1. Chinese traders in Malawi now officially confined to urban centers
2. South African movers and shakers for sale to foreign investors?
3. AGOA benefited Chinese apparel exporters in Africa more than African businesspeople
4. Zimbabwe imports US$8.2 billion goods, exports US$5,1 billion in 2012
5. Nigeria, Canada trade hits U.S.$3 billion
6. China's trade with Africa likely to surpass that with U.S., EU in by 2015
7. Trade between Switzerland and South Africa up 25% since 2007
8. Madagascar to become a major cobalt, nickel exporter
October 17, 2012
Chinese traders in Malawi now officially confined to urban centers
China's rising role in Africa is a subject of fevered discussion. Welcomed at the macro level, at the local level many African businesspeople are also deeply resentful at the competition by Chinese at even low levels of business in rural areas.
The goods that African traders sell are increasingly from China anyway. It is one thing for African traders to travel to China to buy goods for resell back home. But it is quite something else when the Chinese themselves come from their country with the goods to sell directly to African consumers. They obviously have many automatic advantages over local traders selling the same goods. Many African traders find themselves simply unable to compete with their Chinese counterparts.
This is one aspect of what drives ill-feelings against Chinese people in many African countries. The Chinese are often considered to be competing in sectors and at levels which it is widely thought (and sometimes legislated) should be the preserve of locals.
While this discussion is taking place in every African country where Chinese traders have developed a presence in recent years, Malawian traders have taken their feelings a step further than those in most other countries. They put pressure on the government to pass The Investment and Export Promotion Act, which from July 31 has confined foreign traders to the country's four biggest urban centers - Lilongwe, Blantyre, Mzuzu and Zomba.
“The new law clearly outlines what kind of businesses foreign investors will be allowed to get involved in. We will not accept foreigners to come all the way from places like China and open small businesses and shops in the rural areas of this country and compete with local traders,” Trade minister John Bande said.
An IPS report says the effect of this drastic measure has been the closing down by Chinese traders of their businesses in several districts. That is exactly as the Malawian businesspeople may have intended, but in a globalized world it is almost certain that this is not the last that has been heard about this. Civic society organizations have also warned that the measure was discriminatory and may feed xenophobia.
Trade Africa
The goods that African traders sell are increasingly from China anyway. It is one thing for African traders to travel to China to buy goods for resell back home. But it is quite something else when the Chinese themselves come from their country with the goods to sell directly to African consumers. They obviously have many automatic advantages over local traders selling the same goods. Many African traders find themselves simply unable to compete with their Chinese counterparts.
This is one aspect of what drives ill-feelings against Chinese people in many African countries. The Chinese are often considered to be competing in sectors and at levels which it is widely thought (and sometimes legislated) should be the preserve of locals.
While this discussion is taking place in every African country where Chinese traders have developed a presence in recent years, Malawian traders have taken their feelings a step further than those in most other countries. They put pressure on the government to pass The Investment and Export Promotion Act, which from July 31 has confined foreign traders to the country's four biggest urban centers - Lilongwe, Blantyre, Mzuzu and Zomba.
“The new law clearly outlines what kind of businesses foreign investors will be allowed to get involved in. We will not accept foreigners to come all the way from places like China and open small businesses and shops in the rural areas of this country and compete with local traders,” Trade minister John Bande said.
An IPS report says the effect of this drastic measure has been the closing down by Chinese traders of their businesses in several districts. That is exactly as the Malawian businesspeople may have intended, but in a globalized world it is almost certain that this is not the last that has been heard about this. Civic society organizations have also warned that the measure was discriminatory and may feed xenophobia.
Trade Africa
South African movers and shakers for sale to foreign investors?
Writing in South Africa's Business Day, Ron Derby is outraged at an Australian mining investment company's boast that it had put some politically well-connected local businessmen in its pockets, or rather on its board, because of their "strong commercial and government relationships." The Australian company even financed the acquisition of 26% of the equity by the well-connected but apparently cash-poor local, to create an immediate local stake.
"What really concerns and shocks me is the matter-of-fact statement that the rationale behind introducing the partners was their strong government relationships," writes Derby. "To go out there and blatantly tell shareholders that you’ve bought political connectedness speaks of a very corrupt and, more worryingly, an accepted way of doing things."
Funny, isn't it only Africans who are supposed to be corrupt?!
Derby's indignation is understandable and perfectly legitimate but the mining industry is not known for its probity. The small mining company has just been tripped up by its own inexperience at how the game is played by being so open about what the big mining boys would only do more quietly-buy influence.
Welcome to the real world, Derby.
Trade Africa
"What really concerns and shocks me is the matter-of-fact statement that the rationale behind introducing the partners was their strong government relationships," writes Derby. "To go out there and blatantly tell shareholders that you’ve bought political connectedness speaks of a very corrupt and, more worryingly, an accepted way of doing things."
Funny, isn't it only Africans who are supposed to be corrupt?!
Derby's indignation is understandable and perfectly legitimate but the mining industry is not known for its probity. The small mining company has just been tripped up by its own inexperience at how the game is played by being so open about what the big mining boys would only do more quietly-buy influence.
Welcome to the real world, Derby.
Trade Africa
AGOA benefited Chinese apparel exporters in Africa more than African businesspeople
According to a paper on the Eurasia Review, 'US trade policies inadvertently turned Africa into a temporary trade corridor for China.'
How?
In summary, they authors say that AGOA helped to achieve its aim of spurring the growth of U.S.-exporting African enterprises, especially clothes, from its inception to about 2004. From 2005, Chinese apparel exports to the U.S. no longer faced quotas as before, making it more viable to manufacture and export clothes from China to the U.S.
They say AGOA's benefits to African clothes-exporting countries under AGOA diminished from then on, because they had actually been driven by Chinese manufactures coming to AGOA-eligible countries to bypass the U.S. quotas on Chinese clothes.
The Rise And Fall Of (Chinese) African Apparel Exports is required reading.
Trade Africa
How?
In summary, they authors say that AGOA helped to achieve its aim of spurring the growth of U.S.-exporting African enterprises, especially clothes, from its inception to about 2004. From 2005, Chinese apparel exports to the U.S. no longer faced quotas as before, making it more viable to manufacture and export clothes from China to the U.S.
They say AGOA's benefits to African clothes-exporting countries under AGOA diminished from then on, because they had actually been driven by Chinese manufactures coming to AGOA-eligible countries to bypass the U.S. quotas on Chinese clothes.
The Rise And Fall Of (Chinese) African Apparel Exports is required reading.
Trade Africa
Zimbabwe imports US$8.2 billion goods, exports US$5,1 billion in 2012
Zimbabwe...trade deficit is forecast to reach US$2.,8 billion by the end of the year (2012), from total exports of US$5.1 billion against imports of US$8.2 billion.
Sunday Mail
Sunday Mail
Nigeria, Canada trade hits U.S.$3 billion
The trade volume between Nigeria and Canada has risen to $3 billion from $700 million in 2007, said the Nigerian Minister of Foreign Affairs...
Leadership Nigeria
Leadership Nigeria
China's trade with Africa likely to surpass that with U.S., EU in by 2015
This according to a former Chinese vice-minister of commerce, Wei Jianguo.
In 2012, China's trade with Africa will probably hit $220 billion, up 25 percent year-on-year. According to Wei, China's exports to Africa grew 22 percent in the first nine months this year, while imports jumped by 21.5 percent during the period.
The Ministry of Commerce said that in 2011, China's trade with Africa hit $166.3 billion, a jump of 83 percent over 2009.
Currently, the EU is China's largest trade partner, with bilateral trade volume of $567.2 billion in 2011. The US is the second largest trade partner with China, with bilateral trade volume of $446.7 billion, according to the General Administration of Customs. But trade with Africa is expected to close the gap quickly.
"I expect China-Africa trade to see faster growth next year, as more Chinese companies have already been beefing up their business activities on the continent," said Wei, who is vice-chairman and secretary-general of the China Center for International Economic Exchanges, a high-level government think tank.
China's non-financial direct investment in Africa increased 58.9 percent year-on-year to $1.7 billion last year, according to the Ministry of Commerce. By the end of 2011, Chinese investment stock in Africa reached $14.7 billion, up 60 percent compared with 2009.
China Daily
In 2012, China's trade with Africa will probably hit $220 billion, up 25 percent year-on-year. According to Wei, China's exports to Africa grew 22 percent in the first nine months this year, while imports jumped by 21.5 percent during the period.
The Ministry of Commerce said that in 2011, China's trade with Africa hit $166.3 billion, a jump of 83 percent over 2009.
Currently, the EU is China's largest trade partner, with bilateral trade volume of $567.2 billion in 2011. The US is the second largest trade partner with China, with bilateral trade volume of $446.7 billion, according to the General Administration of Customs. But trade with Africa is expected to close the gap quickly.
"I expect China-Africa trade to see faster growth next year, as more Chinese companies have already been beefing up their business activities on the continent," said Wei, who is vice-chairman and secretary-general of the China Center for International Economic Exchanges, a high-level government think tank.
China's non-financial direct investment in Africa increased 58.9 percent year-on-year to $1.7 billion last year, according to the Ministry of Commerce. By the end of 2011, Chinese investment stock in Africa reached $14.7 billion, up 60 percent compared with 2009.
China Daily
Trade between Switzerland and South Africa up 25% since 2007
While Switzerland is ranked sixth when it comes to the value of foreign direct investment (FDI) in South Africa, according to the Swiss Embassy (South Africa), trade between the two countries had risen sharply in the last five years.
