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Nyxoah Annonce ses Priorités Stratégiques pour 2024

Nyxoah Annonce ses Priorités Stratégiques pour 2024

Mont–Saint–Guibert, Belgique – 17 janvier 2024, 22h05 CET / 16h05 ET – Nyxoah SA (Euronext Bruxelles/Nasdaq : NYXH) (« Nyxoah » ou la « Société ») opère dans le secteur des technologies médicales et se concentre sur le développement et la commercialisation de solutions innovantes destinées à traiter le Syndrome d’Apnées Obstructives du Sommeil (SAOS). La Société a annoncé aujourd'hui, en prévision des prochaines réunions d'investisseurs, ses priorités stratégiques pour 2024.

Priorités stratégiques pour 2024

  • Compléter le suivi des patients dans l'étude pivot DREAM aux États–Unis et communiquer les données d'efficacité et de sécurité d'ici le début du mois d'avril. Les données d'efficacité à 12 mois1 sur les 34 premiers patients DREAM et les données de sécurité sur tous les patients DREAM ont été présentées à SLEEP 2023, démontrant un taux de réponse à l'IAH de 65 %, un taux de réponse à l'ODI de 76 % et une sécurité conforme aux attentes. Ces données sont préliminaires et ne permettent pas de conclure au succès final de DREAM.
  • Déposer le quatrième et dernier module de la demande d'autorisation de mise sur le marché PMA modulaire. La Société prévoit de soumettre le dernier module peu de temps après l'annonce des résultats de DREAM.
  • Accélérer les investissements dans l'organisation commerciale américaine en vue d'un lancement fin 2024. Embauche récente de Francis Kim en tant que Chief Regulatory and Quality Officer et élargissement de l'accès au marché pour garantir le remboursement au moment du lancement.
  • Compléter le recrutement dans l'étude pivot américaine ACCCESS sur le Collapse Circonférentiel Complet (CCC). Annonce récente de données publiées par des investigateurs en Europe démontrant le succès de Genio® dans le traitement des patients atteints de CCC.
  • Augmentation de la pénétration du marché de la stimulation du nerf hypoglosse (HGNS) et de la part de marché de Genio en Europe. Pour 2024, nous prévoyons une croissance continue des ventes grâce aux bénéfices croissants des initiatives de vente directe aux consommateurs (DTC), à la contribution initiale du partenariat commercial avec ResMed en Allemagne et à l'expansion géographique.

“Depuis la création de Nyxoah, nous avons été guidés par la mission d'améliorer la vie des patients souffrant d'AOS. Cela a conduit au développement du système Genio HGNS centré sur le patient. La conception à incision unique, sans sonde et évolutive de Genio, alimenté et contrôlé par un dispositif portable, a trouvé un écho auprès des cliniciens et des patients et a conduit à un lancement important en Europe. La stimulation bilatérale de Genio permet le traitement du CCC, et le label a ensuite été élargi pour inclure ces patients, dont la seule option de traitement après l'échec de la PPC était jusqu'alors une chirurgie palatine majeure”, a commenté Olivier Taelman, Chief Executive Officer.

“Dans le cadre de nos efforts continus pour offrir aux patients un plus grand contrôle sur leur traitement, rendant ainsi leur sommeil à nouveau simple, nous avons ensuite reçu l'approbation pour Genio 2.1. Genio 2.1 offre aux patients un retour d'information quotidien sur l'utilisation du traitement et une autonomie pour ajuster l'amplitude de la stimulation dans des limites prédéfinies, améliorant ainsi le confort et l'observance du patient sans qu'il soit nécessaire de recourir à une procédure chirurgicale pour remplacer le composant implantable.”

“Nous sommes maintenant sur le point de franchir l'étape la plus importante de l'histoire de la Société avec la communication des résultats de DREAM dans les mois à venir. Nous prévoyons d'achever la demande d'autorisation de mise sur le marché (PMA) peu de temps après et nous accélérons la fabrication et les investissements commerciaux afin de nous assurer que nous sommes parfaitement préparés à reproduire notre succès européen aux États–Unis. Avec un lancement imminent aux États–Unis et une croissance continue en Europe, nous sommes enthousiastes pour les années à venir”.

