person is able to come with their skills and their ideas, even if it is ultimately up to me as the skipper to decide what to do.



“I always encourage the crew to come with their own ideas and find solutions to go faster by pushing less on the boat, if that makes sense. How can we be more efficient?”



Escoffier says that, even months into the race, they are still trying to work out the best combinations for Holcim PRB to reach optimum performance in all weather conditions.



“We are still working on the sails, in each leg we are modifying the speed of the boat, depending on the twin speed and the twin angle we are using, and monitoring the software that we have on board,” he says. 



“We’re always learning and pushing a bit harder, but there’s plenty to do, we’ve got a long list of what we want to try in the race.



“We learn every day how to go faster. And it’s amazing how fast these boats can go, but again, the race is long and it’s very, important… I know from my previous Ocean Races that you have to adapt as you go along.



“You cannot say, ‘we will start the race like that and finish doing the same things’. You have to adapt to what is happening around you.”



All of the stops in the race present a chance for the crew to explore the country they are in and find their land legs again. The boats spent around two weeks in Cape Town.



“It is the third time I have come to Cape Town, and I had a great time with my wife and family, it was a chance to see them again,” Escoffier said. “It’s a beautiful city and a door to the Southern Seas in the head of all sailors.



“That means it’s the ‘Hell’s Door’ for us,” he joked, in reference to the treacherous third leg in the Southern Atlantic that is the most challenging of the Ocean Race.



“But it’s so beautiful in Cape Town, I like to eat and there is so much good food, so I enjoyed that a lot. We had a wonderful time.&#8221;

The Ocean Race 2022/2023: Cape Town Leg 3 Start

The Ocean Race Stop In Cape Town And Lessons From The Sea

As bank failures rattle investors and test regulators, it&#8217;s time to rethink America’s financial system. One old solution, despised by regulators, might be just what the doctor ordered.



<abbr>N</abbr>estled on the&nbsp;second floor of a suburban office building in Fairfield, New Jersey, not far from Interstate 80 and just down the hall from an opthalmology center, are the offices of Financial Northeastern. Its chief executive, Jeff Zage, 60, could be one of the saviors of the troubled $23 trillion U.S. banking industry. Zage is a money broker, and for the past 38 years, his firm has specialized in underwriting certificates of deposits for needy banks. These deposits are generally bank-run-proof—they are not redeemable prior to maturity unless the deposit holder dies or becomes mentally incapacitated. Over the last 12 years, Zage’s small firm has quietly raised some $150 billion for banks small and large, connecting them with business owners, municipal treasurers and wealthy individuals eager to park sums of $250,000 or less in FDIC-insured accounts around the nation. Thanks to the Federal Reserve, interest rates on CDs maturing from three months to ten years are now above 5%. That means business is good for Financial Northeastern, which makes a small fee on each CD it brokers. But Zage repeatedly demurs when&nbsp;Forbes&nbsp;asks him for a photograph or even just a face-to-face meeting.



“I am a very unassuming individual,” he says. “I try to do my best to stay under the radar.”



Thirty-six years ago, it was a different story. Zage—then just 24 years old—his older brother Steven and their team of young cold-calling brokers were making millions providing funding to the nation’s ailing $1.2 trillion savings-and-loan industry in the form of high-rate CDs. A 1987&nbsp;Forbes&nbsp;article headlined “WE’RE THE LIFEBLOOD” pictured Zage popping out of the sunroof of his new car, his brother reclining on the hood. The story chronicled how regulators at regional Federal Home Loan Banks were calling brokers such as Financial Northeastern and Merrill Lynch to funnel billions to prop up zombie thrifts, mostly in Texas. Those S&amp;Ls had gotten into deep trouble after newly deregulated deposit rates soared by investing in commercial real estate, junk bonds and other risky assets.



When the dust settled, 747 savings-and-loans were shuttered and FSLIC, the insolvent government insurance fund backstopping the industry, was absorbed into the FDIC. The debacle cost U.S. taxpayers $124 billion, about $300 billion in current terms, or the equivalent of 2% of America’s 1989 GDP. Money brokers were blamed for worsening the S&amp;L crisis. Pundits called them a “cancer” afflicting the system because they peddled “hot money” that surged in and out of banks chasing the highest yield. In 1991, new regulations enacted by the FDIC made Zage’s bread-and-butter product, so-called brokered deposits, practically toxic to banks. Regulators warned against using them and increased FDIC insurance premiums for those who did. Today few of the nation’s 4,700 banks hold significant amounts of them.



But perhaps they should.



Silicon Valley Bank didn’t have a single brokered deposit on its books on March 9, the day depositors withdrew $42 billion in just 10 hours. Hot money? Sure—but it’s all hot these days. SVB’s $1 million-per-second deposit run was sparked by a handful of tweets. Dozens of fintechs, including Chime, Mercury and Robinhood, are more than happy to assist you with fast, frictionless money transfers. When Apple, backed by Goldman Sachs, announced in mid-April that it was offering an FDIC-insured savings account yielding 4.15%, it sucked in nearly $1 billion in four days. Non-banks, in the form of money market mutual funds like those offered by Vanguard and Fidelity, love hot money too. According to the Federal Reserve, over the last 13 months, $1 trillion in deposits has fled commercial banks for higher-yielding uninsured accounts.



Despite their pejorative “hot money” nickname, Zage’s FDIC-insured brokered CDs are far stickier than any of these bank savings accounts. Plus, there is strong evidence from a niche group of so-called industrial banks, which are in stellar financial condition while relying heavily on this funding, suggesting that this sort of heat is a stabilizing force. But brokered CDs alone won’t cure what’s ailing our nation’s banking system. The fact that after 40 years they continue to be stigmatized by regulators—and consequently shunned by banks—points to a larger problem. Bank regulation, with its multiple state regulators and three primary federal watchdogs—the Federal Reserve, the FDIC and the Office of Comptroller of the Currency—is stunningly inefficient, laden with political baggage and miles behind a quickly changing marketplace.



Part of the problem comes from clinging to old-fashioned banking ideals like “core” deposits, thought to be foundational to community banking and the soundness of our system. SVB and First Republic were far from the only banks caught flat-footed when the Fed hiked rates 10 times in the last year. According to FDIC call report data, 31 FDIC-insured banks with total assets of $30 billion are sitting on losses in their securities portfolios in excess of their tier 1 capital&nbsp;(see “Underwater on Main Street,” below).&nbsp;And that’s just the ugliest tip of the iceberg. Nearly 400 banks with combined assets of more than $3.7 trillion have losses amounting to more than half of their tier 1 capital. Virtually all these institutions are local community banks, most with assets of less than $300 million. Fortunately, few of these sick minnows are likely to have lots of uninsured deposits exceeding $250,000—or the external pressure of being publicly traded like Silicon Valley Bank and First Republic.



“In light of recent bank failures, the question is really not whether we need to rethink what a brokered deposit is or what hot money is, but what is a core deposit anymore?” says Jelena McWilliams, former chair of the FDIC and now a managing partner at Washington, D.C., law firm Cravath Swaine &amp; Moore. “Long-term, the community banking model will have to change. These small banks basically cannot survive unless they engage in fintech partnerships because it’s an easier and less costly business model to attract customers. But for whatever reason, the regulators in Washington are very averse to fintech.”



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<abbr>S</abbr>upport for&nbsp;community or “Main Street” banking dates to the founding of the republic, when populist Thomas Jefferson squared off against federalist Treasury Secretary Alexander Hamilton, an elitist who wanted to create a national bank. Jefferson believed it was unconstitutional and a threat to the young democracy, in part because it would concentrate funding in the big cities and away from small, developing agrarian communities. Hamilton prevailed in 1791 with the establishment of the first central bank, but in 1811, Congress failed to renew its charter. It wasn’t until 1863, when the Union needed to finance the Civil War, that the national banking system was created.



This historic bias enabled small-town banks to proliferate, and by 1929 there were nearly 26,000 banks in the U.S., one for every 5,000 Americans. The stock market crash and Great Depression sparked a blizzard of bank runs on these often-undercapitalized institutions: In the four years before the FDIC was established in 1933, nearly 6,000 U.S. banks and savings institutions failed, costing depositors $1.3 billion, about $31 billion in today’s dollars.



Ever since, the number of community or “Main Street” banks has been shrinking. There are currently 4,676 FDIC-insured banks, but on average 200 of them are merged out of existence each year. Dwindling numbers have done little, though, to weaken the strength and resolve of small banks’ primary lobbying group, the Independent Community Bankers of America (ICBA), which spent nearly $4.8 million lobbying in 2022, according to Open Secrets, including about $1.3 million in donations spread around Congress, the largest chunk to the House Financial Services Committee. The ICBA’s stated goal is to “keep money local and invest in communities.”



“They’re politically powerful because they’re on every single corner,” says bank consultant Mayra Rodríguez Valladares. “There’s actually rare bipartisan support for community banking.”



Adds former FDIC chairwoman McWilliams, “There is a strong sense in Washington that these small banks matter. Large banks don’t understand local conditions where a loan may have originated in the past based on ‘I’ve known your grandfather. He was a man of his word, and I trust that you’re going be the man of your word.’ [The ideal] is Norman Rockwell–esque.”