South African Deputy Minister of International Relations, Marius Fransman, aid total trade between Switzerland and South Africa had risen by 25% since 2007, while SA exports to Switzerland increased from R8.8 billion in 2007 to over R21 billion in 2011.(1 South African rand = 0.1164 US dollars.)
Switzerland imports mainly platinum, diamonds and other precious metals from South Africa and mainly exports pharmaceutical products to South Africa.
Swiss companies - which include Nestle, Schindler, pharmaceutical company Novarti and electrical engineering giant ABB - employ over 37 000 people in South Africa, all in skilled jobs.
SAnews.gov.za
South African Deputy Minister of International Relations, Marius Fransman, aid total trade between Switzerland and South Africa had risen by 25% since 2007, while SA exports to Switzerland increased from R8.8 billion in 2007 to over R21 billion in 2011.(1 South African rand = 0.1164 US dollars.)
Switzerland imports mainly platinum, diamonds and other precious metals from South Africa and mainly exports pharmaceutical products to South Africa.
Swiss companies - which include Nestle, Schindler, pharmaceutical company Novarti and electrical engineering giant ABB - employ over 37 000 people in South Africa, all in skilled jobs.
SAnews.gov.za
Madagascar to become a major cobalt, nickel exporter
Canadian and South Korean mining investors are expected to invest about $5.5 billion into mining of cobalt in Madgascar.
The Amabatovy mining project has ore deposits expected to last 30 years. It is expected to export an annual average of 60,000 tonnes of nickel and 5,600 tonnes of cobalt, all refined to 99.8 per cent. The refining will be done entirely in Madagascar.
"For transparency purposes, I’d like to announce that the company gave us $25 million that we will invest in social actions, infrastructure, health, education and agriculture,” President Rajoelina said.
The mining project has set aside a further $50 million as a guarantee in order to deal with any ecological issues related to the extraction, the Madagascar leader added.
Africa Review
The Amabatovy mining project has ore deposits expected to last 30 years. It is expected to export an annual average of 60,000 tonnes of nickel and 5,600 tonnes of cobalt, all refined to 99.8 per cent. The refining will be done entirely in Madagascar.
"For transparency purposes, I’d like to announce that the company gave us $25 million that we will invest in social actions, infrastructure, health, education and agriculture,” President Rajoelina said.
The mining project has set aside a further $50 million as a guarantee in order to deal with any ecological issues related to the extraction, the Madagascar leader added.
Africa Review
October 10, 2012
Turkey ups trade with Kenya
Turkish officials said the country is working on doubling the value of its trade with the EAC.
The Turkey-Kenya Joint Economic Commission set up in 2010 helped double the value of trade between the two countries $100 million in 2010 to $214 million in 2011 and is expected to double to $500 million this year.
The number of Turkish companies investing in Kenya also rose from 20 in 2010 to 35 by the end of June 2012, according to the Turkish embassy in Nairobi.
In the early 2012, Turkey’s LTK Trading in partnership with a local company Zynmat Investments Ltd launched a $100 million construction and building materials in Kenya with the target market being the EAC.
TrademarkSA
The Turkey-Kenya Joint Economic Commission set up in 2010 helped double the value of trade between the two countries $100 million in 2010 to $214 million in 2011 and is expected to double to $500 million this year.
The number of Turkish companies investing in Kenya also rose from 20 in 2010 to 35 by the end of June 2012, according to the Turkish embassy in Nairobi.
In the early 2012, Turkey’s LTK Trading in partnership with a local company Zynmat Investments Ltd launched a $100 million construction and building materials in Kenya with the target market being the EAC.
TrademarkSA
Romanian shoe maker steps into Senegal to keep up with Chinese competition
Senegal's domestic shoe manufacturers have been battling to stay afloat in the face of competition from China, including cheap knock-offs of traditional Senegalese shoe styles.
Now comes news from Romania Insider that a Romanian shoe producer will relocate production to Senegal, where it plans to set up a mixed company with a local firm. Senegal's government will provide transport for the equipment, the land plot and the utilities for the Romanian producer’s future factory in Senegal.
“We’re not making a lot of business here, banks don’t get you anywhere, and competition from China is very strong. We also worked for export, for important companies, and the intermediaries stopped payments,” said Marieta Gheorghiu, the main shareholder of Primo Tempo, a footwear producer in Bucharest. “In Senegal at least I know we will find people who want to learn. Here, there are losses and problems everywhere,” she went on.
The footwear producer, with sales of EUR 1 million last year, is betting on the low development of the footwear industry in Senegal. “They needed equipment, know-how, professional training. I will give them all of these, because I am working with people who already do this in Italy. Traditional retail producers have already moved production to Africa to keep up with competition from China. Italians have an industries in Ethiopia, and Spanish producers, in Morocco,” the shoe producer explained.
A group of state representatives from Senegal recently went to Romania as part of the country’s efforts to attract more foreign investments. This comes after the previous Government focused on investing in infrastructure, having built a 13,000 hectare park and having started work on a new airport.
Senegal’s connection to Romania and its aim to attract more Romanian investments came after Romanian businessman Ovidiu Tender signed a concession agreement with the local authorities for the 5,300 kilometer perimeter, valid for 33 years, where it plans to invest some USD 100 million to extract oil on the coast of the African countries Senegal and Guinea – Bissau.
Senegal recently named an economic attache at its Bucharest Consulate, the third country to appoint an economic attache there after the US and French consulates.
Trade Africa
Now comes news from Romania Insider that a Romanian shoe producer will relocate production to Senegal, where it plans to set up a mixed company with a local firm. Senegal's government will provide transport for the equipment, the land plot and the utilities for the Romanian producer’s future factory in Senegal.
“We’re not making a lot of business here, banks don’t get you anywhere, and competition from China is very strong. We also worked for export, for important companies, and the intermediaries stopped payments,” said Marieta Gheorghiu, the main shareholder of Primo Tempo, a footwear producer in Bucharest. “In Senegal at least I know we will find people who want to learn. Here, there are losses and problems everywhere,” she went on.
The footwear producer, with sales of EUR 1 million last year, is betting on the low development of the footwear industry in Senegal. “They needed equipment, know-how, professional training. I will give them all of these, because I am working with people who already do this in Italy. Traditional retail producers have already moved production to Africa to keep up with competition from China. Italians have an industries in Ethiopia, and Spanish producers, in Morocco,” the shoe producer explained.
A group of state representatives from Senegal recently went to Romania as part of the country’s efforts to attract more foreign investments. This comes after the previous Government focused on investing in infrastructure, having built a 13,000 hectare park and having started work on a new airport.
Senegal’s connection to Romania and its aim to attract more Romanian investments came after Romanian businessman Ovidiu Tender signed a concession agreement with the local authorities for the 5,300 kilometer perimeter, valid for 33 years, where it plans to invest some USD 100 million to extract oil on the coast of the African countries Senegal and Guinea – Bissau.
Senegal recently named an economic attache at its Bucharest Consulate, the third country to appoint an economic attache there after the US and French consulates.
Trade Africa
Russian concerns to invest in Zimbabwe
The scramble for Zimbabwe's vast but largely untapped minerals intensified this week with Russian clinching lucrative deals that analysts fear would see President Robert Mugabe's broke government mortgaging the resources. The southern African country is in dire need of foreign direct investment as investors have stayed away for the past decade citing Mugabe's alleged misrule.
Russian Industry and Trade Minister Denis Manturov and a business delegation including executives from Russian energy giant Gazprom and Renova Group of Companies, a diversified company with interests in cross-cutting sectors flew to Harare to seal some of the deals.
The two countries concluded trade deals which officials said will also see the establishment of a business council between the two countries.
Economic Planning Minister Tapiwa Mashakada says the deals were part of government efforts to promote trade and investment with the BRICs group of emerging economies which includes Brazil, Russia, India, China and South Africa.
Manturov said Russian companies were looking for opportunities in the mining industry, metallurgy, aircraft building, construction of infrastructure and power engineering facilities, as well as transportation, storage and processing of energy resources.
Trade between Russia and Zimbabwe increased from $1,5 million in 2009 to $5,5 million last year.
Of late, the Chinese, Indians, and South Africans have been brokering multi-million dollar deals in various sectors of Zimbabwe's economy ranging from mining, agriculture and energy to manufacturing.
Reports said Ruschrome Mining, a company jointly owned by Zimbabwe and the Russian government's Centre for Business Cooperation with Foreign Countries, received a 25-year licence for the exploration and development of platinum deposits.
The Russians are currently actively involved in gold and diamond mining at Charleswood Estate, a farm expropriated by government from Movement for Democratic Change treasurer-general Roy Bennett.
Africa Report
Russian Industry and Trade Minister Denis Manturov and a business delegation including executives from Russian energy giant Gazprom and Renova Group of Companies, a diversified company with interests in cross-cutting sectors flew to Harare to seal some of the deals.
The two countries concluded trade deals which officials said will also see the establishment of a business council between the two countries.
Economic Planning Minister Tapiwa Mashakada says the deals were part of government efforts to promote trade and investment with the BRICs group of emerging economies which includes Brazil, Russia, India, China and South Africa.
Manturov said Russian companies were looking for opportunities in the mining industry, metallurgy, aircraft building, construction of infrastructure and power engineering facilities, as well as transportation, storage and processing of energy resources.
