African Business and Economy News [Archive] - Page 3

Alex Roney

October 19th, 2007, 12:28 AM

Em Angola, Lula destaca comércio de R$ 1 bilhão entre os dois países
Presidente aproveitou para propor parceria com biocombustíveis.
Viagem presidencial à África termina nesta quinta-feira (18).
Do G1, com agências
entre em contato
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TAMANHO DA LETRA A-A+
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O presidente Luiz Inácio Lula da Silva destacou nesta quinta-feira (18) o "boom" econômico de Angola. Em discurso no palácio do governo angolano, Lula lembrou que o fluxo comercial entre os dois países ultrapassou US$ 1 bilhão de dólares entre janeiro e julho deste ano. Este é o quarto e último dia da viagem do presidente pela África.

Depois de uma guerra civil de 27 anos, encerrada em 2002, Angola cresce a um ritmo de 18% ao ano, segundo o presidente angolano, José Eduardo dos Santos. O país está reconstruindo sua infra-estrutura com o dinheiro do petróleo, que começa a ser explorado por companhias nacionais e estrangeiras.

"Desde minha última vinda (em 2003), nosso comércio aumentou quase 5%, com exportações angolanas anuais de US$ 460 milhões de dólares", disse Lula, que aproveitou para falar dos biocombustíveis.

“Angola é uma potência petrolífera. O Brasil é auto-suficiente na produção de petróleo. Não obstante, podemos, juntos, participar da próxima revolução energética: a dos biocombustíveis”, disse o presidente, citando, em seguida, a criação de seis milhões de postos de trabalho neste segmento da indústria.

Uma linha de crédito anunciada recentemente pelo governo Lula prevê US$ 1 bilhão para obras de empresas brasileiras em Angola em estradas, habitação, saneamento básico e energia. A estatal brasileira Petrobras é uma das empresas que mais investem no país. A comitiva de Lula inclui representantes das maiores empreiteiras do Brasil, que estão de olho no dinheiro do petróleo angolano.

Agenda
Em Angola, o presidente assinará acordos de cooperação nas áreas de prevenção da malária, formação e ensino. No fim da manhã, Lula se desloca para o Palácio dos Congressos, onde será homenageado pela Assembléia Nacional de Angola.

À tarde, recebe o deputado João Lourenço, presidente em exercício da assembléia. A última atividade prevista é o discurso de encerramento de um seminário empresarial com executivos brasileiros e angolanos.

Lula e sua comitiva deixam Luanda ainda nesta quinta. A chegada na base aérea de Brasília está prevista para as 23h30.

http://g1.globo.com/Noticias/Economia_Negocios/0,,MUL152306-9356,00-EM+ANGOLA+LULA+DESTACA+COMERCIO+DE+R+BILHAO+ENTRE+OS+DOIS+PAISES.html

If any Angolans can, I'd like to see Lula's speech to the Angolan National assembly.

You are to blame

October 19th, 2007, 02:08 AM

Sub-Saharan Africa: Boom cutting poverty
October 18, 2007

Sub-Saharan Africa was enjoying its strongest economic momentum in more than four decades, with some countries at last recording "substantial progress" in reducing poverty, the International Monetary Fund (IMF) said yesterday.

In its biannual survey of the world economy, the IMF found that while African oil exporters were growing the fastest, "most other countries are also growing strongly and outperforming historic trends".

It said sub-Saharan Africa "is clearly enjoying its best period of sustained growth since independence" in the early 1960s, and "faster-growing countries in the region are making substantial progress in reducing poverty rates".

But the report warned that the robust pace could slow if the global economy were to contract sharply, cutting demand for African commodity exports and imposing financial constraints.

After growth of 5.7 percent last year, the IMF said the economies of sub-Saharan Africa should expand at a rate of 6.1 percent this year and 6.8 percent next year - 40 basis points faster than it had foreseen in a projection in July.

The report attributed the region's "growth success" to a generally healthy global economy, sound domestic policies and increased "openness" to the world on the part of many countries, which had now begun to attract more private investment capital.

It noted that African nations had managed to diversify their export markets, finding new outlets in Asia, for example.

But the IMF also urged sub-Saharan governments to carry on with reforms to improve their administration, develop infrastructure and strengthen the business environment.

The report finally said many countries should implement more flexible exchange rate regimes and make greater use of monetary policy.

http://www.busrep.co.za/index.php?fSectionId=&fArticleId=4085438

You are to blame

October 19th, 2007, 02:09 AM

Africa doubles investment flows
October 18, 2007

Johannesburg - Foreign direct investment (FDI) into Africa doubled between 2004 and 2006 to a record $36 billion, spurred by the search for primary resources and increased profits and by a generally improved business climate, an UNCTAD survey of investment trends reports.

African FDI outflows also reached a record level in 2006 of $8 billion, up from $2 billion in 2005, with South African firms being the main investors from the region, said UNCTAD.

In its World Investment Report 2007: Transnational Corporations, Extractive Industries and Development it added that the value of cross-border mergers and acquisitions (M&A) in Africa also reached a record level of $18 billion in 2006.

About half of those M&As were accounted for by transnational corporations from developing Asia.

But despite these increases, the region's share of the global FDI declined to 2.7% in 2006 from 3.1% in 2005.

Africa's portion of global FDI remains small when compared with figures for South, East and South-East Asia (15% of the world total) and Latin America and the Caribbean (6%).

FDI inflows exceeded one billion dollars in eight African countries and rose in 33 countries in 2006.

The top ten African FDI destinations - including Egypt, Nigeria, Sudan, Tunisia and Morocco - received about 90%, or $32 billion, of the continent's total FDI inflows.

In sub-Saharan Africa, FDI inflows climbed in all sub-regions except southern Africa because of large investments in oil and mining.

Major investment declines, however, were recorded for Angola (-$1.1 billion) and South Africa (-$0.3 billion) due to sales of foreign equity shares to the government in the former case and to local firms in the latter.

"There has been a surge of FDI flows to Africa in the primary sector, mainly oil, gas and mining, over the past few years. The services sector, particularly transport, storage and communications, also continued to attract FDI," said UNCTAD.

Inflows into the manufacturing sector continued to grow in North African countries at a slow but stable rate, while in sub-Saharan Africa, no significant manufacturing FDI occurred.

The search for new resource reserves led to increased FDI inflows to African least developed countries to the tune of $8 billion, after a two-year decline.

As a result, least developed countries received 23% of FDI inflows to the region.

In terms of the investment climate for FDI flows to the region, in 2006 many African countries incorporated measures into their policy and regulatory frameworks to ensure steady inflows of FDI and to increase those flows, which have had a positive impact on the development of their economies.

Prospects for FDI into Africa continue to be positive because of high global commodity prices and as transnational corporations, particularly from Asia, take advantage of good returns on investment.

But some moderation is expected in 2007 due to a pause in large FDI inflows into the oil industries of some countries, UNCTAD said.

http://www.busrep.co.za/index.php?fSectionId=&fArticleId=5021773

Alex Roney

October 19th, 2007, 09:27 AM

Angola fetes expanded Brazil credit line
Fri 19 Oct 2007, 5:14 GMT

[-] Text [+] LUANDA (Reuters) - Brazil announced on Thursday that it would nearly double a $1.3 billion credit line to Angola in a move to drum up business for Brazilian firms and help the African nation rebuild its economy.

Brazil, keen to expand its influence in Africa and tap into the impoverished continent's vast mineral wealth, has been providing a revolving credit line to oil-rich Angola since 1995.

The South American giant now plans to add $1 billion to the financial assistance programme.

It announced the new funding at the start of a visit by Brazilian President Luiz Inacio Lula da Silva to Angola, the last leg of his four-nation trip in Africa.

"Today more than ever Brazil is doubling its bet (on Angola)," Lula said in opening remarks at a meeting with Angolan President Jose Eduardo dos Santos and officials from the two Portuguese-speaking nations, Angolan news agency ANGOP reported.

Lula, who has stressed Brazil's cultural ties with Africa and defended the interests of the developing world since taking power in 2003, said he was confident Brazilian firms could provide the solutions to some of Angola's most vexing problems.

Angola's infrastructure, including ports, rail lines and health system, was devastated by a 27-year civil war that ended in 2002. Although buoyed by an oil-fueled boom, its government is struggling to rebuild capacity and raise living standards.

Dos Santos, who has ruled Angola since 1979, said the enhanced credit "fills us with satisfaction" and described it as marking a new chapter in their relationship.

"This is another sign of the willingness that Brazil has always shown to boost commercial relations with Angola, contributing to its development as well as the deepening of a exemplary relationship," the Angolan leader said.

He also repeated a pledge to hold delayed parliamentary elections in 2008. Angola has not had a nationwide election since a disastrous 1992 presidential ballot that was aborted after a first-round, leading to a resumption of the civil war.

Political stability and the prospect of free elections has increased the flow of foreign investment into Angola, with Brazilian companies among those staking a claim to the reconstruction and oil projects up for grabs.

Trade between Angola and Brazil has increased nearly five-fold since 2003, with the value of Angolan exports rising to $460 million per year. Angola is also the fourth largest export market for Brazil in Africa.

The two countries also agreed on Thursday to cooperate more closely in the areas of education and health, with Lula's government pledging, among other things, to help Angolan authorities battle malaria and other diseases.

Angola has one of Africa's worst infant mortality rates, with one-quarter of all children dying before the age of five.

Dos Santos also told the Brazilian delegation that Angola had the potential to produce biofuels and could benefit from Brazilian expertise in the emerging energy sector.

Brazil is a world leader in producing ethanol from sugar cane and is investing in technology to make biodiesel from soy and other plants. A number of African nations have expressed an interest in the technology.

http://africa.reuters.com/business/news/usnBAN922464.html

Matthias Offodile

October 19th, 2007, 12:18 PM

Gabon sustains stable economic growth

AFP, 11/10/2007 - Gabon is on course to maintaining the economic boom it has recorded during the first half of 2007, with the real Gross Domestic Growth expected to exceed 5% mainly because of brisk activity in construction, mining, forestry, services, and food-processing industries.

A release issued by the International Monetary Fund (IMF) mission to Gabon International Monetary Fund (IMF) mission to review the arrangement supported by the IMF predicted a booming economy in Gabon in the future.

During its two weeks in the country, the mission held “constructive discussions” with Gabonese economic stakeholders in both the private and public sectors, including the Minister of Economic Affairs, Mr Casimir Oye Mba.

"The performance of the Gabonese economy was satisfactory during the first half of 2007 thanks to the implementation of strict macroeconomic policies and structural reforms,“ the IMF release said, confirming that “all performance criteria were met, except for the application of non-subsized fuel.” Gabon still heavily subsidizes fuel.

The IMF predicts a stable oil production. Higher revenue and control over expenditure led to a narrower non-oil primary deficit than initially expected.

"Inflation subsided in the past few months to less than 1% after increasing during the second quarter because of a slight rise in the prices of food,” the IMF revealed. In that, Gabonese authorities were advised to lift the recently introduced price controls.

The government was “encouraged to continue implementing prudent fiscal and monetary policies and improve private competition.”

"Significant progress was achieved in the implementation of structural reforms. In particular, the mission noted less state-owned companies and a lot more privatization, especially the privatization of Gabon Telecom.

"Pursuing the implementation of structural reforms is essential for improving the business climate and promoting private investment, the source of economic growth and further diversification.”

GregPz

October 20th, 2007, 02:33 PM

Africa's Strong Growth
Oct 19th 2007
From the Economist Intelligence Unit ViewsWire

Africa's boom is not only because of pricey commodities

The US economy may be set to slow in 2008, but Africa’s protracted economic boom is poised to accelerate from 6.1% in 2007 to 6.8% in 2008—the region's best performance since the early 1970s. That, at least, is the forecast contained in the IMF's October 2007 World Economic Outlook. “Sub-Saharan Africa is clearly enjoying its best period of sustained growth since independence” it says, adding that while oil exporters are growing the fastest “most others" are also growing strongly and outperforming historic trends. In the decade to 1996 the African economy grew by 2.2% a year; in the ten years to 2006 annual growth averaged more than 5%, meaning that after two decades of decline real incomes per head are now rising at over 2% annually. And while the average gap with the rest of the developing world remains very wide, African policymakers are increasingly confident that they are creating a platform for sustained growth over the next decade, during which time income gaps will start to narrow.

Beyond commodities
The IMF is at pains to stress that there is more to the African boom than the upsurge in commodity prices. While regional growth did take off in the wake of the commodity price boom, non-commodity exporters are also growing faster than before partly because they have managed to expand non-traditional manufacturing exports and diversify export market destinations, especially in Asia, where the demand for resource-based products is strong. That said, the IMF acknowledges that the growth acceleration since 2002 reflects “largely the coming on stream of new production facilities in the region's oil exporting countries such as Angola and Nigeria”. In 2008, non-fuel commodity prices are forecast to weaken while oil prices are set to show further handsome gains. As a result the region's terms of trade will improve again, providing strong base for continued above-average GDP growth in 2008.

Most African countries are forecast to maintain “relatively high” rates of growth while inflation will “generally moderate,” excluding Zimbabwe where it forecasts average inflation accelerating from 1,017% in 2006 to 16,170% this year. (There is no forecast for average inflation for the country in 2008 but the year end figure is projected--with pin point accuracy--at 137, 873.1%.) The most rapid rates of growth are forecast to occur in oil exporters, and in countries undertaking economic reform. Expansion in the continent's largest economy, South Africa, will continue to be boosted by the ongoing investment and construction boom as preparations for the 2010 football World Cup gather momentum. The region's second largest economy, Nigeria, will benefit from higher oil prices—the IMF is forecasting an oil price increase of 9.6%--and production.

Private capital flows in
The combination of more open economies in a benign external environment, together with improved and more consistent policy reforms to strengthen the business environment and official actions to reduce debt burdens has allowed African countries to attract rising private capital inflows as well as benefit from “some step-up” in aid inflows and remittances. Foreign direct investment has been particularly strong in resource-rich countries. A smaller number of countries have begun to attract interest from private portfolio investors--the bulk of which go to South Africa though other such as Ghana and Uganda are also enjoying rising capital inflows.

Most African countries continue to run “significant” current-account deficits and, oil exporters excluded, foreign reserves remain “quite low”. As a result currency appreciation has been limited, though the challenges of managing currency inflows are “most pressing” for oil exporters. The Fund urges African oil producers to spend oil windfall gains “in a prudent manner” ensuring that increase public spending is accompanied by measures to improve the supply-side response in the non-oil economy.

Over-egged?
Indeed, the IMF itself admits that the main risks to its upbeat forecast are on the downside, and that past World Economic Outlook forecasts have "systematically overestimated growth in Africa. For all the Fund’s talk of economic and political reforms in Africa, the hard fact remains that in a whole host of global league tables--the World Bank’s Doing Business Report, Transparency International’s Corruption Perceptions Report, The World Bank’s Governance Indicators, Indices of Global Political and Economic Freedom and the World Economic Forum’s Global Competitiveness Index--African countries, with a handful of exceptions, cluster at or near the bottom. As the World Bank’s Doing Business Report (2008) noted recently African countries are reforming but others are doing so more rapidly, meaning that the region is not improving its relative position. The IMF has repeated its call for structural reforms—especially trade and investment openness, transparency, education, and better governance—that will strengthen the investment climate and foster growth driven by the private sector. Making progress with this formidable (if familiar) agenda will be crucial if Africa's recent economic achievements are to be sustained.

stoicman31

October 22nd, 2007, 03:44 PM

This guy needs help from the Nigerian government or from some rich guy other there!

by Aminu Abubakar
Sun Oct 21, 6:43 PM ET

KANO (AFP) - Mubarak Muhammad Abdullahi, a 24-year-old physics undergraduate in northern Nigeria, takes old cars and motorbikes to pieces in the back yard at home and builds his own helicopters from the parts.

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"It took me eight months to build this one," he said, sweat pouring from his forehead as he filled the radiator of the banana yellow four-seater which he now parks in the grounds of his university.

The chopper, which has flown briefly on six occasions, is made from scrap aluminium that Abdullahi bought with the money he makes from computer and mobile phone repairs, and a donation from his father, who teaches at Kano's Bayero university.

It is powered by a second-hand 133 horsepower Honda Civic car engine and kitted out with seats from an old Toyota saloon car. Its other parts come from the carcass of a Boeing 747 which crashed near Kano some years ago.

For a four-seater it is a big aircraft, measuring twelve metres (39 feet) long, seven metres high by five wide. It has never attained an altitude of more than seven feet.

The cockpit consists of a push-button ignition, an accelerator lever between the seats which controls vertical thrust, a joystick that provides balance and bearing.

A small screen on the dashboard connects to a camera underneath the helicopter for ground vision, a set of six buttons adjusts the screen's brightness while a small transmitter is used for communication.

"You start it, allow it to run for a minute or two and you then shift the accelerator forward and the propeller on top begins to spin. The further you shift the accelerator the faster it goes and once you reach 300 rmp you press the joystick and it takes off," Abdullahi explained from the cockpit.

He said he learned the rudiments of flying a helicopter from the Internet and first got the idea of building one from the films he watches on television.

"I watched action movies a lot and I was fascinated by the way choppers fly. I decided it would be easier to build one than to build a car," he said pacing the premises of the security division of the university which he uses as hanger for his helicopter.

He hoped -- and still does hope -- that the Nigerian government and his wealthy compatriots would turn to him and stop placing orders with western manufacturers.

So far, however, government response to his chopper project has been underwhelming to say the least.

Although some government officials got very excited when they saw him conduct a demonstration flight in neighbouring Katsina state, Nigeria's Civil Aviation Authority (NCAA) has so far shown no interest in his aircraft.

"No one from the NCAA has come to see what I've done. We don't reward talent in this country," he lamented.

Abdullahi does admit that his first helicopter lacks "some basic facilities like devices for measuring atmospheric pressure, altitude, humidity and the like."

In a country with Nigeria's abysmal air safety record officials may be loath to gamble on one student's home-made helicopter.

But Abdullahi, undeterred, has started work on a new flying machine, which, he says, "will be a radical improvement on the first one in terms of sophistication and aesthetics."

Currently just a spindly metal frame in the back yard, the helicopter will be a two-seater and Abdullahi calculates it will be able to fly at an altitude of 15 feet for three hours at a stretch.

It will be powered by a brand new motor -- albeit Taiwan-manufactured and destined for the Jincheng motorbike so common on the streets of Kano.

Tarrex

October 23rd, 2007, 01:03 AM

friendsofthecity

October 23rd, 2007, 04:41 PM

That's good news. If I am not mistaking, there had been same case of a Nigerian in the 90s that did thesame thing and was not given encouragement to go further than that. I hope they won't do thesame to this one.

Matthias Offodile

October 26th, 2007, 04:55 PM

African states tap pension funds

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

By Harvey Morris at the United Nations
October 23, 2007 6:23:00 PM

African states have begun tapping some of the $300bn held by domestic pension funds to finance economic development, at a time when sub-Saharan countries are experiencing unprecedented rates of growth but also a slowdown in foreign aid.

Pension funds in South Africa, Ghana and Nigeria have already invested some $625m (£305m, €439m) to fund pan-African infrastructure projects and the aim is to lift that figure to $3bn by mid-2008, according to Firmino Muca*vele, a Mozambican who heads Nepad, the African Union's development agency.

The pension fund strategy is one of a series of self-help measures African states are undertaking as they face what was described to the United Nations general assembly last week as a stalling in the flow of aid from the developed world.

African leaders fear the aid slowdown will undermine the benefits of a surge in economic growth recorded by sub-Saharan states in the past five years.

Kemal Dervis, head of the UN Development Programme, said on his return from a tour of southern and eastern Africa that gross domestic product south of the Sahara had risen by an average 5.6 per cent last year and was heading for 6 per cent growth this year, more than one percentage point above the world average. He said it could amount to the most rapid growth in the region for decades.

Mr Dervis acknowledged that growth was patchy and said countries experiencing internal conflict were growing more slowly than those that were at peace. "Where conflict is overcome, it's the first condition for progress. If you take out the conflict zones, growth is even higher," he said.

Echoing Mr Dervis's upbeat assessment of one of the world's poorest regions, Patrick Hayford, a senior UN adviser on Africa, said: "Africa is not all civil war and famine, chaos and fighting. There are developments of a more positive nature."

African delegates at the UN nevertheless warned that progress could be undermined by the failure of developed countries to keep their promise to double aid to Africa by 2010. That pledge was made by the Group of Eight leading industrialised countries at the 2005 Glen*eagles summit.

The general assembly heard, however, that for the first time since 1997 official aid flows declined in real terms in 2005 and stalled in 2006. In the interim, only limited progress had been made in liberalising world trade in Africa's favour.

Mr Dervis said on his return from Africa that the continent needed more help to deal with foreign investors for the benefit of its economies. "The income from two to three well-negotiated contracts can be the equivalent of the total foreign aid going to a country," he said.

Mr Mucavele, meanwhile, urged African investors to place their funds locally rather than abroad. "Most of our pension funds are used outside Africa, with a lower rate of return than most of our projects," he said.

He said much African capital placed abroad was tied up in the private and para-statal funds of big labour unions. "Instead of asking for loans, in some countries there can be agreement between the state and the unions," he said. "We have $500bn in assets outside Africa, and we only get $70bn-$100bn in remittances coming back."

Capital raised from domestic sources would be used for essential infrastructural projects in the continent, including roads and railways, he said.

usersky0010

November 4th, 2007, 07:50 PM

del

Rdokoye

November 5th, 2007, 04:55 AM

Yar’Adua Canvasses Marshal Plan for Africa

President Umaru Musa Yar’Adua has called for a Marshal Plan for Africa along the lines of the European Recovery Programme employed by the United States of America to rebuild the nations of Europe devastated by the second world war.
Yar'Adua, who was speaking yesterday in Elttevile, Germany, on the Challenges of Globalisation for Africa at the Partnership With Africa Forum, said that Africa needed such a bold plan for its regeneration after “decades of destruction engendered by forced partitioning and many years of self-inflicted ruin”.
While making the call for greater international support for Africa’s efforts to catch up with the developed nations of the world, President Yar’Adua said ultimately, however, Africa’s development must be championed by Africans themselves.
He said that the whole concept of aid to Africa by the developed nations needed to be “re-thought” because it has become clear that aid, as presently operationalised, “it is usually too little, most times misdirected and generally does not make much of a difference”.
“This Forum is a veritably apt platform for laying the foundation of another Berlin Conference, this time to work out the details of the plan to rebuild Africa’s infrastructure and, most importantly, to operationalise an initiative that should allow the nations of Sub-Saharan Africa export everything but arms (EBA) to the OECD nations completely free of duties.
“I must stress the fact that, ultimately, Africa’s development must be championed by Africans themselves; no one from outside the continent is coming to face up to our developmental challenges on our behalf. We must commit to strengthening governance institutions and structures.
“Endemic corruption, which has seen the distortion of our core values and the diversion of scarce resources from their development targets to private hands, must be tackled head-on. Most critically, Africa must evolve a crop of focused, committed, service-oriented, and God-fearing leaders to drive the continent’s rebirth,” President Yar’Adua declared at the gathering which had President Horst Kohler of Germany and several African leaders in attendance.
He said that his administration was anchoring its pursuit of a re-energized, stable and prosperous Nigeria on the entrenchment of the fundamental principles of democracy, good governance, free enterprise and the rule of law.
“These principles underlie our covenant with the people of Nigeria, which is encapsulated in our Seven-point Agenda - our short to medium term response to the challenges inherent in Nigeria’s desire to belong to the club of the world’s twenty biggest economies by the year 2020.
“We recognise that the imperative to rapidly regenerate our economy can only be bolstered by continent-wide, focused economic and political reform. This informs our desire to drive greater integration and broaden regional cooperation on the continent so as to create and sustain the requisite macro-economic and financial conditions for a globally competitive regional economy,” President Yar’Adua said.

Matthias Offodile

November 13th, 2007, 08:16 PM

Liberia's debt cancellation approved

afrol News, 13 November 2007- After hues and cries, the International Monetary Fund (IMF) has finally agreed to cancel Liberia's outstanding debts.

After securing sufficient funding and pledge [US $842 million] from donor nations, the IMF promised to start the cancellation process as soon as the pledges have been honoured.

But the agency's Managing Director, Dominique Strauss-Kahn, said Liberia's comprehensive debt relief took a "critical step".

The IMF debt relief helps countries to embark on a three-year growth programme geared towards reducing poverty, among others.

Liberian President, Ellen Johnson-Sirleaf, became so concerned that she flew to Washington, arguing that her country had met both political and economic requirements to enjoy the debt cancellation.

The World Bank President, Robert Zoellick, had praised Mrs Johnson-Sirleaf for doing "a tremendous job in a difficult situation and this breakthrough will help all of us to offer her and Liberia more support."

A consortium of organisations [Jubilee USA Network, Africa Action, and European Network on Debt & Development] scolded the IMF for its failure to reach an agreement to clear the arrears owed by Liberia, a necessary step that allows the country to access life-saving debt cancellation.

“The IMF and its main shareholders ought to be ashamed of their broken promises to Liberia,” said Emira Woods, Board Chair of Africa Action and Co-director of Foreign Policy in Focus, arguing that the country has met all of the onerous requirements demanded by the IMF to access debt cancellation, and yet Liberia has gotten nothing in return.

Liberia’s debt to the IMF, the World Bank, and other creditors totals more than $4.5 billion.

However, much of this debt is “odious or illegitimate” in nature, having been run up by the brutal regime of Samuel Doe, with no benefit to the people.

During years of civil war, Liberia failed to make its scheduled payments, resulting in huge arrears which the IMF insists must be cleared before the West African country entered the debt cancellation process.

By staff writer

DanteXavier

November 14th, 2007, 03:00 AM

Botswana: Unemployment Decline

President Festus Mogae has said that with the country's economy growing, the unemployment rate also declined from 21.5 percent in 1996 to 17.5 percent in 2006.

Giving the State of the Nation Address this Monday, Mogae said while the economy grew annually at an average rate of 9 percent during the first four decades, "We were only able to reach about 4 percent growth at the beginning of the current NDP 9 planning period. Real growth is now projected at 6.4 percent for the remainder of the period."

He said in terms of vocational opportunities, total domestic employment increased by 59 percent since 1998 from about 345 thousand to 550 thousand jobs. "By way of contrast, at independence, local employment stood at only 14 thousand. According to the 2005/2006 Labour Force Survey, unemployment has declined modestly from 21.5 percent in 1996 to 17.6 percent in 2006," he said.

The President said continued economic growth has contributed to a steady reduction in poverty from 59 percent in 1986 to 47 percent in 1994, to the latest 30 percent in 2004. According to him, poverty levels are projected to fall further to 23 percent by 2009.

He said sustained economic development is not possible in the absence of a well motivated as well as productive workforce.

On other issues, President Mogae said in recent years, government has been able to control inflation, despite a sharp rise in the cost of such critical imports such as petroleum. "This year's inflation rate which has been hovering at around 7 percent is now at the upper end of Bank of Botswana's target. Inflation is projected to further ease in the coming year."

http://allafrica.com/stories/200711130528.html

Matthias Offodile

November 16th, 2007, 11:59 AM

A big up for small Gabon...the second country after Ghana..and the first in Central Africa:okay:

Gabon ventures into the global bond arena

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By Joanna Chung in London

Published: November 15 2007 02:00 | Last updated: November 15 2007 02:00

The small oil-rich Republic of Gabon is planning to make its debut in the international bond markets with a benchmark issue to raise $1bn by the end of the year.

The planned 10-year bond sale would only be the second foray into the global bond markets by a west African state.

Ghana issued a 10-year bond less than two months ago and raised $750m after attracting almost $3bn of demand from investors. There has been a recent surge of interest in Africa among investors increasingly searching for assets in so-called frontier markets, which have benefited from the commodities boom and debt relief.

"The traditional emerging markets have been completely picked over by investors, and the obvious choice is places where assets are more likely to be cheaper," said Richard Segal, fixed- income strategist at Renaissance Capital, the Russian investment bank.

Bankers say that Ghana's experience has given a boost to other issuers hoping to tap the international markets for the first time. A number of other African governments including Nigeria and Kenya are considering bond issues.

"Many African countries are reaching a turning point in their development, where they are able to consider accessing capital from the international bond markets," said Maryam Khosrowshahi, co-head of public sector origination for Europe, Middle East and Africa at Citigroup, which has been appointed to manage the Gabon deal with JPMorgan.

Standard & Poor's, which last week gave Gabon a good credit rating of BBB-, said Gabon was planning to use the proceeds from its planned bond issue to help finance more development projects in the country.

*Yesterday, Merrill Lynch launched two investment products linked to stocks with exposure to more than 15 African countries.

Pierre Mendelsohn, Merrill's head of securitised products for Europe, Middle East and Africa, said they were the first pan-European certificates linked to African equities that would be listed in several European exchanges.

Copyright The Financial Times Limited 2007

Matthias Offodile

November 16th, 2007, 12:23 PM

Gabon ventures into the gold era after a discovery of highly promising gold reserves in the country by a Canadian/Quebec mining company!

Mines : De bonnes perspectives pour le projet aurifère de Bakoundou-Magnima

Ressources SearchGold Inc. annonce de très belles perspectives pour son projet aurifère de Bakoundou-Magnima situé au Gabon. Les activités d'exploration sont en cours sur Bakoundou ainsi qu'au niveau régional sur la ceinture de roches vertes de Magnima et sur l'anomalie aurifère de Moyabi.

Bientôt on en saura un plus sur le potentiel des mine aurifères de Bakoundou-Magnima-Moyabi exploitées par Ressources Search Gold Inc. Selon les travaux de forage qui ont été les plus intenses sur le couloir aurifère de Bakoundou et de la zone A et dont les conclusions sont au stade final du calcul de ressources, ces mines sont très prometteuses.

Nous sommes actifs sur tous les fronts du projet Bakoundou mais la priorité demeure le forage sur la Zone A pour finaliser le calcul de ressources et la prise de décision de mise en production, décllare Philippe Giaro, Président et Chef de la Direction de Ressources Search Gold Inc

Compte tenu de la récente découverte de l'extension sud de la Zone A et du nombre important de nouvelles cibles. générées, une troisième foreuse est encours d'acheminement sur le projet et une quatrième foreuse a été commandée pour le Gabon par l'entrepreneur de forages. Nous sommes très heureux des récents développements et restons plus que jamais confiants en l'avenir prometteur du projet,"a-t-il poursuivi.

Pour l’instant les échantillons individuels d'un poids d'environ 3kg sont prélevés à des intervalles de plus ou moins 1 mètre dans les zones minéralisées, en fonction des contacts géologiques, à partir de la carotte sciée en deux.

Les échantillons sont envoyés par avion au laboratoire de ALS au Mali pour analyse par pyroanalyse sur pulpe de 50g. La procédure de préparation des échantillons comprend le broyage de la totalité de l'échantillon de 3kg suivi d'un quartage pour obtenir un échantillon représentatif de 500g qui est entièrement pulvérisé et duquel un échantillon de 50g est isolé pour analyse par méthode de pyroanalyse.

En juillet 2005 SearchGold a signé une entente stratégique de 4, 200,000 dollars canadiens sur le Projet Aurifère de Bakoundou-Magnima avec Managem, une compagnie minière africaine bien établie. Par le biais de ses filiales, le groupe Managem exploite 6 mines au Maroc et a de plus été impliquée dans le développement de deux mines d'or en Afrique de l'Ouest.

Matthias Offodile

November 17th, 2007, 01:13 PM

Equatorial Guinea is really soaked in oil, so many new discoveries lately and here is another one!!

Noble Energy Announces Additional Discovery on Block 'I' in Equatorial Guinea

HOUSTON, Nov. 14 /PRNewswire-FirstCall/ -- Noble Energy, Inc. (NYSE:
NBL) today announced a new discovery on Block "I" offshore Equatorial
Guinea. The 'I-3' well, which tested the Yolanda prospect, encountered a
high quality Miocene reservoir containing 47 feet (14 meters) of net
hydrocarbon pay. Production tests from the well yielded flow rates of 371
barrels per day of condensate and 36 million cubic feet per day of natural
gas, or approximately 6,371 barrels of oil equivalent per day (based upon a
natural gas to crude oil conversion ratio of 6 to 1), with production rates
limited by test facilities. The Yolanda discovery, located in 2,940 feet
(896 meters) of water is approximately 30 miles (48 kilometers) east of
Bioko Island and six miles (10 kilometers) south of the Benita discovery,
which is also on Block "I". It was drilled to a total depth of 9,482 feet
(2,890 meters).
The Songa Saturn drillship will remain on Block "I" where it will move
to test an additional Miocene exploration prospect that is on trend with
the Belinda discovery located on Block "O" offshore Equatorial Guinea.
Noble Energy is the Technical Operator of Block "I" with a 40 percent
participating interest. Its partners on the block include Atlas Petroleum
International Limited (29 percent participating interest), who is the
Administrative Operator, Glencore Exploration Ltd. (25 percent
participating interest) and Osborne Resources Limited, a company within the
PA Resources Group (six percent participating interest). GEPetrol (the
national oil company of the Republic of Equatorial Guinea) has a five
percent carried interest once commerciality has been determined.
Charles D. Davidson, Noble Energy's Chairman, President and CEO, said,
"The success at Yolanda continues the momentum of our exploration and
appraisal drilling program in Equatorial Guinea. This discovery represents
our fourth consecutive successful well in Equatorial Guinea. Since
beginning our exploration program in late 2005, there has only been one dry
hole out of the six wells drilled in Blocks "O" and "I". Our discoveries,
which include both gas-condensate and oil fields, have confirmed that this
basin contains huge hydrocarbon resources. We look forward to
additional exploration and appraisal drilling while moving forward with our
planning for commercial development of these important discoveries."
Noble Energy is one of the nation's leading independent energy
companies and operates throughout major basins in the United States
including Colorado's Wattenberg Field, the Mid-continent region of western
Oklahoma and the Texas Panhandle, the San Juan Basin in New Mexico, the
Gulf Coast and the deepwater Gulf of Mexico. In addition, Noble Energy
operates internationally in Argentina, China, Ecuador, the Mediterranean
Sea (Israel), the North Sea (UK, the Netherlands, and Norway), West Africa
(Equatorial Guinea and Cameroon) and Suriname. Noble Energy markets natural
gas and crude oil through its subsidiary, Noble Energy Marketing, Inc.
Visit Noble Energy online at http://www.nobleenergyinc.com.
This news release may include projections and other "forward-looking
statements" within the meaning of the federal securities laws. Any such
projections or statements reflect Noble Energy's current views about future
events and financial performance. No assurances can be given that such
events or performance will occur as projected, and actual results may
differ materially from those projected. Important factors that could cause
the actual results to differ materially from those projected include,
without limitation, the volatility in commodity prices for oil and gas, the
presence or recoverability of estimated reserves, the ability to replace
reserves, environmental risks, drilling and operating risks, exploration
and development risks, competition, government regulation or other action,
the ability of management to execute its plans to meet its goals and other
risks inherent in Noble Energy's business that are detailed in its
Securities and Exchange Commission filings. The United States Securities
and Exchange Commission permits oil and gas companies, in their filings
with the SEC, to disclose only proved reserves. We may use certain terms in
this press release, such as "resources," "estimated resource range,"
"resource potential" and "potential resources," that the SEC's guidelines
strictly prohibit us from including in filings with the SEC. Investors are
urged to consider closely the disclosures and risk factors in our Forms
10-K and 10-Q, File No. 1-07964, available from Noble Energy's offices or
website, http://www.nobleenergyinc.com. These forms can also be obtained
from the SEC by calling 1-800-SEC-0330.

Matthias Offodile

November 17th, 2007, 03:52 PM

Total finds more oil off Congo (Brazzaville)

LONDON, Nov. 16 -- Total E&P Congo has found six oil reservoir levels in its ultradeepwater Persee Nord Est Marine-1 discovery well. The well, which targeted Miocene rock, was drilled on Mer Tres Profonde Sud (MTPS) block off Congo (Brazzaville).

The well, which reached 4,110 m TD, is 185 km offshore in 2,120 m of water.

Total will now start on field development studies to bring together its other previous oil discoveries after assessing the resources.

"Following Andromède in 2000, Pegase Nord in 2004, Aurige Nord in 2006, and Cassiopee Est in 2007, this new drilling success is the fifth oil discovery in the MTPS permit," Total said.

MTPS block spans more than 5,000 sq km and lies in 1,300-3,000 m of water. Total is operator with a 40% interest. Partners include Eni Congo, 30%, and Esso E&P Congo (Mer Très Profonde Sud) Ltd., 30%.

Contact Uchenna Izundu at uchennai@pennwell.com.

kulani

November 17th, 2007, 08:16 PM

East Africa: Integration Good for Growth, Says U.S. Treasury Secretary

Inter Press Service (Johannesburg)

17 November 2007
Posted to the web 17 November 2007

Sarah Mcgregor
Dar Es Salaam

The momentum towards regional integration in East Africa received encouragement from the U.S. this week, with U.S. Treasury Secretary Henry Paulson saying that it should boost economic growth in the five-member East Africa bloc.

"This is a region that has showed great economic growth over the last couple of years," Paulson told reporters on Nov. 15 in Arusha, Tanzania, following a meeting with east African finance ministers. "Economic integration is a very powerful force."

The East African Community (EAC), comprising Uganda, Kenya and Tanzania, as well as newcomers Rwanda and Burundi, formed a customs union in 2005 that cuts duties on most exports within the region.

The five nations plan to strengthen trade ties with the introduction of a common market by 2010 and then adopt a European Union-style single currency. The ultimate goal is to achieve closer political cooperation with a regional parliament and one president governing an East African Federation.

Paulson said he supported the drive for East African nations to work together rather than just on their own.

"Economic integration is very important," stressed Paulson. "This is a great region to invest in and has real potential."

A top priority for the bloc should be the harmonization of markets selling stocks and bonds in order to spur "balanced and inclusive" growth, he said.

Already, Kenya and Uganda have decided to merge their stock exchanges within a couple of years and Tanzania is considering whether to join them.

A drive to raise financing for infrastructure projects should also sit at the top of the EAC agenda, said Paulson.

The dilapidation of roads, ports and railway lines slow down the shipment of goods and increase the cost of doing business across the region, an East African Business Council survey shows. Erratic electricity supplies can slow or even shut down production, hurting business, it says.

In September, Tanzania was granted $698 million from the Millennium Challenge Corporation, its largest to date, to rehabilitate electricity networks, upgrade roads and boost clean water supplies. The MCC, an anti-poverty initiative launched by U.S. President George W. Bush, aims to improve infrastructure and accelerate economic growth in Tanzania with a five-year package.

A proven effort to root out corruption, based on a report card score, is one of the main prerequisites for poor countries to qualify for MCC funds. "Corruption is the enemy of the investor," said Paulson.

The International Monetary Fund has said it expects growth in the East African community to accelerate to 7 percent in 2007 and 2008 thanks to improved economic management and fiscal reforms.

Economic growth in the EAC region is forecast to surpass the average for all of sub-Saharan Africa. The continent, as a whole, is expected to record 6 percent growth over the next two years, according to the IMF.

The EAC bloc, with a population of 125 million and a combined gross domestic product of $104 billion, has the potential to gain more from deeper harmonization, said Paulson. The next step for the EAC is to draft the rules of a common market that would allow the free movement of labour, goods and services across national borders.

Negotiators from the five-partner states, civil society representatives, business people and legal experts have already done the groundwork and formal talks should start any time, Juma Mwapachu, secretary general of the EAC, said in an interview this week.

A common market in the next three years "is definitely doable," said Mwapachu, on the sidelines of an African business forum in Arusha.

"I think there will be a great deal of pragmatism to ensure the purpose of the common market is achieved."

The elimination of non-tariff barriers -- such as delays at border points and cumbersome customs procedures -- could become potential stumbling blocks, said Mwapachu.

There are also fears that highly skilled workers may seek employment in neighbouring countries and squeeze local people out of the job market, said Mwapachu.

"One of the challenges will be the free movement of labour. Countries with lower skill levels feel that with opening up, maybe Kenyans will take most of the jobs in those countries," he said.

He named the health, education, banking, insurance and tourism sectors as possible sore spots. "We are really trying to say that labour laws will still be determined at the national level," said Mwapachu.

Paulson will attend a Group of 20 gathering of finance ministers and central bank governors to be held November 17-18 in Kleinmond, a small coastal town in South Africa.

Ghana is the final stop on his three-nation African tour. There, Paulson is expected to meet the west African country's president, John Kufuor, and business leaders on November 19.

kulani

November 17th, 2007, 08:17 PM

G20 finance ministers begin talks in South Africa

http://afp.google.com/article/ALeqM5gezQaD6qBDur3_uFuF4-j0DiiaEQ

2 hours ago

JOHANNESBURG (AFP) — Finance ministers from the world's largest 20 economies began talks Saturday in South Africa focusing on reforming the World Bank and the International Monetary Fund (IMF).

The two-day gathering in Kleinmond, near Cape Town, is the first time the G20 group of bank chiefs and finance ministers has met in an African country.

It is also the first time the new head of the World Bank, the American Robert Zoellick, and the new head of the IMF, France's Dominique Strauss-Kahn, will hold round-table talks with the G20.

The conference will hear calls for the modernisation of both institutions.

"The subject will be at the heart of our talks," South African Finance Minister Trevor Manuel said at a preliminary press conference.

"The unequal power balance in the world economic system" will be brought up, South African Central Bank governor Tito Mboweni said.

Many emerging powers within the G20, such as South Africa, believe that the current set-up of the IMF and the World Bank do not take into account the demands of developing countries.

"The world has changed, it is not like it was 50 years ago. Countries like Brazil, India or South Africa need greater consideration," Strauss-Kahn admitted recently.

The G20 represents nearly 90 percent of the world economy and two thirds of its population.

It includes the wealthy G-7 nations -- the United States, Germany, Japan, France, Italy, Britain and Canada -- as well as the European Union, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey.

Strauss-Kahn, a former Socialist finance minister of France, took over at the IMF this month. His candidacy was backed by South Africa on the condition that the developing world's representation in the 185-nation institution would be significantly increased on his watch.

Zoellick, who became president of the World Bank in July after being hand-picked by US President George W. Bush, gained experience of the developing world with previous posts as number two in the State Department and as US Trade Representative from 2001-2005.

The meeting comes at a precarious time in the global economy with the price of a barrel of oil nudging 100 dollars and the sub-prime mortgage problems in the US affecting other lenders worldwide.

Matthias Offodile

November 18th, 2007, 11:29 PM

MASSIVE DEBT CANCELLATIONS FOR CONGO BRAZZAVILLE

The country seems to have been run very badly and carelessly in the past, it is an extremely highly indebted country, I have read that it was indebted more than 250% of its GDP!!!

Well, good news is that its debts are written off now

Paris Club cancelled part of its debts last year

Debt of US$ 1.6 billion cancelled for Congo Brazzaville

AFP, 16/12/2006 - Congo Brazzaville's main creditor nations have decided to cancel US$ 1,570 million of the poor country's external debt. A further US$ 1,450 million in debt are to be rescheduled to given Congolese authorities an opportunity to lower repayments and invest in social structures and economic development.

This major debt cancellation for Congo Brazzaville was announced by the so-called Paris Club today. The Paris Club is an association of the world's major industrialised countries, which also are the leading creditor nations. The Paris Club acts as a group considering debt cancellation for poor and heavily indebted countries that have reformed their economy in line with demands from the IMF.

Congo Brazzaville, according to the Paris Club, indeed had implemented "economic and financial recovery" efforts in the course of the last two years. The war-ravaged oil producing country has closely followed economic reform prescriptions of the IMF and managed to turn a poor economic trend into growth.

Even the Congolese oil sector, previously known as a stronghold of corruption, has been managed in a more transparent manner, according to the last IMF reviews of Congo Brazzaville. The IMF recently thus recommended a debt cancellation for the impoverished country, holding that Brazzaville authorities now were spending funds on poverty reduction.

