1 Intra-regional trade booming in Africa
2 African diaspora home remittances reach $40 billion in 2010
3 African, Chinese banks join to boost trade
4 Zambia 2010 exports up 67% on copper boom
5 Zimbabwe’s mining output doubles in 2010
6 Senegal: gradual improvement in electricity supply promised
7 DHL to introduce pan-African road- freight service
8 Guinea eyes bigger mine stakes, new rules
9 South Korea eyes exports to Africa
10 Asian buyers shun West African oil in April
11 Ghana to host West African business workshop
12 Zimbabwe bans chrome exports
13 Zambia attracts $2 billion foreign direct investment
14 China, Uganda to crack down on counterfeit products
15 South Africa sold arms worth Rand 70 million to Libya
16 EU approves new trade incentives for North Africa
17 India plans stronger trade ties with Nigeria
18 Zambia 2010 exports over $7 billion
19 BRICS: Trade ties that cut out the West
20 Rwanda freezes Gadaffi assets
21 Kenya will not seize Gadaffi companies
22 International bank to open 12 more branches in Angola
23 US-Morocco trade doubles
24 Zimbabwe trade deficit grew in 2010
25 Giving aid to Africa further impoverishes continent
26 China, Zimbabwe ties grow stronger
27 Gambia freezes Gadhafi-held Liyan assets
28 Booming trade ups shipping from India to Africa
29 Huge sums lost to Angola in crooked trade deals
30 Import taxes curb intra-African trade
April 26, 2011
Intra-regional trade booming in Africa
There is increasing trade among African countries says Jubril Aku, Managing Director/Chief Executive, Ecobank Nigeria PLC.
“We have seen increasing trade link between African countries mainly within regional corridors like the West African bloc and the East African bloc. We also have also seen some trading between the blocs”, he told Financial journalists in Lagos.
He said that though most of the regional trade is in commodities like cattle, grains, there have also been increases in government to government business transactions. He said for example there have been increased business between Nigerian government and African governments with refineries and crude oil being exchanged for refined petroleum products. He said there is also increased trade in fast moving consumer products like cars, as well as tourism.
We have also seen increased investment flows across the regions particularly in the area of education for establishment of schools or to pay school fees.
He said for example about $68 billion was paid as school fees across the continent by Africans last year and this is besides remittances by Africans working in other African countries.
He said the mission of the bank is to dominate this booming regional trade. That is why we are present and operate in 31 African countries and have designed products aimed at promoting financial integration in the region.
“We want to be known for not only integrity, as a bank that is transparent in its business dealings, but we also want to be known for dominance of regional trade,” he said.
“We want to be known as the dominant bank in regional trade, in addition to being known for integrity”, said Jubril Aku.
Meanwhile, the bank has bounced back to profitability in its operating year ended 2010, with profit-before-tax rising to N2.12 billion from N4.59 billion loss recorded in the previous operating year.
Though gross earnings fell by 2.6 per cent, operating income rose by 22.8 per cent. The bank also grew its balance sheet size to N454 billion from N355 billion while its loan portfolio rose by 18 per cent.
Shareholders however would have to wait before enjoying the improved fortunes of the bank through dividend. “The time of recovery is not the time to give away profit but to grow capital. So for now, the board favours capital growth,” he said.
Although Ecobank through its parent company, Ecobank Transnational is present in 31 African countries, it is still seeking opportunities to grow its business to be among the dominant banks. The quest for growth prompted the bank to assume the private sector deposits and branches of three of the 14 banks that could not make the December 31st 2006 deadline for the N25 billion minimum capital base, which increased its branch network to over 200 from 54. To consolidate on this, the bank bidded for Union Bank but its bid was not successful.
This notwithstanding, the bank is still open to opportunities to grow through business combination.
“We want to grow but we are not desperate. Nigeria is a large market but size and scale are important here. So we are interested in any business combination that would give us scale. We are ready to discuss business combination with any bank if it has benefits and value for our shareholders,” he said.
The Vanguard
“We have seen increasing trade link between African countries mainly within regional corridors like the West African bloc and the East African bloc. We also have also seen some trading between the blocs”, he told Financial journalists in Lagos.
He said that though most of the regional trade is in commodities like cattle, grains, there have also been increases in government to government business transactions. He said for example there have been increased business between Nigerian government and African governments with refineries and crude oil being exchanged for refined petroleum products. He said there is also increased trade in fast moving consumer products like cars, as well as tourism.
We have also seen increased investment flows across the regions particularly in the area of education for establishment of schools or to pay school fees.
He said for example about $68 billion was paid as school fees across the continent by Africans last year and this is besides remittances by Africans working in other African countries.
He said the mission of the bank is to dominate this booming regional trade. That is why we are present and operate in 31 African countries and have designed products aimed at promoting financial integration in the region.
“We want to be known for not only integrity, as a bank that is transparent in its business dealings, but we also want to be known for dominance of regional trade,” he said.
“We want to be known as the dominant bank in regional trade, in addition to being known for integrity”, said Jubril Aku.
Meanwhile, the bank has bounced back to profitability in its operating year ended 2010, with profit-before-tax rising to N2.12 billion from N4.59 billion loss recorded in the previous operating year.
Though gross earnings fell by 2.6 per cent, operating income rose by 22.8 per cent. The bank also grew its balance sheet size to N454 billion from N355 billion while its loan portfolio rose by 18 per cent.
Shareholders however would have to wait before enjoying the improved fortunes of the bank through dividend. “The time of recovery is not the time to give away profit but to grow capital. So for now, the board favours capital growth,” he said.
Although Ecobank through its parent company, Ecobank Transnational is present in 31 African countries, it is still seeking opportunities to grow its business to be among the dominant banks. The quest for growth prompted the bank to assume the private sector deposits and branches of three of the 14 banks that could not make the December 31st 2006 deadline for the N25 billion minimum capital base, which increased its branch network to over 200 from 54. To consolidate on this, the bank bidded for Union Bank but its bid was not successful.
This notwithstanding, the bank is still open to opportunities to grow through business combination.
“We want to grow but we are not desperate. Nigeria is a large market but size and scale are important here. So we are interested in any business combination that would give us scale. We are ready to discuss business combination with any bank if it has benefits and value for our shareholders,” he said.
The Vanguard
African diaspora home remittances reach $40 billion in 2010
by Favour Nnabugwu
Thirty million Africans across the globe directly invested $40 billion into the continent's economy in 2010.
According to a survey carried by African Development Bank and the World Bank recently, Africans' investment ranged from land purchases, building a home, and starting a business. Education was the second-highest use of remittances from outside Africa into Nigeria and Uganda; the third highest into Burkina Faso, and the fourth highest into Kenya
Report on African countries remittances, skills and investments are jointly carried out by the African Development Bank and the World Bank as part of the Africa Migration Project.
A breakdown of the$40billion investment showed that Nigerians in diaspora invested 57 percent; 55 percent in Kenya; 36 percent in Burkina Faso; 20 percent in Uganda and Senegal, 15 percent.
Mr Hans Timmer, director of development prospects at the World Bank said, "Migration pressures will only rise in the future as a result of demographic changes of rising population in Africa and falling labor forces in Europe and many developed countries," said. "Therefore, adapting policy responses to demographic forces and crafting multilateral arrangements for managing future migration is essential."
Timmer stated, "Two-thirds of migrants from Sub-Saharan Africa, particularly poorer migrants, go to other countries in the region, while more than 90 percent of migrants from North Africa have moved outside the African continent.
The top destinations for African migrants are France (9 percent of total emigrants), Cote d'Ivoire (8 percent), South Africa (6 percent), Saudi Arabia (5 percent), and the United States and the United Kingdom (4 percent each).
Mr Shantayanan Devarajan, chief economist of the Africa region at the World Bank said, "Migration of skilled labor is particularly high in small and low-income African countries, which already have low levels of human capital. Fragile and post-war countries face even bigger challenges because of the flight of human capital.
African governments and policy makers should focus on increasing education and skill levels and establishing an environment in which high_skilled workers have productive opportunities at home."
Dilip Ratha, main author of the report and lead economist at the World Bank in his on submission said African governments need to strengthen ties between Diasporas and home countries in order to protect migrants, and expand competition in remittance markets else the potential of migration for Africa remains largely untapped.
According to Ratha, "One innovation worth considering are diaspora bonds, which are sold by governments or private companies to nationals living abroad. These bonds have already been successful in tapping into assets of Israeli and Indian citizens living abroad".
"Sub-Saharan African countries can potentially raise $5-$10 billion a year in diaspora bonds. Countries with large diasporas in high-income countries that can potentially issue diaspora bonds include Ethiopia, Ghana, Kenya, Liberia, Nigeria, Senegal, Uganda, and Zambia in Sub-Saharan Africa and Egypt, Morocco, and Tunisia in North Africa."
allafrica.com
Thirty million Africans across the globe directly invested $40 billion into the continent's economy in 2010.
According to a survey carried by African Development Bank and the World Bank recently, Africans' investment ranged from land purchases, building a home, and starting a business. Education was the second-highest use of remittances from outside Africa into Nigeria and Uganda; the third highest into Burkina Faso, and the fourth highest into Kenya
Report on African countries remittances, skills and investments are jointly carried out by the African Development Bank and the World Bank as part of the Africa Migration Project.
A breakdown of the$40billion investment showed that Nigerians in diaspora invested 57 percent; 55 percent in Kenya; 36 percent in Burkina Faso; 20 percent in Uganda and Senegal, 15 percent.
Mr Hans Timmer, director of development prospects at the World Bank said, "Migration pressures will only rise in the future as a result of demographic changes of rising population in Africa and falling labor forces in Europe and many developed countries," said. "Therefore, adapting policy responses to demographic forces and crafting multilateral arrangements for managing future migration is essential."
Timmer stated, "Two-thirds of migrants from Sub-Saharan Africa, particularly poorer migrants, go to other countries in the region, while more than 90 percent of migrants from North Africa have moved outside the African continent.
The top destinations for African migrants are France (9 percent of total emigrants), Cote d'Ivoire (8 percent), South Africa (6 percent), Saudi Arabia (5 percent), and the United States and the United Kingdom (4 percent each).
Mr Shantayanan Devarajan, chief economist of the Africa region at the World Bank said, "Migration of skilled labor is particularly high in small and low-income African countries, which already have low levels of human capital. Fragile and post-war countries face even bigger challenges because of the flight of human capital.
African governments and policy makers should focus on increasing education and skill levels and establishing an environment in which high_skilled workers have productive opportunities at home."
Dilip Ratha, main author of the report and lead economist at the World Bank in his on submission said African governments need to strengthen ties between Diasporas and home countries in order to protect migrants, and expand competition in remittance markets else the potential of migration for Africa remains largely untapped.
According to Ratha, "One innovation worth considering are diaspora bonds, which are sold by governments or private companies to nationals living abroad. These bonds have already been successful in tapping into assets of Israeli and Indian citizens living abroad".
"Sub-Saharan African countries can potentially raise $5-$10 billion a year in diaspora bonds. Countries with large diasporas in high-income countries that can potentially issue diaspora bonds include Ethiopia, Ghana, Kenya, Liberia, Nigeria, Senegal, Uganda, and Zambia in Sub-Saharan Africa and Egypt, Morocco, and Tunisia in North Africa."
allafrica.com
African, Chinese banks join to boost trade
by Moses Mozart Dzawu
Ecobank Transnational Incorporated, a bank with a presence in 32 African countries, entered into an alliance with Bank of China to boost the flow of funds and trade between the Asian nation and Africa.
Ecobank opened a China desk in Accra, Ghana, Arnold Ekpe, the group’s chief executive officer, said. The desk will be managed by two employees of Ecobank and two senior staff from Bank of China.
“The desk will facilitate loans to Chinese and African businesses, corporations and development projects in Africa,” he said.
Trade between Africa and China grew 43 percent in 2010 from a year earlier, Samuel Ashitey Adjei, managing director of Ecobank Ghana Ltd. said. Trade between Ghana and the Asian nation increased to $2.05 billion in 2010 from $1.3 billion the year before, he said.
Ecobank, which is listed in Ghana, Nigeria and on West Africa’s regional bourse, has an alliance with Nedbank Group Ltd. of South Africa. Ghana last year signed $13 billion of loan agreements with Chinese investors. The West African nation will start using $2.85 billion of the loans for road projects this year, Roads and Highways Minister Joe Gidisu said Nov. 3.
Bloomberg
Ecobank Transnational Incorporated, a bank with a presence in 32 African countries, entered into an alliance with Bank of China to boost the flow of funds and trade between the Asian nation and Africa.
Ecobank opened a China desk in Accra, Ghana, Arnold Ekpe, the group’s chief executive officer, said. The desk will be managed by two employees of Ecobank and two senior staff from Bank of China.
“The desk will facilitate loans to Chinese and African businesses, corporations and development projects in Africa,” he said.
Trade between Africa and China grew 43 percent in 2010 from a year earlier, Samuel Ashitey Adjei, managing director of Ecobank Ghana Ltd. said. Trade between Ghana and the Asian nation increased to $2.05 billion in 2010 from $1.3 billion the year before, he said.
Ecobank, which is listed in Ghana, Nigeria and on West Africa’s regional bourse, has an alliance with Nedbank Group Ltd. of South Africa. Ghana last year signed $13 billion of loan agreements with Chinese investors. The West African nation will start using $2.85 billion of the loans for road projects this year, Roads and Highways Minister Joe Gidisu said Nov. 3.
Bloomberg
Zambia 2010 exports up 67% on copper boom
Zambia's export earnings surged more than 67 percent in 2010 as mining companies in Africa's top copper producer expanded output as global prices surged, the trade minister said on April 7.
Felix Mutati said that Zambia's exports totalled $7.2 billion in 2010, up from $4.3 billion in 2009, mainly due to rising copper production and higher prices.
Copper output in Zambia is expected to rise further this year to 900,000 tonnes, from 819,159 tonnes last year, as mining companies boost output.
Mutati said export earnings were also boosted by a 50 percent increase in exports of products such as flowers, maize and cement last year.
Expanding market share in regions such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) also helped, he said.
"We expect our exports to exceed $7.2 billion in 2011 because both copper production and non-traditional exports are expected to grow," Mutati said.
Copper prices, which hit a record high $10.90 in February are expected to keep rising this year, helped by fast-growing demand from emerging economies like China.
The leading destinations for Zambia's exports were Switzerland, China, South Africa, the Democratic Republic of Congo and United Arab Emirates, Mutati said.
Reuters
Felix Mutati said that Zambia's exports totalled $7.2 billion in 2010, up from $4.3 billion in 2009, mainly due to rising copper production and higher prices.
Copper output in Zambia is expected to rise further this year to 900,000 tonnes, from 819,159 tonnes last year, as mining companies boost output.
Mutati said export earnings were also boosted by a 50 percent increase in exports of products such as flowers, maize and cement last year.
Expanding market share in regions such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC) also helped, he said.
"We expect our exports to exceed $7.2 billion in 2011 because both copper production and non-traditional exports are expected to grow," Mutati said.
Copper prices, which hit a record high $10.90 in February are expected to keep rising this year, helped by fast-growing demand from emerging economies like China.
The leading destinations for Zambia's exports were Switzerland, China, South Africa, the Democratic Republic of Congo and United Arab Emirates, Mutati said.
Reuters
Zimbabwe’s mining output doubles in 2010
by Brian Latham and Ainhoa Goyeneche
Mineral production from Zimbabwe, which has the world’s second-biggest platinum and chrome reserves after South Africa, doubled last year to $1.38 billion as the country’s economy recovers from a decade-long recession, Harare-based Robertson Economics said.
The southern African nation boosted output from $672 million in 2009, economist John Robertson said in an e-mailed statement today, citing figures from the country’s Chamber of Mines. Platinum production rose 26 percent to 8.6 metric tons in 2010, earning $409 million, while gold generated $380 million from 9.6 tons, compared with $157 million from 4.9 tons a year earlier, he said.
President Robert Mugabe’s Zimbabwe African National Union- Patriotic Front and Prime Minister Morgan Tsvangirai’s Movement for Democratic Change formed a coalition government in 2009, helping to end a political crisis and lift the economy out of recession. Platinum and gold production will probably reach 12.5 and 13 tons respectively this year, with total mining output expected to grow 44 percent, the nation’s central bank said on Jan. 29.
The government wants local Zimbabweans to benefit more from the increase in output, particularly from mines. Foreign-owned miners like Zimplats Ltd., Rio Tinto Plc (RIO) and Anglo American Plc (AAL) were on March 28 given 45 days to show how they will dispose of 51 percent of their Zimbabwe operations.
Zimbabwe produced 154,336 tons of high carbon ferrochrome worth $135 million in 2010, more than double the 72,223 tons in 2009, Robertson said.
Sinosteel Corp., China’s second-biggest iron-ore trading company, is Zimbabwe’s largest chrome ore miner through its Zimasco Ltd. unit. Zimasco said March 3 that it plans to spend $300 million to expand its Kwekwe-based smelter. Zimbabwe been mining chrome on Zimbabwe’s Great Dyke mountain range since about 1918.
Coal production jumped 60 percent to 2.66 million tons last year, Robertson said. The fuel, mined mainly by the Hwange Colliery Co. Ltd., generated $97 million. Nickel output rose to 6,133 tons in 2010 from 4,858 tons in the previous year, he said. Nickel is mined in the northeastern town of Bindura by Mwana Africa Plc-owned Bindura Nickel Corp. Ltd.
Bloomberg
Mineral production from Zimbabwe, which has the world’s second-biggest platinum and chrome reserves after South Africa, doubled last year to $1.38 billion as the country’s economy recovers from a decade-long recession, Harare-based Robertson Economics said.