Trade between Russia and Zimbabwe increased from $1,5 million in 2009 to $5,5 million last year.
Of late, the Chinese, Indians, and South Africans have been brokering multi-million dollar deals in various sectors of Zimbabwe's economy ranging from mining, agriculture and energy to manufacturing.
Reports said Ruschrome Mining, a company jointly owned by Zimbabwe and the Russian government's Centre for Business Cooperation with Foreign Countries, received a 25-year licence for the exploration and development of platinum deposits.
The Russians are currently actively involved in gold and diamond mining at Charleswood Estate, a farm expropriated by government from Movement for Democratic Change treasurer-general Roy Bennett.
Africa Report
Nigeria, Britain pledge to double trade to $13 billion by 2014
With current trade value standing at £4 billion ($6.4 billion), Nigeria and the United Kingdom have expressed optimism as both countries look to double their bilateral trade by 2014 to £8 billion ($13 billion) by 2014.
To meet the trade target, Nigeria’s Minister of Trade and Investment, Olusegun Aganga and the United Kingdom Secretary, Department for Business, Innovation and Skills, Vince Cable said at a joint press conference yesterday that factors militating against effective trade between the two countries had been identified and were now being addressed to meet the 2014 deadline.
The Minister said the Small and Medium Enterprises sector and the Diaspora group will also be looked into.
According to Aganga, “There is no shortage of interest in investment in Nigeria. We have all it takes to attract investment. Our environment looks great. We have fertile land, good whether condition, 34 solid minerals in commercial quantity all of which make Nigeria an investment destination of choice,” he stated.
Aganga said that Nigeria is passionate about creating enabling environment for Foreign Direct Investments (FDIs).
Meanwhile, United Kingdom Secretary, Department for Business, Innovation and Skills, Vince Cable assures that the focus of the United Kingdom in its trade relation with Nigeria is not the issue of which country leads in the volume of trade, but an assurance of trade growth in both countries.
“We do not worry if there is an in balance against the United Kingdom. If we do not import crude oil from Nigeria, we could import from other countries. The important thing is that trade is growing in both directions. That is the key because it is mutually beneficial. We want to see barriers being removed.”
He declared that his country “ is also committed to working with Nigerian authorities to make the business climate here more attractive to investors. Improvements in power supply, transportation and legislation that protects business investment can make a real difference to Nigeria’s already impressive growth rates.”
In 2011, the UK’s exports of goods and service to Nigeria increased by 13 percent and trade overall grew by 35 percent.
Cable said with this, both countries are on track to meet their shared commitment to double trade to eight billion by 2014 from 2010.
Ventures Africa
To meet the trade target, Nigeria’s Minister of Trade and Investment, Olusegun Aganga and the United Kingdom Secretary, Department for Business, Innovation and Skills, Vince Cable said at a joint press conference yesterday that factors militating against effective trade between the two countries had been identified and were now being addressed to meet the 2014 deadline.
The Minister said the Small and Medium Enterprises sector and the Diaspora group will also be looked into.
According to Aganga, “There is no shortage of interest in investment in Nigeria. We have all it takes to attract investment. Our environment looks great. We have fertile land, good whether condition, 34 solid minerals in commercial quantity all of which make Nigeria an investment destination of choice,” he stated.
Aganga said that Nigeria is passionate about creating enabling environment for Foreign Direct Investments (FDIs).
Meanwhile, United Kingdom Secretary, Department for Business, Innovation and Skills, Vince Cable assures that the focus of the United Kingdom in its trade relation with Nigeria is not the issue of which country leads in the volume of trade, but an assurance of trade growth in both countries.
“We do not worry if there is an in balance against the United Kingdom. If we do not import crude oil from Nigeria, we could import from other countries. The important thing is that trade is growing in both directions. That is the key because it is mutually beneficial. We want to see barriers being removed.”
He declared that his country “ is also committed to working with Nigerian authorities to make the business climate here more attractive to investors. Improvements in power supply, transportation and legislation that protects business investment can make a real difference to Nigeria’s already impressive growth rates.”
In 2011, the UK’s exports of goods and service to Nigeria increased by 13 percent and trade overall grew by 35 percent.
Cable said with this, both countries are on track to meet their shared commitment to double trade to eight billion by 2014 from 2010.
Ventures Africa
Mobile phone penetration hits 98% in Ghana
The total cellular/mobile voice subscriber base in Ghana as at August 2012 stood at 24,438,983, which is 98% of the Ghanaian population estimated at 25million, according to the National Communication Authority (NCA).
But this does not necessarily mean over 24 million Ghanaians have mobile phone lines, because some individuals have more than one mobile line, while others do not have.
Moreover, even though all the telcos claim the figures they report to the NCA represent active subscriptions within the 90-day reporting period, in reality not all the SIM cards are active.
Market leader MTN continued in the lead crossing the 11millionth mark to reach 11,017,581, representing a 45% market share.
This means MTN increased subscribers but lost 0.8% market share from 45.8% in July to 45% in August.
But MTN is well on its way to achieve the 95,000 additional subscribers targeted for this year. The August figures show it has added 768,053 subscribers since the beginning of the year, which is more than 75% of the 950,000 with September – December figures yet to be reported.
Vodafone made a u-turn in August from a subscriber base decline of 61,428 between June and July to an increase of 143,283 to reach 4,901,555 in August. This is more than twice what it lost in July, and brings Vodafone’s market share to 20%.
On the contrary, Tigo, which had made a turnaround in June and July, from its eight months decline, recorded a marginal decline in August, contrary to projections by its General Manager, Adil El Youssefi in an exclusive interview with Adom News recently.
Youssefi had confidently stated that he and his team had figured out what the challenges at Tigo were and what needed to be done to fix them, so Ghanaians could expect “another turnaround in August”.
But the NCA figures show Tigo recorded a marginal loss from 3.699million subscribers in July to 3.685million in August, which represents 15% market share, a loss of 0.6% market share from July.
Airtel increased its subscriber base to 3,042,409 representing 12% of the total market share, while Glo also continued to show strength, increasing from 1.15million in July to 1.6 million subscribers in August, representing 7% market share in just four months of commercial operations in Ghana.
Expresso also continued its decline and reached 178,799, which represents 0.7% market share.
Meanwhile, fixed line subscriptions continued to decline, reaching 270,761 in August, from over 289,000 in February this year. Vodafone is the runaway leader in fixed line operations with over 260,000 lines, while Airtel keeps a little over 10,000 lines.
Joy FM
But this does not necessarily mean over 24 million Ghanaians have mobile phone lines, because some individuals have more than one mobile line, while others do not have.
Moreover, even though all the telcos claim the figures they report to the NCA represent active subscriptions within the 90-day reporting period, in reality not all the SIM cards are active.
Market leader MTN continued in the lead crossing the 11millionth mark to reach 11,017,581, representing a 45% market share.
This means MTN increased subscribers but lost 0.8% market share from 45.8% in July to 45% in August.
But MTN is well on its way to achieve the 95,000 additional subscribers targeted for this year. The August figures show it has added 768,053 subscribers since the beginning of the year, which is more than 75% of the 950,000 with September – December figures yet to be reported.
Vodafone made a u-turn in August from a subscriber base decline of 61,428 between June and July to an increase of 143,283 to reach 4,901,555 in August. This is more than twice what it lost in July, and brings Vodafone’s market share to 20%.
On the contrary, Tigo, which had made a turnaround in June and July, from its eight months decline, recorded a marginal decline in August, contrary to projections by its General Manager, Adil El Youssefi in an exclusive interview with Adom News recently.
Youssefi had confidently stated that he and his team had figured out what the challenges at Tigo were and what needed to be done to fix them, so Ghanaians could expect “another turnaround in August”.
But the NCA figures show Tigo recorded a marginal loss from 3.699million subscribers in July to 3.685million in August, which represents 15% market share, a loss of 0.6% market share from July.
Airtel increased its subscriber base to 3,042,409 representing 12% of the total market share, while Glo also continued to show strength, increasing from 1.15million in July to 1.6 million subscribers in August, representing 7% market share in just four months of commercial operations in Ghana.
Expresso also continued its decline and reached 178,799, which represents 0.7% market share.
Meanwhile, fixed line subscriptions continued to decline, reaching 270,761 in August, from over 289,000 in February this year. Vodafone is the runaway leader in fixed line operations with over 260,000 lines, while Airtel keeps a little over 10,000 lines.
Joy FM
Oil smuggling prejudices Nigerian economy but benefits neighbors
Countless volumes have been written about the many problems that plague Nigeria's oil industry. The Nigerian people and economy simply do not get full value for their oil because of massive corruption, inefficiency and uncountable 'leakages' of the oil along the entire value chain.
One of those leakages is unaccounted for oil that finds its way to other countries in West Africa, benefiting those countries with cheap fuel but prejudicing the Nigerian economy.
For example, it is said that as much as 75% of Benin's fuel supply is smuggled in from neighboring Nigeria. Measures to stop this fairly open trade in Nigeria are half-hearted, partly because it is an officially 'underground' but substantial economy on which many people depend.
What the article does not address is that the smuggling operations may also thrive because they service needs much more efficiently than the plodding, bureaucratic official channels which are also riddled with many levels of corruption.
The Guardian's October 2 2012 story, ' Trade in smuggled fuel from Nigeria oils economies of west Africa,' is sad but interesting reading.