À propos de Nyxoah
Nyxoah opère dans le secteur des technologies médicales. Elle se concentre sur le développement et la commercialisation de solutions innovantes destinées à traiter le Syndrome d’Apnées Obstructives du Sommeil (SAOS). La principale solution de Nyxoah est le système Genio®, une thérapie de neurostimulation du nerf hypoglosse de nouvelle génération centrée sur le patient, sans sonde ni batterie implantée et destinée à traiter le Syndrome d’Apnées Obstructives du Sommeil (SAOS), le trouble respiratoire du sommeil le plus courant au monde. Ce dernier est associé à un risque accru de mortalité et des comorbidités cardiovasculaires. Nyxoah est motivé par la vision selon laquelle les patients souffrant de SAOS devraient profiter de nuits reposantes et se sentir en mesure de vivre pleinement leur vie.

À la suite de la finalisation probante de l’étude BLAST OSA, le système Genio® a reçu le marquage européen CE en 2019. Nyxoah a réalisé deux introductions en bourse avec succès : sur Euronext en septembre 2020 et au NASDAQ en juillet 2021. Suite aux résultats positifs de l'étude BETTER SLEEP, Nyxoah a obtenu l’approbation marquage CE pour le traitement des patients atteints de Collapse Circonférentiel Complet (CCC), actuellement contre–indiqué dans les thérapies concurrentes. De plus, la Société mène actuellement l'étude pivot DREAM IDE en vue de l'approbation FDA et de la commercialisation aux États–Unis.

Pour plus d’informations, visitez http://www.nyxoah.com/

Attention – Marquage CE depuis 2019. Dispositif expérimental aux États–Unis. Limité par la loi fédérale américaine à une utilisation expérimentale aux États–Unis.

Déclarations prospectives
Certaines déclarations, croyances et opinions contenues dans le présent communiqué de presse sont de nature prospective et reflètent les attentes actuelles de la société ou, le cas échéant, des administrateurs ou de la direction de la société concernant le système Genio®, les études cliniques prévues et en cours sur le système Genio®, les avantages potentiels du système Genio®, les objectifs de Nyxoah en ce qui concerne le développement, la voie réglementaire et l'utilisation potentielle du système Genio® ; l'utilité des données cliniques pour l'obtention éventuelle de l'approbation de la FDA pour le système Genio® ; les données de l'essai pivot DREAM US de Nyxoah ; la demande d'approbation de la FDA ; l'entrée sur le marché américain, les contributions du partenariat commercial de ResMed en Allemagne ; et les résultats d'exploitation, la situation financière, les liquidités, les performances, les perspectives, la croissance et les stratégies de l'entreprise. De par leur nature, les déclarations prévisionnelles impliquent un certain nombre de risques, d'incertitudes, d'hypothèses et d'autres facteurs qui pourraient faire en sorte que les résultats ou événements réels diffèrent matériellement de ceux exprimés ou sous–entendus dans les déclarations prévisionnelles. Ces risques, incertitudes, hypothèses et facteurs pourraient avoir une incidence négative sur le résultat et les effets financiers des plans et événements décrits dans le présent document. En outre, ces risques et incertitudes comprennent, sans s'y limiter, les risques et incertitudes énoncés dans la section “Facteurs de risque” du rapport annuel de la société sur le formulaire 20–F pour l'exercice clos le 31 décembre 2022, déposé auprès de la Securities and Exchange Commission (“SEC”) le 22 mars 2023, et des rapports ultérieurs que la société dépose auprès de la SEC. Une multitude de facteurs, y compris, mais sans s'y limiter, les changements dans la demande, la concurrence et la technologie, peuvent faire en sorte que les événements, les performances ou les résultats réels diffèrent de manière significative de tout développement anticipé. Les déclarations prospectives contenues dans le présent communiqué de presse concernant des tendances ou des activités passées ne constituent pas des garanties de performances futures et ne doivent pas être considérées comme une déclaration selon laquelle ces tendances ou activités se poursuivront à l'avenir. En outre, même si les résultats ou les développements réels sont conformes aux déclarations prospectives contenues dans le présent communiqué de presse, ces résultats ou développements peuvent ne pas être indicatifs des résultats ou développements des périodes futures. Aucune déclaration ou garantie n'est donnée quant à l'exactitude ou à l'équité de ces déclarations prévisionnelles. En conséquence, la Société décline expressément toute obligation ou tout engagement de publier des mises à jour ou des révisions des déclarations prospectives contenues dans le présent communiqué de presse à la suite d'un changement des attentes ou d'un changement des événements, conditions, hypothèses ou circonstances sur lesquels ces déclarations prospectives sont basées, sauf si la loi ou la réglementation l'exige expressément. Ni la Société, ni ses conseillers ou représentants, ni aucune de ses filiales, ni les dirigeants ou employés de ces personnes ne garantissent que les hypothèses sous–jacentes à ces déclarations prospectives sont exemptes d'erreurs et n'acceptent aucune responsabilité quant à l'exactitude future des déclarations prospectives contenues dans ce communiqué de presse ou quant à la survenance effective des développements prévus. Vous ne devriez pas accorder une confiance excessive aux déclarations prospectives, qui ne sont valables qu'à la date du présent communiqué de presse.