The new agreement offered by the Paris Club treats a total amount of US$ 3 billion of debt, cancelling US$ 1,570 million and rescheduling US$ 1,450 million. This gives Congolese authorities a strongly reduced repayment burden. 67 percent of commercial credits are cancelled. The remaining amounts are rescheduled over 23 years, with 6 years of grace.

This means that Congo Brazzaville's debts to Paris Club creditors are cut from around US$ 3,730 million down to around US$ 770 million. With more economic reforms implemented in Brazzaville, the Paris Club stated that it would extend the agreement to a 90 percent cut of all debts by the country.

The creditor nations "stressed the importance" they attached to "the continued satisfactory implementation" of Congo Brazzaville's economic programme and its poverty reduction strategy. The IMF is to oversee Brazzaville's poverty policies and budget spending also during the next years to assure that authorities keep in line with promised reforms.

The total stock of Congo Brazzaville's external public sector debt was estimated as of end 2003 to be US$ 11,570 million. The World Bank has already cancelled parts of Brazzaville's debts and Congolese authorities are now to seek comparable treatment from its other external creditors.

and now the Club of London

London Club cancels 80 percent of Congo's debt

Thu Nov 15, 2:48 PM ET

BRAZZAVILLE (AFP) - Congo and the London Club of private creditors reached a deal on Thursday to cancel 80 percent of the central African country's estimated 2.5-billion-dollar debt.
ADVERTISEMENT

The London Club will cancel 927 billion CFA francs (about 2.0 billion dollars, 1.4 billion euros) in debt, leaving 268 billion CFA francs, said Congo's finance minister, Pacifique Issoibeka.

"Funds freed up by the cancellation of the debt will be lodged at the central bank to finance sectors to help the poor: water, health, electricity, infrastructure and education," the minister said.

Congo last year gained access to an initiative in favour of highly indebted poor countries allowing up to 90 percent of their debt to be cancelled if they carry out International Monetary Fund programmes.

Congo reached an agreement with the IMF in 2004.

In 2006, the Paris Club of creditor countries cancelled 67 percent of Congo's eligible debt.

Matthias Offodile

November 18th, 2007, 11:32 PM

btw, a stark contrast to Equatorial Guinea which has never amassed any form of debt during times of boom till now!

Bond James Bond

November 19th, 2007, 11:48 AM

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

http://www.ft.com/cms/s/0/178a95ae-960f-11dc-b7ec-0000779fd2ac.html

Investors focus on Africa potential
By Joanna Chung in London

Published: November 18 2007 22:02 | Last updated: November 18 2007 22:02

It is no longer a matter of Out of Africa. Instead, it is into Africa.

The continent is at the heart of the latest surge of enthusiasm to hit emerging markets. In their search for yield, investors, bankers and companies are focusing on opportunities in some of the most far-flung corners of the world.

“Africa is the largest and most exciting group of the frontier markets and everyone wants to be part of it,” says Richard Segal, fixed income strategist at Renaissance Capital, the Russian investment bank.

Interest seems to have intensified in recent months – amid the credit turmoil in western finance – because African markets have exhibited low correlation to each other and other emerging and developed markets.

“It is a world blissfully un*aware of the subprime carnage and the American housing crisis,” says Jeremy Gardiner, director at Investec Asset Management, which manages assets worth about $34bn in Africa.

Underlying investors’ excitement is the growth potential of sub-Saharan Africa, which has seen substantial economic improvements in recent years, fuelled by a commodities boom and helped by widespread debt relief and improvements in economic policy, analysts say.

Although private capital flows to sub-Saharan Africa are still dwarfed by those to regions such as Asia, they have tripled since 2003, according to the International Monetary Fund. In 2006, total gross private flows amounted to about $45bn – almost 6 per cent of gross domestic product – compared with about $9bn in 2000.

The agency said net foreign direct investment, the largest source of private capital inflows into the region, should reach about $18bn this year. One of the biggest is the planned $5.5bn deal by Industrial and Commercial Bank of China to buy a 20 per cent stake in South Africa’s Standard Bank.

New Star last week launched its Heart of Africa Fund, which covers sub-Saharan Africa excluding South Africa, after raising £34m. It is the latest fund dedicated to the region launched in recent months.

However, some investors remain extremely cautious, pointing to the high risks involved.

Most equity and debt markets in Africa are small, illiquid and underdeveloped, information is generally less available than in other markets, and there are concerns about corruption. More*over, it is far from clear how long the commodity boom will last.

Matthias Offodile

November 19th, 2007, 12:48 PM

UAE eyes cooperation with Reunion Island

2007-09-18

APA-Saint-Denis (Reunion) The United Arab Emirates ambassador to southern Africa, Al Ali says the Island of Reunion has everything needed to give the country a glowing tourism industry.

“You have a lovely island, beautiful landscapes, a highly welcoming population, very good infrastructure, political stability which are excellent assets to attract tourists.

I have more especially appreciated the nature and the greenness of landscapes, we are interested in this,” Ali said Saturday at the end of a three-day visit to Reunion.

Ali’s visit was organised by the Reunion South African Cooperation Association in the Island country.

It was the ambassador’s first visit which was intended to explore avenues for cooperation between the two countries and investment opportunities in the Indian Ocean French region.

It is also the first time a high-ranking UAE representative pays an official visit to the island.

IB/tjm/APA

Matthias Offodile

November 20th, 2007, 11:54 AM

Heritage Oil to expand into Mali with two oil exploration licenses

/THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Nov. 19 /CNW/ - Heritage Oil Corporation (TSX: HOC) today
announces that it has farmed-in to two onshore exploration licenses in the
Republic of Mali, in North-West Africa, with a gross area of over 72,000
square kilometres. Heritage will be appointed as Operator.
Wholly owned subsidiaries of Heritage have acquired a 75% working
interest in Block 7 and Block 11 from Mali Oil Developments SAR, a wholly
owned subsidiary of the public company Centric Energy Corp (TSX.V:CTE). In
return for earning the working interest Heritage will fund all costs of the
obligatory work programs for the next two years in both blocks, comprising the
acquisition of 2D seismic and the drilling of one exploration well, at a total
estimated cost for the two licenses of between US$15 million and
US$20 million.
The two licenses are located in the Gao Graben, a Mesozoic basin that
management considers has geological similarities to other Mesozoic
interior-rift basins within North Africa, such as the Muglad Basin of Sudan
and the Doba Basin of Chad, and Tertiary basins such as the Albert Basin of
Uganda. Previous seismic data acquired in Blocks 7 and 11 show the presence of
tilted fault-block traps, and indicate up to approximately 4 km of sediments
in the geological section.
The acquisition is expected to close within the next three months,
subject to certain conditions precedent, including customary governmental
approvals which the Company expects will be met.
Mr. Tony Buckingham, CEO, stated:
"This acquisition is very exciting for Heritage as it provides a
strategic entry into Mali, and diversifies further the Company's African
portfolio by offering additional potential for the discovery of large
structures in an under-explored basin. Mali is attracting considerable
interest from exploration companies, including majors, and is witnessing an
increased level of licensing activity. We consider the acquisition of these
prospective licenses as an extension of the Company's strategy to explore new
regions with considerable hydrocarbon potential. Heritage has a proven
track-record of finding new large discoveries, including the hydrocarbon
system in Lake Albert, Uganda and the M'Boundi oilfield in the Republic of
Congo, and I am confident that the Company will continue to do so."

sammyjay77

November 20th, 2007, 04:12 PM

Matthias Offodile

November 20th, 2007, 04:55 PM

But Africa has to surpass this stage of commodity based economies and exporting everything out of the continent like it was the case in the 18th , 19th and 20th century.

Matthias Offodile

November 21st, 2007, 12:05 PM

Talking digital and facilitating chip card will be introduced in Gabon, Côte d´ivoire and Senegal by 2008. The card can be used from computer, handy or fixed phone lines. Sounds really intriguing. Read it, please!

Un porte-monnaie électronique pour l’Afrique

Publié le 10 novembre 2007

Une jeune société vient de mettre au point une carte de paiement acoustique, présentée comme une première mondiale, qui vise en priorité les populations des pays émergents peu dotés en infrastructures bancaires. Baptisée Maâtcard, elle doit être commercialisée au Sénégal, en Côte d'Ivoire et au Gabon en 2008, a expliqué Patrick Ulanowska, président de la société Universal Payment System & Solutions (Unipay's), à l'origine du projet.
L'originalité de cette carte est d'être "équipée d'une puce acoustique et d'un bouton, qui par simple pression, émet un signal sonore crypté, unique et aléatoire (donc infalsifiable)", explique dans un communiqué la société Unipay's.

"La carte est personnalisée, chaque utilisateur choisissant un code à 4 chiffres au moment de la délivrance de la carte", qui pourra être utilisée depuis des téléphones fixe ou mobile et des ordinateurs munis d'un microphone.

"L'appel sera gratuit" pour le client, a assuré Patrick Ulanowska, président de Unipay's.

Cette carte, qui fonctionnera comme un porte-monnaie électronique et non comme une carte de crédit, pourra également servir de mode paiement dans des commerces équipés d'un terminal adapté. Elle permettra aussi des transferts d'argent instantanés, des règlements de factures ou des rechargements de crédit téléphonique.

Elle pourra en outre être munie d'une puce et d'une bande magnétique comme les cartes traditionnelles, selon la société, qui met en avant l'"offre inédite de cette carte multiapplicative, multicomposant, multicanal, premier moyen hybride de paiement universel sans contact au plan mondial".

La Maâtcard, conforme aux standards internationaux du secteur (EMV), a reçu l'agrément de la Banque des Etats de l'Afrique centrale (BEAC).

Dans les pays occidentaux, "déjà suréquipés", cette carte acoustique, qui n'implique pas une longue manipulation ou la possession d'un compte bancaire, pourra répondre aux besoins des populations fragilisés physiquement, comme les personnes dépendantes, ou financièrement.

Deux grandes banques françaises ont déjà manifesté leur intérêt, a indiqué sans plus de précisions M. Ulanowska.

To get an idea of what this card will be, check out this link: http://maatcard.com

sammyjay77

November 21st, 2007, 12:15 PM

--------------------------------------------------------------------------------

Wednesday, 21 Nov 2007
YarAdua seeks $13m debt forgiveness for Liberia
John Alechenu and Victor Sam, Abuja

President Umaru YarAdua on Tuesday wrote a letter seeking Senates approval to write off $13m out of a debt profile of about $48m owed Nigeria by Liberia.

The President of the Senate, Senator David Mark, read YarAduas letter during plenary.

The President observed that Nigeria made enormous sacrifices to bring peace to Liberia and that writing off the debts would assist the country in its rebuilding programme.

YarAdua said the proposed partial debt write-off was part of a broader initiative by the international community to assist Liberia clear its huge debt arrears owed to the World Bank, the International Monetary Fund and the African Development Bank.

The debt owed to the ADB, amounts to $249m. Of this amount, about $48m represents loans refinanced through the Nigeria Trust Fund window which was set up by Nigeria in 1976 under the ADB management.

It was meant to assist poor African countries with soft loans towards meeting their developmental needs.

YarAduas letter reads in part, Since my assumption of office on May 29, 2007, the Liberian Government has made several passionate pleas to Nigeria to write off the debts owed to the Nigeria Trust Fund as well as help canvass support for debt relief from other creditors.

Liberias debt burden currently constitutes an impediment to the countrys economic recovery and reconstitution efforts, which are needed to secure durable peace.

The outstanding arrears owed to multilateral financial institutions are standing in the way of the country accessing grants and concessional loans as well as benefiting from debt relief under the highly-indebted poor countries (HIPC) initiative.”

YarAdua said this consideration moved the Federal Executive Council to endorse a proposal to write off $13m out of $48m outstanding debt owed to Nigeria as the nations contribution towards Liberias debt arrears clearance process.

This amount, he said, covered Nigerias existing commitment (estimated at $10.6m) under a three-way burden sharing arrangement worked out by Liberias development partners and provided an additional amount sufficient enough to bridge the financing gap.

He explained that the debt relief would be financed from a grant drawn out of the recycled net income earned by the Nigeria Trust Fund since inception and would not require appropriation from the Consolidated Revenue Fund.

The President explained that the rationale for endorsing this proposal was the need to consolidate Nigeria s previous efforts in securing peace, which involved tremendous sacrifice in terms of human lives and huge investment in financial resources.

He expressed fears that Liberia stood the risk of sliding back into anarchy if progress was not made in achieving sustainable economic development.

YarAdua said allowing Liberia slide back into anarchy would undermine Nigerias previous efforts.

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Matthias Offodile

November 21st, 2007, 01:22 PM

South Africa to assist in DRC infrastructure

Published: 16-NOV-07

South Africa and the Democratic Republic of Congo (DRC) have signed a Memorandum of Understanding (MoU) which will facilitate infrastructure development in the DRC, BuaNews has reported.

In terms of the MoU, South Africa will assist the DRC in developing infrastructure crucial to the country's socioeconomic development.

The MoU was signed by the Minister of Public Works Thoko Didiza and the DRC's ambassador to South Africa Bene Mpoko.

Some of the issues covered by the MoU are:

- asset register issues whereby all government assets are identified, registered, maintained and rehabilitated;

- labour-intensive methods in infrastructure development to create jobs, reduce poverty and train artisans;

- development of rural areas;

- facilitation of capacity-building and registration of all professionals in the built environment; building of Kinshasa Airport; and the improvement and certification of construction materials.

Speaking at the signing ceremony, Minister Didiza said the signing was a landmark event because of the importance of its contents.

"I am happy that today we have reached this milestone because we all know that infrastructure is crucial for the two countries and for the African continent, because it is important for the socioeconomic development of our people," she said.

The minister explained that South Africa would assist the DRC to rehabilitate the infrastructure destroyed during years of conflict there, and to build and maintain new facilities.

Ambassador Mpoko said the occasion was a milestone in the relationship between the two countries.

"As you are aware our President [Laurent Kabila] has identified the development of infrastructure in the DRC as priority number one.

"For a country to develop you need basic infrastructure, and you must maintain that infrastructure," he said.

He told the gathering that his country had not built anything in 40 years while there was war and whatever little infrastructure existed was destroyed during the war.

The Congolese thus have very limited experience and expertise in infrastructure development, he pointed out.

The ambassador explained that the DRC had signed an agreement with China that would provide it with financial resources and technology, but said South Africa's role was important in providing the Congolese with much-needed skills to be able to participate in infrastructure development.

"This MoU will provide us with training so that we can participate in the construction of infrastructure that will be happening, we cannot stand aside while there are projects that are going on in our country," Ambassador Mpoko said.

sammyjay77

November 21st, 2007, 04:49 PM

http://www.tradingmarkets.com/.site/news/Stock%20News/847610/

milan group invests $80 million in 'tallest hotel in nigeria'
Nov 21, 2007 (Al-Bawaba via COMTEX) -- IHG | charts | news | PowerRating -- milan group invests $80 million in 'tallest hotel in nigeria' Construction begins on InterContinental Lagos as city sees renewed investment in infrastructure Construction has begun on InterContinental Lagos, InterContinental Hotels Group's first property in Nigeria. The owning company, the Milan Group, is spending approximately $80 million on the prestigious project, which is set to be the tallest hotel in the country at 100 metres high.

The development, which is centrally located on Victoria Island, will cater for a steadily increasing number of business travellers arriving in Nigeria, as the country goes through a period of renewed investment in its infrastructure.

John Bamsey, Chief Operating Officer, InterContinental Hotels Group, Middle East and Africa, said, "InterContinental Lagos is a key property for us as we expand our presence across the Middle East and Africa region. Current plans are to almost double the number of properties in our portfolio by the end of 2010 with 11 hotels set for Africa alone." "With luxury and excellence as standard, InterContinental Lagos will provide services and amenities specifically designed for the international business traveller," added Bamsey. "In addition, we will differentiate from our competitors by offering authentic local experiences that enhance the leisure stay." Ramesh Valechha, Chairman of Milan Industries Ltd said, "InterContinental Lagos will be the first of a new generation of modern hotels in the region, setting new standards in upscale hotel facilities and services. Offering an international brand such as InterContinental will meet the needs of an increasingly discerning market of business travellers arriving in Lagos." The development is a clear reflection of InterContinental Hotel Group's confidence in the city, which is seen as a thriving commercial hub of Nigeria. Surrounded by creeks, lagoons and rivers, Lagos has undergone substantial development and has steadily witnessed a vast expansion of local industries.

In 1999 the United Nations predicted that the city's metropolitan area, which had only 290,000 inhabitants in 1950, would exceed 20 million by 2010. The new government is therefore focused on increasing investment in the city's infrastructure to support this growth. International help came from the World Bank in 2006 when it granted US$200 million for the Lagos Metropolitan Development and Governance Project, aimed at improving urban areas.

Inbound travel is also on the increase with the World Travel and Tourism Council (WTTC) predicting that Nigeria's travel and tourism will grow 1.6% in 2007 and by 2.0% per annum, in real terms, between 2008 and 2017.

InterContinental Lagos will feature 230 Standard Rooms, each measuring 42 square meters, 87 Club Rooms, 31 Bay Suites, one Junior and one Presidential Suite. Food and beverage options include an all day dining restaurant with a view of a seven metre high waterfall, a 116-seater lobby bar, two speciality restaurants and a Garden Cafe.

A full health club including steam and sauna rooms, as well as a 22 metre swimming pool will allow guests to indulge in a state-of-the-art relaxation programme. Water sports and beach activities for both adults and children will be provided, offering guests the opportunity to take full advantage of Victoria Island's beaches.

Top-of-the-range business facilities include IP telephony, wired and wireless connectivity throughout the hotel, and a 1300 square metre meeting room with seating capacity of 870. Board Room and Business Centre are available to guests along with five meeting rooms spread over 400 square meters.

IHG's entrance into the Nigerian market will further strengthen its position within Africa, with two already existing InterContinental properties and current plans to open 10 hotels across the InterContinental, Crowne Plaza, Holiday Inn and Express by Holiday Inn brands by the end of 2010.(C) 2007 Al Bawaba (www.albawaba.com)

DanteXavier

November 24th, 2007, 10:04 AM

Uganda: Museveni Calls for Industries

PRESIDENT Yoweri Museveni has called for the harmonisation of development among Commonwealth countries. Opening the Commonwealth Heads of Government Summit, the President pointed out that there was a direct link between the level of industrialisation, per capita income and human development indicators.

Using figures, Museveni said countries like UK, Canada, Australia and New Zealand had shifted from agriculture to industries and services, which has translated into higher income, lower child mortality and higher life expectancy.

"The present partial transformation of the Commonwealth societies is not good enough for the individual countries, nor is it good for the Commonwealth in general or the wider world," he said.

He identified, as reasons for this unequal development, the lack of a large market to absorb what a country produces. For small countries like Uganda, he noted, regional integration and access to international market were very important.

Other strategies needed for transformation were stimulating private sector-led-growth, adding value and exporting finished products, instead of exporting raw materials, the President remarked.

By exporting raw coffee beans, Uganda was 'donating' $19 to the outside world for every kilogramme of coffee sold, he argued.

"We do not only donate money, but we also donate jobs. If a Third World country exports semi-processed lint cotton, it, in effect, exports several levels of jobs: the spinning jobs, the weaving jobs, the printing jobs and the tailoring jobs."

He slammed certain groups that "speak loudly about good governance (but) do not speak about this haemorrhage that is a form of modern slavery".

Museveni cited other factors that bring about transformation as human resource development, through education for all, and improved health through immunisation, hygiene, nutrition, accessible to all and behaviour change in relation to AIDS prevention.

"A healthy, educated, skilled and intellectualised population is the greatest resource a country can possess."

Good infrastructure, which lowers the cost of doing business, as well as peace and political accountability were additional prerequisites for transformation from an agricultural to an industrial society.

"In this process of democracy, we also need to twin rights with responsibilities of political actors and the media."

http://allafrica.com/stories/200711240026.html

boris89

November 27th, 2007, 12:48 AM

Ivory Coast economy to grow 3 pct in 2008 -IMF
Mon 26 Nov 2007, 17:50 GMT

(Adds more quotes, details on cocoa sector)

By Ange Aboa

ABIDJAN, Nov 26 (Reuters) - Ivory Coast's economy will grow by around 3 percent next year, above earlier government forecasts, as the West African country reaps the benefits of a peace deal, the International Monetary Fund said.

"In 2008 we and the (Ivorian) authorities expect growth of around 3 percent and so there'll be a slight improvement," Philippe Egoume Bossogo, the IMF representative in the former French colony, told Reuters in a weekend interview.

National and international investment is expected to pick up as confidence returns following the signing in March of a peace pact between President Laurent Gbagbo's government and rebels who have held the north since a 2002/03 civil war.

The deal foresees moves to reunify the world's top cocoa grower, culminating in presidential and parliamentary elections planned for next year.

Ivory Coast's finance minister said early last month economic growth as measured by an increase in gross domestic product (GDP) was expected to accelerate to 2.5 percent in 2008 from a forecast 1.8 percent this year.

Bossogo expected that military spending during the conflict would be able to be redirected to other sectors of the economy.

"It is foreseeable that since the conflict has ended resources which were allocated to spending linked to the crisis can be redeployed for social priorities," he said.

He expected this spending to be directed towards the building of roads, schools and hospitals which had been damaged during the war.

Ivory Coast was long the economic jewel of French-speaking West Africa but the civil war and the resulting division of the country had caused its economy to stagnate.

Bossogo also called for reforms in the cocoa and coffee sector, the country's biggest export earner, which has been long criticised for its lack of transparency.

"Both national and international players recognise that the sector has a problem and we've reached agreement with the authorities for them to undertake a study on the future and the restructuring of the cocoa/coffee sector," he said.

Ivory Coast's cocoa sector is in the midst of a feud in which farmers have accused the leaders of several industry bodies of embezzling funds meant for them.

Gbagbo in October ordered the public prosecutor to investigate cocoa industry agencies after allegations that more than 100 billion CFA francs ($220 million) had gone missing. (Editing by Nick Tattersall and Tony Austin)

You are to blame

November 27th, 2007, 02:33 AM

Mozambique gets in line for prosperity
November 25, 2007

By Greg Mills and Niels B Thuesen

Mozambique sits today on the cusp of globalisation, having enjoyed 15 extraordinary years of recovery since the end of its civil war in 1992.

This has produced a different country.

Flying into the northern Tete province offers a sense of the immense change - and challenge. Shimmering in 43 degree celsius heat on the one side of the runway is the skeleton of the old airport, reputedly attacked by Rhodesians in the late 1970s. The checkered control tower fades gently into the undergrowth, while in the foreground a dilapidated Dakota drunkenly wags one wing toward the sky. This is a monument to the folly of war and of central planning.

But on the other side of the runway is a newer, smarter terminal building. Peace, multiparty democracy and a market economy have brought other dividends and there is much more in the pipeline.

At one time a battleground between the rebel (and now official opposition) Renamo movement and the Frelimo government, Tete was once war-torn, then sleepy and always very, very poor. But today there is a new urgency and a lot more going on.

One can see Brazilian coal mining, railway rehabilitation, tobacco leaf production and much other agriculture. Then there is the Cahora Bassa hydro plant: a four-generator dam, the second largest in Africa, producing 2 200 megawatts, almost all of it sold to neighbouring South Africa.

Now the Mozambique government has bought out the majority Portuguese stake, and is aiming at building a second 1 500MW hydro facility dam downstream at Mpanda Uncua downstream on the great Zambezi. No doubt there will be a willing market in load-shedding South Africa.

Elsewhere in Tete, from almost nothing, US-affiliate Mozambique Tobacco Leaf Company will have established 90 000 outgrowers each making up to $400 (R2 702) profit for their tobacco crop annually from next year. Before, these farmers simply subsisted from the land. The province produced just 15 000 tons of tobacco three years ago; today it is 28 000 tons, and the aim is to produce 70 000 tons by 2015, which is what Zimbabwe grows now.

This has been achieved by the private sector which funds all inputs for the farmers, offers them training and technical advice, and buys their tobacco from the farm gate, cutting out middlemen.

Now the company is planting new forests and diversifying into soya and other crops, including ground nuts. This shows what the private sector can do to reduce poverty. Commerce ensures sustainability, unlike most aid programmes.

The Brazilian mining giant CVRD is also investing $1.5 billion in an 11 million ton per annum coal mine in the province, which they expect will last 35 years. This will also feed a planned thermal power station at Moatize. And there are numerous other prospectors sniffing around for a variety of minerals from more coal, graphite, bauxite and iron.

But this story is not just about finding things to dig up or to grow.

By adopting liberal political and economic reforms, Mozambique has moved with astonishing speed from an apparently failed state to one of Africa's most notable success stories.

Three multiparty elections have now been conducted, the most recent of which resulted in President Armando Guebuza's inauguration in January 2005. Now that peaceful governance covers the whole country, the groundwork has been laid for a most remarkable transformation.

Economic performance has been impressive. Real gross domestic product growth since 1993 has averaged more than 8 percent. Annual inflation has shrunk from more than 50 percent in 1995 to less than 8 percent this year.

It is not only higher commodity prices which have caused such high growth. Mozambique has also attracted a significant amount of foreign investment which increased from $9 million in 1990 to $337 million in 2003, reaching a total stock in 2004 of more than $4 billion.

Most of the investment has been concentrated in a few mega-projects including the Mozal aluminium smelter in the south, the Sasol natural gas pipeline from Inhambane, and now CVRD.

Despite this impressive performance, Mozambique still has to solve three big problems.

The first is, that while the mega-projects are earning the government revenue, they are not creating enough jobs and therefore not reducing poverty fast enough.

For example, in drab and depressed Beira, once the hot holiday spot for many of the 300 000 mainly Rhodesian and South African tourists who visited annually before independence, 70 percent of its people are unemployed.

Second, although agriculture production has grown an average of 8 percent per year for the past three years, the country is still not able to completely feed itself, not least since it is unable to distribute surpluses around the country. It is also not adding enough value to its agriculture commodities.

So the benefits of high growth have not reached down to everyone, especially in the countryside. Rural people are only half as wealthy as the national average and enjoy less than one-quarter of the income of Maputo's 2 million inhabitants.

Third, more than half the government budget comes from donors, an inflow of aid of more than $1 billion annually, equalling more than 20 percent of gross domestic product.

This leaves Mozambique vulnerable to any future drops in aid as well as to the distortions of aid, including currency overvaluation (making exports less competitive) and reducing the voice of the private sector in economic decision-making.

So how should Mozambique cross that divide from mere recovery to real globalisation and prosperity?

Given its similar colonial and violent history, coastal geography and economic profile, Vietnam offers some useful lessons.

The southeast Asian country has grown its economy spectacularly in spite of its difficult geography and history, through a development process based on sequenced growth in agriculture, manufacturing and services. Like Mozambique, Vietnam has a political economy traditionally rooted in small-holder subsistence agriculture.

Fifteen years ago it was a net rice importer, and produced hardly any coffee. Today it is the world's second largest exporter of both crops. Vietnam's agriculture revolution, like that of Taiwan and elsewhere in Asia, was essentially based on four simple tenets:

n extending land tenure and usage rights;

n improving inputs including fertiliser, irrigation techniques and infrastructure, seeds and fuel;

n producing cash crops;

n opening markets.

Its transformation has been underpinned by local ownership of the development process, a focus on encouraging private investment and on locals being involved in determining how aid should be spent.

Vietnam's success shows that anyone can make it, whatever their background or connections. Notably, not only do they tolerate the mega-wealthy among their ranks, but Vietnamese publicly and proudly celebrate business success. Vietnam has moved quickly from war to business heroes.

The Vietnam model suggests that Mozambique should put people, smaller business and economic growth at the centre of the development process.

That, plus a natural resource endowment to make Vietnam jealous, would defeat poverty.

Matthias Offodile

November 27th, 2007, 08:13 PM

I should have checked this thread before posting the identical article on the Oasis. LOL!

Matthias Offodile

November 27th, 2007, 08:16 PM

World Bank: Sub-Saharan income inequalities widen

By Tonny Mafu

November 16, 2007

Johannesburg - Income inequalities among economies in sub-Saharan Africa have worsened, doubling over the past 30 years, the World Bank said.

This is in spite of African countries experiencing growth in line with the rest of the world since the mid-1990s. In sub-Saharan Africa, economies expanded by an average of 5.4 percent a year in 2005 and last year.

High commodity prices were instrumental in lifting export revenues in a number of the economies. For Africa as a whole, the World Bank said resource-rich economies grew at 3.4 percent a year, oil-exporters at 4.5 percent and non-oil exporters at 1.3 percent.

However, research by the World Bank found that poorer countries did not grow as fast, widening the income gap between them and their richer peers. The wealthiest 10 percent of the economies, whose gross domestic product (GDP) per person was about 10 times that of the poorest 10 percent in 1975, increased the differential to almost 20 times in 2005.

The World Bank noted inequality levels were at their worst between 1985 and 1995, when many countries fell into conflicts

"So, even with the country growth rates now converging, Africa has become more unequal across countries," the bank noted.

When compared with South Africa as a benchmark, 19 countries became better off in their income per person, 13 saw no changes and 11 experienced a decline.

South Africa accounted for 40 percent of the region's GDP. Other top performers included Botswana, Cape Verde, Gabon, Mauritius, Namibia and the Seychelles. Together these economies account for 45 percent of the region's GDP, but are home to only 9 percent of the region's population.

Mineral exporters Botswana, Cape Verde and Equatorial Guinea improved their GDP per person the most.

In fact, Equatorial Guinea now has the highest GDP per person in the region, estimated at $7 500 (R50 000), compared with South Africa's $3 400. The West African economy garnered most of its gains between 2000 and 2005, in which income per person grew by 20.4 percent a year. Seychelles and Botswana are second and third, with income per person at $6 600 and $4 500 respectively.

The bank said that to sustain growth, particularly at the levels between 1995 and 2005, economies would have to reduce indirect costs to companies, improve infrastructure, build institutional capacity and increase productivity through investment in technology and skill formation.

mememe

November 30th, 2007, 12:16 AM

africa is doing well i can see

Matthias Offodile

November 30th, 2007, 08:41 PM

Equatorial Guinea to invest in massive infrastructure projects

Engineering Weekly November 20, 2007

Equatorial Guinea will invest billions of dollars over five years in infrastructure programmes to diversify its economy away from its reliance on oil and gas, a government report said on Monday.

The ambitious blueprint includes plans for a refinery, new motorways to penetrate the country's heavily-forested interior, a new airport and hydroelectric power plant, a gas power station, hospitals and training facilities.

Equatorial Guinea is sub-Saharan Africa's third largest oil producer, pumping nearly 400,000 barrels of oil equivalent a day. The discovery of large offshore oil fields in the mid-1990s catapulted Equatorial Guinea from one of Africa's poorest nations to one of its richest per capita, but the new-found wealth has yet to trickle down to its half a million inhabitants.

The economy is expected to expand by more than 20 percent this year, the finance ministry said, sustaining one of the world's fastest rates of GDP growth. The country was ranked at the tenth most corrupt on earth this year by Berlin-based Transparency International.

Shipments began from a 3.4 million tonne liquefied natural gas plant outside the island capital Malabo in May, and officials have said that construction is expected to begin soon on a second train at the plant.

Michaelda

December 2nd, 2007, 05:00 PM

Ending Famine, Simply by Ignoring the Experts
Evelyn Hockstein for The New York Times

The secret of Malawi’s success: heavy subsidies for fertilizer, farmers say. The World Bank had pressed for their elimination. More Photos >

By CELIA W. DUGGER
Published: December 2, 2007

LILONGWE, Malawi — Malawi hovered for years at the brink of famine. After a disastrous corn harvest in 2005, almost five million of its 13 million people needed emergency food aid.

But this year, a nation that has perennially extended a begging bowl to the world is instead feeding its hungry neighbors. It is selling more corn to the World Food Program of the United Nations than any other country in southern Africa and is exporting hundreds of thousands of tons of corn to Zimbabwe.

In Malawi itself, the prevalence of acute child hunger has fallen sharply. In October, the United Nations Children’s Fund sent three tons of powdered milk, stockpiled here to treat severely malnourished children, to Uganda instead. “We will not be able to use it!” Juan Ortiz-Iruri, Unicef’s deputy representative in Malawi, said jubilantly.

Farmers explain Malawi’s extraordinary turnaround — one with broad implications for hunger-fighting methods across Africa — with one word: fertilizer.

Over the past 20 years, the World Bank and some rich nations Malawi depends on for aid have periodically pressed this small, landlocked country to adhere to free market policies and cut back or eliminate fertilizer subsidies, even as the United States and Europe extensively subsidized their own farmers. But after the 2005 harvest, the worst in a decade, Bingu wa Mutharika, Malawi’s newly elected president, decided to follow what the West practiced, not what it preached.

Stung by the humiliation of pleading for charity, he led the way to reinstating and deepening fertilizer subsidies despite a skeptical reception from the United States and Britain. Malawi’s soil, like that across sub-Saharan Africa, is gravely depleted, and many, if not most, of its farmers are too poor to afford fertilizer at market prices.

“As long as I’m president, I don’t want to be going to other capitals begging for food,” Mr. Mutharika declared. Patrick Kabambe, the senior civil servant in the Agriculture Ministry, said the president told his advisers, “Our people are poor because they lack the resources to use the soil and the water we have.”

The country’s successful use of subsidies is contributing to a broader reappraisal of the crucial role of agriculture in alleviating poverty in Africa and the pivotal importance of public investments in the basics of a farm economy: fertilizer, improved seed, farmer education, credit and agricultural research.

Malawi, an overwhelmingly rural nation about the size of Pennsylvania, is an extreme example of what happens when those things are missing. As its population has grown and inherited landholdings have shrunk, impoverished farmers have planted every inch of ground. Desperate to feed their families, they could not afford to let their land lie fallow or to fertilize it. Over time, their depleted plots yielded less food and the farmers fell deeper into poverty.

Malawi’s leaders have long favored fertilizer subsidies, but they reluctantly acceded to donor prescriptions, often shaped by foreign-aid fashions in Washington, that featured a faith in private markets and an antipathy to government intervention.

In the 1980s and again in the 1990s, the World Bank pushed Malawi to eliminate fertilizer subsidies entirely. Its theory both times was that Malawi’s farmers should shift to growing cash crops for export and use the foreign exchange earnings to import food, according to Jane Harrigan, an economist at the University of London.

In a withering evaluation of the World Bank’s record on African agriculture, the bank’s own internal watchdog concluded in October not only that the removal of subsidies had led to exorbitant fertilizer prices in African countries, but that the bank itself had often failed to recognize that improving Africa’s declining soil quality was essential to lifting food production.

“The donors took away the role of the government and the disasters mounted,” said Jeffrey Sachs, a Columbia University economist who lobbied Britain and the World Bank on behalf of Malawi’s fertilizer program and who has championed the idea that wealthy countries should invest in fertilizer and seed for Africa’s farmers.

Here in Malawi, deep fertilizer subsidies and lesser ones for seed, abetted by good rains, helped farmers produce record-breaking corn harvests in 2006 and 2007, according to government crop estimates. Corn production leapt to 2.7 billion metric tons in 2006 and 3.4 billion in 2007 from 1.2 billion in 2005, the government reported.

“The rest of the world is fed because of the use of good seed and inorganic fertilizer, full stop,” said Stephen Carr, who has lived in Malawi since 1989, when he retired as the World Bank’s principal agriculturalist in sub-Saharan Africa. “This technology has not been used in most of Africa. The only way you can help farmers gain access to it is to give it away free or subsidize it heavily.”

“The government has taken the bull by the horns and done what farmers wanted,” he said. Some economists have questioned whether Malawi’s 2007 bumper harvest should be credited to good rains or subsidies, but an independent evaluation, financed by the United States and Britain, found that the subsidy program accounted for a large share of this year’s increase in corn production.

The harvest also helped the poor by lowering food prices and increasing wages for farm workers. Researchers at Imperial College London and Michigan State University concluded in their preliminary report that a well-run subsidy program in a sensibly managed economy “has the potential to drive growth forward out of the poverty trap in which many Malawians and the Malawian economy are currently caught.”

Farmers interviewed recently in Malawi’s southern and central regions said fertilizer had greatly improved their ability to fill their bellies with nsima, the thick, cornmeal porridge that is Malawi’s staff of life.

In the hamlet of Mthungu, Enelesi Chakhaza, an elderly widow whose husband died of hunger five years ago, boasted that she got two ox-cart-loads of corn this year from her small plot instead of half a cart.

Last year, roughly half the country’s farming families received coupons that entitled them to buy two 110-pound bags of fertilizer, enough to nourish an acre of land, for around $15 — about a third the market price. The government also gave them coupons for enough seed to plant less than half an acre.

Malawians are still haunted by the hungry season of 2001-02. That season, an already shrunken program to give poor farmers enough fertilizer and seed to plant a meager quarter acre of land had been reduced again. Regional flooding further lowered the harvest. Corn prices surged. And under the government then in power, the country’s entire grain reserve was sold as a result of mismanagement and corruption.

Mrs. Chakhaza watched her husband starve to death that season. His strength ebbed away as they tried to subsist on pumpkin leaves. He was one of many who succumbed that year, said K. B. Kakunga, the local Agriculture Ministry official. He recalled mothers and children begging for food at his door.

“I had a little something, but I could not afford to help each and every one,” he said. “It was very pathetic, very pathetic indeed.”

But Mr. Kakunga brightened as he talked about the impact of the subsidies, which he said had more than doubled corn production in his jurisdiction since 2005.

“It’s quite marvelous!” he exclaimed.

Malawi’s determination to heavily subsidize fertilizer and the payoff in increased production are beginning to change the attitudes of donors, say economists who have studied Malawi’s experience.

The Department for International Development in Britain contributed $8 million to the subsidy program last year. Bernabé Sánchez, an economist with the agency in Malawi, estimated the extra corn produced because of the $74 million subsidy was worth $120 million to $140 million.

“It was really a good economic investment,” he said.

The United States, which has shipped $147 million worth of American food to Malawi as emergency relief since 2002, but only $53 million to help Malawi grow its own food, has not provided any financial support for the subsidy program, except for helping pay for the evaluation of it. Over the years, the United States Agency for International Development has focused on promoting the role of the private sector in delivering fertilizer and seed, and saw subsidies as undermining that effort.

But Alan Eastham, the American ambassador to Malawi, said in a recent interview that the subsidy program had worked “pretty well,” though it displaced some commercial fertilizer sales.

“The plain fact is that Malawi got lucky last year,” he said. “They got fertilizer out while it was needed. The lucky part was that they got the rains.”

And the World Bank now sometimes supports the temporary use of subsidies aimed at the poor and carried out in a way that fosters private markets.

Here in Malawi, bank officials say they generally support Malawi’s policy, though they criticize the government for not having a strategy to eventually end the subsidies, question whether its 2007 corn production estimates are inflated and say there is still a lot of room for improvement in how the subsidy is carried out.

“The issue is, let’s do a better job of it,” said David Rohrbach, a senior agricultural economist at the bank.

Though the donors are sometimes ambivalent, Malawi’s farmers have embraced the subsidies. And the government moved this year to give its people a more direct hand in their distribution.

Villagers in Chembe gathered one recent morning under the spreading arms of a kachere tree to decide who most needed fertilizer coupons as the planting season loomed. They had only enough for 19 of the village’s 53 families.

“Ladies and gentlemen, should we start with the elderly or the orphans?” asked Samuel Dama, a representative of the Chembe clan.

Men led the assembly, but women sitting on the ground at their feet called out almost all the names of the neediest, gesturing to families rearing children orphaned by AIDS or caring for toothless elders.

There were more poor families than there were coupons, so grumbling began among those who knew they would have to watch over the coming year as their neighbors’ fertilized corn fields turned deep green.

Sensing the rising resentment, the village chief, Zaudeni Mapila, rose. Barefoot and dressed in dusty jeans and a royal blue jacket, he acted out a silly pantomime of husbands stuffing their pants with corn to sell on the sly for money to get drunk at the beer hall. The women howled with laughter. The tension fled.

He closed with a reminder he hoped would dampen any jealousy.

“I don’t want anyone to complain,” he said. “It’s not me who chose. It’s you.”

The women sang back to him in a chorus of acknowledgment, then dispersed to their homes and fields.
Michaelda is online now Report Post Edit/Delete Message

Michaelda

December 3rd, 2007, 12:43 AM

AP
Ghana reflects progress in Africa

By CHRIS TOMLINSON, Associated Press Writer 54 minutes ago

ACCRA, Ghana - Coby Asmah is a success in a part of the world that is hardly ever equated with success.

The design and printing business he launched from his dining room table 14 years ago now employs 54 people. He drives a new gold SUV, dresses as sharply as any Madison Avenue executive and vacations in the United States. And despite winning U.S. citizenship, he has chosen to stay in Ghana.

Asmah belongs to an Africa all but unknown outside the continent — one of growth and business opportunity, with a tiny but rapidly spreading middle class.

Fifty years after Ghana became the first African country to gain independence, Africa's economies are expanding by 5.4 percent a year — compared to a world average of 4.2 percent — and are projected to hit almost 7 percent next year. Investments are up. Banking firm Merrill Lynch & Co. concluded that Africa now offers investors as much potential as Russia.

These signs of economic hope come as the world is increasingly aware of its broader stake in Africa. Rich countries fear any disruption in the flow of resources out of Africa, which now rivals the Middle East in the quantity of oil it sends to the United States. Terrorism has revealed the danger of failed states, and hundreds of thousands of African immigrants flee to America, Europe and the Middle East every year.

The picture across the 48 countries of sub-Saharan Africa is still very much a patchwork. But a yearlong exploration by The Associated Press shows that progress — while fragile — is finding a foothold, in spheres ranging from democracy to education. Perhaps most strikingly, after few results from five decades of advice and $568 billion in aid, today's developments in business, education, government and other areas are being led by Africans themselves.

There is a new sense among many Africans that it is up to them to rethink their continent and challenge the West to do the same. The change shows up all over — in newspaper editorials, in a regional partnership for African leadership, in the revamping of the African Union, in a newly aggressive stance for fairer terms in agricultural trade, and in the confidence of entrepreneurs like Asmah.

"The change of thinking has been coming from Africa," says economist George Ayittey, a Ghanaian teaching at American University in Washington, D.C. "Civil society in Africa is becoming more and more empowered and emboldened, and they are driving the agenda."

___

Signs of prosperity are everywhere in this country of about 23 million people on the west coast of Africa. New roads are choked with cars, construction cranes dominate the skyline and shops brim with televisions, air conditioners and luxury goods. Real estate prices in the capital, Accra, rival those of an average American city, with a four-bedroom home in a nice area selling for over $500,000.

Asmah's office and printing press are located in a middle-class neighborhood of older homes converted for business.

Asmah, 42, was an artist in the Ministry of Education in 1993 when he first started selling graphic designs to friends. Soon he was ready to give up the secure government job, which for most of Africa's history was the hallmark of success.

He launched Type Company with money borrowed from family and friends. Business grew rapidly — almost too rapidly. Type Company had to outsource printing to others in Ghana, and the quality fell.

So Asmah bought a state-of-the-art, custom-made printing press and other equipment from Germany for more than $1 million. He diversified into security printing for banks, colorful packaging for local products and annual reports for dozens of businesses, which, like his, are homegrown and growing.

"Once you have a solution to someone else's problem, you have a business," says Asmah, whose polished appearance and calm demeanor project the image he wants for his high-end designs, despite a cluttered office full of computers and printers. "There is a lot of opportunity, because here, there is not a lot that is done right." Things not done right trip up businesses like his. It took five years to persuade a bank to help him lease $10,000 worth of equipment. Financing in Africa is hard to get, with high interest rates and stringent requirements. Government tariffs on paper and ink also drive up his costs, and he can't compete with preprinted imports because they are not taxed.