The ICBA asserts that big Wall Street banks are transactional, making decisions based on “predetermined credit boxes,” while community banking boils down to relationships. Of course, this is largely nonsense. Small banks use—or should use—precisely the same metrics in evaluating creditworthiness that larger ones do. There is no evidence of any bank of any size in the year 2023 making a loan because it “knew your grandfather.” On the flip side, in many ways, Silicon Valley Bank, with its $212 billion in assets, was practicing community banking.



“SVB was built exactly the way the regulators say a bank should be built: customer by customer, relationship by relationship. No hot money,” says bank regulatory expert Paul Clark of Seward &amp; Kissel. “Everything was ‘You want a line of credit from me, you keep your deposits here.’ Those are so-called core deposits.”



Moreover, because regulators were never especially precise in their definition of core deposits, except for the fact that brokered deposits should mostly be avoided, clever entrepreneurs and financial institutions over the years have figured out ways around the prohibitions and FDIC insurance limits.



In 2003 an Arlington, Virginia, company called IntraFi launched a deposit swapping service called CDAR (Certificate of Deposit Account Registry), which allowed banks to offer wealthy customers and businesses the ability to deposit up to $50 million. The big deposits are chopped up into $250,000 increments and placed at various FDIC-insured banks in IntraFi’s network. Banks that accept the deposits are then able to place their own over-the-limit deposits through the network.



“For me it’s being able to retain multigenerational customers that have accounts that will exceed the $250,000 limit,” says Jill Castilla, president of Citizens Bank of Edmond, Oklahoma, which has deposits of about $330 million, 18% of which are “reciprocal” thanks to IntraFi. “So now they don’t have to manually place those funds in different institutions to ensure they have coverage.”



Citizens’ $58 million in reciprocal deposits is not considered brokered by the FDIC but instead fall under the “core” deposit designation. Likewise, if you’re a bank that advertises your CD rates online using services like Bankrate, NerdWallet or Forbes Advisor, the high-rate deposits you bring in from across the nation typically qualify as “core.”



Then there are the multiple, and often confusing, brokered deposit “exemptions” granted by the FDIC to various banks, including those working exclusively with fintechs. FDIC-insured $1.8 billion (assets) Evolve Bank &amp; Trust of Memphis, Tennessee, provides banking services for large fintechs like Dave, Affirm and Mercury, but shows only 0.3% of its deposits are brokered.



Sourcing deposits outside your home market is apparently okay with regulators so long as you avoid broker-dealers like Zage, or UBS, Bank of America or Wells Fargo. Iowa’s Luana Savings Bank, a 115-year-old family-owned bank located in a town of 300 people amid thousands of acres of cornfields, found this out the hard way.



From 2016 to 2020, Luana’s assets more than doubled to $1.7 billion as its ambitious president, David Schultz, became one of Iowa’s biggest agricultural lenders. Luana and its six small branches were unable to attract enough local deposits to fuel its growing business, so Schultz connected with brokers that allowed him to fund his loans with out-of-market CDs with similar maturities. As assets climbed toward $2 billion, brokered deposits accounted for 60% of the total.



Luana’s operating stats have been exemplary, its return on equity averages 19% and it was a perennial winner of Des Moines–area “best bank” awards. Still, alarm bells sounded at the FDIC regional office, and in 2021, it and the Iowa Superintendent of Banks issued a cease-and-desist order claiming Luana was taking “excessive” risks and operating in an “unsafe and unsound” way. It also fined the bank $14.5 million and cut off its access to Federal Home Loan Bank loans. Schultz, who declined to speak to&nbsp;Forbes,&nbsp;told the&nbsp;Des Moines Register&nbsp;at the time that the charges were manufactured, and sued the FHLB.



Ultimately Schultz decided fighting regulators wasn’t worth it, so without admitting or denying the charges, Luana signed a consent order in 2022 and agreed to add independent directors to its board and reduce its reliance on non-core deposits.



<abbr>A</abbr>mong banks,&nbsp;the biggest users of brokered deposits are a small group of FDIC-insured institutions known as industrial banks. There are 24 of them, representing only $250 billion in total assets, but they are extremely well capitalized and profitable&nbsp;(see “Industrial Strength,” below).&nbsp;They are also despised by the ICBA and the Federal Reserve, and barely tolerated by their regulator, the FDIC.



Sometimes referred to as industrial loan companies (ILCs), these banks are FDIC-insured and -regulated, but their parent companies are typically commercial or financial institutions. The first ILC was formed in 1910 to make loans to industrial workers who couldn’t obtain credit elsewhere. Over the years companies like General Electric, Target and Goldman Sachs have owned ILCs. Today their owners include Harley-Davidson, Pitney Bowes, UnitedHealth Group, BMW, Square and USAA. Only a few states, including Utah, Nevada and California, can authorize their charters, and though they’re subject to the same rigorous FDIC application process and examinations as other banks, they’re exempt from Federal Reserve oversight because their parent companies, which are required to support their ILC with capital, aren’t bank holding companies.



Industrial banks can offer savings accounts, credit cards, loans and mortgages, but are prohibited from offering checking accounts or financing their parent company’s products. Pitney Bowes Bank, for example, doesn’t make loans to purchase its postage meter machines, but it can finance and manage shipping payments for its thousands of small-business customers. Industrial banks tend to be specialized and branchless, which is why many rely heavily on brokered certificates of deposit for funding, which they use to match asset maturities.



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One of the most profitable and well-capitalized banks in the nation, Nevada-chartered Beal Bank USA, is an industrial bank owned by Texas billionaire Andy Beal. It has $32 billion in assets and, as of March 31, 93% of its deposits were brokered. It’s currently offering one-year CDs yielding 4.65%.



Toyota Financial Savings Bank is another well-capitalized Nevada ILC, set up to provide savings accounts, mortgages and commercial loans to the company’s 35,000 U.S.-based Toyota and Lexus employees. Under its new chief executive, Mara McNeill, a former JPMorgan Chase auto finance executive—she graduated from the Air Force Academy in 1993 but also has a JD from Georgetown and a master’s in public policy from Harvard—its assets have grown from $1 billion in 2020 to nearly $6 billion, funded to a great extent by broker deposits, which currently stand at 58% of the total.



“It can be economically advantageous to have core deposits. You don’t have as much in fees from the FDIC,” McNeill says. “But at the same time, you’ve gotta pay for the salespeople to go out there and get those accounts. And so, you know, there’s a fee here and a cost there.”



Other successful but little-known industrial banks, all based in Utah, include Comenity, an $12 billion credit card lender; Nelnet, a $1 billion specialist in student loans; and Wex, a $6.5 billion bank offering gasoline charge cards to small and midsize fleets with discounts from refiners like Chevron and Exxon. Until a few years ago, $2 billion Medallion Bank specialized in financing taxicab medallions. But Uber and Lyft forced a hard pivot to lending for recreational vehicles and boats, and financing home contractors. Virtually all its funding comes from brokered deposits. “Our Deposits Don’t Run,” reads a headline on its website.



Industrial banks currently represent about 1% of all bank assets, but the ICBA apparently views them as a dire threat to community banking. In July 2005, when Walmart applied for an industrial bank charter, the ICBA helped orchestrate a tidal wave of thousands of alarming letters to the FDIC and Congress. Their message: Just as Walmart killed mom-and-pop retailing, an industrial bank charter would help it eliminate Main Street banks. In fact, efficiency-minded Walmart merely wanted to streamline credit card processing, saving money on bank fees, and would have been precluded from offering banking services directly to its customers.



The FDIC, under chairman Martin Gruenberg, ignored Walmart’s application. Then, a full year after the retailing giant submitted its forms, the FDIC announced a six-month moratorium on approving all ILC applications, ostensibly to “determine if any emerging safety and soundness or policy issues exist.” Walmart withdrew its application in March 2007, and that six-month moratorium wound up lasting 14 years, until Jelena McWilliams took over as FDIC chairperson and approved Nelnet and Square’s application.



“Martin Gruenberg does not like nontraditional banks. And so they just slow-walked the applications when they hit Washington,” says George Sutton, general counsel for the National Association of Industrial Bankers and Utah’s former commissioner of financial institutions. “Eventually it just goes into a black hole.” (The FDIC declined&nbsp;Forbes’&nbsp;interview requests.)



Banking crises are always about trust and stability, something traditional banks no longer have a monopoly on. Most people now trust Apple and Toyota more than their community bank. The next generation of banking customers care little about charters or regulatory turf wars and are savvy enough to know that hot money offering higher returns, whether from their local bank, fintech or broker, is smart money.

row of people to the bank teller cashier defocused background

Some Like It Hot: Can A Financial ‘Cancer’ From The 1980s Help Prevent Bank Runs?

Behind the sandbags, blast barriers, barbed wires and high walls, are impressive modern buildings in Somalia’s capital city. Despite the country struggling with war and drought, there is a strong pride in being Somali.



Mogadishu, the capital of Somalia, is reportedly one of the most dangerous places in the world, off limits to most foreigners and a risky place for Somali government officials. Travel advisories don’t mince their words: “Do not travel to Somalia, due to armed conflict, the ongoing very high threat of terrorist attacks and kidnapping, and dangerous levels of violent crime,” they read.



For more than three decades Somalia has battled terrorism, drought, famine and war. A drive through its capital throws up reminders of the past in the form of bullet-ridden buildings and smashed concrete rubble that has been pushed to the side of the streets. In the middle of a main intersection where two truck bombings five years ago killed 587 people and injured 316, a donkey stands chewing on garbage, unfazed by the armed convoys driving past.