Trade Africa
One of those leakages is unaccounted for oil that finds its way to other countries in West Africa, benefiting those countries with cheap fuel but prejudicing the Nigerian economy.
For example, it is said that as much as 75% of Benin's fuel supply is smuggled in from neighboring Nigeria. Measures to stop this fairly open trade in Nigeria are half-hearted, partly because it is an officially 'underground' but substantial economy on which many people depend.
What the article does not address is that the smuggling operations may also thrive because they service needs much more efficiently than the plodding, bureaucratic official channels which are also riddled with many levels of corruption.
The Guardian's October 2 2012 story, ' Trade in smuggled fuel from Nigeria oils economies of west Africa,' is sad but interesting reading.
Trade Africa
Zambia: minimum wage rise has unintended consequences
In July, the Zimbabwean government decreed minimum wage increments across various economic sectors that saw pay packets go up as much as five-fold. This was obviously welcomed by groups such as domestic workers, whose minimum wage had been as low as $30 a month.
Well-intended as the plan to ensure something approaching a living wage was, such big and sudden increases had to have many other consequences-and they have.
The cost of business has suddenly gone up significantly for many companies. They are predictably trying to recoup the higher costs by raising the prices of their goods and services, causing across the board increases
(Minimum wage leads to steep food price rises.)
For example, 'n the past month, the cost of 25kg bag of the staple ground maize meal has increased by $1 to $8.50, while other farm produce prices have also risen..
These are disastrous increases which threaten to wipe out a significant part of the benefits of the pay raises, and can have negative political consequences for the same government that was lauded for the pay increases.
Zambian cotton farmers, already struggling with many other viability issues, found that the wage increases made it much more expensive for them to higher labor and to break even, forcing many of them against the wall in a year where a global glut has depressed prices.
Trade Africa
Well-intended as the plan to ensure something approaching a living wage was, such big and sudden increases had to have many other consequences-and they have.
The cost of business has suddenly gone up significantly for many companies. They are predictably trying to recoup the higher costs by raising the prices of their goods and services, causing across the board increases
(Minimum wage leads to steep food price rises.)
For example, 'n the past month, the cost of 25kg bag of the staple ground maize meal has increased by $1 to $8.50, while other farm produce prices have also risen..
These are disastrous increases which threaten to wipe out a significant part of the benefits of the pay raises, and can have negative political consequences for the same government that was lauded for the pay increases.
Zambian cotton farmers, already struggling with many other viability issues, found that the wage increases made it much more expensive for them to higher labor and to break even, forcing many of them against the wall in a year where a global glut has depressed prices.
Trade Africa
Multinational companies illicitly transfer $50 billion out of Africa annually
Former South African president Thabo Mbeki and head of the High-Level Panel on Illicit Financial Flows from Africa (African Union) to examine these issues said, "It's clear that part of this illicit flow comes from activities that are carried out by multi-national corporations," he said, explaining that the transfer of such large quantities of revenue must involve international corporations."
The $50 billion that 'leaks out' of Africa is twice the amount the continent receives in foreign aid.
Amongst the means used to do this kind of smuggling are ax evasion, over-invoicing and under-pricing.
A recent report by the U.S.-based research organization Global Financial Integrity (GFI) found the most common way illicit money is moved across borders is through international trade and money laundering, which accounts for about 60 percent of this illicit activity.
According to GFI's study, corruption by government officials only amounts to about three percent of illegal transfers.
The report on Illicit Financial Flows from Africa: Scale and Developmental Challenges says that since the early 1960s when multinationals entered Africa, “foreign direct investment by the multinationals could have been as high as US$ 1.5 trillion a year, although most is directed towards the developed world.”
It notes that the trend has been increasing over time and especially in the last decade, with an annual average illicit financial flow of US$ 50 billion between 2000 and 2008 against a yearly average of only US$ 9 billion for the period 1970-1999.
It records great variations between regions, countries and even between sectors of activities.
“Two-third of the outflows was attributed to only two regions, namely West Africa and North Africa, with 38% and 28%, respectively.
“Each of the other three regions (Southern, Eastern and Central Africa) registered about 10% of total Africa’s illicit financial flows” perhaps because of lack of data and due to the poor quality of available data, the report warns.
The consequences of these illegal transfers on Africa are dire, according to the report findings.
“Ultimately, Illicit financial flows worsens the socio-economic fabric of poor communities and leads to shorter life expectancy due to limited spending in providing social services such as health care, the loss of US$ 10 for every US$ 1 received in aid is both economically and financially detrimental to the continent”, it says.
Trade Africa
The $50 billion that 'leaks out' of Africa is twice the amount the continent receives in foreign aid.
Amongst the means used to do this kind of smuggling are ax evasion, over-invoicing and under-pricing.
A recent report by the U.S.-based research organization Global Financial Integrity (GFI) found the most common way illicit money is moved across borders is through international trade and money laundering, which accounts for about 60 percent of this illicit activity.
According to GFI's study, corruption by government officials only amounts to about three percent of illegal transfers.
The report on Illicit Financial Flows from Africa: Scale and Developmental Challenges says that since the early 1960s when multinationals entered Africa, “foreign direct investment by the multinationals could have been as high as US$ 1.5 trillion a year, although most is directed towards the developed world.”
It notes that the trend has been increasing over time and especially in the last decade, with an annual average illicit financial flow of US$ 50 billion between 2000 and 2008 against a yearly average of only US$ 9 billion for the period 1970-1999.
It records great variations between regions, countries and even between sectors of activities.
“Two-third of the outflows was attributed to only two regions, namely West Africa and North Africa, with 38% and 28%, respectively.
“Each of the other three regions (Southern, Eastern and Central Africa) registered about 10% of total Africa’s illicit financial flows” perhaps because of lack of data and due to the poor quality of available data, the report warns.
The consequences of these illegal transfers on Africa are dire, according to the report findings.
“Ultimately, Illicit financial flows worsens the socio-economic fabric of poor communities and leads to shorter life expectancy due to limited spending in providing social services such as health care, the loss of US$ 10 for every US$ 1 received in aid is both economically and financially detrimental to the continent”, it says.
Trade Africa
October 06, 2012
'EPAs will entrench Africa's dependence on Europe'
The negotiations between the European Union and African countries over concluding 'economic partnership agreements' keep dragging on, with no conclusion seemingly in sight.
Peter M. Onumah, writing in the Ghanaian Chronicle, believes signing the EPAs would be no less than 'selling the continent back into slavery.'
He argues, 'The partnership Europe has been touting substantially means perpetually subordinating raw-material producing Africa to the economic demands of hyper-industrialized Europe. This is consistent with the euro-America design formulated and religiously pursued since the 16th century.'
Onumah sees the EPA as just another stage in the West desire to control and benefit from Africa's natural resources.
'The growth and expansion of the industrial revolution ushered in the quest for and control of spheres of influence for markets and raw materials. The sequel was the scramble, partition and colonization of suited to the primary purpose of their coming to Africa; that is to exploit the human and natural resources of the continent.'
Peter M. Onumah, writing in the Ghanaian Chronicle, believes signing the EPAs would be no less than 'selling the continent back into slavery.'
He argues, 'The partnership Europe has been touting substantially means perpetually subordinating raw-material producing Africa to the economic demands of hyper-industrialized Europe. This is consistent with the euro-America design formulated and religiously pursued since the 16th century.'
Onumah sees the EPA as just another stage in the West desire to control and benefit from Africa's natural resources.
'The growth and expansion of the industrial revolution ushered in the quest for and control of spheres of influence for markets and raw materials. The sequel was the scramble, partition and colonization of suited to the primary purpose of their coming to Africa; that is to exploit the human and natural resources of the continent.'
Nor is he impressed by Africa's reaction to what he sees as the grand European scheme to keep Africa weak, divided and subject to its whims.
'The alien systems they set up have over the years been so pervasive in African societies that the beneficiaries, particularly the educated people, conceive of themselves as Lusophone, Anglophone or francophone. In effect, they are saying they'd rather forget about their own culture.'
'Europe and America are very apprehensive of a truly independent Africa. They are now hyper- industrialized and they still need the raw materials: gold, manganese, cobalt, diamonds, timber, cocoa, ivory and many others. They still need the African market; so Africa should continue to remain hewers of wood and drawers of water. It must be clear to all Africans that the euro-Americans are still hanging onto Africa
where they are exploiting its human and natural resources.'
What to do then?
'Africans should re-think their historical perspective and fashion out systems of education, administration and governance with an ideology and philosophy rooted and grounded in their own culture. It is going to be a
huge challenge; but with determination and the fundamental ideology of "know thyself" a radical outlook can be achieved.'
Trade Africa
'Europe and America are very apprehensive of a truly independent Africa. They are now hyper- industrialized and they still need the raw materials: gold, manganese, cobalt, diamonds, timber, cocoa, ivory and many others. They still need the African market; so Africa should continue to remain hewers of wood and drawers of water. It must be clear to all Africans that the euro-Americans are still hanging onto Africa
where they are exploiting its human and natural resources.'
What to do then?
'Africans should re-think their historical perspective and fashion out systems of education, administration and governance with an ideology and philosophy rooted and grounded in their own culture. It is going to be a
huge challenge; but with determination and the fundamental ideology of "know thyself" a radical outlook can be achieved.'
Trade Africa
Angolan president's daughter increases share in Portugese internet service company
There have been a number of recent articles about a relative reversal of fortune between Portugal and a number of its former colonies.