But Asmah says the odds of success in Africa are greater than anywhere else, including America.

Asmah is part of what economist Ayittey calls Africa's "cheetah generation" — young entrepreneurs who are fast, smart, adaptable and ready to tackle Africa's problems. Eventually — and it will take time — he predicts the cheetahs could overtake the bureaucrats and dictators who blame Africa's problems on colonialism and don't address them.

It is already happening in Ghana. Democracy is strong, and the economy is growing by 6 percent a year. The World Bank recently praised Ghana as one of the leading business reformers in the world. Ghana's debt is down by more than two-thirds, and inflation is under control.

Economic stability in turn draws investment. Foreign investment in Africa rose to a record $39 billion in 2006 from $31 billion just a year earlier, only partly because of oil revenues.

"It's a young economy and anyone who looks into that will see that Ghana is a safe terrain to be in," notes Asmah, who says his business exceeds $1 million a year in revenue and brings profits of 30 percent. "Returns on investment here are 20 percent higher than anywhere else."

___

Accra's first suburbs sprawl northward from the Atlantic Ocean, low-slung bungalows that stretch out on generous plots surrounded by high brick walls. Wide roads are laid out in a perfect grid. The neighborhood is in various stages of construction, but the shade trees around the more established homes hint at its future charm.

Mavis Boakye, 30, shares one of the new four-bedroom, cream-colored bungalows with her banker husband, her four-month-old son and her mother. Every workday morning, she climbs into a taxi for the 45-minute drive into her office in town.

Boakye is a department head at Type Company who supervises the digital graphic design team. The daughter of a poor civil servant laborer, she spent two years of mandatory government service producing drawings for Ministry of Health brochures. Afterward, she went straight to work because she could not afford university.

Now Type Company is paying $800 a month for her to go to university part-time, and she lives a solidly middle-class life. She and her husband watch Christian satellite television on a Sony Corp. home theater system. They shop at a new mall. They eat pizza at a South African fast food chain, and belong to a middle class sometimes nicknamed "black diamonds."

"I am making three times or four times what my father was making, and sometimes he looks at me and marvels and says, `I am happy you are doing well in life,'" Boayke says.

Boayke is an example of how wealth from companies is slowly trickling down through communities, in a part of the world where each worker supports six people on average.

In 2000, Africa's middle class of 12.7 million people made up just 2 percent of the population, according to the World Bank. By 2030, it is expected to more than triple to 43 million, or 4 percent of the population.

However, Africa remains overwhelmingly poor. Ten percent of the world's poor people now live in Africa, and that is expected to rise to 13 percent in the next 25 years.

The best hope for the poor could be private enterprise, which creates 90 percent of the jobs in developing countries. But business is dragged down by a lack of education, unreliable power, bad roads, disease and a long list of other problems.

Choking bureaucracy means that it takes 95 days to start a business in Tanzania, 138 days in Ghana and 177 days in Chad. In Australia, it takes one day.

Recently, African countries have begun to cut business costs and red tape, according to the World Bank. Ghana lowered corporate taxes and slashed paperwork at customs. Tanzania has reduced the cost of starting a business by 40 percent. Kenya is simplifying its business licenses.

Boayke has been bitten by the entrepreneurial bug herself.

"The plan is that in three years, I will start something on my own," she says. "My husband wants me to start now because he thinks I will make more money, but I think I need to make more contacts before I start."

___

Near the port in Accra, the Ghanaian government has set up duty-free industrial zones to spur international trade. Hand-painted logos adorn the walls of the warehouse-style buildings, and their large wooden doors open off the loading docks. At lunchtime, women sell hot meals of beans and rice to workers in the shade of the eaves.

This is where Nora Bannerman's factory makes dresses and clothes sold in American department stores and lab coats worn by pharmacists at Walgreens and CVS in the United States.

Bannerman, who has made clothes since she was nine years old, is an icon in Ghana. She wears designer sunglasses as she drives through town in her cobalt-blue Mercedes Benz. She will not reveal her age except to say she was born in the Gold Coast, Ghana's name before independence. Her fashion design school has trained more than 100 students, and many have since set up their own businesses.

Bannerman's story shows how globalization both helps and hurts Africans in their desire to move ahead.

Easier trade gives Africans access to millions of people with money to spend, and Bannerman's designs sell in the United States, France, Germany and Switzerland. But it also brings competition, especially from China, which plays a growing role in Africa.

China imports raw materials from all over Africa, such as Ghana's timber and minerals. In 2005 Ghana's trade with China increased 35 percent to $816 million, making China its top trading partner. And China is investing — it loaned Ghana $30 million to build a national fiber optic network.

Yet China also floods the world with goods so cheap that Africans can't compete. Bannerman says Chinese companies mass-produce, without permission, her designs and traditional African fabrics at prices below her cost of production.

"China has been going all over Africa, picking out the good ideas," says Bannerman, sitting in her factory office. "While we were still doing high-value, hand-woven kente cloth, China came out with kente prints that are selling well to the United States."

Bannerman says her American buyers constantly pressure her to cut prices. But she won't and can't cut wages — the U.S. African Growth and Opportunity Act requires African exporters to meet human rights standards that do not apply to China, because of international trade rules.

Bannerman also has to pay high taxes on all imported cloth and thread that further raise her costs to export. And she competes within Africa against second-hand clothes from international donors that are not taxed.

She says all she and other African business people need to succeed is a fair playing field. "We don't want a situation where we are asking for aid all of the time," she says.

Africa has a long history of international trade. The 1st century gold coins of the royal families of Axum, in present-day Ethiopia, have been found as far away as India. Yet the continent today accounts for only 4 percent of global trade.

On the roads in almost every town, small-scale entrepreneurs balance on their heads everything from vegetables and ice cream to DVD players and television aerials as they sell to drivers stuck in traffic. But most of those goods come from overseas — $273 million left the continent in 2005.

Capital inflow to some African countries, including Ghana, is now rising. And so is hope.

This year's study by the Pew Global Attitudes Project found that despite crushing poverty, majorities in nine out of 10 African countries surveyed believe their lives will be better five years from now. Surveys in 12 African countries from 1999 to 2006 by the Afrobarometer Network, an independent research group, also found growing optimism.

Asmah says Africans can and will work hard to succeed, and he is trying to spread the wealth in his country.

He supports a business plan competition that gives advice to 60 promising entrepreneurs and helps them build contacts, in partnership with business promoter TechnoServe and Google.org, the Internet company's philanthropic arm. The top 20 winners get a jump start in their new enterprise.

The name of the competition: "Believe, Begin, Become."

___

On the Web:

http://www.afrobarometer.org/papers/AfropaperNo60-trends.pdf

TEDGlobal talks: http://www.ted.com/talks/view/id/152

http://www.ted.com/talks/view/id/151

http://www.ted.com/talks/view/id/154

http://www.ted.com/index.php/talks/view/id/159

Bond James Bond

December 3rd, 2007, 04:10 AM

Africa on the front cover of Business Week:
http://www.businessweek.com/magazine/content/07_50/b4062046700574.htm?chan=magazine+channel_top+stories

stoicman31

December 3rd, 2007, 04:45 AM

JOHANNESBURG (AFP) - Oil-rich countries in Africa must resist the temptation to splurge their revenue from black gold if they want to avoid a hangover when supplies run dry, experts said at a conference in South Africa.

ADVERTISEMENT

Oil has all too often proved a curse to Africa, greasing the palms of foreign firms and corrupt leaders, and while many countries are now improving the way they manage the resource, they also need to diversify their economies before oil runs out.
"Oil wealth is a mild toxin, much like alcohol. If you don't have a strong constitution it tends to make you unstable," said Diarmid O'Sullivan of London-based Global Witness' oil campaign at a two-day conference held by the South African Institute of International Affairs (SAIIA).

O'Sullivan said countries such as Angola, now the fastest growing economy in Africa off the back of its oil supplies, had proven reserves for less than 20 years.

"If that gets wasted through corruption and poor governance, that opportunity is not going to come around again. When the oil is gone, it's gone," he said.

Analysts at the conference said that the living conditions in many resource-rich countries were often worse than those who were not blessed with mineral wealth.

According to Alex Vines, head of the Africa programme at the Chatham House, Royal Institute for International Affairs in London, Angola is the world's leading importer of luxury vehicles such as Hummers even though some 70 percent of the population earn less than a dollar a day.

The southern African country is nearing a production of two million barrels a day, and is now one of the biggest suppliers to China, which is pumping huge investment into the country and helping to rebuild infrastructure shattered by a 27-year civil war.

However despite glaring inequalities, a previously non-existent middle class is slowly beginning to emerge between the wealthy elite and poverty-stricken.

"Angola's budget is estimated to be 31 billion dollars, yet its under five mortality rate is the second worst in the world today," said Vines.
In Equatorial Guinea, where the United Nations estimates 80 percent of national income is in the hands of five percent of the population, spending on social services like health and education have declined despite increasing oil revenues, said Vines.

Africa's largest oil producer Nigeria, which has made significant strides in improving transparency and cracking down on corruption, saw poverty increase from 30 percent of the population in 1970 to 70 percent in 2000, according to Vines.

Nigeria has opted to join the Extractive Industries Transparency Initiative, a coalition hoping to set a global standard for companies to publish what they pay and for governments to disclose what they receive.

With the massive commodity boom, good governance and well-managed natural resources could have a major benefit for Africa, but Vines warned countries need to diversify their economies as oil on its own will not raise them from poverty.

"Africa isn't Saudi Arabia. The oil in sub-Saharan Africa is finite."

The conference heard how very few countries rich in other minerals such as timber and fisheries were well managed, although South Africa and diamond-rich Botswana were identified as exceptions to the rule.

SAIIA chairman Fred Phaswana said signs of democratic change in the Democratic Republic of Congo, Sierra Leone and Liberia proved "reason for cautious optimism."

Calling for the international community to think twice before making investments that strengthen non-elected or despotic regimes, Phaswana also said the intensifying competition for African resources needed close scrutiny.

"The former colonial powers are being increasingly challenged in Africa by the emerging economic giants of China, India and Brazil. What is not yet clear is the impact this ... will have on questions of governance, sustainability and conflict."

Matthias Offodile

December 3rd, 2007, 01:38 PM

Stoicman, As for the oil resserves I doubt it because vast patches of (West) African territority still remains massively underexplored as compared to the Middle East for example....and Africa is how many times bigger than the surface of the Middle East? and its soil complexion is not so different to that of the Middle East (especially Sahelian countries which were all covered by greenery millions of years ago, ...a factor that lesd to the genesis of oil that we know today). I am not telling fairy tales!! Africa is an immensely rich continent and oil and mineral exploration is still "almost" untouched.

I read various reports by oil analyts that said that just for the case of Nigeria, it still looks like Louisiana in the 50´s, so many areas are underexplored. Who every thought that Ghana has oil or Sao Tomé, most likely Côte d´ivoire has big oil fields (read some conflicting reports from the country)

As for Angola its oil drillings have just started to climb in the past years and some oil analysts put the resserves at 40 billion (if not more oil is found which is highly likely!!!), other sources say that oil resserves in Angola are somewhere around 15 billion barrels of oil. Aynway, Nigeria and Angola are huge countries and there is still a lot of oil gurrgling beneath its soil. Who knows if there is oil in Namibia which has almost the same soil like the Gulf Arab countries.

Don´t believe too much thepsychological "oil scarcity drama" that has been artificially created . Producers, middle men, industrialized oil-importing states like Germany in forms of new taxes (I am talking here of billion of additional Euros) and explorers are all benefitting tremedously from the current price hike and into the bargain the web of structures that has been established is highly intransparent for an outsider but please display a more critical mind....oil will be finished one day but this is still a long way

So many companies are buying new oil fields allover the planet and they haven´t even started exploration. Why? Becasue they seem to be interested in high prices and they have found an easy scapegoat: China´s and India´s rise to power!!!

Matthias Offodile

December 3rd, 2007, 01:43 PM

They found a mega oil find in Brazil a couple of weeks back that contains 8 billion barrels of oil (Norway´s entire oil resserves are put at 13-15 billion) just to give you a comparison.

fairness2007

December 3rd, 2007, 10:34 PM

http://news.bbc.co.uk/2/hi/business/7119076.stm

Geldof unveils African trade plan.

This tells how Africa can be treated in the scheme of things.

Bond James Bond

December 4th, 2007, 02:58 AM

Lest anyone think Angola is going to run out of oil in 20 years, keep in mind that they're still making new discoveries there.

http://money.cnn.com/news/newsfeeds/articles/prnewswire/CLM06603122007-1.htm

Marathon Announces New Deepwater Discovery in Angola
PR Newswire
Alho Well Marks 11th Discovery on Block 32
December 03, 2007: 08:53 AM EST

HOUSTON, Dec. 3 /PRNewswire-FirstCall/ -- Marathon Oil Corporation announced today that its subsidiary, Marathon International Petroleum Angola Block 32 Limited, has participated in a new deepwater discovery on Block 32 offshore Angola. Alho is the 11th discovery on Block 32 and the 26th overall discovery in Marathon's deepwater exploration program on Blocks 31 and 32 which began in 2001.

The Alho-1 discovery well is located approximately 155 kilometers (100 miles) off the Angolan coast in 1,607 meters (5,273 feet) of water. The well was drilled to a total depth of 4,981 meters (16,343 feet) and encountered oil bearing reservoirs in the Oligocene section. During drill stem testing the well flowed at a rate of 5,400 barrels per day of 26 degree API oil. Alho is located 9 kilometers (6 miles) northwest of the previously announced Cominhos discovery.

The concessionaire of Block 32 is Sonangol, Angola's state-owned oil company. Marathon holds a 30 percent interest in Block 32, along with the operator TOTAL Exploration and Production Angola (Block 32 Ltd) with 30 percent, Sonangol P&P with 20 percent, Esso Exploration and Production Angola (Block 32) with 15 percent and Petrogal with 5 percent.

[...]

Matthias Offodile

December 5th, 2007, 11:19 AM

Lest anyone think Angola is going to run out of oil in 20 years, keep in mind that they're still making new discoveries there.

The rate of new discoveries - big ones - is just staggering and gets more and more and not less and less, the country is huge ....so many new fields are stilll coming on stream in the next years and into the bargain new blocks are constantly being offered.

Angola is certainly not running out of oil, one day it will like oil nations, of course, but not in the next years...they also said the same for Brazil and as I said earlier, baaam, a new mega oil field was discovered there containing 8 Billion barrels of crude (total resserves of Norway are close to 13 Billion). Do not forget that oil analysts also work with the psychological "fear/scarcity factor", the oil business is a highly intransparent, contradictory and interwoven web of relations consisting of states, multi-nationals, middlemen, organisations, inluential businessmen, state companies from oil states that constantly grow in might....highly impenetrable especially for observers from outside.:) So be critical when you read anything about oil.

Matthias Offodile

December 5th, 2007, 12:08 PM

German Business Delegations consisting of 40 high level businesspeople currently visists Gabon and they are satisfied at what they see in Gabon, ready to invest:cheers:

Gabon: Gabon/Allemagne: Les hommes d’Affaires Allemands satisfaits de leur séjour au Gabon

Libreville, 4 décembre (GABONEWS) - Conduite par le ministre fédéral allemand de l’Economie, Michaël Glos, la délégation de plus de 40 d’hommes d’affaires de ce pays de l’Union européenne a eu de fructueuses échanges mardi, avec leurs homologues gabonais et des responsables de la Chambre de commerce, d’agriculture, d’industrie et des Mines du Gabon ainsi que de l’Agence pour la promotion des Investissement Privés (APIP), a constaté GABONEWS.

Dès leur arrivée à Libreville, le chef de la délégation allemande a été l’hôte du président de la République Omar Bongo Ondimba, avec qui il a échangé sur les perspectives de coopération entre les deux pays.

Avant, le ministre fédéral allemand a tenu à rendre un hommage mérité au président gabonais pour avoir accepté le stationnement à Libreville, des soldats de la force de défense Européenne en partance pour la République Démocratique du Congo (RDC) en vue de la sécurisation des élections qui se sont déroulées en 2006.

En outre, les hommes d’affaires allemands venus prospecter des possibilités d’affaires avec leurs homologues gabonais ont, à l’unisson, reconnu la flexibilité du système d’investissement gabonais, gage d’une assurance pour les affaires.

Au cours de leurs échanges, les chefs d’entreprises allemands ont suivi avec un vif intérêt les explications du président de la Chambre de Commerce du Gabon, Joachin Boussamba Mapaga, qui a exposé sur l’environnement propice des affaires au Gabon, caractérisé par un climat socio politique apaisé, la stabilité des institutions et l’environnement infrastructurel adéquat.

Le directeur général adjoint des Contributions directes et indirectes, Joël Ogouma, a entretenu les hommes d’affaires allemands sur la facilité fiscale qui régie l’environnement des affaires au Gabon et offre des opportunités aux investisseurs pour le rapatriement de leurs capitaux.

Au terme de tous ces exposés, Les hommes d’affaires allemands ont manifesté leur intérêt d’investir au Gabon et ont promis de revenir concrétiser leurs projets qui vont renforcer la coopération bilatérale entre les deux pays.

On rappelle que la délégation allemande en provenance de l’Angola regagne Berlin en fin de soirée.

Matthias Offodile

December 5th, 2007, 12:57 PM

A steep rise in brand new car sales across Gabon (data is from 2006)...thousands of new cars in just one year, figures include only new cars not second hand cars!! The article talks about the country´s sound economy, rising urban middle classes, a well performing banking and credit sector and an advertsing sector that is increasingly targeting consumer markets, 30% increase in new car sales expected for this year alone

Forte hausse des ventes d’automobiles au Gabon

GABON - 08 novembre 2007 - AFP
A Libreville, sur le boulevard du Bord-de-Mer, de plus en plus embouteillé, se frôlent et se croisent nombre de véhicules de luxe : imposants 4x4 japonais aux vitres teintées, berlines françaises, Mercedes flambant neuves. Mais c’est l’ensemble du marché automobile qui se porte bien au Gabon, dont le taux d’équipement - 81 véhicules pour 1 000 habitants - est sept fois supérieur à la moyenne des pays de la région. Avec 6 500 nouveaux véhicules vendus, l’année 2006 a connu une hausse de 22 % par rapport à 2005:cheers:, selon l’Union des représentants de l’automobile et de l’industrie (Urai). Le chiffre d’affaires de l’activité a progressé de 27 % en 2006, à 145 milliards de F CFA (220 millions d’euros), et une hausse de 30 % est attendue cette année. À ces chiffres officiels il faut ajouter un nombre croissant de « faux véhicules d’occasion ». Immatriculés en Europe, ils n’ont jamais servi et sont importés de manière informelle pour être revendus au Gabon. Il s’agit notamment de produits haut de gamme, comme de luxueuses Porsche ou d’impressionnants Hummer, le 4x4 des stars d’Hollywood. Sur le marché régulier, ce sont les véhicules tout-terrain « classiques » qui dominent, représentant plus de 60 % du marché.

Le marché de l’automobile s’est lentement redressé jusqu’à une forte progression en 2005. L’envolée du prix du baril bénéficiant à plusieurs secteurs de l’économie de ce petit pays producteur d’or noir, comptant à peine 1,3 million d’habitants.

Le secteur privé se renforce aussi, avec l’apparition de nouvelles entreprises liées au pétrole ou à l´immobilier, et fait naître une nouvelle classe moyenne. « Au cours des deux dernières années, confie un professionnel de l’automobile, de plus en plus de cadres moyens issus du privé ont obtenu des crédits auprès des banques pour s’acheter un véhicule. Le secteur bancaire fonctionne bien, les organismes disposent d’une trésorerie suffisante pour prêter de l’argent. :cheers:» Mais les pétrodollars circulent aussi : il n’est pas rare, d’après plusieurs vendeurs de véhicules, de voir un client déposer, en espèces, 20 millions de F CFA pour acheter une voiture.

La concurrence pousse les prix à la baisse

L’arrivée de nouveaux opérateurs n’est pas étrangère non plus à la vitalité du secteur automobile gabonais. Sho Gabon, représentant la marque Hyundai, et Sivva, importateur Ford, ont connu d’importantes progressions. Cette nouvelle concurrence pousse la profession à organiser des opérations promotionnelles plus agressives qu’auparavant. Le prix des pick-up traditionnels Toyota ou Mitsubishi a ainsi diminué de 20 % en trois ans. « Il y a quelques années, on ne voyait pratiquement pas de publicité pour les véhicules neufs dans les rues de Libreville », témoigne Catherine Dagba, responsable de l’agence de communication AG Partners, présente dans huit pays africains. Les entreprises du secteur de l’automobile confient désormais des budgets très importants aux agences comme la sienne. Et les panneaux d’affichage continuent de fleurir à travers la ville.

PS: 81 per 1000 citizen has a car in Gabon. (it is said that it is seven times higher than its regional neigbours). In Tunisia, the number is 94 per 1000, got this figure from the article posted by "Moroccanboy"....so there is still a lot of room upwards but it is not too bad neither

Mosi-oa-Tunya

December 5th, 2007, 08:17 PM

fairness2007

December 5th, 2007, 11:13 PM

That is good news for Gabon which has seen flagging growth for much of this decade but the IMF now shows the country now recording over 5% growth in 2007. The car ownership level is close to that of South Africa where there are about 150 cars and trucks per 1,000 due to the boom in that country's motor sector since 2004 where 700,000 motor vehicles were sold last year. If I'm correct the vehicle ownership level in South Africa is exceeded only by Libya where almost 200 out of 1,000 own a car or truck. Don't know the numbers for Equatorial Guinea but it would be interesting to know what the car ownership level in Angola stands at.

Wait a minute. Are you guys using this as a yark stick to measure an economy or what?

stoicman31

December 6th, 2007, 12:12 AM

Wait a minute. Are you guys using this as a yark stick to measure an economy or what?

I was asking myself the same question. I rather see capital investment.:lol:

Matthias Offodile

December 7th, 2007, 12:04 PM

Wait a minute. Are you guys using this as a yark stick to measure an economy or what?

fairness2007Many economists do it, a steep rise of NEW car sales is certainly not a sign of a country going downhill but point to the existence of (rising) urban middle classes or why would you think that so many international car companies are setting up shop in China and Russia and not in Albania or Turkmenistan?!

Don't know the numbers for Equatorial Guinea but it would be interesting to know what the car ownership level in Angola stands at.

Mosi, I really don´t know but I will post figures when I happen to find any. But forget about EqG, I don´t think that figures can be found anywhere on the net, the country is virtually sealed off.
As for Angola, maybe an Angolan can answer the question...but judging from pics, many new cars are conquering the streets of Luanda and some province cities, at least.

fairness2007

December 7th, 2007, 09:01 PM

fairness2007Many economists do it, a steep rise of NEW car sales is certainly not a sign of a country going downhill but point to the existence of (rising) urban middle classes or why would you think that so many international car companies are setting up shop in China and Russia and not in Albania or Turkmenistan?!

Mosi, I really don´t know but I will post figures when I happen to find any. But forget about EqG, I don´t think that figures can be found anywhere on the net, the country is virtually sealed off.
As for Angola, maybe an Angolan can answer the question...but judging from pics, many new cars are conquering the streets of Luanda and some province cities, at least.

I beleive some countries government subsidized the price so that the populace can afford them.

Well, if we should consider that on the economy it seems like an increase cos new vehicle is luxury but not the economy performance per se.

Matthias Offodile

December 9th, 2007, 04:32 PM

I beleive some countries government subsidized the price so that the populace can afford them.

No, the government is not intefering in car sales, it is not socialism, it has something to do with a solid banking and credit system and good marketing incentives by car salers.

Well, if we should consider that on the economy it seems like an increase cos new vehicle is luxury but not the economy performance per se.

You need to read the "Principles of Economy" by Mankiw!

Nixoderm

December 12th, 2007, 12:12 AM

What I noticed is that africa's economy isn't doing better. It's only a few select nations. Who agrees??

kulani

December 12th, 2007, 12:55 AM

What I noticed is that africa's economy isn't doing better. It's only a few select nations. Who agrees??

I disagree, i think there are many pockets of success in many African economies. There is no better time in Africa's economic history than now. We are enjoying the most sustained economic growth and political stability barring the troubled hot spots of Zimbabwe, Somalia and Sudan. The key African economies like Nigeria, Ghana, Kenya, Tanzania, Angola, South Africa, Egypt, Morocco, Algeria are all doing very well. Even DRC is trying to get going, while Ivory Coast is now moving forward again!!!

So we are doing very well, we need more growth and it has to be sustainable and must eradicate poverty. So we still have a lot to do, but there is reason to have hope.

Nixoderm

December 12th, 2007, 01:19 AM

You are to blame

December 12th, 2007, 10:16 AM

How about Mali, Niger, C.A.R, etc. I havent heard anything about the. In my opinion, the high economic growth is fuelled only by the countries you mentioned however Africa has over 50 countries so what's up with the rest??

Pretty much every country in Africa is experience medium to high grwoth with a few exceptions. For the countries you listed here are their estimated growth rates for 2007 and 2008.

Percent Growth rates for those countrues from the IMF (07 & 08)

Mali 5.2 & 4.8
Niger 5.6 & 5.4
C.A.R. 4.0 & 4.3

Mosi-oa-Tunya

December 13th, 2007, 01:27 AM

Pretty much every country in Africa is experience medium to high grwoth with a few exceptions. For the countries you listed here are their estimated growth rates for 2007 and 2008.

Percent Growth rates for those countrues from the IMF (07 & 08)

Mali 5.2 & 4.8
Niger 5.6 & 5.4
C.A.R. 4.0 & 4.3

Zimbabwe is the stark exception as the only African country with negative GDP growth while the rest of the continent is on average above 5%.

Nixoderm

December 13th, 2007, 01:30 AM

What about Somalia, Sudan and Ivory Coast?

Bond James Bond

December 13th, 2007, 02:19 AM

This article is about Brazil, but it contains information of relevance to African oil, which I've highlighted. Recall that Brazil used to fit into the western coast of Africa hundreds of millions of years ago, and you should understand the link between the two.

http://ipsnews.net/news.asp?idnews=40086

BRAZIL: Awash With Oil - Good for Revenues, Bad for Climate Change?
By Mario Osava

RIO DE JANEIRO, Nov 16 (IPS) - The discovery of a huge oilfield 250 kilometres off the southeastern coast of Brazil will not have an immediate effect on world crude markets, but it opens up future prospects of a new oil frontier in the South Atlantic which may deter the pursuit of clean energy sources, experts say.

The Brazilian government and the state oil company Petrobras announced on Nov. 8 that between five and eight billion barrels of oil and gas had been found in a block in the off-shore Tupí field, in the Santos geological basin. These are in addition to proven national reserves of 13.8 billion barrels.

It is the largest reserve that has been located in the country, and the biggest deep sea oilfield in the world.

The most promising feature of the discovery is that it is part of a complex formed by the Santos, Campos and Espíritu Santo sea-floor basins on the continental margin of Brazil. Their combined area is 800 kilometres by 200 kilometres, and Brazil is already extracting most of its oil there.

It was known that there were much greater quantities of oil, beneath a salt layer.

"That whole area contains reserves of at least 50 billion barrels, as a conservative estimate," said Marcio Mello, for 26 years a researcher at Petrobras’ technology centre, who is now a partner in the consulting firm HRT Petroleum and head of the Brazilian Association of Petroleum Geologists (ABGP).

The government quotes a figure of 70 billion barrels in the three basins, and some people venture an estimate of over 100 billion barrels. If proven, Brazil’s reserves would approximately match those of high volume exporters like Kuwait and Venezuela, although they could not compare with Saudi Arabia’s.

Across the ocean, along the southwest African coasts of Angola, Congo and Namibia, there are similar amounts of oil. The Latin American and African coasts share a common geological formation which was split apart by the South Atlantic ocean, which separated the continents in prehistoric times, Mello, who has been studying the subject for 10 years, told IPS.

There is a correspondence between the oil reserves in the Brazilian Campos basin and those in Angola. Both contain about nine billion barrels of oil, and a similar pairing appears likely between Namibia and the Santos basin, the expert said.

But in Africa the salt layer, beneath which these additional deposits lie, has not yet been perforated. Petrobras drilled its first well in Tupí last year, and found signs of an oilfield. A still imprecise estimation of its size was arrived at after the second test well was drilled in July.

Petrobras struck oil 6,000 metres below the surface, after descending through 2,000 metres of water and perforating a salt layer as well as rocks and sand. This difficult exploratory drilling indicates that extraction will be expensive, even before considering the cost of transport from the high seas.

It was the high costs that delayed exploration, in spite of the longheld opinion among geologists that large reserves lay under the salt layer.

The Campos basin, near Rio de Janeiro, is currently the most productive oilfield because a great deal of crude has seeped through the salt layer, which is more permeable there than in the other basins, geologist Giuseppe Bacóccoli, who worked for Petrobras as an exploration scientist for 32 years, until 1997, told IPS.

Therefore there must be less oil left beneath the salt layer in the Campos basin, as opposed to the Santos and Espíritu Santo basins, said Bacóccoli who is now a researcher in the postgraduate engineering programme at the Federal University of Rio de Janeiro.

"The three basins are sisters, but have different characteristics," he said.

Oil and gas are trapped by the rock formation under the salt layer, the Lagoa Feia formation, which is shared with Africa, Mello said.

Many people did not believe oil reserves could be extracted from under so many kilometres of sedimentary rock, because the temperature would be above 200 degrees Celsius "and the heat would destroy everything, oil and drilling gear alike. But salt is an excellent conductor and dissipates the heat, reducing temperatures to less than 100 degrees," he said.

Confirmation of the Tupí reserves may also stimulate investment in the African basins, "which have hardly been explored because of political conditions there," said Mello. He regretted that Petrobras did not accept Angola’s offer of the concession to all its deep water fields in 1990. Now oil companies from rich countries hold the concessions.

There are other promising marine areas in the south of the Gulf of Mexico and the waters off of Venezuela, but all these new frontiers will not have much effect on the world crude market, in Mello’s view. The present high prices of crude are due to the time-lag between finding oil and beginning to extract it, he said.

In Tupí, for example, it will take around eight years to reach full production, and the whole of its reserves would only meet world consumption needs for three months. Finding other oilfields in the basin will demand huge investment, time, and many exploratory wells dispersed throughout an area four times the size of Switzerland.

For all these reasons, as well as increasing domestic demand for oil-based fuels, Brazil will not become a leading exporter of oil, Mello said.

Bacóccoli fears a reduction of investments from abroad, because of a move towards nationalisation spurred by the discovery of the Tupí reserves. The government cancelled a public tender for concessions for new blocks in the Santos basin, saying that it had to review contract conditions in light of the changed situation.

Meanwhile, environmentalists point to a new challenge, because the sudden increase in oil reserves tends to detract from support for clean, renewable energy sources, said Délcio Rodrigues, an energy expert with the non-governmental organisation Vitae Civilis which is active on climate change issues.

Most scientists attribute climate change largely to the burning of fossil fuels, such as oil, coal and gas.

It is too soon to assess the effects of the new Atlantic oil frontier on international negotiations to mitigate and counteract climate change, but in Brazil "there is concern, because perspectives have changed," Rodrigues told IPS.

This country developed fuel alcohol derived from plants and other non-fossil energy sources in response to the oil crisis in the 1970s, because it lacked oil reserves and due to the high international price of crude, he pointed out. (END/2007)

You are to blame

December 13th, 2007, 07:15 AM

What about Somalia, Sudan and Ivory Coast?

Sudan is booming and will grow at around 10% in 2008, IC will grow at about 4% and I have no data on Somalia.

go to this website by the IMF for an easy to use database application
http://www.imf.org/external/datamapper/index.php

Bond James Bond

December 14th, 2007, 10:08 AM

Apparently there's a 3rd oil strike in Ghana in the making:
http://www.modernghana.com/GhanaHome/NewsArchive/news_details.asp?id=VFZSUk5VOUVWVFE9&menu_id=1&sub_menu_id=0%25%3E

Michaelda

December 14th, 2007, 02:56 PM

West Africa’s ECOWAS bloc says member states can do last-ditch deals with Europe to avoid disrupting exports in 2008, but warned they shouldn’t sign broader economic accords ahead of a possible regional deal.

"We definitely do not object to these individual negotiations with the EU, while we continue to engage our European partners in order to resolve the thorny issues around the substantive EPA (Economic Partnership Agreements)," ECOWAS Commission President Mohamed Ibn Chambas told Reuters.

Europe’s preferential trade terms for nearly 80 former African, Caribbean and Pacific colonies violate World Trade Organisation rules, and a waiver expires on December 31.

Brussels had hoped to sign far-reaching EPAs covering a range of areas from services trade, intellectual property and government procurement standards, but has run out of time and is trying to reach interim deals with countries whose exports will attract tariffs after January 1.

"We are very much concerned and share in their view that there should be some interim arrangement put in place, otherwise the livelihood of the people could be jeopardised," Chambas said in an interview late on Wednesday.

Both the regional EPAs and the interim deals are expected to abolish tariffs immediately on most exports to Europe, and gradually phase out trade taxes on 80 percent of imported goods from Europe over periods of up to 15 years.

ECOWAS is negotiating on behalf of its 15 members and neighbouring Mauritania in EPA talks, which have polarised the development community and commercial interests, souring the atmosphere of an EU-Africa summit in Lisbon last weekend.

Brussels is proposing free trade agreements with six regional EPA groupings, four of them in Africa, which will cover a far broader range of trade and investment issues than exports covered by a series of previous trade deals.

Opponents say the deals will deprive poor countries of vital tariff income and may threaten their industries with tough or unfair competition, such as imports from EU-subsidised farms.

Less poor nations are under more pressure to do interim deals as they do not qualify for Europe’s "everything but arms" programme for the poorest countries.

However, the biggest ECOWAS economy, Nigeria, has shunned any deal, and its huge oil exports would be unaffected.

Top cocoa grower Ivory Coast became the first West African country to initial an interim trade deal last week.

Neighbouring Ghana, the world’s second biggest cocoa grower, had planned to ink a deal on Wednesday, but negotiations were held up by differences between the Ghanaian and EU delegations.

"We can only sign only after these sticky issues are resolved," a top Ghanaian government negotiator said, but declined to give details or be identified. Chambas said Ghana’s deal was strictly to safeguard exports.

Broader aspects of an EPA, including the four controversial "Singapore issues" — investment, competition, government procurement and trade facilitation — should only be covered at regional-level talks which would resume on Dec. 17, he said.

"We have made it clear to our members that they should leave the negotiations on the EPA for ECOWAS and we’d continue to repeat this point to ensure regional solidarity," Chambas said. (Writing by Alistair Thomson; editing Daniel Flynn and Matthew Jones)

Michaelda

December 14th, 2007, 03:04 PM

i think ths is a bad move by ghana.

Ghana signs EPA-light

afrol News, 13 December - After intense protests and controversy over the trade partnership agreement between the European Union and Africa Caribbean and Pacific countries, Ghana government decided to sign what is referred to as an interim Economic Partnership Agreement (EPA)-light with the European Commission.

The trade deal, which made Ghana the second after Cote d’Ivoire, would immediately eliminate tariffs on virtually all of the country’s exports to Europe and on 80% of imports from Europe over 15 years.

According to Joe Baidoe-Ansah, Ghana’s Minister of Trade, Ghana and Cote d’Ivoire [the world’s top two cocoa exporters] had taken the move to avoid disruptions to their exports after preferential trade terms expires at the end of 2007.

Ghana’s horticultural exporters have recently urged their government to sign the EPA-light in order to avert the possibility of losing out in business from January 1, 2008 - a situation that compelled civil society groups and other trade sector bodies to push the Kufuor government to subscribe to the Generalised Preference System.

The EPA-light is a partial arrangement that will ensure that exports of certain sensitive products to the EU markets are protected from higher tariffs while negotiations on the original text of the EPA continue.

It is a compromise proposal from the European Union to commit ACP countries to continuous trade relations. The current preferential agreement known as the Cotonou agreement expires by the end of 2007, but the EU is not at ease with the ECOWAS demands. It will not renew Cotonou agreement.

The EU wants to start implementing a new trade arrangement known as the EPA with the developing countries by January next year. The new deal will allow exports to the EC ‘duty-free-quota-free’ while the EU in turn enjoys similar preferences on its exports to the developing markets.

By S. Makalo in Accra, Ghana

Matthias Offodile

December 14th, 2007, 04:34 PM

Foreign investors eye Africa with new enthusiasm

Reuters on 14 December, 2007 00:00:00 | 299 times read

Long regarded as the world’s worst business address, Africa
is attracting an upsurge in foreign investment drawn by high commodity prices, more peace and democracy, lower corruption and good economic growth.

Resource-rich former war zones such as Angola, Liberia, Sierra Leone and Mozambique have become amongst some of the fastest growing economies on earth, some even outstripping China — albeit from very low bases.

The International Monetary Fund estimates Angolan growth at over 30 percent in 2007, mainly due to soaring oil revenues. The African Development Bank (AfDB) says a handful of economies are still contracting but it sees overall African growth at 6.5-7.0 percent next year.

This remains some way behind China’s 10-11 percent but is within striking distance of Asia’s other major emerging economy, India, which has averaged 8.6 percent growth in recent years.

More stable African countries such as Zambia, Kenya and Tanzania are also seen making improvements and having benefited from recent debt relief. And with worries of a global downturn in the developed world, investors say there is renewed interest in the world’s poorest continent.

"In some ways, we are where India was in the early 1990s," AfDB President Donald Kaberuka told Reuters. "We are at the point where Africa is no longer an object of just pity and aid."

Africa remains exposed to a global economic downturn — particularly if this hits demand for the commodities it produces such as copper. But some economists say it is more insulated than other emerging markets such as eastern Europe.

"I think the attitude of investors has completely changed in the last few years," said Stuart Culverhouse, chief economist at London emerging markets brokerage Exotix. "Part of it is a change in fundamentals — good economic growth, debt relief — and also perhaps that as some of the other emerging markets have become more mainstream, people are looking elsewhere."

Local African consumer demand is seen almost inevitably rising, as is demand for African products from the growing economies of Asia, particularly China — which is now a huge player in many of the continent’s economies.

China’s biggest lender IBBC (1398.HK) is buying 20 percent of South Africa’s Standard Bank (SBKJ.J), while Ghana and Gabon have launched international bonds and Angola and Rwanda intend launching new stock markets.

The AfDB estimates foreign direct investment into Africa at $46-47 billion a year, although it says that assessing Chinese inflows in particular is extremely difficult.

At an investment conference in London last month organised by Russian investment bank Renaissance Capital, which is trying to become the leading investment bank in Africa, Africa was touted as the world’s biggest opportunity.

Speakers sketched a rosy picture of a continent that for decades suffered from falling prices for its commodities and rising costs of its imports from Europe and North Americabut which was now reaping the benefits of high commodity prices and low import costs from Asia.

Most African countries have seen their currencies strengthen against the dollar, somewhat mitigating soaring oil prices — although high fuel and rising global food prices are a worry.

Corruption remains a huge concern. Anti-corruption pressure groups, companies and officials say it is broadly falling although some countries including Angola lag behind. The number of wars has dwindled drastically in the last decade.

Several conference speakers complained about how Western media and aid agencies focused attention on Africa’s disasters and remaining wars. This risked making outsiders think the whole continent was like Zimbabwe, which is mired in economic crisis, or Sudan’s conflict-torn Darfur, and painted Africa as dangerous, corrupt and needing salvation from outside.

Increasingly, however, both campaigners and government donors such as Britain’s Department for International Development have moved to calling for more straightforward investment to help reduce poverty.

Soaring commodities prices have been a big draw. Gold has doubled in the last four years and oil has quadrupled since 2002, while copper has jumped from $1,500 a tonne in 2004 to $6,600 now.

But some investors remain doubtful. One European fund manager told Reuters he believed most of the money from Africa’s new commodity boom would end up in Swiss bank accounts. In some countries, despite double-digit growth, not enough seems to get through to the poor.

While the last decade has seen the end of many wars, some experts fear climate change in particular might spark more.

Others warn Africa’s markets are simply too shallow and new to withstand much investor interest.

"It wouldn’t take much before someone like Fidelity (Investments) owns the entire country," said another investment expert, referring to one of the world’s largest fund managers.

9yja

December 16th, 2007, 06:43 PM

West Africa: Arcelor Mittal Penetrates Ecowas Market

The Inquirer (Monrovia)

3 December 2007
Posted to the web 3 December 2007

Monrovia

ArcelorMittal, the world's largest steel company, is said top be making an impact in the ECOWAS region. Over the weekend it announced its intention to construct a 300 000 tonne per annum Longitudinal Submerged Arc Welded pipe mill in Nigeria

The company, prior to the deal in Nigeria, has it presence in Liberia and Senegal, making it a major investment in West Africa. It has a one billion contract with Liberia, which has made it the biggest investment in the Ellen Sirleaf's Government thus far.

In line with its commitment with Liberia, the company recently made several payments totalling US$9million to the Liberian Government in keeping with the agreement the company entered into with the government of Liberia.

Credible sources told this paper recently that ArcelorMittal, which has been operating in more than 11 countries around the world for several years now, paid US$5million to the Liberian government representing the first instalment of a one-time payment of U.S.$15million as stipulated in the agreement signed between the two parties

Now on its latest deal in Nigeria, it was reported that the latest decision of the company in Nigeria was made as a result of an independent project feasibility study ArcelorMittal conducted after receiving an invitation to invest by the Nigerian Government through the Nigerian Content Department (NCD) of the Nigerian National Petroleum Corporation.

A press release issued said, the mill will be located within the Calabar Free Trade Zone in Cross River State of Nigeria. Construction on the mill is due to begin in early 2008, with production starting in 2010. The mill will produce large diameter welded pipes in the size range of 20" - 56" of up to X80 steel grade and wall thicknesses of between 6.4mm and 38mm, in line with the oil and gas industry's technical specifications.

The investment, which ties in with the medium to long term opportunities for gas pipelines in Nigeria and the Gulf of Guinea, is welcomed by Nigerian National Petroleum Corporation, NNPC and the international oil companies who see this as a step in the right direction for Nigeria towards meeting its local content targets by 2010.

DanteXavier

December 17th, 2007, 05:28 AM

Can Kenya really follow Singapore’s steps?

December 17, 2007: There is no denying that a new wave of economic growth is sweeping across Africa. A number of countries on the continent are reporting growing GDPs and improving income per capita on an annual basis. In fact, the growth has attracted numerous foreign investors from America, Europe, and Asia looking to participate and profit from Africa’s increasing wealth.

Most African nations are hoping to duplicate the success of the Asian Tigers in turning around their failing economies. But is it really possible? Are the same underlying factors, which allowed the Asian Tigers to succeed rapidly present in the emerging African economies of today?

More importantly, can African nations implement the critical and fundamental political, cultural, and social changes, which have allowed speedy and consistent economic growth in East Asia?

It is mind-boggling that within a short period of only 40 years or so, countries like Singapore, Malaysia, South Korea, Indonesia, and Taiwan have succeeded in turning their once agrarian economies into industrial powerhouses.

Today, these countries are global leaders in the technology, manufacturing, and service industries. Moreover, it is amazing to realise that in only 40 years a country like Singapore was able to achieve a level of economic development, which took Great Britain over 400 years to accomplish.

It is easy to point out the stellar performance achieved by Singapore but it is a gross mistake to assume that any African country can quickly and easily duplicate such results.

Often, most people discount culture and its critical impact in embracing and implementing successful economic policies within a country. Whereas it goes against political correctness to state that one culture is superior to another, it is high time we acknowledge a stark reality; certain cultures are more organised and better suited to promote speedy economic growth than others.

Some countries, by plan or by default, provide the right political and social climates, which allow for quick mobilisation of resources, faster growth of capital, and the rapid application of innovation/technology. The key point being speed; such nations are not faced by serious political, cultural, and social hurdles which inhibit rapid economic growth.

