U.S. retail behemoth Walmart has come to South Africa, to decidedly mixed reactions. Some hope Walmart's takeover of Massmart will result in many more jobs for South Africans, lower prices for consumers and many other benefits.
Others have greeted Walmart's entry into South Africa with trepidation. The unions are loudly hostile to the company's famed anti-union hostility. Small retailers are worried that Walmart will wipe them out by out-competing them in their market niche.
The South African government wants to be seen to be welcoming foreign investors, but is worried about the possible downsides of this global giant's unique requirements and known operating style. It has insisted that Walmart agree not to cut jobs for several years, a known part of the company's lean business model.
A trickier, more controversial aspect is how to make Walmart get many of its goods from local suppliers, rather than from its international supply network, aggressively developed for huge volumes, consistency of supply, uniformity and the lowest possible price. Attempts to tamper with this are seen as blasphemy to the religion of free trade, which South Africa anxiously wants to be seen as a devout adherent of.
In other words, many of the qualities that make it possible for the 'Walmart model' to work at offering international consumers low prices are a survival threat to many of the local manufacturing/supply sectors that are not 'competitive' enough to find a perch in its supply chain.
The South African government has negotiated/forced some concessions from Walmart, such as the moratorium on job reductions. It may wrangle a few more in its controversial efforts to modify the anti-competition authority's approval of Walmart's entry into South Africa. But such is the size and the power of Walmart that once it comes in and is established, nothing will ever be the same again for South Africa's retail sector, for better and/or for worse.
There are ironies in the fears of many sections of South African society that even as consumers gain from the hoped for lower prices and other benefits of Walmart's entry, significant other parts of the economy are in danger of being flattened by its weight and momentum.
In the last 10 years or so, many South African retail corporates have moved into countries all over Africa, using an aggressive 'Walmart-lite' business model. For the many countries that have never widely had a system of centralized large department-style stores as are common in South Africa and western countries, this has been welcomed by consumers. 'Reasonable' prices, choice and variety, convenience, jobs, tax revenues, etc have been among the touted and welcomed benefits.
Almost all the traded goods are imported from South Africa, which for the most part suits everybody just fine. The South Africans opened up new captive markets for their manufacturers, while the locals enjoyed the convenience of a range of 'prestige' goods under one roof that they might previously have had to go far for, or might not have had access to before at all.
But local suppliers felt angry, humiliated and passed over when perishable goods they could supply such as chickens, eggs, fruit and vegetables were flown in from South Africa. Bitter complaints have been heard, with calls for selected import bans or high tariffs heard in countries like Zimbabwe, Zambia, Uganda, Namibia and others, all of them recent target markets of South Africa's retail/manufacturing juggernaut.
''The South Africans are not only denying us opportunities to supply them, they have taken away our customers, we are going broke, '' is a refrain that has often been heard in the countries the country's retail chains have moved into in recent years. The same sort of fears the South Africans are experiencing as Walmart moves into their country today!
The South Africans' response to producers in Zambia, Zimbabwe, etc: locals suppliers can't meet our volumes, supplies-consistency, price, quality and other requirements, that's why we fly even fresh foods in. If that throws you out of business, tough luck.
As South African retail companies have done to weaker markets/economies than theirs, so might Walmart do to theirs. It's a dog-eat-dog world.
Trade Africa
http://www.tradeafricablog.com
July 31, 2011
China-Namibia trade up 60-fold since 2000
China is close to an accord that will clear the way for it to import beef from Namibia, its ambassador to the southern African nation said.
“As our governments have agreed on the content of the Animal Heath and Quarantine Agreement, Namibia’s agricultural and livestock products are likely to enter the Chinese market in the foreseeable future,” Wei Ruixing told a Namibia-China business forum in the Namibian capital, Windhoek.
Trade between the two countries was $713 million last year, 60 times more than in 2000.
iNamibia
“As our governments have agreed on the content of the Animal Heath and Quarantine Agreement, Namibia’s agricultural and livestock products are likely to enter the Chinese market in the foreseeable future,” Wei Ruixing told a Namibia-China business forum in the Namibian capital, Windhoek.
Trade between the two countries was $713 million last year, 60 times more than in 2000.
iNamibia
Equatorial Guinea struggles towards life after oil
by David Lewis
Fifteen years of oil production have helped the tiny African state of Equatorial Guinea pay for roads, glass and steel ministry buildings and no fewer than two conference centres in its mist-shrouded island capital Malabo.
But uncertainty over how long the oil and gas will keep flowing has focused attention on whether fundamental progress has really been made in preparing the 700,000-strong nation for the day the hydrocarbons run out.
"Infrastructure development has happened but it is not enough," said Obiageli Ezekwesili, vice president of the World Bank for the Africa region. "What is missing (are) the institutional reforms, the kinds of governance systems ... that enable you to achieve value for money when you are building your infrastructure and then, under that big block, investment in social sectors."
The energy ministry says the Gulf of Guinea nation produces around 400,000 barrels of oil equivalent a day, generating some $3-3.5 billion a year in revenues.
Estimates for how long this will last vary widely from 10 to 30 years. Some of the original fields are maturing but there are hopes of new oil finds while gas prospects are being developed, including a second Liquified Natural Gas (LNG) train.
The government plans to use the petro-dollars to lay the foundations for a diversified economy, targeting agriculture, fishing and high-end tourism. The road and port investments are meant to create a regional transport hub.
Yet some question the feasibility of this goal in a nation where agriculture, in recent years, has rarely extended beyond subsistence farming and which rights groups say has one of the worst records for human rights in Africa.
"They talk about fisheries, tourism and services ... but the nature of the regime is repressive ... and suspicious so they are not equipped for this," said one diplomat.
Noting the fertile nation's need to import basics like tomatoes from Cameroon, the diplomat called it "a classic case of Dutch disease" -- the phenomenon observed in the Netherlands in the 1960s when the local gas sector grew to the detriment of other exporting industries.
A certain reserve in dealing with the outside world is not surprising given that President Teodoro Obiang Nguema Mbasogo has since 1994 had to deal with two attempts to depose him, both involving foreign mercenaries. Yet last month's African Union summit, a gathering later this year of Latin American leaders and the hosting of Africa's top soccer tournament in 2012 may lead to the easing of restrictions and fear of foreigners.
Ironically, construction workers from Turkey, Egypt and China are working on many of the Malabo developments, prompting concerns that locals are missing out on any trickle-down effect.
On paper, Equatorial Guinea's average per capita national income is around $24,000 -- on a par with that of Saudia Arabia -- yet many Equatoguineans are on starkly lower incomes than that would suggest.
Oil funds have been used for social housing projects, and neat rows of houses and appartments have risen in parts of the capital. However, along crumbling roads, there remain neighbourhoods where residents still fetch water in buckets, power is sporadic and dwellings cling to deep, dirty streams.
Francesca Tatchouop Belobe, the minister of economy, commerce and business, said the construction projects were part of the diversification plan and would help the economy, estimated by the World Bank at about $10.5 billion in 2009, reach a growth rate of about 7 percent next year.
"It is nothing extraordinary," she said of the policy, arguing the infrastructure was needed for farming and to lure top-end tourism.
Tatchoup acknowledged the dependence on energy, which she said accounted for about 93 percent of revenues. But she said tourism would be boosted by new ties with foreign airlines while the government has turned to Germany for help in developing agriculture.
Despite the years of oil production, many of the benchmark development and business indicators remain stubbornly low.
Around the AU summit, international broadcasters carried adverts touting the nation as "The new El Dorado of investors." Yet, in 2010, it slipped three places to 164 out of 183 in the World Bank's Doing Business index.
According to the study, starting a business in Equatorial Guinea still takes three times as long as the African average and 10 times that in developed countries of the OECD club. Companies face 46 different taxes every year.
Corruption remains a major concern, with the country languishing in the bottom 10 of anti-graft watchdog Transparency International's corruption perception index in 2010.
Equatorial Guinea's government challenges figures about the country, saying they are based on old data and stressing that steps are being taken to provide more accurate information.
But in its most recent publication, the International Monetary Fund flagged that high levels of spending are eating into the country's reserves and warned the slow pace of reforms was delaying preparations for life after oil.
"The medium-term outlook is clouded by the onset of declining hydrocarbon production," it said in a May 2010 country report that described the non-oil sector as "nascent" and warned that the prospects for rapid export diversification were "low."
"Staff calculations indicate that planned expenditure would exceed expected revenue over the medium term, leading to a near-depletion of the stock of government savings by 2015 and a significant weakening of external stability," it said.
These concerns were echoed by a second diplomat who has followed the country for years and suggested that a power system revolving around one man -- the president -- and the lack of an ingrained enterprise culture meant change was some way off.
"It is going to take a shock to the system for them to diversify," he said.
Reuters
Fifteen years of oil production have helped the tiny African state of Equatorial Guinea pay for roads, glass and steel ministry buildings and no fewer than two conference centres in its mist-shrouded island capital Malabo.
But uncertainty over how long the oil and gas will keep flowing has focused attention on whether fundamental progress has really been made in preparing the 700,000-strong nation for the day the hydrocarbons run out.
"Infrastructure development has happened but it is not enough," said Obiageli Ezekwesili, vice president of the World Bank for the Africa region. "What is missing (are) the institutional reforms, the kinds of governance systems ... that enable you to achieve value for money when you are building your infrastructure and then, under that big block, investment in social sectors."
The energy ministry says the Gulf of Guinea nation produces around 400,000 barrels of oil equivalent a day, generating some $3-3.5 billion a year in revenues.
Estimates for how long this will last vary widely from 10 to 30 years. Some of the original fields are maturing but there are hopes of new oil finds while gas prospects are being developed, including a second Liquified Natural Gas (LNG) train.
The government plans to use the petro-dollars to lay the foundations for a diversified economy, targeting agriculture, fishing and high-end tourism. The road and port investments are meant to create a regional transport hub.
Yet some question the feasibility of this goal in a nation where agriculture, in recent years, has rarely extended beyond subsistence farming and which rights groups say has one of the worst records for human rights in Africa.
"They talk about fisheries, tourism and services ... but the nature of the regime is repressive ... and suspicious so they are not equipped for this," said one diplomat.
Noting the fertile nation's need to import basics like tomatoes from Cameroon, the diplomat called it "a classic case of Dutch disease" -- the phenomenon observed in the Netherlands in the 1960s when the local gas sector grew to the detriment of other exporting industries.
A certain reserve in dealing with the outside world is not surprising given that President Teodoro Obiang Nguema Mbasogo has since 1994 had to deal with two attempts to depose him, both involving foreign mercenaries. Yet last month's African Union summit, a gathering later this year of Latin American leaders and the hosting of Africa's top soccer tournament in 2012 may lead to the easing of restrictions and fear of foreigners.
Ironically, construction workers from Turkey, Egypt and China are working on many of the Malabo developments, prompting concerns that locals are missing out on any trickle-down effect.
On paper, Equatorial Guinea's average per capita national income is around $24,000 -- on a par with that of Saudia Arabia -- yet many Equatoguineans are on starkly lower incomes than that would suggest.
Oil funds have been used for social housing projects, and neat rows of houses and appartments have risen in parts of the capital. However, along crumbling roads, there remain neighbourhoods where residents still fetch water in buckets, power is sporadic and dwellings cling to deep, dirty streams.
Francesca Tatchouop Belobe, the minister of economy, commerce and business, said the construction projects were part of the diversification plan and would help the economy, estimated by the World Bank at about $10.5 billion in 2009, reach a growth rate of about 7 percent next year.
"It is nothing extraordinary," she said of the policy, arguing the infrastructure was needed for farming and to lure top-end tourism.
Tatchoup acknowledged the dependence on energy, which she said accounted for about 93 percent of revenues. But she said tourism would be boosted by new ties with foreign airlines while the government has turned to Germany for help in developing agriculture.
Despite the years of oil production, many of the benchmark development and business indicators remain stubbornly low.
Around the AU summit, international broadcasters carried adverts touting the nation as "The new El Dorado of investors." Yet, in 2010, it slipped three places to 164 out of 183 in the World Bank's Doing Business index.
According to the study, starting a business in Equatorial Guinea still takes three times as long as the African average and 10 times that in developed countries of the OECD club. Companies face 46 different taxes every year.
Corruption remains a major concern, with the country languishing in the bottom 10 of anti-graft watchdog Transparency International's corruption perception index in 2010.
Equatorial Guinea's government challenges figures about the country, saying they are based on old data and stressing that steps are being taken to provide more accurate information.
But in its most recent publication, the International Monetary Fund flagged that high levels of spending are eating into the country's reserves and warned the slow pace of reforms was delaying preparations for life after oil.
"The medium-term outlook is clouded by the onset of declining hydrocarbon production," it said in a May 2010 country report that described the non-oil sector as "nascent" and warned that the prospects for rapid export diversification were "low."
"Staff calculations indicate that planned expenditure would exceed expected revenue over the medium term, leading to a near-depletion of the stock of government savings by 2015 and a significant weakening of external stability," it said.
These concerns were echoed by a second diplomat who has followed the country for years and suggested that a power system revolving around one man -- the president -- and the lack of an ingrained enterprise culture meant change was some way off.
"It is going to take a shock to the system for them to diversify," he said.
Reuters
East African must stop giving foreign investors tax breaks
East African countries must stop giving foreign investors tax breaks and other tax-free incentives if they are truly going to tackle poverty and take charge of their economies, Actionaid and the Tax Justice Network in Africa have warned.
The two civil society organizations commissioned studies in four East Africa Community (EAC) countries, (Tanzania, Kenya, Uganda, and Rwanda) to assess the impact of tax incentives in development policy.
The study found that poor countries, including those in East Africa, have offered a range of tax incentives, such as tax holidays, to attract foreign direct investment. However, the past 10 years of private sector-led economic growth has failed to deliver rapid economic growth, create jobs, or, most glaringly, generate sufficient revenue to meaningfully reduce poverty.
The Rwanda study alone revealed that in 2008 and 2009 the country lost over $234 million due to tax incentives and that every year about a quarter of its potential tax revenue was lost to tax incentives and exemptions given to businesses to attract private sector investment.
ActionAid Rwanda Country Director, Josephine Uwamariya said:
“The money lost to tax breaks in Rwanda would more than double spending on health, education and food security.$234 million amounts to 14 per cent of Rwanda’s potential annual budget.
“Whilst aid is absolutely critical to African nations, on its own it will not put an end to poverty. This is why it is essential that African governments look for innovative sources of funding closer to home, like effective tax systems.”
Governments should now consider bolstering their domestic resource mobilization, which would mean maximizing rather than forfeiting tax revenues.
Vera Mshana, TJN-A Policy and Advocacy Officer said:
“...offering tax incentives as Band-Aid is not only an expensive short-sighted option, but also provides no concrete solutions to underlying economic problems. ActionAid, TJN-A and their partners advocate for regional cooperation to reduce tax incentives – a kind of multilateral disarmament to stop a race to the bottom that erases most of the benefit of economic investment. We are glad the East African Community has begun taking steps to avoid tax competition...”
· ActionAid is an international anti-poverty agency whose aim is to fight poverty and injustice worldwide.
· The Tax Justice Network-Africa (TJN-A) is a Pan-African initiative established in 2007 and a member of the global Tax Justice Network.
The two civil society organizations commissioned studies in four East Africa Community (EAC) countries, (Tanzania, Kenya, Uganda, and Rwanda) to assess the impact of tax incentives in development policy.
The study found that poor countries, including those in East Africa, have offered a range of tax incentives, such as tax holidays, to attract foreign direct investment. However, the past 10 years of private sector-led economic growth has failed to deliver rapid economic growth, create jobs, or, most glaringly, generate sufficient revenue to meaningfully reduce poverty.
The Rwanda study alone revealed that in 2008 and 2009 the country lost over $234 million due to tax incentives and that every year about a quarter of its potential tax revenue was lost to tax incentives and exemptions given to businesses to attract private sector investment.
ActionAid Rwanda Country Director, Josephine Uwamariya said:
“The money lost to tax breaks in Rwanda would more than double spending on health, education and food security.$234 million amounts to 14 per cent of Rwanda’s potential annual budget.
“Whilst aid is absolutely critical to African nations, on its own it will not put an end to poverty. This is why it is essential that African governments look for innovative sources of funding closer to home, like effective tax systems.”
Governments should now consider bolstering their domestic resource mobilization, which would mean maximizing rather than forfeiting tax revenues.
Vera Mshana, TJN-A Policy and Advocacy Officer said:
“...offering tax incentives as Band-Aid is not only an expensive short-sighted option, but also provides no concrete solutions to underlying economic problems. ActionAid, TJN-A and their partners advocate for regional cooperation to reduce tax incentives – a kind of multilateral disarmament to stop a race to the bottom that erases most of the benefit of economic investment. We are glad the East African Community has begun taking steps to avoid tax competition...”