Four kilometers from the Green Zone, which is how distance is measured in this war-torn city, the once tarred roads are covered with sand and dust due to years of neglect. Styled on the Baghdad safe zone, the heavily-guarded security zone around Aden Adde airport is controlled by government security forces who man the checkpoints in and out.



It’s dangerous for non-Somalis to move around the capital. Most embassy, United Nations and NGO staff hold their meetings inside the Green Zone. Attacks by the al-Shabaab militant group have increased since the president recently ramped up an offensive against them and the areas of Somalia they control.



If you’re planning a trip to the capital, your first point of call is a security company. During my visit they advised me not to leave the secure compound where I slept and ate, at any time, for anything, without informing them.



Even a trip inside the Green Zone saw me being driven in a heavily-armed vehicle, wearing a bulletproof vest, as part of a convoy with six local contractors armed with AK47, riding in the front.



It wasn’t always like this. For millennia, this ancient port city connected traders across the Indian Ocean. In the 1800s, the country was colonized by Britain and Italy and the faded facades of mostly Italian architecture can be seen on some of the buildings.



While independence came in 1960, decades of civil war followed that virtually destroyed the economy and infrastructure and split Somalia into areas under the rule of various entities. Since the late 2000s, the US military has supported the government in its counter-terrorism operations as part of the ongoing ‘Global War on Terror’ that followed the September 11 attacks in 2001.



This has translated into more security and soldiers on the roads.



The struggle to survive underlies the friendliness and graciousness of the population. Soft-spoken and extremely polite, the Somalis I meet are those who work in the security compound that is my temporary home, as well as government officials and businessmen in their elaborate offices. It’s strange but behind the sandbags, blast barriers, barbed wires and high walls, are impressive modern buildings.



We arrive at one in a more rural part of the Mogadishu outskirts after passing a man sauntering down the road with an AK47 assault rifle casually slung over his shoulder. The driver confirms he’s alShabaab.



Driving into the complex, two watchguards are fast asleep on dirty mattresses in the garden, using their PK machine guns as pillows. They yawn, eye us, turn over and go back to sleep.



March and April are the hottest seasons and temperatures can soar to 34 degrees with 83% humidity. In a few months, unless something drastic and unforeseen happens, the country will be battling its sixth consecutive drought season. Dotted around the capital are camps for internally-displaced people that date back years but which still see newcomers arriving on a daily basis. The orange tarpaulin stick-framed structures shelter the estimated 1.3 million people who’ve moved here from other parts of the country. Eighty percent are women and children.



My security detail prevents me from leaving the safety of an armed Land Cruiser whenever we are on the roads. The vehicle fights its way through checkpoints, competing with an endless stream of mostly red three-wheeled bajajis (tuk-tuks) careering around – by far the most popular mode of transport in Mogadishu.



Through the bulletproof windows, hand-painted shops and garage signs bring color and vibrancy to the streets. New coffee houses are springing up in an attempt to introduce a sense of normality to the beleaguered capital. Women carry bundles of firewood on their heads as they walk along the pavements in their colorful hijabs while men play boardgames, lounging outside on plastic chairs.



Dromedary camels are in the middle of everything, often resting in the shade of a palm tree. I wish I could see more. I wish I could walk these streets and chat with the vendors who are endlessly curious to see foreigners. The country has a lot to offer. There are a number of historical sites, beaches, waterfalls, mountain ranges and national parks. After dozens of meetings and a brief glimpse into Somali life, it’s the resilience and optimism of the people that touches me the most.



I’m showered with a lot of hospitality and care, and despite the country struggling with war and drought, there is a strong pride in being Somali. Down-to-earth, people here are generally happy with what they have. There might be a lack of development and overwhelming challenges but as more than one Somali told me: “I only have one passport and this is my home, I have no intention of going anywhere else.”

Mogadishu Street Life Goes On, Despite Risk Of Al Shabaab Attack

More To Mogadishu: The Resilience And Pride In Being Somali

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Although AI has become popular in recent months for its ability to perform advanced tasks and make life easier, there’s also increasing concern it can be used negatively, creating racial biases in the fields of healthcare, law enforcement and big tech.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Joy Buolamwini, a researcher at MIT,&nbsp;<a href="https://time.com/5520558/artificial-intelligence-racial-gender-bias/" target="_blank" rel="noreferrer noopener">discovered</a>&nbsp;some facial analysis software was unable to detect her face until she covered her dark skin with a white mask, and chalked this up to AI systems’ lacking data as they’re largely trained on white faces.



A major U.S. technology company claimed its facial recognition accuracy rate was 97%, but through her research, Buolamwini&nbsp;<a href="https://news.mit.edu/2018/study-finds-gender-skin-type-bias-artificial-intelligence-systems-0212" target="_blank" rel="noreferrer noopener">found</a>&nbsp;the company’s training set was more than 77% male and 83% white.



A&nbsp;<a href="https://www.hilarispublisher.com/open-access/face-verification-subject-to-varying-age-ethnicity-and-genderdemographics-using-deep-learning-2155-6180-1000323.pdf" target="_blank" rel="noreferrer noopener">report</a>&nbsp;published in the&nbsp;Journal of Biometrics and Biostatistics&nbsp;found Black women between the ages of 18 and 30 are the demographic with the poorest facial recognition accuracy.



A 2022&nbsp;<a href="https://dl.acm.org/doi/pdf/10.1145/3531146.3533138" target="_blank" rel="noreferrer noopener">study</a>&nbsp;conducted by institutions including Johns Hopkins University and the Georgia Institute of Technology programmed AI-trained robots to scan blocks with people’s faces from different races.



After the robots scanned the faces, they were tasked with designating which blocks were criminals—they consistently labeled the blocks with Black faces as criminals.



<h2 class="wp-block-heading" id="h-news-peg">NEWS PEG</h2>



In 2015, Google Photos came under fire after its AI-based search tool pulled images of Black people when the term “gorilla” was searched. After this controversy was revealed, Google stopped its software from categorizing any image as a “gorilla” and&nbsp;<a href="https://www.bbc.com/news/technology-33347866" target="_blank" rel="noreferrer noopener">promised</a>&nbsp;to fix the problem. However, after saving pictures of gorillas and different primates, a recent&nbsp;New York Times&nbsp;<a href="https://www.nytimes.com/2023/05/22/technology/ai-photo-labels-google-apple.html" target="_blank" rel="noreferrer noopener">report</a>&nbsp;found that the issue hadn’t been fixed, and Google Photos’ software was still programmed to prohibit generating any images categorized as gorillas. It wouldn’t generate images for searches of any primates.



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“AI is just software that learns by example,” Reid Blackman, who has advised companies and governments on digital ethics and wrote the book&nbsp;Ethical Machines,&nbsp;<a href="https://www.cnn.com/2023/03/18/politics/ai-chatgpt-racist-what-matters/index.html" target="_blank" rel="noreferrer noopener">told</a>&nbsp;CNN. “So, if you give it examples that contain or reflect certain kinds of biases or discriminatory attitudes . . . you’re going to get outputs that resemble that.”



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



According to a Pew Research&nbsp;<a href="https://www.pewresearch.org/short-reads/2023/04/20/most-americans-say-racial-bias-is-a-problem-in-the-workplace-can-ai-help/" target="_blank" rel="noreferrer noopener">poll</a>, 53% of Americans who believe racial and ethnic bias in the workplace is a problem think it would get better if employers used AI more in the hiring process, asserting that AI might potentially be beneficial in fighting against racial bias.



<h2 class="wp-block-heading" id="h-dermatology">DERMATOLOGY</h2>



According to a&nbsp;<a href="https://www.science.org/doi/10.1126/sciadv.abq6147" target="_blank" rel="noreferrer noopener">study</a>&nbsp;published in&nbsp;Science Advances,&nbsp;diagnostic and decision support tools used in dermatology are AI models trained on a dataset of skin tones and skin conditions. However, the dataset the AI is trained on is limited, as it lacks images of uncommon diseases, as well as diverse skin tones. A&nbsp;<a href="https://pubmed.ncbi.nlm.nih.gov/33969523/" target="_blank" rel="noreferrer noopener">study</a>&nbsp;published in the&nbsp;Archives of Dermatological Research&nbsp;found that Covid disproportionately affects non-white ethnic groups. However, the dataset used to train dermatologists included 92% of pictures of Covid skin lesions on fairer skin tones, only 8% showed lesions on more olive skin tones, and none of them included dark skin tones. Because skin conditions show up differently in different skin colors, the need for diverse training is essential. For example, melanoma is rare in African Americans, according to a&nbsp;Journal of the American Academy of Dermatology&nbsp;<a href="https://www.jaad.org/article/S0190-9622(03)02091-7/fulltext" target="_blank" rel="noreferrer noopener">report</a>, but because training and education on dark skin tones in the field of dermatology is poor, it’s more likely to go undiagnosed than in white Americans, leading to a drastically lower survival rate. A 2019&nbsp;<a href="https://pubmed.ncbi.nlm.nih.gov/31157429/" target="_blank" rel="noreferrer noopener">study</a>&nbsp;published in the&nbsp;British Journal of Dermatology&nbsp;found 47% of dermatologists felt they weren’t adequately trained to diagnose skin disease in people of color.