Singapore being an East Asian country is strongly influenced by Confucianism—a philosophy which espouses societal well-being and discourages unbridled individualism. Although one would assume that capitalism or “modern” economic success must go hand in hand with excessive individualism, such an assumption is not necessary warranted.

The people of Singapore, under the brilliant leadership of Lee Kuan Yew—who was the country’s first Prime Minister from 1959 to 1990, put aside individualistic pursuits and pushed their national economic goals to the forefront.

Quick economic development was accomplished by directing and investing most of the country’s capital and human resource into certain key industries, which afforded the country sustainable competitive advantages in global trade. The people bought into the state-led economic development strategy because of the visionary and the transformational leadership provided by Lee Kuan Yew, and the society’s “natural” leaning to Confucianism was not in conflict with their national economic goals.

The belief in the importance of society over the individual made it is possible for the people to embrace Yew’s message of radical economic reform in order to improve the well-being of their entire society—a philosophy supported by Confucianism.

I am a proud Kenyan, but I submit that Kenya is not Singapore. Not economically and not culturally. And as for a visionary and transformational leader, we are still waiting for our Lee Kuan Yew. And as for a national philosophy, we are still searching for one.

In all honesty, certain things that worked very well and delivered lucratively in Singapore can not translate well in the “typical” Kenyan environment.

Firstly, the two countries are divided by geography and history as they are divided by culture. Whereas Singapore espouses a collective culture, Kenya’s is individualistic. In Singapore, order is supreme. In fact, the need to promote social order can sometimes trample individual freedom—especially those overwhelmed by a Eurocentric bias.

When it comes to achieving national goals and interests, the people of Singapore, collectively, frown upon dissent and shirking. There is a strong emphasis to conform to the majority.

My point being, it is much easier to reach a national consensus, follow the leader, mobilise human capital, organise capital resources, control production processes, and implement national policies in Singapore as compared to Kenya—where trifling politicians and disorganised citizens/labour can actively or inadvertently frustrate progressive national agenda.

In Kenya, especially after the advent of political pluralism, one can argue that irresponsible freedom on part of the individual has somewhat subdued social order, which in many ways can preclude economic development.

This might seem an unfair attack on the Kenyan society, but a deeper analysis will reveal that although we cherish the fruits of capitalism, most of us lack the discipline, the know-how, and the tools needed to create and accumulate economic wealth. Our failure to master wealth creation has relegated Kenya into a culture of instant- gratification and institutionalised corruption, best displayed by our thieving politicians and our impoverished citizenry.

Singapore on the other hand, is a saving and an investing nation. The average man or woman in Singapore saves and invests a larger portion of their income than most people in the world. A saving nation is poised to be a rich nation.

Funds allocated to saving and investment accounts by the private individual provide business and government with the capital needed to grow industry and to build infrastructure.

It is impossible to analyse Kenya and not discuss institutionalised corruption. The disease is as contagious among the populace as it is damaging to our economy. It is impossible to reduce the cost of production, to increase the speed of wealth creation, and to maximize economic efficiency in an environment where corruption puts additional cost on every good and service produced within the country.

Back to Singapore: It is a corrupt-free society. In fact, the country ranks high among the least corrupt nations in the world. The ability to reduce total cost of production by operating in a corruption-free environment gives Singapore an advantage when it comes to pricing and selling its commodities in the global market.

All in all, Singapore has turned itself into an economic giant, within a generation, because the country’s political, cultural, and social systems, by design, favour speedy economic growth. Focused leadership from the top, and unyielding social order among the people have played a crucial role in achieving the country’s economic wealth.

In Kenya’s case, there is glaring and promising potential, but we must first attain the political, social, and cultural kingdoms before we can achieve the economic kingdom.

Becoming like Singapore is not a case of just copying and pasting economic policies. Fundamental and radical change is needed to re-engineer our political, cultural and social models in order for Kenya to experience “real” and sustainable economic development.

Mutua is a Kenyan resident in Atlanta, Georgia, USA

http://www.bdafrica.com/index.php?option=com_content&task=view&id=4927&Itemid=5848

Matthias Offodile

December 17th, 2007, 04:19 PM

Uganda to export electricity to DRC
Written By:claire wanja/kna , Posted: Sun, Dec 16, 2007

Uganda is planning to export 50 Megawatts (MW) of hydro electricity to the Democratic Republic of Congo (DRC).

The power to be exported will be tapped from Nyahuka in Fort Portal and near Mpondwe in Kasese, according to the State Minister for Minerals Kamanda Bataringaya quoted by Daily Monitor newspaper on Saturday.

"DRC wants us to sign the inter-connectivity agreement for the export of 50 MW," Bataringaya told the media at the sidelines of the Joint Permanent Commission sitting at Munyonyo Commonwealth Resort in Kampala suburb.

The commission was established in 1986 to boost relations between the two neighbours.

The last meeting was convened in Kinshasa in 1997.

Currently Uganda exports electricity to Kenya despite a deficit back home.

But Bantaringaya said the power to DRC towns would be generated from new sites in a joint investment programme.

DRC has sent over 60 officials including six ministers to negotiate and improve relations with Uganda in areas of defence and security, economy, politics and diplomacy.

The DRC ministers are scheduled to meet President Yoweri Museveni for further consultations.

Foreign Affairs minister Sam Kutesa said the meeting at Munyonyo was intended to enable the two sides to dig deeper into the nitty- gritty of the past agreements signed between the two countries.

DRC Foreign Minister Mbusa Nyamwisi said his country and Uganda should work together in exploiting the recently found oil reserves along the common border for the benefit of the two nations.

The two neighbouring countries exchanged fire at Lake Albert between July and September.

Oil reserves adequate for commercial exploitation were found at the lake one year ago.

The clash caused the death of several civilians and soldiers.

A Biritish oil engineer was among the dead.

The meeting is a follow-up of the summit, at which Presidents Yoweri Museveni and Joseph Kabila signed a pact on Sept. 8, in Tanzania's Ngurdoto resort town to defuse rising tension along the border.

They also agreed to collectively explore and use any oil found on the border through a joint commission.

Matthias Offodile

December 17th, 2007, 04:31 PM

Lagos begins massive rehabilitation

Written by Olasunkanmi Akoni
Monday, 17 December 2007
The Lagos State Government has awarded contracts in respect of 11 roads within the Apapa Central Business District with a combined length of 8.420km. The roads are to be upgraded into high street standards similar to the completed Lagos Island Central Business District (LICDB) and the on-going infrastructural improvement of Yaba/Jibowu to Iddo in the Lagos Mainland local government. The Special Adviser on Works and Infrastructure, Engr. Ganiyu Johnson, said in Lagos weekend that the 11 roads to be upgraded/rehabilitated having been identified as forming a loop as a ring road for circular movement and ease of traffic within the Apapa Government Reservation Area/Central Business District Area include: Marine Road; Bombay Crescent; Randle Road; Calcutta Crescent; Duala Road; Kofo Abayomi Street; Itapeju Avenue; Warehouse Road; Commercial Road; Burma Road; and Aerodrome Road.

Johnson explained that the state government decided to undertake the improvement and upgrading of these roads in order to enhance commercial and economic activities in the area and Lagos State in general; transform the Apapa CBD into a 21st century business precinct comparable to that of other major cites in the world and greatly improve access to essential public services through the provision of service ducts along the road for water pipes as well as electricity and telecommunication cables.

His words: “The usage of the network of roads in the GRA is at full capacity and can no longer cope with the high volume of traffic in view of the concentration of business and commercial activities in the area.
“The area is indeed undergoing rapid economic and social development. The small width of the roads and their present state of disrepair are impediments to free flow of traffic for motorists plying the road network.

Kenguy

December 17th, 2007, 06:27 PM

Uganda to export electricity to DRC

^^
We dont even have enough for Uganda!!! How can they even think of exporting?:bash:

African Lion

December 17th, 2007, 07:24 PM

^^
We dont even have enough for Uganda!!! How can they even think of exporting?:bash:

That is also something I found to be funny about ethiopia. Most people dont have electricity and they plan to export to neighboring countries. :lol:

Michaelda

December 18th, 2007, 03:46 AM

West Africa: Central Bank in Stalemate as Politics, Tradition Clash

17 December 2007
Posted to the web 17 December 2007

François Gouahinga

A rift between heads of state of the eight-nation West African Economic and Monetary Union (WAEMU) has left the bloc's central bank, BCEAO, with an interim governor for over two years now. A meeting of WAEMU'S council of ministers in Burkina Faso last week failed to address the issue, leaving it to a summit of presidents announced for January.

At issue is whether or not to continue with the longstanding unwritten rule of having a national of Côte d'Ivoire lead the bank. The rule originated in an agreement between the first president of Côte d'Ivoire, Felix Houphouet Boigny, and his Senegalese counterpart, Leopold Sedar Senghor. It reflected the relative weight of the two nations in the post-colonial era.

The strongest economy west of Nigeria, Côte d'Ivoire was granted the privilege of naming the bank's governor, and as the sub-region's diplomatic hub Senegal was to host its headquarters.

Four decades later, dissident voices are now questioning the tacit accord. Furthermore, consensus agreement on a permanent appointment is required, and many fear that the current Ivoirian nominee for the position of BCEAO governor, Antoine Bohoun Bouabre—a controversial figure—will not attract this.

Although Côte d'Ivoire is still WAEMU's lead nation, years of internal fighting have strained relations with its neighbors, particularly Burkina Faso, which was once accused of meddling in the country.

No country has so far announced its intention to challenge an Ivoirian bid, but it is believed that Senegal, Niger and Burkina Faso all have an eye on the bank's top spot. Should a challenge materialize, the strongest is likely to come from Burkina Faso, whose national, Justin Damo Barro, currently serves as the bank's interim governor.

France, which guarantees WAEMU's CFA Franc peg to the Euro, has remained silent on the issue. So have the other member states of the union: Benin, Guinea Bissau, Mali and Togo.

President Laurent Gbagbo officially designated Bohoun Bouabre as Côte d'Ivoire's candidate to head BCEAO last October.

The only state minister in the Ivoirian cabinet, Bohoun Bouabre is a former economics professor at the University of Abidjan. Critics blame him for the decline in domestic production of cocoa and coffee, the nation's top export commodities. As finance minister from 2002 to 2005, he oversaw the reforms that many now say have resulted in more bureaucratic hassles for producers, prompting the emergence of a parallel market.

Others view his close relationship with the president as a liability. They say Bouabre, who is also Gbagbo's campaign manager in his hometown, may not survive as BCEAO governor should the president lose the upcoming election. Yet others point to the fact that unlike previous governors, Bouabre did not rise from the ranks of BCEAO.

The Ivoirian government believes that implicit accords are as good as written law and honored as such the world over—for example, the World Bank is always headed by an American, and the International Monetary Fund by a European.

Although once in place the bank’s governor cannot favor his country of origin, for Ivoirians the contest for BCEAO leadership is a matter of pride. In 2003 the African Development Bank (AfDB) moved its operations from its statutory headquarters in Abidjan to Tunis, citing heightened insecurity as a result of the rebellion in the north. The decision was decried by many in Côte d’Ivoire’s business community, who were sorry to lose AfDB’s affluent staff.

This time President Gbagbo has threatened to withdraw from WAEMU should his country lose the battle, a threat that if acted upon may sink the monetary union altogether. Still the world's largest cocoa exporter, Côte d'Ivoire holds the biggest share of foreign currency reserves at BCEAO, an estimated minimum of 32 percent.

But a withdrawal is likely to work to no one’s advantage, not even Côte d'Ivoire’s. Le Nouveau Reveil, an Ivoirian daily, has hinted at the possibility of a compromise by publishing a shortlist of potential replacements for Bouabre.

Should these alternatives fail, the sub-region may lose what has for a long time been hailed as a model of integration on the continent.

Matthias Offodile

December 18th, 2007, 07:57 PM

Cameroon, China strike water deal: report

Mon Dec 17, 2:20 PM ET

YAOUNDE (AFP) - Cameroon and China have clinched an agreement to increase water production and distribution in Cameroon's economic capital Douala, the government daily Cameroon Tribune reported Monday.
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Bankrolled by a 11-billion CFA loan from Pekin (16.l7 million euros, 24 million dollars), the project includes the construction of pipes, wells and a potable water treatment plant, the newspaper said.

The Chinese firm CGC Overseas Construction Co. is to realise the project, which reportedly begins in January and aims to boost Douala's water production capacity from 115,000 to 260,000 cubic metres in a year.

According to the newspaper, only a third of Douala's inhabitants currently have direct access to potable water and the city regularly suffers from cholera epidemics.

The construction company becomes the second Chinese company to operate in the West African port city; another was involved in road maintenance.

Bond James Bond

December 23rd, 2007, 09:43 AM

http://ap.google.com/article/ALeqM5h9WbzF3GH5VN3tndfev9Ex0vEpIAD8TMHFL00

Ghana Leader: Oil Reserves at 3B Barrels
By FRANCIS KOKUTSE

ACCRA, Ghana (AP) — Ghana's president said Saturday that offshore oil reserves discovered in the West African country's waters total 3 billion barrels.

"Ghana has struck oil in commercial quantities," President John Kufuor said, speaking at a ruling party congress in the capital, Accra. "This is only the beginning. The future is very bright indeed."

British-based oil explorer Tullow Oil PLC announced over the summer that it had had success with a well off the coast of Ghana. It gave no details at the time, saying only that it had discovered "a significant light oil accumulation" and was appraising it.

Tullow operates the Deepwater Tano license that covers the new stake, holding a 50 percent stake. Its partners are Kosmos Energy and a subsidiary of Anadarko Petroleum Corp., Sabre Oil & Gas and the Ghana National Petroleum Corp. Tullow also holds a 23 percent stake in the West Cape Three Points license, off Ghana.

Kufuor gave no other details.

Energy Minister Kofi Adda also declined to comment on the announcement, but told The Associated Press the find was part of the ongoing explorations involving Tullow in western Ghana.

Matthias Offodile

December 23rd, 2007, 03:36 PM

African financial markets: On safari

Dec 13th 2007 | JOHANNESBURG

From The Economist print edition

Sub-Saharan Africa is becoming an increasingly attractive hunting ground

THIS month Omar Bongo—the longest-serving ruler in Africa—celebrated 40 years in power in Gabon. In Libreville pictures of him hang everywhere. But outside the country, Gabon achieved a far more impressive landmark, when it quickly raised $1 billion on the international markets—becoming only the third country in continental sub-Saharan Africa in two decades to issue sovereign bonds abroad.

The prosperous Central African country has oil, vast mineral wealth, close ties with China, a good S&P credit rating (BBB-) and better-managed public finances, which are some of the ingredients sought after by Africa's foreign creditors—even those who may struggle to find Gabon on a map. Increasingly, other African countries, including those without oil, are also arousing interest among outsiders. Ghana launched an international sovereign bond in September. Kenya, and possibly Zambia and Tanzania, hope to follow.

There is a dizzying sense of the gold rush about the way investment bankers are peddling the continent to investors. Many portray parts of sub-Saharan Africa as the new frontier for risk-takers, offering returns that, it is hoped, will be uncorrelated to the fluctuations of developed markets. Sometimes the salesmen gloss over the political risks, the corruption and the debilitating exposure to commodity cycles. But it is not all hype. High commodities prices, good debt-management, debt relief and better economic leadership have produced the strongest growth and lowest inflation in sub-Saharan Africa in over 30 years. South Africa is still the biggest magnet for foreign portfolio investment, but capital is flowing into shares and bonds elsewhere, too.

Even those countries unable to issue international bonds are preparing the ground. Standard & Poor's (S&P), a credit-rating agency, has been working since 2003 with the United Nations Development Programme and rates 13 countries in sub-Saharan Africa. In November S&P opened its first African office in Johannesburg. Ratings provide a proxy measure of country risk and demonstrate a country's commitment to transparency, both of which should help attract foreign capital.

Domestic debt markets are also opening to foreigners—though most of the money is being raised by states, rather than private companies. In the West African Economic and Monetary Union, annual issues of publicly traded government debt have grown tenfold since 2000, reaching 383 billion CFA francs ($770m) in 2006. In some sub-Saharan countries, 10-20% of local sovereign bonds are now held by foreigners, according to the IMF.

Because investing in local markets can still give foreigners headaches, some banks are offering synthetic securities instead. For example, South Africa's Standard Bank, which operates in 18 African countries, packages local government bonds into instruments it sells to foreign investors. Meanwhile, the development institutions are doing their bit to spur innovation. The African Development Bank has issued eight Eurobonds denominated in, or linked to, African currencies, starting with a bond in Botswanan pulas in 2005. The International Finance Corporation (IFC), the private arm of the World Bank, has done currency swaps in Zambian kwachas and Nigerian nairas.

Equity investors are also finding a way in, though via circuitous routes. Most stock exchanges outside South Africa and Nigeria remain minuscule and still illiquid, but returns are picking up. Renaissance Group, a Moscow-based emerging-market bank, says that its index of 50 shares listed on 11 exchanges across sub-Saharan Africa increased by 39% in dollar terms between January and October this year—compared with 29% for the broader MSCI emerging-market index. Making the markets more accessible to outsiders, Merrill Lynch is listing its Africa Lions Index certificates, which track shares in at least 15 African countries, on several European exchanges.

Is the appetite likely to last? On the one hand, more transparency means less scope for corruption and profligacy. Provided the funds are used sensibly, they should keep on coming. But until Africa's economies become more diversified, they will be over-exposed to changeable weather, fickle aid flows and volatile commodity prices. Ultimately, Africa has to manage the bounty carefully. After an unprecedented wave of debt relief, it would be a shame to drown in debt again.

DanteXavier

December 24th, 2007, 05:36 AM

Great news for Botswana!

Botswana: Economy Blossoms As Mining Shines

The year 2007 has been a hive of economic activity with all sectors recording significant investments, although mining will stand out as the most vibrant sector in the year.

All the macroeconomic indicators seem to be pointing in the right direction with inflation being tamed to manageable levels, although at 7.7 percent in November, it is still out of the central bank's objective. Increased economic activity is likely to boost the GDP while the central bank seems to be scoring points on the exchange rate management front. However, although authorities will be pleased with achievements made on the economic front, particularly the attraction of foreign direct investment (FDI) in the mining sector, a damning report by the United Nations released towards the end of the year spoiled the party a bit.

The report revealed that the country's high income levels have not been converted into an improved standard of living for Batswana. With a GDP per capita of US$12 387, the highest in Africa, Botswana was ranked 124 out of 177 countries as measured by the Human Development Index (HDI).

The HDI measures a country's average achievements in three basic dimensions of human development, which include life expectancy, income and knowledge, divided into adult literacy and primary, secondary and tertiary enrollment ratio.

Other African countries ranked ahead of Botswana in terms of human development such as Egypt, Tunisia and Algeria have nearly half as much GDP per capita, a development which suggests the country's inadequate improvement in the literacy and life expectancy category.

Looking at the respective economic sectors, the mining sector most certainly had the most activity. As bullish commodity prices continued their run in 2007, so has there been a significant growth in the mining sector and related activities, especially in the northern and central parts of Botswana had the most visible mining activities.

Diamond Trading Company Botswana (DTC Botswana) took centre stage in 2007. The appointment of its Managing Director and Board has been completed. The company announced the licensing of 16 diamond cutting and polishing companies who all met the criteria for supply and will become DTC Botswana Sightholders.

The Mmamabula Energy Project also took major strides this year. CIC Energy, in partnership with International Power, plans to construct a power station and an integrated coal mine. A power purchasing agreements ("PPAs") between South Africa's Eskom and Botswana Power Corporation has been signed. Russian mining giant Norilsk Nickel entered Botswana in June after acquiring LionOre shares for Ca$6,8-billion. The company now has interests in Tati Nickel Mines, Botswana Metal Refinery and BCL. Norilsk recently began construction of a P4 billion BMR Activox Refinery.

African Copper announced positive results for its Thakadu-Makala exploration properties. It also signed a five-year mining contract with Moolman Mining and its processing plant has been completed. African Copper's Mowana Mine (previously Dukwe) will produce its first concentrate in early 2008.

Discovery Metals published upbeat results for its Maun Copper Project, which comprises seven prospecting licences within the Kalahari Copper Belt. Positive results were also reported at their other project in Dikoloti.

This year also saw DiamonEx commence construction of its diamond mine near Lerala and secured about P98 million funding from Babcock & Brown. Carat production at the mine is scheduled for the first half of 2008. African Diamonds also announced positive results for its AK6 joint venture project with De Beers near Orapa. The AK6 resource is targeted to come on stream late in 2009. African Energy Resources discovered uranium at its Sese project while Aviva Corporation recently listed on the local bourse to raise capital to develop its Mmantswe coalfields.

With all these mineral developments and investment, the question going into 2008 is: will Botswana manage to diversify its economy from mining? In manufacturing (excluding diamond polishing and cutting), more new companies came onto the scene, a development which is going to boost the sector regarded as the missing link in national development. The year saw new companies set up in the leather/tannery industry, plastic bottle making and condom manufacturing, among others.

The improved performance in the manufacturing sector is partly attributed to Government facilities such as CEDA Venture Capital Fund. However, disappointment should be expressed with the CEDA main fund, which we reported this year to be on the brink of collapse due to high operational costs and poor or non-repayment of loans by beneficiaries.

CEDA's operations will need to go through the scanner next year, with a view to restructuring the whole system from both the policy and operational angles.

Not much was reported on the agriculture side in the year, although it is pleasing to note that more and more Batswana are developing an interest in farming, which should reduce its dependence on South Africa for food. With food shortages anticipated in the coming years, Government should put more effort in ensuring that the country can sustain itself as far as food requirements are concerned, which will mean more and more funds being pumped into the sector.

The financial services sector continued to grow in 2007, with institutions coming up with new and innovative products in a bid to survive in this highly competitive industry. A stable macroeconomic environment and prudent monetary policy has meant banks had to come up with new ideas on how to lure customers in a sector which some regard as already over-banked.

In the spirit of citizen economic empowerment, innovation and diversification, most financial institutions this year focused more of their attention on Small to Medium Enterprises (SMEs).

Barclays and FNBB signed a Memorandum of Understanding with the Local Enterprises Authority (LEA) to facilitate affordable funding for local entrepreneurs, while Standard Charted Bank crafted two products for SMEs. With talk of another bank coming on to the scene next year, competition is bound to get even tougher. Another milestone by commercial banks in 2007 was the establishment of the Botswana Credit Bureau, which will be an information sharing mechanism enabling banks to exchange detailed client information. The mechanism, which got operational this month, came against the backdrop of a high credit defaultment rate caused mainly by heavy indebtedness to multiple financial institutions by consumers.

The Botswana Stock Exchange has also been abuzz with action this year, which was just a reflection of what was happening on the ground particularly in the mining sector. The DCI opened the year at 6195.45 and has risen by 42 percent since. But it has been on a free fall in the last quarter, mostly due to market correction by commercial banks as investors thought shares were over-priced.

The highest level the DCI reached was 9866.19 points on 31 August 2007. Only two companies, Aviva and PrimeTime, listed on the Botswana Stock Exchange this year, while two others, LionOre and Forbes, de-listed from the bourse. Five companies listed on the BSE last year, which resulted in improved liquidity on the market.

It should be noted that Botswana's rating on the HDI did increase this year, and it jumped up by about 7 spots. It had been declining before that due to AIDS, but the government has made some significant headway against that problem which has resulted in the increase we're now seeing.

Matthias Offodile

December 25th, 2007, 01:21 PM

Germany writes off Cameroon's $1.2-billion debt

December 22, 2007

The Cameroonian and German governments signed an agreement Friday to write off more than 1.2 billion U.S. dollars of debt owed by the West African country.

Germany decided to exempt Cameroon from its debt of 530 billion CFA francs (1.23 billion dollars) after the country met conditions under the Enhanced Heavily Indebted Poor Countries (HIPC) initiative in May 2006.

The debt mainly came from the country's infrastructure construction, including such projects as Yaounde International Airport, Douala Port, national railways and the state television station complex.

The HIPC initiative was launched by the World Bank and the International Monetary Fund in 1996, aiming to create a framework in which all creditors, including multilateral creditors, could provide debt relief to the world's poorest and most heavily indebted countries.

Source:Xinhua

Matthias Offodile

December 25th, 2007, 01:33 PM

China offers $8 Billion credit-line to DRC for rail and road construction

RDC : La Chine offre 8 milliards de dollars pour la construction des routes et hôpitaux

Publié le 24-12-2007 Source : APA

La République démocratique du Congo a bénéficié cette année d’un apport financier de 8 milliards de dollars de la Chine pour la construction et la modernisation d’infrastructures routières, notamment des chemins de fer et des routes, selon un accord entre les deux pays signé récemment à Kinshasa.

Trois milliards de dollars du financement chinois serviront à la construction ou la modernisation de 3.213 km de chemin de fer entre Kinshasa et Ilebo au Kasaï Occidental (centre), Matadi (Bas-Congo, Ouest)-Kinshasa, Ilebo-Kananga-Mwene-Ditu et Lubumbashi-Sakanya au Katanga.
Le financement chinois servira également à la construction d’une autoroute de 98 km devant relier Lubumbashi à Kasumbalesa, au Katanga, ainsi que 3.402 km de routes bitumées dans le Kivu.
Outre les routes nationales, les fonds serviront également à l’édification de 450 km de voierie des villes des provinces ainsi que de la capitale, Kinshasa.
Sur le plan de la santé, 31 hôpitaux de 150 lits équipés seront construits, de même que 145 centres de santé, de deux universités de standard international ainsi que de 5.000 logements sociaux.
En contrepartie, la partie chinoise va bénéficier des matières premières précieuses de la RD Congo pour le compte des entreprises qui ont consenti le financement.
La RD Congo regorge d’immenses ressources naturelles, mais la majorité de sa population, estimé à 60 millions d’habitants, vivent avec au moins 1 dollar par jour.

Michaelda

January 1st, 2008, 06:14 AM

Africa: EPAs signed after EU's threats

Despite the worries not only of the leaders but also the civil society and entrepreneurs, African leaders signed the economic partnership agreements with the EU 'under duress' according to Rob Davies, South Africa's deputy trade minister
Ghana president and AU chairman John Kufuor with President of the European Council and prime-minister of Portugal, José Sócrates
Some 35 of almost 80 African, Caribbean and Pacific (ACP) countries involved in negotiations aimed at reaching economic partnership agreements (EPAs) had accepted deals with the European Commission by December 19.

Davies alleged that many of these trade accords were reached because the Commission had threatened to impose onerous tariffs on goods from ACP countries destined for the Union’s markets should EPAs not be concluded this year. ‘‘This lead to a situation where a country that was unwilling to sign on did so under huge duress and with little enthusiasm,’’ he told IPS.

Although its neighbours -- Swaziland, Botswana, Namibia and Lesotho -- have entered into agreements, South Africa has decided not to. This is despite the fact that the five countries comprise the Southern African Customs Union.

One of the major points of divergence to emerge during talks between South Africa and the EU concerned the latter’s insistence that a ‘‘most favoured nation’’ clause be inserted into the agreement.

Such a clause would require South Africa to ensure that any trade concession which it grants to a country enjoying more than a one percent share of world merchandise exports -- such as China, Turkey, India and Brazil -- is automatically conferred on the EU, too.

‘‘This would lock us into a primary relationship with the EU for ever more,’’ said Davies. ‘‘It would be an unacceptable limit on our sovereignty.’’

Nonetheless, Davies said he was encouraged by assurances from José Manuel Barroso, the Commission’s president, during the recent summit between EU and African leaders in Lisbon, Portugal.

Barroso promised that further discussions on the EPAs would happen in 2008 and that there would be an opportunity to revise provisions that ACP countries regard as contentious.

Barroso’s intervention has been considered as more conciliatory than the inflexible stance adopted by Peter Mandelson, Europe’s trade commissioner, who has insisted that ACP countries must commit themselves to far-reaching trade liberalisation in order to comply with rules set by the World Trade Organisation.

‘‘It is certainly a pull-back from the ‘take-it-or-leave-it, this-is-all-I-can-offer-you’ approach that has governed negotiations, particularly in the last round,’’ Davies said.

The EPAs require that ACP countries remove at least 80 percent of the trade taxes they levy on imports from Europe.

This requirement has been denounced by non-governmental organisations (NGOs), fearful that farmers and nascent industries in poor countries will be unable to compete with an avalanche of imports that are often cheaper than goods produced domestically and, in the case of food, highly subsidised.

Mandelson hit back at those criticisms in a speech delivered in Ljubljana, Slovenia, on December 12.

‘‘The EPAs have been subjected to an aggressive NGO campaign,’’ he said. ‘‘The EU has been accused of forcing open African markets to European companies; of bullying poor countries into liberalisation they do not want or need

‘‘What strikes me most about these arguments is that they carry such a profoundly distorted view of the value of trade. More importantly, they show no respect for the many ACP negotiators and reform-minded ministers who have worked hard with the EU to build agreements that do reflect development needs,’’ said Mandelson.

He claimed that South Africa, which already signed a trade agreement with the EU in 1999, does not ‘‘seem to speak for the many African countries who do need these agreements and who are signing up to them’’.

But Davies dismissed the suggestion that his government has been trying to impede economic progress in Africa. ‘‘It’s manifestly untrue that we are trying to hold everyone back,’’ he said.

‘‘We were not legally obliged to enter into the EPA (negotiating) process. But we did so because we thought it could be a step to regional integration (in Southern Africa). I’m afraid it has worked out in an endgame that could contribute to regional disintegration.’’

Sophie Powell from the British fair trade campaign group Traidcraft echoed Davies’ remarks.

‘‘It is very clear that countries have signed up as a defence against the threat of tariffs,’’ she said. ‘‘No alternative was presented by the Commission, as it piled on the pressure. This really is no way to make a pro-development trade policy.’’

The tariffs will not apply to 32 ACP states that are recognised by the United Nations as least developed countries (LDCs). These are eligible to benefit from a scheme known as Everything But Arms, under which most of their non-military exports can enter the Union free of duties or quotas.

Yet EU governments decided earlier this month that any ACP country not categorised as an LDC will lose the current preferential access it enjoys to the Union’s markets on 1 January unless it signs an EPA. Tariffs -- often exceeding 10 percent -- will be applied to those countries’ exports, with an adverse effect on their earnings.

Ten countries -- Gabon, Congo-Brazzaville, the Cook Islands, Micronesia, Tonga, Palau, the Marshall Islands, Naura, Niue and Nigeria -- could face such tariffs, as they had not yet signed EPAs as the Brussels institutions prepared for their Christmas holidays.

The EU’s threat came despite calls by development aid ministers representing four of its 27 governments that no ACP country should be put in a worse-off position if it cannot sign an EPA.

Glenys Kinnock, a Welsh Socialist member of the European Parliament, said she was ‘‘baffled’’ that only ministers from Ireland, Britain, the Netherlands and Denmark had issued that plea.

‘‘I am also obliged to question whether EPAs in their current form can fulfil the promise that they can be tools for development,’’ Kinnock added.

‘‘Many people concur that cohesive and planned regional integration will be a key driver of economic development. Yet the EPAs that the European Commission is pressuring ACP countries to sign will have an inevitable detrimental impact on regional economic integration, particularly in Africa.’’

Matthias Offodile

January 4th, 2008, 04:23 PM

Ghana celebrates start of West Africa Gas Pipeline project
03 January, 2008 12:00:00 Godwin Nnana, Accra

It was double celebration in Ghana as the country marked the Yuletide with its receipt of the first volume of gas from the long-awaited West Africa Gas Pipeline (WAGP) project.
President John Kufuor, at a gathering in Accra, said the gas would provide a more affordable source of energy to the country.

Gas energy is cheaper and cleaner than petrol and as such will ensure that the Ghanaian consumer gets better value for his money, the president told the gathering.

Gas energy was one of the policy options expedited by the government during the country’s recent energy shortage resulting from decrease of the water level of Akosombo Dam, the main source of power in Ghana.

"Only yesterday the long-awaited West Africa Gas Pipeline came on stream with its first flow of gas. This is a more affordable source of energy than crude oil," Kufuor said while addressing members of his party shortly after its convention at the University of Ghana campus in Accra.

The announcement of the start of WAGP is coming a few days after the price of fuel went up by about 5 percent in Ghana. The hike is attributed to an upsurge in the prices of crude oil on the world market.

"Electricity cost has gone up by 35 percent in the last three months. Our hope is that with the gas project now in place the cost will come down again," said Eboh Addoh, a businessman in Accra.

"We are happy that the project has finally started to work. I think this is when we’ve really shown that we are serious about integrating the countries in West Africa," said Naniette Yaw, a worker with an airline company.

The project is a 678-kilometre pipeline designed to transport natural gas from Nigeria to Benin Republic, Togo and Ghana.

Chevron Nigeria is the project’s operator with a 36.7 percent stake. Other shareholders in the project, which is a public-private sector partnership, are Nigeria National Petroleum Corporation (NNPC), which holds 25 percent; Shell, 18 percent; Ghana’s Volta River Authority, 16.3 percent; Societe Togolaise de Gaz (SoToGaz) of Togo, 2 percent, and Societe Ben Gaz S.A (SoBeGaz) of Benin, 2 percent.

The World Bank, which assisted with funding for the project, estimates that Benin , Togo and Ghana can save $600-million in energy costs over a 20-year period. Ghana also calculates that it will save 20,000 to 30,000 barrels of crude oil per day by taking gas from WAGP to run its power plants.

Michaelda

January 5th, 2008, 07:20 PM

Zambia signs $1.2 billion crude oil deal with Kuwait firm

25 minutes ago

LUSAKA (AFP) - The Zambian government has awarded a 1.2 billion dollar crude oil deal to a Kuwait firm to supply over 1.4 million tonnes of oil to the southern African nation, an official said.
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Independent Petroleum Group (IPG) of Kuwait won the oil tender after beating five other competitors, said Peter Mumba, permanent secretary in the ministry of energy.

"After a tendering process to supply 1.440 million metric tonnes of crude oil for five companies, the government has signed a 1.2 billion contract with IPG," Mumba said in a statement issued late Friday.

He said IPG would supply crude oil to Zambia for the next two years and the first consignment of 90,000 tonnes was expected to arrive in Zambia next week.

"The rest of the crude oil would be brought into the country in 16 consignments over the remaining period of the contract," Mumba said.

Zambia decided to use an open tender system after facing persistent fuel shortages in the past few years following misunderstandings with some suppliers of crude oil.

The crude oil will be processed at Zambia's sole oil refinery, Indeni, which has also been facing frequent breakdowns due to a lack of maintenance.

Muttie

January 8th, 2008, 10:00 PM

FOREIGN DIRECT INVESTMENT REACHED NEW RECORD IN 2007

Global foreign direct investment (FDI) inflows grew in 2007 to an estimated US$1.5 trillion, surpassing the previous record set in the year 2000, UNCTAD investment experts said today.

In Africa, FDI inflows in 2007 remained relatively strong. The unprecedented level of inflows (US$36 billion) was supported by a continuing boom in global commodity markets. Cross-border M&As in the extraction and related service industries of Africa remained a significant source of FDI, but new inbound M&A deals also took place in the banking industry. Egypt, Morocco, and South Africa were the main beneficiaries of FDI inflows.

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Matthias Offodile

January 15th, 2008, 01:10 PM

Noble Well Offshore Equatorial Guinea Yields 60% Greater than Original Expectations

Noble Energy Monday, January 14, 2008

Noble Energy, Inc. announced a successful test in Block "I" offshore Equatorial Guinea. The 'I-4' well, which is on trend with the Belinda discovery on Block "O" offshore Equatorial Guinea, encountered a high quality Miocene reservoir that, when tested, yielded flow rates of 1,634 barrels per day of condensate and 28.9 million cubic feet per day of natural gas, or approximately 6,450 barrels of oil equivalent per day (based upon a natural gas to crude oil conversion ratio of 6 to 1), with production rates limited by test equipment.

The 'I-4' well, located in 2,226 feet (678 meters) of water and seven miles (11.2 kilometers) southwest of the original Belinda discovery in Block "O" was successfully drilled to its objective at a total depth of 9,721 feet (2,963 meters). The well was the final of the six-well program drilled by the Songa Saturn drillship on behalf of Noble Energy.

Charles D. Davidson, Noble Energy's Chairman, President and CEO, said, "The successful exploration and appraisal drilling program in the Belinda trend along with further calibration of our seismic and additional reservoir analysis confirms that the original pre-drill resource range was too conservative. We now believe the resource range to be approximately 60 percent greater than original expectations. In addition, well results in the area verify the presence of substantial recoverable liquids which are now estimated to be about 40 percent of the total resources discovered with proper processing."

Davidson went on the say,"We plan to have an active 2008 exploration and appraisal drilling program for both Blocks I and O as we assess our options to commercialize our discoveries in the region. Our next well, scheduled to spud in late February with the Sedco 700 drillship, will look to verify the oil resources downdip at the Benita discovery on Block I."

Matthias Offodile

January 19th, 2008, 02:14 PM

Ghana sees soccer feast lifting image and economy

http://img.iht.com/images/v3/logo_all.gif

By Kwasi Kpodo Reuters
Published: January 18, 2008

While political protests blight Kenya, Ghana will polish its image as a tourism and investment destination when it hosts the 2008 African Nations Cup soccer finals starting on Sunday.

Staging Africa's most prestigious sporting event will cast a positive international spotlight on the small but stable West African state when much of the world's poorest continent is still convulsed by conflict, disease and poverty.

Organisers hope the event will also shower as much as $1 billion (510 million pounds) on Ghana's fast-growing economy, mostly through the tourism, service and advertising sectors but also trickling down to taxi drivers and street vendors selling food and trinkets.

"Almost everybody, every community is benefiting," Ghana's Finance Minister Kwadwo Baah-Wiredu said in an interview with Reuters in London this week.

He said the country, which has hosted the African Nations Cup finals three times and won four times, would try to use the income to generate more economic activity and prepare to stage even more prestigious international events.

Ghana would bid in coming decades to host the African Games, the Commonwealth Games, the Olympics and the World Cup, he said.

"We are now in the spotlight of the world -- it's a rare image-building opportunity," said Fred Pappoe, vice-chairman of the Ghana Football Association (GFA).

He described the three-week tournament, which will be played in the capital and three other venues, as a "massive feast" for soccer fans and ordinary Ghanaians.

Excited crowds are already filling the streets of Accra, Kumasi, Sekondi and Tamale, many of them youthful souvenir sellers anxious to make a quick buck by hawking an array of soccer jerseys, T-shirts, mugs and key-rings.

Buildings across the country, from government offices to shacks in the shantytowns, have sprouted Ghana's red, gold and green flag with its distinctive black star as Ghanaians hope their "Black Stars" team can win the Cup for a fifth time.

TIDE OF CONFIDENCE

With Kenya, East Africa's biggest economy, gripped by unrest, Ghana in the west is riding a tide of confidence and optimism after celebrating the 50th anniversary of its independence last year and hosting an African Union heads of state summit in July.

Prospects for economic growth -- forecast at 7 percent for 2008 -- have been buoyed by an expected strong cocoa harvest in the world's No. 2 grower and high prices for gold in Africa's second biggest producer. Ghana also looks to join the club of African oil producers after an offshore discovery last year.

A highly successful $750 million debut Eurobond issue in 2007, more than four times oversubscribed, put Ghana even more firmly on the radar of emerging market investors.

Ghanaian hoteliers are rubbing their hands at the prospect of windfall earnings from a projected 1 million visitors during the Jan 20-Feb 10 African Nations Cup finals.

"Ghana and her tourist facilities are being well exposed to not only Africa, but the entire world ... we expect there will be follow-up visits," Bridget Katsriku, chief director at the Ministry of Tourism and Diasporan Relations, told Reuters.

Taxi drivers were also hoping for a bonanza.

"I see this as my chance to pay off the money (I owe) and own this car at last," said Tsatsu Nyamekeh, a 37-year-old taxi driver, who said he had been struggling to support his family and settle outstanding debts.

"Yes! The cabbie will make a little more money, there'll be brisk business for the prostitute, and so much demand for food, so generally, the economy will receive additional money," said leading Ghanaian economist Nii Moi Thompson.

The Tourism Ministry and the National AIDS Commission said they would collaborate to try to control the spread of HIV during the tournament. Anticipating a local sex trade boom, condoms would be distributed free in hotels in the venue cities.

Thompson questioned how big and far-reaching the expected boost to the economy would be, but he recognised it was an important showcase opportunity. "It's the best thing happening to the country right now," he said.

(Additional reporting by Carolyn Cohn in London; Editing by Pascal Fletcher)

Lydon

January 20th, 2008, 03:08 PM

Eskom pulls the plug on Southern Africa
Simpiwe Piliso and Suthentira Govender Business Times

19 January, 2008

Eskom has been forced to slash power supplies to neighbouring countries in a desperate bid to meet local demand.

The beleaguered utility, which generates 95% of its electricity for local use, exports surplus power to Botswana, Namibia and Zimbabwe — countries which will now no longer be fed from SA’s troubled grid.

Speaking to Business Times on Friday, Eskom’s chief executive Jacob Maroga said export power was reduced whenever SA faced a shortage — but added that local consumers needed to save as much as 20% of consumption to ease the problem.

Lesotho, Mozambique and Swaziland, which are also supplied by the parastatal, face partial cuts in their supply as the power company tries to alleviate the effect on SA consumers.

Ironically, Eskom is in talks with Mozambique and the Democratic Republic of Congo to buy electricity from power- generation projects the two countries have planned.

The Mozambican projects alone are expected to generate more than 2100MW, some of which Eskom will be able to acquire.

Maroga said reduced supplies to neighbouring countries depended on the severity of the crisis in South Africa — and he has faced a barrage from hundreds of thousands of angry South Africans who have been subjected to multiple blackouts this week.

Eskom has also warned that the blackouts will continue in the week ahead. South Africa’s peak demand has reached 36700MW, while Eskom is able to supply 38500W.

But Maroga explained that to effectively cope with this demand and for the power cuts to ease, Eskom has to shed 1500MW and build a reserve capacity.

This reserve, designed to cater for unexpected surges in demand, is internationally kept at about 15% of total demand. Eskom’s has been reduced to about 8%, which is insufficient for reliable supply.

Power cuts were introduced to prevent the system from crashing.

As part of its more than R720- billion plan to increase capacity over the long term, Eskom is in talks with two international nuclear power giants to boost the generation capacity at Koeberg. It is also planning to build new nuclear power stations.

Either France’s Areva or the US-based Westinghouse will start construction by 2010 and the first new station will be operational by 2016.

For now though, businesses are losing millions of rands, with some of them facing financial disaster.

The Killarney Mall in Johannesburg was hit by five power cuts between last Friday and Wednesday, and tenants lost more than 12 hours of trading.

Kathy Norton, the mall’s assistant manager, said the owners were looking at acquiring additional generators.

Mining companies, banking and retail groups, restaurants and shopping centres have already spent millions of rands on industrial generators to keep their operations running.

Deon Pohl, Absa’s IT facilities manager, said the bank now had more than 180 industrial generators as part of a massive roll- out that cost about R62-million.

“Since the first blackouts in the Western Cape in May 2006 we have embarked on a national roll-out of generators and Uninterrupted Power Supplies (UPS),” he said. “These are special devices that help in the event of power cuts and enable a branch to shut down its IT system without losing any data.”

But he was unable to say how much the power cuts had cost the bank so far, saying: “At this stage it is virtually impossible to measure.”

Nedbank, which also plans to acquire more generators, is spending about R385000 at each of its branches countrywide.

Discovery Health, which spent R30-million on generators and UPS units, puts the cost of running these at around R16000 for every hour the power is out.

First National Bank is spending R88-million on generators at its branches according to head of infrastructure and development, Kabelo Monchusi.

Federated Hospitality Association of SA chief executive Brett Duncan described the situation as “unacceptable” and a massive blow to tourism.

“The major problem for me is when hotels and restaurants are forced to close down, it’ll result in job losses,” said Duncan.