The southern African nation boosted output from $672 million in 2009, economist John Robertson said in an e-mailed statement today, citing figures from the country’s Chamber of Mines. Platinum production rose 26 percent to 8.6 metric tons in 2010, earning $409 million, while gold generated $380 million from 9.6 tons, compared with $157 million from 4.9 tons a year earlier, he said.
President Robert Mugabe’s Zimbabwe African National Union- Patriotic Front and Prime Minister Morgan Tsvangirai’s Movement for Democratic Change formed a coalition government in 2009, helping to end a political crisis and lift the economy out of recession. Platinum and gold production will probably reach 12.5 and 13 tons respectively this year, with total mining output expected to grow 44 percent, the nation’s central bank said on Jan. 29.
The government wants local Zimbabweans to benefit more from the increase in output, particularly from mines. Foreign-owned miners like Zimplats Ltd., Rio Tinto Plc (RIO) and Anglo American Plc (AAL) were on March 28 given 45 days to show how they will dispose of 51 percent of their Zimbabwe operations.
Zimbabwe produced 154,336 tons of high carbon ferrochrome worth $135 million in 2010, more than double the 72,223 tons in 2009, Robertson said.
Sinosteel Corp., China’s second-biggest iron-ore trading company, is Zimbabwe’s largest chrome ore miner through its Zimasco Ltd. unit. Zimasco said March 3 that it plans to spend $300 million to expand its Kwekwe-based smelter. Zimbabwe been mining chrome on Zimbabwe’s Great Dyke mountain range since about 1918.
Coal production jumped 60 percent to 2.66 million tons last year, Robertson said. The fuel, mined mainly by the Hwange Colliery Co. Ltd., generated $97 million. Nickel output rose to 6,133 tons in 2010 from 4,858 tons in the previous year, he said. Nickel is mined in the northeastern town of Bindura by Mwana Africa Plc-owned Bindura Nickel Corp. Ltd.
Bloomberg
Senegal: gradual improvement in electricity supply promised
President Abdoulaye Wade of Senegal has promised a gradual improvement in electricity supply in his country, with the commissioning at the end of two new power plants. One will generate 50 megawatts, and another with a capacity to generate 100MW in August.
In a message to the nation on the eve of the country's 51st anniversary on April 4, President Wade said the tender for the plants have been finalised. He also disclosed that the National Electricity Company, SENELEC, was currently negotiating with interested investors to install wind turbines with a total capacity of 140 MW.
The Senegalese leader also promised a 7.5MW solar power plant and another 300MW biomass power plant, saying the energy sector recovery plan would cost 650 billion CFA francs (US$1.3 billion).
Shortage in electricity supply in the West African nation have worsened in recent months.
Afriquejet
In a message to the nation on the eve of the country's 51st anniversary on April 4, President Wade said the tender for the plants have been finalised. He also disclosed that the National Electricity Company, SENELEC, was currently negotiating with interested investors to install wind turbines with a total capacity of 140 MW.
The Senegalese leader also promised a 7.5MW solar power plant and another 300MW biomass power plant, saying the energy sector recovery plan would cost 650 billion CFA francs (US$1.3 billion).
Shortage in electricity supply in the West African nation have worsened in recent months.
Afriquejet
DHL to introduce pan-African road- freight service
by Eric Ombok
DHL Worldwide Express, the courier unit of Deutsche Post AG (DPW), plans to introduce a pan-African road- freight service to tap into accelerating consumer spending on the continent.
The so-called Africa Connect unit will have hubs in east, west and southern Africa and will seek to accelerate the inter- regional movement of goods, Amadou Diallo, chief executive officer for Africa and South Asia-Pacific, said in Nairobi, the Kenyan capital.
“Road is much faster,” as it will avoid congestion at ports on the continent, Diallo said.
African economies grew an average of 4.9 percent between 2000 and 2008, while foreign direct investment in the continent increased to $62 billion from $9 billion over the same period, according to a DHL statement. Consumer spending on the continent grew 16 percent between 2005 and 2008, it said.
“A significant amount of growth in our business is resulting from small and medium enterprises,” Diallo said in the statement. “This group is going to be one of DHL’s main focal points as we look at how we can help these companies expand beyond current limits.”
DHL’s East African hub, based in Mombasa, Kenya, has been operational for two years and will now include Dar es Salaam, the commercial capital of neighboring Tanzania. A road linking Morocco, Mauritania, Senegal and Mali will cater for the western Africa hub, while Johannesburg and Cape Town in South Africa will service the southern region, he said.
DHL is also counting on growing trade volume between Africa and India and China to increase its revenue on the continent, Diallo said. The company established an India desk in 21 nations and plans to set up four more this year in Senegal, Mexico, Colombia and Netherlands. The desks comprises DHL staff providing Indian investors with information on doing business in the host countries, he said
“What we are trying to do is link Asia with Africa,” he added.
Bloomberg
DHL Worldwide Express, the courier unit of Deutsche Post AG (DPW), plans to introduce a pan-African road- freight service to tap into accelerating consumer spending on the continent.
The so-called Africa Connect unit will have hubs in east, west and southern Africa and will seek to accelerate the inter- regional movement of goods, Amadou Diallo, chief executive officer for Africa and South Asia-Pacific, said in Nairobi, the Kenyan capital.
“Road is much faster,” as it will avoid congestion at ports on the continent, Diallo said.
African economies grew an average of 4.9 percent between 2000 and 2008, while foreign direct investment in the continent increased to $62 billion from $9 billion over the same period, according to a DHL statement. Consumer spending on the continent grew 16 percent between 2005 and 2008, it said.
“A significant amount of growth in our business is resulting from small and medium enterprises,” Diallo said in the statement. “This group is going to be one of DHL’s main focal points as we look at how we can help these companies expand beyond current limits.”
DHL’s East African hub, based in Mombasa, Kenya, has been operational for two years and will now include Dar es Salaam, the commercial capital of neighboring Tanzania. A road linking Morocco, Mauritania, Senegal and Mali will cater for the western Africa hub, while Johannesburg and Cape Town in South Africa will service the southern region, he said.
DHL is also counting on growing trade volume between Africa and India and China to increase its revenue on the continent, Diallo said. The company established an India desk in 21 nations and plans to set up four more this year in Senegal, Mexico, Colombia and Netherlands. The desks comprises DHL staff providing Indian investors with information on doing business in the host countries, he said
“What we are trying to do is link Asia with Africa,” he added.
Bloomberg
Guinea eyes bigger mine stakes, new rules
by Richard Valdmanis and Bate Felix
Guinea's government aims to more than double the stake it can hold in mining projects and to toughen procedures for issuing development permits, according to a draft of the West African state's new mining code.
The changes are aimed at boosting the impoverished country's share in its vast minerals wealth, but could backfire by limiting much-needed future investment from international mining firms, analysts and industry insiders said.
Other proposed changes in the code, which is set to become law in coming months, include new tax breaks for mining companies involved in exploration and mine construction, and the creation of a 'Local Development Fund' fed by an existing 0.5-1.0 percent levy on minerals sales.
Guinea is the world's top exporter of the aluminum ore bauxite and holds some of the world's biggest unexploited iron ore reserves that have drawn billions of dollars in planned investment from miners Rio Tinto and Vale.
The draft mining code would give the Guinean state a free 15 percent of mining projects, as well as the option of purchasing an additional 20 percent -- bringing the total potential state share to 35 percent. This proposal, which would more than double the current 15 percent state share in projects, will draw the biggest protest from mining companies who argue it will cut into their revenues without reducing capital outlay.
It is unclear if the government will compromise on the issue and legal battles over retroactivity to existing mining projects are a possibility if the code becomes law.
Guinea President Alpha Conde has signalled that this change is a priority, stating earlier this year that he wants Guinea to have a blocking minority stake in all of the country's mining projects -- something requiring at least 33 percent.
The code would also toughen up procedures for companies seeking to get a mining permit, requiring them to complete a feasibility study and environmental and social impact studies beforehand.
"In the past, companies with big investments were offered the possibility of a customisation of the code to give them some security -- basically a convention or framework agreement that would mean they could avoid the various studies before the concession was granted," said one industry official who asked not to be named. "That's been removed."
In a move to attract more exploration, however, companies doing research and mine construction would get a series of new tax breaks and deductions, including on value-added, equipment imports, and customs duties.
The taxes would mostly be reimposed once exploitation began, according to the draft document.
The draft code also references the creation of a new 'Local Development Fund' that would by fed by a 0.5-1.0 percent existing community development levy on minerals turnover.
The code does not detail how the new fund would be managed and a Guinean mining official was not immediately available to comment.
Reuters
Guinea's government aims to more than double the stake it can hold in mining projects and to toughen procedures for issuing development permits, according to a draft of the West African state's new mining code.
The changes are aimed at boosting the impoverished country's share in its vast minerals wealth, but could backfire by limiting much-needed future investment from international mining firms, analysts and industry insiders said.
Other proposed changes in the code, which is set to become law in coming months, include new tax breaks for mining companies involved in exploration and mine construction, and the creation of a 'Local Development Fund' fed by an existing 0.5-1.0 percent levy on minerals sales.
Guinea is the world's top exporter of the aluminum ore bauxite and holds some of the world's biggest unexploited iron ore reserves that have drawn billions of dollars in planned investment from miners Rio Tinto and Vale.
The draft mining code would give the Guinean state a free 15 percent of mining projects, as well as the option of purchasing an additional 20 percent -- bringing the total potential state share to 35 percent. This proposal, which would more than double the current 15 percent state share in projects, will draw the biggest protest from mining companies who argue it will cut into their revenues without reducing capital outlay.
It is unclear if the government will compromise on the issue and legal battles over retroactivity to existing mining projects are a possibility if the code becomes law.
Guinea President Alpha Conde has signalled that this change is a priority, stating earlier this year that he wants Guinea to have a blocking minority stake in all of the country's mining projects -- something requiring at least 33 percent.
The code would also toughen up procedures for companies seeking to get a mining permit, requiring them to complete a feasibility study and environmental and social impact studies beforehand.
"In the past, companies with big investments were offered the possibility of a customisation of the code to give them some security -- basically a convention or framework agreement that would mean they could avoid the various studies before the concession was granted," said one industry official who asked not to be named. "That's been removed."
In a move to attract more exploration, however, companies doing research and mine construction would get a series of new tax breaks and deductions, including on value-added, equipment imports, and customs duties.
The taxes would mostly be reimposed once exploitation began, according to the draft document.
The draft code also references the creation of a new 'Local Development Fund' that would by fed by a 0.5-1.0 percent existing community development levy on minerals turnover.
The code does not detail how the new fund would be managed and a Guinean mining official was not immediately available to comment.
Reuters
South Korea eyes exports to Africa
South Korea is seeking to boost its business presence in Africa by establishing three new business centres to support South Korean businesses and African importers there, Yonhap News Agency reported a state-run trade agency as saying on April 13.
The Korea Trade-Investment Promotion Agency (KOTRA) said it had opened one of the new Korea Business Centers (KBC) in the Ethiopian capital of Addis Ababa.
The agency is also set to open a KBC in Accra, the capital of Ghana and one in Douala, the largest city in Cameroon, in September, it said.
The three new KBCs will bring the number of South Korean business support centers in Africa to seven as KOTRA already has KBCs in South Africa, Nigeria, Kenya and Sudan.
"Africa had long been regarded as a subject of one-sided assistance and not a business partner due to years of civil wars, famine and diseases, but with a reduction of armed conflicts and strong economic growth that has stayed above an annual average of 5 percent since 2004 the region is now becoming a new trade partner," KOTRA said.
KOTRA noted the African continent may become one of the world's largest markets in the future with over 800 million people living in the 48 countries south of the Sahara Desert.
Africa's imports jumped more than two-fold from US$154 billion in 2004 to $324 billion in 2008, recording annual growth of over 20 percent, it said.
In 2009, South Korea shipped $9.62 billion worth of products to African countries, only about two percent of its annual exports.
The country imported US$4.68 million worth of goods, or 1.1 percent of all its imports, from Africa in the same year.
"Africa is also becoming very important as a future source of energy for our country as the region has the world's third largest reserves of oil and the world's fourth largest reserves of natural gas," KOTRA said.
Bernama
The Korea Trade-Investment Promotion Agency (KOTRA) said it had opened one of the new Korea Business Centers (KBC) in the Ethiopian capital of Addis Ababa.
The agency is also set to open a KBC in Accra, the capital of Ghana and one in Douala, the largest city in Cameroon, in September, it said.
The three new KBCs will bring the number of South Korean business support centers in Africa to seven as KOTRA already has KBCs in South Africa, Nigeria, Kenya and Sudan.
"Africa had long been regarded as a subject of one-sided assistance and not a business partner due to years of civil wars, famine and diseases, but with a reduction of armed conflicts and strong economic growth that has stayed above an annual average of 5 percent since 2004 the region is now becoming a new trade partner," KOTRA said.
KOTRA noted the African continent may become one of the world's largest markets in the future with over 800 million people living in the 48 countries south of the Sahara Desert.
Africa's imports jumped more than two-fold from US$154 billion in 2004 to $324 billion in 2008, recording annual growth of over 20 percent, it said.
In 2009, South Korea shipped $9.62 billion worth of products to African countries, only about two percent of its annual exports.
The country imported US$4.68 million worth of goods, or 1.1 percent of all its imports, from Africa in the same year.
"Africa is also becoming very important as a future source of energy for our country as the region has the world's third largest reserves of oil and the world's fourth largest reserves of natural gas," KOTRA said.
Bernama
Asian buyers shun West African oil in April
West African oil prices at multi-year highs have started to ward off Asian buyers who are instead opting to import cheaper Saudi barrels, trade sources said in early April.#
Shipments of west African crude oil east are set to fall to 1.58 million barrels per day (bpd) in April, down nearly 10 percent from 1.75 million bpd the previous month, according to data gathered from trade sources.
"From March, the number is definitely down," said a West African trader.
Crude oil differentials for the benchmark West African grade Qua Iboe rocketed to more than two-and-a-half year highs in late March as regular buyers of Libyan oil sought alternative supplies in West Africa.
Crude oil from the region mostly comes from Africa's two top producers Nigeria and Angola.
Nigerian crude in particular is a good substitute for the light, easy-to-refine oil from Libya which was the continent's third biggest producer before violent clashes broke out in late February.
China -- a regular buyer of West African oil -- will import around 760,000 bpd this month compared with slightly over 1 million bpd in March, the data showed.
Traders said they expect Asian imports to remain low in May because of strong competition from U.S. and European refiners coming out of planned maintenance this spring.
"We are seeing fewer west African cargoes going to India and Taiwan in May, but more Saudi barrels," said an oil trader.
One measure of the potential profitability of the arbitrage to ship crude eastwards is the premium of Brent over Dubai crude.
This has been steadily rising since the Libyan unrest and hit to the widest level in more than five years last week at over $7 a barrel, Reuters data showed.
"The Brent/Dubai is so wide and Waf (West African) differentials are so strong. It was already super wide and now it's mega wide," said a third trader.
Reuters
Shipments of west African crude oil east are set to fall to 1.58 million barrels per day (bpd) in April, down nearly 10 percent from 1.75 million bpd the previous month, according to data gathered from trade sources.
"From March, the number is definitely down," said a West African trader.
Crude oil differentials for the benchmark West African grade Qua Iboe rocketed to more than two-and-a-half year highs in late March as regular buyers of Libyan oil sought alternative supplies in West Africa.
Crude oil from the region mostly comes from Africa's two top producers Nigeria and Angola.
Nigerian crude in particular is a good substitute for the light, easy-to-refine oil from Libya which was the continent's third biggest producer before violent clashes broke out in late February.
China -- a regular buyer of West African oil -- will import around 760,000 bpd this month compared with slightly over 1 million bpd in March, the data showed.
Traders said they expect Asian imports to remain low in May because of strong competition from U.S. and European refiners coming out of planned maintenance this spring.
"We are seeing fewer west African cargoes going to India and Taiwan in May, but more Saudi barrels," said an oil trader.
One measure of the potential profitability of the arbitrage to ship crude eastwards is the premium of Brent over Dubai crude.
This has been steadily rising since the Libyan unrest and hit to the widest level in more than five years last week at over $7 a barrel, Reuters data showed.
"The Brent/Dubai is so wide and Waf (West African) differentials are so strong. It was already super wide and now it's mega wide," said a third trader.
Reuters
Ghana to host West African business workshop
James Victor Gbeho, President of the Economic Community of West African State (ECOWAS) Commission, is to open a three-day West African Business Development Workshop and Exhibition to be held in Accra, Ghana from May 31 to June 1 this year.
The workshop is aimed at promoting market development practices for Small Medium Enterprises to expand their operations in a more integrated market in West African.
The theme for the event is: “Expanding your Business in West Africa: A Strategic Approach.”
A statement said the event would offer information on opportunities and regulations regarding investments in key business areas, in Ghana and other West African countries. The statement said the workshop is in response to consistent calls on ECOWAS to ensure a more intra-regional trade and “the move from an ECOWAS of States to an ECOWAS of people.”
It said the event would cover trade tariffs and customs duties at entry points, transportation, logistics and insurance in the West Africa Sub-Region.
The statement said “the event is an opportunity for local businesses in Ghana to meet prospective partners and clients from other West African countries.”
Ghana News Agency
The workshop is aimed at promoting market development practices for Small Medium Enterprises to expand their operations in a more integrated market in West African.
The theme for the event is: “Expanding your Business in West Africa: A Strategic Approach.”
A statement said the event would offer information on opportunities and regulations regarding investments in key business areas, in Ghana and other West African countries. The statement said the workshop is in response to consistent calls on ECOWAS to ensure a more intra-regional trade and “the move from an ECOWAS of States to an ECOWAS of people.”