<h2 class="wp-block-heading" id="h-big-tech-companies">BIG TECH COMPANIES</h2>



In 2022, Apple was&nbsp;<a href="https://www.usatoday.com/story/tech/2022/12/27/apple-watch-blood-oxygen-oximeter-dark-skin-lawsuit/10955942002/" target="_blank" rel="noreferrer noopener">sued</a>&nbsp;over allegations that the Apple Watch’s blood oxygen sensor was racially biased against those with a darker skin tone. The Blood Oxygen app can measure oxygen levels in the blood by using sensors on the wrist, providing users with insights into their health, the app&nbsp;<a href="https://support.apple.com/en-us/HT211027" target="_blank" rel="noreferrer noopener">claims</a>. The lawsuit points to the Food and Drug Administration’s&nbsp;<a href="https://www.nejm.org/doi/10.1056/NEJMc2029240?url_ver=Z39.88-2003&amp;rfr_id=ori%3Arid%3Acrossref.org&amp;rfr_dat=cr_pub++0pubmed#article_citing_articles" target="_blank" rel="noreferrer noopener">review</a>&nbsp;of pulse oximeter technology created after the Covid pandemic increased its use in hospitals. The review found Black patients were almost three times more likely to have dangerously low blood oxygen levels go undetected by pulse oximetry compared to that of white patients. In an October 2022&nbsp;<a href="https://www.apple.com/healthcare/docs/site/Blood_Oxygen_app_on_Apple_Watch_October_2022.pdf" target="_blank" rel="noreferrer noopener">white paper</a>, Apple acknowledged the potential difficulties that come with pulse oximetry taking measurements on darker skin, but claimed its device “automatically adjusts . . . to ensure adequate signal resolution across the range of human skin tones.” In 2020, Twitter released its&nbsp;<a href="https://www.bbc.com/news/technology-57192898" target="_blank" rel="noreferrer noopener">photo cropping</a>&nbsp;feature, which crops and focuses on photos to allow for a better viewing experience, especially when scrolling through Twitter’s timeline. However, it was soon&nbsp;<a href="https://www.reuters.com/article/global-tech-race-twitter-idUKL5N2GI5R2" target="_blank" rel="noreferrer noopener">revealed</a>&nbsp;that the tool favored white faces, focusing on their faces in the photo preview and only revealing the Black faces when the users clicked to view the full photo. This led Twitter to&nbsp;<a href="https://blog.twitter.com/engineering/en_us/topics/insights/2021/sharing-learnings-about-our-image-cropping-algorithm" target="_blank" rel="noreferrer noopener">research</a>&nbsp;the algorithm, and it found in 2021 that it indeed had racial bias that favored white faces, leading to the company ditching the feature.



<h2 class="wp-block-heading" id="h-law-enforcement">LAW ENFORCEMENT</h2>



Facial recognition software is used in a number of different entities, including on smartphones, for police face recognition, airport passenger screening and employment decisions. However, the AI behind facial recognition has proven to be used to promote a racial bias.&nbsp;<a href="https://sitn.hms.harvard.edu/flash/2020/racial-discrimination-in-face-recognition-technology/" target="_blank" rel="noreferrer noopener">According</a>&nbsp;to Harvard’s Science in the News, police facial recognition software is trained on mugshot data, in which Black people are overrepresented. Racist policing strategies contribute to this, like the New York Police Department maintaining a&nbsp;<a href="https://www.stopspying.org/latest-news/2019/7/23/the-nypds-gang-database-a-new-age-of-stop-and-frisk" target="_blank" rel="noreferrer noopener">database</a>&nbsp;of “gang-affiliated” people made up of 99% Black and Latino people, though there are no requirements to prove these people are gang affiliated, thus incentivizing false reports.&nbsp;<a href="https://www.sciencedirect.com/science/article/abs/pii/S0740624X22000892?via%3Dihub" target="_blank" rel="noreferrer noopener">Research</a>&nbsp;published in&nbsp;Science Direct&nbsp;found law enforcement agencies that use AI-based facial recognition technology disproportionately arrest Black people due to their overwhelming presence in the training dataset.&nbsp;<a href="https://www.ajl.org/facial-recognition-technology" target="_blank" rel="noreferrer noopener">According</a>&nbsp;to the Algorithmic Justice League, “Face surveillance threatens rights including privacy, freedom of expression, freedom of association and due process.” Its controversial use in law enforcement has led to several cities across the country&nbsp;<a href="https://www.eff.org/deeplinks/2022/05/movement-ban-government-use-face-recognition" target="_blank" rel="noreferrer noopener">banning</a>&nbsp;police from using facial recognition.



<h2 class="wp-block-heading" id="h-related-targeting-ethnic-groups">RELATED: TARGETING ETHNIC GROUPS</h2>



Israeli authorities are relying on facial recognition to track Palestinians and restrict their passage through key checkpoints, according to a&nbsp;<a href="https://www.amnesty.org/en/documents/mde15/6701/2023/en/" target="_blank" rel="noreferrer noopener">report</a>&nbsp;by Amnesty International. The software, known as Red Wolf, is used at checkpoints, scanning Palestinians’ faces and using a color-coded system of either green, yellow or red to determine whether to allow them to pass, stop them for questioning or deny entry. This is just the latest example of Israel restricting Palestinians’ freedom of movement as the software heavily focuses on Palestinians, Amnesty argues, and the report calls it an “automated apartheid.” China has also used AI and facial recognition to identify minorities. The country came under fire for using the technology to racially profile the Uyghurs, a vastly Muslim minority group, the&nbsp;New York Times&nbsp;<a href="https://www.nytimes.com/2019/04/14/technology/china-surveillance-artificial-intelligence-racial-profiling.html" target="_blank" rel="noreferrer noopener">reports</a>. The facial recognition technology is embedded into China’s widespread network of surveillance cameras and exclusively looks for Uyghurs based on how they look, keeping a record of where they’re coming from—and going to. The U.S. even&nbsp;<a href="https://www.theguardian.com/world/2022/jan/06/china-sensetime-facial-recognition-uyghur-surveillance-us-sanctions" target="_blank" rel="noreferrer noopener">sanctioned</a>&nbsp;SenseTime, China’s largest facial recognition firm, for its alleged role in the surveillance of the Uyghurs.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.nytimes.com/2019/04/14/technology/china-surveillance-artificial-intelligence-racial-profiling.html" target="_blank" rel="noreferrer noopener">Google’s Photo App Still Can’t Find Gorillas. And Neither Can Apple’s</a>&nbsp;(New York Times)



<a href="https://www.forbes.com/sites/ariannajohnson/2023/04/14/youre-already-using-ai-heres-where-its-at-in-everyday-life-from-facial-recognition-to-navigation-apps/?sh=37c1cfb127ac">You’re Already Using AI: Here’s Where It’s At In Everyday Life, From Facial Recognition To Navigation Apps</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/ariannajohnson/2023/04/10/heres-how-to-use-ai-like-chatgpt-and-bard-for-everyday-tasks-like-creating-a-budget-finding-airfare-or-planning-meals/?sh=43627396190d">Here’s How To Use AI—Like ChatGPT And Bard—For Everyday Tasks Like Creating A Budget, Finding Airfare Or Planning Meals</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/ariannajohnson/2023/04/25/republicans-share-an-apocalyptic-ai-powered-attack-ad-against-biden-heres-how-to-spot-a-deepfake/?sh=4ac38d717753">Republicans Share An Apocalyptic AI-Powered Attack Ad Against Biden: Here’s How To Spot A Deepfake</a> (Forbes)

Students Working On Computer Assignment During Seminar Group

Racism And AI: Here’s How It’s Been Criticized For Amplifying Bias

Where does the continent fit into the chatbot conversation, and why it needs its own startups that focus on AI.



The ability to be able to have a conversation with someone else is a fundamental part of what it means to be a human being but today, it’s becoming more and more confusing to figure out whether you’re talking to a bot… or not.



Technology has advanced to the point where AI-powered conversational chatbots, like ChatGPT or Meta’s BlenderBot 3, are deceptively realistic. (More so when they go off the rails and say things like ‘I want to be alive’, which is exactly what Bing’s AI bot expressed earlier this year.) While chatbots like these are trained to avoid expressing personal or biased views, and are known to make factual mistakes and mix up information, they’re becoming smarter, more streamlined and sometimes, a little strange…



“Conversational AI is one of the first applications of NLP in artificial intelligence and this kind of technology has existed since Eliza in the sixties,” explains Professor Mpho Raborife, the deputy director at the Institute for Intelligent Systems at the University of Johannesburg in South Africa.



Natural Language Processing, or NLP, is a way for computers to understand human language. NLP uses AI tools like machine learning and neural networks to process and interpret large amounts of data.



“With the rise of big data, ChatGPT was inevitable. It’s trained on a very large dataset and the technologies behind it make it a lot more advanced than other conversational AI applications.”



One of the reasons for this, explains Raborife, is that ChatGPT uses reinforcement learning alongside sophisticated algorithms that manipulate its dataset. “It’s so sophisticated that people don’t realize that it really possesses no intelligence whatsoever,” she adds, “it really doesn’t understand the meaning behind anything, it just know how the words are supposed to work but not what they mean.”



OpenAI’s ChatGPT is a research experiment gone wild that has shown the incredible potential of conversational AI yet Africa is still being left behind. Consider smartphone voice assistants like Siri or Alexa – both examples of conversational AI used regularly; they work with English but struggle to understand local accents. They don’t support African languages.