· ActionAid is an international anti-poverty agency whose aim is to fight poverty and injustice worldwide.
· The Tax Justice Network-Africa (TJN-A) is a Pan-African initiative established in 2007 and a member of the global Tax Justice Network.
Ivory Coast to boost oil drilling
Ivory Coast has said it plans to boost oil drilling by the end of 2011 to become a major regional producer.
"We want to start drilling in seven wells by the end of the year to ensure a production of 300,000 barrels a day by 2020, up from 40,000 barrels now," said Adama Toungara, the new oil minister. "We want to make Ivory Coast a sub-regional oil power even though the country will not be an African Kuwait."
Toungara said under the rule of deposed president Laurent Gbagbo the country awarded exploration permits to companies "which have neither the technical expertise nor the financial capacity to explore." And he slammed the "bad governance" in the country's oil sector.
Out of 28 oil fields in the country, 23 are operated by firms from Canada, the United States, Italy, Russia, Ireland, Kuwait and Malaysia, according to official data.
Ivory Coast was until recently the leading oil producer in the eight-nation West African Economic and Monetary Union of West Africa, which excludes Nigeria, the top oil producer in sub-Saharan Africa.
Ghana's recent discovery of oil reserves off its coast last year sparked off a row with Ivory Coast over the border, with Accra accusing Abidjan of claiming part of its maritime space.
Radio Netherlands
"We want to start drilling in seven wells by the end of the year to ensure a production of 300,000 barrels a day by 2020, up from 40,000 barrels now," said Adama Toungara, the new oil minister. "We want to make Ivory Coast a sub-regional oil power even though the country will not be an African Kuwait."
Toungara said under the rule of deposed president Laurent Gbagbo the country awarded exploration permits to companies "which have neither the technical expertise nor the financial capacity to explore." And he slammed the "bad governance" in the country's oil sector.
Out of 28 oil fields in the country, 23 are operated by firms from Canada, the United States, Italy, Russia, Ireland, Kuwait and Malaysia, according to official data.
Ivory Coast was until recently the leading oil producer in the eight-nation West African Economic and Monetary Union of West Africa, which excludes Nigeria, the top oil producer in sub-Saharan Africa.
Ghana's recent discovery of oil reserves off its coast last year sparked off a row with Ivory Coast over the border, with Accra accusing Abidjan of claiming part of its maritime space.
Radio Netherlands
Foreign direct investment in South Africa drops by 70%
by Janice Roberts
South Africa's foreign direct investment (FDI) inflows have dropped by 70% in 2010 when compared with 2009, according to Professor Stephen Gelb of the University of Johannesburg.
South Africa had also been placed tenth on Africa's top 10 recipients of FDI inflows in 2010, compared with fourth place in 2009.
"In 2010, South Africa received only 2.8% of the total of Africa's FDI," Gelb added.
Africa's top-ranked countries in terms of FDI in 2010 were Angola (20% of Africa's total FDI), then Egypt, Nigeria and Libya.
Gelb said it was an important and in some ways "depressing fact" that in Africa as a whole, the total FDI was down by 9% in 2010.
"This means we did not share in the rise of FDI inflows experienced by other developing economies in Asia and Latin America."
Gelb said that South Africa had received about $1.553-billion in FDI in 2010, coming in at 69th in the world and at a level amounting to only one sixth of its peak, recorded in the country in 2008.
"This is a chilling statistic as I've compared it to two countries that are also middle-income, resource-rich states -- Chile with $15-billion in 19th place and Indonesia with $13-billion in 20th place."
Gelb said that Unctad had also carried out the FDI Performance Index.
"The index shows how much FDI a country received as a percentage of its gross domestic product (GDP). In this respect, South Africa came in at 128th in the world in 2010, directly behind Burkina Faso -- so this is a bit disappointing."
However, Gelb pointed out that all these figures did not reflect "the full story" when it came to FDI.
"Africa's performance is bad if we focus only on FDI inflow and outflow values, but it's not just about money. FDI is about the entry into the economy of a bundle of resources, of which some is money, but one must consider skills, technology, business models, management capabilities, new products and new processes too. In my view, these are much more important for long-term economic growth than dollar value."
According to Unctad's report, global FDI had risen 5% in 2010 to US$1.24-trillion -- still below the peak of 37% in 2007.
Inflows to Southern Africa were down by 24% to US$15-billion, although the sub-region accounted for more than one quarter of the African total, the report added.
Inflows to the continent's biggest recipient, Angola, had decreased. The country's oil industry faced the problem of having exceeded the oil production quota allocated by the Organisation of Petroleum Exporting Countries (Opec).
Turning to North Africa, the report stated that the sub-region's FDI inflows had fallen in 2010 for the second year running to $17-billion.
"But the rate of decline was much reduced and the picture uneven within the sub-region."
For example, inflows to the Libyan Arab Jamahiriya rose by more than 40% in 2010 to $3.8-billion, "but this rebound seems to be short-lived, given the current political situation in the country".
FDI inflows also declined in the countries of West Africa.
"Regulatory concerns in the oil industry contributed to the 29% fall in inflows to Nigeria, which still accounted for more than half of the inflows to the sub-region."
The report said that the emerging oil industry had pulled inflows to Ghana and Niger to record levels at $2.5-billion and $947-million respectively.
In Central Africa and East Africa, FDI inflows rose in 2010 to reach US$8-billion and $3.7-billion respectively.
Mail and Guardian
South Africa's foreign direct investment (FDI) inflows have dropped by 70% in 2010 when compared with 2009, according to Professor Stephen Gelb of the University of Johannesburg.
South Africa had also been placed tenth on Africa's top 10 recipients of FDI inflows in 2010, compared with fourth place in 2009.
"In 2010, South Africa received only 2.8% of the total of Africa's FDI," Gelb added.
Africa's top-ranked countries in terms of FDI in 2010 were Angola (20% of Africa's total FDI), then Egypt, Nigeria and Libya.
Gelb said it was an important and in some ways "depressing fact" that in Africa as a whole, the total FDI was down by 9% in 2010.
"This means we did not share in the rise of FDI inflows experienced by other developing economies in Asia and Latin America."
Gelb said that South Africa had received about $1.553-billion in FDI in 2010, coming in at 69th in the world and at a level amounting to only one sixth of its peak, recorded in the country in 2008.
"This is a chilling statistic as I've compared it to two countries that are also middle-income, resource-rich states -- Chile with $15-billion in 19th place and Indonesia with $13-billion in 20th place."
Gelb said that Unctad had also carried out the FDI Performance Index.
"The index shows how much FDI a country received as a percentage of its gross domestic product (GDP). In this respect, South Africa came in at 128th in the world in 2010, directly behind Burkina Faso -- so this is a bit disappointing."
However, Gelb pointed out that all these figures did not reflect "the full story" when it came to FDI.
"Africa's performance is bad if we focus only on FDI inflow and outflow values, but it's not just about money. FDI is about the entry into the economy of a bundle of resources, of which some is money, but one must consider skills, technology, business models, management capabilities, new products and new processes too. In my view, these are much more important for long-term economic growth than dollar value."
According to Unctad's report, global FDI had risen 5% in 2010 to US$1.24-trillion -- still below the peak of 37% in 2007.
Inflows to Southern Africa were down by 24% to US$15-billion, although the sub-region accounted for more than one quarter of the African total, the report added.
Inflows to the continent's biggest recipient, Angola, had decreased. The country's oil industry faced the problem of having exceeded the oil production quota allocated by the Organisation of Petroleum Exporting Countries (Opec).
Turning to North Africa, the report stated that the sub-region's FDI inflows had fallen in 2010 for the second year running to $17-billion.
"But the rate of decline was much reduced and the picture uneven within the sub-region."
For example, inflows to the Libyan Arab Jamahiriya rose by more than 40% in 2010 to $3.8-billion, "but this rebound seems to be short-lived, given the current political situation in the country".
FDI inflows also declined in the countries of West Africa.
"Regulatory concerns in the oil industry contributed to the 29% fall in inflows to Nigeria, which still accounted for more than half of the inflows to the sub-region."
The report said that the emerging oil industry had pulled inflows to Ghana and Niger to record levels at $2.5-billion and $947-million respectively.
In Central Africa and East Africa, FDI inflows rose in 2010 to reach US$8-billion and $3.7-billion respectively.
Mail and Guardian
Africa re-emerging as heroin trafficking hub: U.N.
by Sylvia Westal
Drug traffickers faced with restrictions to transit routes through Asia and the Middle East are turning to eastern Africa, driving up instability and increasing substance abuse, a United Nations report said.
The U.N.'s Office on Drugs and Crime (UNODC) said Africa's emergence as an important heroin transport route in 2009 was of serious concern in a region ill-equipped to fight trafficking or care for people addicted to drugs.
"Drug seizures and the arrest of traffickers indicated that African drug traffickers -- particularly West African networks -- are increasingly transporting Afghan heroin from Pakistan into East Africa for onward shipment to Europe and elsewhere," it said in a global report on the Afghan opium trade.
Afghanistan is the world's biggest producer of opium, the base ingredient of heroin, and over 40 percent of this flowed into Pakistan in 2009 before being transported worldwide as part of the $68 billion global opiate market.
Released on July 22, the report said there were two major heroin seizures during the first quarter of 2011, each of more than 100 kg (220 pounds), reported by Kenya and Tanzania.
"The emergence of Africa as a heroin trafficking hub is almost certainly due to ongoing corruption, widespread poverty and limited law enforcement capacity -- as well as increased pressure on traditional drug trafficking routes," it said.
This provided an incentive to reopen the African route to Europe that had been very active in the 1980s and early 1990s. Traffickers are exploiting poorly-staffed seaports and airports and the lower cost and ease of transporting drugs through Africa makes the extra distance worthwhile.
In 2009, an estimated 150 tonnes of Afghan heroin reached Europe, 120 tonnes arrived in Asia and 45 tonnes came to Africa, the UNODC said.
Organised crime groups are the main beneficiaries of this trade, the report said. It estimated that Afghan drug traffickers earned $2.2 billion in 2009, the Taliban around $155 million and Afghan farmers $440 million.
The increasing amounts of heroin reaching Africa appear to be fuelling drug use, with authorities reporting more cases.
"However, drug abuse estimates are likely to be unrealistically low due to a lack of comprehensive data," the report said.
Reuters
Drug traffickers faced with restrictions to transit routes through Asia and the Middle East are turning to eastern Africa, driving up instability and increasing substance abuse, a United Nations report said.
The U.N.'s Office on Drugs and Crime (UNODC) said Africa's emergence as an important heroin transport route in 2009 was of serious concern in a region ill-equipped to fight trafficking or care for people addicted to drugs.
"Drug seizures and the arrest of traffickers indicated that African drug traffickers -- particularly West African networks -- are increasingly transporting Afghan heroin from Pakistan into East Africa for onward shipment to Europe and elsewhere," it said in a global report on the Afghan opium trade.
Afghanistan is the world's biggest producer of opium, the base ingredient of heroin, and over 40 percent of this flowed into Pakistan in 2009 before being transported worldwide as part of the $68 billion global opiate market.
Released on July 22, the report said there were two major heroin seizures during the first quarter of 2011, each of more than 100 kg (220 pounds), reported by Kenya and Tanzania.
"The emergence of Africa as a heroin trafficking hub is almost certainly due to ongoing corruption, widespread poverty and limited law enforcement capacity -- as well as increased pressure on traditional drug trafficking routes," it said.
This provided an incentive to reopen the African route to Europe that had been very active in the 1980s and early 1990s. Traffickers are exploiting poorly-staffed seaports and airports and the lower cost and ease of transporting drugs through Africa makes the extra distance worthwhile.
In 2009, an estimated 150 tonnes of Afghan heroin reached Europe, 120 tonnes arrived in Asia and 45 tonnes came to Africa, the UNODC said.
Organised crime groups are the main beneficiaries of this trade, the report said. It estimated that Afghan drug traffickers earned $2.2 billion in 2009, the Taliban around $155 million and Afghan farmers $440 million.
The increasing amounts of heroin reaching Africa appear to be fuelling drug use, with authorities reporting more cases.
"However, drug abuse estimates are likely to be unrealistically low due to a lack of comprehensive data," the report said.
Reuters
Energy shortages affect East African Community growth
by Zephania Ubwani
Energy deficits largely due to drought conditions continue to undermine economic gains made by the East African Community (EAC) bloc. Ministers from the five partner states said despite the significant growth trends recorded by the bloc, including intra-regional trade and investment inflows, rising fuel prices and low power generation, pose more challenges to anticipated growth.
"The energy deficit is persistent, widespread and has intensified to the point of crisis...", lamented the chairperson of the EAC Council of Ministers, Ms Hafsa Mossi.
She said although the performance indicators depict a stable growth of the region's economies in terms of Gross Domestic Product (GDP), trade and expansion of investments, the region was still riddled with serious problems, among them the energy deficits.
Others include raging famine in northern Kenya and the Horn of Africa, piracy on the Indian Ocean waters of the East African coast and terrorist threats posed by neighbouring Somalia.
...called for the development of a serious commitment to early warning systems and effective response preparedness to address the energy and food crises in particular...these have worsened because of the most severe drought seen in decades.
The minister's call came at a time when the region's power crisis has worsened with Tanzania, Uganda and Kenya having already instituted power rationing to consumers. With much of the electricity being hydro, the shortage is attributed to lowering of water levels in rivers and dams.
The situation has been critical in Tanzania, where 12-hour power cuts have been in force for the last two months because of falling water levels at the hydro power dams operated by the state-run Tanzania Electric Supply Company (Tanesco) and shortage of fuel for thermal generation.
According to the World Bank, the per capita consumption of electricity for Tanzania and Uganda in 2007 was 68Kwh and 81 Kwh respectively, while Kenya's was 128Kwh in 2008.
Significant growth trends have been recorded in intra-regional and international trade which grew by between 20 and 30 per cent apart from Foreign Direct Investment (FDI) inflows which have increased from $683 million to $1.7 billion in the last five years.
The Citizen
Energy deficits largely due to drought conditions continue to undermine economic gains made by the East African Community (EAC) bloc. Ministers from the five partner states said despite the significant growth trends recorded by the bloc, including intra-regional trade and investment inflows, rising fuel prices and low power generation, pose more challenges to anticipated growth.
"The energy deficit is persistent, widespread and has intensified to the point of crisis...", lamented the chairperson of the EAC Council of Ministers, Ms Hafsa Mossi.
She said although the performance indicators depict a stable growth of the region's economies in terms of Gross Domestic Product (GDP), trade and expansion of investments, the region was still riddled with serious problems, among them the energy deficits.
Others include raging famine in northern Kenya and the Horn of Africa, piracy on the Indian Ocean waters of the East African coast and terrorist threats posed by neighbouring Somalia.
...called for the development of a serious commitment to early warning systems and effective response preparedness to address the energy and food crises in particular...these have worsened because of the most severe drought seen in decades.
The minister's call came at a time when the region's power crisis has worsened with Tanzania, Uganda and Kenya having already instituted power rationing to consumers. With much of the electricity being hydro, the shortage is attributed to lowering of water levels in rivers and dams.
The situation has been critical in Tanzania, where 12-hour power cuts have been in force for the last two months because of falling water levels at the hydro power dams operated by the state-run Tanzania Electric Supply Company (Tanesco) and shortage of fuel for thermal generation.
According to the World Bank, the per capita consumption of electricity for Tanzania and Uganda in 2007 was 68Kwh and 81 Kwh respectively, while Kenya's was 128Kwh in 2008.
Significant growth trends have been recorded in intra-regional and international trade which grew by between 20 and 30 per cent apart from Foreign Direct Investment (FDI) inflows which have increased from $683 million to $1.7 billion in the last five years.
The Citizen
July 26, 2011
1 How Walmart is a threat to South Africa
2 Uganda tea exporters urge Kenya to remove barriers
3 France grants Mauritania 45m euros to boost electricity sector
4 Czech Republic, Senegal to revive trade
5 What will Fairtrade gold mean for the jewelry industry?
6 UAE’s trade with South Africa up 21.7pc
2 Uganda tea exporters urge Kenya to remove barriers
3 France grants Mauritania 45m euros to boost electricity sector
4 Czech Republic, Senegal to revive trade
5 What will Fairtrade gold mean for the jewelry industry?
6 UAE’s trade with South Africa up 21.7pc
How Walmart is a threat to South Africa
by Jan de lange
The fuss over Economic Development Minister Ebrahim Patel's opposition to Walmart's entry into South Africa's retail market is a bit much. They are drawing attention away from the real issues that Walmart's entry holds for all of us.
...Professor Andries Bezuidenhout, an industrial sociologist at the University of Pretoria... says that some of the commentators on, and analysts of, the processes taking place at the Competition Tribunal expose shocking ignorance about who and what Walmart is. Some of them would perhaps do well to pick up and read one of the many books on Walmart.