It said the event would cover trade tariffs and customs duties at entry points, transportation, logistics and insurance in the West Africa Sub-Region.
The statement said “the event is an opportunity for local businesses in Ghana to meet prospective partners and clients from other West African countries.”
Ghana News Agency
Zimbabwe bans chrome exports
Zimbabwe has banned the export of chrome as it looks to build internal refinery capacity, the Ministry of Mines and Mining Development said.
Zimbabwe, along with South Africa, holds about 90% of the world's chromite reserves and resources, according to the US Geological Survey, and the ban will affect exports to China and South Africa.
There are three large-scale ferrochrome miners in Zimbabwe, including Zimbabwe Alloys and Zimasco, which is owned by China's Sinosteel.
Zimasco recently told state media it planned a $300m investment in the second half of 2011 to ramp up output and build a new smelter. Zimbabwe already has three smelters that have the capacity to handle 1.5 million tonnes of chrome.
The ministry in November 2009 allowed the export of chrome for another 18 months, a period which will expire this month.
Zimbabwe exported 600,000 tonnes of chrome in the 18 months from November 2009, mostly to China and South Africa, according to official figures.
Mining MX
Zimbabwe, along with South Africa, holds about 90% of the world's chromite reserves and resources, according to the US Geological Survey, and the ban will affect exports to China and South Africa.
There are three large-scale ferrochrome miners in Zimbabwe, including Zimbabwe Alloys and Zimasco, which is owned by China's Sinosteel.
Zimasco recently told state media it planned a $300m investment in the second half of 2011 to ramp up output and build a new smelter. Zimbabwe already has three smelters that have the capacity to handle 1.5 million tonnes of chrome.
The ministry in November 2009 allowed the export of chrome for another 18 months, a period which will expire this month.
Zimbabwe exported 600,000 tonnes of chrome in the 18 months from November 2009, mostly to China and South Africa, according to official figures.
Mining MX
Zambia attracts $2 billion foreign direct investment
by Arthur Simochoba
Foreign direct investment (FDI) into Zambia in 2010 was $2-billion and was not concentrated on mining as there were also substantial inflows into manufacturing, wholesale, retail trade and tourism. In the same year, exports were worth more than $7-billion, up from $4.3-billion in 2009.
Commerce, Trade and Industry Minister Felix Mutati ascribed the rise to an expansion in investments and improvement in market access.
Among the major exports were copper, cobalt, electricity and tobacco.
Between 2008-2010, exports rose by 29%. They were valued at $5.1-billion in 2008, declined to $4.3-billion in 2009 and rose to $7.2-billion in 2010. The top destinations were Switzerland, China, South Africa, the Democratic Republic of Congo (DRC), the UK, Zimbabwe, Tanzania and the United Arab Emirates.
"The increase in exports to the UK, Switzerland, Tanzania, Zimbabwe and SA was as a result of improved rules of access, such as the Free Trade Area,'' Mutati said.
The share of nonmetal exports in total exports grew from 19% in 2006 to 23% in 2009. Zambia is planning to increase this share to 30% by 2015.
The main policy thrust now is to transform the industrial sector by expanding the manufacturing base and increasing value addition through the development of export processing zones known locally as multi-facility eEconomic zones (MFEZs) and industrial parks.
One such zone at Chambishi in the mining area is rapidly shaping up, and several Chinese companies have moved in. More are on the way. Lusaka will have two MFEZs and the new mining area in the northwest has also demarcated one.
"We will continue to promote the development of the MFEZs aimed at increasing local and foreign direct investment, employment creation, skills development and technology transfer to local entrepreneurs and communities as well as contribute to the diversification of the economy,'' Mutati said.
Further, an update of economic reforms given at a recent conference of the Zambia International Business Advisory Council (ZIBAC) that was formed in 2003 to address policy constraints to private sector investment, wealth and job creation showed that business reforms had accelerated.
To date, about 92 business licences have been eliminated, while 43 have been reclassified and 13 amalgamated into four, resulting in savings to the private sector estimated at R9-billion. An additional R10-billion in savings was realised through the reclassification of 38 local government business permits into a single business levy.
An electronic database for all business licences is now operational and registration is being integrated through a one-stop-shop (OSS) registration system. That went a step further on April 5, when the Zambia Development Agency (ZDA) signed an inter-agency agreement with key business facilitation institutions for the establishment and management of an OSS business registration system.
The agreement formalised collaboration for the OSS among such institutions as the Patents and Companies Registration Agency (PACRA) and the Zambia Revenue Authority (ZRA).
In 2010, about 18000 new businesses were registered.
For overall ease of doing business, Zambia is now ranked 76th out of 183 countries. Last year, it was recognised as one of the top 10 reformers in the world and only recently it was awarded B+ rating by Fitch and Standard and Poor's rating agencies, which should strengthen the country's standing as an investment destination.
The conference made 17 recommendations for implementation over the next three years.
It was recommended that the ministry of finance should implement a uniform and simplified tax system by 2013 and the commerce ministry should enhance the marketing of Zambia so that it attracts $2-billion in FDI annually.
The same ministry was given the responsibility to promote domestic investment to reach 30% of FDI by 2012 and enhancing mind-set change for reform. The president and the ministry were called upon to sustain high-level political commitment to reform and ensure that at least ZMK10-billion was allocated to private sector development (PSD) reforms annually.
The ministry of labour has to improve productivity and ensure that a million formal jobs are created and reduce the cost of redundancy by 2014. The ministries of works and supply, communication and energy have to develop rail, energy, airport, and road and border infrastructure by 2014.
Timeslive
Foreign direct investment (FDI) into Zambia in 2010 was $2-billion and was not concentrated on mining as there were also substantial inflows into manufacturing, wholesale, retail trade and tourism. In the same year, exports were worth more than $7-billion, up from $4.3-billion in 2009.
Commerce, Trade and Industry Minister Felix Mutati ascribed the rise to an expansion in investments and improvement in market access.
Among the major exports were copper, cobalt, electricity and tobacco.
Between 2008-2010, exports rose by 29%. They were valued at $5.1-billion in 2008, declined to $4.3-billion in 2009 and rose to $7.2-billion in 2010. The top destinations were Switzerland, China, South Africa, the Democratic Republic of Congo (DRC), the UK, Zimbabwe, Tanzania and the United Arab Emirates.
"The increase in exports to the UK, Switzerland, Tanzania, Zimbabwe and SA was as a result of improved rules of access, such as the Free Trade Area,'' Mutati said.
The share of nonmetal exports in total exports grew from 19% in 2006 to 23% in 2009. Zambia is planning to increase this share to 30% by 2015.
The main policy thrust now is to transform the industrial sector by expanding the manufacturing base and increasing value addition through the development of export processing zones known locally as multi-facility eEconomic zones (MFEZs) and industrial parks.
One such zone at Chambishi in the mining area is rapidly shaping up, and several Chinese companies have moved in. More are on the way. Lusaka will have two MFEZs and the new mining area in the northwest has also demarcated one.
"We will continue to promote the development of the MFEZs aimed at increasing local and foreign direct investment, employment creation, skills development and technology transfer to local entrepreneurs and communities as well as contribute to the diversification of the economy,'' Mutati said.
Further, an update of economic reforms given at a recent conference of the Zambia International Business Advisory Council (ZIBAC) that was formed in 2003 to address policy constraints to private sector investment, wealth and job creation showed that business reforms had accelerated.
To date, about 92 business licences have been eliminated, while 43 have been reclassified and 13 amalgamated into four, resulting in savings to the private sector estimated at R9-billion. An additional R10-billion in savings was realised through the reclassification of 38 local government business permits into a single business levy.
An electronic database for all business licences is now operational and registration is being integrated through a one-stop-shop (OSS) registration system. That went a step further on April 5, when the Zambia Development Agency (ZDA) signed an inter-agency agreement with key business facilitation institutions for the establishment and management of an OSS business registration system.
The agreement formalised collaboration for the OSS among such institutions as the Patents and Companies Registration Agency (PACRA) and the Zambia Revenue Authority (ZRA).
In 2010, about 18000 new businesses were registered.
For overall ease of doing business, Zambia is now ranked 76th out of 183 countries. Last year, it was recognised as one of the top 10 reformers in the world and only recently it was awarded B+ rating by Fitch and Standard and Poor's rating agencies, which should strengthen the country's standing as an investment destination.
The conference made 17 recommendations for implementation over the next three years.
It was recommended that the ministry of finance should implement a uniform and simplified tax system by 2013 and the commerce ministry should enhance the marketing of Zambia so that it attracts $2-billion in FDI annually.
The same ministry was given the responsibility to promote domestic investment to reach 30% of FDI by 2012 and enhancing mind-set change for reform. The president and the ministry were called upon to sustain high-level political commitment to reform and ensure that at least ZMK10-billion was allocated to private sector development (PSD) reforms annually.
The ministry of labour has to improve productivity and ensure that a million formal jobs are created and reduce the cost of redundancy by 2014. The ministries of works and supply, communication and energy have to develop rail, energy, airport, and road and border infrastructure by 2014.
Timeslive
China, Uganda to crack down on counterfeit products
by Francis Kagolo
Chinese nationals caught exporting counterfeit and substandard products to Uganda are to be imprisoned for 20 years.This is one of the new measures China has announced to curb the vice.
In collaboration with the Uganda Bureau of Standards (UNBS), the Chinese government has launched a joint campaign to probe and stop the importation of fake products from China.
Zou Xiaoming, the economic counselor at the Chinese embassy in Kampala, said fake products would also be confiscated and destroyed and the production licences of the exporters revoked. Xiaoming said the move was taken to protect consumers and clean China’s name.
“We do not know how rampant the problem is. But the Ugandan government and people should join us to crack down the vice because we must safeguard the consumer’s rights and life,” he said. “There are very few manufacturers, especially cottage factories, which manufacture substandard or counterfeit products. Their products account for a small percentage of the products made in China but attract much attention around the world and damage China’s reputation,” Xiaoming added.
He said the embassy was in the final stages of signing a memorandum of understanding with UNBS and the trade ministry to ensure that the Ugandan market is free of Chinese counterfeit products.
Xiaoming urged any one in Uganda to report cases of fake products to the Chinese embassy on a hotline, promising to investigate and take action. For long, China has had a reputation for manufacturing and exporting counterfeits. According to Xiaoming, substandard and counterfeit products also exist on the Chinese market.
“We have shoes made of paper, milk powder or formula with melamine and counterfeit cell phones named Nokla which look like Nokia. But we are now working to stop all this,” he said.
Xiaoming was speaking at a ceremony where UNBS awarded an international quality management certificate to Sino-Africa, a Chinese pharmaceutical firm.
The certificate is given to companies that have attained the minimum international requirements to produce certain products and helps them access the international market.
With assistance from the Chinese government, the UNBS chief, Dr. Terry Kahuma, said Uganda would soon become “a no fly-zone for counterfeit and low standard goods.”
“China does not gain from being the source of counterfeits. They have shown good will, they are even sponsoring some of our staff to improve their skills in inspecting goods,” Kahuma said.
He also disclosed that more companies were applying for certification compared to the previous years; a trend he said indicated an improvement in the standards of production.
However, citing a number of challenges, Kahuma said the standards agency was still incapacitated to effectively weed counterfeit products out of the country.
Besides the absence of a strong punitive law for the offenders, he said UNBS lacked enough manpower as well as storage capacity for confiscated goods.
Kahuma added that there was inadequate monitory support from the finance ministry. In his award acceptance speech, the managing director of Sino-Africa, Kong Dong Sheng, pledged to stick to the set production standards so as to export to the global market, which, he said, had become more competitive.
Incorporated in Uganda since 1998, Sino-Africa manufactures medicines like paracetamol tablets, diagnostic and theatre equipment and furniture.
New Vision
Chinese nationals caught exporting counterfeit and substandard products to Uganda are to be imprisoned for 20 years.This is one of the new measures China has announced to curb the vice.
In collaboration with the Uganda Bureau of Standards (UNBS), the Chinese government has launched a joint campaign to probe and stop the importation of fake products from China.
Zou Xiaoming, the economic counselor at the Chinese embassy in Kampala, said fake products would also be confiscated and destroyed and the production licences of the exporters revoked. Xiaoming said the move was taken to protect consumers and clean China’s name.
“We do not know how rampant the problem is. But the Ugandan government and people should join us to crack down the vice because we must safeguard the consumer’s rights and life,” he said. “There are very few manufacturers, especially cottage factories, which manufacture substandard or counterfeit products. Their products account for a small percentage of the products made in China but attract much attention around the world and damage China’s reputation,” Xiaoming added.
He said the embassy was in the final stages of signing a memorandum of understanding with UNBS and the trade ministry to ensure that the Ugandan market is free of Chinese counterfeit products.
Xiaoming urged any one in Uganda to report cases of fake products to the Chinese embassy on a hotline, promising to investigate and take action. For long, China has had a reputation for manufacturing and exporting counterfeits. According to Xiaoming, substandard and counterfeit products also exist on the Chinese market.
“We have shoes made of paper, milk powder or formula with melamine and counterfeit cell phones named Nokla which look like Nokia. But we are now working to stop all this,” he said.
Xiaoming was speaking at a ceremony where UNBS awarded an international quality management certificate to Sino-Africa, a Chinese pharmaceutical firm.
The certificate is given to companies that have attained the minimum international requirements to produce certain products and helps them access the international market.
With assistance from the Chinese government, the UNBS chief, Dr. Terry Kahuma, said Uganda would soon become “a no fly-zone for counterfeit and low standard goods.”
“China does not gain from being the source of counterfeits. They have shown good will, they are even sponsoring some of our staff to improve their skills in inspecting goods,” Kahuma said.
He also disclosed that more companies were applying for certification compared to the previous years; a trend he said indicated an improvement in the standards of production.
However, citing a number of challenges, Kahuma said the standards agency was still incapacitated to effectively weed counterfeit products out of the country.
Besides the absence of a strong punitive law for the offenders, he said UNBS lacked enough manpower as well as storage capacity for confiscated goods.
Kahuma added that there was inadequate monitory support from the finance ministry. In his award acceptance speech, the managing director of Sino-Africa, Kong Dong Sheng, pledged to stick to the set production standards so as to export to the global market, which, he said, had become more competitive.
Incorporated in Uganda since 1998, Sino-Africa manufactures medicines like paracetamol tablets, diagnostic and theatre equipment and furniture.
New Vision
South Africa sold arms worth Rand 70 million to Libya
The National Conventional Arms Control Committee (NCACC) annual report for 2010 showed that South Africa sold weapons to Libya worth about R70-million last year, the Sunday Independent reported.
This included Category A weapons worth R1,9-million, Category B weapons worth R10,7-million and Category C weapons worth R56,2-million.
NCACC chairperson and Justice Minister Jeff Radebe said South Africa exported arms worth R80,9 million to Libya between 2003 and 2009. He refused to say whether more weapons went to Libya last year ahead of that country's civil unrest.
South African law prohibits the sale of weapons to countries where they may contribute to repression, human rights violations or were likely to escalate regional military conflicts, endanger peace or threaten regional stability. The NCACC was supposed to oversee weapons and military equipment transactions to ensure this did not happen.
Last year the government approved the sale of more than R35-billion worth of military hardware to 78 of the world's most repressive regimes, according to the report. In addition, it approved 345 weapons contracts with 83 countries worth R27,7-billion as well as 3 536 arms export permits worth R8,3-billion and allowed imports from 69 countries in deals worth R3,9-billion.
Officially sanctioned weapons exports included: Algeria (R158,3-million), Azerbaijan (R119,1-million), Burundi (R119,1-million), Equatorial Guinea (R5,8-million), Pakistan (R34,6-million), China (R60,5-million) and Saudi Arabia (R68,2-million).
Arms manufacturer Denel on April 1 denied it, or its subsidiaries, had sold armaments to Libya following a sales trip to the country a year ago.
"Not at all," the company's acting group communications manager, Pamela Malinda, told the South African Press Association (Sapa) when asked whether any such sales had taken place.
The Mail & Guardian published details on April 1 from a leaked Denel internal memo outlining a visit to Libya in April last year, which involved the "planned sale of G6-52 artillery systems, missiles, grenade launchers and anti-materiel rifles."
The business opportunities for Denel in Libya amounted to R6 289-million.
The report quotes Malinda saying Denel representatives had visited Libya "to explore the opportunities for the marketing of defence products."
Malinda confirmed to Sapa this was correct, but repeated that, with one exception, "no contracts and deals were concluded."
The exception was a contract struck with Denel subsidiary Mechem for "training on de-mining equipment."
Mechem specialises in the clearance of landmines. The company also builds mine-protected vehicles such as the Casspir.
Mail and Guardian
This included Category A weapons worth R1,9-million, Category B weapons worth R10,7-million and Category C weapons worth R56,2-million.
NCACC chairperson and Justice Minister Jeff Radebe said South Africa exported arms worth R80,9 million to Libya between 2003 and 2009. He refused to say whether more weapons went to Libya last year ahead of that country's civil unrest.
South African law prohibits the sale of weapons to countries where they may contribute to repression, human rights violations or were likely to escalate regional military conflicts, endanger peace or threaten regional stability. The NCACC was supposed to oversee weapons and military equipment transactions to ensure this did not happen.
Last year the government approved the sale of more than R35-billion worth of military hardware to 78 of the world's most repressive regimes, according to the report. In addition, it approved 345 weapons contracts with 83 countries worth R27,7-billion as well as 3 536 arms export permits worth R8,3-billion and allowed imports from 69 countries in deals worth R3,9-billion.