“We know that the Global North is not going to include our languages. Therefore, we need to find a way to make sure that we create an environment that the startups that come from Africa which do incorporate our languages have the same kind of impact,” Raborife adds. Duolingo, for example, is a popular language learning mobile app that uses an AI system called Birdbrain to personalize its content. Duolingo has 43 different languages (including made-up dialects such as Klingon, High Valyrian and Esperanto) but only isiZulu and Swahili are available when it comes to African language learning courses.



“When we talk about AI, our languages are not supported or even represented by these technologies,” says Raborife. “But conversational AI has the potential to bridge the language divide as it can be used in a variety of ways because it surpasses literacy levels. If people cannot read or write, they can use their voice to access services and this is something that is important to Africa.



This is why we need our own startups that focus on AI. Recently launched, Lelapa AI is an African AI research and product house looking to make a real difference within the continent with a special interest in agriculture, education, energy, healthcare, microfinance and language.



“There are so many problems on the continent that AI-type technologies can help with so there’s a responsibility for us to use our skills to help create better lives for everyday Africans,” says Pelonomi Moiloa, Lelapa AI’s co-founder and CEO. 



“What we intend to do is use technology in a very smart, resource-efficient way because there are challenges on the continent like rolling blackouts, water shortages and network issues…” Lelapa AI have already debuted an app called VulaVula which offers NLP-as-a-service for under-represented languages. Moiloa describes VulaVula as an underlying technology that supports other technologies. A banking chatbot, for example, could use VulaVula’s AI language capabilities to help customers interact in their own languages.



“The idea is that if an organization has a place for us to plug our models into and we can collaborate agreements around how that work can be done, then – ideally – if we have the resources and capacity we will help businesses do what they need.”



For Moiloa, creating African data sets to work from may be challenging but it’s also something she sees as a competitive advantage for Lelapa AI. “We’re having to think around clever ways of dealing with Africa’s data scarcity problem. We have to create models that are able to cope with less amounts of data, but models that can get really good at curating and gathering data,” she says.



And the fact that ChatGPT doesn’t necessarily draw its information from African data sets (it was apparently trained using real human conversations) means startups like Lelapa AI have the opportunity to develop responsible methods of dealing with problems that are relevant to the continent.



“I don’t think we should be trying to develop our own ChatGPT but maybe we can develop other textual tools that can help solve the problems that ChatGPT is meant to – but at the moment, it seems to be creating more problems,” she ends.

AI (Artificial Intelligence) concept. Electronic circuit. Communication network.

Talking A-‘bot Africa: The Potential For Conversational AI

<h2 class="wp-block-heading">TOPLINE</h2>



Eric Schmidt, who served as Google’s CEO from 2001 to 2011, said Wednesday that artificial intelligence could cause people to be “harmed or killed” amid possible “existential risks,” adding to concerns from other tech executives over the development of AI.



<h2 class="wp-block-heading">KEY FACTS</h2>



Schmidt, who&nbsp;<a href="https://www.wsj.com/video/events/life-with-ai/F13F8BDE-2AB5-4BA1-9191-997FC338C1AF.html" target="_blank" rel="noreferrer noopener">spoke</a>&nbsp;during the&nbsp;Wall Street Journal’s CEO Council Summit Wednesday, warned AI poses risks that “is defined as many, many, many, many people harmed or killed.”



Schmidt—who also served as the executive chairman of Alphabet from 2015 to 2017—suggested regulations on AI is a “broader question for society,” adding he believes it is unlikely the U.S. will establish a regulatory agency.



Sundar Pichai, CEO of Google and Alphabet,&nbsp;<a href="https://www.ft.com/content/8be1a975-e5e0-417d-af51-78af17ef4b79" target="_blank" rel="noreferrer noopener">wrote</a>&nbsp;in the&nbsp;Financial Times&nbsp;that “AI is the most profound technology humanity is working on today,” adding it is important to “make sure as a society we get it right.”



Twitter CEO Elon Musk and Apple cofounder Steve Wozniak signed a&nbsp;<a href="https://futureoflife.org/open-letter/pause-giant-ai-experiments/" target="_blank" rel="noreferrer noopener">letter</a>&nbsp;in March alongside politician Andrew Yang, Skype cofounder Jaan Tallinn, Pinterest cofounder Evan Sharper and Ripple cofounder Chris Larson, which urged AI labs to “immediately pause” work to slow down an “out-of-control race” to develop the technology.



OpenAI CEO Sam Altman&nbsp;<a href="https://www.youtube.com/watch?v=mL5wI3tkXkw&amp;ab_channel=ABCNews" target="_blank" rel="noreferrer noopener">told</a>&nbsp;ABC News in March that his company was “a little bit scared” over AI’s potential, adding it “will be the greatest technology humanity has yet developed.”



<h2 class="wp-block-heading">CRUCIAL QUOTE</h2>



Schmidt warned, “There are scenarios—not today, but reasonably soon, where these systems will be able to find zero-day exploits in cyber issues, or discover new kinds of biology,” adding, “When that happens, we want to be ready to know how to make sure these things are misused by evil people.”



<h2 class="wp-block-heading">CONTRA</h2>



Billionaire philanthropist Bill Gates has applauded the possible impact AI could have on society, noting he has seen “stunning” advancements in recent months. Microsoft, which Gates founded in 1975, has&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/01/23/chatgpt-parent-open-ai-gets-game-changing-multibillion-dollar-boost-from-microsoft/?sh=2f9a49cc3c0c">reportedly</a>&nbsp;invested $10 billion in OpenAI. Gates acknowledged the issues raised in the letter signed by Musk and others in a&nbsp;<a href="https://www.gatesnotes.com/The-Age-of-AI-Has-Begun" target="_blank" rel="noreferrer noopener">blog post</a>, though he noted any social concerns about the technology should be regulated by the government in an effort to ensure it was used for good. Gates also&nbsp;<a href="https://www.forbes.com/sites/anafaguy/2023/03/21/bill-gates-thinks-ai-will-revolutionize-healthcare-for-worlds-poorest/?sh=653e3470d192">suggested</a>&nbsp;AI could be used to improve productivity, reduce global preventable deaths among children and improve inequity in American education.



<h2 class="wp-block-heading">FORBES VALUATION</h2>



Schmidt, who also cofounded the venture capital firm Innovation Endeavors, is worth $20.1 billion, according to our&nbsp;<a href="https://www.forbes.com/profile/eric-schmidt/?sh=6e033446138e">estimates</a>.



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



Schmidt’s warning follows his time on the National Security Commission on Artificial Intelligence, which released a&nbsp;<a href="https://www.nscai.gov/wp-content/uploads/2021/03/Full-Report-Digital-1.pdf" target="_blank" rel="noreferrer noopener">report</a>&nbsp;in 2021 that indicated the U.S. government was “not today prepared for this new technology.” Schmidt also called for increasing the nation’s budget for research and development to $2 billion in 2022, and then doubling contributions until it reached $32 billion in 2026. The White House&nbsp;<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/04/fact-sheet-biden-harris-administration-announces-new-actions-to-promote-responsible-ai-innovation-that-protects-americans-rights-and-safety/" target="_blank" rel="noreferrer noopener">released</a>&nbsp;a plan earlier this month to tackle possible risks from AI, including $140 million in funding to establish research institutes to drive responsible innovation. Calls for regulating AI have accelerated in recent months following the launch of OpenAI’s ChatGPT late last year. Other companies—including Google—have since released their own iterations of AI chatbots.



<h2 class="wp-block-heading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/roberthart/2023/03/29/elon-musk-and-tech-leaders-call-for-ai-pause-over-risks-to-humanity/?sh=5275dbea6dfc">Elon Musk And Tech Leaders Call For AI ‘Pause’ Over Risks To Humanity</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/alexkonrad/2023/02/06/bill-gates-openai-microsoft-ai-hottest-topic-2023/?sh=6a484d444777">Exclusive: Bill Gates On Advising OpenAI, Microsoft And Why AI Is ‘The Hottest Topic Of 2023’</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/anafaguy/2023/03/21/google-releases-bard-ai-chatbot-amid-competition-with-chatgpt/?sh=5c5f07bb32b7">Google Releases Bard AI Chatbot Amid Competition With ChatGPT</a> (Forbes)



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<a href="https://www.forbes.com/sites/antoniopequenoiv/2023/05/24/microsoft-says-china-hackers-targeted-critical-us-infrastructure-in-guam-a-key-military-asset-in-the-pacific/"></a>



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National Security Commission Holds Conference On Artificial Intelligence

Former Google CEO Warns AI Could Cause People To Be ‘Harmed Or Killed’

<h2 class="wp-block-heading" id="h-top-line">Top Line</h2>



Buckingham Palace in the United Kingdom (UK) has yet again reportedly declined a request to return the remains of an Ethiopian prince, Prince Dejatch Alemayehu, who came to be buried at Windsor Castle in the 19th Century. The re-emergence of this subject has caused a furore on social media with users calling the refusal “revolting”.



<h2 class="wp-block-heading">Key Facts</h2>



The descendants of Prince Alemayehu have made it abundantly clear that “it was not right” for him to be buried in another country other than his own.



&#8220;We want his remains back as a family and as Ethiopians because that is not the country he was born in,&#8221; one of the royal descendants, Fasil Minas, told the BBC.



However, a Buckingham Palace spokesperson has stated that removing his remains could affect others buried in the catacombs of St George’s Chapel in Windsor Castle.



“It is very unlikely that it would be possible to exhume the remains without disturbing the resting place of a substantial number of others in the vicinity,” the palace said, according to the BBC.