Portugal, one of Europe's smaller economies, is also reeling from the effects of Europe's debt crisis. The economy is stagnant, jobs are increasingly hard to come by, state benefits are decreasing and many people are looking to emigrate, with booming former colonies like Angola and Brazil being popular destinations.
As part of conditions for getting help from the European Union and IMF to deal with the debt problem, the state is required to sell off a lot of assets, including shareholdings in various companies.
Isabel dos Santos, daughter of Angola's long-time unelected president, has for many years been a business powerhouse in her own country as well as in former colonial power Portugal. Recent reports say her tentacles are spreading into many other countries in southern Africa and elsewhere.
dos Santos is the largest shareholder in Portugal pay-TV and Internet provider Zon Multimedia. A June 13 Reuters report says she will buy 10.96 percent more of the company's stocks, bringing her shareholding up to 28.8%.
dos Santos may be a shrewd businessperson, but no doubt daddy's position and influence have been a great help in her acquisitions at home and abroad. Critics have gone as far as accusing the family of being no more than a venal looting cartel.
Still, it is difficult to escape the symbolic irony of an Angolan 'buying up' the assets of the once all-powerful former colonial master, something that would have been unthinkable in 1975 when Angola got its independence from Portugal.
How the world is changing.
Trade Africa
Portugal, one of Europe's smaller economies, is also reeling from the effects of Europe's debt crisis. The economy is stagnant, jobs are increasingly hard to come by, state benefits are decreasing and many people are looking to emigrate, with booming former colonies like Angola and Brazil being popular destinations.
As part of conditions for getting help from the European Union and IMF to deal with the debt problem, the state is required to sell off a lot of assets, including shareholdings in various companies.
Isabel dos Santos, daughter of Angola's long-time unelected president, has for many years been a business powerhouse in her own country as well as in former colonial power Portugal. Recent reports say her tentacles are spreading into many other countries in southern Africa and elsewhere.
dos Santos is the largest shareholder in Portugal pay-TV and Internet provider Zon Multimedia. A June 13 Reuters report says she will buy 10.96 percent more of the company's stocks, bringing her shareholding up to 28.8%.
dos Santos may be a shrewd businessperson, but no doubt daddy's position and influence have been a great help in her acquisitions at home and abroad. Critics have gone as far as accusing the family of being no more than a venal looting cartel.
Still, it is difficult to escape the symbolic irony of an Angolan 'buying up' the assets of the once all-powerful former colonial master, something that would have been unthinkable in 1975 when Angola got its independence from Portugal.
How the world is changing.
Trade Africa
Chinese shoe factory in Ethiopia pays wages 20% of indigenous companies
China's explosive rise is bringing opportunity but also causing consternation.
Chinese investors of all grades are all over Africa, but the feelings towards them are very mixed. Governments generally welcome them with open arms. Ordinary people generally welcome the inexpensive Chinese goods, but are often reported as not having warm and fuzzy feelings towards the Chinese themselves, for a whole host of reasons.
A particularly sore point is the issue of working conditions in Chinese companies. There seems to be much disgruntlement at what are often seen as unfair working conditions, from pay to hours worked to general treatment by the Chinese managers.
The BBC website has an interesting article asking, 'China brings jobs to Ethiopia but at what cost?'
A Chinese factory in Addis Ababa produces 2000 pairs of shoes a day for a number of international brands. That's just the kind of investment that all African countries are trying to attract, so that's good, isn't it?
Benefits for the workers: an on-site canteen, tennis court, supplied work uniforms. And the manager says free worker accommodation is coming. Sounds like a good investment so far. But wait a minute; 'the workers often receive a wage which is only a fifth of what a worker in an indigenous factory would receive!'
It's not hard to figure out what is going on. Just like a couple of decades ago Western companies moved their manufacturing to China and Asia in general for the much lower wages, some Chinese companies are in turn moving their operations to where they can pay yet lower wages. The host government may argue, as China's once did/does, that the low wages are compensated for by many other advantages for the country (skills transfer, etc) but this is probably of small consolation to the workers. This is particularly so if indigenous Ethiopian companies pay as much as five times more.
The factory manager seems to defend the low pay by essentially saying the company is doing the workers a favor by teaching them shoe-making skills. According to the article, 'She is adamant that after their training, workers can choose to remain or to work for other shoe factories.'
Yes, of course, but is the company mainly a shoe-making training school, or is it mainly a profit-making entity? If the latter, which it obviously is, the imparting of skills, welcome as it is, cannot be considered an excuse for paying wages said to be 75% lower than the prevailing norm.
The article is not particularly probing or in depth, so there is a lot of detail and context lacking, making it difficult to draw any firm conclusions. However, this is an excellent example of how where jobs are difficult to find and few, people are happy to be employed but at the same time resentfully feel exploited.
Investment indeed, but at what cost? At whose real benefit? Are those benefits remotely fairly equitably shared, or are they overwhelmingly in favor of one party over the other?
The story makes it clear that the frequent articles one now reads about how many millions or billions a country has attracted in investment hide as much as they reveal. There are some shoe factory workers in Addis Ababa who are probably glad to be employed, but may not be jumping up and down with joy when they contemplate the conditions and ironies of their lot.
Trade Africa
Chinese investors of all grades are all over Africa, but the feelings towards them are very mixed. Governments generally welcome them with open arms. Ordinary people generally welcome the inexpensive Chinese goods, but are often reported as not having warm and fuzzy feelings towards the Chinese themselves, for a whole host of reasons.
A particularly sore point is the issue of working conditions in Chinese companies. There seems to be much disgruntlement at what are often seen as unfair working conditions, from pay to hours worked to general treatment by the Chinese managers.
The BBC website has an interesting article asking, 'China brings jobs to Ethiopia but at what cost?'
A Chinese factory in Addis Ababa produces 2000 pairs of shoes a day for a number of international brands. That's just the kind of investment that all African countries are trying to attract, so that's good, isn't it?
Benefits for the workers: an on-site canteen, tennis court, supplied work uniforms. And the manager says free worker accommodation is coming. Sounds like a good investment so far. But wait a minute; 'the workers often receive a wage which is only a fifth of what a worker in an indigenous factory would receive!'
It's not hard to figure out what is going on. Just like a couple of decades ago Western companies moved their manufacturing to China and Asia in general for the much lower wages, some Chinese companies are in turn moving their operations to where they can pay yet lower wages. The host government may argue, as China's once did/does, that the low wages are compensated for by many other advantages for the country (skills transfer, etc) but this is probably of small consolation to the workers. This is particularly so if indigenous Ethiopian companies pay as much as five times more.
The factory manager seems to defend the low pay by essentially saying the company is doing the workers a favor by teaching them shoe-making skills. According to the article, 'She is adamant that after their training, workers can choose to remain or to work for other shoe factories.'
Yes, of course, but is the company mainly a shoe-making training school, or is it mainly a profit-making entity? If the latter, which it obviously is, the imparting of skills, welcome as it is, cannot be considered an excuse for paying wages said to be 75% lower than the prevailing norm.
The article is not particularly probing or in depth, so there is a lot of detail and context lacking, making it difficult to draw any firm conclusions. However, this is an excellent example of how where jobs are difficult to find and few, people are happy to be employed but at the same time resentfully feel exploited.
Investment indeed, but at what cost? At whose real benefit? Are those benefits remotely fairly equitably shared, or are they overwhelmingly in favor of one party over the other?
The story makes it clear that the frequent articles one now reads about how many millions or billions a country has attracted in investment hide as much as they reveal. There are some shoe factory workers in Addis Ababa who are probably glad to be employed, but may not be jumping up and down with joy when they contemplate the conditions and ironies of their lot.
Trade Africa
Relationship with China is a 'boon,' but Africa needs to also be on its guard
Zambian economist Dambisa Moyo has made quite a name for herself by arguing against the aid model of economic interventions in Africa.
She has now written an article countering the notion that China's growing economic enagement with Africa is exploitative, as implied by U.S secretary of state Hilary Clinton on a recent visit to Moyo's home country.
"Despite all the scaremongering, China’s motives for investing in Africa are actually quite pure," Moyo argues, suggesting it is a result of the west's relatively waning influence in Africa.
Invoking her long-established criticisms of western aid, Moyo argues, "The fact that so many African governments can stay in power by relying on foreign aid that has few strings attached, instead of revenues from their own populations, allows corrupt politicians to remain in charge. Thankfully, the decrease in the flow of Western aid since the 2008 financial crisis offers a chance to remedy this structural failure so that, like others in the world, Africans can finally hold their governments accountable."
Ends Moyo, "And China’s rush for resources has spawned much-needed trade and investment and created a large market for African exports — a huge benefit for a continent seeking rapid economic growth."
This is all true and positive, but there is nothing particularly new Moyo brings to the discussion about the pros and cons of China's role in Africa, and she is surprisingly non-comittal about the criticisms of aspects of it exppressed even by supporters of the relationship.
Just as with its relationship with the west, Africa's growing relationship with China cannot be described in narrow all good/all bad terms, as suggested by Moyo's ascribing of a 'pure' motive to the rising power's Africa push.
'Beinjing, a Boon for Africa' reads more like a public relations script for China than an article from the bold, incisive thinker that Moyo has earned the reputation of being. If Africa were to take advantage of the many new opportunities presented by China while being depissaionate in evaluating and seeking to protect itself against the potential pitfalls, perhaps it might avoid the many problems it has experienced with its long, deep but often unhappy relationship with the west.