Officially sanctioned weapons exports included: Algeria (R158,3-million), Azerbaijan (R119,1-million), Burundi (R119,1-million), Equatorial Guinea (R5,8-million), Pakistan (R34,6-million), China (R60,5-million) and Saudi Arabia (R68,2-million).
Arms manufacturer Denel on April 1 denied it, or its subsidiaries, had sold armaments to Libya following a sales trip to the country a year ago.
"Not at all," the company's acting group communications manager, Pamela Malinda, told the South African Press Association (Sapa) when asked whether any such sales had taken place.
The Mail & Guardian published details on April 1 from a leaked Denel internal memo outlining a visit to Libya in April last year, which involved the "planned sale of G6-52 artillery systems, missiles, grenade launchers and anti-materiel rifles."
The business opportunities for Denel in Libya amounted to R6 289-million.
The report quotes Malinda saying Denel representatives had visited Libya "to explore the opportunities for the marketing of defence products."
Malinda confirmed to Sapa this was correct, but repeated that, with one exception, "no contracts and deals were concluded."
The exception was a contract struck with Denel subsidiary Mechem for "training on de-mining equipment."
Mechem specialises in the clearance of landmines. The company also builds mine-protected vehicles such as the Casspir.
Mail and Guardian
EU approves new trade incentives for North Africa
Exporters in North Africa, the Middle East and the Balkans will be able to sell goods to the European Union at lower tariffs more easily in future, under an agreement endorsed by the 27-nation bloc on April 14.
The agreement on preferential "rules of origin", approved by EU ministers, allows exporting states to source raw materials from countries such as China, and still qualify for low duties when shipping finished goods to Europe.
"This will help their economies to grow faster, thus contributing to the stability of the whole region and easing migration pressures," the EU's rotating presidency, held by Hungary, said of the accord.
The agreement covers seven Balkan countries and nine North African and Middle Eastern states -- Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey -- plus the West Bank and Gaza.
It replaces a series of existing bilateral protocols on rules of origin with a single convention covering all the countries.
The EU's rules of origin require exporters to prove that a minimum level of added value was created in goods produced domestically from imported raw materials, in order to qualify for preferential EU import tariffs.
Under the new agreement, the added value of goods produced in more than one participating country can be added together when determining if a product meets the minimum threshold.
The combined value of the trade in goods between the EU and the Middle East and North Africa was 140 billion euros ($202 billion) in 2010.
Algeria, Egypt and Syria mainly export fuels and mining goods to Europe, while Tunisia and Morocco are the most diversified, with exports ranging from minerals and textiles to farm produce and machinery.
Reuters
The agreement on preferential "rules of origin", approved by EU ministers, allows exporting states to source raw materials from countries such as China, and still qualify for low duties when shipping finished goods to Europe.
"This will help their economies to grow faster, thus contributing to the stability of the whole region and easing migration pressures," the EU's rotating presidency, held by Hungary, said of the accord.
The agreement covers seven Balkan countries and nine North African and Middle Eastern states -- Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Turkey -- plus the West Bank and Gaza.
It replaces a series of existing bilateral protocols on rules of origin with a single convention covering all the countries.
The EU's rules of origin require exporters to prove that a minimum level of added value was created in goods produced domestically from imported raw materials, in order to qualify for preferential EU import tariffs.
Under the new agreement, the added value of goods produced in more than one participating country can be added together when determining if a product meets the minimum threshold.
The combined value of the trade in goods between the EU and the Middle East and North Africa was 140 billion euros ($202 billion) in 2010.
Algeria, Egypt and Syria mainly export fuels and mining goods to Europe, while Tunisia and Morocco are the most diversified, with exports ranging from minerals and textiles to farm produce and machinery.
Reuters
India plans stronger trade ties with Nigeria
by Ngozi Sams
The government of India has said it is looking into addressing the lopsided economic relationship between it and Nigeria.
Figures of trade released by the country show that bilateral relations between both countries for the year ended March 31, 2010 is $8.7 billion. Nigerian export to the Asia country is around $7.3 billion, while that of India to Nigeria is around $1.2 billion. The trade between the two countries is greatly in Nigeria’s favour, thus making it enjoy the trade surplus of $6 billion.
Vishnu Prakash, India’s joint secretary and spokesperson of the ministry of external affairs, said, “For India, energy security is a very important consideration and we import almost 80 per cent of our energy from the global market. In Africa, Nigeria and Sudan are two key countries from which we import significant amount of petroleum products.
“It is natural that when we are importing hydrocarbons from Nigeria that the trade will be in their favour. I can tell you categorically that we want more trade with Nigeria,” Mr. Prakash said.
He also that there are a number of areas that India and Nigeria can work together to have more trade.
“Pharmaceuticals are one of them because we are global leaders in production drugs which are high quality and of cheap price, and I know that Indian drugs are in high demand in Nigeria.
“Some other areas are in the service sector like the information and communication technologies, the automobile centres, equipment and machinery, and textiles. Increasingly, I find Nigeria is figuring prominently amongst other countries on the business ladder of the Indian companies in terms of investments and trade. I am quite sure of the opportunities that we have,” he added.
Already, there are about 30,000 Indians in Nigeria, less than .15 per cent of the total Nigeria population. On the continental scene, the external affairs spokesperson said India had $45 billion of trade with the African continent last year and there are similar number of investments, which are more than $45 billion.
$2.3 billion out of the 5.4 billion credit earmarked for Africa in a five-year period has been made available, according to Mr. Prakash. The credit is meant to address the challenges of infrastructure, capacity building, and human resources issues. The upcoming India-Africa Summit in Addis Ababa is part of this collaboration.
The Indian authorities said Africa now has a growing partnership with the country, though it started long back, but acquired considerable substance and momentum only recently.
“With the involvement of Indian business giants such as Tatas, Mahindras, Kirloskars, Ranbaxy, RITES, IRCON, NSIC, TCS, OVL and others, our bilateral ties have impoved a lot, making us the second largest trading partner with them. The India Africa Conclaves and the upcoming Summit in Addis Ababa in May are some of the additional feathers in the cap,” Mr. Prakash said.
Next
The government of India has said it is looking into addressing the lopsided economic relationship between it and Nigeria.
Figures of trade released by the country show that bilateral relations between both countries for the year ended March 31, 2010 is $8.7 billion. Nigerian export to the Asia country is around $7.3 billion, while that of India to Nigeria is around $1.2 billion. The trade between the two countries is greatly in Nigeria’s favour, thus making it enjoy the trade surplus of $6 billion.
Vishnu Prakash, India’s joint secretary and spokesperson of the ministry of external affairs, said, “For India, energy security is a very important consideration and we import almost 80 per cent of our energy from the global market. In Africa, Nigeria and Sudan are two key countries from which we import significant amount of petroleum products.
“It is natural that when we are importing hydrocarbons from Nigeria that the trade will be in their favour. I can tell you categorically that we want more trade with Nigeria,” Mr. Prakash said.
He also that there are a number of areas that India and Nigeria can work together to have more trade.
“Pharmaceuticals are one of them because we are global leaders in production drugs which are high quality and of cheap price, and I know that Indian drugs are in high demand in Nigeria.
“Some other areas are in the service sector like the information and communication technologies, the automobile centres, equipment and machinery, and textiles. Increasingly, I find Nigeria is figuring prominently amongst other countries on the business ladder of the Indian companies in terms of investments and trade. I am quite sure of the opportunities that we have,” he added.
Already, there are about 30,000 Indians in Nigeria, less than .15 per cent of the total Nigeria population. On the continental scene, the external affairs spokesperson said India had $45 billion of trade with the African continent last year and there are similar number of investments, which are more than $45 billion.
$2.3 billion out of the 5.4 billion credit earmarked for Africa in a five-year period has been made available, according to Mr. Prakash. The credit is meant to address the challenges of infrastructure, capacity building, and human resources issues. The upcoming India-Africa Summit in Addis Ababa is part of this collaboration.
The Indian authorities said Africa now has a growing partnership with the country, though it started long back, but acquired considerable substance and momentum only recently.
“With the involvement of Indian business giants such as Tatas, Mahindras, Kirloskars, Ranbaxy, RITES, IRCON, NSIC, TCS, OVL and others, our bilateral ties have impoved a lot, making us the second largest trading partner with them. The India Africa Conclaves and the upcoming Summit in Addis Ababa in May are some of the additional feathers in the cap,” Mr. Prakash said.
Next
Zambia 2010 exports over $7 billion
Zambia has recorded more than US $7 billion worth of exports for 2010 as compared to $4.312 billion for 2009 following expansion in investments and improvement in market access.
Commerce, Trade and Industry Minister Felix Mutati said Zambia registered a 29 per cent rise in exports of commodities from 2008 to 2010 and its major exports included copper, cobalt, electricity and tobacco.
Mr Mutati said most of ZambiaÃs main exports were headed for the United Kingdom (UK), Switzerland, Tanzania, Zimbabwe and South Africa.
In the year 2008, export figures stood at $5, 098,688,004 and later dropped to $4,312,054,540 in 2009 but went up to $7,200,267,057 in 2010 respectively.
"Our increase in the exports of the commodities to the UK, Switzerland, Tanzainia, Zimbabwe and South Africa is as a result of improved market access particularly in the rules of access such as the Free Trade Area," Mr Mutati said in response to a Press query.
The minister said the share of the non-traditional exports (NTEs) to the total exports had been growing from 19 per cent in 2006 to 23 per cent in 2009.
He said Zambia endeavors to diversify its exports products both to the region and international markets and focus on NTEs.
The Government's target was to increase NTE to 30 per cent of the total exports by 2015.
The top five destinations for Zambia's exports are Switzerland, China, South Africa, Democratic Republic of Congo (DRC) and United Arabs Emirates.
Mr Mutati said the Government had put in place measures to transform the industrial sector by expanding the industrial base and increase value addition.
Value addition would be through the development of the Multi-Facility Economic Zones (MFEZ) and Industrial Parks.
Mr Mutati said the measure put in place would help expand the export base especially with the development of the MFEZ.
" We will continue to promote the development of the MFEZ in Zambia aimed at increasing local and foreign direct investment, employment creation, skills development and transfer to local entrepreneurs and communities as well as contribute to the diversification of the economy," he said.
Times of Zambia
Commerce, Trade and Industry Minister Felix Mutati said Zambia registered a 29 per cent rise in exports of commodities from 2008 to 2010 and its major exports included copper, cobalt, electricity and tobacco.
Mr Mutati said most of ZambiaÃs main exports were headed for the United Kingdom (UK), Switzerland, Tanzania, Zimbabwe and South Africa.
In the year 2008, export figures stood at $5, 098,688,004 and later dropped to $4,312,054,540 in 2009 but went up to $7,200,267,057 in 2010 respectively.
"Our increase in the exports of the commodities to the UK, Switzerland, Tanzainia, Zimbabwe and South Africa is as a result of improved market access particularly in the rules of access such as the Free Trade Area," Mr Mutati said in response to a Press query.
The minister said the share of the non-traditional exports (NTEs) to the total exports had been growing from 19 per cent in 2006 to 23 per cent in 2009.
He said Zambia endeavors to diversify its exports products both to the region and international markets and focus on NTEs.
The Government's target was to increase NTE to 30 per cent of the total exports by 2015.
The top five destinations for Zambia's exports are Switzerland, China, South Africa, Democratic Republic of Congo (DRC) and United Arabs Emirates.
Mr Mutati said the Government had put in place measures to transform the industrial sector by expanding the industrial base and increase value addition.
Value addition would be through the development of the Multi-Facility Economic Zones (MFEZ) and Industrial Parks.
Mr Mutati said the measure put in place would help expand the export base especially with the development of the MFEZ.
" We will continue to promote the development of the MFEZ in Zambia aimed at increasing local and foreign direct investment, employment creation, skills development and transfer to local entrepreneurs and communities as well as contribute to the diversification of the economy," he said.
Times of Zambia
BRICS: Trade ties that cut out the West
by Alan Wheatley
Cheap Chinese exports have decimated Brazil’s shoe industry and South Africa’s textile sector. India has slapped anti-dumping duties on an array of Chinese goods. Russia is sparring with Beijing over the price of oil it sells to China.
If trade is the mortar holding together the BRICS — Brazil, Russia, India, China and the newcomer, South Africa — the omens would appear poor for the grouping, which held its annual summit meeting April 14 on the southern Chinese island of Hainan.
To its detractors, BRICS is an artificial construct — an example of life imitating not art but Goldman Sachs, which coined the acronym BRIC in 2001 for four fast-growing, politically diverse countries that it believed were reshaping the global economy.
A more optimistic view holds that the explosion in south-south trade, which leapt to 17 percent of the global total in 2009 from 7 percent in 1990, has a long way to run.
Moreover, some experts say the BRICS caucus has already shown its worth as a counterweight to the West in global talks on trade and climate change and, within the Group of 20 leading economies, on how to redistribute power in international financial institutions.
In each case, despite differing positions, the five have acted collectively to prevent advanced countries from driving wedges between them, said Sourabh Gupta of Samuels International Associates, an international trade and political risk assessment firm in Washington.
“There is a certain basic logic to their economic interaction,” Mr. Gupta said. “They have not allowed themselves to be co-opted by Western countries. Either they’re going to hang together or hang alone.”
This is not to deny that the Chinese export juggernaut is causing strains, exacerbated by Beijing’s determination to let the renminbi, otherwise known as the yuan, rise only slowly.
Countries like Brazil — but also the likes of Portugal — that are above China on the value chain are struggling to compete in intermediate, capital-intensive products.
“They have genuine reasons to be worried,” Mr. Gupta said. “If nothing else, at least the unfairness arising from the yuan’s undervaluation is an issue that needs to be tackled pronto.”
Indian manufacturers have also grumbled at being hollowed out by their Chinese rivals, but Mr. Gupta does not expect an unmanageable surge in protectionism.
“There is a good deal of anger about Chinese products, but there is also, deep down, an awareness in India that part of this is policy failings at their end,” he said.
India would stand a better chance of broadening the base of its exports to China, now dominated by commodities, if it eased labor laws that put manufacturers in a straitjacket.
More generally, southern economies are shooting themselves in the foot by levying much higher import duties on goods from other southern countries, 6.1 percent on average, than the 2.5 percent they face in the West, according to the Asian Development Bank.
Still, the bank, based in Manila, expects the south-south share of global trade to double in the next two decades.
With developing Asia accounting for about 75 percent of south-south commerce, and China alone taking up about 40 percent, the challenge for the BRICS is to divide the cake more evenly.
The trade share of Latin America and Africa is in fact rising fast, but that is because of China’s hunger for oil and raw materials, bought in exchange for low-cost consumer goods. Some China critics have branded this model of trade neocolonial.
One answer, the development bank says, would be to expand the production networks of “Factory Asia” to other regions in the South to churn out goods for price-sensitive local consumers.
“Not only will developing Asia’s foreign direct investment in these new networks enhance employment opportunities, raise workers’ incomes, increase domestic demand, and enhance growth prospects, it will also address in part global imbalances by recycling high savings in developing Asia into investment in the South,” the bank said in a recent report.
Simon Freemantle, who analyzes Africa’s political economy for Standard Bank in Johannesburg, said China was already repositioning itself as a “development partner” for Africa and learning the lessons from episodes of anti-Chinese sentiment.
Zambia recently dropped charges against two Chinese managers accused of attempted murder for firing at 11 coal miners during a protest over pay.
Despite such events, Africa is by and large receptive to booming Chinese trade and investment, Mr. Freemantle said.
The textile industry in South Africa and Botswana has taken a big blow, but across the continent, families can now afford new Chinese clothes instead of making do with Western hand-me-downs.
About four in five Nigerians and Kenyans in a recent BBC World Service poll welcomed China’s growing clout.
“All African countries view China’s increasing economic power positively,” the survey said. Standard Bank sees no let-up in the acceleration of commercial ties. By 2015, Sino-African trade could easily exceed $300 billion, compared with $93 billion in 2009 and about $125 billion in 2010, Mr. Freemantle said.
And, as the BRICS summit meeting scheduled for this week shows, where trade goes, politics will follow, especially as economic power moves east in the wake of the global financial crisis.
“African countries are increasingly aware of this global shift and placing China in a more central role in their foreign policy objectives,” Mr. Freemantle said.
New York Times
Cheap Chinese exports have decimated Brazil’s shoe industry and South Africa’s textile sector. India has slapped anti-dumping duties on an array of Chinese goods. Russia is sparring with Beijing over the price of oil it sells to China.
If trade is the mortar holding together the BRICS — Brazil, Russia, India, China and the newcomer, South Africa — the omens would appear poor for the grouping, which held its annual summit meeting April 14 on the southern Chinese island of Hainan.
To its detractors, BRICS is an artificial construct — an example of life imitating not art but Goldman Sachs, which coined the acronym BRIC in 2001 for four fast-growing, politically diverse countries that it believed were reshaping the global economy.
A more optimistic view holds that the explosion in south-south trade, which leapt to 17 percent of the global total in 2009 from 7 percent in 1990, has a long way to run.
Moreover, some experts say the BRICS caucus has already shown its worth as a counterweight to the West in global talks on trade and climate change and, within the Group of 20 leading economies, on how to redistribute power in international financial institutions.
In each case, despite differing positions, the five have acted collectively to prevent advanced countries from driving wedges between them, said Sourabh Gupta of Samuels International Associates, an international trade and political risk assessment firm in Washington.
“There is a certain basic logic to their economic interaction,” Mr. Gupta said. “They have not allowed themselves to be co-opted by Western countries. Either they’re going to hang together or hang alone.”
This is not to deny that the Chinese export juggernaut is causing strains, exacerbated by Beijing’s determination to let the renminbi, otherwise known as the yuan, rise only slowly.
Countries like Brazil — but also the likes of Portugal — that are above China on the value chain are struggling to compete in intermediate, capital-intensive products.