Industrial sociologists such as Bezuidenhout have for years feared the day Walmart turns up in South Africa.
In the short term there will be benefits, especially in prices for the consumer. But in the medium to long term Walmart will be disastrous for the country.
Those low prices come at a huge cost. Walmart operates a three-sided business plan.
First, it is ruthless with its staff and will do anything to prevent its workers joining unions. Walmart has even written a manual for its managers in which underhand intimidation tactics are set out on how to prevent workers joining a union. A copy of this can be found on the website of a North American and European union federation, UNI Global Union, at www.uniglobalunion.org.
The second, probably most important part of its strategy, ...is to squeeze down supplier costs with ruthless bullying tactics. This policy is the most controversial aspect of the Walmart business plan, because it leads to large-scale deindustrialisation, for which industrialists have come up with an expression: exporting jobs.
The local manufacturing industry will virtually collapse in a heap...
The third leg of the Walmart plan is a corollary to the second: because its suppliers have to produce so cheaply, products are uniform. The ideal is to have a single producer of a particular product for the entire global market.
As a result there is no opportunity for diversity. Food production is standardised and, where possible, genetically modified. This has enormous environmental implications for a country like South Africa.
Apart from further stiffening up the entry conditions, there is precious little Patel can do. If he is to be blamed for anything, it's that he woke up too late.
full article...Fin 24
The fuss over Economic Development Minister Ebrahim Patel's opposition to Walmart's entry into South Africa's retail market is a bit much. They are drawing attention away from the real issues that Walmart's entry holds for all of us.
...Professor Andries Bezuidenhout, an industrial sociologist at the University of Pretoria... says that some of the commentators on, and analysts of, the processes taking place at the Competition Tribunal expose shocking ignorance about who and what Walmart is. Some of them would perhaps do well to pick up and read one of the many books on Walmart.
Industrial sociologists such as Bezuidenhout have for years feared the day Walmart turns up in South Africa.
In the short term there will be benefits, especially in prices for the consumer. But in the medium to long term Walmart will be disastrous for the country.
Those low prices come at a huge cost. Walmart operates a three-sided business plan.
First, it is ruthless with its staff and will do anything to prevent its workers joining unions. Walmart has even written a manual for its managers in which underhand intimidation tactics are set out on how to prevent workers joining a union. A copy of this can be found on the website of a North American and European union federation, UNI Global Union, at www.uniglobalunion.org.
The second, probably most important part of its strategy, ...is to squeeze down supplier costs with ruthless bullying tactics. This policy is the most controversial aspect of the Walmart business plan, because it leads to large-scale deindustrialisation, for which industrialists have come up with an expression: exporting jobs.
The local manufacturing industry will virtually collapse in a heap...
The third leg of the Walmart plan is a corollary to the second: because its suppliers have to produce so cheaply, products are uniform. The ideal is to have a single producer of a particular product for the entire global market.
As a result there is no opportunity for diversity. Food production is standardised and, where possible, genetically modified. This has enormous environmental implications for a country like South Africa.
Apart from further stiffening up the entry conditions, there is precious little Patel can do. If he is to be blamed for anything, it's that he woke up too late.
full article...Fin 24
Uganda tea exporters urge Kenya to remove barriers
by Githua Kihara
Ugandan tea exporters want Kenya to remove hurdles, including levies, that put their produce at a disadvantage at the Mombasa auction.
Uganda Tea Association chairman Vinod Vadera said delays at the Uganda-Kenya border post constitute non-tariff barriers that undermine quality and pricing of their product. He said delays arose from issuance of receipts, verification, and clearing, adding that the 40 plus roadblocks between Malaba and Mombasa caused further losses.
Importers of Ugandan tea also want a permit levy charged on shipments to the Mombasa auction scrapped to improve the competitiveness of the commodity.
Ugandan traders are required to obtain special plant import permits (PIP) from the Kenya Plant Health Inspectorate Services (Kephis) at a fee of Sh500 for every truck-load that enters the country through Malaba.
“Uganda exporters feel that re-export charges should be levied on those re-exporting from Kenya because at this stage Ugandans have sold the tea to another party,” Mr Vadera told delegates attending the African Tea Convention that ended in Mombasa last week.
Auction officials, however, said the quality of tea from Uganda and East Africa in general had been deteriorating. “One can see underlying problems such as overgrown leaves, tea not getting to the factory at the right time, and limited factory capacity which makes processing an issue.”
“Basically, this is what has been pulling the prices lower,” said Peter Kimanga, chairman of the East Africa Tea Trade Association (EATTA) in an interview with Public Ledger, a UK based publication.
Tea producing countries in East and Central Africa, with the exception of Malawi which runs its own auction, sell their product at the Mombasa auction. Over the years allegations of price fixing at the tea auction have persisted but have never been proven.
Uganda, the second biggest player at the auction after Kenya, has been experiencing labour problems. Private estates produce most of the country’s tea compared to only 30 per cent in Kenya. In 2010, the country produced 59 million kilos of tea, with 75 per cent produced by estates.
The declining quality of Uganda tea, Mr Kimanga said, had made large buyers such as Egypt more cautious. “They are shunning the tea, which has to go to Sudan or is blended with good types in order to get a home,” Mr Kimanga said.
Uganda has in the past said that the clearance procedure by Kephis was flawed.
Business Daily Africa
Ugandan tea exporters want Kenya to remove hurdles, including levies, that put their produce at a disadvantage at the Mombasa auction.
Uganda Tea Association chairman Vinod Vadera said delays at the Uganda-Kenya border post constitute non-tariff barriers that undermine quality and pricing of their product. He said delays arose from issuance of receipts, verification, and clearing, adding that the 40 plus roadblocks between Malaba and Mombasa caused further losses.
Importers of Ugandan tea also want a permit levy charged on shipments to the Mombasa auction scrapped to improve the competitiveness of the commodity.
Ugandan traders are required to obtain special plant import permits (PIP) from the Kenya Plant Health Inspectorate Services (Kephis) at a fee of Sh500 for every truck-load that enters the country through Malaba.
“Uganda exporters feel that re-export charges should be levied on those re-exporting from Kenya because at this stage Ugandans have sold the tea to another party,” Mr Vadera told delegates attending the African Tea Convention that ended in Mombasa last week.
Auction officials, however, said the quality of tea from Uganda and East Africa in general had been deteriorating. “One can see underlying problems such as overgrown leaves, tea not getting to the factory at the right time, and limited factory capacity which makes processing an issue.”
“Basically, this is what has been pulling the prices lower,” said Peter Kimanga, chairman of the East Africa Tea Trade Association (EATTA) in an interview with Public Ledger, a UK based publication.
Tea producing countries in East and Central Africa, with the exception of Malawi which runs its own auction, sell their product at the Mombasa auction. Over the years allegations of price fixing at the tea auction have persisted but have never been proven.
Uganda, the second biggest player at the auction after Kenya, has been experiencing labour problems. Private estates produce most of the country’s tea compared to only 30 per cent in Kenya. In 2010, the country produced 59 million kilos of tea, with 75 per cent produced by estates.
The declining quality of Uganda tea, Mr Kimanga said, had made large buyers such as Egypt more cautious. “They are shunning the tea, which has to go to Sudan or is blended with good types in order to get a home,” Mr Kimanga said.
Uganda has in the past said that the clearance procedure by Kephis was flawed.
Business Daily Africa
France grants Mauritania 45m euros to boost electricity sector
France has given Mauritania a loan of 45 euros million to support the African nation's ongoing restructuring of its electricity sector.
According to a statement, the loan will also help make the Mauritanian Electricity Company (SOMELEC) financially viable.
The 45 million euros will be made available in three installments of 15 million euros for the fiscal years 2011/2012.
The electricity sector in Mauritania has suffers serious difficulties for the past several years, exacerbated by a recent rise in oil prices.
African Manager
According to a statement, the loan will also help make the Mauritanian Electricity Company (SOMELEC) financially viable.
The 45 million euros will be made available in three installments of 15 million euros for the fiscal years 2011/2012.
The electricity sector in Mauritania has suffers serious difficulties for the past several years, exacerbated by a recent rise in oil prices.
African Manager
Czech Republic, Senegal to revive trade
Senegal and the Czech Republic have pledged to boost trade between them them, which stood at US$20 million between 2006 and 2009.
The economic cooperation between the two countries mainly concern the sectors of renewable energy and fuels, infrastructure and construction materials, food industries, fisheries, pharmaceutical and mining, environment and sanitation.
To encourage foreign investment, Senegal is touting the country's political stability and good governance, its geo-strategic position in Africa, particularly in the West African sub-region, and the conducive business environment it offers.
A Czech company, INNEKON, is expected to build a tramway in Dakar...the company will soon complete the feasibility studies.
Czech businessmen, who visited Dakar in May, have expressed their availability for the construction, in partnership with Senegalese firm SENELEC, of a 10-megawatt solar power plant in the Saloum islands (South-west Senegal ) and also showed interest in the realization of the Gorée memorial site.
Also, both countries have agreed to set up a business council for their private sectors to promote Czech investments in Senegal, among others.
African Manager
The economic cooperation between the two countries mainly concern the sectors of renewable energy and fuels, infrastructure and construction materials, food industries, fisheries, pharmaceutical and mining, environment and sanitation.
To encourage foreign investment, Senegal is touting the country's political stability and good governance, its geo-strategic position in Africa, particularly in the West African sub-region, and the conducive business environment it offers.
A Czech company, INNEKON, is expected to build a tramway in Dakar...the company will soon complete the feasibility studies.
Czech businessmen, who visited Dakar in May, have expressed their availability for the construction, in partnership with Senegalese firm SENELEC, of a 10-megawatt solar power plant in the Saloum islands (South-west Senegal ) and also showed interest in the realization of the Gorée memorial site.
Also, both countries have agreed to set up a business council for their private sectors to promote Czech investments in Senegal, among others.
African Manager
What will Fairtrade gold mean for the jewelry industry?
by Rachael Taylor
Valentine’s Day 2011 was a special for the industry..the world was introduced to Fairtrade gold.
The official certification is the culmination of years of campaigning, protesting and fighting for the rights of workers who bring to the surface something that is often a romantic gesture and something to treasure, but is often produced in ugly circumstances where human rights are neglected and the environment is mistreated.
Fairtrade goldmines will receive a minimum price for the gold they produce that is set at 95 percent of the London Bullion Market Association’s (LBMA) fixing at the FOB export point. They will also receive a Fairtrade premium, set at 10 percent of the LBMA fixing, that can be used to reinvest in the mine, but if the mine passes standards for Fairtrade Ecological gold by extracting the precious metal without the use of chemicals the premium will be increased to 15 percent of the LBMA fixing.
Adding a Fairtrade premium will increase the price of gold by between 10 percent to 15 percent, but the first wave of jewellers working with Fairtrade gold seem undaunted by the prospect of upselling their customers.
The issue of the supply is the most difficult aspect of Fairtrade gold. While many jewellers would like to switch over completely, the small amount available makes this impossible for most without drastically reducing output.
At present there is only 400 kilos of gold available that has been made available to the limited group of 20 designers that have been chosen to work with the metal in 2011.
full article...Professional Jeweller
Valentine’s Day 2011 was a special for the industry..the world was introduced to Fairtrade gold.
The official certification is the culmination of years of campaigning, protesting and fighting for the rights of workers who bring to the surface something that is often a romantic gesture and something to treasure, but is often produced in ugly circumstances where human rights are neglected and the environment is mistreated.
Fairtrade goldmines will receive a minimum price for the gold they produce that is set at 95 percent of the London Bullion Market Association’s (LBMA) fixing at the FOB export point. They will also receive a Fairtrade premium, set at 10 percent of the LBMA fixing, that can be used to reinvest in the mine, but if the mine passes standards for Fairtrade Ecological gold by extracting the precious metal without the use of chemicals the premium will be increased to 15 percent of the LBMA fixing.
Adding a Fairtrade premium will increase the price of gold by between 10 percent to 15 percent, but the first wave of jewellers working with Fairtrade gold seem undaunted by the prospect of upselling their customers.
The issue of the supply is the most difficult aspect of Fairtrade gold. While many jewellers would like to switch over completely, the small amount available makes this impossible for most without drastically reducing output.
At present there is only 400 kilos of gold available that has been made available to the limited group of 20 designers that have been chosen to work with the metal in 2011.
full article...Professional Jeweller
UAE’s trade with South Africa up 21.7pc
The UAE’s total exports to South Africa in 2010 reached $92.4 million, while imports were valued at $899.6 million, a report said. This represents a 21.7 per cent growth from $878.3 million in 2009.
Trade Arabia
Trade Arabia
July 22, 2011
1 Free trade is precisely what Africa needs; naysayers are wrong
2 Turkish group buys South Africa's Defy appliance brand
3 India-SA trade may touch $10 billion mark in 2011
4 Mauritius trade deficit widens
5 Tata widens its reach with South African vehicle assembly plant
6 Zimbabwe trade deficit with South Africa grows
7 Europe needs Africa. Who'd have thought it?
8 South Africa appeals Wal-Mart takeover
9 Botswana textile exports decline sharply
10 Kenya sets five tonnes of contraband ivory ablaze
2 Turkish group buys South Africa's Defy appliance brand
3 India-SA trade may touch $10 billion mark in 2011
4 Mauritius trade deficit widens
5 Tata widens its reach with South African vehicle assembly plant
6 Zimbabwe trade deficit with South Africa grows
7 Europe needs Africa. Who'd have thought it?
8 South Africa appeals Wal-Mart takeover
9 Botswana textile exports decline sharply
10 Kenya sets five tonnes of contraband ivory ablaze
Free trade is precisely what Africa needs; naysayers are wrong
by Tim Worstall
For some reason I’ve never really understood a certain sort of person gets all agitated if you suggest that free trade might solve some of Africa’s problems. Take this example:
African prosperity relies on a wholesale rejection of the western free trade model, which is unlikely to be the view of (UK prime minister) David Cameron or the delegates he’s travelling with in Africa.
What’s actually being proposed is free trade within Africa: in the same way that we’ve free trade within the US or within the European Union. Now I would argue that global free trade is the only logical or sensible thing to be doing: but leave that aside for a moment, what possible arguments are there against free trade within Africa?
No, me neither, can’t think of a single one. So why do people get the vapours over such suggestions?
In fact, there are very good reasons indeed why such an African free trade area should go ahead: one is the size of the African economies. Go back all the way to Adam Smith and the point of trade is the division and specialisation of labour that it allows. Which means that the size of the trade area is a good proxy for how much division, specialisation and thus benefit that you can get.
And the African economies are simply tiny. Here’s a list of countries by GDP. Here’s a list of towns in England by GVA, which is a close analogue of GDP. The economies of Rwanda and Burundi together are about the same size as the economy of Dudley and Sandwell: and you would look very askance at anyone who sugested there should be tariffs between those two towns. So why the two countries?
Similarly, the economies of Liberia and Guinea Bissau, added together, are smaller than the economy of Blackpool. Absolutely no one thinks there should be tariffs, trade barriers, down the middle of that town now, do they? Those two national economies are about the same size, put together, as the economy of Southend on Sea. Where should the barrier be? Between the South and the -end or the -end and the Sea?
I wonder if someone could explain this to me: why do people quite seriously propose policies for Africa which everyone would agree would be insane if we were to apply them to ourselves?
Forbes
For some reason I’ve never really understood a certain sort of person gets all agitated if you suggest that free trade might solve some of Africa’s problems. Take this example:
African prosperity relies on a wholesale rejection of the western free trade model, which is unlikely to be the view of (UK prime minister) David Cameron or the delegates he’s travelling with in Africa.
What’s actually being proposed is free trade within Africa: in the same way that we’ve free trade within the US or within the European Union. Now I would argue that global free trade is the only logical or sensible thing to be doing: but leave that aside for a moment, what possible arguments are there against free trade within Africa?
No, me neither, can’t think of a single one. So why do people get the vapours over such suggestions?
In fact, there are very good reasons indeed why such an African free trade area should go ahead: one is the size of the African economies. Go back all the way to Adam Smith and the point of trade is the division and specialisation of labour that it allows. Which means that the size of the trade area is a good proxy for how much division, specialisation and thus benefit that you can get.
And the African economies are simply tiny. Here’s a list of countries by GDP. Here’s a list of towns in England by GVA, which is a close analogue of GDP. The economies of Rwanda and Burundi together are about the same size as the economy of Dudley and Sandwell: and you would look very askance at anyone who sugested there should be tariffs between those two towns. So why the two countries?
Similarly, the economies of Liberia and Guinea Bissau, added together, are smaller than the economy of Blackpool. Absolutely no one thinks there should be tariffs, trade barriers, down the middle of that town now, do they? Those two national economies are about the same size, put together, as the economy of Southend on Sea. Where should the barrier be? Between the South and the -end or the -end and the Sea?