One reads Moyo's New York Times article with a certain amount of disappointment, not because of any holes in her argument, but the lack of any new perspectives, and the lack of even a mention of the reasons that China is welcomed all across Africa, and yet also not particularly liked, as incidents against its citizens in Zambia and elsewhere have shown.
Trade Africa
She has now written an article countering the notion that China's growing economic enagement with Africa is exploitative, as implied by U.S secretary of state Hilary Clinton on a recent visit to Moyo's home country.
"Despite all the scaremongering, China’s motives for investing in Africa are actually quite pure," Moyo argues, suggesting it is a result of the west's relatively waning influence in Africa.
Invoking her long-established criticisms of western aid, Moyo argues, "The fact that so many African governments can stay in power by relying on foreign aid that has few strings attached, instead of revenues from their own populations, allows corrupt politicians to remain in charge. Thankfully, the decrease in the flow of Western aid since the 2008 financial crisis offers a chance to remedy this structural failure so that, like others in the world, Africans can finally hold their governments accountable."
Ends Moyo, "And China’s rush for resources has spawned much-needed trade and investment and created a large market for African exports — a huge benefit for a continent seeking rapid economic growth."
This is all true and positive, but there is nothing particularly new Moyo brings to the discussion about the pros and cons of China's role in Africa, and she is surprisingly non-comittal about the criticisms of aspects of it exppressed even by supporters of the relationship.
Just as with its relationship with the west, Africa's growing relationship with China cannot be described in narrow all good/all bad terms, as suggested by Moyo's ascribing of a 'pure' motive to the rising power's Africa push.
'Beinjing, a Boon for Africa' reads more like a public relations script for China than an article from the bold, incisive thinker that Moyo has earned the reputation of being. If Africa were to take advantage of the many new opportunities presented by China while being depissaionate in evaluating and seeking to protect itself against the potential pitfalls, perhaps it might avoid the many problems it has experienced with its long, deep but often unhappy relationship with the west.
One reads Moyo's New York Times article with a certain amount of disappointment, not because of any holes in her argument, but the lack of any new perspectives, and the lack of even a mention of the reasons that China is welcomed all across Africa, and yet also not particularly liked, as incidents against its citizens in Zambia and elsewhere have shown.
Trade Africa
Libya 2015 oil target of 2 million bpd depends on security situation
Many people suspected the western world's 2011 bombing campaign in Libya was more about securing access to oil than to 'democracy and human rights.'
While a lot of the country's infrastructure was destroyed in the several months of the unprecedented bombing that led to the ouster and death of strongman Muammar Gaddafi, the oil sector is back on its feet faster than expected.
Reuters reports output is up to pre-war levels of 1.6 million barrels per day. However, reaching the 2015 target of 2 million per day could be delayed by the present insecurity and weak central government. Thee foreign workers on which production heavily depends are reluctant to committ themselves to Libya because of fear of violence, especially in the wake of the recent killing of the U.S. ambassador, Chris Stevens.
http://www.tradeafricablog.com/
While a lot of the country's infrastructure was destroyed in the several months of the unprecedented bombing that led to the ouster and death of strongman Muammar Gaddafi, the oil sector is back on its feet faster than expected.
Reuters reports output is up to pre-war levels of 1.6 million barrels per day. However, reaching the 2015 target of 2 million per day could be delayed by the present insecurity and weak central government. Thee foreign workers on which production heavily depends are reluctant to committ themselves to Libya because of fear of violence, especially in the wake of the recent killing of the U.S. ambassador, Chris Stevens.
http://www.tradeafricablog.com/
Zambia approves $832 million Chinese copper project
A unit of China Nonferrous Mining Corp has won Zambian approval to build a $832 million copper mine that will add 60,000 tonnes to the country's annual output of the metal, a company spokesman said on September 20.
Zambia's environmental management agency, whose approval is required for all large infrastructure projects, has allowed NFC Africa Mining Corp to proceed to with its South East Ore Body Project, about 400 km (250 miles) northwest of Lusaka, NFC Africa spokesman Nelson Jilowa told Reuters.
Reuters
Zambia's environmental management agency, whose approval is required for all large infrastructure projects, has allowed NFC Africa Mining Corp to proceed to with its South East Ore Body Project, about 400 km (250 miles) northwest of Lusaka, NFC Africa spokesman Nelson Jilowa told Reuters.
Reuters
South Africa looks more to Africa for trade
* Oil imports from Nigeria up almost five fold to 615,834 tonnes in March versus 127,376 tonnes in the same month in 2011, in large part because of western pressure for South Africa to reduce trade with Iran. South Africa almost halved oil imports from Iran between March and April 2012.
.* Economic turmoil in Europe, South Africa's biggest trading partner, has also made South Africa see the need for diversifying its economic partnerships.
* South Africa has long had an aloof, dismissive attitude to the rest of Africa because of its advanced economy and also because of the mindset cultivated during the apartheid days. This mindset is slowly beginning to change as South Africa interacts more with the rest of Africa.
more...Reuters
.* Economic turmoil in Europe, South Africa's biggest trading partner, has also made South Africa see the need for diversifying its economic partnerships.
* South Africa has long had an aloof, dismissive attitude to the rest of Africa because of its advanced economy and also because of the mindset cultivated during the apartheid days. This mindset is slowly beginning to change as South Africa interacts more with the rest of Africa.
more...Reuters
Zambia's ties with China grow, but popular anti-Chinese resentment also persists
Zambian president Michael Sata has been in power for a year now. As an opposition politician Sata had made populist statements strongly criticising about the labor and general business practices of increasingly influential Chinese investors. It was thought by some that as president he might seek to constrain Zambia's ties with China.
Realpolitik made sure that did not happen. China has been the biggest mining investor in Zambia for some years, and its companies, many of them with the backing of their government in Beijing, are credited with reviving Zambia's once moribund copper industry, the country's economic engine.
Any early Chinese fears of what Sata's presidency would mean for Chinese investors have largely lifted, and economic ties between the two countries have continued to grow.
The once fiery critic of China began to soften his stance as soon as he assumed office, saying in March this year to a group of visiting business executives, "I would encourage you to bring more Chinese investors to invest in various areas of investment in the country especially mineral exploration. We would also like you to get involved in agriculture, textile and many other sectors. The investment has benefited both Zambia and China. Therefore, every expansion in investment should be for the mutual benefit of the two countries and its people."
One of the visiting businessmen mentioned, ""The US$ 400 million Mulyashi Mining Project in Luanshya will commence production by the end of this month. And our next project is the $ 800 million South East Ore body at Chambishi Mine. This is the plan for our projects in the near future."
It is hardly surprising that Sata changed his tune rather quickly on steeping into office. But while Chinese investment is welcomed, the general disgruntlement about the state of relations between Chinese businesspeople and Zambians at various levels remains. Work disagreements that might normally be resolved through negotiations have in some cases resulted in violence, a relatively uncommon occurrence in peaceful Zambia.
'Zambia police charge miner over killing of Chinese supervisor' is a headline that encapsulates the tensions that accompany the boom in Chinese investment in Zambia. A disagreement over pay between management and workers escalated into rioting and the death of the supervisor. Two years ago China-Zambia relations were sorely tested when Chinese supervisors shot 13 Zambian workers, though attempted murder charges were dismissed , which may only have further fueled already simmering anti-Chinese feelings.
'Zambian mine death puts China relations in spotlight' analyses some aspects of the contradiction between wanting more Chinese investment, but not necessarily liking the Chinese.
Realpolitik made sure that did not happen. China has been the biggest mining investor in Zambia for some years, and its companies, many of them with the backing of their government in Beijing, are credited with reviving Zambia's once moribund copper industry, the country's economic engine.
Any early Chinese fears of what Sata's presidency would mean for Chinese investors have largely lifted, and economic ties between the two countries have continued to grow.
The once fiery critic of China began to soften his stance as soon as he assumed office, saying in March this year to a group of visiting business executives, "I would encourage you to bring more Chinese investors to invest in various areas of investment in the country especially mineral exploration. We would also like you to get involved in agriculture, textile and many other sectors. The investment has benefited both Zambia and China. Therefore, every expansion in investment should be for the mutual benefit of the two countries and its people."
One of the visiting businessmen mentioned, ""The US$ 400 million Mulyashi Mining Project in Luanshya will commence production by the end of this month. And our next project is the $ 800 million South East Ore body at Chambishi Mine. This is the plan for our projects in the near future."
It is hardly surprising that Sata changed his tune rather quickly on steeping into office. But while Chinese investment is welcomed, the general disgruntlement about the state of relations between Chinese businesspeople and Zambians at various levels remains. Work disagreements that might normally be resolved through negotiations have in some cases resulted in violence, a relatively uncommon occurrence in peaceful Zambia.
'Zambia police charge miner over killing of Chinese supervisor' is a headline that encapsulates the tensions that accompany the boom in Chinese investment in Zambia. A disagreement over pay between management and workers escalated into rioting and the death of the supervisor. Two years ago China-Zambia relations were sorely tested when Chinese supervisors shot 13 Zambian workers, though attempted murder charges were dismissed , which may only have further fueled already simmering anti-Chinese feelings.
'Zambian mine death puts China relations in spotlight' analyses some aspects of the contradiction between wanting more Chinese investment, but not necessarily liking the Chinese.
Why the aid industry will continue in its impoverishment of Africa
There has been a lot written and said in recent years about how little aid has lifted Africa out of poverty, its negative effects and the need to wean Africa of it.