“They have genuine reasons to be worried,” Mr. Gupta said. “If nothing else, at least the unfairness arising from the yuan’s undervaluation is an issue that needs to be tackled pronto.”
Indian manufacturers have also grumbled at being hollowed out by their Chinese rivals, but Mr. Gupta does not expect an unmanageable surge in protectionism.
“There is a good deal of anger about Chinese products, but there is also, deep down, an awareness in India that part of this is policy failings at their end,” he said.
India would stand a better chance of broadening the base of its exports to China, now dominated by commodities, if it eased labor laws that put manufacturers in a straitjacket.
More generally, southern economies are shooting themselves in the foot by levying much higher import duties on goods from other southern countries, 6.1 percent on average, than the 2.5 percent they face in the West, according to the Asian Development Bank.
Still, the bank, based in Manila, expects the south-south share of global trade to double in the next two decades.
With developing Asia accounting for about 75 percent of south-south commerce, and China alone taking up about 40 percent, the challenge for the BRICS is to divide the cake more evenly.
The trade share of Latin America and Africa is in fact rising fast, but that is because of China’s hunger for oil and raw materials, bought in exchange for low-cost consumer goods. Some China critics have branded this model of trade neocolonial.
One answer, the development bank says, would be to expand the production networks of “Factory Asia” to other regions in the South to churn out goods for price-sensitive local consumers.
“Not only will developing Asia’s foreign direct investment in these new networks enhance employment opportunities, raise workers’ incomes, increase domestic demand, and enhance growth prospects, it will also address in part global imbalances by recycling high savings in developing Asia into investment in the South,” the bank said in a recent report.
Simon Freemantle, who analyzes Africa’s political economy for Standard Bank in Johannesburg, said China was already repositioning itself as a “development partner” for Africa and learning the lessons from episodes of anti-Chinese sentiment.
Zambia recently dropped charges against two Chinese managers accused of attempted murder for firing at 11 coal miners during a protest over pay.
Despite such events, Africa is by and large receptive to booming Chinese trade and investment, Mr. Freemantle said.
The textile industry in South Africa and Botswana has taken a big blow, but across the continent, families can now afford new Chinese clothes instead of making do with Western hand-me-downs.
About four in five Nigerians and Kenyans in a recent BBC World Service poll welcomed China’s growing clout.
“All African countries view China’s increasing economic power positively,” the survey said. Standard Bank sees no let-up in the acceleration of commercial ties. By 2015, Sino-African trade could easily exceed $300 billion, compared with $93 billion in 2009 and about $125 billion in 2010, Mr. Freemantle said.
And, as the BRICS summit meeting scheduled for this week shows, where trade goes, politics will follow, especially as economic power moves east in the wake of the global financial crisis.
“African countries are increasingly aware of this global shift and placing China in a more central role in their foreign policy objectives,” Mr. Freemantle said.
New York Times
Rwanda freezes Gadaffi assets
by Bosco Hitimana
The Rwandan government has frozen assets belonging to Laico Hotel, one of Libya's investments in Kigali, Rwanda.
The decision comes at a time when countries are required to implement the United Nations resolution 1973 that aims at cutting funding for the Libyan government, which the UN accuses of bombing innocent civilians in the country's ongoing civil unrest.
The Libyan government through its investment arm Libya African Investment Portfolio (LAIP) owns Laico Hotel.
The hotel will return to its former name Umubano Hotel and Soprotel, a private company will take over the hotel management.
Rwanda joins Uganda, which has also frozen assets of Libya's investments in the country.
Libya continues to face social unrest, which intends to change the leadership of President Muammar Gadaffi.
Business Week
The Rwandan government has frozen assets belonging to Laico Hotel, one of Libya's investments in Kigali, Rwanda.
The decision comes at a time when countries are required to implement the United Nations resolution 1973 that aims at cutting funding for the Libyan government, which the UN accuses of bombing innocent civilians in the country's ongoing civil unrest.
The Libyan government through its investment arm Libya African Investment Portfolio (LAIP) owns Laico Hotel.
The hotel will return to its former name Umubano Hotel and Soprotel, a private company will take over the hotel management.
Rwanda joins Uganda, which has also frozen assets of Libya's investments in the country.
Libya continues to face social unrest, which intends to change the leadership of President Muammar Gadaffi.
Business Week
Kenya will not seize Gadaffi companies
by Daniel Semberya
The Kenyan Government does not intend to take over businesses where the Libyan government and its leader Colonel Muammar Gaddafi have an interest in, following a United Nations resolution ordering a worldwide freeze on the Libyan leader's assets, Government spokesman Alfred Mutua said in late March.
A resolution passed by the United Nations' Security Council recently, effectively ordered a worldwide freeze on the Libyan leader's assets. As a result many interests have been affected by the worldwide freeze.
In Africa the Libyan leader and his Government have extensive interests in a lot of businesses stretching from Eastern Africa all the way to Southern Africa.
Analysts say the raging Libyan conflict threatens to have a significant economic impact across the continent.
Col. Gaddafi has in his 42 year-long rule used money from the oil rich nation to gain favour among African nations and thus the Libyan government has invested heavily in at least 25 African nations.
Such interests are held in trust by the Libya African Portfolio (LAP) - the investment arm of Col Gaddafi's government.
Investments by Libyan firms in Kenya and which are owned by Libya are in the hospitality and oil industry.
They include stakes in oil marketer OilLibya, and the prestigious Grand Regency Hotel in Nairobi.
Libya at one time expressed interest through a bid in the Kenya Petroleum Refineries Ltd but lost out to India's Essar.
Plans had been mooted to upgrade the current Libyan mission to a full embassy as interests by the Arab nation in Kenya expanded.
The Ugandan and South African Governments have already gone ahead to take over the assets of the embattled Libyan strongman's Government.
It was expected that other African countries will take cue from South Africa and Uganda and freeze assets owned by Col Gaddafi.
Kenya has however maintained in the past a lukewarm approach to the Libyan conflict.
And last week government Spokesman in a phone interview said the Government did not contemplate taking over assets of the embattled Libyan leader.
"No, there is no such discussion, (to take over or freeze Libyan assets)," he said. "It has not been discussed," he told East African Business Week on phone.
Kenya was among other UN 191 member states who voted to suspend Libya from the UN human rights body.
Business Week
The Kenyan Government does not intend to take over businesses where the Libyan government and its leader Colonel Muammar Gaddafi have an interest in, following a United Nations resolution ordering a worldwide freeze on the Libyan leader's assets, Government spokesman Alfred Mutua said in late March.
A resolution passed by the United Nations' Security Council recently, effectively ordered a worldwide freeze on the Libyan leader's assets. As a result many interests have been affected by the worldwide freeze.
In Africa the Libyan leader and his Government have extensive interests in a lot of businesses stretching from Eastern Africa all the way to Southern Africa.
Analysts say the raging Libyan conflict threatens to have a significant economic impact across the continent.
Col. Gaddafi has in his 42 year-long rule used money from the oil rich nation to gain favour among African nations and thus the Libyan government has invested heavily in at least 25 African nations.
Such interests are held in trust by the Libya African Portfolio (LAP) - the investment arm of Col Gaddafi's government.
Investments by Libyan firms in Kenya and which are owned by Libya are in the hospitality and oil industry.
They include stakes in oil marketer OilLibya, and the prestigious Grand Regency Hotel in Nairobi.
Libya at one time expressed interest through a bid in the Kenya Petroleum Refineries Ltd but lost out to India's Essar.
Plans had been mooted to upgrade the current Libyan mission to a full embassy as interests by the Arab nation in Kenya expanded.
The Ugandan and South African Governments have already gone ahead to take over the assets of the embattled Libyan strongman's Government.
It was expected that other African countries will take cue from South Africa and Uganda and freeze assets owned by Col Gaddafi.
Kenya has however maintained in the past a lukewarm approach to the Libyan conflict.
And last week government Spokesman in a phone interview said the Government did not contemplate taking over assets of the embattled Libyan leader.
"No, there is no such discussion, (to take over or freeze Libyan assets)," he said. "It has not been discussed," he told East African Business Week on phone.
Kenya was among other UN 191 member states who voted to suspend Libya from the UN human rights body.
Business Week
International bank to open 12 more branches in Angola
by Olivia Kumwenda and Ruona Agbroko
Standard Bank, Africa's biggest bank by assets, plans to open 12 new branches in Angola this year.
Standard acquired regulatory approval to start business in the southern African nation last year and has been concentrating on corporate banking there.
"So far we have opened one branch and this year the plan is to expand that to 12 more and we will be able to offer a full banking service," Vincent Magwenya, director of communications at Standard Bank's Africa unit said at a media briefing on Friday.
Angola, Africa's second-largest oil producer, has increasingly been seen as an important target for South African banks and corporates, as surging oil prices have underpinned rapid growth.
Rival Absa Group was also considering moving back into Angola after leaving a few years ago.
Jacques Taylor, Standard Bank Africa head of agriculture, said the bank's focus in Angola would be on mining and agriculture.
"We expect agriculture this year to contribute close to 40 percent of our asset growth in Africa," Taylor said.
Standard has said it will provide $100 million to farmers in four African countries in a three-year period to help boost production and economic growth.
Reuters
Standard Bank, Africa's biggest bank by assets, plans to open 12 new branches in Angola this year.
Standard acquired regulatory approval to start business in the southern African nation last year and has been concentrating on corporate banking there.
"So far we have opened one branch and this year the plan is to expand that to 12 more and we will be able to offer a full banking service," Vincent Magwenya, director of communications at Standard Bank's Africa unit said at a media briefing on Friday.
Angola, Africa's second-largest oil producer, has increasingly been seen as an important target for South African banks and corporates, as surging oil prices have underpinned rapid growth.
Rival Absa Group was also considering moving back into Angola after leaving a few years ago.
Jacques Taylor, Standard Bank Africa head of agriculture, said the bank's focus in Angola would be on mining and agriculture.
"We expect agriculture this year to contribute close to 40 percent of our asset growth in Africa," Taylor said.
Standard has said it will provide $100 million to farmers in four African countries in a three-year period to help boost production and economic growth.
Reuters
US-Morocco trade doubles
A delegation of US corporate leaders recently traveled to Morocco to explore the rapidly growing business and investment opportunities it has to offer across a variety of sectors.
Representatives from nearly 20 US companies, including Lockheed Martin, Cisco Systems, FedEx, Raytheon, Motorola Solutions, and General Dynamics IT, met with private sector leaders and top Moroccan government officials at a time of tremendous bilateral growth between the US and Morocco, a key hub for accessing markets in Europe, Africa, and the Middle East.
In return, Ahmed Chami, Morocco's Minister of Industry, Commerce & New Technologies, was to visit Chicago, Columbus, Seattle, Detroit, New York City, and Boston from April 10-19, to meet with business leaders to discuss specific opportunities for increased sales and investments with Morocco.
At the conclusion of the delegation's visit to Morocco, LaMar Willis, General Dynamics IT VP of Strategic Program Development commented, "I think that the Moroccan government here is very progressive. Logistics-wise, Morocco is very strategically located—with good sea ports, airport infrastructure, and road investment. I think Morocco presents good opportunities and I would encourage US businesses to consider it. There is a very clear indication from the Moroccan government that they want US businesses and are willing to work with us."
In 2006, Morocco and the US entered into a Free Trade Agreement and bilateral trade between the two countries has since doubled, reaching $2.6 billion in 2010. More and more US companies are taking advantage of the growing economic opportunities thanks to the FTA with Morocco—the only African country that has an FTA with the US.
Earlier this month, Bridgestone Corporation, the world's largest tire and rubber company, opened a new tire sales facility in Casablanca, Morocco. Bridgestone, which "aims to further strengthen its business in Morocco's highly promising market," called Morocco "a key region in which rapid economic expansion can be anticipated."
NEC Unified Solutions, international specialists in communication solutions for small, medium, and large enterprises in both the private and public sectors, has partnered with a Moroccan company, Encom, to distribute communication servers and applications for the growing SMB and Enterprise market segments.
"We are seeing a growing demand for our solutions across the North Africa region and needed a partner that understands the market and our evolving technology," said Frits Neyndorff, Vice President for the Middle-East & Africa operations of NEC Unified Solutions, in last week's announcement.
"Morocco has witnessed in the last decade, substantial political, economic, social and legal reforms and has made considerable progress in enhancing the investment climate to attract foreign direct investment," said Rabia El Alama, Executive Director of The Moroccan-American Chamber of Commerce in Casablanca. "Morocco offers almost infinite opportunities for US businesses interested in using this country as a platform for production and export to other regional markets. Morocco is becoming a regional hub for key industries such as aeronautics, automobile, IT and off-shoring, as well as a distribution hub for North and Sub Saharan Africa, Europe, and the Middle East."
PR Newswire
Representatives from nearly 20 US companies, including Lockheed Martin, Cisco Systems, FedEx, Raytheon, Motorola Solutions, and General Dynamics IT, met with private sector leaders and top Moroccan government officials at a time of tremendous bilateral growth between the US and Morocco, a key hub for accessing markets in Europe, Africa, and the Middle East.
In return, Ahmed Chami, Morocco's Minister of Industry, Commerce & New Technologies, was to visit Chicago, Columbus, Seattle, Detroit, New York City, and Boston from April 10-19, to meet with business leaders to discuss specific opportunities for increased sales and investments with Morocco.
At the conclusion of the delegation's visit to Morocco, LaMar Willis, General Dynamics IT VP of Strategic Program Development commented, "I think that the Moroccan government here is very progressive. Logistics-wise, Morocco is very strategically located—with good sea ports, airport infrastructure, and road investment. I think Morocco presents good opportunities and I would encourage US businesses to consider it. There is a very clear indication from the Moroccan government that they want US businesses and are willing to work with us."
In 2006, Morocco and the US entered into a Free Trade Agreement and bilateral trade between the two countries has since doubled, reaching $2.6 billion in 2010. More and more US companies are taking advantage of the growing economic opportunities thanks to the FTA with Morocco—the only African country that has an FTA with the US.
Earlier this month, Bridgestone Corporation, the world's largest tire and rubber company, opened a new tire sales facility in Casablanca, Morocco. Bridgestone, which "aims to further strengthen its business in Morocco's highly promising market," called Morocco "a key region in which rapid economic expansion can be anticipated."
NEC Unified Solutions, international specialists in communication solutions for small, medium, and large enterprises in both the private and public sectors, has partnered with a Moroccan company, Encom, to distribute communication servers and applications for the growing SMB and Enterprise market segments.
"We are seeing a growing demand for our solutions across the North Africa region and needed a partner that understands the market and our evolving technology," said Frits Neyndorff, Vice President for the Middle-East & Africa operations of NEC Unified Solutions, in last week's announcement.
"Morocco has witnessed in the last decade, substantial political, economic, social and legal reforms and has made considerable progress in enhancing the investment climate to attract foreign direct investment," said Rabia El Alama, Executive Director of The Moroccan-American Chamber of Commerce in Casablanca. "Morocco offers almost infinite opportunities for US businesses interested in using this country as a platform for production and export to other regional markets. Morocco is becoming a regional hub for key industries such as aeronautics, automobile, IT and off-shoring, as well as a distribution hub for North and Sub Saharan Africa, Europe, and the Middle East."
PR Newswire
Zimbabwe trade deficit grew in 2010
by Bright Madera
Zimbabwe's trade deficit widened last year as imports outstripped exports by US$2,4 billion, figures from Zimstats show.
During the period under review, imports amounted to US$5,7 billion against exports of US$3,2 billion.
Major sources of imports to Zimbabwe were South Africa, United States of America, China, Mozambique and the United Kingdom.
The country imported goods and services worth US$2,7 billion from South Africa against exports of US$1,7 billion.
South Africa has remained the country's largest trading partner, followed by the US, after Zimbabwe imported goods valued at US$744,7 million compared with goods valued at US$29,1 million exported to America.
Trade between Zimbabwe and the United Arab Emirates was tilted in favour of Zimbabwe after it exported goods and services worth US$329,1 million compared with US$147,8 million in imports.
Zimbabwe's trade with Belgium, Kenya, Indonesia, Norway, Bulgaria, Ethiopia and Cameroon was in favour of Zimbabwe.
Stamp-impressed paper, banknotes and bond certificates were among the major exports during the period, earning US$559,1 million followed by nickel mattes, generating US$440,7 million for the country.
Zimbabwe also exported flue-cured tobacco worth US$407,8 million and semi-manufactured gold accounted for US$287,1 million in exports.
The biggest chunk of money was spent on diesel, motor vehicles, petroleum oils and base stations.
Statistics indicate that during the period under review, diesel valued at US$526,5 million was imported into Zimbabwe.
Motor vehicles worth US$614,5 million found their way into the country and base stations worth US$157,1 million were imported.
Cellular phones, cooking oil, fertilisers and flour are some of the goods topping the list of imports.
The trade imbalance results from the poor performance of local industry. Average capacity utilisation is around 40 percent.
Zimbabwean productive sectors have largely failed to boost capacity utilisation as a result of the prevailing liquidity constraints.
Economists say export market competitiveness by local industries has declined dramatically as a result of high production costs accelerated by capital constraints and high utility charges. Production costs remain high as companies are using obsolete equipment.
Zimbabwe is emerging from a decade-long economic slump in which the economy contracted by more than 50 percent from a 1996-1998 peak of US$9 billion to about US$2,5 billion in 2008.
The economy is expected to grow 9,3 percent this year, its third successive since the formation of the inclusive Government.
The economy registered a GDP growth rate of 6,3 percent in 2009 and 8,1 percent last year.
The Herald
Zimbabwe's trade deficit widened last year as imports outstripped exports by US$2,4 billion, figures from Zimstats show.