Contacts :
Nyxoah
David DeMartino, Chief Strategy Officer
david.demartino@nyxoah.com
+1 310 310 1313

1 Pour que l'étude soit concluante, il faut qu'au moins 63 % des 115 patients répondent à l'IAH et à l'ODI lors du suivi à 12 mois.

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GLOBENEWSWIRE (Distribution ID 1000909240)

Nyxoah Announces 2024 Strategic Priorities

Nyxoah Announces 2024 Strategic Priorities

Mont–Saint–Guibert, Belgium – January 17, 2024, 10:05pm CET / 4:05pm ET – Nyxoah SA (Euronext Brussels/Nasdaq: NYXH) (“Nyxoah” or the “Company”), a medical technology company focused on the development and commercialization of innovative solutions to treat Obstructive Sleep Apnea (OSA), today announced, in anticipation of upcoming investor meetings, its strategic priorities for 2024.
           
2024 Strategic Priorities

  • Complete patient follow up in the DREAM U.S. pivotal study and report efficacy and safety data by early April. 12–month efficacy data1 on the first 34 DREAM patients and safety data on all DREAM patients were presented at SLEEP 2023, demonstrating a 65% AHI responder rate, a 76% ODI responder rate and safety in–line with expectations. These data are preliminary and not conclusive of final DREAM success.
  • File the fourth and final module in the modular PMA submission. Anticipate submitting the final module shortly after announcing DREAM results.
  • Accelerate investments in the U.S. commercial organization in preparation for a late 2024 launch. Recently hired Francis Kim as Chief Regulatory and Quality Officer and expanded market access to secure reimbursement at launch.
  • Complete enrollment in the ACCCESS complete concentric collapse (CCC) U.S. pivotal study. Recently announced investigator–sponsored data in Europe demonstrating Genio’s® success in treating CCC patients.
  • Increase hypoglossal nerve stimulation (HGNS) market penetration and Genio market share in Europe. For 2024, we expect continued sales growth driven by an increasing benefit from direct–to–consumer (DTC) initiatives, initial contribution from the ResMed commercial partnership in Germany and geographic expansion.

“Since Nyxoah’s founding we have been guided by the mission to improve the lives of OSA patients. This led to the development of the patient–centric Genio HGNS system. Genio’s single–incision, leadless, upgradable design powered and controlled by a wearable resonated with clinicians and patients and led to a strong European launch. Genio’s bilateral stimulation enables treatment of CCC, and the label was subsequently expanded to include these patients, whose only treatment option after failing CPAP up until then was major palate surgery,” commented Olivier Taelman, Chief Executive Officer.