Richard Drinkrow, owner of Mainstream Refrigeration, said supermarkets were throwing out tons of ruined stock.

“When the power is out and they can’t get the refrigeration running, within about 25 minutes that stock has to be condemned,” he said.

Drinkrow’s business in the Western Cape has been operating around the clock dealing with a flood of maintenance contracts caused by the power cuts.

Africa’s largest food retailer, Shoprite , has generators that supply power for limited periods to keep fridges, freezers and pay points operating, but no baking or cooking can be done during power outages.

Pick n Pay’s director of property and operations, Izak Joubert, said the company’s generators ran a certain percentage of the store’s lighting and checkouts.

Milk Producers Organisation of SA chief executive Bertus de Jongh said that while many large-scale farmers had invested in generators to preserve their produce, smaller farmers would not be able not afford the added expense.

http://mybroadband.co.za/news/General/2572.html

Matthias Offodile

January 25th, 2008, 09:01 PM

Senegal boost energy supply

afrol News, 25 January 2008- The inauguration of a 67.5 megawatts power plant in Senegal's Sangalkam, a suburb in the capital Dakar has boost the country's struggle to battle energy blackout.

By November this year, Senegal is also expected to inaugurate a 160 mega watts power plant.

The CFA 45 billion Kounoune power plant was jointly financed by several financial institutions, including the African Development Bank, with the International Development Association (IDA) providing a partial risk guarantee while the Moroccan Bank for External Trade Capital played the role of a commercial broker.

The project, the first infrastructure project carried out by private sector player, will increase electricity production by 13%.

SENELEC will also prepare a CFA 520 billion investment programme for the period 2007-2015.

In his inaugural speech, Senegalese President Abdoulaye Wade described the new plant as "a classic example of a successful public-private partnership."

Wade invited private donors to invest in his country's development because it is endowed with all the necessary conditions for private capital investment.

He said the plant was not only a major step in the implementation of an ambitious investment plan to upgrade basic infrastructure and power-generating, but it also formed part of the major partnership projects.

President Wade said Senegal - a non oil producing nation - is also a victim of the severe oil crisis, which had negatively impact on its development in general. He said his government has taken several measures to address the energy crisis.

Senegalese government spent over Franc CFA 200 billion to subvent electricity for consumers during the last five years.

Matthias Offodile

January 26th, 2008, 12:58 PM

This message is a suprise to me and shows how secretive the oil industry sometimes is, it is said that the are investing the money into more oil exploration and will pursue the exploration of a huge discovery they have already made in 1966 (!!!). They will move into the highly promising but entirely underexplored deep-offshore region of Gabon now. (remember this is the place where Angola struck huge oil fields and where Brazil have annouced two mega discoveries lately!!!) They will also start with the exploration and production of natural gas in the coming years. $2 bn is a huge sum of money considering the fact that Gabon doesn´t play among the big oil producers, not even in Africa

Gabon : TOTAL va investir 2 milliards de dollars sur le champ Anguille

Publié le 25-01-2008 Source : Gaboneco.com

Le président Omar Bongo Ondimba a reçu le 25 janvier dernier à Libreville les responsables du groupe pétrolier TOTAL venus s’entretenir avec lui sur les perspectives d’investissement du groupe au Gabon.

C’est pour présenter au chef de l’Etat gabonais les perspectives d’investissement du groupe Total au Gabon que le directeur général chargé de l’exploration et de la production, Yves-Louis Darricarrère, a été reçu le 25 janvier dernier en audience au palais présidentiel.

Au cours de cette rencontre, le directeur général de TOTAL a décliné les ambitions du groupe pour l’année 2008 qui entend s’inscrire dans l’exploration et la production de nouveaux gisements mais également discuter avec Bongo Ondimba de ce secteur marqué par une forte flambée des prix sur la scène internationale.

« J’ai pu dire à M. le président de la République, que nous avions en fait décidé un nouveau projet de poursuite du développement du vieux champ d’Anguille qui est entré en production en 1966, et sur lequel nous allons investir dans les quatre mois qui viennent, 2 milliards de dollars pour le développer à nouveau » a déclaré le directeur général de Total à la sortie de l’audience.

L’exploitation de cet ancien gisement pétrolier devrait permettre à l’entreprise TOTAL de maintenir sa production afin de mieux aborder l’avenir dans ce secteur pétrolier qui reste cependant marqué par une hausse quotidienne des prix.

« Cela nous permet d’ailleurs de maintenir notre production dans les quatre et cinq mois qui viennent. Et puis nous voyons venir aussi, le renouveau de l’exploration en ce qui nous concerne, là aussi qui se traduit par un budget qui augmente à 50 millions de dollars, nous avons pris de nouveaux permis en Off-shore profonde, dont le but est en fait de déterminer le potentiel gazier du pays. Cela fait que les investissements que TOTAL financera et opèrera au Gabon seront doublé dans les cinq prochaines années», a affirmé Yves-Louis Darricarrère.

Matthias Offodile

January 29th, 2008, 10:35 PM

Tullow's Jubilee Development Will Cost $4B

by Suzi Carter Wednesday, January 23, 2008

Tullow Oil's recent offshore discovery in Ghana, called Jubilee, will cost about $4 billion to develop into an oil-producing field said Tom Hickey, Tullow's chief finance officer, according to AFX News.

Jubilee is reported to hold between 500 million and 1.3 billion barrels with 170 million barrels of recoverable resources and is Tullow's biggest discovery to date.

Tullow's 35-37% stake in the project means that its share in the $4 billion needed will be about $1.3 to $1.4 billion, $100 million of which will be invested this year. The remaining percentage in the project is held by Kosmos Energy and Anadarko Petroleum Corp.

http://www.rigzone.com/images/news/library/maps/3/4880.jpg
Jubilee Field

Once the field has been fully developed, it should produce about 150,000 barrels a day, according to Hickey.

This year, Tullow plans to drill seven wells to confirm the estimated resource potential and to better understand how to develop it. Depending on the outcome of this drilling, Jubilee could be on stream before 2012.

While Tullow tries to focus on Jubilee and Lake Albert, another key project, Hickey said that Tullow may sell some of its "less material" assets.

"Assets in which Tullow has small interests or 15-20 million boe discoveries will be candidates for selling," Hickey said.

Last year for example, Tullow sold off its 40% interest in an offshore oil block in Cameroon to the Hungarian oil group AMOL. Tullow's assets in Pakistan have also sparked some interest.

In response to speculations of takeover, Hickey stressed, "There are no predators looming on the horizon."

Tullow announced in an advance statement and operations update that it had a 13% growth in productions to 73,100 boepd in 2007.

http://www.rigzone.com/news/image_detail.asp?img_id=4880&a_id=55688

Matthias Offodile

February 4th, 2008, 09:01 PM

Rezidor plans to expand fast in Africa

29 January 2008
Janet Parker

THE Rezidor Hotel Group, one of the world’s largest and fastest-growing hotel companies, has aggressive expansion plans for Africa, which will see it open several new hotels in the next few years, three of them in SA.

Rezidor president and CEO Kurt Ritter said yesterday the group was strategically targeting 20 cities over the next 36 months, and that it aimed to have 50 hotels in Africa by 2015.

The hotel management group, which listed on the Stockholm Stock Exchange in 2006, operates the Radisson, Regent, Park Inn and Country Inns & Suites hotel brands. The group also has a licence agreement with Italian fashion house Missoni to develop and operate a lifestyle hotel brand, Hotel Missoni.

This year the group is due to open Radisson-branded hotels in Sandton, Port Elizabeth and Dakar, Senegal. In addition, this week it secured a site for a 192-room mid-market Park Inn in Sandton. The new hotel, on a prime site across the road from Gautrain’s Sandton station, is due to open in the first half of 2010.

Andrew McLachlan, Rezidor’s director for business development in Africa, said the Park Inn brand, launched in Berlin in 2003, was Rezidor’s fastest growing. There were 100 Park Inn hotels operating or being built in Africa, Europe and the Middle East.

“We plan aggressive growth in Africa with both the Radisson SAS and Park Inn brands, through individual projects and portfolio deals. Our focus is on management agreements for city hotels as well as resorts,” he said.

Ritter said hotel inventory in Africa was typically rather old, had been used a lot, and there was little competition in the market. There was enormous demand for hotel product on the continent, all of which provided myriad opportunities for Rezidor.

SA, in particular, was a promising destination due to the growth in leisure and business travellers and the tourist arrivals boom expected for the 2010 World Cup and afterwards.

[B]Rezidor was also investigating opportunities in Gabon, Mauritius, Seychelles, Botswana, Tanzania, Kenya, Uganda, Angola, Nigeria, Ghana, Morocco, Tunisia and Ethiopia.
:banana:
To that end McLachlan, who is responsible for the group’s growth on the continent and the Indian Ocean Islands, says Rezidor set up its business development office in SA nine months ago. In addition Rezidor signed a € 35m joint venture with four Nordic government funds to expand its presence in Africa.

“The partners have teamed up their intelligence and financial resources to set up Afrinord Hotel Investments to provide mezzanine financing or, in certain cases, secured loans to companies owning and developing hotel and resort projects in Africa,” McLachlan said.

“In conjunction with The Rezidor Hotel Group, Afrinord Hotel Investments will offer ... a combination of loan financing, technical assistance services, international hotel brand names and management services to several project owners.”

Afrinord’s first investment was in Lagos, Nigeria, where a new Radisson hotel is being built. The hotel is scheduled to open this year. :cheers:

Matthias Offodile

February 4th, 2008, 10:59 PM

A very good report about the new and emerging Ghana, a country that is often overlooked! It shows that Ghanaians are very keen on absorbing knowledge, it also lays the emphasis on education in Ghana.

http://www.dailymotion.com/video/x45pxq_ghana-le-pays-qui-reussit_news

Matthias Offodile

February 6th, 2008, 01:14 AM

A big up for Gabon here, this has something to do with social indicators and not with economic development but I don´t know where to put it so I decided to put it here.

The World Health Organisation is satisfied with the improvement made within a decade as far as the vaccination coverage (concerning all the known diseases that can be vaccinated against) of Gabon is concerned, it has improved from 60% a decade ago to slightly more than 90% today!

Gabon: Les efforts du Gabon en matière de santé récompensés par l’OMS

Libreville, 10 janvier (GABONEWS) – Promue le 28 décembre dernier aux fonctions de ministre de la Santé, de l’Hygiène publique, chargé de la Famille et de la Promotion de la femme, Angélique Ngoma, a effectué jeudi une bonne entrée en matière au sein de son nouveau département ministériel, en réceptionnant des mains de la directrice du Programme élargi de vaccination (PEV), Mme Angèle Dominique Badinga, le prix d’encouragement de l’Organisation mondiale de la santé (OMS), pour les efforts consentis par l’Etat gabonais en vue du renversement de la tendance du taux vaccinal (de 60% à plus de 90%) , au cours de cette dernière décennie, a constaté GABONEWS.

C’est au cours d’une modeste cérémonie limité aux personnels de son département ministériel qu’Angélique Ngoma, assisté du ministre délégué à la Santé chargé de l’Hygiène publique, a reçu le prix de l’OMS.

Le prix en soi est un symbole ayant une forme circulaire en matière argentée, au milieu duquel se trouve la carte de l’Afrique, symbolisant la couverture vaccinale sur le continent.

La ministre a, pour sa part remercié le chef de l’Etat ainsi que le gouvernement tout entier pour le souci permanent et leur engagement constant à offrir aux gabonais un mieux être.

Lydon

February 6th, 2008, 03:54 PM

Awesome =) Congrats to them!

Kenguy

February 6th, 2008, 10:42 PM

Rwanda opens stock exchange

Rwandan President Paul Kagame said it was a milestone
The central bank of Rwanda has launched its own securities exchange in the country's capital, Kigali.

Initially it will deal in corporate and treasury bonds, but the Bank says it will include other products such as shares as the operation develops.

Upon opening the Rwanda Capital Market, President Paul Kagame described it as a milestone for the nation.

The hope is that the exchange will aid the economy, which has yet to bounce back after the 1994 genocide.

"It's an important achievement which will provide the business community with a second option to financing that is long term and which will inevitably add great value to our economy," President Kagame said.

More than 800,000 people were killed and the country's infrastructure was destroyed in the civil war.

The securities exchange is being seen as a source of cheaper financing than that offered by commercial banks.

The central bank's governor, Francois Kanimba, said that at first the stock exchange would only be open to Rwandan companies.

Many businesses from the country's manufacturing, mining, tourism and real estate sectors should eventually be listed on the stock exchange, he envisaged.

In time, foreign companies will be allowed to enter, either to raise finance by listing in Rwanda or to buy shares.

Last week the bank issued treasury bonds worth more than $36m to support the stock exchange project.

Matthias Offodile

February 8th, 2008, 11:39 PM

Rwanda opens stock exchange

Woow, I have overlooked this completely. A big up for Rwanda!:cheers:

skipperBill

February 9th, 2008, 12:34 AM

^^Great news for Rwanda!! excelllent.

Matthias Offodile

February 9th, 2008, 12:49 PM

Ocean Rig wins $700-million offshore Ghana drilling contract

Offshore staff

STAVANGER, Norway -- Ocean Rig has received a Letter of Award from Tullow Oil Plc. for a three-year offshore Ghana development drilling contract. The contract value is approximately $700 million, including an additional 40 days of mobilization, according to Ocean Rig.

The contract can be extended by Tullow Oil with one or two years by Dec. 31, 2008, and is subject to final documentation. The rig will go directly from its current contract with ExxonMobil.

02/08/2008

DanteXavier

February 10th, 2008, 12:20 PM

Botswana growth up, to diversify bonds - finance minister

JOHANNESBURG (Reuters) - Botswana's economy expanded by 6.2 percent in the fiscal year to June 2007, while average inflation slowed to 7.1 percent last year, although price pressures were building, Finance Minister Baledzi Gaolathe said on Monday.

He also said in a budget speech a 19 percent jump in diamond exports helped widen the surplus on the current account and boost foreign reserves by $2.3 billion to $10.2 billion at the end of November.

"The improved real growth in 2006/07 national accounts year is attributed to both the mining and non-mining sectors, which recorded significant growth rates," Gaolathe said in a written copy of the speech.

Mining sector growth accelerated to 5.2 percent from 3.8 percent and the non-mining sector to 6.8 percent from 3.9 percent.

The diamond-rich southern African country has had one of the best performing economies in the region, enjoying average growth of around 8 percent over the last two decades.

Botswana, which has the highest sovereign ratings in Africa, was targeting 5 percent expansion a year over the next three years.

Gaolathe also said the government would replace its five-year bond due in March 2008 with a mix of maturities across the yield curve.

"Government will also continue to support the development of the capital market with a regular bond issuance programme," he said.

"This will include the introduction of six-month treasury bills, and a regular programme of issue and re-issue of bonds to build up and maintain a presence across the yield curve from six months to 12 years."

The Bank of Botswana would soon publish details of the programme.

Gaolathe forecast a budget deficit of 0.4 percent of an estimated GDP of 83.245 billion pula for 2008/09, although this did not include salary increases for public servants.

Including the expected pay rise would have pushed the deficit through 3 percent of GDP, and would instead be financed from the government's cash surplus, he said.

Gaolathe added diamond group Debswana's -- a joint venture between De Beers and the government -- production was expected to be about 761,000 carats lower in 2007 from the 34.4 million carats produced in 2006.

http://africa.reuters.com/business/news/usnBAN524003.html

Matthias Offodile

February 16th, 2008, 01:32 PM

...not directly something concerning business but noteworthy

Gabon-France Relations

French and Gabonese professors and administrative personel will alternate between the universities in Gabon and France (this applies to the seminars, the colloquia and research and development). Moreover, the entire administrative and teaching personnel of Gabonese universities will undergo intensive training in application of new technologies during classes,:cheers: documentary centres (des "centres documentaires") are being created ...the accord already existed for many years on a informal basis but has now been made official and entirely formalized.:cheers:

Gabon : La coopération franco-gabonaise pour la formation des enseignants

http://gaboneco.com/Pics/Actualite/1203115198-COOPERATION.jpg

Après avoir fonctionné de façon informelle pendant 2 ans, l’accord-cadre pour la coopération entre l’Institut universitaire de formation des maîtres (IUFM) d’Aix-Marseille, en France, et l’Ecole normale des instituteurs de Libreville (ENIL) pour la formation des enseignants a été signé par les deux parties le 6 février dernier à Libreville.:cheers:

L’accord cadre de coopération entre l’IUFM d’Aix-Marseille et l’ENIL pour les échanges bilatéraux entre les deux instituts de formation des enseignants a été signé le 6 février dernier à Libreville par les deux parties.

Le représentant de l’IUFM d’Aix-Marseille, Guy Oliveri et le directeur de l’ENIL, René Evoung Ondo, ont signé cet accord en présence du secrétaire général adjoint du ministère de l’Education nationale, Marcelle Lesbordes Ogombé et de l’inspecteur général de la pédagogie, Gertrude Boundono.

Cet accord de coopération prévoit des échanges bilatéraux des personnels enseignants pour compléter leurs formations universitaires et favoriser la formation au traitement de l’information et de la communication pour l’enseignement (TICE), une formation à l’utilisation des nouvelles technologies de l’information et la communication appliquée à l’enseignement.:cheers:

L’accord prévoit également une aide à la création et au développement des centres documentaires à Libreville. Les deux parties se sont également entendues pour développer des missions d’enseignants et de chercheurs pour des cours, des séminaires et des colloques. La coopération entre les deux instituts permettra également l’accueil à l’IUFM d’Aix-Marseille du personnel administratif de l’ENIL.:cheers:

Cette collaboration fonctionnait déjà de manière informelle depuis 2006. Dans ce cadre, des enseignants des écoles en formation à l’IUFM d’Aix-Marseille effectuent des stages au Gabon sous la direction des équipes pédagogiques gabonaises. En 2007, deux professeurs stagiaires français avaient été reçus à l’ENIL et cette année, deux autres effectuent leurs stages à l’école publique d’Akournam II.

Matthias Offodile

February 16th, 2008, 01:35 PM

He also said in a budget speech a 19 percent jump in diamond exports helped widen the surplus on the current account and boost foreign reserves by $2.3 billion to $10.2 billion at the end of November.

Wooooww, very good Botswana!:cheers::cheers::cheers:

Matthias Offodile

February 16th, 2008, 02:45 PM

After 20% of the debts have been cancelled and the money is reinvested/will be reinvested into the national parks by France, Gabon has almost paid back all of its debts to the Paris Club now (its biggest debtor by far). It once stood at 80% in the 90´s and has fallen to 48% of GDP two years back and - after the early repayment of 86% of the remaining debt - it must have gone down repeatedly NOW. It is said that this will boost the international credit rating of the country even more in the future. Remember that Gabon´s international credit rating before this massive and EARLY pay-back was already higher than for countries like Ghana or Senegal, for example. Well done!:cheers:

Le Gabon a remboursé par anticipation 86% de sa dette auprès du Club de Paris

(La Tribune 16/02/2008)

LIBREVILLE -- Le gouvernement gabonais s'est déclaré satisfait d'avoir remboursé en janvier dernier par anticipation 86% de sa dette auprès du Club de Paris.

"Le rachat anticipé de 86% de la dette Club de Paris permet désormais à notre pays de sortir de la tutelle de ce Club, de renforcer son crédit et son prestige international et d'avoir désormais une politique active de gestion de la dette", s'est régalé le gouvernement gabonais dans un communiqué du Conseil des ministres publié vendredi par le quotidien l'Union.

"Le conseil tient à remercier tous les pays qui ont soutenu le Gabon dans cette opération ", poursuit le communiqué.

Selon le communiqué, "tous ces résultats sont la conséquence, d'une part, du climat de paix et de stabilité qui règne sur le territoire gabonais, d'autre part, des effets positifs des réformes économiques et financières mises en oeuvre sous l'impulsion du président Omar Bongo Ondimba".

Le Gabon a remboursé cette dette sur des fonds propres.

Matthias Offodile

February 18th, 2008, 08:28 PM

Aureos set to launch $400m African fund

By Martin Arnold in London

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

Published: February 17 2008 22:35 | Last updated: February 17 2008 22:35

Aureos Capital, emerging markets private equity group, is due to launch a $400m Africa fund on Monday, underlining investors’ growing interest in the continent in spite of recent crises in Kenya and Sudan.

A specialist investor in small and medium-sized companies with regional growth potential, Aureos operates more than a dozen funds focused on different regions, such as south and central America, south-east Asia, and the Pacific islands.

The fund would make it one of the continent’s biggest private equity investors. Aureos already operates three funds on the continent, deploying a combined $140m in east, west and southern Africa. These are about 90 per cent invested.

Sev Vettivetpillai, chief executive of London-based Aureos Advisers, which provides advice to the funds, said that while the crisis in Kenya was “a problem for the east Africa region, it will not deter investors from the continent”.

He added: “Our strategy is always to expect this kind of problem – which is why we no longer do country funds, only regional funds, and we try to build regional companies.” The fund will invest $2m-$10m per company.

As an example, he cited Uganda Microfinance, a provider of savings and loans to low-income clients, in which Aureos invested $1m in 2004, allowing the company to expand into Kenya and neighbouring countries.

He said Aureos had invested about $15m in Kenyan companies. The worst-affected by the current crisis is the Porini safari group, which works with the Masai to promote eco-tourism, but has been hit by a drop in visitors.

Aureos, domiciled in Mauritius, aims to have raised $200m-$300m by June. Mr Vettivetpillai said half the money would come from its founding investors and the rest from the private sector.

Aureos would also seek money from Beijing’s $5bn China-Africa Development Fund, set upto provide economic assistance to Africa.

“Investors see the potential of what is the world’s second-most populous continent, with GDPs growing at an average rate of between 5.3 per cent and 5.5 per cent,” said Mr Vettivetpillai.

“Furthermore, despite the occasional setback, Africa’s political economy has improved so its engagement in global trade and investment flows has also strengthened,” he added.

Aureos was created in 2001 as a joint venture between CDC, the development capital organisation owned by the UK government, and the Norwegian Investment Fund for Developing Countries, with a mandate to invest in developing countries.

DanteXavier

February 18th, 2008, 08:48 PM

Total Will Invest $2 Billion in Anguille Oil Field Off Gabon

Feb. 13 (Bloomberg) -- Total SA, Europe's third-largest oil company, plans to invest $2 billion in redeveloping the mature Anguille oil field off Gabon.

``New technology has helped improve seismic knowledge'' of the deposit, Total's head of exploration and production Yves- Louis Darricarrere said today at a news conference in Paris. The three-year investment will start ``soon,'' he said.

In 2005, Total carried out a three-dimensional seismic study of the deposit, wholly owned by its subsidiary, Total Gabon. The field started production in 1966, according to the Paris-based company's Web site.

``The project would add more than 100 million barrels of proved and probable reserves and 30,000 barrels of oil per day in the first half of the next decade,'' Total said last July.

The company's output in Gabon was more than 50,000 barrels a day in 2006. Total agreed last year to renew a convention with the government on Total Gabon's concessions, operating licenses and crude transportation installations for 25 years.

http://www.bloomberg.com/apps/news?pid=20601116&sid=aXJKbAaTVg1c&refer=africa

DanteXavier

February 18th, 2008, 08:50 PM

China signs to lend Gabon $83 mln for hydro dam

LIBREVILLE (Reuters) - China will lend Gabon 37.2 billion CFA francs on concessionary terms to part-fund a hydroelectric dam scheme, the central African country's presidency said in a statement published on Saturday.

The "Grand Poubara" hydro scheme is linked to a $3 billion Chinese-led project to mine iron ore at Belinga, which is a key plank in government efforts to wean Gabon's middle-income economy away from dependence on declining oil production.

The loan deal, signed on Friday by Gabonese Finance Minister Paul Toungui and China's ambassador to Gabon, provided for a loan bearing 3 percent interest over a 20-year term, including a grace period of seven years.

Gabon held its debut $1 billion 10-year global bond issue last month with a coupon of 8.20 percent to raise funds to buy back old debts to the Paris club of sovereign creditors. The country is rated BB-minus by Fitch and Standard & Poor's.

Gabon is one of China's smaller suppliers of crude oil, but the central African country increased its crude shipments to the Asian country by 10.5 percent to nearly 887,000 tonnes in 2007 compared to the previous year, Chinese customs data show.

http://africa.reuters.com/business/news/usnBAN732858.html

Matthias Offodile

February 18th, 2008, 09:16 PM

Total Will Invest $2 Billion in Anguille Oil Field Off Gabon

It is not just the Anguille field but they will start exploration in the promising offshore region as well. This is where the bulk of the money will go into.

Gas exploration has also started last year by Perenco and Petrogabon.:cheers:

Here is another article concering the news...

Total Gabon entreprend des forages d’exploration et de développement en offshore

Date de parution : lundi 18 février 2008.

LIBREVILLE, 18 février (Infosplusgabon) - La Direction Générale de l’Environnement avait samedi annoncé à travers un communiqué qu’une étude d’impact sur l’environnement en rapport avec les forages d’exploration et de développement offshore des puits MRM-3 et MSSM-3, situés au sud de Port-Gentil, a été déposée auprès de ses services par Total Gabon, le 13 février dernier.

« Conformément aux dispositions de l’article 2 du décret 539/PR/MEFPN du 15 juillet 2005, réglementant les études d’impacts sur l’environnement, ce document est consultable pour avis dans les locaux de la, Direction Générale de l’Environnement pendant dix jours à compter de la date de publication du communiqué (...) », souligne le communiqué du ministère de l’Environnement.

Total Gabon est une société anonyme avec Conseil d’administration dotée d’un capital de 76,5 millions de dollars US dont le siège social se trouve à Port-Gentil, capitale économique et pétrolière du pays.

Total Gabon, filiale du Groupe TOTAL est le premier opérateur pétrolier du pays avec une trentaine de puits sur un domaine minier d’une vingtaine de km2. Sa production couvre plus de 50% du total.

Matthias Offodile

February 18th, 2008, 09:31 PM

This is news which is very good. Meat "made in Gabon".

A new mega cattle farm has been created and which is running very successfully. Gabon aims to reduce considerably its import of meat from overseas, so the cattle farm is part of the solution which will cover 35% of the country´s demand. This meat is biological meat and will be distributed to the supermarkets and restaurants nation-wide. The director says that no genetical supplements have been used. It is also said that the Ranch has ultra-modern slaughterhouses. Into the bargain, the meat will be cheaper than that which comes from South Africa but still more expensive than that from Cameroon because the Ranch meat is of a much higher quality.. Hopefully more of this will follow in the future.

Gabon : La viande bovine "made in Gabon" sur le marché

Le Ranch Nyanga, propriété du groupe SIAT Gabon, a livré au marché gabonais sa première production de viande bovine biologique le 15 février dernier. Il s’agissait de la première phase expérimentale de la commercialisation de la viande bovine d’origine gabonaise, avec la livraison au supermarché Prix Import de Libreville de plus d’une carcasse de taurillon de 250 kilogrammes destinée à la vente.

Le Ranch du Groupe SIAT Gabon, situé dans la province de la Nyanga, a livré le 15 février dernier au supermarché Prix Import de Libreville sa première production de viande bovine pour le marché gabonais. Il s’agissait d’une carcasse de taurillon de 250 kilogrammes qui représentait la première phase expérimentale de la commercialisation de la viande bovine « made in Gabon ».

Construit en 1979 par l’Etat gabonais pour assurer la consommation de la viande bovine produite à l’échelle nationale, le Ranch Nyanga a ensuite été racheté par la section gabonaise de la société d’investissement pour l’agriculture tropicale (SIAT Gabon).

Le directeur d’élevage du Ranch, le docteur vétérinaire Mostin Laurent, a expliqué que la qualité de cette viande biologique provient de l’absence totale d’hormone et d’aliments concentrés dans l’alimentation du bétail.:cheers: Le cheptel présente des bêtes de type N’dama qui sont réputées pour leur trypanotolérance, qui se définit comme la capacité relative d’un animal à limiter le développement de parasites et leurs effets pathologiques, notamment l’anémie.

Le Ranch pratique un élevage extensif basé sur la rotation des pâturages, la distribution régulière de sel et d’oligoéléments et un suivi de la reproduction. L'élevage compte déjà une centaine de taurillons qui devrait être abattue dans l’abattoir ultra-moderne de Tchibanga et commercialisée sur le marché national. La viande est non congelé car l’abattoir de Tchibanga utilise des méthodes d’abattage à la chambre frigorifique, ce qui permet à l’animal abattu le mercredi d’arriver en carcasse à Libreville le jeudi et d’être vendu le vendredi.

L’objectif visé par le Ranch Nyanga du Groupe SIAT Gabon est d’atteindre d’ici 2015 un cheptel de 20.000 têtes de bétail, pour une capacité totale estimée à 25.000 têtes. Les prévisions pour cette échéance portent la production de viande bovine biologique à 4000 carcasses de taurillons par an pour le marché nationale, ce qui couvrirait 35% de la demande locale.

Les concurrents de SIAT Gabon sur ce marché sont essentiellement l’Afrique du Sud et le Cameroun. Le docteur Mostin assure que la viande biologique de Tchibanga est 15% à 20% moins chère que la viande qui arrive d’Afrique du Sud. En revanche, cette viande gabonaise restera plus chère que la viande camerounaise en raison de sa meilleure qualité et de sa traçabilité.

L’objectif à terme serait la transformation locale des carcasses pour en tirer toute la valeur ajoutée avec la mise en place d’un département de coupe dans le nouvel abattoir qui sera édifié sur place. En gagnant des parts de marché sur la viande congelée importée, l’approvisionnement des commerces et restaurants gabonais en viande bovine biologique locale permettrait à terme et de manière progressive de limiter la dépendance du Gabon dans ce segment du marché.

Matthias Offodile

February 18th, 2008, 09:52 PM

Cape Verde Economy: Poor-country status is left behind

By David White

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

Published: November 13 2007 07:55 | Last updated: November 13 2007 07:55

The category of “the world’s least developed countries” is a club that is hard to get out of. Since the grouping was first defined by the United Nations in 1971, only diamond-rich Botswana has managed to graduate from it until now.

Come next year, Cape Verde, which joined the poorest group in the wake of independence from Portugal three decades ago, will also cease to be classified among the 50 LDCs.

This change of status – an accolade that carries with it some potential costs – coincides with other significant milestones for Cape Verde’s small economy.

Growth last year, previously estimated by the International Monetary Fund at 6.5 per cent, has been revised sharply upwards to 10.8 per cent.

For the first time, according to José Brito, minister of economy, growth and competitiveness, foreign investment brought in more than development assistance.

Revenues from tourism, the sector in which the country now vests its hopes, also surged ahead of the other traditional pillar of economic survival, remittances sent by Cape Verdeans working abroad.

Mr Brito adds to this a further first-time achievement – a surplus for the government’s operating budget.

But while Cape Verde’s annual per capita income has risen to more than $2,000, making it on paper the most prosperous country of the Economic Community of West African States (Ecowas), it still has an official poverty rate of 37 per cent and remains heavily dependant on grants and loan aid, running at about 10 per cent of gross domestic product.

The official ending of its classification as an LDC risks reducing its access to soft terms and preferential treatment from its partners.

The country lacks the means to finance the large-scale investments needed to bring energy and other basic infrastructure up to scratch. Privatisation has not yet yielded a solution, since the mainly Portuguese companies involved as partners have failed to produce the scale of investment required.

Electra, the power and water company was privatised in 1999, but the majority consortium formed by the EDP energy group and Aguas de Portugal subsequently pulled back. The TACV airline is being pruned in preparation for a sell-off and further privatisations are being considered, including the country’s ports.

“The hope is to reduce aid dependency, even if we know it can take some time,” says Mr Brito.

Project aid, he argues, is too slow in materialising and out of sync with the timetable of investment decisions. “When the aid comes three or four years after the requirement, it is too late, because your problem has already changed.”

Assistance from the EU and other donors is increasingly being channelled into direct budget support, giving the government more leeway for prompt action.

The revised GDP estimate means the government’s aim of achieving double-digit growth by the end of the legislative term in 2011 has been reached ahead of time, but the expectation for this year is more in line with the previous rate of 6-7 per cent. Mr Brito says the target is a sustainable growth rate of 7 or 8 per cent.

The recent spurt, attributed to a combination of tourist-related foreign investment and strong domestic demand, has come without loss of control over prices.

After moving to more than 5 per cent, pushed up by higher costs for imported fuel and cereals, annual inflation has since dropped back below that level.

But growth has created other imbalances, notably a soaring deficit in merchandise trade. The deficit amounted to almost 40 per cent of GDP last year and rose again in the first three quarters of this year. With construction activity continuing to draw in more imports, Mr Brito admits to concern about how to keep the trade gap at a manageable size.

The country has, however, managed to build up foreign exchange reserves above target levels to about $370m.

One of the few west African countries not considered for relief under the Highly Indebted Poor Countries scheme, Cape Verde has to grapple with the cost of servicing foreign debt, mainly with multilateral agencies and totalling about $565m at the end of last year.

“This is not just,” says Mr Brito, arguing that it is being penalised for not incurring excessive debts. The overall public debt burden, he adds, has been brought down to 65 per cent of GDP compared with 80 per cent in 2003.

The government aims at having figures within the EU’s Maastricht treaty guidelines, with public debt at 60 per cent and a budget deficit of no more than 3 per cent.

Being a small and dispersed group of islands imposes severe constraints. Although the population is mostly concentrated in two islands, infrastructure has to be replicated and there are no economies of scale to be obtained.

Unemployment is officially estimated at 18.3 per cent for last year, down from 24.3 per cent the year before. Successive dry years have eroded the small agricultural base.

Discussions are under way to exploit the country’s underused potential as a fisheries hub and there is talk of developing services other than tourism, including a financial centre.

But officials admit: “There is a long way to go.”

Copyright The Financial Times Limited 2008

Matthias Offodile

February 18th, 2008, 10:01 PM

It seems as if Cape Verde is saying bye bye to Africa. LOL

Cape Verde: International relations: An array of special partnerships

By Peter Wise

http://media.ft.com/cms/6f68385c-882a-11da-a25e-0000779e2340.gif

Published: November 13 2007 07:55 | Last updated: November 13 2007 07:55

When Cape Verdean and Chinese officials talk about building stronger ties, they can be taken, quite literally, at their word. China has to date supplied the islands with their main government building, their parliament, a national library, a conference hall, housing developments, a national monument, an auditorium and the country’s first dam.

Victor Borges, the foreign minister, visited China in May to put Cape Verde forward as a candidate for one of a handful of “special economic areas” Beijing plans to set up in Africa as regional distribution platforms for Chinese goods. The island of São Vicente, which has a tax-free zone and a deepwater port, is seen as the most likely location.

Cape Verde’s efforts to benefit from China’s growing engagement with Africa is one strand in a network of international relations created by a country shaped by its position on important trade routes and a history of interchange between civilisations.

Next week, Cape Verde is expected to achieve one of its main foreign policy goals with the formal approval of a special partnership agreement with the European Union. José Manuel Barroso, president of the European Commission, says the country possesses “specificities” that justify a special relationship that he believes will strengthen Europe’s ties with Africa as a whole.

The distinctive nature of the islands’ relations with Europe was also the motivation behind an initiative launched in 2005 by Mário Soares, Portugal’s former president and most distinguished elder statesman, for Cape Verde to be given full EU membership. This aspiration, supported by the Cape Verde government, has since been toned down, for the medium term at least, to the more modest goal of a special partnership. The agreement will add an extra dimension to relations with the EU, as defined by the 2000 Cotonou convention providing for preferential trade and aid links between Europe and 77 African, Caribbean and Pacific countries.

One of the main areas of co-operation will be aimed at making Cape Verde into what José Maria Neves, the prime minister, calls an “advanced security post” for Europe. The EU will help equip the country with the technical resources and know-how it lacks to combat drug and people trafficking in its maritime region and provide safeguards against money laundering. “Collaboration in this area will be beneficial to Cape Verde and Europe, which is the ultimate target for much of this organised crime,” says Mr Neves.

Security provided another international connection last year when Cape Verde supplied the venue for Nato’s first military exercise in Africa. “Steadfast Jaguar” involved 7,000 European and US troops in two weeks of manoeuvres designed as a drill for Nato’s new rapid response force. Cape Verde believes a co-operative partnership with Nato, similar to those the alliance has with Morocco, Egypt and Algeria, would further help promote security and safety in the region.

As a special EU partner, Cape Verde hopes to attract more European aid to support infrastructure development. EU countries, led by Portugal, Luxembourg and the Netherlands, its biggest donors, followed by the European Commission.

Josep Coll, head of the EU delegation in Cape Verde, says the special partnership will involve adapting the country’s technical standards and business regulations to make them fully compatible with EU norms.

Brussels will also help the islands combat poverty, upgrade information systems and improve regional integration, a crucial area for a country spread over nine populated islands with sharply differing levels of development. About half the population lives on the main island of Santiago – a quarter in the capital, Praia.“ Decentralisation is a big challenge for an archipelago like Cape Verde,” says a foreign official. “You cannot delegate authority when the capacities are not there.”

Cape Verde’s development has benefited from strong support from United Nations agencies, which will next year see the islands officially graduate from the group of the world’s least developed countries (LDCs) as defined by the UN.

At its own request, Cape Verde was also selected as the first pilot country for the One UN programme, an initiative aimed at streamlining and rationalising the work of UN agencies in developing countries, ensuring that they work more closely together to improve their overall effectiveness.

From January 2006 four UN agencies began working through one office with a single programme, budget and representative. This was expanded to all UN agencies from the beginning of this year.

Patricia de Mowbray, the UN’s resident co-ordinator, says the UN’s main focus is to help Cape Verde meet challenges involved in moving out of the LDC group and to help keep it on course to achieve the UN’s millennium goals, an agreed set of progress targets, by 2015.

Before it graduates to medium-developed country status in 2008, Cape Verde hopes to secure accession to the World Trade Organisation after more than seven years of tough negotiations.:cheers:

Unlike most African countries, Cape Verde chose not to join the WTO in the two years after it was founded in 1995 and has since had to contend with increasingly demanding membership criteria.

Copyright The Financial Times Limited 2008

Matthias Offodile

February 21st, 2008, 11:31 AM

Cameroon to grow more

Jan 18 2008 2:38PM
Yaounde - Cameroon's economic growth could rise to 5.8% in 2008 if budgetary resources freed by debt relief are well managed, the governor of the Bank of Central African States (BEAC), Philibert Andzembe, said on Thursday.

Andzembe said Cameroon's qualification for debt relief from multilateral and bilateral partners under the heavily indebted poor countries (HIPC) scheme in 2006 had made available large amounts of additional revenues.

"If these resources are properly utilised, we see Cameroon's economy growing by 5.8% in 2008, up from 3.5% in 2007," he told reporters after meeting with Cameroonian President Paul Biya.

Benefit from petrol prices

Cameroon produces around 90 000 barrels of oil a day - roughly half its peak output in the mid-1980s - and is benefitting from record international petroleum prices. It also grows considerable amounts of coffee, cocoa and palm oil.

The BEAC is the central bank for the six countries that make up Central Africa Economic and Monetary Community (Cemac): Cameroon, Central African Republic, Chad, Congo-Brazzaville, Equatorial Guinea and Gabon.

The regional central bank has forecast that growth in Cemac will rise to 6.2% this year, versus 4.5% in 2007.

- Reuters

GregPz

February 21st, 2008, 12:59 PM

Huge increase in foreign investment in Mozambique

Mozambique says attracts record $8 bln FDI in 2007
Fri 15 Feb 2008, 16:27 GMT

MAPUTO, Feb 15 (Reuters) - Mozambique attracted foreign investment projects worth a record $8 billion in 2007, a sharp rise on the $800 million inflows recorded in 2006, official data showed on Friday.

The Investment Promotion Centre (CPI) said 192 projects were approved last year, including investments in raw materials, industry, agriculture and agro-industry, and tourism.

Mozambique was one of the poorest nations in the world at the end of a 17-year civil war in 1992, but it has had one of the fastest growing economies in southern African in the past decade.

It hopes to grow its agriculture-based economy by seven percent in 2008 and keep inflation in single digits, after expansion of 7.5 percent in 2007. (Reporting by Charles Mangwiro, editing by Gordon Bell and Ron Askew)

© Reuters 2008. All Rights Reserved.

a_bondima

February 23rd, 2008, 07:26 AM

cameroon to start exporting iron ore in 2011

Posted by africanpress on February 22, 2008
api-correspondent-tansa-musa.jpg
<By Tansa Musa
YAOUNDE. The Cameroon Iron Ore Company (CamIron), controlled by Australia’s Sundance Resources, will export iron ore from its $2.46 billion Mbalam iron ore project by 2011, its general manager said on Thursday.
Roger Bogne said feasibility studies and environmental assessments will be submitted before the end of February, and the company should reach a memorandum of understanding (MOU) with the government by March, paving the way for Cameroon to issue an exploitation permit.
“We plan to start constructing project infrastructure by the beginning of next year and I can assure you that the first shipment to external markets of iron ore exploited in Cameroon will take place in 2011,” Bogne said in an interview with API. “The project is well on course, there are no hitches.”
Officials at Cameroon’s Ministry of Mines, Industries and Technological Development said, in anticipation of next month’s signing, that Cameroon had set up a task force to draft the memorandum of understanding which spells out the terms of iron exploitation.
CamIron was founded in 2005 to develop an area of 875 square km at Mbalam, 300 km from Yaounde in southeastern Cameroon. In 2006, Australian iron ore miner Sundance Resources Limited acquired 90 percent of its shares.
The iron ore deposits were discovered between 1976 and 1984 by the United Nations Development Fund (UNDF) and the Canadian International Development Agency (CIDA). Cameroon’s Ministry of Mines, Industries and Technological Development estimates CamIron’s exploration area contains iron deposits of between 800 million and 1 billion tonnes, including 218 million tonnes of high grade ore.
Sundance said an October 2006 study indicated the area had the potential to be developed into a very large, low-cost producer of high grade ore.
“The government of Cameroon attaches great importance to this project … given its capacity to produce 35 million tonnes of iron ore a year over a period of 20 years,” Mines, Industries and Technological Development Minister Badel Ndinga Ndanga said last week, urging CamIron to press ahead quickly.
The Mbalam project involves the development of a mine, crushing and screening plant, and stockpiling facilities. A 470-km long railway line will be constructed to link Mbalam to the Atlantic coast at kribi, where a deep-sea export terminal will be developed to handle large ocean-going vessels.
This infrastructure is also expected to open the way into remote southeastern Cameroon for other investors and boost tourism in a region rich in wildlife, particularly western lowland gorillas.
The Mbalam area is part of an iron ore province in the Archean Congo Craton that spans three countries, including Cameroon, the Congo Republic and Gabon. The iron deposits of Gabon are best known and are centred on the deposits at Belinga. Previous evaluation in Gabon by Kumba Resources Ltd of South Africa in the Batoula/Boka Boka region, 140 km south of Mbalam and 50 km east of Belinga, indicated a resource of 850 million tonnes of 60% Fe.
According to Sundance, the resources within Cameroon are typical supergene hematite enrichments of the Archean banded iron formation protore which has been recrystallised to ferruginous quartzite or itabirite. They occur in a similar geological setting to large iron ore deposits mined in the past in Liberia, in neighbouring Gabon, and currently being evaluated in Guinea.
Work undertaken in the Mbalam area indicated hematite mineralisation extending over two kilometres along strike at widths of up to 600m but more commonly at 400m.
Published by Korir, API africanpress@getmail.no

Matthias Offodile

February 24th, 2008, 11:59 PM

France´s second largest hypermarket chain Géant-Casino enters Gabonese market:cheers:

Gabon: Mbolo et Géant Casino: le début d’une longue collaboration

Libreville, 19 Février 2008 (GABONEWS)- L’hypermarché Mbolo accueille un nouveau partenaire dans la commercialisation des produits cosmétiques et alimentaires. Il s’agit du groupe français Géant Casino qui compte approvisionner le magasin en produits alimentaires et cosmétiques, tout en lui apportant une assistance technique et commerciale. D’autres magasins du groupe Sodigab, tels que Score du centre ville et de Port-gentil devraient également accueillir les produits Casino, a appris GABONEWS.