During the period under review, imports amounted to US$5,7 billion against exports of US$3,2 billion.
Major sources of imports to Zimbabwe were South Africa, United States of America, China, Mozambique and the United Kingdom.
The country imported goods and services worth US$2,7 billion from South Africa against exports of US$1,7 billion.
South Africa has remained the country's largest trading partner, followed by the US, after Zimbabwe imported goods valued at US$744,7 million compared with goods valued at US$29,1 million exported to America.
Trade between Zimbabwe and the United Arab Emirates was tilted in favour of Zimbabwe after it exported goods and services worth US$329,1 million compared with US$147,8 million in imports.
Zimbabwe's trade with Belgium, Kenya, Indonesia, Norway, Bulgaria, Ethiopia and Cameroon was in favour of Zimbabwe.
Stamp-impressed paper, banknotes and bond certificates were among the major exports during the period, earning US$559,1 million followed by nickel mattes, generating US$440,7 million for the country.
Zimbabwe also exported flue-cured tobacco worth US$407,8 million and semi-manufactured gold accounted for US$287,1 million in exports.
The biggest chunk of money was spent on diesel, motor vehicles, petroleum oils and base stations.
Statistics indicate that during the period under review, diesel valued at US$526,5 million was imported into Zimbabwe.
Motor vehicles worth US$614,5 million found their way into the country and base stations worth US$157,1 million were imported.
Cellular phones, cooking oil, fertilisers and flour are some of the goods topping the list of imports.
The trade imbalance results from the poor performance of local industry. Average capacity utilisation is around 40 percent.
Zimbabwean productive sectors have largely failed to boost capacity utilisation as a result of the prevailing liquidity constraints.
Economists say export market competitiveness by local industries has declined dramatically as a result of high production costs accelerated by capital constraints and high utility charges. Production costs remain high as companies are using obsolete equipment.
Zimbabwe is emerging from a decade-long economic slump in which the economy contracted by more than 50 percent from a 1996-1998 peak of US$9 billion to about US$2,5 billion in 2008.
The economy is expected to grow 9,3 percent this year, its third successive since the formation of the inclusive Government.
The economy registered a GDP growth rate of 6,3 percent in 2009 and 8,1 percent last year.
The Herald
Giving aid to Africa further impoverishes continent
by Bruce Poinsette
Imagine if the financial crisis got so bad American people could no longer afford mom-and-pop restaurants. What if the government responded by subsidizing McDonald's to pass out free hamburgers throughout the country? How long do you think it would take the economy, much less out-of-business restaurant owners, to get back on its feet?
Obviously the U.S. government wouldn't do this at home, so why do we proudly do it throughout Africa?
Nearly $1 trillion has been spent on aid to Africa since the 1950s.
However, poverty is still rampant throughout the continent with 35.6 percent of the population projected to be living on $1 a day in 2015, according to the World Bank. When aid to Africa was at its peak, from 1970 to 1998, poverty in the continent rose from 11 percent to 66 percent.
One problem is that aid is usually transferred on a government-to-government basis, a process that lends itself to corruption. More importantly, aid is given for things like food instead of infrastructure, which creates a cycle of dependence and undercuts local economies.
Rich countries like the U.S. want to save the world, but they don't listen to the people they're supposed to be helping or take their needs into account.
The very nature of treating another group of people like children creates a fundamental problem before aid is even disbursed.
Africa is treated like a homogenous continent, when that couldn't be further from the truth. Sending money to an entity with no context of its specific condition is generally a bad investment, so why would we do that with entire countries?
Much of modern aid is based on the Marshall Plan, where the U.S. provided aid to European countries following World War II. This successfully helped bring European countries back into the world economy, but it came under vastly different conditions than African countries receiving aid today. The necessary institutions were already in place. Infrastructure just needed to be rebuilt so these institutions could run again.
Many African countries became independent from colonial rule following independence movements of the 1960s. Thus, they didn't have stable institutions in place.
Consequently, rich countries have sent aid money on a government-to-government basis, where it often lands in the hands of corrupt politicians. For example, Mobutu Sese Seko, former president of Zaire (now called the Democratic Republic of Congo), is estimated to have diverted $5 billion into foreign bank accounts, according to Dambisa Moyo's book "Dead Aid."
When aid money does reach the people, it is often counterproductive to development.
There is a common misconception that poor countries, specifically poor African countries, are starving because they need food.
In actuality, countries throughout Africa have agriculture sectors big enough to feed the population. The problem is, many people can't afford the food they provide. Furthermore, the farmers can't compete with global food prices.
According to "Dead Aid," a European cow receives $2.50 a day in subsidies from the European Union. An African cow can't compete because the governments don't have nearly as much money to subsidize their livestock.
When starving people have a choice between free food aid and agriculture they can't afford, they're going to choose the food aid. Thus, the agricultural sector is permanently hamstrung, and the farmers, as well as their potential customers, remain poor.
Some may argue food aid constitutes a significant portion of business for U.S. farmers, which is true, but at what cost? We're aiding our farmers to keep the African continent perpetually dependent.
If we were so serious about feeding the people of Africa, wouldn't it make more sense to subsidize their farmers to make food affordable?
Still, it would make more sense to invest in infrastructure — such as road building and education — because it provides more jobs for people so they can afford the food and keep farmers in business.
Recently, China has embarked on this path. However, China has not simply given aid money, but invested in infrastructure in return for natural resources.
True independence requires financial empowerment, which can only be achieved through trade and development of the business sector.
With gas prices continually rising in the U.S. (not for lack of oil, but due to speculation), wouldn't it make sense to look into trade with an oil-rich country like Angola?
Another aspect of facilitating trade would be easing import restrictions in the U.S. According to "Dead Aid," the U.S. only allows three percent of clothing imports from Africa.
We could easily have more demand for comfortable African formal attire if we didn't keep the supply stagnant.
What does it say when we pay our farmers to dump off extra crops in aid countries, but we set a limit on capitalism when it comes back the other way?
We could do more for sub-Saharan African countries, which are notorious for not trading with each other, by facilitating trade between them.
Financial empowerment can only come from a business sector, not dependent on aid.
Remember — China was behind Malawi, Burundi and Burkina Faso in per-capita income 30 years ago.
Things can change, but it won't be through aid — which is just oppression with a smile.
The Daily Emerald
Imagine if the financial crisis got so bad American people could no longer afford mom-and-pop restaurants. What if the government responded by subsidizing McDonald's to pass out free hamburgers throughout the country? How long do you think it would take the economy, much less out-of-business restaurant owners, to get back on its feet?
Obviously the U.S. government wouldn't do this at home, so why do we proudly do it throughout Africa?
Nearly $1 trillion has been spent on aid to Africa since the 1950s.
However, poverty is still rampant throughout the continent with 35.6 percent of the population projected to be living on $1 a day in 2015, according to the World Bank. When aid to Africa was at its peak, from 1970 to 1998, poverty in the continent rose from 11 percent to 66 percent.
One problem is that aid is usually transferred on a government-to-government basis, a process that lends itself to corruption. More importantly, aid is given for things like food instead of infrastructure, which creates a cycle of dependence and undercuts local economies.
Rich countries like the U.S. want to save the world, but they don't listen to the people they're supposed to be helping or take their needs into account.
The very nature of treating another group of people like children creates a fundamental problem before aid is even disbursed.
Africa is treated like a homogenous continent, when that couldn't be further from the truth. Sending money to an entity with no context of its specific condition is generally a bad investment, so why would we do that with entire countries?
Much of modern aid is based on the Marshall Plan, where the U.S. provided aid to European countries following World War II. This successfully helped bring European countries back into the world economy, but it came under vastly different conditions than African countries receiving aid today. The necessary institutions were already in place. Infrastructure just needed to be rebuilt so these institutions could run again.
Many African countries became independent from colonial rule following independence movements of the 1960s. Thus, they didn't have stable institutions in place.
Consequently, rich countries have sent aid money on a government-to-government basis, where it often lands in the hands of corrupt politicians. For example, Mobutu Sese Seko, former president of Zaire (now called the Democratic Republic of Congo), is estimated to have diverted $5 billion into foreign bank accounts, according to Dambisa Moyo's book "Dead Aid."
When aid money does reach the people, it is often counterproductive to development.
There is a common misconception that poor countries, specifically poor African countries, are starving because they need food.
In actuality, countries throughout Africa have agriculture sectors big enough to feed the population. The problem is, many people can't afford the food they provide. Furthermore, the farmers can't compete with global food prices.
According to "Dead Aid," a European cow receives $2.50 a day in subsidies from the European Union. An African cow can't compete because the governments don't have nearly as much money to subsidize their livestock.
When starving people have a choice between free food aid and agriculture they can't afford, they're going to choose the food aid. Thus, the agricultural sector is permanently hamstrung, and the farmers, as well as their potential customers, remain poor.
Some may argue food aid constitutes a significant portion of business for U.S. farmers, which is true, but at what cost? We're aiding our farmers to keep the African continent perpetually dependent.
If we were so serious about feeding the people of Africa, wouldn't it make more sense to subsidize their farmers to make food affordable?
Still, it would make more sense to invest in infrastructure — such as road building and education — because it provides more jobs for people so they can afford the food and keep farmers in business.
Recently, China has embarked on this path. However, China has not simply given aid money, but invested in infrastructure in return for natural resources.
True independence requires financial empowerment, which can only be achieved through trade and development of the business sector.
With gas prices continually rising in the U.S. (not for lack of oil, but due to speculation), wouldn't it make sense to look into trade with an oil-rich country like Angola?
Another aspect of facilitating trade would be easing import restrictions in the U.S. According to "Dead Aid," the U.S. only allows three percent of clothing imports from Africa.
We could easily have more demand for comfortable African formal attire if we didn't keep the supply stagnant.
What does it say when we pay our farmers to dump off extra crops in aid countries, but we set a limit on capitalism when it comes back the other way?
We could do more for sub-Saharan African countries, which are notorious for not trading with each other, by facilitating trade between them.
Financial empowerment can only come from a business sector, not dependent on aid.
Remember — China was behind Malawi, Burundi and Burkina Faso in per-capita income 30 years ago.
Things can change, but it won't be through aid — which is just oppression with a smile.
The Daily Emerald
China, Zimbabwe ties grow stronger
by Nkepile Mabuse
Shunned by Western investors, economically ravaged Zimbabwe has turned its sights to the East to improve its finances.
International isolation and a bad credit record have forced Zimbabwean president Robert Mugabe to seek economic support from China, the world's second-largest economy.
Since 2002, the European Union and the United States have imposed sanctions on the mineral-rich southern African country amid reports of human rights abuses, political violence and the controversial land reform policy targeting white farmers.
China has moved to occupy some of the void created by the exodus of Western businesses and now Zimbabwe's once-empty stores are filled with Chinese products.
"We are happy to have these people coming to Zimbabwe opening factories and shops, because when you compare to last time, there were more unemployed youths," says Never Jacob, a Zimbabwean store manager.
"For me, I can say (of) the coming of Chinese to Zimbabwe, we appreciate their coming," he adds.
China has been doing business with Zimbabwe for years -- Chinese foreign minister Yang Jiechi has said in the past that the two economies "are cut out for each other."
China has also called for the lifting of sanctions against Zimbabwe, saying that no country has a right to interfere in the internal affairs of another state. And last month, it announced a $700 million-loan aimed at, among other things, rejuvenating Zimbabwe's agricultural sector.
But local economists say, overall, Chinese investments in Zimbabwe are difficult to quantify.
"Some of the projects are not easily accessible to the public and we are not given many details about how much work is done or what production has taken place," says economist John Robertson.
Attempts to get figures from the Zimbabwean government about its economic partnership with China were unsuccessful. But according to figures obtained from the Chinese embassy, the trade between the two countries totaled $560 million dollars last year -- just under half a percent of total China-Africa trade in 2010.
Chinese imports made up nearly 60% of that business, with Zimbabwe importing mainly mobile communication hardware. Its number-one export to China was, apparently, tobacco.
The Zimbabwean Minister of Investment Promotion says the Chinese are mainly interested in mineral resources, including diamonds.
Last year, Zimbabwe's efforts to improve its fragile economy seemed to be given a boost when the country was allowed to sell diamonds from its controversial Marange fields.
There are currently five companies -- two of which are Chinese -- with licenses to operate in the diamond fields near the Mozambique border.
These mines are under export controls following allegations of human rights abuses by Mugabe's Zanu-PF party. China is said to be complying with those international controls.
Zimbabwe's finance minister Tendai Biti, whose party, the Movement for Democratic Change, formed a unity government with Mugabe's party two years ago, says that diamonds have not yet provided the financial boost that many would have expected, contributing only $35 million to the country's coffers last year.
Mugabe's Zanu-PF party denies accusations of looting and abuses, while Biti blames smugglers for robbing the country of much-needed revenue.
"These diamonds are alluvial, so you can literally mine them with a spoon or the sole of your heel," says Biti. "They are located in a place that is 66,000 hectares, so that's half the size of the United Kingdom, so what it means is that there is porousness -- anyone can virtually walk in there and pick stones," he adds.
China has been silent on the issue, choosing rather stick to its policy of non-interference in the internal matters of other countries.
CNN
Shunned by Western investors, economically ravaged Zimbabwe has turned its sights to the East to improve its finances.
International isolation and a bad credit record have forced Zimbabwean president Robert Mugabe to seek economic support from China, the world's second-largest economy.
Since 2002, the European Union and the United States have imposed sanctions on the mineral-rich southern African country amid reports of human rights abuses, political violence and the controversial land reform policy targeting white farmers.
China has moved to occupy some of the void created by the exodus of Western businesses and now Zimbabwe's once-empty stores are filled with Chinese products.
"We are happy to have these people coming to Zimbabwe opening factories and shops, because when you compare to last time, there were more unemployed youths," says Never Jacob, a Zimbabwean store manager.
"For me, I can say (of) the coming of Chinese to Zimbabwe, we appreciate their coming," he adds.
China has been doing business with Zimbabwe for years -- Chinese foreign minister Yang Jiechi has said in the past that the two economies "are cut out for each other."
China has also called for the lifting of sanctions against Zimbabwe, saying that no country has a right to interfere in the internal affairs of another state. And last month, it announced a $700 million-loan aimed at, among other things, rejuvenating Zimbabwe's agricultural sector.
But local economists say, overall, Chinese investments in Zimbabwe are difficult to quantify.
"Some of the projects are not easily accessible to the public and we are not given many details about how much work is done or what production has taken place," says economist John Robertson.
Attempts to get figures from the Zimbabwean government about its economic partnership with China were unsuccessful. But according to figures obtained from the Chinese embassy, the trade between the two countries totaled $560 million dollars last year -- just under half a percent of total China-Africa trade in 2010.
Chinese imports made up nearly 60% of that business, with Zimbabwe importing mainly mobile communication hardware. Its number-one export to China was, apparently, tobacco.
The Zimbabwean Minister of Investment Promotion says the Chinese are mainly interested in mineral resources, including diamonds.
Last year, Zimbabwe's efforts to improve its fragile economy seemed to be given a boost when the country was allowed to sell diamonds from its controversial Marange fields.
There are currently five companies -- two of which are Chinese -- with licenses to operate in the diamond fields near the Mozambique border.
These mines are under export controls following allegations of human rights abuses by Mugabe's Zanu-PF party. China is said to be complying with those international controls.
Zimbabwe's finance minister Tendai Biti, whose party, the Movement for Democratic Change, formed a unity government with Mugabe's party two years ago, says that diamonds have not yet provided the financial boost that many would have expected, contributing only $35 million to the country's coffers last year.
Mugabe's Zanu-PF party denies accusations of looting and abuses, while Biti blames smugglers for robbing the country of much-needed revenue.
"These diamonds are alluvial, so you can literally mine them with a spoon or the sole of your heel," says Biti. "They are located in a place that is 66,000 hectares, so that's half the size of the United Kingdom, so what it means is that there is porousness -- anyone can virtually walk in there and pick stones," he adds.
China has been silent on the issue, choosing rather stick to its policy of non-interference in the internal matters of other countries.
CNN
Gambia freezes Gadhafi-held Liyan assets
The government of tiny Gambia says it wants the Libyan ambassador loyal to Moammar Gadhafi to leave and is declaring its support for the Benghazi-based rebel council.
A government statement gave the Libyan ambassador and embassy staff 72 hours to leave Gambia. The government also says it's freezing or closing all assets held in Gambia by Gadhafi's government.
Those include two five-star hotels and an amusement park, and represent a large investment in the West African nation that is surrounded by Senegal.
Gambia says its decision was prompted by "the heinous atrocities that are being carried out by the Gadhafi regime against innocent citizens."
Libya's embassy in Banjul declined comment.
Jollof News
A government statement gave the Libyan ambassador and embassy staff 72 hours to leave Gambia. The government also says it's freezing or closing all assets held in Gambia by Gadhafi's government.
Those include two five-star hotels and an amusement park, and represent a large investment in the West African nation that is surrounded by Senegal.
Gambia says its decision was prompted by "the heinous atrocities that are being carried out by the Gadhafi regime against innocent citizens."
Libya's embassy in Banjul declined comment.
Jollof News
Booming trade ups shipping from India to Africa
In a reflection of booming trade, freight from India to Africa has been increasing by 15-20 percent annually for the past three years, says a top official of Bollore Africa Logistics, a leading logistics company operating in the 53-nation continent.
"There was a growth of more than 15 percent in cargo movement last year," said S.K. Sharma, who is the sales head of Bollore Africa Logistics' India division.
"Vessel frequency has increased and every major shipping line is putting its own vessels on the African route," he said, adding that major Indian investors were going to Africa.