“In our ongoing effort to provide patients greater control over their therapy, thereby making sleep simple again, we then received approval for Genio 2.1. Genio 2.1 offers patients daily feedback on therapy usage and autonomy to adjust stimulation amplitude within pre–defined boundaries, improving patient comfort and compliance without the need for a surgical procedure to replace the implantable component.”

“We are now on the cusp of the most significant milestone in the Company’s history with the reporting of DREAM results in the coming months. We expect to complete the PMA submission shortly after and are accelerating manufacturing and commercial investments to ensure we are fully prepared to replicate our European success in the U.S. With an approaching U.S. launch and continued growth in Europe, we are excited for the coming years.”

About Nyxoah
Nyxoah is a medical technology company focused on the development and commercialization of innovative solutions to treat Obstructive Sleep Apnea (OSA). Nyxoah’s lead solution is the Genio® system, a patient–centered, leadless and battery–free hypoglossal neurostimulation therapy for OSA, the world’s most common sleep disordered breathing condition that is associated with increased mortality risk and cardiovascular comorbidities. Nyxoah is driven by the vision that OSA patients should enjoy restful nights and feel enabled to live their life to its fullest.

Following the successful completion of the BLAST OSA study, the Genio® system received its European CE Mark in 2019. Nyxoah completed two successful IPOs: on Euronext Brussels in September 2020 and NASDAQ in July 2021. Following the positive outcomes of the BETTER SLEEP study, Nyxoah received CE mark approval for the expansion of its therapeutic indications to Complete Concentric Collapse (CCC) patients, currently contraindicated in competitors’ therapy. Additionally, the Company is currently conducting the DREAM IDE pivotal study for FDA and U.S. commercialization approval.

For more information, please visit http://www.nyxoah.com/.

Caution – CE marked since 2019. Investigational device in the United States. Limited by U.S. federal law to investigational use in the United States.

Forward–looking statements
Certain statements, beliefs and opinions in this press release are forward–looking, which reflect the Company’s or, as appropriate, the Company directors’ or managements’ current expectations regarding the Genio® system; planned and ongoing clinical studies of the Genio® system; the potential advantages of the Genio® system; Nyxoah’s goals with respect to the development, regulatory pathway and potential use of the Genio® system; the utility of clinical data in potentially obtaining FDA approval of the Genio® system; reporting data from Nyxoah’s DREAM US pivotal trial; filing for FDA approval; entrance to the US market, contributions from the ResMed commercial partnership in Germany; and the Company's results of operations, financial condition, liquidity, performance, prospects, growth and strategies. By their nature, forward–looking statements involve a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from those expressed or implied by the forward–looking statements. These risks, uncertainties, assumptions and factors could adversely affect the outcome and financial effects of the plans and events described herein. Additionally, these risks and uncertainties include, but are not limited to, the risks and uncertainties set forth in the “Risk Factors” section of the Company’s Annual Report on Form 20–F for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 22, 2023, and subsequent reports that the Company files with the SEC. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Forward looking statements contained in this press release regarding past trends or activities are not guarantees of future performance and should not be taken as a representation that such trends or activities will continue in the future. In addition, even if actual results or developments are consistent with the forward–looking statements contained in this press release, those results or developments may not be indicative of results or developments in future periods. No representations and warranties are made as to the accuracy or fairness of such forward–looking statements. As a result, the Company expressly disclaims any obligation or undertaking to release any updates or revisions to any forward–looking statements in this press release as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward–looking statements are based, except if specifically required to do so by law or regulation. Neither the Company nor its advisers or representatives nor any of its subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward–looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward–looking statements contained in this press release or the actual occurrence of the forecasted developments. You should not place undue reliance on forward–looking statements, which speak only as of the date of this press release.

Contacts:
Nyxoah
David DeMartino, Chief Strategy Officer
david.demartino@nyxoah.com
+1 310 310 1313

1 For the trial to be successful, of the 115 patients, at least 63% of patients need to be AHI and ODI responders at the 12–month follow–up.