Matthias Offodile

February 25th, 2008, 12:39 AM

South Korea - Cameroon Cooperation

CFA 500 billion for Cameroon’s Diamond

[25/02/2008]

Korea’s CNK Mining Co begins exploitation in Mobilong and Limokoali as from 2009.

The little localities of Mobilong and Limokoali near Yokadouma in the East province will henceforth make news in Cameroon following the confirmation of the existence of significant diamond reserve in the area by the Korean mining company, CNK Mining Co.

The delegation of the company, headed by its president general, Deuk-Gyun Oh, had a working session last Saturday, with the Minister of Industries, Mines and Technological Development, Badel Ndanga Ndinga during which they made a presentation of diamond potentials in south east Cameroon.

“From the previous geological and prospecting activities, huge diamond deposits were discovered in the Mobilong and Limokoali area”, Deuk-Gyun Oh, said in their report. “Diamond having been derived from primary source rock, Kimberlite pipe, occurs mostly in conglomerate of Precambrian age. So, conglomerate will be our first target for diamond mining”, he said. Geologists of the CNK Mining Co will equally try to find kimberlite pipes presently hidden by overlying Precambrian meta-sedimentary rocks, he said.

Saturday’s meeting was essentially aimed at understanding how feasible it was to exploit the diamond and how far the Koreans have gone in the project. “In March last year, a report was submitted to the Ministry of Industries, Mines and Technological Development on the results of the feasibility studies”, Deuk-Gyun Oh. On the basis of this, CNK Mining Co was authorized to proceed with the prospecting and exploitation investigation which constitutes the first phase of the operation. This phase ends in 2009 the same year that exploitation is expected to begin.

“The estimated diamond reserve in the area would be 736,000,000 cts and the CNK Mining Co has plans to invest 500 billion CFA Francs for the next 25 years”, Deuk-Gyun Oh Said. The company, he said, will hire 4,000 people as company members.

Minister Ndanga Ndinga was particularly satisfied and promised government support to the company.

Bond James Bond

February 25th, 2008, 08:15 AM

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080224005056&newsLang=en

Kosmos Energy Makes Second Oil Discovery Offshore Ghana
Successful Odum-1 Exploration Well Confirms Significant New Regional Oil Province

DALLAS--(BUSINESS WIRE)--Kosmos Energy announces today that the company has made a second significant oil discovery offshore the Republic of Ghana on the West Cape Three Points Block. The Odum-1 exploration well has confirmed another oil accumulation on the block based on the results of drilling, wireline logs and reservoir fluid samples. The Odum-1 well, which tested a different prospect than the company’s Mahogany-1 discovery well, has been suspended as a future development well.

The Odum-1 well encountered a gross oil column of 60 meters (197 feet), which consisted of high-quality stacked reservoir sandstones and net oil-bearing pay of 22 meters (72 feet). Samples recovered from the reservoir indicated an oil gravity of approximately 29 degrees API. The Odum-1 well, which was drilled in water depths of 955 meters (3,151 feet), reached a total depth of 3,386 meters (11,109 feet). The well is located approximately 13 kilometers east of the Mahogany-1 well and the Jubilee Field.

Kosmos and its block partners used the “Songa Saturn” drillship to drill the Odum-1 well. When operations on the Odum-1 well are completed, the “Songa Saturn” will drill a second appraisal well of the Jubilee Field as part of the company’s 2008 multi-well appraisal program. Kosmos and its partners conducted a high-resolution 3D seismic survey of 940 square kilometers (232,280 acres) over the Jubilee Field and adjacent areas in December 2007 following the company’s announcement of the Mahogany-1 oil discovery in mid-June 2007.

“The success of the Odum-1 well and its confirmation of a new, significant oil province in Ghana’s western offshore basin is another momentous event for the Republic of Ghana and Kosmos,” said James C. Musselman, Kosmos Chairman and Chief Executive Officer. “We are pleased that the second exploration well in our Ghana drilling program is another success. We look forward to continuing our work with the government and people of Ghana, as well as our block partners, to help develop and produce Ghana’s vital natural resources.”

This is the second exploration well drilled by Kosmos and its partners under the West Cape Three Points Block’s seven-year exploration agreement.

Kosmos is block operator and holds a 30.875% interest in the West Cape Three Points Block. Anadarko WCTP Company, an affiliate of Anadarko Petroleum Corporation (NYSE: APC), has a 30.875% interest; Tullow Ghana Limited, an affiliate of Tullow Oil plc (LSE: TLW), has a 22.896% interest; the E.O. Group Limited has a 3.5% interest; and Sabre Oil and Gas Limited has a 1.854% interest in the block. The Ghana National Petroleum Corporation (GNPC), which has a 10% participating interest in the project, will be carried through the exploration and development phases.

The West Cape Three Points Block comprises 1,761 square kilometers (435,200 acres) in water depths ranging from 50 meters to 1,800 meters. The Odum-1 well, situated in the Tano Basin, is located 51 kilometers from the Ghanaian coastline and 117 kilometers southwest of the port city of Takoradi. The Mahogany-1 discovery well is located 63 kilometers from the Ghanaian coastline. The oil discovery made by the Mahogany-1 exploration well, and confirmed by the Hyedua-1 well drilled by Tullow Oil on the Deepwater Tano Block, was renamed the Jubilee Field in December 2007.

Matthias Offodile

February 25th, 2008, 08:04 PM

IMF heaps praise on Mozambique

February 25, 2008

Maputo - Prudent fiscal and monetary policies during 2007 have kept inflation under control in Mozambique, the International Monetary Fund said in a statement on Monday.

"We congratulate the Mozambican authorities on their strong commitment to sound economic policies and for an impressive economic track record over the last years.

"Prudent fiscal and monetary policies during 2007 have kept inflation under control, albeit somewhat higher than programmed, due to high food and international oil prices," said the IMF.

The fund said that the extensive structural reforms in public financial management, with the implementation of a public financial administration system and efforts to improve the business environment, were key elements of an ambitious economic recovery programme.

During the same period, the country’s Gross Domestic Product growth averaged eight percent.

"We acknowledge that the country still faces major challenges.

"Despite the authorities' efforts, poverty levels are still high, and there is a need to develop policies towards employment generation and improvement of income distribution within the different regions of the country," said IMF.

The fund said it was encouraging the country to work towards reducing the cost of doing business and support the development of small and medium enterprises in the economy, and the diversification of the structure of the productive sector in Mozambique.

"Extending financial services and access to rural areas, and removing infrastructure bottlenecks, including by ensuring energy security, would be other important steps towards supporting high growth and significantly reducing poverty," said the IMF. - Sapa

Matthias Offodile

February 25th, 2008, 11:51 PM

Kosmos Energy Makes Second Oil Discovery Offshore Ghana

I am happy for Ghana,:banana: I overlooked this piece of news entirely!

Bond James Bond

February 26th, 2008, 12:45 AM

^
Here's some info someone on another internet forum gave me regarding this latest Ghana offshore find. He owns Tullow stock (Tullow is one of the partners in the project along with Kosmos) and this is what he said.

I own shares in Tullow Oil and the size of the Odum Target in Ghana was 70 Million bbls. So its a figure you can catalogue that amount for now. I agree offshore Ghana looks to be very intriguing with 8 more additional potential oil bearing structures on Tano Deep and West Cape Three Points blocks. The next prospect is Teak, a 200 MMBOO prospect to be drilled in Q4 2008. In the meantime the drilling operations will go back to appraise the Jubilee field.

Bond James Bond

February 26th, 2008, 01:02 AM

Here's a map of those 2 offshore blocks - Tano Deep and West Cape 3, plus also Tano Shallow. So, that guy is saying there are 9 total oil-bearing structures just in this one area, which seems to be a relatively small area straddling the Ivory Coast border.

http://ghana2008.files.wordpress.com/2007/06/tano-map.png

Would seem to suggest there might also be some oil offshore the Ivory Coast?

Matthias Offodile

February 26th, 2008, 08:21 PM

Tullow finds oil off Ghana

Offshore staff

LONDON -- Tullow Oil has made an oil discovery with the Odum-1 exploration well off Ghana in 955 m (3,133 ft) of water. The well, drilled to 3,387 m (11,112 ft) deep, encountered a gross oil column of 60 m (197 ft) and 22 m (72 ft) of net pay. Samples from the reservoir indicate an oil gravity of approximately 29° API.

Odum-1 will be completed and suspended as a future development well. The Songa Saturn drillship will move to Mahogany-2, the next appraisal well on the Jubilee field.

Meanwhile, due to persistent borehole instability, Tullow has decided to suspend the Ngassa-1 exploration well and re-drill it from an alternate location.

02/25/2008

Matthias Offodile

February 26th, 2008, 08:23 PM

Oando Buys Two Shell Nigeria Blocks For $625.7 Million

by Spencer Swartz Dow Jones Newswires Monday, February 25, 2008

Oando PLC, Nigeria's biggest energy firm, said Monday it has bought two Nigerian offshore oil licenses from Royal Dutch Shell PLC for $625.7 million and is in talks with two other foreign oil majors about possibly buying three more oil licenses.

The Shell asset sales, which were expected, give Oando 49.8% stakes in two blocks, the company said. Shell's decision to sell the blocks is aimed at strengthening the financial health of its Nigerian operations after losing a lot of onshore crude oil production and revenues the past two years to militant attacks on energy infrastructure.

Oando Chief Executive Wale Tinubu said the company, whose shares are traded on the Nigerian and Johannesburg exchanges, was in negotiations with another European oil major and one U.S. major about purchasing three more oil blocks.

"We are in talks with two other majors about buying these blocks. We hope to have something to announce in coming weeks or months," Tinubu told Dow Jones Newswires in an interview.

Tinubu said Oando, which is small with a market capitalization of around $350 million, was looking to raise $500 million in financing through a combination of debt and equity issuance to fund the acquisition of those additional blocks. He added that Oando wants to have that financing wrapped up before June.

In January, Oando took out a $200 million loan through Merrill Lynch to help buy Shell's two licenses.

The Shell asset sale has been privately endorsed by the Nigerian oil ministry, Nigerian energy officials say, although it must still gain approval from the government and from Agip, a unit of Italian oil company Eni SpA (E). Agip owns the remaining 50.2% in each block, Oando said.

Shell's decision to sell to Oando dovetails with the Nigerian government's desire to increase the role of Nigerian energy companies and banks in the country's energy sector.

The license disposals also reflect the increased pressure the Nigerian government is putting on foreign energy companies to fully utilize oil blocks they won in past licensing rounds. If block aren't utilized, the government has promised to strip companies of those licenses.

Copyright (c) 2008 Dow Jones & Company, Inc.

Matthias Offodile

March 1st, 2008, 02:11 PM

Gabon - Portugal Relations given a big boost. Portuguese foreign minister in Gabon for a couple of days.

TAP will open up new flights to Libreville from Lisbon soon and is very willing to invest in Gabon because of its stability (important and reliable anchor country in the Central african sub-region). Moreover, it is said that Portugal has strong links with Angola and that relations between Angola and Gabon are cordial, too.

Gabon : Le Portugal avance ses pions au Gabon

Après sa séance de travail avec son homologue gabonais, Laure Olga Gondjout, axéé sur la redynamisation de la coopération entre Libreville et Lisbonne, le ministre portugais des Affaires étrangères, Luis Filipé Marques Amado, a été reçu par le chef de l’Etat gabonais le 27 février pour faire le point sur la promotion des échanges bilatéraux envisagés entre les deux pays.

Arrivé sur le territoire gabonais le 26 février dernier, le chef de la diplomatie portugaise, Luis Filipé Marques Amado, a d’abord eu une séance de travail avec son homologue gabonais, Laure Olga Gondjout, avant de rendre compte des perspectives de renforcement des relations entre les deux pays au président Bongo Ondimba, lors d’une audience le 27 février dernier au palais présidentiel.

A cette occasion le diplomate portugais a présenté au chef de l’Etat gabonais les nouveaux pôles d'investissements que le Portugal entend développer au Gabon, notamment dans le domaine aérien avec l’implantation des compagnies aériennes portugaises au Gabon. Le Portugal a déjà lancé une campagne de prospection au Gabon afin d’identifier les chantiers prioritaires qui recevront les financements de Lisbonne.

Luis Filipé Marques Amado a déclaré au terme de l’audience : "je suis venu dire à monsieur le président notre attachement pour le Gabon. C’est l'opportunité de développer nos relations dans l'avenir, considérant le rôle que le Gabon joue dans la stabilité de la région, condition préalable au développement économique. Dans cette perspective, le fait que le Portugal ait une coopération très étroite avec des pays comme l'Angola, un voisin du Gabon avec lequel il a une bonne coopération, cela facilite aussi nos relations. Nos relations en politique, en commerce, en investissement et même en culture ne sont pas encore à leur dimension et je suis heureux que le chef de l'Etat gabonais attache du prix à leur développement. Nous avons l'intention de regarder la région sur le plan économique et nous souhaitons implanter les grandes entreprises portugaises à Libreville".

Le chef de la diplomatie portugaise a invité son homologue gabonais à Lisbonne pour une pour définir ensemble un agenda de coopérations, à la fois au plan bilatéral que régional. Cet agenda est appelé à donner une nouvelle impulsion aux relations diplomatiques et économiques entre les deux pays.

Pour rappel, à l’occasion d’une visite du président gabonais au Portugal en décembre 2001, les deux pays avaient signé des accords de coopérations concernant les domaines culturels, scientifiques et techniques. Par ailleurs, le groupe portugais SIBAE est déjà présent au Gabon dans la filière du bois à travers la société anonyme Placages Okoumé du Gabon (POGAB), qui exerce depuis 2001 et représente un investissement direct de 9 milliards de francs CFA.

Publié le 28-02-2008 Source : Gaboneco.com

Matthias Offodile

March 1st, 2008, 03:13 PM

Total Gabon Launches Anguille Field Redevelopment in Gabon

Thursday, February 28, 2008

Total subsidiary Total Gabon has begun redeveloping the Anguille Field in Gabon.

Anguille is located 20 kilometres offshore Port-Gentil, in a water depth of 30 metres in the Grand Anguille Marine concession. The concession was renewed in July 2007 for a further 25 years. Discovered in 1962, Anguille came on stream in 1966 and produced 7,500 barrels per day in 2007 prior to redevelopment.

The project will improve the oil recovery factor to 23% from 13% by increasing the number of drainage points, in particular in the northern part of the field, and by enhancing well productivity using hydraulic fracturing and massive waterflood.

Phase 1 of redevelopment is under way, leveraging existing facilities. Around a dozen wells will be drilled in 2007 and 2008, and the associated surface facilities will be debottlenecked.

Running from 2009 to 2011, Phase 2 entails installing new offshore infrastructure and decommissioning obsolete process units, building an onshore plant (power generation, fluid treatment, gas compression) and drilling an additional 30 or so wells.

The project will eliminate gas flaring on the field by 2011, as well as coastal discharges of production water.

Production is expected to increase from 2008, peaking at over 40,000 barrels per day in 2013-2014. As well, operating costs will be reduced by refocusing operations onshore in the future.

http://www.rigzone.com/images/news/library/maps/3/4466.gif

Here is a map concerning the field called "Anguille". The small green areas are those which are already explored, the red areas are where current and future exploration is on-going and the big orange areas are those for future exploration.

Matthias Offodile

March 1st, 2008, 03:20 PM

Nigeria - China Relations

Nigeria’s Yar’Adua in China for oil deals

29 February 2008

Dan Martin

Sapa-AFP

BEIJING — The presidents of resource- hungry China and oil-rich Nigeria met yesterday ahead of the planned signing of energy deals in Beijing’s latest overture to the country.

President Umaru Yar’Adua arrived in Beijing with a large delegation of Nigerian officials, including Petroleum Minister Odein Ajumogobia, as part of a four-day state visit to improve economic ties. Yar’Adua met China’s President Hu Jintao in Beijing yesterday. The countries’ trade has tripled in value since 2006, when China National Offshore Oil paid $2,7bn for a stake in Nigeria’s deepwater Akpo field.

According to the latest data from China’s commerce ministry, trade rose from $1bn in 2001 to $3,13bn in 2006.

“I’m confident that your current visit to China will further our practical co-operation in various fields and take our strategic co- operation to a new level,” Hu told the Nigerian leader in their meeting at the Great Hall of the People, the seat of power in China.

During talks, Hu proposed deepening political relations between the two countries while expanding economic and trade ties, especially in the energy realm, China Central Television said. The two countries should advance exchanges of personnel at all levels and work better to co-operate on international issues, Hu said.

Yar’Adua also was to meet Premier Wen Jiabao.

Ahead of the trip, Nigerian presidential spokesman Olusegun Adeniyi said the visit was aimed primarily at reinforcing economic co-operation, “particularly in the oil and gas sector”. He said the two sides would “sign agreements on energy-related matters.”

Ajumogobia was expected to co-sign energy deals.

Yar’Adua’s visit to China, his first since assuming the presidency last year and beating a court challenge to his legitimacy on Wednesday, underlines a deepening relationship between Beijing and Abuja that has been dominated by trade in oil.

Aside from oil deals, China has helped Nigeria build railways and hydroelectric dams, and launched a telecommunications satellite for it last year.

Chinese media last month also reported that state-controlled China Development Bank was in talks to buy a $5bn stake in Nigeria-based United Bank for Africa.

China’s Nigeria interests are part of a deeper push across Africa that has drawn criticism in the w est that Beijing is overlooking human rights and political abuses on the continent in its hunger for natural resources.

China-Africa trade is estimated to have increased tenfold to $55,5bn in 2006 compared to 1999, according to the most recent official Chinese figures.

China, which imports about 30% of its oil from Africa, insists both sides stand to gain and has consistently defended itself against the criticism.

“China has a responsible attitude towards its co-operation with Africa. We are devoted to establishing a mutually beneficial and win-win relationship and trying to promote peace and development there,” foreign ministry spokesman Liu Jianchao said last week.

“The co-operation between China and Africa is widely applauded by the African people.” One of China’s most controversial partnerships is with the government of Sudan, which is involved in a brutal civil war that the United Nations says has led to the deaths of more than 200000 people.

Some of the perils of China’s presence in Nigeria have been made clear in recent years, however, as Chinese oil and infrastructure workers have been targeted in abductions by separatists in the oil-rich Niger river delta.

You are to blame

March 3rd, 2008, 09:46 AM

Rwanda economy thriving as country moves past genocide By Shashank Bengali, McClatchy Newspapers
Sat Mar 1, 4:50 PM ET

KIGALI, Rwanda — When President Bush came here last month on his five-nation Africa tour, he paid a solemn visit to the site where 250,000 victims of the 1994 genocide are buried, laying a wreath and strolling quietly along a row of concrete slabs marking mass graves.

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But government officials here say Bush's more important act that day was something else: He signed a deal to promote bilateral U.S.-Rwandan investment.

Rwanda hasn't forgotten the genocide, but it's moving forward, and 14 years later this tiny central African nation boasts one of the most stable and rapidly expanding economies in the region. Poverty and illiteracy are declining, immunization rates are up, HIV and malaria have been dramatically curtailed, and new industries from coffee to information technology are experiencing sudden booms.

The country's rebirth under President Paul Kagame — a bookish former rebel leader— was noted last year by the Ibrahim Index, a scale that rates African countries on political and economic freedoms. It called Rwanda the most improved country over the past five years.

"After the genocide everyone was down, and there was a lot of confusion. Now we are on the right track," said Kainamura Issa, co-founder of Index, a local magazine that covers the burgeoning technology sector.

Under Kagame, the government has pumped money into the country's roads and electricity networks and slashed red tape on businesses in a bid to lure foreign investors. Since 1994, the country's economy has grown at a robust 6 percent clip annually.

Lured perhaps in part by its tragedy-to-triumph story, American corporate giants have been drawn to this tiny, hilly nation, where 8 million people are crammed into a space smaller than Maryland .

Starbucks and Costco have signed exclusive deals with Rwandan coffee growers to sell their smooth, aromatic beans in U.S. stores. Government officials say Microsoft has floated a plan to equip the country's Senate chamber so that lawmakers can draft and edit legislation electronically.

"There is a wave of enthusiasm right now for Rwanda ," said Josh Ruxin , a Columbia University public health professor who lives in Rwanda .

Rwanda's upward trajectory is belied by its sleepy-looking capital. Kigali , a city of about 1 million people, has the feel of a quiet small town, with orderly, tree-lined streets that meet at intersections where drivers use their turn signals more than their horns. Men hawking cell phone airtime run up and wave the scratch cards in people's faces, but they plead for a sale with their eyes, not their lungs.

The silence is subtle but unmistakable. It's as if everyone has a secret.

It's tempting to ascribe the feeling to the memory of the genocide, but many in Kigali say it has more to do with the current political climate.

To restore order after 1994— when Hutu militias slaughtered 800,000 Tutsis and moderate Hutus over 100 days— Kagame's Tutsi-led government assumed complete control.

Kagame has a reputation as a micro-manager, overseeing everything from the AIDS policy to something he has dubbed "Vision 2020," a high-minded if quixotic plan to turn this overwhelmingly rural nation into a regional hub for information technology.

More worryingly, say human rights groups, he has imposed strict laws over free speech to stop people from inciting ethnic hatred, and some journalists who have published critical stories have been beaten, jailed or driven into exile.

The U.S. State Department last year cited reports that Rwandan security forces engaged in extrajudicial killings and arbitrarily detained and arrested countless people, including street children, vagrants and Jehovah's Witnesses. But the department's annual human rights report also noted that police officials fired more than 70 officers for indiscipline and formed a unit within the police force to investigate citizen complaints of abuse and corruption.

"Significant human rights abuses occurred," the report concluded, "although there were important improvements in some areas."

Rwandan officials prefer to discuss the country's record on AIDS. Experts say the country has made a turnaround thanks to the capable management of donor funding, including more than $300 million from Bush's global anti-AIDS program. The plan has helped put 50,000 Rwandan AIDS patients on life-saving drugs, although an additional 25,000 still lack access.

Six years ago, the U.N. estimated that 8.9 percent of Rwandan adults were living with HIV; by last year that had fallen to 3 percent.

The changes are evident in a redbrick HIV clinic in Nyagasambu, perched on a verdant hillside a half-hour's drive from the capital, Kigali . The clinic was built by the Elizabeth Glaser Pediatric AIDS Foundation , a Washington D.C. -based charity, with Bush administration funds. Now dozens of HIV patients from the surrounding villages troop in for regular check-ups.

"Now we have the medicines we need; we have the lab equipment we need," said Theogene Ndayambaje, the clinic's assistant administrator. Motioning to a gaggle of brightly clad women waiting for their check-ups, he added, "Three years ago, they would not have lived."

Rwanda has also expanded access to primary health care in its 438 public health facilities around the country. Nearly all children have been immunized against basic diseases, among the best rates in Africa .

"In the next five years, it's conceivable there will essentially be universal access to health care," said Ruxin, the Columbia professor. "They still have a way to go, but that's astonishing."

As posted by Yaoo news

DanteXavier

March 3rd, 2008, 01:51 PM

Ghana: Kufuor Calls for Investment in Economy After Discovery of Oil

President J. A. Kufuor has called on investors in the oil and allied industries to invest in Ghana's economy which is poised for accelerated growth.

Speaking at the opening ceremony of the ' National Oil and Gas forum in Accra yesterday, he urged local stakeholders to position themselves to satisfy demands of the industry.

"Our tertiary institutions for example should reach out to the emerging industry in order to prepare and develop appropriate manpower for engagement," he added.

President Kufuor continued that the banking and the financial sector would be changed to develop appropriate products to support the industry, stressing that transportation, hospitality, legal and accounting services, and construction industries should all be readying themselves for the many opportunities that are bound to come as a result of the oil find.

He noted that Ghana would need the high expertise wherever it could be found, but in order not to perpetuate dependent expertise, engagement contracts should highlight technological transfer to local staff in the most efficient manner within the shortest possible time.

The President was emphatic at the conference that was meant to curb "the oil is a curse" slogan, that the oil industry must be effectively harnessed towards the achievement of immediate national goals of poverty reduction and the attainment of the middle income status by the year 2015.

He noted that in doing so, deliberate steps should be taken to develop in tandem with traditional sectors of the economy in order to avoid the creation of an oil dependent economy, as had happened elsewhere.

"Indeed with the advantage of the latecomer, the country should at all cost avoid such an experience," he reiterated.

President Kufuor stated that government would continue to consult widely over the coming months as it prepares an organic and comprehensive national oil and gas policy and master plan for the sector.

Meanwhile, Tullow Oil plc (Tullow) has announced a second oil find on the Odum-1 exploration well on the West Cape Three Points license offshore this week.

A release issued by the oil giant stated that the Odum-1, the second exploration well drill has discovered a commercial light oil accumulation based on the results of drilling, wire line logs and a sample of the reservoir fluid.

"The well, in water depths of 955 meters, has been drilled to a depth of 3,387 meters and has encountered a gross oil column of 60 meters and 22 meters of net pay. Samples recovered from the reservoir indicate an oil gravity of approximately 29 degrees API."The company stated.

It stated that the discovery was a stratigraphic trap in a Companion age fan system and opens a second new play fairway in the Tano Basin. Adding that further prospecting in this new Companion play had already been identified in both the West Cape Three Points and Deepwater Tano licenses.

The company said, following the completion of drilling operations on Odum-1, the well will be suspended as a future development well and the Songa Saturn drill ship will move to drill Mahogany-2, the next appraisal well on the Jubilee. "

While appraisal of the upside of Jubilee is ongoing, the field partnership is also working on plans for a phased development of the field. The Eirik Raude fifth generation semi-submersible has been contracted for a minimum of three years and is in a critical element in our plan to target first oil in 2010."

http://allafrica.com/stories/200802260735.html

Matthias Offodile

March 5th, 2008, 12:16 AM

Libya's $41-billion budget aims to share wealth

Salah Sarrar | Sirte, Libya
04 March 2008 03:19

Libya's Parliament passed a $41-billion budget for 2008 aimed at giving Libyans a direct share in oil wealth after leader Moammar Gadaffi said economic development was too slow, state media reported on Tuesday.

Many Libyans say they are still waiting to benefit from soaring oil revenues and rising foreign investment following Tripoli's 2003 abandonment of prohibited weapons programmes and subsequent return to the mainstream of international politics.

Gadaffi told the Parliament, also known as the General People's Congress (GPC), on Sunday that the estimated six million population should receive oil wealth directly because the government had failed to develop the economy quickly enough.

"The GPC issued a resolution ... regarding the general budget for this year for 49,47-billion dinars ($40,8-billion) during the financial year 2008 to spend this amount on the programme of distributing wealth and the objectives of the general budget," a parliamentary statement carried by state TV and radio said.

The statement said a committee composed of representatives of several institutions would be established to examine ways of giving Libyan families a share in state revenue.

The 2008 budget appeared to be a big increase on 2007.

The assembly, meeting in Gadaffi's home town of Sirte on Monday evening, did not give a figure for the 2007 budget but state media a year ago said the government of the North African country planned spending of 31-billion dinars in 2007.

Despite ownership of Africa's largest oil reserves, the state-dominated economy has long been enfeebled by international sanctions, old-fashioned centralised management, a primitive banking sector, corruption and red tape.

But hopes of change have risen with the revival of ties with Washington. In May 2006, the Bush administration said it would restore formal ties with Tripoli as a reward for Libya's scrapping a programme of mass destruction weapons.

The government said in November 2007 it planned to spend 150-billion dinars on public works including building schools and renewing water and sanitation systems over the next five years.

The International Monetary Fund (IMF) staff said in November 2007 that the economic outlook for Libya was bright but cautioned the government to contain government spending, especially when it came to public-sector wage hikes.

It said a large increase in spending had pushed inflation sharply higher from lows in the first half of 2007 to about 11% in the third quarter of that year.

It said it expected Libya's economy to expand 8,8% in 2008 after expected growth of 6,8% in 2007, buoyed by growth in both oil and non-oil sectors.

To try to ease budget pressures and stimulate the private sector, the government in January 2007 announced plans to lay off 400 000 people, or more than a third of its workforce. - Reuters

skipperBill

March 7th, 2008, 02:15 AM

wow..those discoveries in oil are truly exciting. I am very happy for
Ghana..this is a cause for celebration for Africa. :cheers:

Harkeb

March 10th, 2008, 10:07 PM

Look beyond Beijing for emerging market investment, says PwC
March 5, 2008

Hong Kong - China is set to replace the US as the world's largest economy by 2025, but other emerging markets such as Vietnam, Egypt and Nigeria might offer better growth opportunities for investors, says accountancy firm PricewaterhouseCoopers (PwC).

By 2050 China's economy will be 30 percent bigger than the US economy, PricewaterhouseCoopers predicts in a report entitled The World in 2050: Beyond the BRICs.

However, real economic growth in China between now and then will average 6.8 percent annually, lagging 9.8 percent growth in Vietnam and 8.5 percent in India.

The so-called BRIC economies - Brazil, Russia, India and China - will continue to offer investment opportunities, but so will markets like Nigeria, which is set to overtake South Africa as Africa's biggest economy by 2050, even though it is high risk, says the firm.

Development of the middle class in these fast-growing economies will present huge potential for foreign retailers, energy and utility companies, healthcare and media firms.

But mass-market manufacturers will continue to suffer from increased competition from China and new low-cost competitors such as Vietnam, the report says.

"Of course, retailers need to be savvy enough to identify the right business strategies and local partners for such overseas ventures," John Hawksworth, the head of macroeconomics at PricewaterhouseCoopers, said in a statement.

"This has not always been the case for overseas investments by retailers in the past, particularly in culturally unfamiliar territories such as China or India."

China is set to become the world's biggest consumer market after the US by 2020.

Brazil, meanwhile, could overtake Japan's economy by mid-century. Russia, Mexico and Indonesia by then will be potentially bigger economies than Germany and Britain, the report predicts.

It projects Brazil's economy will grow by 5.2 percent annually between now and 2050, while Mexico's economy will expand by 4.7 percent a year and Russia will average 4.3 percent growth.

DanteXavier

March 11th, 2008, 01:32 AM

Ghana: Country Attracts More U.S. Investors After Bush's Visit

Barely a fortnight after the visit of President George Bush of the United States of America (USA) to the country, a U.S Trade delegation including twelve companies is in the country to seek investment opportunities.

The delegation led by Assistant Secretary of Commerce , Israel Hernandez, together with top Executives of the 12 companies is in to seek partners, agents and distributors in the area of design, telecommunications law, medicine devices, pharmaceuticals and packaging.

The twelve companies are American Plastics Technologies, Crestcom International, Edwards Angell Palmer and Dodge, EquipXP, FEECO International, Green Energy Solution Technologies, Hybas International, Intertrade, Lockheed Martin, Praxis Med International, SSC Medical Instrumentations and Technology Solutions for Africa.

At the opening ceremony in Accra on Monday, the U.S Ambassador to Ghana, Pamela Bridgewater commended the government for the enabling economic environment which has made the country attractive to U.S investors.

According to her economic cooperation between both countries has grown stronger in recent years since Ghana is increasingly becoming a key commercial and financial gateway to West African for the U.S and other foreign companies.

"We see renewed vigor to develop Ghana's economy for the benefit of all Ghanaians. Such measures include poverty reduction, educational enhancement and business promotion," she said.

The Ambassador further said many Ghanaian businesses are making tremendous marks within the regional markets and this is serving as an example to its neighbors in the sub-region.

The Ambassador indicated that private companies represent the broadening scope of business-to-business relationships between Ghanaian and American firms and hoped such relationships would help boost further trade opportunities between both countries.

"A vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights," She added.

The Minister of Trade and Industry, Mr. Joe Baidoo-Ansah, was glad the flood gates of investment and trade have been opened by the visit of the U.S President.

According to him the economic cooperation between both countries has been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth Opportunity Act (AGOA).

The Minister indicated that currently the country is the sixth largest market in the sub-region and a major source of direct foreign investment for the U.S.

"However, given the present trend in globalization, countries must constantly seek new partnerships and linkages to remain competitive, traditional forms of relationships among nations need to be reappraised," he said.

The Assistant Secretary of Commerce, Israel Hernandez, called on the Ghanaian government to create a fair playing field for all investors who come into the country to do business.

He said with the current stable environment in Ghana many investors are likely to troop in and the onus is on government to create a fair environment for all who come into the country.

He said the delegation is in the country to invest in both Small and Medium Scale businesses as well as major companies and urged Ghanaian businesspersons to take advantage of their presence to create new business links.

http://allafrica.com/stories/200803070724.html

Matthias Offodile

March 14th, 2008, 12:40 AM

Gabon - South Africa Relations

South African entrepreneurs are looking for investment opportunities across Gabon for several days, a country that they consider safe and stable to invest into!

Gabon: Economie : Les hommes d’affaires Sud africains intéressés par le marché gabonais

Libreville, 13 mars (GABONEWS) – Une délégation des hommes d’affaires Sud africains en séjour au Gabon, à l’invitation du ministère gabonais du Commerce, du Développement industriel, chargé du Nepad, en collaboration avec l’agence pour la promotion des investissements privés (APIP) et la Chambre de Commerce, a eu des entretiens avec leurs homologues gabonais jeudi, à Libreville, dans le cadre d’une recherche de partenariat sur les affaires et les opportunités pouvant en découler, a constaté GABONEWS.

Dans son mot de bienvenue, le président de la Chambre de Commerce a présenté ce séjour en terre gabonaise comme une véritable opportunité à saisir dans la mesure où l’Afrique du Sud représente pour le continent, l’un des plus grands pôles de développement, au même titre que l’Occident, sans oublier la flexibilité de la législation gabonaise qui offre des opportunités d’affaires aux investissements étrangers.

Pour Joachin Boussamba Mapaga, les hommes d’affaires gabonais devront saisir cette occasion pour, non seulement échanger avec leurs homologues Sud africains, mais, mettre à profit ces différentes rencontres pour découvrir et s’informer sur les nouvelles découvertes en produits finis et semi finis que fabriquent les sociétés sud africaines.

De même, Jomo Khasu, l’ambassadeur d’Afrique du sud au Gabon qui a, dans son propos, rappelé les 14 accords en matière de développement qui avaient déjà été signés par son pays et le Gabon, a souhaité placer cette rencontre sous le signe d’une dynamisation des échanges commerciaux entre les deux parties.

Avant de présenter à l’assemblée les différentes sociétés présentes, le diplomate Sud africain a réaffirmé la facilité de déplacement qu’offrent mutuellement les deux pays à leurs ressortissants, par l’absence du visa d’entrée au pays de Nelson Mandela, pour un séjour ne dépassant pas 30 jours.

Le séjour des hommes d’affaires Sud africains qui s’étalera sur plusieurs jours leur permettra de sillonner l’arrière pays et prospecter les domaines propices à la réalisation de leurs projets.

GN/JM/DCD/08

Harkeb

March 15th, 2008, 11:39 AM

Oil spurts again in Madagascar
14/03/2008 20:09 - (SA)

Antananarivo - A private company in Madagascar said on Friday it had produced oil at an onshore pilot project in the north-west of the Indian Ocean island.

It was Madagascar's first production in 60 years and came at a time when record high oil prices and an easing of restrictions make Madagascar attractive for foreign companies.

"OMNIS (the government's Office of National Mines and Strategic Industries) and Madagascar Oil today announce the first oil production from the steam injection pilot project at the Tsimiroro heavy oil field," the Houston-based company said.

With an estimated 0.6 billion barrels of recoverable reserves, Tsimiroro is one of two heavy oil projects that Madagascar Oil is developing on the island.

"The observed rates are in alignment with our early views of productivity," Madagascar Oil general manager in Antananarivo, Alvaro Kempowsky, said.

"The company originally estimated in 2006 a potential rate of 1 000 barrels of oil per day for 10 wells producing from the whole reservoir section," Kempowsky said.

A single well was producing an initial flow rate of 65 barrels per day "of fluid" with a net 45 barrels of oil per day, and more steam injections were planned, the statement said.

The company says its other heavy oil project at Bemolanga, also in north-west Madagascar, is one of the largest undeveloped bitumen reserves in the world with an estimated 9.8 billion barrels of recoverable oil reserves.

The world's largest producer of vanilla, Madagascar, is ranked 143 out of 177 on the United Nation's 2007 Human Development Index, with an estimated 85% of its 20 million people living on less than $2 per day in 2005.

Madagascar has issued a total of 19 permits for onshore oil exploration, which stretch along the western coast, according to figures from last August.

Large companies, such as ExxonMobil, are also looking for oil and gas offshore, while an incipient mining boom in Madagascar is set to include nickel, cobalt, bauxite and ilmenite in the coming years.

Matthias Offodile

March 15th, 2008, 08:43 PM

VAALCO: Big Exploration, Development Plans for Gabon and North Sea

VAALCO Energy Thursday, March 13, 2008

VAALCO Energy's current exploration and development schedule includes up to seven wells to be drilled in Gabon, and the North Sea over the course of the next six to eighteen months.

"We hope to extend the size of the Ebouri field with a delineation well this summer, which could add approximately 24 million gross recoverable barrels to our reserve estimates," Gerry added. "We also anticipate drilling two new prospects offshore Gabon, and at least two prospects onshore in Gabon by year-end.

Each of the offshore prospects has gross reserve potential in excess of 50 million barrels, while the onshore targets range in potential from 10 to 20 million barrels."

Matthias Offodile

March 15th, 2008, 08:46 PM

Tullow outlines Ghana drilling program

Offshore staff

LONDON -- Tullow Oil has outlined its drilling program for Ghana.

In June, the company drilled the Mahogany-1 well on the West Cape Three Points block in the deepwater Tano basin, followed by the Hyedua-1 well on the adjacent Deepwater Tano block. Proven recoverable resources from the field are estimated at 170 MMbbl, while the ultimate upside potential is estimated to be in excess of 1 Bbbl.

Up to five appraisal wells are planned on the field in 2008 using two rigs. The company hopes to increase the proven resource base of the field and collect additional geological and engineering data to support development planning and activities. The first exploratory appraisal well, Mahogany-2, began in March.

Tullow has been designated as the field operator, with the support of the Government of Ghana. A phased development is planned with a first oil target of 2010. Screening studies indicate that the most suitable development scheme will involve an FPSO suited to fast-track development.

Tullow also plans to drill further exploration wells in the vicinity of its Jubilee discovery. The first well was drilled in February 2008 on the Odum prospect in the West Cape Three Points block. Further high-impact prospects have been identified in the deepwater region and at least two of these, Teak and Tweneboa, are expected to be drilled within the next 12 months. Each of these prospects have upside potential in excess of 0.5 Bbbl.

In addition to the deepwater program, Tullow is planning to drill its second well on the shallow water Tano license during 2008. The first well, drilled in September 2007, was unsuccessful and was plugged and abandoned. The second well, which will be drilled on the Ebony prospect, will target a geological play similar to the Odum discovery.

03/12/2008

ALL THE BEST FOR GHANA!!!:cheers:

You are to blame

March 16th, 2008, 09:02 AM

News from the Central African Repulic

Qatar company unveils projects in Central Africa

I.A.S. International (IAS), a Qatar-based investment company, announced the launch of more than 1 billion euro worth of projects in the Central African Republic (CAR). One of its prominent ventures will be the Cite Lumiere, the Central African region’s first Special Economic zone.
The launch took place on the occasion of the fifth anniversary of the accession of CAR President, Francois Bozize, and was attended by IAS Chairman, Issam Abu Issa along with 60 delegates of IAS business partners.
Abu Issa said: “This development represents a turnaround point for the CAR and region. It is our objective to create one of the first free zones in Central Africa, which we are confident will help CAR to become a future super hub and will be a catalyst for extensive economic growth and development. Investors from around the globe are becoming increasingly aware of the range of opportunities here and we are grateful to have the full support of President Bozize and his people in this ground-breaking venture.”
Francois Bozize, President of the Central African Republic, said: “Increasing direct foreign investment into Africa has brought us promising economic growth and a new era of sustainable development. This is now an economic turning point for the Central African region and we are honoured that Mr. Abu Issa recognizes the enormous potential our country can offer. We welcome the long-term commitment of IAS and look forward to the company’s invaluable contribution to the development of our economy.”
IAS has already invested in CAR including in gold and diamond, oil and gas exploration, timber and water plants. The latest project to be undertaken by IAS is the Cite Lumiere, the only Tax Exempt island in the Central African region, situated on the Oubangui River.
Foreign direct investment in Africa doubled to $36 billion between 2004 and 2006. Investors from the GCC, led by Saudi Arabia, Kuwait and Qatar, have injected billions of dollars in projects across the continent in a range of sectors, focusing primarily on infrastructure, telecoms, banking and tourism.

You are to blame

March 17th, 2008, 11:32 AM

Black middle class growing and spending

Edwin Naidu
March 16 2008 at 01:48PM

After breaking through the poverty barrier several years ago, South Africa's black middle class - the black diamonds - is starting to sparkle, according to the South African Advertising Research Foundation's all media and products (Amps) survey.

The black diamonds, credited with contributing to the buoyancy of South Africa's economy, have contributed to a new economic bloc that keeps getting bigger.

The survey, released this week, significantly found that the average monthly income has risen from R2 435 in 1994 to R5 870 last year, doubling to allow the black middle class greater spending power.

The splurge before the recent slowdown in the economy saw black South Africans fork out for homes, cars and luxury items such as computers, gaming consoles, DVD players and household appliances.

South Africa has almost three million black diamonds - some of whom grew out of poverty thanks to social-welfare grants that enabled them to run small businesses. The number of members of the black middle class went up last year from 185 000 to 322 000.

According to Amps, the average income for people in LSM 1 (living standards measure, group 1) was R100 and LSM 10 earners made more than R20 800 a month.

The survey covers the adult population of South Africa, with some exceptions. The living standards measure has become the most widely used marketing research tool in Southern Africa. It divides the population into 10 LSM groups. Adults are considered to be people 16 years and older.

The survey uses face-to-face, in-home interviews of thousands of people representative of the total population.

Apart from questions about the media, the survey asks a sample of about 21 000 people - from a population aged 16 and above of 31,1 million - about the ownership of motor vehicles, of a variety of large and small durable items, about the use of dozens of personal and household products, and about personal and household details.

The use of financial services, and personal activities such as holidays and shopping patterns, are covered and basic questions on Internet usage are included.

During the period surveyed, Amps found that people in LSM groups 7 and 8 have risen 45 percent whereas people in groups 9 and 10 shot up 21 percent, indicating improvement in individuals' financial circumstances.

Despite the country's power problems, the number of people with electricity at home has increased in from 68,7 percent in 1997 to 88,4 percent a year ago. But unemployment is at 28 percent.

The success of the black diamonds is also reflected in where they live. Most are in Gauteng (66 percent), followed by KwaZulu-Natal (12 percent), Eastern Cape (10 percent), Western Cape (8 percent) and Free State (3 percent).

Only 8 percent of the adult population is on the internet, but this rises to 40 percent in LSM groups 8 to 10.

The survey found that the number of people with a phone at home and a video machine has dropped whereas sales of DVD players have gone up. Significantly, more South Africans are reading, with newspaper penetration going up to 46.8 percent from 41,6 percent in the previous year.

The survey found that South Africans are spending more on alcohol, mineral water and fast foods. The survey confirmed that the black diamonds' taste for whisky is divided between Jack Daniels, Johnny Walker Black and Bells.

Fast-food outlet Kentucky Fried Chicken outstripped its rivals in popularity and market share.

Joko, according to Amps, is the country's most popular tea, favoured by 31 percent of the nation. Five Roses quenches the thirst of 24 percent of people.