A reason for the steady increase in freight is that Indian cargo is being carried to more ports on the western coast of Africa. The main ports for export from India in west Africa are Nigeria, Ghana, Togo, Ivory Coast, Angola, Senegal, Sierra Leone, Cameroon, Congo and Guinea-Conakry.
This is a huge market that has opened up for India in recent years. These ports are in addition to the traditional export markets for India in Tanzania, Kenya, Mozambique and South Africa.
The shipping industry expects the worldwide volume of trade on the African routes to grow faster than those to mature markets, though it may be a slower growth than shipping volumes on routes to the bigger emerging markets like China, Brazil and India.
The frequency of ships sailing from India to Africa has gone up, especially since about 60 percent of the freight is carried by sea. India's major investments in Africa have taken place in the oil and gas, telecommunications, transport and information technology (IT) sectors.
Exim Bank's chairman and managing director T.C.A. Ranganathan said at the Exim Bank-CII India-Africa Business Conclave last month that India-Africa trade had gone up seven-fold in the last seven years.
He noted that six of the world's fastest growing countries were in Africa. India and Africa's economic engagement has been increasing through the years and the trade went up to $45 billion last year.
India-Africa trade may touch $70 billion by 2015. Air cargo and ocean freight volumes were expected to grow at over nine percent annually till then, he said. Bollore Logistics' India operations handle 50,000 containers per month of both 20 feet and 40 feet size, together with 100,000 tonnes of break bulk (non-containerised freight) and 20,000 tonnes of air shipments per month.
A major part of cargo dispatched from India is heavy equipment such as power plant equipment, electrical transmission products, builder hardware, telecom material and steel bars.
Deccan Herald
"There was a growth of more than 15 percent in cargo movement last year," said S.K. Sharma, who is the sales head of Bollore Africa Logistics' India division.
"Vessel frequency has increased and every major shipping line is putting its own vessels on the African route," he said, adding that major Indian investors were going to Africa.
A reason for the steady increase in freight is that Indian cargo is being carried to more ports on the western coast of Africa. The main ports for export from India in west Africa are Nigeria, Ghana, Togo, Ivory Coast, Angola, Senegal, Sierra Leone, Cameroon, Congo and Guinea-Conakry.
This is a huge market that has opened up for India in recent years. These ports are in addition to the traditional export markets for India in Tanzania, Kenya, Mozambique and South Africa.
The shipping industry expects the worldwide volume of trade on the African routes to grow faster than those to mature markets, though it may be a slower growth than shipping volumes on routes to the bigger emerging markets like China, Brazil and India.
The frequency of ships sailing from India to Africa has gone up, especially since about 60 percent of the freight is carried by sea. India's major investments in Africa have taken place in the oil and gas, telecommunications, transport and information technology (IT) sectors.
Exim Bank's chairman and managing director T.C.A. Ranganathan said at the Exim Bank-CII India-Africa Business Conclave last month that India-Africa trade had gone up seven-fold in the last seven years.
He noted that six of the world's fastest growing countries were in Africa. India and Africa's economic engagement has been increasing through the years and the trade went up to $45 billion last year.
India-Africa trade may touch $70 billion by 2015. Air cargo and ocean freight volumes were expected to grow at over nine percent annually till then, he said. Bollore Logistics' India operations handle 50,000 containers per month of both 20 feet and 40 feet size, together with 100,000 tonnes of break bulk (non-containerised freight) and 20,000 tonnes of air shipments per month.
A major part of cargo dispatched from India is heavy equipment such as power plant equipment, electrical transmission products, builder hardware, telecom material and steel bars.
Deccan Herald
Huge sums lost to Angola in crooked trade deals
by Ed Stoddard
Almost $6 billion was spirited out of Angola in 2009, according to new data that highlights how much of the war-scarred African nation's oil wealth is stolen by a corrupt elite.
Calculations provided to Reuters by the Washington-based anti-corruption advocacy group Global Financial Integrity (GFI) suggest funds worth nearly a sixth of Angola's entire annual budget flowed illicitly out of the country in the last year for which data are available.
The bulk of the flows was channelled abroad by a mechanism known as "trade mispricing."
In this case, the way it typically works is that Angolan importers pretend to pay foreigners more for imports than they actually spend. The difference provides cash that can be discreetly put into banks or other assets abroad.
Oil producers seem especially susceptible to this and other kinds of corruption and capital flight. Late last year, GFI estimated that in 2009 $27.5 billion flowed illicitly out of Nigeria, Africa's largest oil producer and a country with eight times Angola's 18.5 million population.
Angola is Africa's largest oil producer after Nigeria and a strategic supplier of crude to the United States.
It has set its sights on producing 2 million barrels of oil a day, and says much of that revenue should be ploughed into rebuilding after a long civil war that shattered the former Portuguese colony before it ended almost a decade ago.
But the secretive governing elite at the top of the ruling MPLA party has long been accused of graft on a grand scale and of plundering the oil wealth of a nation where the vast majority of its 18.5 million inhabitants live in squalor and poverty.
There is a tight oligarchy around President Jose Eduardo dos Santos, who has been in that office since 1979, making him one of Africa's longest-serving leaders.
It is a daunting place to do business. On Transparency International's latest Corruption Perceptions Index, Angola ranked 168th out of 178 countries. And though most residents of the capital are all but destitute, more than one consulting firm ranks Luanda the world's dearest destination for foreigners.
Because of the role of trade mispricing, the figures also highlight the extent of commercial graft, which exacerbates the persistent problem of capital flight and hampers the country's chances of attracting non-oil foreign investment.
The GFI calculations suggest an unaccounted $5.8 billion left Angola in 2009 -- $4.6 billion through trade mispricing, and the rest probably via official corruption or criminal activities traced through balance of payments data.
Angolan government officials were not available to comment on the findings.
GFI lead economist Dev Kar said the mispricing that caused the loss of capital was on the import side of the equation.
"Angola in 2009 said it imported $20.5 billion from the world, and the world said it exported $15.9 billion to Angola. So you have a discrepancy of $4.6 billion," he said in a telephone interview from GFI's Washington office.
In these calculations, costs related to freight and insurance are stripped out.
The mispricing could be on big-ticket items such as oil-sector equipment, but Kar said other goods "are also likely to be involved. Angola has a diversified import base."
In an example of how it could work, a company or official could say a piece of imported equipment costs $100 million when in fact it was exported with an $80 million price tag.
"An Angolan importer overpays the exporter, say in the United States, and asks the exporter to deposit the excess payment in the importer's offshore account or a Swiss bank," said Kar.
And there can a double-whammy for the dodgy importer as the government may make scarce foreign exchange available at favourable rates.
"There is a double gain -- on the exchange rate and on transferring the money outside," said Kar.
There is also often a link between illicit outflows in petrol producers such as Angola, and the oil price. In 2009, oil averaged $61.80 a barrel. It traded generally higher in 2010 and is currently fetching above $120 a barrel, so the illicit flows out of Angola could swell.
Angola is often held up as a prime example of the "resource curse" that prevents oil and mineral wealth from bringing broader prosperity to a developing country.
This is because it is an easy and opaque source of revenue for governing elites, giving those at the top little incentive to pursue policies to diversify the economy.
Such problems have led to a drive for greater transparency in extractive industries. But U.S. oil majors and lobbies are fighting to water down new rules that would require them to disclose their payments to foreign governments.
In a report last year, GFI estimated that Africa alone lost $854 billion in illicit flows from 1970 to 2008, a key reason behind the continent's high rates of poverty.
Reuters
Almost $6 billion was spirited out of Angola in 2009, according to new data that highlights how much of the war-scarred African nation's oil wealth is stolen by a corrupt elite.
Calculations provided to Reuters by the Washington-based anti-corruption advocacy group Global Financial Integrity (GFI) suggest funds worth nearly a sixth of Angola's entire annual budget flowed illicitly out of the country in the last year for which data are available.
The bulk of the flows was channelled abroad by a mechanism known as "trade mispricing."
In this case, the way it typically works is that Angolan importers pretend to pay foreigners more for imports than they actually spend. The difference provides cash that can be discreetly put into banks or other assets abroad.
Oil producers seem especially susceptible to this and other kinds of corruption and capital flight. Late last year, GFI estimated that in 2009 $27.5 billion flowed illicitly out of Nigeria, Africa's largest oil producer and a country with eight times Angola's 18.5 million population.
Angola is Africa's largest oil producer after Nigeria and a strategic supplier of crude to the United States.
It has set its sights on producing 2 million barrels of oil a day, and says much of that revenue should be ploughed into rebuilding after a long civil war that shattered the former Portuguese colony before it ended almost a decade ago.
But the secretive governing elite at the top of the ruling MPLA party has long been accused of graft on a grand scale and of plundering the oil wealth of a nation where the vast majority of its 18.5 million inhabitants live in squalor and poverty.
There is a tight oligarchy around President Jose Eduardo dos Santos, who has been in that office since 1979, making him one of Africa's longest-serving leaders.
It is a daunting place to do business. On Transparency International's latest Corruption Perceptions Index, Angola ranked 168th out of 178 countries. And though most residents of the capital are all but destitute, more than one consulting firm ranks Luanda the world's dearest destination for foreigners.
Because of the role of trade mispricing, the figures also highlight the extent of commercial graft, which exacerbates the persistent problem of capital flight and hampers the country's chances of attracting non-oil foreign investment.
The GFI calculations suggest an unaccounted $5.8 billion left Angola in 2009 -- $4.6 billion through trade mispricing, and the rest probably via official corruption or criminal activities traced through balance of payments data.
Angolan government officials were not available to comment on the findings.
GFI lead economist Dev Kar said the mispricing that caused the loss of capital was on the import side of the equation.
"Angola in 2009 said it imported $20.5 billion from the world, and the world said it exported $15.9 billion to Angola. So you have a discrepancy of $4.6 billion," he said in a telephone interview from GFI's Washington office.
In these calculations, costs related to freight and insurance are stripped out.
The mispricing could be on big-ticket items such as oil-sector equipment, but Kar said other goods "are also likely to be involved. Angola has a diversified import base."
In an example of how it could work, a company or official could say a piece of imported equipment costs $100 million when in fact it was exported with an $80 million price tag.
"An Angolan importer overpays the exporter, say in the United States, and asks the exporter to deposit the excess payment in the importer's offshore account or a Swiss bank," said Kar.
And there can a double-whammy for the dodgy importer as the government may make scarce foreign exchange available at favourable rates.
"There is a double gain -- on the exchange rate and on transferring the money outside," said Kar.
There is also often a link between illicit outflows in petrol producers such as Angola, and the oil price. In 2009, oil averaged $61.80 a barrel. It traded generally higher in 2010 and is currently fetching above $120 a barrel, so the illicit flows out of Angola could swell.
Angola is often held up as a prime example of the "resource curse" that prevents oil and mineral wealth from bringing broader prosperity to a developing country.
This is because it is an easy and opaque source of revenue for governing elites, giving those at the top little incentive to pursue policies to diversify the economy.
Such problems have led to a drive for greater transparency in extractive industries. But U.S. oil majors and lobbies are fighting to water down new rules that would require them to disclose their payments to foreign governments.
In a report last year, GFI estimated that Africa alone lost $854 billion in illicit flows from 1970 to 2008, a key reason behind the continent's high rates of poverty.
Reuters
Import taxes curb intra-African trade
by Samantha Enslin-Payne
Global businesses are focusing on Africa as the continent of the future, but import duties are hindering intra-African trade and making expansion in the continent more difficult, according to Stanislav Vecera, the general manager of Procter & Gamble (P&G) South and East Africa.
Vecera said that Africa was growing faster than the rest of the world, political and economic stability had been achieved in many countries and there were “800 million consumers that are not served today as they should be.” meaning there was tremendous potential in the region.
He added: “Global business leaders realise this is the continent of the future.”
P&;G brands include Pantene, Pampers, Gillette and Vicks. It has four manufacturing facilities in Africa – in South Africa, Morocco, Egypt and Nigeria.
P&G’s strategy is to develop regional manufacturing facilities to supply goods to consumers there and elsewhere in Africa. But Vecera said intra-African trade was being hamstrung by high import taxes.
“The Southern African Development Community (SADC) is not working. If you want to deliver products from South Africa to other countries you are hit with duties. One big trade zone will help.”
Rob Davies, the Minister of Trade and Industry, has said the possibility of a free trade zone stretching from the Cape to Cairo will probably be tabled in South Africa by mid-year.
Such a plan would be achieved in collaboration with the Common Market for Eastern and Southern Africa and the East African Community, involving 29 countries.
The obstacles to establishing a free trade zone included accelerating the development of infrastructure in neighbouring countries, particularly in terms of transport.
But Vecera said if import taxes were removed, business would find a way to overcome infrastructure challenges.
IOL
Global businesses are focusing on Africa as the continent of the future, but import duties are hindering intra-African trade and making expansion in the continent more difficult, according to Stanislav Vecera, the general manager of Procter & Gamble (P&G) South and East Africa.
Vecera said that Africa was growing faster than the rest of the world, political and economic stability had been achieved in many countries and there were “800 million consumers that are not served today as they should be.” meaning there was tremendous potential in the region.
He added: “Global business leaders realise this is the continent of the future.”
P&;G brands include Pantene, Pampers, Gillette and Vicks. It has four manufacturing facilities in Africa – in South Africa, Morocco, Egypt and Nigeria.
P&G’s strategy is to develop regional manufacturing facilities to supply goods to consumers there and elsewhere in Africa. But Vecera said intra-African trade was being hamstrung by high import taxes.
“The Southern African Development Community (SADC) is not working. If you want to deliver products from South Africa to other countries you are hit with duties. One big trade zone will help.”
Rob Davies, the Minister of Trade and Industry, has said the possibility of a free trade zone stretching from the Cape to Cairo will probably be tabled in South Africa by mid-year.
Such a plan would be achieved in collaboration with the Common Market for Eastern and Southern Africa and the East African Community, involving 29 countries.
The obstacles to establishing a free trade zone included accelerating the development of infrastructure in neighbouring countries, particularly in terms of transport.
But Vecera said if import taxes were removed, business would find a way to overcome infrastructure challenges.
IOL
April 05, 2011
India quietly builds a business presence in Africa
by Akanksha Awal
While China has made headlines – and generated controversy in the west – with its push into Africa, India has quietly been developing a big business presence on the continent in everything from gold to pharaceuticals.
Topping the trade charts, India has emerged as Africa’s fourth largest trading partners, behind the EU, China and the US.
Trade between Asia’s third largest economy and Africa is booming at $45bn in 2010-11 and is set to exceed $75bn by 2015, Anand Sharma, India’s trade minister, said on March 29.
India-Africa trade grew four-fold from $9.6bn in 2004-5 to $35bn in 2009-10 while Indian exports to Africa rose from $ 5.6bn in 2004-05 to $ 13.5bn in 2009-10, with South Africa, the newly ascended BRIC nation, as its largest trading partner on the continent.
India continues to be the continent’s pharmacy with pharmaceuticals products making up an 11.1 per cent share of the exported items from India followed by machinery exports which make up at 10.8 per cent share of the total. By contrast, petroleum products and gold, the two prized commodities, form the bulk of India’s imports from the continent accounting for 63.5 and 13.1 per cent share of the total imports respectively.
The continent has benefitted from high commodity prices since 2008, while investments in infrastructure have helped fuel domestic growth. The continent is set to grow at 5.5 per cent in 2011, according to the IMF. Its GDP set to exceed $2.6tn by 2020, according to McKinsey, a global consultancy.
The continent presents lucrative opportunities for Indian investors, squeezed out of the domestic market by the tough competition. Seeking business in a less-crowded market, Indian business people have been snapping up deals in telecoms and consumer products to agriculture, vying for a share of the African pie.
“Indian entrepreneurs have created products for the bottom of the pyramid. There are more than 700m people with mobile phones today,” said Hari Bhartia, the President of Confederation of Indian Industries.
While India might be losing the African resource race to China, Indian investor confidence in Africa may provide a new way forward for the country to extend its influence.
Financial Times
While China has made headlines – and generated controversy in the west – with its push into Africa, India has quietly been developing a big business presence on the continent in everything from gold to pharaceuticals.
Topping the trade charts, India has emerged as Africa’s fourth largest trading partners, behind the EU, China and the US.
Trade between Asia’s third largest economy and Africa is booming at $45bn in 2010-11 and is set to exceed $75bn by 2015, Anand Sharma, India’s trade minister, said on March 29.
India-Africa trade grew four-fold from $9.6bn in 2004-5 to $35bn in 2009-10 while Indian exports to Africa rose from $ 5.6bn in 2004-05 to $ 13.5bn in 2009-10, with South Africa, the newly ascended BRIC nation, as its largest trading partner on the continent.
India continues to be the continent’s pharmacy with pharmaceuticals products making up an 11.1 per cent share of the exported items from India followed by machinery exports which make up at 10.8 per cent share of the total. By contrast, petroleum products and gold, the two prized commodities, form the bulk of India’s imports from the continent accounting for 63.5 and 13.1 per cent share of the total imports respectively.
The continent has benefitted from high commodity prices since 2008, while investments in infrastructure have helped fuel domestic growth. The continent is set to grow at 5.5 per cent in 2011, according to the IMF. Its GDP set to exceed $2.6tn by 2020, according to McKinsey, a global consultancy.
The continent presents lucrative opportunities for Indian investors, squeezed out of the domestic market by the tough competition. Seeking business in a less-crowded market, Indian business people have been snapping up deals in telecoms and consumer products to agriculture, vying for a share of the African pie.
“Indian entrepreneurs have created products for the bottom of the pyramid. There are more than 700m people with mobile phones today,” said Hari Bhartia, the President of Confederation of Indian Industries.