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The Impact of Climate Migration on Developing Nations

Men on camels and donkeys travel through a dust storm in the desert near the western city of Mao, in the Kanem Region of Chad. Credit: UNICEF/UNI82205/Holt

By Sudip Ranjan Basu, Chen Wang and Monica Das
BANGKOK, Thailand, Jan 17 2024 – As the world is still gearing up to welcome 2024, let us find a moment to reflect on some of the key trends of the past year and pursue now to embrace the path towards hope and promise for everyone, everywhere.

Deepening global inequalities are having enormous socio-economic implications across countries. Increasing income and social disparities are spreading around regions. Growing intensities of climate induced natural disasters, the uneven speed of post-pandemic recoveries, and cost-of-living crises from conflicts and geopolitical tensions are exacerbating inequalities and poverty traps globally.

The changing distribution of economic benefits vis-à-vis the rising prices of food and fuel are causing social unrest and protests. Citizens are voicing their frustration not only in the streets of capitals but through exponential engagement on social media platforms.

With the intensification of various external shocks, and the lack of economic opportunities for accelerating growth and productivity surges, multidimensional poverty indices are on rise. The inequality-poverty nexus is contributing to a new form of uncertainty for disadvantaged households.

A family displaced by prolonged drought in Ethiopia now live in a makeshift tent in Mogadishu, Somalia. June 2023. Credit: IOM/Muse Mohammed

Intensifying course of climate change

Intensifying hazards caused by climate change, such as floods, tropical cyclones, heatwaves, droughts and earthquakes, have impacted agricultural outputs and industrial sectors, especially through decreasing productivity growth and falling real wages. The widening gap between rich and poor in rural and urban areas has also been linked to extreme weather events due to the increasing frequency of natural disasters.

These inequalities are further aggravating extreme poverty, creating the vicious nexus of climate-disaster-inequalities among vulnerable groups.

Evidence from around the world indicates that climate change is likely to impact more severely on vulnerable groups and coastal communities, because they are more exposed to the uncertainties of weather patterns. Lack of adaptive capacity are often constraining the ability of these communities to build resilience and cope with the severity of these environmental shocks.

Widespread incidence of climate migration from low- to high-latitude areas and social mobility are increasingly impacting the social fabric of small island developing States and other developing economies.

With the exodus of young and skilled labour force, transfers of income and the wealth gap will further worsen inequalities in communities, raising concerns of greater socio-economic uncertainties.

From Fiji to Ethiopia, Bangladesh to Brazil, the exacerbation of inequalities due to climate change has been impacting socio-economic prosperity. Growth uncertainties are causing extreme poverty to increase, while causing hardship and hunger for households in rural areas.

Varying scales of COVID-19 pandemic

Socio-economic polarization has been on the rise since the global outbreak of the COVID-19 pandemic. Due to differentiated impacts of national lockdowns, pandemic restrictions and vaccination measures have had adverse impacts on the existing inequalities and multidimensional poverty indices.

As economic development stagnation persists, rural areas have seen rising impacts of extreme poverty and income divergence across households, leading to new episodes of income divergence within countries.

The post-COVID 19 recoveries are uneven. Rising levels of unemployment and stagnating real wages remain major indicators of corresponding economic growth deceleration. The differentiated policy measures to stabilize labour market distortions, social protection systems and sectoral productivity surges have not always achieved the desired outcomes in developing countries.

According to the labour force surveys in various countries, the majority of workers have been engaged in less paid work due to lack of dynamism in the labour market. Evidence suggests that the changes in work style and availability of types of jobs as well as their skills and profiles aggravate the income disparity within urban centres.

From several Latin American to African countries, the pandemic-induced policy measures have differently elevated the risk of vulnerability for the manual labor force. Similarly, the studies have shown that young, low-income and self-employed workers including women with limited education, have suffered greater job losses and earnings reductions than other groups in the workforce in the UK, USA, China and India, among others.

Changing forms of conflicts

Conflicts also go beyond borders, causing immeasurable human suffering on the global scale. With the volatility and uncertainties around supply chains, food and fuel prices spiral. Cost-of-living crisis spreads around countries as governments lose fiscal space for developmental expenditure, while debt burden mounts.