I wonder if someone could explain this to me: why do people quite seriously propose policies for Africa which everyone would agree would be insane if we were to apply them to ourselves?
Forbes
Turkish group buys South Africa's Defy appliance brand
by Edward West
Defy Appliances, manufacturer of the iconic South African-made home appliance brand, has been acquired by Turkey’s Arçelik Group for $327m.
The price includes $229m of equity value and a $95m shareholder loan from Franke Holdings, the Swiss-based group that was Defy’s former parent.
Arçelik, the third-largest appliance maker in Europe, is a subsidiary of Koç Holding.
Large multinationals are streaming into Africa in search of growth , which motivated Walmart’s takeover of Massmart . Companies like Defy are well placed to serve growing numbers of African consumers.
Defy has been operating in SA for almost a century. Based in Durban, its factory in the city makes freestanding stoves, built-in ovens and hobs, and tumble dryers. Another factory in Ezakheni (Ladysmith) makes chest freezers and fridges, and one in East London makes fridges.
Defy had sales of about R2,5bn last year. It employs more than 2600 people and exports to other African countries .
Regulatory approvals for the Arçelik deal are expected to be finalised in September.
Koç Group, the biggest conglomerate in Turkey, operates in the energy, automotive, consumer durables and finance sector, and is the only Turkish company in the Fortune Global 500 list.
Business Day
Defy Appliances, manufacturer of the iconic South African-made home appliance brand, has been acquired by Turkey’s Arçelik Group for $327m.
The price includes $229m of equity value and a $95m shareholder loan from Franke Holdings, the Swiss-based group that was Defy’s former parent.
Arçelik, the third-largest appliance maker in Europe, is a subsidiary of Koç Holding.
Large multinationals are streaming into Africa in search of growth , which motivated Walmart’s takeover of Massmart . Companies like Defy are well placed to serve growing numbers of African consumers.
Defy has been operating in SA for almost a century. Based in Durban, its factory in the city makes freestanding stoves, built-in ovens and hobs, and tumble dryers. Another factory in Ezakheni (Ladysmith) makes chest freezers and fridges, and one in East London makes fridges.
Defy had sales of about R2,5bn last year. It employs more than 2600 people and exports to other African countries .
Regulatory approvals for the Arçelik deal are expected to be finalised in September.
Koç Group, the biggest conglomerate in Turkey, operates in the energy, automotive, consumer durables and finance sector, and is the only Turkish company in the Fortune Global 500 list.
Business Day
India-SA trade may touch $10 billion mark in 2011
The trade between India and South Africa is expected to reach USD 10 billion in 2011, Indian High Commissioner Virendra Gupta said on July 21.
The trade volume between the countries was at USD 7.7 billion in 2009-10.
...Money Control
The trade volume between the countries was at USD 7.7 billion in 2009-10.
...Money Control
Mauritius trade deficit widens
Mauritius' trade deficit widened 24.4 percent year-on-year in May to 6.9 billion rupees, due mainly to higher costs of fuel, official data showed on July 20.
Year-on-year import costs rose 13 percent to 12.6 billion rupees driven by mineral fuels, lubricants and related material prices, which rose to 3.4 billion rupees from 2 billion a year earlier.
Exports increased 1.9 percent to 5.7 billion rupees, on the back of a rise in revenues from exports of manufactured goods.
Britain was the main buyer of goods from Mauritius in May accounting for 24.2 percent of its exports, while India supplied 29.9 percent of the island's imports.
The statistics office said in June it expected the trade deficit -- which grew in 2010 as well -- would be around 83 billion rupees this year, representing a 24.8 percent rise from 2010's trade deficit of 66.5 billion rupees.
Reuters
Year-on-year import costs rose 13 percent to 12.6 billion rupees driven by mineral fuels, lubricants and related material prices, which rose to 3.4 billion rupees from 2 billion a year earlier.
Exports increased 1.9 percent to 5.7 billion rupees, on the back of a rise in revenues from exports of manufactured goods.
Britain was the main buyer of goods from Mauritius in May accounting for 24.2 percent of its exports, while India supplied 29.9 percent of the island's imports.
The statistics office said in June it expected the trade deficit -- which grew in 2010 as well -- would be around 83 billion rupees this year, representing a 24.8 percent rise from 2010's trade deficit of 66.5 billion rupees.
Reuters
Tata widens its reach with South African vehicle assembly plant
by Alexander Parker
India conglomerate Tata will announce the opening of a vehicle assembly plant in Rosslyn, outside Pretoria. Tata Africa Holdings has been playing its cards close to its chest, but it is likely that the company will announce a commercial vehicle operation, with the aim of targeting the local and other African markets.
Tata, founded in 1868, has holdings in hotels and mining operations, in steel production and in technology and pharmaceutical companies. Tata companies specialise in paint production, air charters, chemicals and coffee, tea and tiles, satellite television and insurance, in cellphones and fixed- line communications.
The group is also into retail and shipping, in management consulting and bone-china ceramics, financial services and consumer electronics, and in construction equipment and air conditioning and refrigeration, in salt and in solar power, and in water purification and electricity generation.
Gavin Maile, head of automotive and pharmaceutical markets at KPMG, says the Tata Group is a "massive company" that turned over more than $100bn last year.
..the company already assembles bus bodies in South Africa.
...Business Day
India conglomerate Tata will announce the opening of a vehicle assembly plant in Rosslyn, outside Pretoria. Tata Africa Holdings has been playing its cards close to its chest, but it is likely that the company will announce a commercial vehicle operation, with the aim of targeting the local and other African markets.
Tata, founded in 1868, has holdings in hotels and mining operations, in steel production and in technology and pharmaceutical companies. Tata companies specialise in paint production, air charters, chemicals and coffee, tea and tiles, satellite television and insurance, in cellphones and fixed- line communications.
The group is also into retail and shipping, in management consulting and bone-china ceramics, financial services and consumer electronics, and in construction equipment and air conditioning and refrigeration, in salt and in solar power, and in water purification and electricity generation.
Gavin Maile, head of automotive and pharmaceutical markets at KPMG, says the Tata Group is a "massive company" that turned over more than $100bn last year.
..the company already assembles bus bodies in South Africa.
...Business Day
Zimbabwe trade deficit with South Africa grows
by Tawanda Musarurwa
Zimbabwe's trade deficit with South Africa increased more than seven-fold over the past four years to hit R13,6 billion (about US$2 billion) in 2010, a report by the Ministry of Economic Planning and Investment Promotion shows.
In 2010 the country exported goods worth R1,3 billion to South Africa, while importing R15,1 billion worth of goods from the southern neighbour. Zimbabwe in 2007 imported R1,9 billion worth of goods from South
Africa, and the deficit between the two trade partners has widened to date to around R13,6 billion. This factor has been accentuated by the fact that Zimbabwe's exports to SA have largely declined over the last few years.
Official statistics show that South Africa, which used to account for 22 percent of Zimbabwe's exports in 2005, declined to 14 percent by the end of last year. On the other hand, the SA market is the Zimbabwean industry's main supplier of most key requirements from retail products, raw materials and loans.
Meanwhile, Zambia continues to top Zimbabwe's export destinations in the Southern African Development Community region at around 30 percent of the country's overall export volumes. The data also show that South Africa is currently in fourth position (down from second) in terms of Zimbabwe's export destinations in the Sadc region.
Mozambique is emerging as a preferred export destination, with Zimbabwe's export share in that market rising from five percent in 2009 to 11 percent this year.
Zimbabwe's export trends have remained constant over the last five years and a recent Confederation of Zimbabwe Industries survey notes that as a ratio to the Gross Domestic Product, the share of exports has, however, increased from 30 percent of GDP in 2005 to 33 percent of GDP last year.
However, of late, China has become a more important trade partner but its market share is still modest, with 4 percent of imports and 3,4 percent of exports.
The Herald
Zimbabwe's trade deficit with South Africa increased more than seven-fold over the past four years to hit R13,6 billion (about US$2 billion) in 2010, a report by the Ministry of Economic Planning and Investment Promotion shows.
In 2010 the country exported goods worth R1,3 billion to South Africa, while importing R15,1 billion worth of goods from the southern neighbour. Zimbabwe in 2007 imported R1,9 billion worth of goods from South
Africa, and the deficit between the two trade partners has widened to date to around R13,6 billion. This factor has been accentuated by the fact that Zimbabwe's exports to SA have largely declined over the last few years.
Official statistics show that South Africa, which used to account for 22 percent of Zimbabwe's exports in 2005, declined to 14 percent by the end of last year. On the other hand, the SA market is the Zimbabwean industry's main supplier of most key requirements from retail products, raw materials and loans.
Meanwhile, Zambia continues to top Zimbabwe's export destinations in the Southern African Development Community region at around 30 percent of the country's overall export volumes. The data also show that South Africa is currently in fourth position (down from second) in terms of Zimbabwe's export destinations in the Sadc region.
Mozambique is emerging as a preferred export destination, with Zimbabwe's export share in that market rising from five percent in 2009 to 11 percent this year.
Zimbabwe's export trends have remained constant over the last five years and a recent Confederation of Zimbabwe Industries survey notes that as a ratio to the Gross Domestic Product, the share of exports has, however, increased from 30 percent of GDP in 2005 to 33 percent of GDP last year.
However, of late, China has become a more important trade partner but its market share is still modest, with 4 percent of imports and 3,4 percent of exports.
The Herald
Europe needs Africa. Who'd have thought it?
by Knox Chitiyo
The ongoing media feeding frenzy over the News International hacking scandal has obscured the significance of David Cameron's two-day visit to Africa. Wedged as it was between the resignation of News International chief executive Rebekah Brooks on Friday and a Commons grilling of Rupert and James Murdoch and Brooks, it was almost inevitable that news on Africa would be buried by events.
This is unfortunate, because the UK-Africa relationship is evolving. The post-colonial stereotype held to the notion that the UK's relationship with Africa was about handouts and hoopla. If ever this was the case, things have moved a long way since then. Yes, Africa still receives aid from the UK, but the relationship is far more complex than that, both from the British and African perspective.
Why, in an age of austerity, would the UK be keen to engage with Africa? And why is it the Conservatives who are stealing a march on their Lib Dem partners in crafting a new UK-Africa policy?
The answer to both questions is that the UK – and the Conservatives – want and need to engage with Africa. There is no doubt that large swaths of the world's second-largest continent are still blighted by conflict and insecurity, but it is also true that, while Africa – particularly South Africa – was buffeted by the 2008 financial recession, it was spared the financial calamities that hit Europe and the US and which even now threaten the eurozone.
While Europe's economies bottomed out, Africa's economies on average grew 3% from 2008-9 and have grown an average of 5% since. Africa, it is true, still has the world's highest overall percentage of poverty, but it also has the world's fastest-growing economies and fastest-growing middle class. With Africa now promoting local and foreign direct investment, the continent is becoming a global investment and trade haven and the UK, keen to maintain its status as a global player, needs to be part of the process.
Although there are still ongoing disputes over the UK's colonial legacy in Africa, particularly concerning Britain's brutal treatment of the Kikuyu and suspected rebels during the Mau Mau uprising, generally speaking, there is not an ingrained anti-British attitude in Africa such as in parts of Pakistan or Afghanistan, for instance. There is thus a receptivity in Africa to the idea of partnering the UK in commerce, diplomacy and security – as long as it is an equal partnership.
The Conservatives' "trade and aid" agenda builds on the work done by former prime ministers Tony Blair and Gordon Brown in promoting aid for Africa and pushing for more African countries to have seats at the global top table such as at the G20. But Cameron's visit to Africa was about promoting the "trade, rather than aid" agenda.
Africa and the global community know that the continent's future development in the 21st century cannot be based on aid dependency. Aid will continue to play a part, but it is trade and investment that will buttress Africa's economic architecture. Britain cannot compete with China in building infrastructure support for Africa but the UK and Europe can partner the continent in reducing international economic bureaucracies, increasing cross-border trade and building an African common market.
For now, though, aid still remains at the heart of the UK's engagement with Africa, which leads to a perennial problem of perception: when it comes to the west and Africa, it is the familiar aid and disaster relief narrative that holds sway in the public and media imagination.
Here are two simple suggestions for the UK to move beyond the aid/trade conundrum: first, give more publicity to African efforts to assist in famine relief. Media appeals for relief efforts are important but they also peddle the notion that only white-led international organisations can save the stricken. This ignores the fact that the nations hosting the refugees and regional and local NGOs also play a critical role in providing or assisting relief efforts. Their efforts should be publicised to rebut the "only Europe can save Africa" stereotype.
Second, the UK needs an open and honest debate about the government's aid policy. As an African, I am glad that the UK remains committed to aid for Africa. But the UK government is missing a trick – if we are to avoid a huge backlash further down the line, the public needs to understand why the UK is not making the huge cuts in its aid budget which it is making in other areas, such as defence and public services.
The UK's engagement with Africa is often expressed in terms of a "new scramble for Africa," but this misses out what Africa wants. Certainly Africa wants partnerships with the west, but these need to be equal partnerships that also serve Africa's strategic vision. For Africa and Europe is simply one among a range of partnerships, which also include Asia and Latin America.
There is another reason why Africa is keen to partner the west. The continent is embarking on a period of internationalism in which it aims to be a key player in the global economic, financial, diplomatic and security architecture. To do this it needs to partner the established players such as the UK. So while the talk is of a new scramble for Africa, for Africans the real issue is Africa's scramble for the world.
We are dealing with a new great game; at first glance it is about the UK and the world's role in Africa. But look again: for a new generation of Africans it is actually about pan-African empowerment. If the UK and Europe are to avoid a second wave of recession, they will need Africa's help as a trade and investment partner. Europe needs Africa. Who'd have thought it?
The Guardian
The ongoing media feeding frenzy over the News International hacking scandal has obscured the significance of David Cameron's two-day visit to Africa. Wedged as it was between the resignation of News International chief executive Rebekah Brooks on Friday and a Commons grilling of Rupert and James Murdoch and Brooks, it was almost inevitable that news on Africa would be buried by events.
This is unfortunate, because the UK-Africa relationship is evolving. The post-colonial stereotype held to the notion that the UK's relationship with Africa was about handouts and hoopla. If ever this was the case, things have moved a long way since then. Yes, Africa still receives aid from the UK, but the relationship is far more complex than that, both from the British and African perspective.
Why, in an age of austerity, would the UK be keen to engage with Africa? And why is it the Conservatives who are stealing a march on their Lib Dem partners in crafting a new UK-Africa policy?
The answer to both questions is that the UK – and the Conservatives – want and need to engage with Africa. There is no doubt that large swaths of the world's second-largest continent are still blighted by conflict and insecurity, but it is also true that, while Africa – particularly South Africa – was buffeted by the 2008 financial recession, it was spared the financial calamities that hit Europe and the US and which even now threaten the eurozone.
While Europe's economies bottomed out, Africa's economies on average grew 3% from 2008-9 and have grown an average of 5% since. Africa, it is true, still has the world's highest overall percentage of poverty, but it also has the world's fastest-growing economies and fastest-growing middle class. With Africa now promoting local and foreign direct investment, the continent is becoming a global investment and trade haven and the UK, keen to maintain its status as a global player, needs to be part of the process.
Although there are still ongoing disputes over the UK's colonial legacy in Africa, particularly concerning Britain's brutal treatment of the Kikuyu and suspected rebels during the Mau Mau uprising, generally speaking, there is not an ingrained anti-British attitude in Africa such as in parts of Pakistan or Afghanistan, for instance. There is thus a receptivity in Africa to the idea of partnering the UK in commerce, diplomacy and security – as long as it is an equal partnership.
The Conservatives' "trade and aid" agenda builds on the work done by former prime ministers Tony Blair and Gordon Brown in promoting aid for Africa and pushing for more African countries to have seats at the global top table such as at the G20. But Cameron's visit to Africa was about promoting the "trade, rather than aid" agenda.
Africa and the global community know that the continent's future development in the 21st century cannot be based on aid dependency. Aid will continue to play a part, but it is trade and investment that will buttress Africa's economic architecture. Britain cannot compete with China in building infrastructure support for Africa but the UK and Europe can partner the continent in reducing international economic bureaucracies, increasing cross-border trade and building an African common market.
For now, though, aid still remains at the heart of the UK's engagement with Africa, which leads to a perennial problem of perception: when it comes to the west and Africa, it is the familiar aid and disaster relief narrative that holds sway in the public and media imagination.
Here are two simple suggestions for the UK to move beyond the aid/trade conundrum: first, give more publicity to African efforts to assist in famine relief. Media appeals for relief efforts are important but they also peddle the notion that only white-led international organisations can save the stricken. This ignores the fact that the nations hosting the refugees and regional and local NGOs also play a critical role in providing or assisting relief efforts. Their efforts should be publicised to rebut the "only Europe can save Africa" stereotype.