On average, South Africans spent R3 116 on a cellphone, with Nokia out in front with 56 percent of the market, followed by Motorola, Samsung, LG and Sony Ericsson.

Coca-Cola is way out in front as the top brand, followed by Clover, Crosse & Blackwell mayonnaise, Simba and Ricoffy.

The number of South Africans acquiring ATM cards and savings accounts increased last year.

Ninety percent of the respondents in the Amps survey said they were proud to be South African and 84 percent of them looked forward to the future.

Just under 80 percent of the respondents said that not enough was being done to help the poor.

You are to blame

March 19th, 2008, 04:10 AM

Africa: Rising Incomes to Grow Private Health Sector
Business Daily (Nairobi)

18 March 2008

Steve Mbogo

The private healthcare industry is projected to grow steadily in the next eight years, driven by rising incomes and demand for services.

Research by global consulting firm McKinsey says the growth provides opportunities for investment in health care of up to Sh1.6 trillion by 2016.

Similar prospects are forecast for the region and Africa, backing the recent trend where Kenyan and South African health management organisations have started expansion in selected markets.

McKinsey forecasts that investments in the sector in Sub-Saharan Africa alone will reach at least Sh700 billion over the next decade. Already, two of Kenya's health management organizations (HMOs) have announced additional investments in their regional health care infrastructure.

Earlier this month, health care management organisation Resolution Health announced that it had embarked on implementation of its expansion plan with the launch of a subsidiary in Tanzania. The company also plans to open a branch in Uganda in the next 12 months.

Its competitor AAR Health Services also intends to inject Sh350 million to help improve services in Tanzania in the next five years and expand into other towns including Arusha and Mwanza.

The Kenyan-based company is already operating in Uganda and Rwanda where it also intends to increase its investments in future. In Kenya, Nigeria, Ethiopia and Uganda, about 40 per cent of the people in the lowest economic level receive healthcare from private providers.

Private healthcare is often preferred option because public service deliveries, though cheaper, suffer from limited resources and corruption. Private healthcare industry has also increasingly become the main driver of innovation in healthcare with countries not conducive to the private sector showing poorer health indicators.

"Private healthcare is key to improving health in Africa (despite) challenges like failure to increase access, limited resources, poor regulation and weak economies," said Dr Amit Thakker, the managing director of Amini Management, the health services management company.

According to McKinsey, sub-Sahara Africa's health care expenditures will more than double by 2016 to $35 billion (Sh2.2 trillion). The private sector will get 60 per cent of this amount or up top 75 per cent in countries receptive of the private sector.

To meet this demand, at least Sh1.6 trillion in total incremental investment is required by 2016 to finance physical assets such as hospitals and clinics and drug distribution centers Discovery Health managing director Douglas Machuki says massive investments in health care infrastructure is needed for expanding access, especially to the rual and low income groups.

Financing for more private sector beds in Kenya through Hospitals, nursing homes, rehabilitation centres, day care centres, chronic centres, drug and alcohol centres and cancer centres are other urgent needs.

"We need more private sector in-patient facilities in Kenya which offer quality services at an affordable price," said Dr Thakker.

Innovations will be needed to finance these areas as banks have shown reluctance to lend to social sectors like education and health. Low enrolment into schemes has also eroded opportunities for risk pooling and realisation of economies of scale in the sector.

Currently there are only 400,000 members in the private sector insurance plan and only 1.8 million members in the compulsory government National Health Insurance Fund (NHIF). Majority of Kenyans finance health needs from the pocket.

Matthias Offodile

March 20th, 2008, 01:26 PM

Qatar company unveils projects in Central Africa

Abu Issa said: “This development represents a turnaround point for the CAR and region. It is our objective to create one of the first free zones in Central Africa, which we are confident will help CAR to become a future super hub and will be a catalyst for extensive economic growth and development. Investors from around the globe are becoming increasingly aware of the range of opportunities here and we are grateful to have the full support of President Bozize and his people in this ground-breaking venture.”

Why do they choose the Central African republic for such a venture? There is no infrastructure to speak of...They should ahve opted for either Cameroon or Gabon every investor who think s of Central Africa thinks of Cameroon or gabon first

Well, this is good news for Central african republic but still incomprehensible from my point of view. $1 billion investment in the Central African Republic!!!

It is as if you have either Albania or Spain and Italy in front of your door step but you go for Albania. I can´t understand why they chose CAR:ohno:

Moreover, there are already economic free zones in Gabon and Cameroon that could easily be expanded why CAR?? is this a joke? The government is neither stable, don´t Qatari investors read the papers properly or check rankings?

Matthias Offodile

March 20th, 2008, 01:28 PM

Qatar company unveils projects in Central Africa

Abu Issa said: “This development represents a turnaround point for the CAR and region. It is our objective to create one of the first free zones in Central Africa, which we are confident will help CAR to become a future super hub and will be a catalyst for extensive economic growth and development. Investors from around the globe are becoming increasingly aware of the range of opportunities here and we are grateful to have the full support of President Bozize and his people in this ground-breaking venture.”

Why do they choose the Central African republic for such a venture? There is no infrastructure to speak of...They should have opted for either Cameroon or Gabon every investor who think s of Central Africa thinks of Cameroon or Gabon first

Well, this is good news for Central african republic but still incomprehensible from my point of view. $1 billion investment in the Central African Republic!!!

It is as if you have either Albania or Spain and Italy in front of your door step but you go for Albania. I can´t understand why they chose CAR:ohno:

Moreover, there are already economic free zones in Gabon and Cameroon that could easily be expanded so why CAR?? is this a joke? The government is neither stable nor..., don´t Qatari investors read the papers properly or check rankings?

The CAR is not investors first choice when they think of putting money into the subregion.:nuts:

Intoxication

March 21st, 2008, 02:36 AM

http://news.bbc.co.uk/nol/shared/spl/hi/pop_ups/07/africa_enl_1195060205/img/1.jpg

Intoxication

March 21st, 2008, 02:50 AM

GDP per capita

http://content.answers.com/main/content/wp/en/6/65/Africa_by_gdp.png

National GDP per capita ranges from wealthier states in the north and south to poorer states in the east. These figures from the 2002 World Bank are converted to US dollars.

Michaelda

March 21st, 2008, 03:00 AM

Why do they choose the Central African republic for such a venture? There is no infrastructure to speak of...They should have opted for either Cameroon or Gabon every investor who think s of Central Africa thinks of Cameroon or Gabon first

Well, this is good news for Central african republic but still incomprehensible from my point of view. $1 billion investment in the Central African Republic!!!

It is as if you have either Albania or Spain and Italy in front of your door step but you go for Albania. I can´t understand why they chose CAR:ohno:

Moreover, there are already economic free zones in Gabon and Cameroon that could easily be expanded so why CAR?? is this a joke? The government is neither stable nor..., don´t Qatari investors read the papers properly or check rankings?

The CAR is not investors first choice when they think of putting money into the subregion.:nuts:

albania or in this case CAR would give a greater return on investment

Michaelda

March 21st, 2008, 03:02 AM

Intoxication

March 21st, 2008, 03:25 AM

id like to see newer numbers. 6 years is a long time in africa's economic growth

Thats true for any developing region of the world.

Well here's one from 2006. Not that outdated. Only 1 year really, 2008 just started.

Agriculture in Africa, value added out of GDP

http://maps.grida.no/library/files/web_agriculture_in_africa_value_added_out_of_gdp_001.jpg

Matthias Offodile

March 21st, 2008, 06:41 PM

albania or in this case CAR would give a greater return on investment

Sure... but in the case of CAR it lacks all the preconditions that an investor should take into consideration before embarking upon an investment and in this case, it is an investment of higher magnitude ($1bn)

a_bondima

March 21st, 2008, 09:06 PM

Cameroon to Build Two New Power Plants Over Next Three Years

Cameroon to Build Two New Power Plants Over Next Three Years

By Pius Lukong

March 18 (Bloomberg) -- Cameroon, the world's fourth- biggest cocoa grower, will spend 145 billion Central African francs ($349 million) over the next three years building two new power plants, said Prime Minister Ephraim Inoni.

``We need to render our economy more competitive and sustainable by boosting industrial development and this can't succeed without adequate energy supply,'' Inoni told reporters yesterday in Yassa-Dibamba, 50 kilometers (31 miles) east of the commercial capital of Douala.

The central African nation will spend 52 billion francs building a thermal facility at Yassa-Dibamba that will use either heavy fuel oil or gas, Inoni said. The plant will add 86 megawatts to the national grid from January 2009.

AES Sonel, Cameroon's only electricity producer, has the capacity to generate 933 megawatts of electricity, 721 megawatts of which is hydropower and the rest thermal. Current demand is more than 1,000 megawatts. The country plans to more than double output to 2,000 megawatts by 2015.

``The demand for energy in Cameroon increases by 6 percent every year and 95 percent of the supply depends on hydroelectric power, which takes time to build,'' Jean-David Bile, general manager of AES Sonel, told reporters. ``By constructing the Yassa-Dibamba thermal station, we are giving a quicker solution to the problem.''

Cameroon will also spend 93 billion CFA francs building a gas-fired plant at Kribi, 400 kilometers south of the capital, Yaounde. The plant will provide an additional 152 megawatts to the national grid, Bile said.

Cameroon ranks behind Ivory Coast, Ghana and Indonesia as the world's biggest cocoa grower.

AES Sonel is a unit of AES Corp., the U.S.-based power producer with operations in more than two dozen countries.

To contact the reporter on this story: Pius Lukong in Yaounde via Johannesburg at pmrichardson@bloomberg.net.
Last Updated: March 18, 2008 06:18 EDT

Matthias Offodile

March 21st, 2008, 11:08 PM

Index taps Africa’s growing wealth

By Sophia Grene

Published: March 18 2008 04:06 | Last updated: March 18 2008 04:06

Africa, particularly sub-Saharan Africa, has for decades been thought of as, at best, a volatile investment opportunity with the glamour and extreme risk of diamond mines.

Now a different story is being told, as Ayo Salami, a former lecturer at London’s Cass Business School, suggests the continent is finally reaping the benefits of painful institutional reform in the 1980s and 1990s.

The theoretical background is a model by Olivier Blanchard, professor of economics at the Massachussets Institute of Technology, in which he points out that the growth of the private sector does not make up for the collapse of the public sector for a considerable time.

Africa is now on the upturn, according to Mr Salami, who points to the gradually widening gap between population growth and growth of economic output across the continent as a whole. This means gross domestic product per person is increasing.

Some analysts attribute this to demand for natural resources from China, which has boosted income in several African countries. Mr Salami disagrees, though he accepts that Chinese investment has helped growth in some places. “The commodities story is fine, we’ll take it while it’s there, but it’s not the central thesis.”

To take advantage of this growing prosperity, Mr Salami has launched the Duet Victoire Africa Index. The name is a little misleading: this is a fund that tracks a proprietary index of the largest stocks across sub-Saharan Africa outside of South Africa. Mr Salami designed the index, which includes all companies in the region with a market capitalisation of more than $250m that meet a minimum liquidity requirement.

“This is designed to offer low-cost access to the growth of the region,” says Mr Salami. The product is run as a joint venture between his company, the African Business Research Institute, and alternative asset manager Duet Group.

Many investors looking for high returns regard frontier markets as an ideal opportunity for active management, assuming there will be inefficiencies in an underdeveloped market they can exploit. Mr Salami thinks this is self-deluding.

“People still sell the snake oil that you can beat the index in emerging markets, but the empirical evidence is very strong that, just as you can’t beat the market in developed markets, it’s the same in Africa,” he says.

He explains that this is partly due to the structure of the markets. Most fund managers will be reluctant or unable to invest in the smaller stocks because of illiquidity. This means it may be difficult to buy the stocks in the first place, a significant investment may in itself move the price, and the investor will then be vulnerable to the large price changes that are typical of illiquid stocks.

Their investment universe is therefore confined to many of the same stocks as in the index, says Mr Salami, as such shares are sufficiently large and liquid to be as efficiently priced as in any developed market.

Even the stocks that qualify for the index suffer serious liquidity issues, he admits.

Because of this he runs the fund as an index tracker rather than an exchange traded fund. ETFs, he explains, are expected to replicate the underlying index precisely (and they trade continuously). The Duet Victoire Africa Index deals twice monthly, and is only able to achieve 90 per cent correlation with the index as some trades cannot be carried out immediately.

This illiquidity sounds the warning bell that most investors fear when it comes to investing in less developed markets, that of massive price swings. Mr Salami’s approach to this issue is to treat sub-Saharan Africa as a regional opportunity. Over the 10 years to 2006, the standard deviation (a measure of how much the market prices swing) for that region was 23 per cent, compared with 37 per cent for eastern Europe, 35 per cent for Asia and Latin America and 32 per cent for emerging markets generally.

This is due to the low correlation of African markets with each other, he explains. A chart of the correlations between African equity markets shows they do largely function independently. Mr Salami says this makes for a portfolio with self-hedging characteristics as a downturn in one market will likely be offset by gains in another.

This characteristic also applies to currency. “The fund is dollar-denominated; it is not possible to hedge these currencies, and I don’t even think it is advisable,” he says.

“What an investor is buying into is the growth of the whole region, which includes the currencies as well as the stock markets. It’s not a product we are positioning for you to trade, it’s a long-term investment.”

Although his spiel is delivered with great conviction and a wealth of expertise to back it up – Mr Salami was an African equities analyst at Nomura Securities for four years before building a large independent database of African equities – potential investors have been spooked by recent political unrest in Kenya, one of the region’s largest economies.

“We had a decent pipeline before launch, but a lot of those have invested less than they promised,” says Mr Salami, who is surprisingly optimistic about the future of Kenya. Despite the serious political problems in the past three months, Kenya’s stock exchange has rebounded. Although the currency has yet to recover, Mr Salami expects that “before the end of the first quarter, the fund’s Kenya investments will be back above water”.

While Kenya’s independent judiciary is unharmed, and has the ability to enforce contracts, he says, “I don’t see any evidence that Kenya is going to become a failed state”.

Copyright The Financial Times Limited 2008

Michaelda

March 22nd, 2008, 03:50 AM

Sure... but in the case of CAR it lacks all the preconditions that an investor should take into consideration before embarking upon an investment and in this case, it is an investment of higher magnitude ($1bn)

we'll see.

popa1980

March 24th, 2008, 11:56 AM

Matt, you are right to be cynical.

Matthias Offodile

March 25th, 2008, 06:53 PM

Uganda: Country's 'Economy Growing'

East African Business Week (Kampala)

24 March 2008
Posted to the web 24 March 2008

Edris Kisambira
Kampala

The International Monetary Fund (IMF) has said that Uganda's economy has continued to expand at a brisk pace.

A press statement issued by the IMF's senior resident representative in Uganda, Mr. Abebe Aemro Selassie said economic growth in 2007/08 is still expected to be around 7%, as earlier envisaged.

"Uganda's economy continues to expand at a brisk pace," the statement, which was issued following a mission that was here to conduct the third review under Uganda's three-year economic programme supported by the IMF's Policy Support Instrument.

It said strong revenue performance, rapid credit expansion, and high import demand confirm the buoyancy of economic activity.

The statement discounted the impact of the unrest in Kenya on economic growth, saying it appears to have been very limited as the disruption to the all-important route for Uganda's exports and imports was short-lived.

It goes on to say that despite the minimal impact the Kenya crisis has had on the Uganda economy, together with higher international oil prices, it has contributed to a core inflation rate of some 7%, somewhat above the authorities' 5% target.

It said: "Sound macroeconomic policy implementation is continuing. For the government budget, good performance in revenue collections and expenditure adjustments in non-priority areas are being used to offset spending pressures elsewhere.

"That includes the emergencies (the floods in the North and East and Ebola outbreak) and for larger-than-projected spending on the Commonwealth Heads of Government Meeting (Chogm)."

The Bank of Uganda (BoU) is addressing the upward pressures on the money supply from large foreign exchange inflows in order to move inflation back in line with the target.

The shilling has appropriately appreciated against the US dollar in recent months, particularly bearing in mind the dollar's weakness against major currencies.

"The robust private sector-led expansion is expected to continue over the medium-term at around 7%," the release said.

However, raising growth a further notch to deliver higher employment creation and faster poverty reduction requires significant investment to alleviate infrastructure constraints.

In this respect, it said reaching financial closure for the Bujagali hydroelectric project was an important step towards augmenting Uganda's electricity supply.

The IMF mission agrees with the government that similar investment in roads and rural development are also needed.

The mission has recommended that the 2008/09 budget, currently under preparation, therefore needs to balance the need to allocate resources to these areas with competing priorities and within a framework that supports macroeconomic stability.

It said BoU's continued focus on low inflation will provide an enabling environment for private sector development.

"The IMF's Executive Board is tentatively expected to discuss the third review of Uganda's economic program under the PSI by end-June 2008," it said. During the 10-day review (March 10 - 20), the mission met with Minister of Finance Development and Planning, Dr. Ezra Suruma, the governor Bank of Uganda, Mr. Emmanuel Tumusiime-Mutebile, and other senior government officials.

You are to blame

March 26th, 2008, 07:37 AM

Botswana gems to sparkle at home
Peter Biles
BBC News, Gaborone

Diamonds account for 80% of Botswana's foreign earnings
A new diamond-processing plant, The Diamond Trading Company, has opened in Botswana, creating about 3,000 jobs.
Until now, diamonds from Botswana have been sent abroad to be polished, marketed and sold.

The $83m plant, jointly owned by the government and diamond giant De Beers, will become a processing centre for diamonds from De Beers mines worldwide.

Botswana is the world's largest producer of diamonds and one of Africa's most stable countries.

The presence of the new advanced diamond sorting facility in the capital, Gaborone, is expected to create further jobs in the finance, security and telecommunications sectors.

Vast pit

Diamonds are a finite resource, but they still make up 80% of Botswana's foreign earnings.

We have seen a lot of opportunities being created... on the back of the discovery of this great operation

Balisi Bonyongo
General manager, Jwaneng mine

For quarter of a century, diamonds have been dug from Jwaneng Mine - the richest diamond mine in the world.

Jwaneng means "the place of small stones".

Its vast open pit yields the bedrock of Botswana's economy, and looks to do so for decades to come, guaranteeing continued growth.

The mine's general manager, Balisi Bonyongo, argues that development in Botswana "really took off" when Jwaneng Mine was discovered, and when it started operating in 1982.

"We have seen wealth creation in this country," he said.

"We have seen a lot of opportunities being created, for employment, for infrastructure, hospitals, health services - on the back of the discovery of this great operation - Jwaneng Mine."

Previously, mined diamonds were exported straight to London to be processed.

But with the rough gems now being sorted at the Diamond Trading Company, the production process will be centred in Botswana.

That will eventually benefit thousands of local workers.

Long-term investment

De Beers, which has been operating in Botswana for more half a century, says it makes economic sense to move the technology and skills to the country.

The Diamond Trading Company will create 3,000 jobs

Botswana's reputation as a stable country is attractive to investors, argue the firm's management.

"Mining is a long term investment," said Sheila Khama, Chief Executive Officer of De Beers Botswana.

"And one of the pre-requisites to investing in mining, is political and economic stability... of the country in which the investor puts their money.

"Botswana's successful beneficiation ensures Botswana's economic stability."

Ms Khama accepts that concerns remain about the finite nature of the diamond industry.

"We know diamonds are a finite resource and over 50 years, we spent $93m in Botswana searching for diamonds," she said.

"We need to find other deposits."

Stiff competition

Delphinah Kehathilwe, a local diamond sorter, knew nothing about diamonds before she underwent six months of training.

Jwaneng's vast open pit has yielded diamonds for 25 years

"They say diamonds are a lady's friend, but before I didn't see much in a diamond. But touching them on a daily basis, I began to like them," she said.

Cutting and polishing facilities are also being moved to Africa, with 16 different manufacturers agreeing to start operations in the country.

While this diversification will face stiff competition from the traditional centres in China and India, the developments are important ones for Botswana.

The transfer of skills from abroad should put the country on the map as never before, and change the face of its diamond industry.

Matthias Offodile

March 27th, 2008, 01:06 PM

published yesterday, some people claiming that Africa runs out of oil....this is just one article in a string of others published earlier on this thread

:rofl::rofl:

Dubai World Sets Up Venture For Foreign Oil, Gas Buys

by Benoit Faucon Dow Jones Newswires Wednesday, March 26, 2008

LONDON, March 26, 2008 (Dow Jones Newswires)

Dubai-government funded investment company Dubai World has discreetly set up a venture for petroleum acquisitions abroad, according to people familiar with the matter, the latest Gulf company seeking new reserves beyond their oil-rich countries.

Dubai World has looked at acquisitions from Africa to South America and Asia.

The venture has yet to make acquisitions, but it has shwon prelimary interest in Royal Dutch Shell PLC's Nigeria stakes, bought last month by Oando PLC, and Azerbaijan's Caspian Energy Group.

CEG was acquired recently by Russian businessman Mikhail Gutseriev, that person said. It is now looking at further highly promising oil and gas assets in Kazakhstan and Western Africa -- including Angola, Gabon, Nigeria and coal-methane beds in Eastern Europe.

The venture is the latest for Gulf countries looking for future oil and gas abroad as their own fields deplete.

With plenty of cash after three years of soaring oil revenue, they are also spending abroad in a bid to diversify their investment portfolios and to gain further access to advanced technology and know-how. The Dubai government already has an international oil investment arm, Dubai Energy.

The person said "it's like a horse race. The more horses you own in the race, the more chances you have to win."

Abu Dhabi state-owned companies Mubadala and Abu Dhabi National Energy Co., or TAQA, have also started buying oil and gas assets abroad.

Last year, TAQA announced about $7.5 billion of acquisitions in Canada as part of a goal to invest $60 billion worldwide by 2012.

Matthias Offodile

March 27th, 2008, 01:30 PM

Oil India to increase E&P spending

15-02-08 Oil India Limited (OIL), a public sector undertaking engaged in the hydrocarbon exploration business, has firmed up plans to increase its capital expenditure in exploration activities in NELP blocks as well as in its joint venture (JV) blocks abroad. The company has made an outlay of Rs 2,230.67 crore for the year 2008-09 compared to Rs 1,705.68 crore last year.
According to sources close to the company, “The outlay includes expected expenditure in respect of overseas exploration projects and pipeline projects both in India and abroad.”

According to sources, the investment would be in sectors like seismic survey, exploration drilling, development drilling and capital equipment and facilities to enhance production in future. The company is also investing in overseas projects in countries likes Libya, Gabon and Nigeria, among others. In this regard, the company has signed an MoU with IOC for jointly acquiring producing properties of oil and gas in overseas ventures.
The company so far has 20 % interest in Farsi Offshore block in Iran along with IOC (40 % stake) and OVL (40 %). In Sudan, OIL is involved in a pipeline project with OVL and in Libya, it has a JV with IOC. Both the companies have 50 % stake in the block and OIL is the operator.

The company is also considering enhancing equity participation in downstream projects. With a view to further integrate itself along the oil and gas value chain in India, it is actively pursuing improving equity participation.
OIL is in the process of setting up a product pipeline from Numaligarh to Siliguri along with other PSU companies. The company has already obtained approval for the same and work is expected to be completed by March 2008, as per schedule.

According to company sources, the net internal resource available for plan expenditure during the year 2008-09 is estimated at Rs 2,055.68 crore compared to last year in respect of assumption of higher production (3.50 mm tons) from (3.20 mm tons last year. Moreover, OIL has also decided to go ahead with its initial public offer (IPO) to raise up to Rs 1,500 crore after March.
OIL, is the pioneer in crude oil transportation in south-east Asia, owns and operates 1,432 km of cross-country crude oil pipelines. Commissioned in 1962, OIL’s crude oil pipeline traverses 79 river crossings, including the mighty Brahmaputra River rushing through paddy fields, tropical rain forests and the world’s greatest watershed zone -- the Teesta Area.

Source: www.financialexpress.com

lena5538

March 27th, 2008, 05:35 PM

the whole europe steals the goods of african people... thats too bad...

DanteXavier

March 28th, 2008, 06:22 AM

Botswana jumps on 2010 bandwagon

Botswana has started with plans to ensure that the country also benefit from the 2010 Fifa World Cup in neighboring South Africa.

Batswana have organised the first ever 2010 World Cup Legacy workshop in the capital Gaborone today and tomorrow, .

It will be attended by senior representatives of the government, Botswana Football Association, big business, tourism, hospitality and transport industries.

Dan Moyo, acting 2010 World Cup Government Unit acting head, and Tumi Dlamini from the LOC will make presentations at the two-day event.

As part of their preparations for the World Cup, Botswana have formed a cooperation agreement with the North West provincial government.

Botswana’s preparations include upgrading their soccer facilities to enable them to attract one of the participating countries to set up a training base there.

“When we were bidding to host the tournament, we made it clear that it will be an African World Cup.”

http://www.sowetan.co.za/News/Article.aspx?id=733152

You are to blame

March 28th, 2008, 08:15 AM

Nevermind

BlackLion

March 31st, 2008, 05:26 AM

India Turns to Angola for Oil After Losing in Energy Auctions
March 31 (Bloomberg) -- India, Asia's third-largest consumer of oil, will focus on obtaining energy assets in Angola after failing to secure supplies closer to home.

``Angola is the next country where we are going to concentrate,'' Indian Oil Minister Murli Deora said in an interview in New Delhi. ``We lost because our bid wasn't good enough'' in previous auctions, he said. ``We have learned from this,'' the minister said.

State-run refiners from India and China are among 43 companies that have submitted bids for 11 oil blocks in Angola, OPEC's fastest-growing member. India's oil shortage has spurred Deora to turn to Angola, with reserves equivalent to 11 years of India's crude imports, after losing out to China in $10 billion of auctions in three years.

India's energy independence has been threatened because it hasn't been able to increase production at home, where output from three-decade-old fields is declining while economic growth boosts demand for gasoline and diesel. India will also compete for oil in Nigeria, Africa's biggest producer, and Sudan.

``India has to acquire assets overseas. There is no other way,'' said Prashant Periwal, an analyst at B&K Securities in London. ``China has slowly and steadily spread across most of Africa and is sitting on huge resources. For fuel security, you have to take control of supplies.''

India plans to resume talks with Pakistan over a $7.4 billion pipeline to transport natural gas from Iran after more than a decade of delays, Deora said.

Blackouts, Growth

Asia's third-largest economy can produce only half the gas it needs to generate electricity, causing blackouts and curbing economic growth. Demand may more than double to 400 million cubic meters a day by 2025 if the economy grows at the projected rate of 7 to 8 percent a year, according to the Oil Ministry.

Crude oil futures have risen 65 percent from a year ago on concern of supply disruptions from major producers, including Nigeria and Iraq. Crude oil for May delivery fell $1.96, or 1.8 percent, to settle at $105.62 a barrel on the New York Mercantile Exchange on March 28.

India has been beaten by China to auctions for energy assets in Kazakhstan and Myanmar in the past three years. India has offered to build ports and railways in Nigeria and Sudan, copying tactics used by China.

India organized a two-day India-Africa conference in November to discuss oil cooperation, where Deora offered to build refineries and pipelines.

India, Venezuela

India, the fastest-growing economy after China, estimates its requirement for oil will rise 62 percent over the next five years to 241 million tons a year, or 4.8 million barrels a day.

Deora will travel to Venezuela next month to complete an agreement to acquire a stake in fields in the biggest crude- exporting nation in the Americas.

ONGC Videsh Ltd., the overseas exploration unit of Oil & Natural Gas Corp., India's biggest producer, will invest up to $356 million in a venture with state-owned Petroleos de Venezuela SA, to operate the San Cristobal area.

ONGC Videsh and China Petroleum & Chemical Corp., Asia's largest oil refiner, have been selected to bid for assets in Angola, according to state-run Sonangol SA. The African nation is offering 11 licenses for fields with a potential of 9.6 billion barrels of oil reserves, Sonangol said on its Web site.

Bidding Delayed

The bidding has been delayed after Angola extended the deadline indefinitely. The offers originally had to be submitted by March 13, according to Sonangol.

The auction will take place after elections in September, Diario Economico reported on March 19, without saying where it got the information.

Angola, which became a member of the Organization of Petroleum Exporting Countries last year, was set a daily production target of 1.9 million barrels at the group's meeting in Abu Dhabi on Dec. 5. Angolan output increased 18 percent last year to 1.61 million barrels a day, according to the International Energy Agency.

India sought stakes of as much as 32 percent in two fields in Sudan, R.S. Butola, managing director of ONGC Videsh, said during the November conference. Petroliam Nasional Bhd., Malaysia's state oil company, and Total SA, Europe's third- largest oil company, control the areas, he said.

To contact the reporter on this story: Manash Goswami in New Delhi at mgoswami@bloomberg.net.

:banana:
Great news for for the Angolan coffers :cheers:

Pule

April 3rd, 2008, 08:16 AM

Namibia plans R1,2bn Walvis Bay port expansion

By: Felix Njini
Published: 28 Mar 08 - 0:00
The Namibia Ports Authority (NamPort) plans to expand and deepen the Walvis Bay port to cater for increased business from the Southern African Development Community (SADC) hinterland.

The authority says that R1,2-billion expansion programme will entail adding bulk and break handling facilities, a floating dock, syncrolift ship and rig extension of container terminals.

NamPort MD Sebby Kankondi says that the ports authority has revved up its marketing of the Walvis Bay port, Namibia's only deep-water port, in the SADC region.

Namibia has opened up its port for use by SADC countries, competing directly with the often congested Durban port, in South Africa.

Kankondi says that, a year ago, NamPort opened an office in Zambia to market the port. Another office is to be opened in South Africa's Gauteng province this year as the port positions itself to serve a population of about 190-million in the SADC region alone.

Walvis Bay, on Namibia's Atlantic coast, is the country's biggest port and has emerged as the new gateway for the SADC, the main base for the sea-fishing industry and the service centre for offshore oil exploration.

The Namibian government has given the green light to the port managers to transform the harbour into a major trading hub as the western gateway for SADC countries, via the Walvis Bay Corridor, which connects the harbour by road and rail to Namibia's neighbours in the hinterland.

"We want to make Walvis Bay port the hub for the SADC; that is our market, and we are intensifying our marketing efforts in the region," Kankondi says.

Namibia says that the Southern African region can benefit from channelling its exports and imports through Walvis Bay port. Business in South Africa's Gauteng province would save up to seven days in shipping time through using Walvis Bay, as opposed to the traditional routes.

This is particularly attractive for the transport of time-sensitive cargo, such as fresh produce, fruit or just-in-time deliveries.

NamPort says that its port offers a moderate climate all year round.

Kankondi says that the port is now handling increased volumes from the Democratic Republic of Congo, one of the region's biggest mineral exporters.

NamPort says that its master plan includes expansion of the port's berths and quay, increasing handling capacity to 500 000 TEUs.

The current berths –1 to 3 – are to be expanded and upgraded. The container-storage area is to be expanded to a throughput capacity of 500 000 containers annually.

The expansion programme will also entail installing new ship-to-shore cranes capable of unloading containers from large vessels, the purchase of rubber-tyre gantries which can stack containers 5 m high.

This is expected to speed up the unloading and sorting of containers and improve efficiency.

NamPort says that the expanded port will have the capacity to handle vessels with a draft of up to 15 m. The floating dock, which is also to be extended, will host a ship and oil-rig repair facility and will have a capacity of 8 000 t, while the syncrolift will have a capacity of 2 000 t.

The ports authority says that the proximity to the Angolan oilfields of the rig and ship-repair facility and the syncrolift could be a financial boon for the port, whose facilities are currently underutilised.

NamPort says that it also plans to construct a fishing industry quay comprising a 25 000-m3 cold-storage facility with fish-handling and bunkering facilities.

NamPort says that it will work in collaboration with Namibia's Roads Authority to explore the possibility of turning the Swakopmund–Walvis Bay road into a dual carriageway.

The port authorithy is also mulling over the construction of a waterfront to boost local and international tourism arrivals. The waterfront will include a cruise-liner terminal, a small-craft basin, hotels, a shopping malls, an entertainment centre and sporting amenities.

Pule

April 3rd, 2008, 08:18 AM

Matthias Offodile

April 3rd, 2008, 10:42 AM

Another telecommunication provider reinforces its presence in Gabon.

France´s Sofrecom which has established in Senegal to use it as its main location for West Africa now chooses Gabon as its main hub for the entire Central Africa..this means more expertise and technology for the both regions, it is also said in the article:cheers:

The main reason for their hub-creation has to do with both countries long-time stability

The company is also present in Morocco

Gabon : Sofrecom propose son expertise au secteur des Télécommunications

L’implantation des bureaux de la Société française de Télécommunications (Sofrecom) au Gabon était à l'ordre du jour de la réunion que le ministre gabonais de la Communication, Jean Boniface Assélé, a eu le 31 mars avec le directeur commercial de la Sofrecom, Patrick Rouchouze.

http://gaboneco.com/Pics/Actualite/1207087413-sofrecom.jpg

Le directeur commercial de la Société française des Télécommunications (Sofrecom), Patrick Rouchouze, a rencontré le ministre gabonais de la Communication, Jean Boniface Assélé, le 31 mars dernier à Libreville pour aborder avec lui les questions relatives à l'implantation d’une antenne locale de la Sofrecom, en vue du renforcement de la qualité du secteur des télécommunications au Gabon.

Le représentant de la Société française des télécommunications a expliqué que l’implantation d’une agence locale permettrait d’apporter l’expertise de la société aux autorités gabonaises et aux opérateurs de la téléphonie mobile en matière des télécommunications.:cheers:

Au terme de l'audience, Patrick Rouchouze a déclaré que «Sofrecom est un groupe français, tout comme Orange, qui était très implanté au début des années 2000 au Gabon, et bien avant même. Cela fait plus de 40 ans que nous sommes implantés en Afrique de l'ouest et le désir du groupe est de revenir au Gabon pour apporter nos compétences aux autorités gouvernementales, aux régulateurs et aux opérateurs de la téléphonie mobile. Notre groupe s'est aujourd’hui beaucoup élargi et développé pour que nous puissions offrir des services liés aux intérêts supérieurs de l'Etat, apporter de la technologie».

Le directeur commercial de la Sofrecom a ajouté que l'ouverture d'une succursale à Libreville permettrait aux populations et au gouvernement gabonais de bénéficier d’outils performants pour faire face à la concurrence en matière de télécommunications dans la sous région d'Afrique centrale.

Monsieur Rouchouze a par ailleurs précisé que le choix du Gabon se justifiait par la stabilité socioéconomique et politique du pays qui en fait une destination privilégiée pour les investisseurs étrangers.

«Nous adoptions toujours la vieille méthode qui consistait à travailler depuis Paris pour l'étranger, c'est-à-dire à envoyer des équipes qui venaient installer des projets puis repartaient. Après le Sénégal, qui est notre représentant régional en Afrique de l'ouest, aujourd'hui en Afrique centrale le tour revient au Gabon, du fait de son développement et de sa stabilité dans la sous région, pour développer les compétences de notre structure et les proposer en relations étroites aux sociétés locales afin de permettre aux gabonais de travailler avec les nouvelles technologies» a conclu Patrick Rouchouze.

Filiale du groupe France Télécom, Sofrecom offre une assistance globale aux opérateurs de télécommunications dans le développement de leurs projets. Sofrecom dispose de multiples succursales en Afrique de l'ouest et au Maghreb notamment au Sénégal et au Maroc.

Publié le 02-04-2008

Matthias Offodile

April 3rd, 2008, 11:38 AM

Investors target the next tier of developing nations
By Heather Timmons
Published: April 2, 2008

http://img.iht.com/images/v3/logo_all.gif

Forget Hong Kong, Beijing, Moscow and Mumbai. Intrepid bankers, investors and hedge fund managers are journeying to farther corners to do deals.

As the subprime crisis and economic slowdown ripple through the United States and Europe, and overinvestment in China and India threaten to create asset bubbles, some long-ignored areas are experiencing unrivaled growth.

Financial pioneers are entering the scene from many of the largest Wall Street banks, along with hedge funds and sovereign wealth funds.

Many of the new investment targets are mineral- or oil-rich nations, like Ghana, where high commodity prices are spurring domestic economic growth, the political framework is solid or stabilizing and doors are opening to foreign investment. Others, like Vietnam, are adopting capitalism and creating industries. Most of these places have large, young populations that are moving from rural economies into cities, eager for cellphones and cars.

Some investors and deal makers call them "frontier" markets, but there are plenty of other names for these nations. A Merrill Lynch analyst refers to them as "emerging emerging" markets, while Goldman Sachs focuses on the N-11, or Next 11, developing countries.

Deal-making in these countries involves local connections, long courtships of governments and industry titans, as well as a double layer of due diligence. Many of the most successful bankers in the Next 11 have personal ties to the area. They also need a healthy respect for what one banker calls the "hell in a handbasket" factor - political stability that can turn into chaos almost overnight.

"We're looking for new markets and new areas to add to our bottom line," said Yvonne Ike, senior country officer for sub-Saharan Africa at JPMorgan Chase. "There are deals to be done where valuations can be quite rich and yields are much higher" than in Europe or elsewhere, she said.

Companies and governments are eager to find money for projects that range from bridge building to telecommunications tower installations. Investors looking for higher returns are racing to provide this cash, and dealmakers are reaping the rewards.

"Too many people think of emerging markets in a general basket," but they have very definite stages of development, said Norman Villamin, head of research and strategy group investments for Citi Global Wealth Management, Asia Pacific. Citi is advising investors to concentrate on markets that are "one step below the recent maturation seen in markets like China and Korea," he said.

These markets face a "two steps forward, one step back" approach to financial liberalization, Villamin said. "The banking systems don't function that efficiently yet," he said, so foreign money flowing in tends to be quick, sometimes inflating prices and causing an overdone regulatory reaction.

Investors in emerging-emerging markets are willing to take that risk. "If you do an overall move away from risk, you do an overall move away from profits as well," Ike said.

AFRICA

Tutu Agyare is so certain that the time is right to invest in Africa that he left the bank he worked at for 20 years to do so. Agyare, who until November was the global head of European emerging markets at UBS in London, left to start Nubuke Investments, a two-fund shop that will invest only in Africa. The London firm will have several hundred million dollars under management and a dozen analysts when it opens in the next few weeks, he said.

Agyare, 45, was born in London, grew up in Ghana, and has spent nearly all his career in London, where he started trading derivatives for the Chicago firm O'Connor Securities in 1986. He was the first black trader on the floor of the London Stock Exchange.

"Africa is not just commodity led," he said. "We're seeing a lot more balanced growth, consumer spending and investment in infrastructure."

Africa amassed $60.1 billion in announced mergers and acquisitions in 2007, according to Thomson Financial, up nearly 47 percent from the year before.

Foreign direct investment in African countries reached $35.6 billion in 2007, according to the United Nations Council on Trade and Development, twice the amount in 2004.

Even the most stable African markets, however, have been rocked by turmoil.

The Nairobi Stock Exchange in Kenya was one of the best-performing markets in 2006, but shares plummeted because of ethnic violence that led to at least 1,000 deaths after the presidential election last December. "There are significant risks," Agyare said, that require a "deep knowledge and understanding of the history and people involved."

Big projects loom on the horizon. South Africa needs to add 17,000 megawatts of electricity and Algeria needs to spend $50 billion in the next five years to create new housing, Agyare said.

Agyare said he expected his financial analysts to spend half their time in Africa. He plans to spend a third of his time there. To do well in Africa, "You need to have an affinity for the country, and affinity for emerging markets and curiosity," which prompt you to look below the surface, he said. "You can't just take the annual report and use it as a given." --Heather Timmons

(...)

The article is longer if you wish to read the full report click here

http://www.iht.com/articles/2008/04/02/business/frontier.php?page=1

PS: Weird that they don´t mention neither Nigeria nor Angola or stable nations just like Senegal among others??!!:ohno:

ufookoro

April 3rd, 2008, 12:08 PM

Investors target the next tier of developing nations

The article is longer if you wish to read the full report click here

http://www.iht.com/articles/2008/04/02/business/frontier.php?page=1

PS: Weird that they don´t mention neither Nigeria nor Angola or stable nations just like Senegal among others??!!:ohno:

This omission happens from time to time. However it is strange that Nigeria which has the 2nd most powerfull economy South of the Equator did not get a mention.
Nigerian Credentials

1) Largest Market resource on the Continent
2) Best ROI Stock Exchange in Africa and probably the World
3) Stable Currency and Huge External reserve in Excess of $59 Billion
4) Booming Financial Sector

And much more....

I hope Investor nations can start to acknowledge that the sleeping Eagle has awaken.

Tbite

April 3rd, 2008, 12:50 PM

I think if I am not mistaken 9ja falls under the N11, but if I am hmm Ohk.:)

Xusein

April 5th, 2008, 07:02 AM

Africa is well poised to withstand the economic downturn of the US and slowdown elsewhere. However, I believe that many countries can do better with a bit more economic diversification. ;)

Link: http://www.sagoodnews.co.za/africa/africa_economic_growth_still_strong_.html

Africa economic growth still strong
Wednesday, 02 April 2008

African economies are forecast to grow by an average of 6.2% in 2008, according to the latest edition of the Economic Report on Africa (ERA 2008).

Released on Tuesday, the annual joint flagship publication of the United Nations Economic Commission for Africa (ECA) and the African Union (AU) notes that African economies continued to sustain the growth momentum of previous years, recording an overall real GDP growth rate of 5.8% in 2007.

However the report, titled “Africa and the Monterrey Consensus: Tracking Performance and Progress”, also notes that economic growth recovery in Africa has not yet translated into meaningful social development and has not benefited vulnerable groups.

Africa Research Economist at Standard Bank Anita Last concurs, “In a lot of African countries we find there is little or no evidence of change in human development indicators.”

The ERA 2008 report says that much of Africa's growth performance has been through robust global demand of particular commodities.

Last however warns that overall GDP growth can be better sustained through diversification. “You can’t rely on one sector to sustain economic growth. It is important therefore that African countries grow other sectors,” she says.

Continued consolidation of macroeconomic stability, improved macroeconomic management and greater commitment to economic reforms are other factors cited by ERA 2008 as contributors to growth.

Africa has also witnessed a decline in political conflicts and wars, especially in West and Central Africa, though peace remains fragile in some parts of the continent.

Key challenges to Africa's growth in 2008 include the risk of sharper slowdown in the US economy and a fall in global commodity demand and prices. High oil prices will hurt oil importers through the current account and inflationary pressures.

In addition, inefficient public infrastructure and unreliable energy supply at the national level as well as poor integration of transportation and energy networks at the regional level continue to pose important constraints to Africa's growth, says the report.

For a look at the full report visit the UN's Economic Commission for Africa.

Matthias Offodile

April 6th, 2008, 06:47 PM

The sub-regions´s biggest, most capitalized and most professionaly run bank is a Gabonese bank!! It grows from year to year in leaps and bounds. It is called BGFI (=la Banque gabonaise et française internationale) and looks back to almost 40 years of existence. It is already present beyond Gabon´s borders and looks to expand further in the future.:cheers:

Gabon: Economie: La BGFIBank annonce un bilan en progression de 74% en 2007

Libreville, 27 mars (GABONEWS) – La Banque gabonaise et française internationale (BGFI), réunie en assemblée générale ordinaire samedi dernier à Libreville, a annoncé que l’année 2007 a été un cru exceptionnel, dans la mesure où le groupe a en effet réalisé un total bilan de 760,292 milliards de francs CFA en hausse de 23% par rapport à l’an 2006 et un résultat net part qui atteint la somme record de 27 milliards de francs CFA, soit une progression de 74%, un bilan qui a été présenté par l’administrateur, directeur général, Henri Claude Oyima et qui confirme l’hégémonie de ce groupe sur l’échiquier financier sous-régional qui entend en 2008 miser sur 10 principaux points dont entre autres la maîtrise des risques, le développement à l’internationale avec l’ouverture des nouvelles implantations, a constaté GABONEWS.