Conflicts cause people to lose hope and opportunities from East to West, North to Southern countries. With the lack of rule of law and property rights, households and communities fall into poverty traps, changing the face of socio-economic disparity.

As these conflicts are prolonged, countries often fail to overcome the existing structural constraints, maintain production streams, and improve lackluster infrastructure. A higher risk of falling into poverty traps and increasing scale of disparities is then the inevitable outcome. The polarization fears and lack of trust are now a reality.

Looking ahead

Today, as we look back at 2023, there is no doubt that in the end, common aspirations and outlooks remain our best hope to chart a new course to advance the Sustainable Development Goals. Evidence of successful policy coherence will provide valuable opportunities for policymakers to unite their priorities and lay the foundations for breakthroughs.

Sudip Ranjan Basu is Deputy Head and Senior Economic Affairs Officer; Chen Wang is Professor, Institute of Finance and Economics, Shanghai University of Finance and Economics, China; Monica Das is Associate Professor, Economics Department, Skidmore College, New York

IPS UN Bureau

 


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Mozambique Insurgency Significantly Decreased, Say Experts

Two years after the major attacks by non-state armed groups, a considerable number of forcibly displaced people have returned to Palma. Credit: UNHCR

Two years after the major attacks by non-state armed groups, a considerable number of forcibly displaced people have returned to Palma. Credit: UNHCR

By Kevin Humphrey
JOHANNESBURG, Jan 17 2024 – There is cautious optimism regarding the conflict that has been raging in northern Mozambique, largely in the province of Cabo Delgado, since 2017. There are encouraging indications that the Islamic State (IS)-driven insurgency has significantly decreased thanks to the deployment of the Mozambique Defense Armed Forces (FADM), Southern African Development Community (SAMIM) forces, and a contingent of Rwandan troops (RSF).

Leleti Maluleki, a researcher at Good Governance Africa, told IPS: “With regards to the current state of the conflict, people are slowly moving back or returning to their villages and communities. It’s a sign of progress being made by the troops, and we hope it’s a sign of peace.”

There had been a decrease in the number of attacks by insurgents. 

“That’s a good thing as well, but it does not mean that the insurgency is over. We need to remember that there were stories of insurgents infiltrating the communities, so they are still among the people; they might have radicalized certain individuals, and they might have recruited some citizens. But we are seeing fewer and fewer attacks on a daily basis.”

The insurgency has claimed over 4,000 lives and displaced 946,000 since it started. According to a report from the United Nations Security Council published in February 2023, the number of IS fighters in the field has decreased from a peak of 2,500 (prior to SAMIM and the RSF joining the fight) to roughly 280.

Last year, Vladimir Voronkov, Under-Secretary-General of the Office of Counter-Terrorism, said in August 2023 that counter-terrorism initiatives in Egypt, Mozambique, and Yemen had significantly limited the insurgents ability to conduct operations.

He warned, though, that “force alone cannot lead to changes in the conditions conducive to terrorism,” noting that it can fuel more violence and aggravate grievances exploited by terrorists.

At the same meeting, Domingos Estêvão Fernandes, Deputy Permanent Representative of Mozambique to the UN, pointed to the rising spread of terrorism in Africa, where fatalities linked to Al-Qaeda and Da’esh reached more than 22,000 over the past year—representing a 48 percent increase over 2022.

Fernandes it was important to address poverty, inequality, social exclusion, and discrimination based on religion and culture to address insurgency and recognize the risk of the misuse of emerging technologies.

He pointed to the achievements of the deployment of the Southern African Development Community (SADC) mission in Mozambique.

Amanzi Amade Bacar is a fisherman who has fled and returned several times from and to his house in Bagala, Mozambique. The 39-year-old husband and father hopes to return to his home and his original livelihood. Credit: UNHCR

Amanzi Amade Bacar is a fisherman who has fled and returned several times from and to his house in Bagala, Mozambique. The 39-year-old husband and father hopes to return to his home and his original livelihood. Credit: UNHCR

“We must ensure predictable, flexible, and sustained funding for African Union peacekeeping operations,” Fernandes said, adding that government agencies and defense and security forces must partner with local communities to provide early warning systems.