While India might be losing the African resource race to China, Indian investor confidence in Africa may provide a new way forward for the country to extend its influence.
Financial Times
Africans welcome China's growing economic power
The prospect of growing Chinese economic clout is welcomed in all African countries, in contrast to other parts of the world where attitudes are either negative or divided, a poll showed on March 27.
Asked how they view the possibility of an economically far stronger China, around four in five Nigerians and Kenyans said they looked forward to such an outcome, according to the survey of more than 28,000 people in 27 countries commissioned by the BBC World Service.
"All African countries view China's increasing economic power positively," the survey report said.
Sub-Saharan Africa was also home to the very few countries worldwide where most people would be happy about China boosting its military might.
China is investing large amounts of money and technical expertise in African countries, seeking a reliable source of raw materials to sustain its economic growth.
Globally, half of all respondents favoured the prospect of a wealthier China and only a third believed it would be unwelcome. The split was little changed from the previous poll in 2005.
However, in North America, the majority would view such a development warily, and more so than six years ago.
Unfavourable views of China's economic influence rose in neighbouring Japan, South Korea and Russia.
Overall, people expected China will be a more important economic partner to their respective countries than the United States or the European Union in 10 years.
Interviews were conducted between December 2010 and February 2011.
Reuters
Asked how they view the possibility of an economically far stronger China, around four in five Nigerians and Kenyans said they looked forward to such an outcome, according to the survey of more than 28,000 people in 27 countries commissioned by the BBC World Service.
"All African countries view China's increasing economic power positively," the survey report said.
Sub-Saharan Africa was also home to the very few countries worldwide where most people would be happy about China boosting its military might.
China is investing large amounts of money and technical expertise in African countries, seeking a reliable source of raw materials to sustain its economic growth.
Globally, half of all respondents favoured the prospect of a wealthier China and only a third believed it would be unwelcome. The split was little changed from the previous poll in 2005.
However, in North America, the majority would view such a development warily, and more so than six years ago.
Unfavourable views of China's economic influence rose in neighbouring Japan, South Korea and Russia.
Overall, people expected China will be a more important economic partner to their respective countries than the United States or the European Union in 10 years.
Interviews were conducted between December 2010 and February 2011.
Reuters
On eve of elections, key facts on Nigeria
Africa's most populous nation and top oil exporter holds parliamentary, presidential and state governorship elections over three weeks starting on April 2.
Here are some facts about Nigeria:
ECONOMY: Sub-Saharan Africa's second largest economy after South Africa, and Africa's top exporter of crude oil.
-- Oil accounts for over 90 percent of foreign revenues. The agriculture and manufacturing sectors have been neglected in the half century since Nigeria began pumping crude and successive governments have done little to diversify the economy.
-- But its banking sector is growing rapidly and its capital markets are deepening, making it an increasingly attractive destination for emerging markets investors who see it as one of the world's last scaleable but untapped frontiers.
-- GDP stood at $173 billion in 2009, according to World Bank statistics, and has been growing at around 7 percent, making it one of the world's fastest growing economies.
-- But its dependence on imports, including everything from toothpicks to refined fuel, has meant inflation has remained stubbornly in double digits and chronic power shortages have kept the cost of doing business high.
-- Official figures put unemployment at 19.7 percent, but joblessness among youths in urban areas is significantly higher.
OIL: Nigeria is currently pumping around 2.6 million barrels per day (bpd) of oil, according to government figures, much of it to the United States, Europe and Asia. Its sweet, light crude is sought-after because it is easy to refine into high-yield end products such as gasoline.
-- It has four refineries with a combined capacity of 445,000 bpd but they have never reached full production because of sabotage and poor maintenance, causing the country to rely on expensive imported fuel for most of its energy needs.
-- It also has the world's seventh largest gas reserves and has ambitious plans to increase supply to 13 billion cubic feet per day (cfd) by 2015, roughly double current levels.
SECURITY: Thousands have been killed in localised violence since the end of military rule in 1999, mostly in sectarian clashes in the central "Middle Belt".
-- Militants in the oil-producing Niger Delta in the south, one of the world's largest wetlands and home to the continent's biggest oil and gas industry, have also waged an insurgency although violence has eased since an amnesty in 2009.
-- Nigeria is the world's fourth largest contributor of troops to international peacekeeping operations, is one of the co-founders of the African Union, and holds the chairmanship of West African regional bloc ECOWAS.
POPULATION: With more than 154 million people, Nigeria is Africa's most populous nation, home to more people than Russia. One in five sub-Saharan Africans are Nigerian.
-- It is one of the world's major oil and gas exporters but well over half of its people live on less than $2 a day. Life expectancy at birth is just 48.4 years, on a par with much poorer West African nations such as Sierra Leone and Chad.
RELIGION: Roughly divided into a Muslim north and Christian south, with sizeable minorities in both. The Muslim community, accounting for approximately half the population, is the largest in sub-Saharan Africa. Traditional beliefs are widespread and many combine them with Islam or Christianity.
-- Home to more than 250 ethnic groups, the three biggest being the Hausa, Yoruba and Ibo. English is the official language but in many rural areas only local languages are used.
Reuters
Here are some facts about Nigeria:
ECONOMY: Sub-Saharan Africa's second largest economy after South Africa, and Africa's top exporter of crude oil.
-- Oil accounts for over 90 percent of foreign revenues. The agriculture and manufacturing sectors have been neglected in the half century since Nigeria began pumping crude and successive governments have done little to diversify the economy.
-- But its banking sector is growing rapidly and its capital markets are deepening, making it an increasingly attractive destination for emerging markets investors who see it as one of the world's last scaleable but untapped frontiers.
-- GDP stood at $173 billion in 2009, according to World Bank statistics, and has been growing at around 7 percent, making it one of the world's fastest growing economies.
-- But its dependence on imports, including everything from toothpicks to refined fuel, has meant inflation has remained stubbornly in double digits and chronic power shortages have kept the cost of doing business high.
-- Official figures put unemployment at 19.7 percent, but joblessness among youths in urban areas is significantly higher.
OIL: Nigeria is currently pumping around 2.6 million barrels per day (bpd) of oil, according to government figures, much of it to the United States, Europe and Asia. Its sweet, light crude is sought-after because it is easy to refine into high-yield end products such as gasoline.
-- It has four refineries with a combined capacity of 445,000 bpd but they have never reached full production because of sabotage and poor maintenance, causing the country to rely on expensive imported fuel for most of its energy needs.
-- It also has the world's seventh largest gas reserves and has ambitious plans to increase supply to 13 billion cubic feet per day (cfd) by 2015, roughly double current levels.
SECURITY: Thousands have been killed in localised violence since the end of military rule in 1999, mostly in sectarian clashes in the central "Middle Belt".
-- Militants in the oil-producing Niger Delta in the south, one of the world's largest wetlands and home to the continent's biggest oil and gas industry, have also waged an insurgency although violence has eased since an amnesty in 2009.
-- Nigeria is the world's fourth largest contributor of troops to international peacekeeping operations, is one of the co-founders of the African Union, and holds the chairmanship of West African regional bloc ECOWAS.
POPULATION: With more than 154 million people, Nigeria is Africa's most populous nation, home to more people than Russia. One in five sub-Saharan Africans are Nigerian.
-- It is one of the world's major oil and gas exporters but well over half of its people live on less than $2 a day. Life expectancy at birth is just 48.4 years, on a par with much poorer West African nations such as Sierra Leone and Chad.
RELIGION: Roughly divided into a Muslim north and Christian south, with sizeable minorities in both. The Muslim community, accounting for approximately half the population, is the largest in sub-Saharan Africa. Traditional beliefs are widespread and many combine them with Islam or Christianity.
-- Home to more than 250 ethnic groups, the three biggest being the Hausa, Yoruba and Ibo. English is the official language but in many rural areas only local languages are used.
Reuters
India, Africa target $70 bn trade by 2015
India and Africa have set a target to take two-way commerce to $70 billion by 2015 on the back of increasing economic engagement between the two sides.
Currently, bilateral trade between India and Africa stands at about $45 billion.
"We have set for ourself a target of $70 billion by 2015 and I am sure that we will be able to achieve it," Commerce and Industry Minister Anand Sharma said here at CII's India-Africa conclave.
He said huge potential is available for businessmen of both India and Africa.
In the presence of the minister, Exim Bank has entered into an agreement on a project basis with Tanzania and Mozambique to provide lines of credit worth $36 million and $20 million, respectively.
Speaking on the occasion, Mozambique Prime Minister Aires Bonifacio Ali invited Indian businesses to invest in Africa.
"Indian multinational companies, small and medium enterprises and individuals are already investing in Africa, and the results are encouraging. Indeed, we would like to reiterate our warm invitation to all Indian business people to make huge investments in Africa and join our efforts geared to boost and diversify our economies, thus contributing to African development," Ali said.
Over 650 participants from more than 36 African nations, including the Prime Ministers of Mozambique and Togo, the Deputy Prime Minister of Somalia and ministers from over 19 African countries, are taking part in the conclave.
Business Standard
Currently, bilateral trade between India and Africa stands at about $45 billion.
"We have set for ourself a target of $70 billion by 2015 and I am sure that we will be able to achieve it," Commerce and Industry Minister Anand Sharma said here at CII's India-Africa conclave.
He said huge potential is available for businessmen of both India and Africa.
In the presence of the minister, Exim Bank has entered into an agreement on a project basis with Tanzania and Mozambique to provide lines of credit worth $36 million and $20 million, respectively.
Speaking on the occasion, Mozambique Prime Minister Aires Bonifacio Ali invited Indian businesses to invest in Africa.
"Indian multinational companies, small and medium enterprises and individuals are already investing in Africa, and the results are encouraging. Indeed, we would like to reiterate our warm invitation to all Indian business people to make huge investments in Africa and join our efforts geared to boost and diversify our economies, thus contributing to African development," Ali said.
Over 650 participants from more than 36 African nations, including the Prime Ministers of Mozambique and Togo, the Deputy Prime Minister of Somalia and ministers from over 19 African countries, are taking part in the conclave.
Business Standard
Zambia: one million tonnes copper per annum forecast by 2015
Zambian Mines and Minerals Development Minister Maxwell Mwale says the country’s copper production is expected to hit 1,000,000 tonnes per year by 2015 from the current 713,000 tonnes.
Mr. Mwale told parliament... the expected increase will be as a result of the additional contribution of new copper projects such as the Konkola north copper project, Nchanga copper refectory ores, and the Mkushi copper project among others.
He says the Konkola north mine which is jointly owned by African Rainbow of South Africa and Vale of Brazil has an estimated ore reserve of 246 million tonnes at a grade of 2.26% copper giving a total value of copper of 5.6 million tonnes. Mr. Mwale added that the two companies hold 80% shares in the mine with the remaining 20% shares held by ZCCM-IH and five percent shares being free carry.
Mr Mwale says the mining sector’s current contribution to the national treasury stands at 30 percent. He said the sector is currently contributing an average of 10 percent to GDP, with the potential to contribute in excess of 10 percent GDP.
Lusaka Times
Mr. Mwale told parliament... the expected increase will be as a result of the additional contribution of new copper projects such as the Konkola north copper project, Nchanga copper refectory ores, and the Mkushi copper project among others.
He says the Konkola north mine which is jointly owned by African Rainbow of South Africa and Vale of Brazil has an estimated ore reserve of 246 million tonnes at a grade of 2.26% copper giving a total value of copper of 5.6 million tonnes. Mr. Mwale added that the two companies hold 80% shares in the mine with the remaining 20% shares held by ZCCM-IH and five percent shares being free carry.
Mr Mwale says the mining sector’s current contribution to the national treasury stands at 30 percent. He said the sector is currently contributing an average of 10 percent to GDP, with the potential to contribute in excess of 10 percent GDP.
Lusaka Times
UN sanctions on Libya won't affect Zambian telecom
Zambian Finance and National Planning Minister Situmbeko Musokotwane has assured the nation that the United Nations (UN) Security Council resolution passed to freeze assets owned by the Libyan government will not affect operations of Zamtel, which is partially owned by LapGreen.
Dr Musokotwane told Parliament in a ministerial statement that the government understood that there was a likelihood that the shares in Zamtel held by Lap-Green were covered by the UN resolution and that they would be frozen.
LapGreen, a Mauritanian company headquartered in Uganda and 100 per cent owned by Libya Africa Investment Portfolio, owns 75 per cent equity in Zamtel while the remaining 25 per cent shares are owned by the Zambian Government.
“As a consequence, certain actions such as payments of dividends or registration of transfer of such shares for which as Government we already have protection in the transaction documents shall be temporarily suspended, pending resolution of the current issues in Libya. It is important to note that the freezing of assets, as it pertains to Zamtel, relates to the shareholder LapGreen and its holding of shares in Zamtel. It does not involve any interruption of or impediment to normal operations of Zamtel. Zamtel will, therefore, continue to operate as normal, and is under no restriction or restraint deriving from the above mentioned resolution,” Dr Musokotwane said.
He said as a cautionary measure, the Government would seek final clarification from the sanctions committee established under clause 24 of the UN Security Council resolution number 1970 on whether the LapGreen holding in Zamtel and any other relevant assets fell within the definition of the assets to be frozen under the foregoing resolution.
Musokotwane said before such clarification, the Government would exercise its rights under the transaction documents entered into within the privatisation of Zamtel in a manner that would be supportive to the implementation of the UN resolutions.
The Government plans to adopt formal general administrative measures that should, under the framework provided by the Zambian law, prevent any breach of the UN Security Council resolutions 1970 and 1973 in relation to the freezing of the assets.
“These administrative measures would impact LapGreen as a shareholder in Zamtel but not the operations of Zamtel. We wish to stress again that the objective of the foregoing resolutions is to ensure that no monies are remitted to support or otherwise facilitate the perpetration of violence against people in Libya,” Musokotwane said.
He said there had been considerable speculation in the past few days on the future of Zamtel in connection with the recent events in Libya. He said when the privatisation of Zamtel was completed in July 2010, a number of transaction documents were agreed and signed between the Government, Zamtel and LapGreen.
“It should be further noted that when the transaction was completed on July 10, 2010, the full U$257 million consideration was paid.
“The funds were disbursed in accordance with the transaction documents with $64 million going straight into the Zamtel account to recapitalise the company. A further $70 million was secured by Zamtel in form of vendor financing by its suppliers,” he said.
Meanwhile, Foreign Affairs Minister Kabinga Pande said in a statement yesterday that Zambia had taken note of UN Security Council resolution 1973 of March 17, 2011 on the imposition of a no-fly Zone on Libya.
Mr Pande said the Government would emphasise to the Libyan authorities for the need for cessation of all acts of violence and attacks on civilians, and uphold their earlier announcement of a ceasefire.
“At the same time, the Zambian Government is hopeful that as the no-fly zone is being implemented, death or harm to innocent civilians will be avoided,” he said.
Times of Zambia
Dr Musokotwane told Parliament in a ministerial statement that the government understood that there was a likelihood that the shares in Zamtel held by Lap-Green were covered by the UN resolution and that they would be frozen.
LapGreen, a Mauritanian company headquartered in Uganda and 100 per cent owned by Libya Africa Investment Portfolio, owns 75 per cent equity in Zamtel while the remaining 25 per cent shares are owned by the Zambian Government.
“As a consequence, certain actions such as payments of dividends or registration of transfer of such shares for which as Government we already have protection in the transaction documents shall be temporarily suspended, pending resolution of the current issues in Libya. It is important to note that the freezing of assets, as it pertains to Zamtel, relates to the shareholder LapGreen and its holding of shares in Zamtel. It does not involve any interruption of or impediment to normal operations of Zamtel. Zamtel will, therefore, continue to operate as normal, and is under no restriction or restraint deriving from the above mentioned resolution,” Dr Musokotwane said.
He said as a cautionary measure, the Government would seek final clarification from the sanctions committee established under clause 24 of the UN Security Council resolution number 1970 on whether the LapGreen holding in Zamtel and any other relevant assets fell within the definition of the assets to be frozen under the foregoing resolution.
Musokotwane said before such clarification, the Government would exercise its rights under the transaction documents entered into within the privatisation of Zamtel in a manner that would be supportive to the implementation of the UN resolutions.
The Government plans to adopt formal general administrative measures that should, under the framework provided by the Zambian law, prevent any breach of the UN Security Council resolutions 1970 and 1973 in relation to the freezing of the assets.
“These administrative measures would impact LapGreen as a shareholder in Zamtel but not the operations of Zamtel. We wish to stress again that the objective of the foregoing resolutions is to ensure that no monies are remitted to support or otherwise facilitate the perpetration of violence against people in Libya,” Musokotwane said.
He said there had been considerable speculation in the past few days on the future of Zamtel in connection with the recent events in Libya. He said when the privatisation of Zamtel was completed in July 2010, a number of transaction documents were agreed and signed between the Government, Zamtel and LapGreen.
“It should be further noted that when the transaction was completed on July 10, 2010, the full U$257 million consideration was paid.
“The funds were disbursed in accordance with the transaction documents with $64 million going straight into the Zamtel account to recapitalise the company. A further $70 million was secured by Zamtel in form of vendor financing by its suppliers,” he said.
Meanwhile, Foreign Affairs Minister Kabinga Pande said in a statement yesterday that Zambia had taken note of UN Security Council resolution 1973 of March 17, 2011 on the imposition of a no-fly Zone on Libya.
Mr Pande said the Government would emphasise to the Libyan authorities for the need for cessation of all acts of violence and attacks on civilians, and uphold their earlier announcement of a ceasefire.
“At the same time, the Zambian Government is hopeful that as the no-fly zone is being implemented, death or harm to innocent civilians will be avoided,” he said.
Times of Zambia
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