Second, the UK needs an open and honest debate about the government's aid policy. As an African, I am glad that the UK remains committed to aid for Africa. But the UK government is missing a trick – if we are to avoid a huge backlash further down the line, the public needs to understand why the UK is not making the huge cuts in its aid budget which it is making in other areas, such as defence and public services.
The UK's engagement with Africa is often expressed in terms of a "new scramble for Africa," but this misses out what Africa wants. Certainly Africa wants partnerships with the west, but these need to be equal partnerships that also serve Africa's strategic vision. For Africa and Europe is simply one among a range of partnerships, which also include Asia and Latin America.
There is another reason why Africa is keen to partner the west. The continent is embarking on a period of internationalism in which it aims to be a key player in the global economic, financial, diplomatic and security architecture. To do this it needs to partner the established players such as the UK. So while the talk is of a new scramble for Africa, for Africans the real issue is Africa's scramble for the world.
We are dealing with a new great game; at first glance it is about the UK and the world's role in Africa. But look again: for a new generation of Africans it is actually about pan-African empowerment. If the UK and Europe are to avoid a second wave of recession, they will need Africa's help as a trade and investment partner. Europe needs Africa. Who'd have thought it?
The Guardian
South Africa appeals Wal-Mart takeover
Three South African government ministries have appealed Wal-Mart's $2.4-billion takeover of the Massmart group, which was approved in May by the competition authority, court papers showed June 21.
The 68-page objection wants the Competition Appeal Court to "review and set aside the merger approval" which gave the world's largest retailer its first foothold in Africa.
The ministries of trade, economic development and agriculture filed the appeal on the $2.4 billion (1.7 billion euro) takeover, which was finalised on June 20. They argued that the tribunal's approval of the merger and its conditions were unreasonable and that the tribunal failed to allow a full airing of concerns about the deal.
Government and unions had wanted the competition tribunal to require Wal-Mart to purchase a portion of its goods locally, fearing a flood of cheap imports would result in job losses at local manufacturers.
Wal-Mart was given the go-ahead to buy a 51 percent stake in Massmart, provided the US retailer does not lay off any workers for two years.
Massmart runs nine wholesale and retail chains with 288 stores in 14 African countries.
The appeal is the second against the deal following an objection filed in June by the South Africa Commercial, Catering and Allied Workers Union.
AFP
The 68-page objection wants the Competition Appeal Court to "review and set aside the merger approval" which gave the world's largest retailer its first foothold in Africa.
The ministries of trade, economic development and agriculture filed the appeal on the $2.4 billion (1.7 billion euro) takeover, which was finalised on June 20. They argued that the tribunal's approval of the merger and its conditions were unreasonable and that the tribunal failed to allow a full airing of concerns about the deal.
Government and unions had wanted the competition tribunal to require Wal-Mart to purchase a portion of its goods locally, fearing a flood of cheap imports would result in job losses at local manufacturers.
Wal-Mart was given the go-ahead to buy a 51 percent stake in Massmart, provided the US retailer does not lay off any workers for two years.
Massmart runs nine wholesale and retail chains with 288 stores in 14 African countries.
The appeal is the second against the deal following an objection filed in June by the South Africa Commercial, Catering and Allied Workers Union.
AFP
Botswana textile exports decline sharply
by Tendani Portia Nkani
In the past year, Botswana’s textile exports decline sharply by 21.8%, whilst imports grew by 13.3%, despite Botswana industry being the main beneficiary to the African Growth and Opportunity Act (AGOA).
The Textile and Clothing Sector has contributed immensely to increased clothing and apparel exports to the US during the period 2001-2008. As a result, Botswana’s exports to the United States of America under AGOA rose from about US$2.2 million in 2001 to about US$16.6million in 2008. But today, only one company, Carapparel, is currently exporting garments to the US, out of the initial thirteen companies.
The textile and clothing industry is a strategic non-extractive industry in Botswana as it remains the largest employer in the manufacturing sector, with over 80% women in the textile sector. Nevertheless, the textile and clothing industry faces many challenges.
According to the Central Statistics Offices’ balance of trade services, ,textile producers continued to experience difficulties, with exports declining from P1.4 billion in 2009 to P1.1 billion in 2010.
Imports for 2010 are estimated at P32.9 billion, an increase of 13.3 percent from P28.6 billion in 2009.
Meanwhile, this years’ 10th AGOA annual forum was held in Lusaka, Zambia recently, they agreed on some recommendations as measures to improve its utilisation by member countries for future prospects.
Kediretswe Pule, Director of Public Relations at Ministry of Trade and Industry, who revealed that the forum “had agreed, amongst other recommendations, that AGOA member states should have one voice that will convince the United States to extend AGOA beyond 2015 and for the third-country fabric provision to run concurrently with AGOA after its expiration in 2012.”
AGOA member States are expected to urge the United States to prioritise capacity building, especially in infrastructure development, sanitary and phyto-sanitary laboratories and private sector support to enable African countries to take advantage of the market access AGOA offers.
AGOA member States urged the US to consider a joint monitoring and evaluation mechanism, including the production of joint reports at the end of every AGOA Ministerial Forum.
The US was also asked to relax its restrictive rules of origin in order to promote diversification of exports into the country and also support regional integration through regional value chains. The meeting recommended that US expand the AGOA products list in order to further help diversify non-oil exports.AGOA was enacted in by the US Congress in 2000 as a trade preference programme, mainly aimed at stimulating economic growth and help integrate Africa into the global economy. The AGOA Act ensures market access for products from Africa by granting them duty-free quota-free entry into the US market.
The Botswana Gazette
In the past year, Botswana’s textile exports decline sharply by 21.8%, whilst imports grew by 13.3%, despite Botswana industry being the main beneficiary to the African Growth and Opportunity Act (AGOA).
The Textile and Clothing Sector has contributed immensely to increased clothing and apparel exports to the US during the period 2001-2008. As a result, Botswana’s exports to the United States of America under AGOA rose from about US$2.2 million in 2001 to about US$16.6million in 2008. But today, only one company, Carapparel, is currently exporting garments to the US, out of the initial thirteen companies.
The textile and clothing industry is a strategic non-extractive industry in Botswana as it remains the largest employer in the manufacturing sector, with over 80% women in the textile sector. Nevertheless, the textile and clothing industry faces many challenges.
According to the Central Statistics Offices’ balance of trade services, ,textile producers continued to experience difficulties, with exports declining from P1.4 billion in 2009 to P1.1 billion in 2010.
Imports for 2010 are estimated at P32.9 billion, an increase of 13.3 percent from P28.6 billion in 2009.
Meanwhile, this years’ 10th AGOA annual forum was held in Lusaka, Zambia recently, they agreed on some recommendations as measures to improve its utilisation by member countries for future prospects.
Kediretswe Pule, Director of Public Relations at Ministry of Trade and Industry, who revealed that the forum “had agreed, amongst other recommendations, that AGOA member states should have one voice that will convince the United States to extend AGOA beyond 2015 and for the third-country fabric provision to run concurrently with AGOA after its expiration in 2012.”
AGOA member States are expected to urge the United States to prioritise capacity building, especially in infrastructure development, sanitary and phyto-sanitary laboratories and private sector support to enable African countries to take advantage of the market access AGOA offers.
AGOA member States urged the US to consider a joint monitoring and evaluation mechanism, including the production of joint reports at the end of every AGOA Ministerial Forum.
The US was also asked to relax its restrictive rules of origin in order to promote diversification of exports into the country and also support regional integration through regional value chains. The meeting recommended that US expand the AGOA products list in order to further help diversify non-oil exports.AGOA was enacted in by the US Congress in 2000 as a trade preference programme, mainly aimed at stimulating economic growth and help integrate Africa into the global economy. The AGOA Act ensures market access for products from Africa by granting them duty-free quota-free entry into the US market.
The Botswana Gazette
Kenya sets five tonnes of contraband ivory ablaze
To raise public awareness of the impact of poaching on Africa's elephants, the Lusaka Agreement Task Force and the Government of Kenya burned five tonnes of seized ivory in Kenya's Tsavo National Park on July 20.
Lusaka Agreement Task Force and Kenya Wildlife Service officials Tuesday built an elaborate pile of elephant tusks with kerosene jets and a grill to fuel the fire.
Most of the contraband ivory burned - 335 tusks and 41,553 ivory signature stamps called hankos - was seized in Singapore in June 2002. DNA profiling to determine its probable origins identified the ivory as originating with elephants from Zambia, Malawi and Tanzania. It was exported from Lilongwe, Malawi.
Elephants are listed as Endangered by the International Union for the Conservation of Nature. International trade in elephants or their parts is prohibited under the UN's Convention on International Trade in Endangered Species, CITES.
The treaty regulations allow the destruction of seized ivory since it has no legal commercial value. However, the price of illegal raw ivory is currently estimated to be in excess of $1,500 per kilo.
Kenya is hosting the event as a party to the Lusaka Agreement on Co-operative Enforcement Operations Directed at Illegal Trade in Wild Fauna and Flora, a regional inter-governmental agreement on wildlife conservation that has established a Nairobi-based agency for fighting wildlife crime.
The burning of contraband ivory is the first regional exercise of this kind and the third in Africa after Kenya's in 1989 and Zambia's in 1992.
ENS Newswire
Lusaka Agreement Task Force and Kenya Wildlife Service officials Tuesday built an elaborate pile of elephant tusks with kerosene jets and a grill to fuel the fire.
Most of the contraband ivory burned - 335 tusks and 41,553 ivory signature stamps called hankos - was seized in Singapore in June 2002. DNA profiling to determine its probable origins identified the ivory as originating with elephants from Zambia, Malawi and Tanzania. It was exported from Lilongwe, Malawi.
Elephants are listed as Endangered by the International Union for the Conservation of Nature. International trade in elephants or their parts is prohibited under the UN's Convention on International Trade in Endangered Species, CITES.
The treaty regulations allow the destruction of seized ivory since it has no legal commercial value. However, the price of illegal raw ivory is currently estimated to be in excess of $1,500 per kilo.
Kenya is hosting the event as a party to the Lusaka Agreement on Co-operative Enforcement Operations Directed at Illegal Trade in Wild Fauna and Flora, a regional inter-governmental agreement on wildlife conservation that has established a Nairobi-based agency for fighting wildlife crime.
The burning of contraband ivory is the first regional exercise of this kind and the third in Africa after Kenya's in 1989 and Zambia's in 1992.
ENS Newswire
July 19, 2011
African prosperity relies on rejection of the western free trade model
On his trip to South Africa yesterday, David Cameron talked of the need to go beyond debt cancellation and aid "to make African free trade the common purpose of the continent."
He lamented there has never once been "a march or a concert to call for … an African free trade area". He pointed to the need for more inter-African trade to facilitate the growth that would mean "businesses growing, new jobs on offer, families on the up, living standards transformed."
Cameron's vision is far from "fresh", and is certainly not a radical extension of the anti-poverty agenda that led to a movement of millions of people calling for debt justice and the meeting of long overdue aid commitments. He repeats an orthodoxy that says the interests of the corporate delegates accompanying Cameron are the same as the interests of ordinary people across the African continent. Nearly three years into a global crisis caused by unbridled financial freedom, this orthodoxy should be consigned to the dustbin of history.
The debt and trade justice movements have never been simply arguments for more aid, but for a radical restructuring of the global economy and financial sector. They are all about enabling Africa to use its own resources for its own benefit – to genuinely enable countries to outgrow aid dependence.
The problem is that this agenda doesn't fit with Cameron's "free trade" ideology, or the interests of his delegation, which includes companies such as Barclays, G4S, Vodafone, Diageo and PricewaterhouseCoopers. So the premise of Cameron's article is to make it appear that there is only one possible way forward – free trade – and all right-thinking people who care about poverty and inequality must support this agenda.
But trade on the wrong terms has been of no benefit to Africa – rather it has ripped open markets, destroyed infant industries, undermined control of food production, and exploited resources. It is the opposite of what Africa needs.
Multinational companies operating in Africa are nothing new. According to Global Financial Integrity, between 1970 and 2008, Africa lost $850bn to $1.8tn in "illicit financial outflows," most importantly forgone tax paid by corporations. Such a loss of capital led to the need for countries to borrow, in turn leading to a debt crisis during which capital poured out of the continent and into the coffers of rich countries.
Today, the debt of sub-Saharan Africa still stands at nearly $200bn. Aid now accounts for $47bn, though debt repayments still cost $18bn every year, while much of the aid itself comes in the form of new loans or is simply handed to western corporations working in the country concerned.
Cameron says economic growth "will lift tens of millions out of poverty in the long run" but, again, it depends what sort of growth. The New Economics Foundation has shown that in the 1990s, for every $100 worth of growth in the world's income per person, just $0.60 contributed to reducing poverty for those living on less than a dollar a day.
Cameron is right that the idea of more inter-African trade is vitally important. But for years, inter-African trade has been discouraged by rich countries and a global trading system that uses Africa as a source of primary commodities for growth elsewhere. For example, European Union attempts to foist Economic Partnership Agreements on African countries give preferential access to European companies, thereby thwarting African attempts at integration. There are clear reasons why "for much of the continent it is easier to trade with Europe or America than it is to trade with a neighbour," and it has little to do with "red tape."
Africa has much to learn from South Korea, the model Cameron rather surprisingly raises. South Korea used a range of government interventions that are heretical in the free trade religion.
African prosperity relies on a wholesale rejection of the western "free trade" model. It means protecting industries, developing alternative and complementary means of trading, control of food production and banking, progressive tax structures, controlled use of savings, and strong regulation to ensure trade and investment really benefits people. This is unlikely to be the view of most of Cameron's corporate partners.
The Guardian
He lamented there has never once been "a march or a concert to call for … an African free trade area". He pointed to the need for more inter-African trade to facilitate the growth that would mean "businesses growing, new jobs on offer, families on the up, living standards transformed."
Cameron's vision is far from "fresh", and is certainly not a radical extension of the anti-poverty agenda that led to a movement of millions of people calling for debt justice and the meeting of long overdue aid commitments. He repeats an orthodoxy that says the interests of the corporate delegates accompanying Cameron are the same as the interests of ordinary people across the African continent. Nearly three years into a global crisis caused by unbridled financial freedom, this orthodoxy should be consigned to the dustbin of history.
The debt and trade justice movements have never been simply arguments for more aid, but for a radical restructuring of the global economy and financial sector. They are all about enabling Africa to use its own resources for its own benefit – to genuinely enable countries to outgrow aid dependence.
The problem is that this agenda doesn't fit with Cameron's "free trade" ideology, or the interests of his delegation, which includes companies such as Barclays, G4S, Vodafone, Diageo and PricewaterhouseCoopers. So the premise of Cameron's article is to make it appear that there is only one possible way forward – free trade – and all right-thinking people who care about poverty and inequality must support this agenda.
But trade on the wrong terms has been of no benefit to Africa – rather it has ripped open markets, destroyed infant industries, undermined control of food production, and exploited resources. It is the opposite of what Africa needs.
Multinational companies operating in Africa are nothing new. According to Global Financial Integrity, between 1970 and 2008, Africa lost $850bn to $1.8tn in "illicit financial outflows," most importantly forgone tax paid by corporations. Such a loss of capital led to the need for countries to borrow, in turn leading to a debt crisis during which capital poured out of the continent and into the coffers of rich countries.
Today, the debt of sub-Saharan Africa still stands at nearly $200bn. Aid now accounts for $47bn, though debt repayments still cost $18bn every year, while much of the aid itself comes in the form of new loans or is simply handed to western corporations working in the country concerned.
Cameron says economic growth "will lift tens of millions out of poverty in the long run" but, again, it depends what sort of growth. The New Economics Foundation has shown that in the 1990s, for every $100 worth of growth in the world's income per person, just $0.60 contributed to reducing poverty for those living on less than a dollar a day.
Cameron is right that the idea of more inter-African trade is vitally important. But for years, inter-African trade has been discouraged by rich countries and a global trading system that uses Africa as a source of primary commodities for growth elsewhere. For example, European Union attempts to foist Economic Partnership Agreements on African countries give preferential access to European companies, thereby thwarting African attempts at integration. There are clear reasons why "for much of the continent it is easier to trade with Europe or America than it is to trade with a neighbour," and it has little to do with "red tape."
Africa has much to learn from South Korea, the model Cameron rather surprisingly raises. South Korea used a range of government interventions that are heretical in the free trade religion.
African prosperity relies on a wholesale rejection of the western "free trade" model. It means protecting industries, developing alternative and complementary means of trading, control of food production and banking, progressive tax structures, controlled use of savings, and strong regulation to ensure trade and investment really benefits people. This is unlikely to be the view of most of Cameron's corporate partners.
The Guardian
Nigeria's massive food import bill
Nigeria imported foods worth trillions of naira between 2007 and 2010, according to Akinwunmi Adesina, the new minister of agriculture.