Maluleki added that a new challenge is the insurgent’s use of improvised explosive devices (IEDs), a tactic that works when the insurgents numbers are dwindling, which means decreasing the likelihood of insurgents getting up close to security forces. The use of these causes panic among civilians, which leads to further destabilization of the region regarding displaced persons and refugees.

When security forces reportedly killed Ibn Omar, the purported IS leader, and two of his followers, the anti-insurgency campaign also gained momentum. Mozambique’s president, Filipe Nyusi, recently made an announcement to this effect.

In terms of the future, the Southern African Development Community (SADC) heads of state at a summit in July 2023 laid plans for SADC forces to begin to leave northern Mozambique by December 15, 2024, and to complete the withdrawal by July 15, 2025. It was also noted that for this to happen, there was an urgent need for Mozambique’s defense forces to be capacitated to a degree where the removal of SADC troops would not compromise the gains of the past few years. Training and other help coming from the European Union and the United States to beef up the Mozambican forces were also mentioned at the summit.

Two years after the major attacks by non-state armed groups, a considerable part of forcibly displaced persons have returned to Palma. Credit: UNHCR

Two years after the major attacks by non-state armed groups, a considerable number of forcibly displaced people have returned to Palma. Credit: UNHCR

Since the beginning of the insurgency, the UN High Commissioner for Refugees (UNHCR) estimated that one million people had been displaced in the region. More recently, the International Organization for Migrants (IOM) reported that in September and October 2023, about 8,000 Cabo Delgado residents had become displaced.

“When it comes to the issue of displaced individuals, a lot of people lost their homes and ran away for safety. People displaced by the conflict went to neighboring, safer communities. Host communities are faced with overcrowding, and basic services are under severe pressure so the security situation needs to improve so that more people can return to their villages and relieve the burden on these host communities,” said Maluleki

This increase in displaced persons occurred in the run-up to local government elections in the area and also when the €20 billion liquefied natural gas (LNG) project, put on hold due to the conflict in the region, was being considered for being given the go-ahead. Fortunately, the October 11, 2023, municipal elections in Mocimboa da Praia went ahead, with four political parties taking part.

Nyusi has said it is safe to restart the Cabo Delgado liquefied natural gas (LNG) project that was halted in April 2021 after rebel attacks on civilians.

“The working environment and security in northern Mozambique make it possible for TotalEnergies to resume its activities at any time,” Nyusi said. TotalEnergies confirmed it was working on restarting the project.

There are, however, still concerns, especially for the civilian population.

“The deployment of troops was primarily in two districts, and this is concerning because these are the districts where the government has its own interests because they are where the LNG project is. Only two of the five or six districts that the insurgents heavily targeted have received adequate security. All districts affected by the conflict need to be secured so that we can reach a true level of peace and stability and address the root causes of the conflict,” said Maluleki.

IPS UN Bureau Report

 


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World Bank Enables Foreign Aid Theft

By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Jan 17 2024 – World Bank aid encourages governments to enable illicit financial outflows to offshore tax havens by reducing capital controls, thus draining precious foreign exchange and government resources.

Aiding elite wealth
Aid disbursements to highly aid-dependent countries coincide with sharp increases in bank deposits in offshore financial centres known for banking secrecy and private wealth management.

Jomo Kwame Sundaram

Using Bank for International Settlements (BIS) data, Jørgen Juel Andersen, Niels Johannesen and Bob Rijkers found trends suggesting wealth accumulation abroad by national elites coinciding with World Bank aid disbursements.

Capital outflows follow aid inflows apparently captured by ruling politicians, bureaucrats and their cronies. In the 22 most World Bank aid-dependent countries, aid disbursements coincide “with increased deposits in foreign bank accounts in tax havens”.