In that respect Peter Bottings article, Why trade is the only way for Africa to beat poverty, is fairly standard, although it is more elegantly and concisely written than most.
Botting dutifully notes that aid is a noble idea,and has an obvious,necessary role in human relations. But aid and Africa are now so controversial because of the size of it, the length of time it has been dispensed relative to the deepening of the problems it is ostensibly designed to address. And also, the seeming 'permanent-ness' of the link between aid and Africa in the thinking of both aid givers and receivers.
While saying nothing new, perhaps the repetition of the new thinking is necessary to eventually bring about the needed mindset change to wean Africa off aid.
Trade Africa
In that respect Peter Bottings article, Why trade is the only way for Africa to beat poverty, is fairly standard, although it is more elegantly and concisely written than most.
Botting dutifully notes that aid is a noble idea,and has an obvious,necessary role in human relations. But aid and Africa are now so controversial because of the size of it, the length of time it has been dispensed relative to the deepening of the problems it is ostensibly designed to address. And also, the seeming 'permanent-ness' of the link between aid and Africa in the thinking of both aid givers and receivers.
While saying nothing new, perhaps the repetition of the new thinking is necessary to eventually bring about the needed mindset change to wean Africa off aid.
Trade Africa
Does lowering taxes really make African countries more attractive to investors?
We hear a lot about economic growth in Africa these days, and about the greater flows of investment into the continent. Where there is oil or where are there are rare minerals, the countries have an advantage which makes up for many of the perceived disadvantages and hardships of doing business in Africa.
So for example, despite the generally poor international images of these countries, Nigeria and Angola have no shortage of oil investors, and Zimbabwe has plenty of investors interested in exploiting its diamond deposits.
But what about countries with no particularly unique investor-attracting properties? They have to work much harder to lure investors to come to set up shop there rather than in the neighboring country. One traditionally accepted way is by bending over backwards to offer relatively easily conditions, including low or even virtually no taxes.
Ethiopia is an example of a country that has attracted a lot of investment in recent years, including in agriculture. But the country's investment drive has been very controversial, including because of what some consider to be unreasonably generous tax and rent regimes.
Roman Grynberg ponders the competition by nations to attract investors by offering particularly low tax policies. For a relatively 'dry' subject, he makes his article easily readable and to the point. He starts off with a good summary of how developed nations have competed against each other for investment by creative ways of offering low taxes while avoiding charges of being anti-competition.
He then gets to the application by African governments of the orthodoxy of ' lower taxes will bring in new investments' which he attributes to the era of U.S.president Ronald Reagan (1981 to 1989.)
Grynberg writes, 'In fact all the evidence suggests they were right to try but not if their house was not in order and investors saw a country as profoundly uncompetitive. In this case the incentives did almost nothing.'
'According to a recent IMF working paper Africa has now finally won the race to the bottom and effective tax rates i.e. what companies pay after all the special incentives they get from governments is just about zero.'
He gives examples of countries (Tanzania, Mauritius and Nigeria) where he says studies show that sometimes the effective corporate tax rates are lower than zero (e.g. by not only offering low or zero tax rates, and then topping that up by subsidies, grants or other 'incentives' as extra sweeteners.)
A major aim of Grynberg's article is to show that a country can reach a point where the tax rebates can do more harm than the benefit of attracting investment that they are designed for.
Roman Grynberg's article is thoughtful, easy to digest and an important one that should inform African policy makers' thinking about how to (and how not to) attract investment
Trade Africa
So for example, despite the generally poor international images of these countries, Nigeria and Angola have no shortage of oil investors, and Zimbabwe has plenty of investors interested in exploiting its diamond deposits.
But what about countries with no particularly unique investor-attracting properties? They have to work much harder to lure investors to come to set up shop there rather than in the neighboring country. One traditionally accepted way is by bending over backwards to offer relatively easily conditions, including low or even virtually no taxes.
Ethiopia is an example of a country that has attracted a lot of investment in recent years, including in agriculture. But the country's investment drive has been very controversial, including because of what some consider to be unreasonably generous tax and rent regimes.
Roman Grynberg ponders the competition by nations to attract investors by offering particularly low tax policies. For a relatively 'dry' subject, he makes his article easily readable and to the point. He starts off with a good summary of how developed nations have competed against each other for investment by creative ways of offering low taxes while avoiding charges of being anti-competition.
He then gets to the application by African governments of the orthodoxy of ' lower taxes will bring in new investments' which he attributes to the era of U.S.president Ronald Reagan (1981 to 1989.)
Grynberg writes, 'In fact all the evidence suggests they were right to try but not if their house was not in order and investors saw a country as profoundly uncompetitive. In this case the incentives did almost nothing.'
'According to a recent IMF working paper Africa has now finally won the race to the bottom and effective tax rates i.e. what companies pay after all the special incentives they get from governments is just about zero.'
He gives examples of countries (Tanzania, Mauritius and Nigeria) where he says studies show that sometimes the effective corporate tax rates are lower than zero (e.g. by not only offering low or zero tax rates, and then topping that up by subsidies, grants or other 'incentives' as extra sweeteners.)
A major aim of Grynberg's article is to show that a country can reach a point where the tax rebates can do more harm than the benefit of attracting investment that they are designed for.
Roman Grynberg's article is thoughtful, easy to digest and an important one that should inform African policy makers' thinking about how to (and how not to) attract investment
Trade Africa
South Africa's uneasy relations with the Western world
In the Cold War days the West divided the world into pro and anti-Western camps. By that old dividing line the South Africa of 2012 would certainly not fit into the 'anti-Western.' There may be lingering suspicions by South Africa's black rulers about the sympathy or support some Western countries gave to the pre-1994 white apartheid order, but by and large, political, diplomatic and economic relations between South Africa and the West are good.
So what could have caused the secretary general of South Africa's ruling African National Congress, Gwede Mantashe, to blurt out, ''The West must realise South Africa does not need its money since it can turn to India and China to fund its economic development.''
On the face of it, it is an astonishingly hostile-sounding statement from a senior official of a party that is not known for radicalism in its foreign relations.
Mantashe went on, ''“There is a dynamic that Western investors must wake up to. If they are still sulking regularly, there is a growing ‘look East’ tendency that is emerging throughout the continent, the developing world.”
Amongst the reasons for this new attitude in South Africa are 'resenting what it sees as high-handedness by the United States and Africa's former European colonial powers and distrusting free market capitalism. It also objects to conditions often imposed by Western institutions as the price of their investment,' according to the Reuters article based on an interview with Mantashe.
The western world, especially the U.S., has leaned very hard on South Africa to reduce trade with Iran over western concerns about its plans to develop its nuclear capability. Iran has long been one of South Africa's biggest suppliers of oil, but in recent months western pressure has forced sharp reductions in Iranian oil imports by South Africa.
It is just that kind of arm-twisting by the West that leaves lingering ill-leaving against it even amongst countries friendly to it, like South Africa.
Trade Africa
So what could have caused the secretary general of South Africa's ruling African National Congress, Gwede Mantashe, to blurt out, ''The West must realise South Africa does not need its money since it can turn to India and China to fund its economic development.''
On the face of it, it is an astonishingly hostile-sounding statement from a senior official of a party that is not known for radicalism in its foreign relations.
Mantashe went on, ''“There is a dynamic that Western investors must wake up to. If they are still sulking regularly, there is a growing ‘look East’ tendency that is emerging throughout the continent, the developing world.”
Amongst the reasons for this new attitude in South Africa are 'resenting what it sees as high-handedness by the United States and Africa's former European colonial powers and distrusting free market capitalism. It also objects to conditions often imposed by Western institutions as the price of their investment,' according to the Reuters article based on an interview with Mantashe.
The western world, especially the U.S., has leaned very hard on South Africa to reduce trade with Iran over western concerns about its plans to develop its nuclear capability. Iran has long been one of South Africa's biggest suppliers of oil, but in recent months western pressure has forced sharp reductions in Iranian oil imports by South Africa.
It is just that kind of arm-twisting by the West that leaves lingering ill-leaving against it even amongst countries friendly to it, like South Africa.
Trade Africa
India's trade with West Africa grows
...especially with Ghana and Nigeria, two of the region's biggest economies.
According to the India High Commission in Abuja, Nigeria's exports to India stood at $12.4 billion in 2011, representing a 71 per cent increase over the previous year, while India's exports to Nigeria grew by 58 per cent to $22 billion.
full article...India Times
According to the India High Commission in Abuja, Nigeria's exports to India stood at $12.4 billion in 2011, representing a 71 per cent increase over the previous year, while India's exports to Nigeria grew by 58 per cent to $22 billion.
full article...India Times
Senegal targets Mali minerals with $1.6 billion railway plan
by Rose Skelton
A railway linking the capitals of Senegal and Mali needs about 1.2 billion euros ($1.6 billion) to strengthen the track and lure more of Mali’s mineral exports to Senegal, which hopes to become a regional transportation hub.
The 90-year-old route that crosses 1,233 kilometers (766 miles) of arid, Sahelian terrain would cost 1 million euros per kilometer to boost load capability, said Abdoulaye Lo, general director of l’Agence Nationale des Chemins de Fer du Senegal.
The track is currently able to handle axle weights of 15 metric tons, Lo said. The goal is for 27 tons, he said.