Mr Adesina added that over N635 billion was spent to import wheat, N365 billion on rice, N217 billion on sugar, and N97 billion on fish importation. He noted that in spite of the volume of food importation, the natural and agricultural endowment of the country, its productivity had been "very low."
The new minister, however, said that Nigeria was not lacking in the production of cassava, having been adjudged the largest producer of the commodity in the world with 45 million tonnes.
Mr Adesina regretted that in spite of this advantage in the production of the commodity, the nation accounted for zero per cent of global value added. On the other hand, Thailand, that accounted for 10 per cent of cassava production, had 80 per cent added value, he observed.
He described the Nigeria status quo in agriculture as not acceptable, and called for urgent attention to be given to the agriculture sector.
"Nigeria accounted for over 60 per cent of the global supply of palm oil and 35 per cent of groundnut. It also accounted for 23 per cent of groundnut oil and 15 per cent of cocoa, while farmers from north to south made money from their sweat. The quality of lives improved, children went to good schools, our nation was food self-sufficient, farmers fed the nation. But alas. Today, the glory has been lost," he added.
NEXT
Mr Adesina added that over N635 billion was spent to import wheat, N365 billion on rice, N217 billion on sugar, and N97 billion on fish importation. He noted that in spite of the volume of food importation, the natural and agricultural endowment of the country, its productivity had been "very low."
The new minister, however, said that Nigeria was not lacking in the production of cassava, having been adjudged the largest producer of the commodity in the world with 45 million tonnes.
Mr Adesina regretted that in spite of this advantage in the production of the commodity, the nation accounted for zero per cent of global value added. On the other hand, Thailand, that accounted for 10 per cent of cassava production, had 80 per cent added value, he observed.
He described the Nigeria status quo in agriculture as not acceptable, and called for urgent attention to be given to the agriculture sector.
"Nigeria accounted for over 60 per cent of the global supply of palm oil and 35 per cent of groundnut. It also accounted for 23 per cent of groundnut oil and 15 per cent of cocoa, while farmers from north to south made money from their sweat. The quality of lives improved, children went to good schools, our nation was food self-sufficient, farmers fed the nation. But alas. Today, the glory has been lost," he added.
NEXT
South African arms manufacturer expands exports
by Nicky Smith
Denel, the South African state-owned arms and aeronautics company, aims to secure around R23bn in contracts over the next three years, Zwelakhe Ntshepe, Denel’s group executive for business development and corporate affairs said.
The total order book "including confirmed contracts already exceeds R21bn," Denel said in a statement.
While Denel’s primary focus is to supply defence technology and equipment to the SANDF the group has been forced to seek out new markets for its products to ensure its financial survival because of the cuts in military spending by the South African state.
This has led to a "more concerted focus on export markets," Ntshepe said, with "79% of the new business prospects are coming from international clients."
Business Day
Denel, the South African state-owned arms and aeronautics company, aims to secure around R23bn in contracts over the next three years, Zwelakhe Ntshepe, Denel’s group executive for business development and corporate affairs said.
The total order book "including confirmed contracts already exceeds R21bn," Denel said in a statement.
While Denel’s primary focus is to supply defence technology and equipment to the SANDF the group has been forced to seek out new markets for its products to ensure its financial survival because of the cuts in military spending by the South African state.
This has led to a "more concerted focus on export markets," Ntshepe said, with "79% of the new business prospects are coming from international clients."
Business Day
South Africa, Tanzania boost trade relations
South Africa and Tanzania have strong economic links, with SA being the third largest exporter to Tanzania, with a market share of 9.63 percent.
However, the trade balance between the two countries shows South Africa's exports to Tanzania went from R3.5 billion in 2009 to R3.1 billion in 2010.
On the other hand, the picture shows imports from Tanzania growing by almost 100 percent from R236 million in 2009 to R464 million in 2010.
South African exports to Tanzania consists predominantly of manufactured goods like machinery, mechanical appliances, paper, rubber products, vehicles, iron, steel, services and technology. Imports from Tanzania are mainly gold, coffee, cashew nuts and cotton.
BuaNews
However, the trade balance between the two countries shows South Africa's exports to Tanzania went from R3.5 billion in 2009 to R3.1 billion in 2010.
On the other hand, the picture shows imports from Tanzania growing by almost 100 percent from R236 million in 2009 to R464 million in 2010.
South African exports to Tanzania consists predominantly of manufactured goods like machinery, mechanical appliances, paper, rubber products, vehicles, iron, steel, services and technology. Imports from Tanzania are mainly gold, coffee, cashew nuts and cotton.
BuaNews
India's MTNL eyes 51% stake in Zimbabwe's TelOne
by Kalyan Parbat
State-run MTNL is eying 51% stake in Zimbabwe's state-owned landline operator, TelOne, for an undisclosed sum, an executive directly aware of the development said.
The funds will be routed through its Mauritius arm, Mahanagar Telephone Mauritius Ltd (MTML).
"The Zimbabwe government is keen to offload a 51% stake in TelOne, which is the country's sole state-owned landline operator."
TelOne was recently granted a GSM mobile permit and will be the fourth mobile operator in a market of some 4 million subscribers. Saddled with sizeable debt, TelOne is scouting for a strong overseas partner to enter the mobile turf.
This will be MTNL's second attempt to enter Africa - in 2006, the telco failed to bag a mobile licence in Kenya and a year later it lost out in its attempts to buy a controlling stake in Telkom Kenya.
Sanjay Garg, who heads MTNL's Mauritius subsidiary, confirmed the discussions with the Zimbabwe government but said any potential deal with the state-owned telco would only happen after MTNL's soon-to-be-launched GSM operation in Mauritius gains traction by the year-end. MTNL is slated to spend about $20 million for its 200,000 lines GSM launch.
At present, MTNL runs a mix of CDMA mobile, landline, long distance operations and internet services in Mauritius. With more than 1 lakh mobile subscribers, the CDMA wireless services business is MTNL's mainstay in Mauritius. But since a majority of tourists traveling to the island are on GSM, the company has over the years lost out heavily on the international roaming revenue front to GSM rivals like Orange Plc and Emtel.
India Times
State-run MTNL is eying 51% stake in Zimbabwe's state-owned landline operator, TelOne, for an undisclosed sum, an executive directly aware of the development said.
The funds will be routed through its Mauritius arm, Mahanagar Telephone Mauritius Ltd (MTML).
"The Zimbabwe government is keen to offload a 51% stake in TelOne, which is the country's sole state-owned landline operator."
TelOne was recently granted a GSM mobile permit and will be the fourth mobile operator in a market of some 4 million subscribers. Saddled with sizeable debt, TelOne is scouting for a strong overseas partner to enter the mobile turf.
This will be MTNL's second attempt to enter Africa - in 2006, the telco failed to bag a mobile licence in Kenya and a year later it lost out in its attempts to buy a controlling stake in Telkom Kenya.
Sanjay Garg, who heads MTNL's Mauritius subsidiary, confirmed the discussions with the Zimbabwe government but said any potential deal with the state-owned telco would only happen after MTNL's soon-to-be-launched GSM operation in Mauritius gains traction by the year-end. MTNL is slated to spend about $20 million for its 200,000 lines GSM launch.
At present, MTNL runs a mix of CDMA mobile, landline, long distance operations and internet services in Mauritius. With more than 1 lakh mobile subscribers, the CDMA wireless services business is MTNL's mainstay in Mauritius. But since a majority of tourists traveling to the island are on GSM, the company has over the years lost out heavily on the international roaming revenue front to GSM rivals like Orange Plc and Emtel.
India Times
SABMiller’s Tanzania unit eyes growth, exports
Tanzania Breweries Ltd (TBL) expects its earnings to grow by 10 percent in fiscal 2012,driven by planned expansion in output and exports.
With a 70 percent share of the market, TBL - a subsidiary of the world's number two brewer SABMiller - is the leading brewer in a market that industry executives say offers the fastest growth rate in the region.
TBL had an operating profit of US$124 million in the year through March 2011 on turnover of US$455 million, managing director Goetzsche said. He said TBL, in which SABMiller has a 53 percent stake, had invested up to US$40 million a year to expand its business. "In the last four years we have invested around US$300 million . . . and we spend between US$30 million and $40 million a year on capital," he said.
Kenya's East African Breweries , a unit of the world's biggest drinks group Diageo, is in the process of selling its 20 percent stake in TBL to go it alone through another brewer, Serengeti.
Goetzsche said TBL's four breweries across Tanzania have a combined capacity of 3,5 million hectolitres, but the company was working on plans to expand output to 6,5 million hectolitres over the next decade and hoped to start exporting to neighbouring Kenya.
TBL ventured into the wine industry last November by introducing two new brands.
Apart from its breweries in the Dar es Salaam, Arusha, Mwanza and Mbeya regions, TBL also owns a spirits and wines plant under its subsidiary, Tanzania Distilleries, in which TBL invested US$4 million this year to expand output.
A big concern for Goetzsche is the rise in the company's operating costs due to rolling power blackouts in East Africa's second-largest economy, where the state-run power company announced daily 12-hour power cuts for an unspecified period because of low water levels at hydropower dams.
The Citizen
With a 70 percent share of the market, TBL - a subsidiary of the world's number two brewer SABMiller - is the leading brewer in a market that industry executives say offers the fastest growth rate in the region.
TBL had an operating profit of US$124 million in the year through March 2011 on turnover of US$455 million, managing director Goetzsche said. He said TBL, in which SABMiller has a 53 percent stake, had invested up to US$40 million a year to expand its business. "In the last four years we have invested around US$300 million . . . and we spend between US$30 million and $40 million a year on capital," he said.
Kenya's East African Breweries , a unit of the world's biggest drinks group Diageo, is in the process of selling its 20 percent stake in TBL to go it alone through another brewer, Serengeti.
Goetzsche said TBL's four breweries across Tanzania have a combined capacity of 3,5 million hectolitres, but the company was working on plans to expand output to 6,5 million hectolitres over the next decade and hoped to start exporting to neighbouring Kenya.
TBL ventured into the wine industry last November by introducing two new brands.
Apart from its breweries in the Dar es Salaam, Arusha, Mwanza and Mbeya regions, TBL also owns a spirits and wines plant under its subsidiary, Tanzania Distilleries, in which TBL invested US$4 million this year to expand output.
A big concern for Goetzsche is the rise in the company's operating costs due to rolling power blackouts in East Africa's second-largest economy, where the state-run power company announced daily 12-hour power cuts for an unspecified period because of low water levels at hydropower dams.
The Citizen
Nigeria oil exports to peak in August 2011
Nigerian oil exports are set to rise in August to the highest level in more than 51/2 years, a provisional loading programme showed.
The August programme showed the African OPEC producer would load about 2.25 million barrels of crude oil per day.
If there is no disruption to output, the volume will mark the largest since January 2006, Reuters data showed. “It is a lot of Nigerian cargoes,” a London-based crude oil trader said. The July provisional programme showed the export to average 2.06 million barrels per day (bpd) in the month.
A relatively large increase is set to come from Bonny Light as the force majeure, which has been in place since the sabotage attack to a pipeline in mid-June, is expected to be lifted. The August programme showed about 255,000 barrels of the crude will be loaded daily in the month, compared with the estimated 215,000 bpd in July.
The August volume includes crude oil only. Nigeria also produces Akpo and Oso condensates, which are expected to total roughly 150,000 barrels per day in August.
The Vanguard
The August programme showed the African OPEC producer would load about 2.25 million barrels of crude oil per day.
If there is no disruption to output, the volume will mark the largest since January 2006, Reuters data showed. “It is a lot of Nigerian cargoes,” a London-based crude oil trader said. The July provisional programme showed the export to average 2.06 million barrels per day (bpd) in the month.
A relatively large increase is set to come from Bonny Light as the force majeure, which has been in place since the sabotage attack to a pipeline in mid-June, is expected to be lifted. The August programme showed about 255,000 barrels of the crude will be loaded daily in the month, compared with the estimated 215,000 bpd in July.
The August volume includes crude oil only. Nigeria also produces Akpo and Oso condensates, which are expected to total roughly 150,000 barrels per day in August.
The Vanguard
South African trade with UAE surpassed $1 billion in 2010
...South Africa, a key trading partner whose trade volumes with the UAE witnessed a 21.7% growth to reach over $1bn in 2010 from $878.3m in 2009.
Import levels have achieved a healthy growth rate, which highlights the importance of South Africa as a key supplier of a number of commodities. More importantly, South Africa offers enormous export potential for UAE manufacturers, particularly small and medium enterprises...
The UAE's total exports to South Africa in 2010 reached $92.4m, while imports were valued at $899.6m.
AME Info
Import levels have achieved a healthy growth rate, which highlights the importance of South Africa as a key supplier of a number of commodities. More importantly, South Africa offers enormous export potential for UAE manufacturers, particularly small and medium enterprises...
The UAE's total exports to South Africa in 2010 reached $92.4m, while imports were valued at $899.6m.
AME Info
July 16, 2011
Kenya-Uganda railway upgrade to boost trade
by Brindaveni Naidoo
The African Development Bank (AfDB) has approved a $40-million loan for the $246-million rehabilitation of the Rift Valley Railway (RVR) between Kenya and Uganda, which is seen as a key project to reduce transport costs and increase inter-Africa trade.
The region urgently needed to transition the transportation of goods from road to the challenged rail sector. It is estimated that about 8% of goods are transported by rail compared with 92% by road.
The railways in Kenya and Uganda face multiple constraints, including ageing equipment and infrastructure with some over a century old.
...the volume of goods transported is expected to more than double to 3.3-million tons a year by 2015, while marginal costs were expected to drop by up to 30%.
In the next 15 years, the project is expected to generate significant revenue for the Kenyan and Ugandan governments and have positive environmental effects by reducing the volume of goods transported by more polluting trucking services.
To date, AfDB has approved more than 30 private sector operations, valued at about $500-million, in East Africa.
This is the second private sector regional project in the area after the Eastern Africa Submarine Cable project, which is one of nine undersea telecommunication cables that will connect various parts of sub-Saharan Africa to the rest of the world.
Engineering News
The African Development Bank (AfDB) has approved a $40-million loan for the $246-million rehabilitation of the Rift Valley Railway (RVR) between Kenya and Uganda, which is seen as a key project to reduce transport costs and increase inter-Africa trade.
The region urgently needed to transition the transportation of goods from road to the challenged rail sector. It is estimated that about 8% of goods are transported by rail compared with 92% by road.
The railways in Kenya and Uganda face multiple constraints, including ageing equipment and infrastructure with some over a century old.
...the volume of goods transported is expected to more than double to 3.3-million tons a year by 2015, while marginal costs were expected to drop by up to 30%.
In the next 15 years, the project is expected to generate significant revenue for the Kenyan and Ugandan governments and have positive environmental effects by reducing the volume of goods transported by more polluting trucking services.
To date, AfDB has approved more than 30 private sector operations, valued at about $500-million, in East Africa.
This is the second private sector regional project in the area after the Eastern Africa Submarine Cable project, which is one of nine undersea telecommunication cables that will connect various parts of sub-Saharan Africa to the rest of the world.
Engineering News
The quiet rise of Turkey’s influence in Africa
by Loyiso Langeni
While all eyes in Africa have been firmly focused on such fellow Bric countries as China, Brazil and India, Turkey has emerged, almost unnoticed, as a major investor on the continent.
A report released by the African Development Bank shows that Turkey is now counted among the top five emerging market economies with a sizable interest on the continent. China still commanded the biggest share of the African market, accounting for 38% of the continent’s total trade with emerging countries. This was followed by India at 14,1%, South Korea at 7,2%, Brazil at 7,1% and Turkey at 6,5%.
With an eye for membership of the 27-member European Union bloc, Turkey is among the world’s top 20 economies. The global investment firm Goldman Sachs has grouped Turkey as one of the "Next 11" emerging market economies to look out for.
''The economy has grown faster than any nation in Europe including Russia", says Standard Bank research analyst Simon Freemantle. "In five years’ time, Turkey’s influence in Africa will be less surprising. Individual African nations need to reflect on the current nature of relations and determine priority areas for mutual benefit and collaboration."
Jeremy Stevens, an economist at Standard Bank, says the Turkish government last year aimed to increase its share of bilateral trade with the continent to $30bn. Turkey’s foreign policy towards Africa rests on gaining favourable economic concessions and providing technical assistance to development projects.
Trade relations between Turkey and the continent have more than tripled in the past decade reaching $15,7bn last year.
Overall, Turkey was Africa’s 12th largest source of imports last year and the fifth largest from the emerging world ahead of both Brazil and Russia.
Total trade between Turkey and SA has since 2000 tripled to reach $1,2bn last year.
Commodity resources, gold and coal were the biggest items that were imported from SA, as they accounted for 75% and 10% respectively of total trade.
Business Day
While all eyes in Africa have been firmly focused on such fellow Bric countries as China, Brazil and India, Turkey has emerged, almost unnoticed, as a major investor on the continent.