National elites capture World Bank aid to poor developing countries. Such ‘leakages’ came to 7.5% of inflows, rising with aid-reliance. Earlier, ‘petroleum rent’ leakages to secretive offshore tax havens were estimated at 15%.

A modest share of all aid, World Bank disbursements averaged over 2% of low-income countries’ GDPs yearly. For Bank disbursements of at least 1% of GDP, leakages from 46 countries increased deposits in havens by 3.4%. But at a 3% of GDP threshold, leakages from seven countries rose to 15%!

Elites capture aid
The conventional wisdom is that aid promotes economic development in the poorest countries, while a few disagree. Many believe aid effectiveness depends on institutions and policies in receiving countries, with some warning corrupt elites may capture aid.

Many suspect elites who capture aid, or funds freed up by aid, hide their ill-gotten gains in private accounts in tax havens. Some countries receiving foreign aid are quite corrupt, with aid inflows captured by ruling politicians and their cronies.

There is much evidence that very high aid inflows foster corruption, with development projects failing due to greedy elites. The poorest countries supposedly receive the most aid but are often the worst governed. The study shows World Bank aid has been no better than others, further burdening poor countries and people.

Its data does not allow identification of those involved or the mechanisms used. Nonetheless, it concludes “the beneficiaries … belong to economic elites” with other research showing “offshore bank accounts are overwhelmingly concentrated at the very top of the wealth distribution”.

Illicit outflows enabled
Such aid capture by ruling elites helps explain its diversion abroad, how such funds end up in tax havens, and related surges in illicit outflows. Hence, large increases in offshore haven bank accounts coincided with aid disbursements.

Such abuses get worse when countries are more corrupt and have less effective checks and balances. Unsurprisingly, there are larger outflows to havens when projects fail, suggesting elite responsibility for such failures.

Conversely, there are less outflows to havens when procurement is from local contractors. When taxes can easily be evaded without using offshore accounts, and such abuses are unlikely to be penalised, outflows to havens become unnecessary and decline.

Foreign aid has also been used to get governments to reduce capital controls. Although assured by the International Monetary Fund’s Articles, the Bretton Woods institutions have eroded them since the 1990s. They claim doing so will ensure net inflows when all evidence suggests the contrary.

Reducing capital controls enables and boosts illicit capital outflows by reducing exit barriers. Such outflows have greatly exceeded World Bank aid inflows, draining precious government foreign exchange resources.

Study underestimates outflows
The study tries to minimise other factors influencing aid inflows and financial outflows. It excludes observations when wars, natural disasters, financial crises, oil price hikes and exchange rate volatility triggered such flows.

The study only covers World Bank aid leakages diverted to offshore tax havens. Spending on real estate, luxury goods, pet projects, and outflows using offshore intermediaries who help “hide and launder assets” are also not counted. Besides ignoring such outflows, it also rules out other possible causes.

International Consortium of Investigative Journalists’ leaked data on offshore corporations, especially the Panama Papers, showing many secretive offshore havens used to hide illicit outflows, especially in Switzerland and Luxembourg.

Financial transparency has improved significantly, with more information on offshore financial centres from 2009. But more transparency has not stopped illicit outflows, including aid-derived wealth accumulation in havens.

Unsurprisingly, more corrupt countries, less local procurement and more failed projects have generated more outflows. But the study suggests more donor monitoring and control may have lowered leakage rates for aid compared to natural resource extraction.

Adding insult to injury
It is bad enough for the World Bank to enable the theft of scarce financial resources by influential elites. Worse, such enabling reforms have been required or advised by the Bank despite prior knowledge of their likely consequences.

To add insult to injury, the poor countries themselves are blamed for such abuses and their consequences. Unsurprisingly, the beneficiary elites are the political and economic allies of those who control the Bank and its policies.

These same elites have incurred much debt in the names of their countries and people. But much market-based debt dried up as the US Fed, European Central Bank and others sharply raised interest rates from 2022.

Thus, most poor countries face punishing market credit terms in the face of massive international economic contractions due to policies pursued by the US and its European allies.

IPS UN Bureau

 


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