Social media users are up in arms by this decision with many calling for Buckingham Palace to not only return the remains of Alemayehu but other priceless artifacts that “do not belong to them”.



“It’s revolting how the monarchy won’t return the remains of Prince Alemayehu who they kidnapped from Ethiopia. So many of the world’s priceless artifacts were stolen by them and The British Museum, and should be returned.” 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">It’s revolting how the monarchy won’t return the remains of Prince Alemayehu who they kidnapped from Ethiopia. So many of the world’s priceless artifacts were stolen by them and The British Museum, and should be returned. <a href="https://t.co/SAJLJTlzMz">pic.twitter.com/SAJLJTlzMz</a>&mdash; Merone (@Merone) <a href="https://twitter.com/Merone/status/1661077095793999872?ref_src=twsrc%5Etfw">May 23, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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“The idea that the British royals are somehow entitled to the body of Prince Alemayehu, even in death, is nothing short of grotesque. But it’s not unrelated to the fact that the young man was taken to England with a huge hoard of artifacts.” 



<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The idea that the British royals are somehow entitled to the body of Prince Alemayehu, even in death, is nothing short of grotesque. But it’s not unrelated to the fact that the young man was taken to England with a huge hoard of artifacts. <a href="https://t.co/b5od93LE9C">pic.twitter.com/b5od93LE9C</a>&mdash; Aparna Nair (@DisabilityStor1) <a href="https://twitter.com/DisabilityStor1/status/1660982626612641792?ref_src=twsrc%5Etfw">May 23, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Return Prince Alemayehu to his home, he was captured in war&#8230;.British Royal family truly is savage and barbaric to deny this child peace in his death&#8230;.Shame on you King Charles and Buckingham Palace, treating a human being as looted treasure and denying him dignity in death <a href="https://t.co/vlrK3M5Ujb">pic.twitter.com/vlrK3M5Ujb</a>&mdash; Renee (@Aditiya_renee) <a href="https://twitter.com/Aditiya_renee/status/1660702214816448525?ref_src=twsrc%5Etfw">May 22, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">How colonizers colonize&#8230;.If the price of righting this wrong is to &quot;disturb&quot; Windsor burial sites, that&#39;s what consequences mean for a stealing a life, and a body. &quot;British royals refuse to return the remains of &#39;stolen&#39; teenage prince&quot; <a href="https://twitter.com/hashtag/PrinceAlemayehu?src=hash&amp;ref_src=twsrc%5Etfw">#PrinceAlemayehu</a> <a href="https://t.co/5hp9dt6jci">https://t.co/5hp9dt6jci</a>&mdash; karla fc holloway (@ProfHolloway) <a href="https://twitter.com/ProfHolloway/status/1661021336087715845?ref_src=twsrc%5Etfw">May 23, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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The history of the prince’s story is well documented in both Ethiopia as well as in British society. At just seven years old, Prince Alemayehu was taken to the UK by British army officer Captain Tristram Speedy. As the son of one of the most prominent rulers in Ethiopian history, Emperor Tewodros II; Tewodros committed suicide as the British troops stormed the citadel of Magdala.



In 1868, British soldiers “looted” Tewodros’ imperial fortress after the battle, plundering thousands of cultural and religious artifacts such gold crowns, manuscripts, necklaces and dresses.



According to reports, once in the UK, Speedy presented the Prince to Queen Victoria who allegedly sympathized with the prince and agreed to support him financially. Multiple tales in history, including a diary entry by Queen Victoria, note how despite receiving a British Education, the rest of his upbringing he was miserable. Historians say that he was “deeply unhappy” during his time at



prestigious boarding schools like Rugby and Sandhurst military college as he frequently encountered racism, and that his requests to return home were ignored.



He died of pneumonia at age 18 and, at the reported request of Queen Victoria, was entombed in the catacombs in a corner of St George&#8217;s Chapel at Windsor Castle, the royal residence west of London.



This is not the first time that a request has been made to the Royal Family to return the remains of Alemayehu. According to The Guardian, the campaign to return the Prince to his home country began as early as 2006 with the late Queen Elizabeth II “rebuffing” the request. According to the Ethiopian embassy, the Lord Chamberlain replied on behalf of the Queen, saying “while Her Majesty was in favour of repatriation […] identifying the remains of young Prince Alemayehu would not be possible”. The prince’s remains had been added to a grave at St George’s Chapel with nine others.



This is a developing story: FORBES AFRICA reached out to the British Museum and Embassy of Ethiopia in London, but did not receive comment from either at the time of publication.

Dejatch Alamayou, King Theodore’s Son.

‘We Want His Remains Back’ Says Descendants Of Ethiopian Prince To Royal Family, But Palace Refuses

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Netflix users in the U.S. will no longer be able to share accounts with others who don’t live with them, the company&nbsp;<a href="https://about.netflix.com/en/news/update-on-sharing-may-us" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;Tuesday, after the same password crackdown was instituted in four other countries earlier this year.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



Netflix&nbsp;<a href="https://about.netflix.com/en/news/update-on-sharing-may-us" target="_blank" rel="noreferrer noopener">told</a>&nbsp;U.S. users an “account is for use by one household,” urging subscribers to sign out their accounts on devices that “shouldn’t” have access to the user’s account, and set a primary location for the account.



Netflix users who want to share their account with someone outside their household can either pay $7.99 for a “sub account” or they can transfer a profile to a new membership that someone else pays for—a move that would allow users to keep their watch history and saved list.



Users will still be able to watch Netflix from their personal devices or log into new TVs at hotels or other locations, the company&nbsp;<a href="https://about.netflix.com/en/news/update-on-sharing-may-us" target="_blank" rel="noreferrer noopener">said</a>.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Earlier this year, Netflix&nbsp;<a href="https://about.netflix.com/en/news/an-update-on-sharing" target="_blank" rel="noreferrer noopener">announced</a>&nbsp;it was instituting password-sharing restrictions in Canada, New Zealand, Portugal and Spain. At the time, Netflix said similar measures would be coming to the U.S. in the coming months. Netflix began testing paid sharing, with the same restrictions U.S. users will now face, in its Latin America market last year. Netflix is one of the first major streaming services to start cracking down on password sharing, in a move likely prompted by&nbsp;<a href="https://www.forbes.com/sites/marisadellatto/2022/08/09/netflix-loses-subscribers-as-disney-catches-up-heres-how-the-major-streaming-services-are-faring-so-far-this-year/?sh=2f446c22a1c4">last year’s</a>&nbsp;loss of subscribers and the need for additional revenue.



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



100 million.&nbsp;As of February, that’s how many households share their passwords, Netflix&nbsp;<a href="https://about.netflix.com/en/news/an-update-on-sharing" target="_blank" rel="noreferrer noopener">said</a>.



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<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/anafaguy/2023/02/08/netflix-password-crack-down-begins-in-canada-new-zealand-portugal-spain/?sh=3ff300a22f34">Netflix Password Crack Down Begins In Canada, New Zealand, Portugal, Spain</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/anthonytellez/2023/02/02/netflixs-password-sharing-crackdown-and-what-amazon-prime-hulu-others-are-doing-explained/?sh=61031c7d56ea">Netflix’s Password Sharing Crackdown—And What Amazon Prime, Hulu, Others Are Doing—Explained</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/marisadellatto/2022/08/09/netflix-loses-subscribers-as-disney-catches-up-heres-how-the-major-streaming-services-are-faring-so-far-this-year/?sh=2f446c22a1c4">Netflix Loses Subscribers As Disney+ Catches Up: Here’s How The Major Streaming Services Are Faring So Far This Year</a>&nbsp;(Forbes)



CORRECTION (5/23): This story has been updated to clarify that Netflix users will not have to set a primary location and to clarify that users will not need one-time access codes to log into Netflix from other locations.

In this photo illustration the Netflix logo seen displayed

Netflix Starts Long-Awaited Password-Sharing Crackdown—Here’s How

A recent cholera outbreak outside the administrative capital of Tshwane has led to at least 15 deaths and dozens hospitalized. While the source of the outbreak is yet to be confirmed, residents and analysts point to long-running water quality and supply issues in the area as a failure of service delivery.



South Africa is grappling with a devastating cholera outbreak just outside the administrative capital of Tshwane in Hammanskraal in northern Gauteng province. The outbreak has claimed at least 15 lives and left another 34 individuals hospitalized.



This severe bacterial outbreak, which leads to intense dehydration and can ultimately be fatal, is typically associated with unsafe, contaminated water supplies. Hammanskraal, a rural township on the outskirts of Tshwane, has grappled with water supply issues for at least a decade. In 2021, an independent commission of enquiry found that the local Rooiwal Water Treatment Plant has borne the brunt of the responsibility for the poor water quality and supply afflicting the residents.



The Gauteng Department of Health confirmed on Sunday the presence of cholera in the region based on lab results of stool specimens collected from 19 individuals. These patients presented themselves at Jubilee District Hospital, exhibiting symptoms including diarrhea, stomach cramps, and nausea.



Deputy Minister of Human Settlements, Water and Sanitation David Mahlobo underscored the severity of the water supply and quality issues during a media briefing. He pointed to the constant upheaval within the metro governance as a significant contributor to these issues. Mahlobo stated, &#8220;The Rooiwal Wastewater Treatment, the frequent change of mayors in the City of Tshwane, and defaults on agreements are at the epicenter of the Hammanskraal water issues.&#8221;



Residents have not remained silent on these issues, with protests against poor water quality taking place as recently as March of this year. However, this is not a new challenge for residents – in 2014, about 73 people were treated for cholera-like symptoms within a single week at the local Jubilee Hospital, leading to an intervention from the then mayor and a task-team being formed.