A report released by the African Development Bank shows that Turkey is now counted among the top five emerging market economies with a sizable interest on the continent. China still commanded the biggest share of the African market, accounting for 38% of the continent’s total trade with emerging countries. This was followed by India at 14,1%, South Korea at 7,2%, Brazil at 7,1% and Turkey at 6,5%.
With an eye for membership of the 27-member European Union bloc, Turkey is among the world’s top 20 economies. The global investment firm Goldman Sachs has grouped Turkey as one of the "Next 11" emerging market economies to look out for.
''The economy has grown faster than any nation in Europe including Russia", says Standard Bank research analyst Simon Freemantle. "In five years’ time, Turkey’s influence in Africa will be less surprising. Individual African nations need to reflect on the current nature of relations and determine priority areas for mutual benefit and collaboration."
Jeremy Stevens, an economist at Standard Bank, says the Turkish government last year aimed to increase its share of bilateral trade with the continent to $30bn. Turkey’s foreign policy towards Africa rests on gaining favourable economic concessions and providing technical assistance to development projects.
Trade relations between Turkey and the continent have more than tripled in the past decade reaching $15,7bn last year.
Overall, Turkey was Africa’s 12th largest source of imports last year and the fifth largest from the emerging world ahead of both Brazil and Russia.
Total trade between Turkey and SA has since 2000 tripled to reach $1,2bn last year.
Commodity resources, gold and coal were the biggest items that were imported from SA, as they accounted for 75% and 10% respectively of total trade.
Business Day
Nigeria's Dangote to start work on Zambian cement plant
Dangote, Nigeria's largest cement maker expects to start building a $400 million plant in Zambia this month, Zambia's commerce, trade and industry minister said.
"We are expecting a team of construction experts from Dangote to arrive in Zambia and the building of the plant should be launched this month," Felix Mutati said.
Mutati said the plant, one of Zambia's largest investments outside mining, is expected to produce 1.5 million tonnes of cement a year when it reaches full capacity by 2013.
"They are positioning themselves to capture the regional cement market, in particular Congo DR and we hope their presence will also help give Zambia the prominence that it craves for," he said.
Dangote's new plant would also bring competition, which was expected to result in a higher quality of product and lower prices, Mutati said.
The project would create more than 1,500 direct and indirect jobs during the construction and operational phases, he said.
Dangote plans to set up plants and import terminals in other countries including Cameroon, Ethiopia, Ghana, Ivory Coast and Senegal to bring its production capacity across the continent up to 46 million tonnes a year in five years' time, 30 million of it in Nigeria.
Daily Times
"We are expecting a team of construction experts from Dangote to arrive in Zambia and the building of the plant should be launched this month," Felix Mutati said.
Mutati said the plant, one of Zambia's largest investments outside mining, is expected to produce 1.5 million tonnes of cement a year when it reaches full capacity by 2013.
"They are positioning themselves to capture the regional cement market, in particular Congo DR and we hope their presence will also help give Zambia the prominence that it craves for," he said.
Dangote's new plant would also bring competition, which was expected to result in a higher quality of product and lower prices, Mutati said.
The project would create more than 1,500 direct and indirect jobs during the construction and operational phases, he said.
Dangote plans to set up plants and import terminals in other countries including Cameroon, Ethiopia, Ghana, Ivory Coast and Senegal to bring its production capacity across the continent up to 46 million tonnes a year in five years' time, 30 million of it in Nigeria.
Daily Times
Tunisia: exports up 13.8% in first half of 2011
Tunisia's exports posted a 13.8% rise in the first half of the current year compared with the same period in 2010. An increase of food and farm produce exports of 82.7% accounts for this rise.
Exports amounted to 12,918 million Tunisian dinars (MTD), against 11,348.6 MTD in the same period of 2010, i.e. a rise of 13.8%.
Imports also recorded a rise of 4.5% to stand at 16,506.8 MTD against 15,791.8 MTD in 2010, which helped reduce the trade deficit by 19.2% and improve the coverage rate that stood at 78.3% at the end of last June, compared with 71.9% at the same period last year.
According to Dr. Lotfi Khedher, Director of the Observatory of Foreign Trade at the Ministry of Trade and Tourism, this increase is mainly due to the growth of exports of the agricultural, food industry and textile and clothing sectors accounting for 32% of the overall exports.
Exports of the food processing sector grew by 29.7% in volume and 82.7% in value.
Sales in the textile / clothing sector grew by 8.2% at the end of June 2011, against a decline of 9.9% in January 2011.
The volume of exports of mechanical and electrical industries fell by 4.4%. Exports of leather and footwear sector were down 7.7%.
Exports of mining and phosphate sector fell from 14% and 8.5% per year, to 5.6% in the first half of 2011.
During the month of June, 185,000 tons of mining products were exported, against 300,000 tons in May 2011.
The overall volume of exports in the sector fell by 34.2% at the end of the first half of 2011, compared to the same period last year. The decline of the sector is estimated at 21.5% in value.
African Manager
Exports amounted to 12,918 million Tunisian dinars (MTD), against 11,348.6 MTD in the same period of 2010, i.e. a rise of 13.8%.
Imports also recorded a rise of 4.5% to stand at 16,506.8 MTD against 15,791.8 MTD in 2010, which helped reduce the trade deficit by 19.2% and improve the coverage rate that stood at 78.3% at the end of last June, compared with 71.9% at the same period last year.
According to Dr. Lotfi Khedher, Director of the Observatory of Foreign Trade at the Ministry of Trade and Tourism, this increase is mainly due to the growth of exports of the agricultural, food industry and textile and clothing sectors accounting for 32% of the overall exports.
Exports of the food processing sector grew by 29.7% in volume and 82.7% in value.
Sales in the textile / clothing sector grew by 8.2% at the end of June 2011, against a decline of 9.9% in January 2011.
The volume of exports of mechanical and electrical industries fell by 4.4%. Exports of leather and footwear sector were down 7.7%.
Exports of mining and phosphate sector fell from 14% and 8.5% per year, to 5.6% in the first half of 2011.
During the month of June, 185,000 tons of mining products were exported, against 300,000 tons in May 2011.
The overall volume of exports in the sector fell by 34.2% at the end of the first half of 2011, compared to the same period last year. The decline of the sector is estimated at 21.5% in value.
African Manager
South African arms exports soar
South Africa's largest arms manufacturer, the state-owned company Denel, has had a profitable year, racking up profits of $16.5 million in profits in the year to date.
Denel's Group Executive Officer Talip Sadik noted this was the first time in a decade that Denel has achieved such results, BuaNews news agency reported.
"We are pleased with our results, in particular that the business generated cash from operations of $26.4 million," Sadik said.
Addressing Denel's debt levels, Denel Group Financial Director Fikile Mhlontlo said that the funding balance had remained at $275.3 million, resulting in annual interest charges of $17.5 million.
Denel's output is primarily directed to meet the requirements of the South African military, which recently purchased state-of-the art Rooivalk helicopters manufactured by Denel.
As for the future, Sadik said Denel had nearly $744 million in export contracts on its books and that this included the largest export order secured in Denel's history.
While some of Denel's new clients include Middle Eastern and Far Eastern nations, Denel made it explicitly clear that none of the contracts included Libya.
Denel Group Executive for Business Development and Corporate Affairs Zwelakhe Ntshepe said: "We have not been selling to Libya. Libya is a closed market to us." He added that the National Conventional Arms Control Committee would never approve a contract with a country in conflict.
Beyond strictly military hardware, Denel has diversified its output into civilian applications such as civil security, crime prevention, improving workplace safety and productivity and rendering support to the mining and electronic sectors.
UPI
Denel's Group Executive Officer Talip Sadik noted this was the first time in a decade that Denel has achieved such results, BuaNews news agency reported.
"We are pleased with our results, in particular that the business generated cash from operations of $26.4 million," Sadik said.
Addressing Denel's debt levels, Denel Group Financial Director Fikile Mhlontlo said that the funding balance had remained at $275.3 million, resulting in annual interest charges of $17.5 million.
Denel's output is primarily directed to meet the requirements of the South African military, which recently purchased state-of-the art Rooivalk helicopters manufactured by Denel.
As for the future, Sadik said Denel had nearly $744 million in export contracts on its books and that this included the largest export order secured in Denel's history.
While some of Denel's new clients include Middle Eastern and Far Eastern nations, Denel made it explicitly clear that none of the contracts included Libya.
Denel Group Executive for Business Development and Corporate Affairs Zwelakhe Ntshepe said: "We have not been selling to Libya. Libya is a closed market to us." He added that the National Conventional Arms Control Committee would never approve a contract with a country in conflict.
Beyond strictly military hardware, Denel has diversified its output into civilian applications such as civil security, crime prevention, improving workplace safety and productivity and rendering support to the mining and electronic sectors.
UPI
Booms/busts in capital flows, commodity markets destabilising developing countries
by Martin Khor
After the financial crisis, capital flows resumed their large surge into some developing countries. This has caused them many problems, such as currency appreciation affecting their trade, excess money, asset price boom and inflation.
But the boom may also end with a bust, with a sudden reversal of capital flows. And this will bring new and different problems.
Meanwhile, the commodity markets are also volatile, as commodities have become an asset class, subjected to financial speculation. The boom in prices may also end with a bust if changing conditions change investors' perceptions.
The special edition of The South Bulletin also analyses how developing countries can act to manage and control capital flows, to prevent the damage.
South Center
After the financial crisis, capital flows resumed their large surge into some developing countries. This has caused them many problems, such as currency appreciation affecting their trade, excess money, asset price boom and inflation.
But the boom may also end with a bust, with a sudden reversal of capital flows. And this will bring new and different problems.
Meanwhile, the commodity markets are also volatile, as commodities have become an asset class, subjected to financial speculation. The boom in prices may also end with a bust if changing conditions change investors' perceptions.
The special edition of The South Bulletin also analyses how developing countries can act to manage and control capital flows, to prevent the damage.
South Center
Maersk will add capacity on Asia, West Africa routes
by Zhou Siyu
Maersk Line Ltd, the world's largest shipping company by capacity, will deploy more vessels on Asia-West Africa routes to serve growing trade flows, said Keith Svendsen, head of the company's East China cluster.
"Asian-West African trade has been one of the fastest- growing markets in the past few years, and it is expected to maintain 15 percent to 20 percent year-on-year growth over the next three years," he said.
Sino-African trade plays a significant role. "One in three containers in the world serves China. We have seen significant trade flows from China to other emerging markets and Africa is an important part of the story," Svendsen said.
The vessels, known as West Africa Max ships, with a capacity of 4,500 containers, are said by the company to be the largest container ships that ply the route.
The company ordered 22 such vessels from South Korea's Hyundai Heavy Industries. Six went into service on May 21 and another three are scheduled for delivery by the end of the year, according to the company. The rest are still under construction.
All will be dedicated to Asian-West African trade, connecting Chinese and African ports, Svendsen said.
Currently, Maersk operates three routes between Asia and West Africa. Two serve major Chinese ports such as Shanghai, Ningbo and Hong Kong. The ships sail for Africa bearing building materials, machinery and daily necessities. They return with commodities such as cotton or wood.
Zhang Monan, an economist at the Economic Forecast Department of the State Information Center, said
China will remain a major global manufacturer in the near term, and its need for resources and commodities will drive up its trade with African countries. In the meantime, China's low-priced products can meet demand in African markets.
However, the appreciation of China's currency, rising labor costs and global commodity price hikes have put tremendous pressure on Chinese manufacturers. More Chinese companies are considering investing in overseas markets to make use of labor and other factors in local markets.
These factors also explain rising Chinese investment in Africa. Through investments in African countries, Chinese businesses can process natural resources locally for export to China, said Zhang.
"This will help Chinese businesses expand their industrial chain on a global scale and facilitate the whole country's industrial upgrading," she said.
For the shipping industry, the growing fleet serving routes between Asia and West Africa will benefit ports in both regions. It will provide Chinese ports with a larger and steadier cargo flow, said Zhang Hongbo, an analyst with CITIC Securities Co Ltd.
China Daily
Maersk Line Ltd, the world's largest shipping company by capacity, will deploy more vessels on Asia-West Africa routes to serve growing trade flows, said Keith Svendsen, head of the company's East China cluster.
"Asian-West African trade has been one of the fastest- growing markets in the past few years, and it is expected to maintain 15 percent to 20 percent year-on-year growth over the next three years," he said.
Sino-African trade plays a significant role. "One in three containers in the world serves China. We have seen significant trade flows from China to other emerging markets and Africa is an important part of the story," Svendsen said.
The vessels, known as West Africa Max ships, with a capacity of 4,500 containers, are said by the company to be the largest container ships that ply the route.
The company ordered 22 such vessels from South Korea's Hyundai Heavy Industries. Six went into service on May 21 and another three are scheduled for delivery by the end of the year, according to the company. The rest are still under construction.
All will be dedicated to Asian-West African trade, connecting Chinese and African ports, Svendsen said.
Currently, Maersk operates three routes between Asia and West Africa. Two serve major Chinese ports such as Shanghai, Ningbo and Hong Kong. The ships sail for Africa bearing building materials, machinery and daily necessities. They return with commodities such as cotton or wood.
Zhang Monan, an economist at the Economic Forecast Department of the State Information Center, said
China will remain a major global manufacturer in the near term, and its need for resources and commodities will drive up its trade with African countries. In the meantime, China's low-priced products can meet demand in African markets.
However, the appreciation of China's currency, rising labor costs and global commodity price hikes have put tremendous pressure on Chinese manufacturers. More Chinese companies are considering investing in overseas markets to make use of labor and other factors in local markets.
These factors also explain rising Chinese investment in Africa. Through investments in African countries, Chinese businesses can process natural resources locally for export to China, said Zhang.
"This will help Chinese businesses expand their industrial chain on a global scale and facilitate the whole country's industrial upgrading," she said.
For the shipping industry, the growing fleet serving routes between Asia and West Africa will benefit ports in both regions. It will provide Chinese ports with a larger and steadier cargo flow, said Zhang Hongbo, an analyst with CITIC Securities Co Ltd.
China Daily
July 07, 2011
1 Senegal, Mali agree to free movement of goods
2 War against Libya: an economic catastrophe for Africa and Europe
3 Africa, Asian development banks to set up African trade finance programme
4 Intra-SADC trade edges up
5 Tunisia: exports up 13.9% in 1st five months of 2011
6 Energy deficit reaches crisis levels in Tanzania
7 Togo to host 6th ECOWAS Trade Fair in November 2011
2 War against Libya: an economic catastrophe for Africa and Europe
3 Africa, Asian development banks to set up African trade finance programme
4 Intra-SADC trade edges up
5 Tunisia: exports up 13.9% in 1st five months of 2011
6 Energy deficit reaches crisis levels in Tanzania
7 Togo to host 6th ECOWAS Trade Fair in November 2011
Senegal, Mali agree to free movement of goods
The Chamber of Commerce of Dakar (CCIAD) and the Chamber of Commerce of Mali (CCIM)...signed an agreement for the free movement of goods on the Dakar-Bamako corridor.
The chairman of the Chamber of Commerce of Senegal...said the agreement spelt out the obligations on national deposits of both countries as part of the establishment of mechanisms to guarantee the inter-state road transit (TRIE) between them.
The agreement will help road haulers travel through the Dakar-Bamako road without any disturbances at the borders' customs points...both consular chambers have been negotiating the terms of agreement for the past eight years.
TRIE is an ECOWAS tool to facilitate trans-border trade for member states by reducing road controls.
African Manager
The chairman of the Chamber of Commerce of Senegal...said the agreement spelt out the obligations on national deposits of both countries as part of the establishment of mechanisms to guarantee the inter-state road transit (TRIE) between them.
The agreement will help road haulers travel through the Dakar-Bamako road without any disturbances at the borders' customs points...both consular chambers have been negotiating the terms of agreement for the past eight years.
TRIE is an ECOWAS tool to facilitate trans-border trade for member states by reducing road controls.
African Manager
War against Libya: an economic catastrophe for Africa and Europe
by Thierry Meyssan; interview with Mohamed Siala
One of the motives for the war against Libya is to stop the development of the black continent, to enable the setting up of an AfriCom military base in Cyrenaica and to begin the colonial exploitation of Africa for the benefit of the United States. In order to understand this hidden agenda, Voltaire Network interviewed Mohamed Siala, Co-operation Minister and Manager of Libya’s sovereign wealth fund.
Voltaire Network: Your country is gas and oil rich. The Libyan Investment Authority manages an accumulated capital estimated at 70 billion dollars. What use are you making of this bonanza?
Mohamed Siala: We possess a significant amount of resources, but they are non renewable. We have therefore set up the Libyan Investment Authority to protect the wealth of future generations, following Norway’s example. A portion of these funds are dedicated to the development of Africa. This means that 6 billion dollars have been invested in African development shares, i.e. agriculture, tourism, commerce, mines, etc…
The remaining funds have been invested in various sectors, countries, currencies all over the world, including the USA and Germany. This, unfortunately, is what enabled them to freeze our assets.