The bid to improve the route comes as Mali’s mines increase output of gold, iron ore and other minerals. The railway is also a key passage for exports of cotton from and comes as Senegal is keen to attract more goods from neighboring nations in a bid to promote the port at Dakar, operated by DP World Ltd. of Dubai. Trains carried 440,000 tons of goods on the line in 2010, according to Transrail SA, the operator.
The governments of Senegal and Mali, which each hold 11 percent stakes in the line, are looking for funding from the European Union, the World Bank, the African Development Bank and the French Development Agency, said Eric Peiffer, director general of Transrail.
Built after World War I, several ownership changes in the railroad led to low investment until it was privatized in 2003. In this year to October, there were 136 derailments and 291 sections of broken track on the section between Dakar and Thies, according to Transrail.
Businessweek
A railway linking the capitals of Senegal and Mali needs about 1.2 billion euros ($1.6 billion) to strengthen the track and lure more of Mali’s mineral exports to Senegal, which hopes to become a regional transportation hub.
The 90-year-old route that crosses 1,233 kilometers (766 miles) of arid, Sahelian terrain would cost 1 million euros per kilometer to boost load capability, said Abdoulaye Lo, general director of l’Agence Nationale des Chemins de Fer du Senegal.
The track is currently able to handle axle weights of 15 metric tons, Lo said. The goal is for 27 tons, he said.
The bid to improve the route comes as Mali’s mines increase output of gold, iron ore and other minerals. The railway is also a key passage for exports of cotton from and comes as Senegal is keen to attract more goods from neighboring nations in a bid to promote the port at Dakar, operated by DP World Ltd. of Dubai. Trains carried 440,000 tons of goods on the line in 2010, according to Transrail SA, the operator.
The governments of Senegal and Mali, which each hold 11 percent stakes in the line, are looking for funding from the European Union, the World Bank, the African Development Bank and the French Development Agency, said Eric Peiffer, director general of Transrail.
Built after World War I, several ownership changes in the railroad led to low investment until it was privatized in 2003. In this year to October, there were 136 derailments and 291 sections of broken track on the section between Dakar and Thies, according to Transrail.
Businessweek
Intra-Africa trade barriers worsen food insecurity
Trade barriers between African countries mean areas in the same region, but separated by a national border, can have very different experiences of food availability and affordability.
An area with a surplus may be able to export it nearby to an area in the neighbouring country with a food shortage, all because of complicated trade barriers. The surplus area loses the benefit of an additional market, while the deficit area un-necessarily experiences shortages and high prices.
African politicians talk a lot about the need to facilitate greater trade within Africa, but the reality is often far divorced from the rhetoric.
'Trade barriers imperil African food security' gives an example of the problems such barriers cause at the Mozambique-Tanzania border. Poor harvests on the Mozambican side attributed to changing climate mean maize is in short supply and expensive. But official imports from the more food secure Tanzania side are not possible because of that country's ban (now lifted) on maize exports.
The World Bank says the lifting of such barriers could double the amount of trade between African countries.
Trade Africa
An area with a surplus may be able to export it nearby to an area in the neighbouring country with a food shortage, all because of complicated trade barriers. The surplus area loses the benefit of an additional market, while the deficit area un-necessarily experiences shortages and high prices.
African politicians talk a lot about the need to facilitate greater trade within Africa, but the reality is often far divorced from the rhetoric.
'Trade barriers imperil African food security' gives an example of the problems such barriers cause at the Mozambique-Tanzania border. Poor harvests on the Mozambican side attributed to changing climate mean maize is in short supply and expensive. But official imports from the more food secure Tanzania side are not possible because of that country's ban (now lifted) on maize exports.
The World Bank says the lifting of such barriers could double the amount of trade between African countries.
Trade Africa
Africa’s tourist arrivals to reach 60 million in 2012
Africa's share of international tourist arrivals is expected to increase from 50 million to 60 million this year, according to the latest United Nations World Tourism Organisation (UNWTO) barometer.
This is out of the landmark 1 billion international tourist arrivals expected to be attained this year worldwide.
UNWTO secretary general Taleb Rifai disclosed this in January...
http://www.daily-mail.co.zm/index.php/politics/2972-africas-tourist-arrivals-to-reach-60m-this-year
This is out of the landmark 1 billion international tourist arrivals expected to be attained this year worldwide.
UNWTO secretary general Taleb Rifai disclosed this in January...
http://www.daily-mail.co.zm/index.php/politics/2972-africas-tourist-arrivals-to-reach-60m-this-year
Mobile phone industry contributes $56 billion to Africa’s economy
A report from the maiden GSMA Africa Mobile Observatory carried out in 2011 indicate that the mobile industry contribute a total of $56billion to Africa’s economy, representing 3.5% of Gross Domestic Product (GDP) in the continent.
The executive summary of the report noted the mobile industry in Africa is booming, saying that at the end of September 2011, mobile connections in the continent cross the 620 million, representing some 62.62% penetration.
“Over the past 10 years, the number of mobile connections in Africa has grown an average of 30% per year and is forecast to reach 735 million by the end of 2012,” it said.
The report said Africa has overtaken Latin America to become the second largest mobile market in the world, after Asia.
It said the rate at which mobile connection was growing on the continent it is expected to reach 906 million by 2015, representing 84.88% penetration.
The report estimates that the industry employs some five million people on the continent.
The report however pointed out that in spite of the growth on the continent, there still remained a huge untapped potential for penetration in the continent, as 36% of people living in the 25 largest African mobile markets still have no access to mobile services.
“Projections indicate that raising the whole region to 100% mobile penetration could add an additional $35 billion in aggregate GDP to the region, equivalent to a further 2% increase,” the report stated.
The report noted that even though the mobile industry remained an enabler and catalyst for development beyond its domain on the continent, fierce competition continue to drive down prices, and increased penetration.
It said price wars had been common across the continent, adding that between 2010 and 2011 operators reduced prices by an average of 18%.
The report said 96% of subscriptions were pre-paid with voice services currently dominating, however the uptake of data services is increasing rapidly.
The report said in spite of the downward trend in pricing, the mobile industry continued to enable and support growth in agriculture, banking, education, healthcare, and gender equality through Mobile Value-Added Services (VAS) launched throughout the continent.
It observed the emergence of mobile money transfers and mobile banking puts Africa firmly at the forefront of the global Mobile Money industry, saying that beyond mobile services, the mobile industry is also contributing to rural electrical distribution with lower carbon emissions and facilitating the work of NGOs across the continent.
full article...http://business.myjoyonline.com/pages/news/201201/79606.php
The executive summary of the report noted the mobile industry in Africa is booming, saying that at the end of September 2011, mobile connections in the continent cross the 620 million, representing some 62.62% penetration.
“Over the past 10 years, the number of mobile connections in Africa has grown an average of 30% per year and is forecast to reach 735 million by the end of 2012,” it said.
The report said Africa has overtaken Latin America to become the second largest mobile market in the world, after Asia.
It said the rate at which mobile connection was growing on the continent it is expected to reach 906 million by 2015, representing 84.88% penetration.
The report estimates that the industry employs some five million people on the continent.
The report however pointed out that in spite of the growth on the continent, there still remained a huge untapped potential for penetration in the continent, as 36% of people living in the 25 largest African mobile markets still have no access to mobile services.
“Projections indicate that raising the whole region to 100% mobile penetration could add an additional $35 billion in aggregate GDP to the region, equivalent to a further 2% increase,” the report stated.
The report noted that even though the mobile industry remained an enabler and catalyst for development beyond its domain on the continent, fierce competition continue to drive down prices, and increased penetration.
It said price wars had been common across the continent, adding that between 2010 and 2011 operators reduced prices by an average of 18%.
The report said 96% of subscriptions were pre-paid with voice services currently dominating, however the uptake of data services is increasing rapidly.
The report said in spite of the downward trend in pricing, the mobile industry continued to enable and support growth in agriculture, banking, education, healthcare, and gender equality through Mobile Value-Added Services (VAS) launched throughout the continent.
It observed the emergence of mobile money transfers and mobile banking puts Africa firmly at the forefront of the global Mobile Money industry, saying that beyond mobile services, the mobile industry is also contributing to rural electrical distribution with lower carbon emissions and facilitating the work of NGOs across the continent.
full article...http://business.myjoyonline.com/pages/news/201201/79606.php
Has aid really become 'a dirty word, like colonialism?'
There is certainly increasingly critical discussion about the effectiveness of aid. But is aid yet "a dirty world, like colonialism?"
Economist Yash Tandon, founder of the South Center, thinks it is. Why?
"Because it was conceptualized by the donors, and not by the people that were supposed to be assisted. It was not a participatory project. When it became clear that aid had failed, instead of looking at the issue in a fundamental manner, the donor countries put the blame of ineffectiveness on the recipient countries," says Tandon.
Tandon comes out swinging from the start of the interview, and doesn't stop until the very end.
Read 'Aid is a dirty word, like colonialism,' be provoked and stimulated.
Trade Africa
Economist Yash Tandon, founder of the South Center, thinks it is. Why?
"Because it was conceptualized by the donors, and not by the people that were supposed to be assisted. It was not a participatory project. When it became clear that aid had failed, instead of looking at the issue in a fundamental manner, the donor countries put the blame of ineffectiveness on the recipient countries," says Tandon.
Tandon comes out swinging from the start of the interview, and doesn't stop until the very end.
Read 'Aid is a dirty word, like colonialism,' be provoked and stimulated.
Trade Africa
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