Fast forward to 2021, both an independent commission of enquiry and a report produced by the South African Human Rights Council found that the water supplied to Hammanskraal residents was contaminated. They stated that the City of Tshwane had neglected its obligation to provide basic services to its residents.



The city&#8217;s political landscape hasn&#8217;t helped matters, with reported political infighting within the City of Tshwane, which has seen five mayors in as many years, being a significant impediment to service delivery. The incumbent mayor, Cilliers Brink of the opposition party the Democratic Alliance (DA) attempted to visit Hammanskraal yesterday for a site visit, before being chased away by residents furious over lack of service delivery.



In a video statement Brink confirmed that tap water testing revealed no E. Coli bacteria, adding that the source of the outbreak is yet to be confirmed and cautioned residents against consuming tap water without proper treatment.



To deal with the outbreak, water tankers, social workers, additional wards, and nursing staff have been mobilized. Despite these efforts, and with Jubilee Hospital being overwhelmed, the future seems bleak for the residents of Hammanskraal who have had to endure more than a decade of inadequate water quality and supply.



One resident, speaking to FORBES AFRICA outside Jubilee Hospital, succinctly captured the mood of the people: &#8220;It&#8217;s been so long overdue. People have died.&#8221;

Cholera Outbreak In Hammanskraal

Cholera Outbreak Exposes Long-Running Water Crisis Outside South Africa’s Administrative Capital

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Facebook’s parent Meta has been ordered to pay a record $1.3 billion (€1.2 billion) fine by the European Union, for failing to adhere to the bloc’s stringent privacy rules, in the latest severe financial penalty handed to an American tech giant by the EU.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



The ruling was&nbsp;<a href="https://www.dataprotection.ie/en/news-media/press-releases/Data-Protection-Commission-announces-conclusion-of-inquiry-into-Meta-Ireland" target="_blank" rel="noreferrer noopener">issued</a>&nbsp;by the Irish Data Protection Commission, Meta’s chief regulator in the EU, as the company’s regional headquarters are located in Dublin.



The amount is the largest fine issued under the European Union’s General Data Protection Regulation, which has previously snagged the likes of Amazon and Google.



The Irish DPC said its investigation into Meta found that the company failed to address the risks to “the fundamental rights and freedoms” of EU citizens whose data it was transferring to the U.S.



Aside from the record fine, the regulator has ordered Meta to suspend “any future transfer of personal data” to the U.S. within the next five months.



Meta also has been given six months to stop the “unlawful processing” and storage of personal data of EU residents in the U.S.



In a lengthy blog post, Meta’s chief legal officer Jennifer Newstead and top spokesperson Nick Clegg said the penalty is “flawed” and “unjustified,” setting a “dangerous precedent for the countless other companies transferring data between the EU and US.”



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



The Irish DPC’s decision is part of a wider tussle between the European Union and American tech companies over cross-border data flows. Tech companies have long argued that the free flow of data across borders is essential for a global internet and attempts to prevent this will fragment the web and dramatically raise costs. In 2020, the European Court of Justice canceled a data flow agreement between the U.S. and the EU due to concerns over the surveillance practices of U.S. law enforcement and intelligence agencies. Since then, American and European officials have been working together to come up with a new data flow agreement, which is expected to be finalized later this year. U.S. tech giants, left in legal limbo in the meantime, have relied on alternate methods to transfer data, including something called standard contractual clauses (SCCs). The DPC’s investigation, however, found that Meta’s use of the SCCs failed to mitigate the risks identified by the European top court’s ruling.



<h2 class="wp-block-heading" id="h-surprising-fact">SURPRISING FACT</h2>



In its statement, the DPC said it disagreed with the fine imposed on Meta, but it was forced to go ahead with it due to a decision by the pan-EU European Data Protection Board (EDPB). The EDPB’s intervention came after the DPC’s original ruling in the case—which only suspended Facebook’s data flows—faced opposition from four other national regulators in the bloc, who demanded a monetary fine.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



New York-listed shares of Meta actually rose 2.5% in early trading, hovering near a 15-month high.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.bloomberg.com/news/articles/2023-05-22/meta-fined-record-1-3-billion-in-eu-over-us-data-transfers?leadSource=uverify+wall" target="_blank" rel="noreferrer noopener">Meta Fined Record €1.2 Billion in EU Over US Data Transfers</a>&nbsp;(Bloomberg)

Facebook Covers Sign At Menlo Park Headquarters

Meta Fined Record $1.3 Billion For Violating EU Privacy Rules

March 1 marked the beginning of my term as Rector of the United Nations University (UNU). Along with my initial excitement and ambition is the recognition that I am starting my Rectorship in an era defined by our shared efforts to address immense challenges — climate change, lasting peace, and sustainable development for all. 



It is also an era where technology will play a pivotal role in our success, challenge our ethics, and reshape our values. UNU’s contributions and expertise are more vital than ever as we approach the 2030 Sustainable Development Goals’ (SDGs) deadline and overcome the very real SDG setbacks caused by the Covid-19 pandemic and our structural inequalities. 



Access, distribution and capacity are demonstrably skewed, and our divisions have grown. As a 2021 UN report on the SDGs found, the SDGs have long been off track. If we hope to reverse this trend, we will all have to work hard to achieve them. The work of UNU and our partners must be grounded in justice that transcends our physical, mental, and digital capacities.



In Africa, the challenges of achieving the SDGs are compounded. This is because development seems to have stalled. A 2022 Organisation for Economic Co-operation and Development (OECD) publication demonstrated that Africa’s growth rates in the aftermath of the Covid-19 pandemic hindered its convergence with other global economies. This lag in growth is, in turn, stunting the continent’s development and has pushed more than 29 million people into extreme poverty.



The research and application thereof that emerges from the UNU present a unique opportunity to emerge from this malaise while addressing broader global challenges. Hassatou Diop N’Sele of the African Development Bank (AfDB) stated in an October 2022 report: “The economic and security shocks experienced by Africa over the last few years have been devastating, both in their reach and their repercussions. If there was ever a time to reaffirm the relevance and critical role of security and its interrelation with development, that time is now.”



To help meet these challenges, three principal actions need to be implemented by UNU. First, we should raise the University’s global profile. Second, we should expand the activities of UNU, especially in the Global South. And third, we should increase UNU’s capacity in teaching, learning, research, and policy-work in partnership with universities and other key stakeholders worldwide.



We need to mobilize financial, political, human and intellectual resources in both the Global South and Global North to achieve these goals. UNU should continue to create partnerships that provide sustainable support for our work in new regions and communities. We should use digital platforms to expand the teaching, learning, research, and policy offerings of UNU. 



We should produce and spread digital programs primarily targeting a just transition to the fourth industrial revolution. We should prioritize using artificial intelligence and other technologies for responsible, peaceful, and sustainable policies and applications. We need to further UNU’s role as a critical player in tackling contemporary global challenges and position UNU as an essential intellectual resource for stakeholders worldwide.



The work currently being done by the UNU is innovative, exciting and impactful in positing sustainable solutions. The institutes and programs now span Japan, China, Malaysia, Finland, Germany, Holland, Portugal, Ghana, Belgium, Venezuela, New York and Canada. There is a call to expand further into the Global South physically and through our work. 



Additionally, there is a call for a greater focus on technology. As the pandemic has demonstrated, we are deeply entrenched in a digital era characterized by intelligent technology. It would be myopic to approach any of our shared challenges without an awareness of this context or to use these tools to contribute towards sustainability. As a 2020 PwC report states: “For all the potential that these technologies offer, however, they could also put greater stress on the Earth, its resources, and on our society.



We should ensure, therefore, that these technologies are harnessed in the right way, to fulfil their potential to revolutionize our world, transform the lives of people, and unlock new pathways to prosperity – fast-tracking sustainable development globally.”



My approach to UNU in the coming months will be a convergence of the emphasis on the solid collaboration network that spans from the Global South to the North facilitated by technology to achieve lasting peace and sustainable development. This is how we create a more equitable world and ensure that Africa and the rest of the world are part of the conversation and action.



The writer is a Rector of the United Nations University based in Tokyo.

Aerial view of a green highway and railway tunnel covered with solar panels in Belgium.

A Critical Player In Tackling Contemporary Global Challenges: An Africa Perspective

<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Instagram has been secretly testing a text-based app similar to Twitter for months with celebrities and influencers and is preparing to launch it as early as June, Bloomberg&nbsp;<a href="https://www.bloomberg.com/news/articles/2023-05-19/instagram-readies-twitter-competitor-for-summer-release?srnd=premium&amp;leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;Friday, as some people look to leave Twitter due to changes made under CEO Elon Musk.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



The app will be separate from Instagram—which is owned by Meta—though users will be able to connect their accounts and follow all of the people they follow on Instagram on the new app with just one click, according to a&nbsp;<a href="https://twitter.com/liahaberman/status/1659553280891179010/photo/1" target="_blank" rel="noreferrer noopener">screenshot</a>&nbsp;posted by Lia Haberman, professor of social and influencer marketing at UCLA and author of the newsletter&nbsp;<a href="https://liahaberman.substack.com/" target="_blank" rel="noreferrer noopener">ICYMI</a>.