Voltaire Network: Technically, how was the freeze carried out?
Mohamed Siala: The assets freeze is governed by the banking regulations of the country where they are invested. The rule is that they block our bank accounts, but we sometimes can get them unblocked if we take the litigation to the UN Claims Committee and provided we can prove they were destined for specific uses. For example, I have just pleaded for the unfreezing of funds earmarked to pay scholarships to 1200 students that we sent to Malysia. We are trying to do the same for everything that relates to social allowances or the hospitalization expenses of our citizens abroad.
We are sometimes allowed to use funds to buy food or medicine. This is, in principle, our right but many are refusing to unfreeze the necessary funds or are dragging their feet. For example, the Italian State rejects any use of our assets. In Germany, while the State authorizes their use for humanitarian purposes, it is sometimes the banks that refuse to unfreeze the necessary funds. The interpretations of the resolution are entirely different depending on each State. What we demand is a clear rule: what is permitted is authorised and what is not is forbidden. Right now, the interpretation is political and might prevails over right.
Voltaire Network : Is this the only problem your are facing in terms of supplies?
Mohamed Siala : We also have to face the maritime blockade put in place by NATO with no legal basis. Supplies are forbidden or delayed, that includes foodstuff. They are particularly intent on preventing our oil deliveries even if this is not envisaged by the relevant UN resolutions. We’ve had an oil tank stuck in Malta waiting for one month. For each ship, the double use of its cargo is questioned. Oil is destined for civilian vehicles, but NATO objects that it can also be used for army vehicles. We argue that they cannot prohibit its use for ambulances, etc. Anyhow, since the beginning of the conflict, they have prevented all oil deliveries. Now, we depend on foreign refineries for about one third of our supplies. Hence, our present shortage. Theoretically, they are only allowed to inspect the ships to make sure they do not transport arms. In reality, what NATO is enacting is an illegal maritime blockade.
Russian and Chinese ships have been ordered to make a U turn. Their respective States must file a claim before the UN Sanctions Committee to discuss the interpretation of the resolutions. It is an endless and dissuasive procedure. No legal basis allows NATO to behave like this. It abuses its authority, confident that it will go unpunished.
We, however, manage to supply ourselves by land, but this is laughable. It takes one month to truck what can be unloaded in our harbours in one day.
Voltaire Network: Your country has been heavily engaged in infrastructure building, namely the colossal Man-Made River irrigation and water works. Which projects do you currently have in the pipeline?
Mohammad Siala: There is a railway running across the whole of North Africa with the exception of Libya. We would like to complete it so as to achieve a greater integration in the regional economy and energise it. The Chinese are building the Tunisia-Syrte section. The Russians are in charge of the Syrte-Benghazi stretch. Negotiations with Italy were underway for the Benghazi-Egypt connection as well as for the locomotives. Also, we are constructing a North-South transcontinental railroad, starting with the Libya-Chad (N’Djamena) line. These are major investments with an international scope. We thought the G8 would help. It had promised to do so, but nothing came.
We are fierce when it comes to business, and we have used the bidding process to oblige providers to bring down their prices. When Putin came here, he agreed to align the rates of Russian enterprises on those of their Chinese competitors, thus enabling us to diversify the our choice of partners.
Voltaire Network: Now that the country is at war, what is going to happen to these projects ?
All these projects have been interrupted with the freezing of our assets. However, we are continuing with the bidding procedures for the construction of railway lines as we are confident the war is temporary and that works will start again. We are getting ready to proceed with the contracts temporarily interrupted for reasons of "force majeure."
The war has brought desperation to our partners. The Chinese had signed up for 20 billion worth of contracts here, the Turks 12 billion. Then, come the Italians, the Russians and the French. It was not in their interest to let this aggression take place, and even less to be part of it. Most likely, some of them must have been bribed in compensation, but we don’t know much about it. Some hope to make better profits by conquering our country and helping themselves to reconstruction contracts.
Voltaire Network: What are the consequences of your assets freeze for Africa?
Mohammad Siala: By freezing our assets, NATO also halted our development activities in Africa. The continent can only export raw products. We are investing in Africa so that these products can be processed in Africa and commercialized by Africans. We want to create jobs and keep the surplus in Africa. On one hand, Europeans applaud us as this policy dries out migration fluxes. On the other hand, they are against it since it means having to give up colonial exploitation.
The Westerners want to maintain Africa in a situation where it will only export raw products and commodities.
For example, when the coffee grown in Uganda is exported to Germany where it is marketed, the surplus remains in Germany. We have funded installations for coffee roasting, grinding and packaging. The remuneration for Ugandans went up from 20% to 80%. Needless to say, our policy is conflicting with that of the Europeans. That is an understatement.
We are funding rice fields in Mozambique and Liberia, up to 32 million dollars per project, creating each time 100,000 jobs. We focus on food self-sufficiency for each African state first and on exportation markets second. There is no doubt we are entering into conflict with those who produce and export rice, especially if speculation is at stake.
We are also building roads, for example from Libya across Niger. We have already linked Sudan to Eritrea thus changing drastically the regional economy and opening new development opportunities. It is now possible to ensure the transportation of goods by road and by sea.
Voltaire Network: Can we say that Libya is short on diplomatic alliances but that you have elaborated economic alliances that are protecting you? Can we talk of investment diplomacy?
Mohammad Siala: Yes.
For example, we are funding the construction by the Chinese companies of a 50 million-dollar, 32 Km, canal in Mali for the irrigation of agricultural areas. The freeze of our assets halts important agricultural projects in this country. If this goes on, a food problem will arise quickly and the populations will revert to and speed up migration towards Europe. Finally, Europeans cannot afford to stop our development efforts on the continent. There is no alternative to our policy.
Voltaire Network: Are you using a mechanism enabling you to pay for your orders on the international market in spite of the freeze of your assets?Your country is attacked; I am of course thinking of the purchase of arms and munitions.
Mohammad Siala: We have been resisting for four and a half months. We drew the lessons from the embargo and were ready right from the first day. A lot of States are observing us and are taking similar measures to also protect themselves against imperialism.
Voltaire Network
One of the motives for the war against Libya is to stop the development of the black continent, to enable the setting up of an AfriCom military base in Cyrenaica and to begin the colonial exploitation of Africa for the benefit of the United States. In order to understand this hidden agenda, Voltaire Network interviewed Mohamed Siala, Co-operation Minister and Manager of Libya’s sovereign wealth fund.
Voltaire Network: Your country is gas and oil rich. The Libyan Investment Authority manages an accumulated capital estimated at 70 billion dollars. What use are you making of this bonanza?
Mohamed Siala: We possess a significant amount of resources, but they are non renewable. We have therefore set up the Libyan Investment Authority to protect the wealth of future generations, following Norway’s example. A portion of these funds are dedicated to the development of Africa. This means that 6 billion dollars have been invested in African development shares, i.e. agriculture, tourism, commerce, mines, etc…
The remaining funds have been invested in various sectors, countries, currencies all over the world, including the USA and Germany. This, unfortunately, is what enabled them to freeze our assets.
Voltaire Network: Technically, how was the freeze carried out?
Mohamed Siala: The assets freeze is governed by the banking regulations of the country where they are invested. The rule is that they block our bank accounts, but we sometimes can get them unblocked if we take the litigation to the UN Claims Committee and provided we can prove they were destined for specific uses. For example, I have just pleaded for the unfreezing of funds earmarked to pay scholarships to 1200 students that we sent to Malysia. We are trying to do the same for everything that relates to social allowances or the hospitalization expenses of our citizens abroad.
We are sometimes allowed to use funds to buy food or medicine. This is, in principle, our right but many are refusing to unfreeze the necessary funds or are dragging their feet. For example, the Italian State rejects any use of our assets. In Germany, while the State authorizes their use for humanitarian purposes, it is sometimes the banks that refuse to unfreeze the necessary funds. The interpretations of the resolution are entirely different depending on each State. What we demand is a clear rule: what is permitted is authorised and what is not is forbidden. Right now, the interpretation is political and might prevails over right.
Voltaire Network : Is this the only problem your are facing in terms of supplies?
Mohamed Siala : We also have to face the maritime blockade put in place by NATO with no legal basis. Supplies are forbidden or delayed, that includes foodstuff. They are particularly intent on preventing our oil deliveries even if this is not envisaged by the relevant UN resolutions. We’ve had an oil tank stuck in Malta waiting for one month. For each ship, the double use of its cargo is questioned. Oil is destined for civilian vehicles, but NATO objects that it can also be used for army vehicles. We argue that they cannot prohibit its use for ambulances, etc. Anyhow, since the beginning of the conflict, they have prevented all oil deliveries. Now, we depend on foreign refineries for about one third of our supplies. Hence, our present shortage. Theoretically, they are only allowed to inspect the ships to make sure they do not transport arms. In reality, what NATO is enacting is an illegal maritime blockade.
Russian and Chinese ships have been ordered to make a U turn. Their respective States must file a claim before the UN Sanctions Committee to discuss the interpretation of the resolutions. It is an endless and dissuasive procedure. No legal basis allows NATO to behave like this. It abuses its authority, confident that it will go unpunished.
We, however, manage to supply ourselves by land, but this is laughable. It takes one month to truck what can be unloaded in our harbours in one day.
Voltaire Network: Your country has been heavily engaged in infrastructure building, namely the colossal Man-Made River irrigation and water works. Which projects do you currently have in the pipeline?
Mohammad Siala: There is a railway running across the whole of North Africa with the exception of Libya. We would like to complete it so as to achieve a greater integration in the regional economy and energise it. The Chinese are building the Tunisia-Syrte section. The Russians are in charge of the Syrte-Benghazi stretch. Negotiations with Italy were underway for the Benghazi-Egypt connection as well as for the locomotives. Also, we are constructing a North-South transcontinental railroad, starting with the Libya-Chad (N’Djamena) line. These are major investments with an international scope. We thought the G8 would help. It had promised to do so, but nothing came.
We are fierce when it comes to business, and we have used the bidding process to oblige providers to bring down their prices. When Putin came here, he agreed to align the rates of Russian enterprises on those of their Chinese competitors, thus enabling us to diversify the our choice of partners.
Voltaire Network: Now that the country is at war, what is going to happen to these projects ?
All these projects have been interrupted with the freezing of our assets. However, we are continuing with the bidding procedures for the construction of railway lines as we are confident the war is temporary and that works will start again. We are getting ready to proceed with the contracts temporarily interrupted for reasons of "force majeure."
The war has brought desperation to our partners. The Chinese had signed up for 20 billion worth of contracts here, the Turks 12 billion. Then, come the Italians, the Russians and the French. It was not in their interest to let this aggression take place, and even less to be part of it. Most likely, some of them must have been bribed in compensation, but we don’t know much about it. Some hope to make better profits by conquering our country and helping themselves to reconstruction contracts.
Voltaire Network: What are the consequences of your assets freeze for Africa?
Mohammad Siala: By freezing our assets, NATO also halted our development activities in Africa. The continent can only export raw products. We are investing in Africa so that these products can be processed in Africa and commercialized by Africans. We want to create jobs and keep the surplus in Africa. On one hand, Europeans applaud us as this policy dries out migration fluxes. On the other hand, they are against it since it means having to give up colonial exploitation.
The Westerners want to maintain Africa in a situation where it will only export raw products and commodities.
For example, when the coffee grown in Uganda is exported to Germany where it is marketed, the surplus remains in Germany. We have funded installations for coffee roasting, grinding and packaging. The remuneration for Ugandans went up from 20% to 80%. Needless to say, our policy is conflicting with that of the Europeans. That is an understatement.
We are funding rice fields in Mozambique and Liberia, up to 32 million dollars per project, creating each time 100,000 jobs. We focus on food self-sufficiency for each African state first and on exportation markets second. There is no doubt we are entering into conflict with those who produce and export rice, especially if speculation is at stake.
We are also building roads, for example from Libya across Niger. We have already linked Sudan to Eritrea thus changing drastically the regional economy and opening new development opportunities. It is now possible to ensure the transportation of goods by road and by sea.
Voltaire Network: Can we say that Libya is short on diplomatic alliances but that you have elaborated economic alliances that are protecting you? Can we talk of investment diplomacy?
Mohammad Siala: Yes.
For example, we are funding the construction by the Chinese companies of a 50 million-dollar, 32 Km, canal in Mali for the irrigation of agricultural areas. The freeze of our assets halts important agricultural projects in this country. If this goes on, a food problem will arise quickly and the populations will revert to and speed up migration towards Europe. Finally, Europeans cannot afford to stop our development efforts on the continent. There is no alternative to our policy.
Voltaire Network: Are you using a mechanism enabling you to pay for your orders on the international market in spite of the freeze of your assets?Your country is attacked; I am of course thinking of the purchase of arms and munitions.
Mohammad Siala: We have been resisting for four and a half months. We drew the lessons from the embargo and were ready right from the first day. A lot of States are observing us and are taking similar measures to also protect themselves against imperialism.
Voltaire Network
Africa, Asian development banks to set up African trade finance programme
The Asian Development Bank and the African Development Bank have signed an agreement to help AfDB set up a trade finance program to boost African trade and, more broadly, South-South trade. AfDB is scaling up its trade finance activities to channel critical trade support to companies across the African continent, much as the ADB’s program has done in developing Asia.
Companies in developing countries have difficulties in getting the trade finance they need from banks in order to buy key components from overseas or to sell their goods to other countries. This prevents them from participating fully in global trade which grew 14.5% in 2010, its fastest annual pace on record.
ADB’s Trade Finance Program provides guarantees and loans in support of trade in developing Asia through over 200 partner banks. Under the just-signed Memorandum of Understanding, ADB will share all legal document templates, operation manuals, information technology, and know-how related to its Trade Finance Program with AfDB.
By transferring all tools and knowledge of the Trade Finance Program, the two development banks will reduce duplication of effort and cost and will share best practices, as encouraged under the 2005 Paris Declaration on Aid Effectiveness and the framework to achieve the Millennium Development Goals.
ADB’s Trade Finance Program provided support for $2.8 billion worth of trade in 2010, up from $1.9 billion in 2009. It focuses on countries where trade finance is less readily available. As such, the program does not assume any risk in the People’s Republic of China, India, Republic of Korea, Malaysia or Thailand. The five most active users of the program last year were banks in Bangladesh, Viet Nam, Pakistan, Sri Lanka and Nepal.
The program also aims to support smaller firms that typically have more trouble accessing trade finance and to promote trade between developing countries. Around 270 of the 783 deals supported by the program last year involved small and medium-sized enterprises, while half were conducted between two developing Asian economies.
In 2009, AfDB’s Board of Directors approved the Bank’s Trade Finance Initiative (TFI) to provide up to $1 billion of support to African commercial banks and other financial institutions to reinvigorate their trade finance operations. Under the TFI, the Bank initially allocated $500 million for short-term trade finance lines of credit (TF LOC) and $500 million for the Global Trade Liquidity Program (GTLP) in cooperation with the International Finance Corporation (IFC).
Companies in developing countries have difficulties in getting the trade finance they need from banks in order to buy key components from overseas or to sell their goods to other countries. This prevents them from participating fully in global trade which grew 14.5% in 2010, its fastest annual pace on record.
ADB’s Trade Finance Program provides guarantees and loans in support of trade in developing Asia through over 200 partner banks. Under the just-signed Memorandum of Understanding, ADB will share all legal document templates, operation manuals, information technology, and know-how related to its Trade Finance Program with AfDB.
By transferring all tools and knowledge of the Trade Finance Program, the two development banks will reduce duplication of effort and cost and will share best practices, as encouraged under the 2005 Paris Declaration on Aid Effectiveness and the framework to achieve the Millennium Development Goals.
ADB’s Trade Finance Program provided support for $2.8 billion worth of trade in 2010, up from $1.9 billion in 2009. It focuses on countries where trade finance is less readily available. As such, the program does not assume any risk in the People’s Republic of China, India, Republic of Korea, Malaysia or Thailand. The five most active users of the program last year were banks in Bangladesh, Viet Nam, Pakistan, Sri Lanka and Nepal.
The program also aims to support smaller firms that typically have more trouble accessing trade finance and to promote trade between developing countries. Around 270 of the 783 deals supported by the program last year involved small and medium-sized enterprises, while half were conducted between two developing Asian economies.
In 2009, AfDB’s Board of Directors approved the Bank’s Trade Finance Initiative (TFI) to provide up to $1 billion of support to African commercial banks and other financial institutions to reinvigorate their trade finance operations. Under the TFI, the Bank initially allocated $500 million for short-term trade finance lines of credit (TF LOC) and $500 million for the Global Trade Liquidity Program (GTLP) in cooperation with the International Finance Corporation (IFC).
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