The app may eventually be compatible with others attempting to appeal to former Twitter users—including Mastodon—according to Haberman’s screenshot, which says users on Mastodon will “soon” be able to follow and interact with posts on Meta’s new platform without needing to create a new account.



Haberman said users will be able to post up to 500 characters of text, along with images and pictures.



Meta has been testing the new app secretly with celebrities and influencers for months, people familiar with the project told Bloomberg.



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



In March, Money Control first&nbsp;<a href="https://www.platformer.news/p/meta-is-building-a-decentralized" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that Meta was exploring the creation of a social network for text updates to compete with Twitter. Shortly after that, Meta officials&nbsp;<a href="https://www.platformer.news/p/meta-is-building-a-decentralized" target="_blank" rel="noreferrer noopener">told</a>&nbsp;Platformer they “believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests.” Many users have been looking for an alternative to Twitter since billionaire Elon Musk took over in October 2022 and began quickly making changes to the platform ranging from&nbsp;<a href="https://www.forbes.com/sites/mollybohannon/2023/05/12/heres-how-twitters-appearance-has-changed-under-elon-musk/?sh=75eb23385f68">adding</a>&nbsp;an algorithm-driven “For You” page to charging people to be verified and get access to features like an edit button. Mastodon launched shortly after Musk bought Twitter, offering a similar&nbsp;<a href="https://joinmastodon.org/" target="_blank" rel="noreferrer noopener">platform</a>&nbsp;but with “no algorithms or ads to waste your time.” But it doesn’t seem that platform is filling the need.&nbsp;Wired&nbsp;<a href="https://www.wired.com/story/the-mastodon-bump-is-now-a-slump/" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that Mastodon’s number of active users had fallen to 1.4 million at the end of January—dropping by more than one million—since people flocked to it in November 2022.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



A recent&nbsp;<a href="https://www.pewresearch.org/short-reads/2023/05/17/how-us-adults-on-twitter-use-the-site-in-the-elon-musk-era/" target="_blank" rel="noreferrer noopener">study</a>&nbsp;by Pew Research Center found that while people are still logging on Twitter, the most active Twitter users are posting about 25% less after Musk’s acquisition. The study also found that six in 10 Americans who used Twitter in the past year&nbsp;<a href="https://www.pewresearch.org/short-reads/2023/05/17/majority-of-us-twitter-users-say-theyve-taken-a-break-from-the-platform-in-the-past-year/" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;taking a break from the platform, and 25% of respondents said they aren’t likely to be on the platform one year from now.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.bloomberg.com/news/articles/2023-05-19/instagram-readies-twitter-competitor-for-summer-release?srnd=premium&amp;leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">Instagram Readies Twitter Competitor for Summer Release</a>&nbsp;(Bloomberg)



<a href="https://www.forbes.com/sites/mollybohannon/2023/05/12/heres-how-twitters-appearance-has-changed-under-elon-musk/?sh=75eb23385f68">Here&#8217;s How Twitter&#8217;s Appearance Has Changed Under Elon Musk</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/mollybohannon/"></a>By Molly Bohannon, Forbes Staff

In this photo illustration the Instagram logo seen displayed

Instagram Is Preparing A Twitter-Like App To Be Launched This Summer, Report Says

South Africa is set to surpass carbon emission goals, but for the wrong reasons. Loadshedding and the subsequent impact on heavy industry have, ironically, proven to be a boon for the environment.



South Africa’s unexpected emissions victory is a silver lining in an otherwise dark cloud. South Africa has recently outperformed its United Nations&#8217; Nationally Determined Contributions (NDCs) emissions reduction targets. However, this victory is not the result of a concerted green initiative or a shift towards renewable energy. Instead, it is a byproduct of the country&#8217;s ongoing loadshedding crisis, a situation that has seen coal-fueled power plants and electricity-dependent heavy industries frequently offline.



The loadshedding crisis, a crippling issue for the nation, has hampered economic growth and caused widespread frustration. In a perverse twist, it has also led to a significant reduction in the country’s carbon emissions.



The year 2023 has been the darkest so far, with over 100 consecutive days of continuous scheduled power outages, at an estimated daily cost of $50 million to the economy. With an estimated 80% of the country’s power generation fleet still coal-reliant, it was forecast that South Africa would only begin to reduce its carbon emissions footprint after 2025, a goal that it is set to surpass at the current rate.



So significant have the electricity outages been that the country appears to be ahead of this target, said Crispian Olver, Executive Director of South Africa’s Presidential Climate Commission, in an interview with Bloomberg on Monday.



“The country may achieve its climate goals as per the NDCs without closing any coal stations thanks to loadshedding and poor plant output.”



While this bodes well for South Africa meeting its climate objectives, it has also been pivotal in securing international financing for the country’s Just Energy Transition plan, which provided $8.5 billion in 2021, the vast majority of which was to be invested in transitions toward renewable energy solutions such as wind and solar power.



However, Minister of Electricity Kgosientso Ramokgopa believes that it is possible to both extend the life of the existing coal power fleet of state-owned generation utility Eskom, while still keeping the country on track to meet its climate goals, a seemingly contradictory position.



“We are modeling the impact of emissions and cost implications, and we will decide whether to extend the life and by what period. But I want to emphasize that we will not renege on our NDCs, our decarbonization agenda, and net zero path by 2050,” said Ramokgopa during a media briefing last week.



However, energy analyst and Managing Director of EE Business Intelligence Chris Yelland believes that these goals are not in conflict. “Low economic growth and loadshedding have already led to a slow decline in electricity consumption,” he said, speaking to FORBES AFRICA. “If we are just running the coal-fired stations we have now…just to see us through the crisis of the next two or three years, that may be palatable to donor countries of the Just Energy Transition Partnership.”



However, Yelland believes both the immediate and most sustainable path forward is still for the country to aggressively pursue the development of renewable energy sources, but it requires the will from the government.



“There are very short-term options for renewable energy, particularly in the domestic, commercial, and agricultural space in particular,” continues Yelland. “But the government&#8217;s focus seems to be on the utility-scale projects, and those will take a minimum of two to three years to come onstream…And that’s not quick enough, we need solutions now.”

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Nigerian teen golf prodigy Iyene Essien is focused on her goal to become ‘the female African Tiger Woods’. She has been acing her game from when she was six. 



By Peace Hyde



When Tiger Woods won the prestigious Arnold Palmer Invitational, a professional golf tournament on the PGA Tour, in 2012 for the seventh time, little did he know he was inspiring a five-year-old, Iyene Essien, in faraway Nigeria to pick up a golf club and play. 



At the time, Essien’s dad took her to a golf club in Abuja and she was immediately hooked.



“I was fascinated and asked if I could play,” says Essien in an interview with FORBES AFRICA. Convinced, it was not long before her dad bought her golf clubs and hired a coach to take her through the paces.



Today, she is a teen golfing sensation. 



After winning her first golf event by age six, Essien has consistently dominated the African golfing world and gone on to represent Nigeria at international competitions. She finished second in the Champion of Champions golf tournament in Northern Ireland, playing on the same course as golfing legend Rory Mcllroy and has also won the prestigious Hurricane Junior Golf Tour (HJGT) in the United States, twice.



The HJGT tour is a prestigious program that affords truly exceptional junior golfers between the ages of 8-18 the opportunity to play world class courses competitively; the perfect ground for Essien to hone her skills if she is to make her dream of becoming



“the female African Tiger Woods” a reality.



And as luck would have it, in 2017, Woods acquired a stake in HJGT to help grow the sport and expand it globally. According to Forbes, more than 30,000 boys and girls have competed in the events that have produced close to 4,000 golfers since 2007. 



“I look up to Tiger Woods because of his dedication to the sport and his ambition to keep going against all odds. He shows how passionate he is about the sport whether he is winning or losing,” says Essien. 



Essien could very well be on the golfing legend’s radar if she continues her winning streak on the HJGT course.



It is no surprise that her long-term goal is to be able to play professionally full-time but Essien is pragmatic enough to invest in education as a back-up plan.



“Not everyone makes it to playing professionally so it is essential that I have a stable education before fully devoting my life to golf.” 



She is currently attending high school at The Taft School in the United States (US). She is the number two player and also an member of The Taft School Girls’ Varsity Golf team – winners of 2022 Founders League High School Golf Tournament in Connecticut, US. 



Golf is still an up and coming sport in Nigeria, a country that is dominated by football.



The current president of the Nigerian Golf Federation, Otunba Olusegun Runsewe, has vowed to usher in a new era for golf. At the top of his agenda is positioning Nigeria to be a viable and attractive destination for international golf funding.



“There is about $4 billion worth of funding available for golf in Africa by 2023 and it is my duty to ensure we have the infrastructure here to attract that level of investment,” says Runsewe.



For Essien, the support from her family and friends has been crucial. Like most women in sports, even at the tender age of 16, Essien still has to deal with the stigma that comes with the territory.



“The challenges I’ve personally faced are people don’t really see me as a golfer. When I tell people ‘I play golf’, they don’t expect me to be as good as I am. Imagining a female to be good at a sport seems to not be the norm and it honestly doesn’t surprise me.



Everyone is majorly interested in male sports and female sports are seen as slow and boring.”



Boring or not, this Nigerian prodigy is determined to make her mark in the golfing world and if her recent achievements are anything to go by, she is aiming right.

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