Matthias Offodile

April 6th, 2008, 07:26 PM

Uganda To Reach Full-Scale Oil Production In 5 Yrs

by Nicholas Bariyo

KAMPALA, Uganda, April 4, 2008 (Dow Jones Newswires)

Uganda expects to reach fully-fledged oil production in the next five years following impressive oil exploration results in the Lake Albert Valley, a senior government official told Dow Jones Newswires Friday.

Kalisa Kabagambe, the permanent secretary at the ministry of energy and minerals, said that Dublin-listed Tullow Oil is in the process of setting up a small oil refinery which will initially produce around 4,000 barrels of oil a day, part of which will be used to run a 50 megawatt thermal plant, as Uganda seeks to ease its power crisis.

Oil output is then expected to keep rising and reach full-scale in the next five years, he added. By that time, Uganda expects to produce between 40,000 and 60,000 barrels of oil a day.

Kabagambe said Uganda is in the process of constructing roads and railway networks to link the oil region to the rest of the country.

In February, Keith Myers, a U.K.-based analyst warned that the remote nature of Uganda's oil region and lack of infrastructure would hamper the early oil production scheme.

Uganda has already passed oil and gas policy which provides a regulatory framework for the exploitation of oil and gas resources.

Kabagambe said up to $5 billion is required to establish a Petroleum Authority of Uganda and a National Oil Company as the country prepares to join the league of oil-producing countries. Last year, Tullow Oil said it will have invested up to $300 million by the time it starts oil production in the middle of 2009.

Matthias Offodile

April 9th, 2008, 11:35 AM

UAE-Gabon Relations

Emir of Dubai visits Libreville/Gabon with extensive business delegation for three days.

The reason why they opted for Gabon are: long-time political and economic stability, strong currency with very low inflation, well-performing banking system, still wealth of untapped mineral ressources, space for tourist development

Gabon: Sultan de Dubaï, Ahmed Bin Sulayem en visite au Gabon:cheers:

Libreville, 8 avril (GABONEWS) – L’axe Dubaï-Libreville en vue de donner un substratum véritable et concret à la dynamique des Affaires en gestation, est visiblement appelé à connaître un essor, au regard de la visite retentissante qu’effectue, mercredi, à Libreville, le richissime Sultan de Dubaï Ahmed Bin Sulayem, attendu dans la capitale gabonaise, à la tête d’une importante délégation d’hommes d’affaires et d’opérateurs économiques, pour des échanges au niveau le plus élevé de l’Etat, a appris GABONEWS.

Lors de cette visite, en effet, le Sultan de Dubaï sera reçu en audience par le président de la Républiqueen raison de l’importance que revêt cette visite de 72 heures, qui intervient quelques semaines après le dernier Sommet de l’Organisation de la conférence islamique qui s’est tenu au Sénégal où les investissements privés d’hommes d’affaires établis à Dubaï, fait la fierté de pareille coopération.

Auparavant, le Sultan Ahmed Bin Sulayem et sa délégation rencontreront certains membres du gouvernement, les opérateurs économiques, les responsables de l’Agence de promotion des investissements privés (APIP) et de la Chambre de Commerce et qui valoriseront à leurs interlocuteurs les raisons d’investir au Gabon. En particulier,

- Une stabilité politique et sociale, indispensable à tout développement
- Un environnement géographique favorable, qui donne accès à un vaste marché et à d’énormes potentialités commerciales
- Des ressources naturelles abondantes
- Un réseau bancaire fiable
- Au plan monétaire, une monnaie adossée à l’Euro, à la facilité des actions communautaires et internationales…

On rappelle que le Sultan Ahmed Bin Sulayem est le propriétaire de multiples entreprises qui font la réputation de Dubaï dans les ports, les zones franches, les nouvelles technologies, la construction des hôtels, parcs d’attractions, centres commerciaux, aéroports, voies de communication et banques.:cheers:

Tbite

April 10th, 2008, 06:48 AM

Three African countries top world bank reformers list

Three African countries - Egypt, Ghana and Kenya - are among the 10 top economic reformers that are making it easier for investors to do business in their countries, with Egypt leading the 178 countries surveyed, according to the World Bank 2008 Doing Business report.

"The data for this report is obtained from the institutions and actors themselves. We make use of local hands trained for the survey. All the data were collected by local people, it is insulated from political interference and it is an independent report," the World Bank Senior Economist for African region, Steve R. Dimitriyev, said in Lagos during the presentation of the report.

’Doing Business 2008’ is the fifth in a series of annual reports investigating the regulations that enhance business activity and those that act as impediments.

Indicators such as starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business are used to measured the performance of countries surveyed.

Egypt is topping the list for the first time, but Ghana is making it among the top reformers for the second year running, indicating consistency and improvement in policy implementation.

Nigeria is placed 108 out of 178 economies, raising questions on its various economic reforms.

"Egypt, the top reformer in the region and worldwide, greatly improved its position in the global ranks on the ease of Doing Business. Its reforms went deep. Egypt cut the minimum capital required to start a business from 50,000 Egyptian pounds to just 1,000 and halved the time and cost of start-up," the report said.

Reviewing the report from the operators perspective, President of the National Association of Small and Medium Enterprises, Ike Abugu, expressed delight that African countries are making progress in economic reforms, but regretted that Nigeria had not improved on its ratings.

"It is very heartwarming that these African countries are making it easier to do business in their countries. What this really means is that more jobs will be created, poverty will be reduced and the environment conducive for investors. Unfortunately Nigeria is nowhere near these countries," he said.

Abugu urged the relevant authorities to see the report as a wake-up call and work toward removing impediments to doing business in Nigeria.

According to the report, it takes 82 days and 22% of the value of property to register a property in Nigeria, compared with what obtains in Egypt where it reduces fees for registering property from 3% of the property value to low, fixed amounts.

Also reviewing the report, Chief Economist with the African Finance Corporation (AFC), Temitope Oshikoya, wants Nigeria to do more if it hopes to be among the top 20 economies by 2020, by providing the conducive environment for businesses to thrive.

"The report is very clear, Nigeria has to accelerate its tax reform regime, providing good atmosphere for starting a business, law enforcements and registration of property,’’ Oshikoya said.

The Director-General of the Nigerian Economic Summit Group (NESG), Mansur Ahmed, stressed the need for the regulators, operators, investors and policy makers to study the report and act appropriately.

"We all need to carefully study the report so that we can work towards improving on our ratings. I think this should be the challenge before us,’ he said.

The survey covers 178 economies, 46 of them in sub-Saharan Africa. Panapress.

Tbite

April 10th, 2008, 06:49 AM

AFC Faults W'Bank Report on Country

The African Finance Corporation (AFC) has faulted the methodology used by the World Bank and the International Finance Corporation (IFC) in its 2008 Report on "Doing Business" in which Nigeria was ranked 108 out of 178 countries.

This comes just as the World Bank hinted of plans to launch an annual publication on the performance of various states in the country. The report, it stated, would create more room for competition among the states.

Reviewing the report yesterday at the official Launch of the 2008 World Bank Doing Business Report in Lagos by the World Bank in collaboration with the Nigeria Economic Summit Group (NESG), AFC's Chief Economist, Dr. Temitope Oshokoya faulted the World Bank's ranking of Nigeria alongside 177 other countries.

According to Oshokoya, "For a country like Nigeria, which ranks 49th globally and strives to become one of the 20 best economies in the world by the year 2020, there is the need to compare Nigeria alongside with its real competitors. Strong emerging countries globally should be her competitors, this is because Nigeria is the fourth largest recipient of Foreign Direct Investment in Africa and therefore should be compared with countries like China, India in terms of ranking. In essence when you look at the big emerging economies, Nigeria is not doing badly", he argued.

Speaking from an investor's point of view, Oshokoya also faulted the parameter used by the world bank in its report. He observed that the World Bank's report focused mainly on institutional environment such as the role of states, adding that this was probably not the best parameter to use in evaluating the country's performance.

ìFrom an investorís point of view, we look at different factors of which institution is just one component. Infrastructure, entrepreneurial skills, size of the population , income level, policy framework, macroeconomic stability, among others, are factors an investor would look at when ranking countries.

Given the underlisted factors, he said Nigeria would be considered before countries like China and India. According to him, Nigeria has the highest return on investment of about 35 percent, adding that the countryís debt profile has improved over the years. ìThese are things that make Nigeria deep despite her numerous challengesî, he said.

In his remarks, President and Chairman of Council, Nigerian Association of Small and Medium Enterprises (NASME) Dr. Ike Abugu, while commending the World Bank for using the SMEs in its hypothetical study, observed that the exclusion of infrastructure, security and transparency in government was a great limitation.

The exclusion, he noted has seriously affected the validity of the final results.

In Nigeria, for instance, the three factors mentioned above are very significant, and we think Nigeriaís ranking of 108 position is very friendly and a high one. If the World Bank were to consider these factors, Nigeria should have performed worst than that.

Looking at Nigeriaís perfortmance from an operatorís point of view, it takes 82 days and 22 percent of the value of property to register a property in Nigeria. Secondly, looking at registering a company, Nigeria ranks 173 out of 173. This is the worst performance and it is clearly unacceptable. Collateral requirements are very rigid compared with China where inventory and accounts receivable can serve as collateral. Also processing of loan request in Nigerian financial institutions can drag for weeks and even months and this has greatly hampered business activitiesî, he said.

Abugu, who lamented the heavy taxa burden on SME businesses, advocated single digit tax rate for SME operators and a five year tax holiday for startups in the subsector. According to him, these are unreasonable demands especially when viewed against the background of what is obtainable globally.

In his contribution, the Head of Strategy, Debt Management Office, DMO, Mr. Miji Amidu who spoke from the public sectorís perspective, said the creation of the enabling environment is a shared responsibility of all stakeholders.

Amidu, who decried the increasing interference of government on the activities of regulators said less interference would ensure better and efficient performance in terms of policy initiatives.

Bankcruptcy and collateral laws are weak in Nigeria. This is evidenced by difficulty of lenders to foreclose on collateral and investors to retrieve their investment. No effective credit bureau and this is mainly as a result of the unwillingness by lenders to provide credit information where necessary,î he said.

Amidu, who stressed the need for governemt to continuously review these laws, disclosed that the government was making efforts at ensuring a friendly tax regime in the country. He noted that ìa tax unit has been set up to look into the problems of taxation in the country. Also, the FIRS Act 2007 and Tax Reform Act 2007 are aimed at reforming tax administration in Nigeria in tandem with global practiceî.

Meanwhile, Senior Private Sector Development Specialist at the World Bank, Mr. Steven Dimitriyev said Nigeria is no where near where it ought to be as a great nation. He observed that the country has traditionally not ranked very high in areas of private sector development, investment climate and public sector administration.

According to him, 108 position has not really reflected a great improvement in the ways businesses are carried out in the country, though her believes that the country can do better.

ìRanking 108 our of 178 hasnít really changed much. But in terms of key indicators, it ranked differently in some cases with improvement while in some, it is worst. I have empathy for Nigeria, looking at it beyond international rankings, I know the country can do better. There is need for the country to move beyond the ranking because it does not tell the whole story of any country. The only problem is that other countries have improved as well, because of competition. The competition is fairy fierce. An improvement in doing business does not really mean a surge in investment but pruning the economy and creating enabling environment are things that can influence the investors approach to doing business,î he said.

On the issue of taxation, especially multiplicity of taxation, the World Bank representative said Nigeria has recorded some improvements in the last one year in this area. However, he stressed the need for government to decentralise the Corporate Affairs Commission (CAC) in order to ensure efficiency in the registration of businesses in the country.

Meanwhile, the report to be published by the World Bank on the state of Nigeria states would include different components such as doing business, perception from private sectors, political environment, among others.

Matthias Offodile

April 11th, 2008, 07:29 PM

Here´s an article in English

Dubai World explores investment opportunities in Gabon

11 April 2008

http://www.zawya.com/pr/images/114DWGabon_2008_04_11.jpg
Chairman Sultan Ahmed Bin Sulayem holds extensive talks with President Ondimba during his tour in Gabon

Mr. Bin Sulayem is currently on a tour to Gabon along with senior Dubai World officials, including representatives of Dubai World Africa, the group's investment subsidiary dedicated to the continent. :cheers:Dubai World already has a sizable investment footprint in Africa and the tour to Gabon is aimed at expanding it.

In Gabon, Mr. Bin Sulayem and his team held extensive talks with President Bongo and his cabinet on matters of mutual economic interest.:cheers:

During the talks, Mr. Bin Sulayem, told President Bongo, who is currently Africa's longest serving leader, that he was deeply impressed by the country's extraordinary political and economic stability.

Gabon is one of most prosperous African countries, with a per capita income of nearly five times the average for Sub-Saharan Africa.

Oil production plays a significant role in Gabon's economy, which remains heavily reliant on its natural resources.

Speaking about his tour of Africa, Mr. Bin Sulayem said:"Dubai WorldDubai World sees West and Central Africa as a region with huge potential for economic growth in the near future. The emerging economies of the countries we're currently visiting in fact represent the new Africa of the 21st Century and have a lot to offer the outside world.:cheers: The principal purpose of our tour is to explore and identify potential investment targets. Our business strategy is to pursue prudent investments that serve the best interests of all stakeholders.

Matthias Offodile

April 11th, 2008, 07:35 PM

IWF Report on Gabon: The economy grew by 6% in 2007. Most of the growth came from the non-oil sector and internal consumption, it is said!

Gabon: Gabon/FMI : Une croissance économique robuste de près de 6% en 2007

Libreville, 11 avril (GABONEWS)- Une mission du Fonds monétaire internationale (FMI), dirigée par Cyrille Briançon vient de séjourner dans la capitale gabonaise, du 26 au 8 avril dernier, où la délégation a eu des entretiens constructifs avec entre autres, le premier ministre, chef du gouvernement, Jean Eyeghe Ndong, le ministre d’Etat, ministre de l’Economie, des finances, du budget et de la privatisation, Paul Toungui et le ministre de la planification et de la Programmation du développement, Richard Onouviet, afin de conduire les discussions sur les politiques économiques et examiner les progrès réalisés au niveau du programme de réforme, dans le cadre de l’accord triennal de confirmation 2007-2010, appuyé par le FMI, une rencontre qui a permis aux délégations, qui comptent poursuivre les discussions dans les semaines à venir, afin de leur permettre d’approfondir les stratégies et mesures à même d’aider à atteindre les objectifs macroéconomiques et structurels fixés pour 2008, d’établir un constat, celui de la croissance économique robuste, qui est de près de 6%, enregistrée par le Gabon en 2007, tirée par le dynamisme du secteur non pétrolier et de la demande intérieure, et par un marché des produits de base en hausse soutenue, a constaté GABONEWS.

goschio

April 13th, 2008, 06:38 AM

6% is nothing for a developing country. Even some eastern-European countries have higher growth rates. For any real progress, they need 8-10% annual growth rates. Everything else is just absorbed by population growth and inflation.

Matthias Offodile

April 13th, 2008, 07:16 PM

Goshio, yes you are right but.....the annual 6% growth comes mainly from non-oil sector (due to IWF news), so it isn´t so incredibly bad like you say. Moreover, Gabon already has four to five times the the GDP per head of the majority of African countries and a fertility rate that is not too high but comparatively moderate. So 6% annual growth rate is not brilliant, you are right, but it is neither too bad.

Alex Roney

April 21st, 2008, 12:16 AM

Btw Popa be sure to post articles on Lula's 3 day trip to Ghana.

Matthias Offodile

April 21st, 2008, 06:35 PM

Liberia's arrears written off

afrol News, 18 April - Paris Club has agreed to immediate cancellation of US $254 million of owed to Liberia after the West African country had reached its Decision Point.

Concluded under "Cologne terms" designed by the Paris Club for the implementation of the Highly Indebted Poor Countries [HIPC], the agreement endorsed the restructuring of Liberia's external public debt. This agreement has been concluded under the so called "Cologne terms" designed by the Paris Club for the implementation of the HIPC initiative interim debt relief.

As of 1st January 2008, Liberia owed the Paris Club creditors more than US $1.5 billion in nominal terms, of which more than 97% consisted of arrears and late interest. The rest of Liberia's resheduled US $789 million will be addressed for debt relieft when Liberia reaches Completion Point.

"On an exceptional basis, considering Liberia's very limited capacity of payment, and provided that this country continues to implement satisfactorily an IMF supported program, no payments are expected from Liberia between 1st March 2008 and 31 December 2010, by which time Liberia is expected to have reached its HIPC Completion Point and received the remainder of the debt reduction envisioned under the HIPC initiative," Paris Club creditors agreed.

"Several creditors intend on a bilateral basis to grant additional debt relief to Liberia beyond the terms set today in the Paris Club agreement."

This development comes after "Liberia is committed to devote the resources that otherwise would have gone to Paris Club creditors to priority areas identified in the country's poverty reduction strategy paper." The country is also "committed to seek comparable treatment from non Paris Club creditors."

Paris Club creditor countries expressed their commitment to implement the final component of debt relief contemplated under the enhanced HIPC initiative, as soon as Liberia reaches the Completion Point. The IMF and the World Bank currently assume that the Paris Club will then have delivered total debt relief of approximately US$ 1.3 billion in net present value terms.

popa1980

April 22nd, 2008, 06:17 PM

Yeah, Africa needs at LEAST 7% growth. Manufacturing and agriculture MUST be growing at these rates too because this is the first stage of development- a vibrant manufacturing country which can feed itself easily. Becuase of population growth a 7% growth is the same as a 4-5% growth in a developed country, doesnt sound so good now does it?

When they say that other non-commodity (oil) sectors are doing well, often they are related to commodities themselves- eg construction booms

popa1980

April 22nd, 2008, 06:18 PM

When does Lula arrive? South-south cooepration is the way to go. Invite Petrobras rather than Western countires to mine oil in Ghana.

Matthias Offodile

April 22nd, 2008, 06:32 PM

I am a big fan of Brazil, as you might know by now, but....NO COUNTRY on earth gives any thing for free

Western countries or not in Ghana, all what counts is ECONOMIC INTEREST! Are you really so incredibly naive?

abesha

April 22nd, 2008, 06:47 PM

There's no need for demeaning comments. :ohno:

I agree with you popa1980. As much wealth as possible should remain within the hands of the developing world. Unfortunately, you need to be unified for this and it's unlikely to ever be the case.
Trade between African countries is minimal at best. Everyone rather looks to the West for everything even if the neighboring country has the goods. Oh well, will we ever learn :ohno:

Matthias Offodile

April 22nd, 2008, 07:08 PM

Abesha, I fully agree on what you have said (INTERAFRICAN TRADE IS OF UTMOST IMPORTANCE) but when it boils down to trade there is only economic interest and NOTHING MORE!!! NOBODY WILL GIVE YOU ANYTHING FOR FREE IN THIS WORLD!!! you have to fight till the last drop of your blood!!

WE AFRICANS HAVE TO LEARN THAT AND STOP THIS SYMBOLIC SHIT! (like Brazil or China or any African country will offer a "bed of roses" and the like)

WE LIVE IN A DOG EAT DOG WORLD THE SOONER WE UNDERSTAND THAT THE BETTER AND THE MORE WE CAN C-A-P-I-T-A-L-I-Z-E ON THAT!!!!

I ADMIRE THE ASIAN UNITY EVEN ENEMIES LIKE CHINA AND JAPAN TRADE LIKE MAD WITH EACH OTHER!!!

All that counts is ECONOMIC INTEREST when it comes to trade between the two countries.

When Europe enlarges, it looks for new markets, there is no other element behind it even if they say that there are other motives the main motives are PURELY ECONOMIC...the rest is just something for dreamers!

WADE, the current president of Senegal and a person that I strongly admire once said that between states, you don´t have friends you just have (economic) interests!:cheers:

abesha

April 22nd, 2008, 07:17 PM

African leaders seem to be more interested in securing the economic interests of European countries as opposed to their own.
There are SO many examples I could list, but I don't have the time nor the energy for that. It has nothing to do with symbolic BS. I am the last person you'll hear writing poetry about PanAfricanism or whatever idiocy of the day.

However, Interregional trade needs to develop on the continent.
The WTO and other such organizations are obviously tools for developped nations.
Poor nations get kicked in the butt because they don't present a united front. Everyone is busy licking the boots of the EU and US.
Look at how agricultural subsidies in the EU and US are screwing over developing countries' farmers and economies. If they presented a united front, that BS would end. But no, :ohno:, not only will they not, they are actually busy importing those products.
I could go on and on.

Does everyone need to protect their economic interest? Absolutely! That's exactly why African countries need to start doing that PRONTO instead of protecting western interests.

Matthias Offodile

April 22nd, 2008, 07:41 PM

I FULLY agree on what you said but it still doesn´t contradict what I have said!

It is difficult to explain it all through the net....

Interregional trade is of utmost importance!

I hate Europe for its incosequence, it preached open markets but closes its market for farm products from developing countries! AWFUL

But we have to be aware of one fallacy, even within the so-called "Third World" countries, they will never pull on one string, they are very diverse and even have diverse interests in the meantime.

Without sounding rude, but just take the two cases Brazil and Benin, what do they have in common to fight with one voice?

Take Nigeria and South Africa, their interest is different than that of Burkina Faso or Malawi.

You have a lot of different interest/controversy/sceptics within EU, too. An Italian minister has said lately that he wants Italy to leave the union because the country pays more than it profits from it.

When the French voted for EU constitution, the answer was A CLEAR NO and a heavy blow to the project. Neither the UK, Switzerland, Norway, Denmark or Sweden have the Euro as their currency, are they faring any worse that those countries who have adopted the EURO?

Personally, I am still sceptical as far as the EU is concerned. France is pursuing different goals with its Mediterrean Union which deeply angered Germany´s chancellor a lot, it was written a lot about it in the papers....

So things are always multi-facetted and complex, there are no clear answers to any problems..I hope that you don´t misunderstand me now.

Alex Roney

April 22nd, 2008, 09:24 PM

When does Lula arrive? South-south cooepration is the way to go. Invite Petrobras rather than Western countires to mine oil in Ghana.

He arrived on Saturday and left on Monday. Petrobras is really starting to become a major player on the international scene.

Brazilian company in Ghana biofuels joint venture: official
22 Apr, 2008, 0411 hrs IST, AGENCIES

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ACCRA: Constran SA, a Brazilian energy company, will build a plant to produce ethanol from sugar cane in central Ghana, Brazilian government officials said Monday.

"In Ghana we are developing a project that will result in growing 27,000 hectares (of sugar cane) for the production of 150 million litres of ethanol per year that are destined to the Swedish market," Brazilian President Luiz Ignacio Lula da Silva told a UN trade conference here before heading back home.

Constran will partner with a Ghanaian company for the project, a member of the Brazilian delegation to the UN Conference on Trade and Development (UNCTAD) told AFP.

The official, who asked not to be named, said an agreement is already in place to sell the ethanol produced to a Swedish company.

No financial details were available. The joint venture will be Ghana's first biofuel production on an industrial scale.

http://economictimes.indiatimes.com/News/International_Business/Brazilian_company_in_Ghana_biofuels_joint_venture_official/articleshow/2969725.cms

Alex Roney

April 22nd, 2008, 09:25 PM

When does Lula arrive? South-south cooepration is the way to go. Invite Petrobras rather than Western countires to mine oil in Ghana.

He arrived on Saturday and left on Monday. Petrobras is really starting to become a major player on the international scene. But their are others as well.

Brazilian company in Ghana biofuels joint venture: official
22 Apr, 2008, 0411 hrs IST, AGENCIES

ACCRA: Constran SA, a Brazilian energy company, will build a plant to produce ethanol from sugar cane in central Ghana, Brazilian government officials said Monday.

"In Ghana we are developing a project that will result in growing 27,000 hectares (of sugar cane) for the production of 150 million litres of ethanol per year that are destined to the Swedish market," Brazilian President Luiz Ignacio Lula da Silva told a UN trade conference here before heading back home.

Constran will partner with a Ghanaian company for the project, a member of the Brazilian delegation to the UN Conference on Trade and Development (UNCTAD) told AFP.

The official, who asked not to be named, said an agreement is already in place to sell the ethanol produced to a Swedish company.

No financial details were available. The joint venture will be Ghana's first biofuel production on an industrial scale.

http://economictimes.indiatimes.com/News/International_Business/Brazilian_company_in_Ghana_biofuels_joint_venture_official/articleshow/2969725.cms

Alex Roney

April 22nd, 2008, 09:26 PM

Africa: Brazil Shares Technology With Continent

21 April 2008
Posted to the web 22 April 2008

Mario Osava
Rio De Janeiro

The people of Brazil have reason to believe that they are making a real contribution to reducing hunger and environmental threats in the world by developing agricultural technology that has begun to be shared with poorer countries.

One example is the Brazilian Agricultural Research Corporation's (EMBRAPA) new office in Africa, which was inaugurated Sunday in Accra by President Luiz Inácio Lula da Silva on an official visit to Ghana.

Brazil has also made progress in following many of the recommendations of the three-year International Assessment of Agricultural Science and Technology for Development (IAASTD), Paulo Galerani, technical coordinator of EMBRAPA in Africa, told IPS.

The IAASTD is a panel sponsored by the World Bank and five United Nations agencies to examine agriculture from all angles and determine how farming might be done more sustainably in the future.

The panel, which brought together more than 400 scientists and experts from governments, civil society and the private sector, produced five regional assessments and a synthesis report approved by an Apr. 7-12 intergovernmental plenary conference in Johannesburg, South Africa that was attended by representatives of around 60 governments.

The reports include a highly critical assessment of the direction taken by agriculture in the world, which has left in its wake poverty, environmental damages and more than 800 million hungry people. They also outline future scenarios marked by climate change, as well as recommendations on the role of knowledge systems, science and agricultural technologies.

Galerani, who took part in the Johannesburg meeting, said the technology for the production of ethanol fuel from sugar cane represented an advance in the search for more efficient and lower-cost biofuels, which he said help alleviate climate change -- a claim that has been called into question, however, by environmentalists and others.

Brazil, and especially EMBRAPA, a network of 41 research centres, has also made huge strides in biotechnology that have helped reduce the use of pesticides and fertilisers and improve crop resistance to drought and pests, he said.

These are advances in know-how and technology that Brazil plans to "transfer and adapt" to Africa, which will thus benefit from them without having to lose "so much time," said the researcher.

EMBRAPA's Africa office, which began to be set up in July 2006, contributes to development on two fronts: small farms, based on the experience of research centres that are active in Brazil's impoverished semi-arid northeast; and commercial agriculture, the head of the office in Accra, Claudio Bragantini, explained to IPS.

The first case involves less developed countries that have productive potential but on a small scale, similar to the situation in Brazil's northeastern region, where there is a heavy concentration of family farms, which under the Lula administration have benefited from a major expansion of soft loans and technical support.

The second case targets "countries that have vast available grasslands, with good topography and possibilities for large-scale production," similar to Brazil's central Cerrado region, said Bragantini, who mentioned Angola, Congo and Zambia as examples.

The private sector in Africa rapidly expressed strong interest in taking advantage of the Brazilian technology, to "my pleasure and surprise," said the Brazilian agronomist, who lived in other African countries in previous decades and said he has seen a big difference in the attitude of today's farmers.

The technology transfer began with training provided by means of bilateral technical cooperation and mechanisms involving international bodies. But later the efforts expanded to include large farmers in Africa, who were mainly interested in Brazil's know-how on biofuels, a variety of agribusiness products, and livestock breeding, said Bragantini.

"The green revolution has not yet happened in Africa. It is just now beginning to take shape," which makes support from more developed countries extremely important, he said.

Brazil has put a high priority on the development of agrofuels, with President Lula making frequent tours abroad and signing agreements with a number of countries.

However, the Brazilian government and business community face the challenge of refuting loud criticism of biofuels, which are accused by many of driving up food prices.

Brazil seems to be on the losing end of the information war, having failed to demonstrate to global public opinion the difference between the ethanol it has produced from sugar cane to replace gasoline for more than 30 years, and U.S. biofuels, which are based on corn and have accentuated imbalances in the global food market.

Lula is convinced that biofuels present an opportunity for agricultural development in Africa, where he believes they can reduce hunger and poverty by generating incomes and improving rural living conditions, while at the same time helping to mitigate climate change by replacing fossil fuels.

All three of the objectives laid out by the IAASTD would thus be met, if production is carried out in a sustainable fashion.

Relevant Links

Food, Agriculture and Rural Issues
Sustainable Development

EMBRAPA, which has played a decisive role in the agricultural boom in Brazil, a country that doubled its output in 10 years while expanding the area under cultivation by a mere 20 percent, is a major instrument for environmentally and socially sustainable development in Brazil and assistance to poorer regions.

The IAASTD, however, does not exempt Brazil and the rest of Latin America from tough criticism, for leaving millions of people steeped in poverty and hunger despite the region's vast extensions of fertile land, much of which is concentrated in the hands of a relatively few large landowners.

According to Galerani, the assessment was heavily influenced "ideologically" by civil society at the start, tending, for example, towards outright rejection of genetically modified crops and biofuels. But in the end, he said, a certain balance was achieved, with the concerns of governments taken into account, and new technologies accepted as long as they are employed with the necessary safeguards and care.

http://allafrica.com/stories/200804220691.html

Alex Roney

April 22nd, 2008, 09:28 PM

Brazil's Lula pays homage to ex-slaves
2 days ago

ACCRA, Ghana (AFP) — Brazilian President Luiz Inacio Lula da Silva Sunday paid homage to west African former slaves who bought their freedom in Brazil and returned home in the 19th century.

"The .. families who left Bahia and who came back to Ghana are a true example for us," Lula said, praising them as "people that were born slaves but bought their freedom".

"They had everything to surrender but never gave up the dream of living with dignity, peace and freedom," he said while visiting Brazil House, a graceful two-storey building that backs onto the ocean and that is now a memorial to returning ex-slaves.

"This is his (Lula's) project. This is one of his pet projects for Ghana - the rehabilitation of the cradle of the Tabon people", Brazil's ambassador to Ghana, Luis Fernando Serra, told AFP.

Tabon is the name given to the returnees in Ghana. Elsewhere on the West African coast they became known as "agudas".

"The Tabon community is the oldest link that exists between us in Brazil, the country that they left in the nineteenth century, and Ghana, the land that they have adopted", Lula said after being welcomed by the elaborately clad chief of the Tabon, Azumah Nelson V.

The local community, led by a dancer with waist-long dreadlocks, tattooed legs and white plastic sunglasses, staged a frenetic dance in front of Brazil House during the ceremony.

During the 19th century, many freed Africans and their children left Brazil to return to west Africa. This increased after 1835 with the deportation of large number of slaves who took part in an attempted uprising in Bahia.

Those who came back were the elite among the slaves in Brazil - they were those who had been healthy enough to survive the tough conditions and who had the skills needed to obtain freedom. They spoke fluent Portuguese and understood the day-to-day running of a plantation.

And ironically, on their return to West Africa, according to research by Rio de Janeiro-based Universidade Federal Fluminense, they allied themselves with Brazilian traders who were established on the coast and involved in the slave trade.

It was during a visit to Ghana in 2005 that Lula approved turning Brazil House into a memorial.

Recently the building, in Jamestown, a low-rent part of Accra, was renovated with financial backing from two Brazilian companies and turned into a memorial-cum-museum.

Lula said he hoped that the restoration would help in the redevelopment of Jamestown district, an area where everything takes place in the street - from film screenings to meals and hairdos.

Rocks at the back of the house lead straight down onto the beach. The view over the ocean serves as a reminder of how the slaves left and came back home.

http://afp.google.com/article/ALeqM5gKon6vuWnmkQra8Jx7O8woGLH76A

abesha

April 23rd, 2008, 01:55 AM

Matthias Offodile

April 24th, 2008, 10:52 AM

Gabon -Brazil Relations

A group of Brazilian investors are currently touring Gabon: they want to build an ethannol plant, they are searching for mining contratcs and eyeing the construction of an additional cement factory

Gabon: Economie: une délégation d’hommes d’affaires brésiliens en visite officielle à Libreville

Libreville, 23 avril (GABONEWS) – Une délégation d’hommes d’affaires brésiliens conduite par Paulo de Araújo, président fondateur du groupe à vocation commerciale et économique Brésil-Afrique, qu’accompagnait l’ambassadeur du Gabon auprès de la République Fédérale du Brésil, Benjamin Legnongo, a foulé le sol gabonais mercredi, en vue d’établir des contacts dans le secteur minier, car, ayant en projet la construction d’une usine de production de ciment et une usine d’exploitation de l’éthanol dans la zone d’Owendo, la délégation a été reçue, tour à tour, par le Coordonnateur Général des Affaires Présidentielles, Jean-Pierre Lemboumba Lepandou, puis par le ministre du Commerce, du Développement Industriel, Chargé du NEPAD, Paul Biyoghé Mba et enfin par le ministre d’Etat, ministre de l’Economie, des Finances, du Budget et de la Privatisation, Paul Toungui dans le secteur minier, a constaté GABONEWS.

Bond James Bond

April 25th, 2008, 08:17 PM

Looks like Guinea could soon be joining Ghana on the oil-discovery scene?

This is a somewhat technical article on doing seismic readings for oil and gas prospects, but the mention of "large structures" indicates there could be large traps of oil and or gas. With the emphasis on "could."

Between Nigeria, Ghana and now this, I'm beginning to wonder if the entire west coast of Africa is lined with large oil deposits.

http://www.rigzone.com/news/article.asp?a_id=61063

Hyperdynamics' Seismic Confirms Giant Structures Offshore Guinea
Friday, April 25, 2008

Hyperdynamics Corporation announced that as its 2-D data acquisition continues offshore Guinea, new seismic lines are already providing geophysical confirmation of the most significant play types along the West African Transform Margin play where as many as 40 discoveries have been made in the last few years. Hyperdynamics is engaged in a targeting process with its currently working 2-D seismic acquisition program offshore The Republic of Guinea, West Africa. New 2008 seismic lines are now becoming available for comparison with both the Company's 2002 and 2003 seismic data. This comparison is allowing the geo-science team to confirm and enhance critical aspects of many leads that had been initiated with the older seismic.

The Company's geoscientists continue to build a portfolio of stratigraphic-type plays within the Upper Cretaceous section of the Shelf/Slope region of its concession. The targets in the Upper Cretaceous zone consist of turbiditic slope-fans and mounds which are the type of structures in which several oil and gas operators have already made many discoveries along the West African coast. Newly acquired seismic lines have already added support for many of these previously identified targets of interest.

Additionally, with the new 2008 seismic data starting to be received, confirmation has been made of the deeper, very large structural traps being delineated within the Lower Cretaceous section, and further evidence now exists to support the immense size of these structures. Previously disclosed in the last few months, the Company had identified a structure 16 kilometers across. At this time, an adjacent structure has been delineated further that is estimated to be 17 kilometers long and approximately 8 kilometers wide. The combined size is estimated at approximately 33 kilometers by 8 kilometers. Over the next few months many new leads are expected to be identified at the same time existing leads will be high-graded and confirmed. With the additional reconnaissance provided by the current 2008 2-D acquisition, the preliminary 3-D seismic grid, laid out this last winter, can be customized to cover the most interesting prospects that are believed to have the greatest potential for world class reserves. The Company looks to acquire the first 3-D seismic in history offshore Guinea later this year. Once this 3-D can be acquired, processed, and interpreted, the Company expects to have a significant portfolio of prime drillable prospects ready to drill.

----------------------------------------------------------

For comparison, the giant Ghawar oil field in Saudi Arabia - the world's largest - is about 250 x 30 kilometers, roughly 7,500 square kilometers. 33 x 8 kilometers would be 264 square kilometers, but that would still be a nice-sized oil field for a small nation like Guinea. :) And maybe they'll find bigger ones.

Matthias Offodile

April 25th, 2008, 08:20 PM

Although Gabon didn´t see any street protests concerning the high price of food, the government acts with foresight by taking preventive measures: it subsidizes all the basic food items in the country. :cheers::cheers:

Le gouvernement gabonais prend des mesures urgentes face à la hausse des prix

(Gabonews 25/04/2008)

Libreville, 25 avril (GABONEWS) - Le gouvernement gabonais a pris des mesures urgentes en vue de sauvegarder le pouvoir d'achat des gabonais, a annoncé le communiqué final du conseil des ministres tenu jeudi dernier, a constaté GABONEWS.

Le gouvernement a arrêté les mesures suivantes, sur ces cinq produits :

La suspension pour 6 mois de tous les droits et taxes à l'importation ; suspension pour 6 mois de la TVA sur l'huile et le poisson importé, le lait et la farine.

La suspension de toutes les taxes relevant de la parafiscalité prélevées et perçues par les administrations suivantes : l’ONADER, la direction générale de l'agriculture, les douanes et droits indirects (RUSID), le conseil gabonais des chargeurs, le ministère des transports, l’Hygiène publique, les Mairies et Conseils Départementaux.

S'agissant spécifiquement du riz, les marges nettes des importateurs, des demi-grossistes et des détaillants seraient plafonnées pour 6 mois, respectivement à 10 et 6%.

Matthias Offodile

April 25th, 2008, 08:29 PM

More good news concerning oil exploration in Gabon....and new facility construction

ADDAX Petroleum va lancer une campagne sismique 2D onshore sur le permis Maghena / ADDAX Petroleum va initier une étude d’impact préalable au forage du puits Iris Charlie Marin 1

(Infosplusgabon 24/04/2008)

LIBREVILLE, 24 avril (Infosplusgabon) - La direction générale de l’Environnement a annoncé mercredi que la société ADDAX Petroleum va initier une campagne sismique 2D onshore sur son permis Maghena.
Conformément aux dispositions de l’article 2 du décret 539 du 15 juillet 2005, réglementant les Etudes d’impact sur l’environnement, cette étude est consultable pour avis, à la direction générale de l’Environnement jusqu’au 7 mai.

Passé ce délai, aucun avis ne sera pris en compte dans le rendu de la décision par l’administration.

ADDAX Petroleum va initier une étude d’impact préalable au forage du puits Iris Charlie Marin 1

LIBREVILLE, 24 avril (Infosplusgabon) - La direction générale de l’Environnement a annoncé mercredi que la société ADDAX Petroleum a fait part le 16 avril qu’elle réalisera une étude d’impact sur l’environnement relative au forage du puits d’exploration Iris Charlie Marin 1, au large de Gamba.
Conformément aux dispositions de l’article 2 du décret 539 du 15 juillet 2005, réglementant les Etudes d’impact sur l’environnement, cette étude est consultable pour avis, à la direction générale de l’Environnement pendant 10 jours à compter du 23 avril 2008, précise le communiqué publié dans le quotidien l’Union.

Addax Petroleum produit plus de 18 000 barils par jour de pétrole brut moyen à léger.

Grâce à l’ajout des activités de PanAfrican au Gabon, Addax Petroleum atteindra, sur une base consolidée, une production d’au- delà de 100 000 barils par jour, des réserves prouvées et probables de 264 millions de barils et des réserves de pétrole prouvés, probables et possibles de 400 millions de barils en Afrique de l’Ouest.

L’établissement immédiat d’un nouveau centre de production au Gabon complète l’actuelle base de production d’Addax Petroleum au Nigeria. Le Gabon est un pays très stable qui entretient une bonne tradition d’exploration et de production de pétrole.

FIN/IPG/NGH/2008

Matthias Offodile

April 27th, 2008, 05:06 PM

Africa, the next Asia for investors?

Sunday, April 27, 2008 - Page updated at 12:00 AM

By The Associated Press

Economies in Africa are among the world's fast growers, and more analysts suggest investors pay attention to the continent.

Historically, heavy debt loads and political strife weighed on Africa. But since 2001, the resource-rich continent has been lifted by stronger prices for oil, gold and other commodities.

Africa, in some ways, resembles Asia 20 to 30 years ago, when that region began its growth spurt, Credit Suisse analysts say in a recent report.

They point to greater political stability, higher education levels, investments by China, continued commodity price strength and lower inflation. The latter is about 6 percent compared with 19 percent in the 1980s.

It can be difficult for U.S. investors to get access to African stocks, especially outside South Africa.

Few analysts follow them, and they can be thinly traded. But Americans can play the region's growth through U.S. companies.

Another avenue is mutual funds focused on Africa. T. Rowe Price launched its Africa & Middle East fund (TRAMX) last year.

Most of the fund's holdings are in the Middle East. Joseph Rohm, vice president of T. Rowe Price International, sees opportunities in energy, financials, infrastructure and telecommunications, as mobile-telephone use skyrockets across the continent.

African stocks tend to have a relatively low correlation with the U.S. market, which helps diversify investors' portfolios, Rohm says.

African banks, for example, have largely sidestepped the huge write-downs global banks have taken in connection with U.S. mortgages.

The corporate-management talent pool is also improving, as Africans educated in the United States and Europe return, Rohm says.

To be sure, Africa still has a way to go to become the next Asia, experts say.

Though Africa makes up 13 percent of the world's 6.5 billion population, it accounts for just 2 percent of global economic output, Credit Suisse says.

A drop in commodity prices would also hurt. And though conditions have improved, political strife remains.

The T. Rowe Price fund avoids such markets as Zimbabwe for this reason.

Matthias Offodile

April 27th, 2008, 05:11 PM

Africa: Botswana's Education System - Good Example to Africa

BuaNews (Tshwane)

25 April 2008
Posted to the web 25 April 2008

Kagiso Metswamere
Botswana

Botswana has set a good example to other African countries for investing more in education, says North West MEC for Economic Development and Tourism, Darkie Africa.

Speaking during an investment seminar held on Thursday at Phakalane golf estate in Botswana, MEC Africa said investment in education in Botswana has set a good example not only in Africa but also internationally.

"We note and congratulate with pride, all the erstwhile leaders of Botswana who through their expertise in the various field of education set and example for the youth of Botswana.

"The focus and the emphasis of Botswana on educating its population is an example that many countries wish to have and follow," MEC Africa said.

MEC Africa said the North West province should use the fact that it was nearer to Botswana to learn more about their strategies in education.

"We should use the benefit that geography offers us and strengthen cooperation between our institutions of higher learning in the North West province and Botswana.

"We must also look at critical lessons in Botswana's educational system that brought Botswana such successes in improving literacy level in their country," MEC Africa said.

Dr Keteng Molefi, 56, a lecturer at the University of Botswana said that their country was still one of the countries in Africa with a high literacy rate and that made him very exited.

"We are happy that our country is doing well in terms of education and other African countries must learn from us that putting more money in education is not really a loss, but a good investment," he said.

Mr Molefi also encouraged government and local businesses to use more local graduates.

"We do have graduates who must often be used in our businesses. We must not always adopt a style of looking for employees in our companies in other countries.

"We must all learn in African countries to use our people locally after they complete their studies," Mr Molefe said.

Matthias Offodile

April 29th, 2008, 11:05 PM

Moho-Bilondo Brought on Stream Offshore the Republic of the Congo

http://www.rigzone.com/images/news/library/maps/3/4320.gif
Location of oil field

Monday, April 28, 2008

Total E&P Congo announces that the deep offshore Moho-Bilondo field has been brought on stream in the Republic of the Congo, nearly a month ahead of schedule. Discovered in 1995, the field is located nearly 80 kilometers offshore in water depths ranging from 540 to 730 meters and contains at least estimated reserves of close to 230 million barrels of oil.

The first deep offshore development to be brought on stream in the Congo, the Bilondo and Mobim reservoirs will be produced using nine producing wells and five water injectors in two submarine clusters.

Plateau production is forecast at 90,000 barrels of oil per day. Insulated umbilicals and flowlines will bring the oil to the floating production unit (FPU), from which it will then be exported via a new 16-inch, 80-kilometer pipeline to the Total-operated Djeno onshore terminal.

The project leverages Total's experience of drilling complex, extended-reach wells. One innovative feature is the use of bottomhole gas injection in a deep offshore project. Despite the complex development plan, the reservoir was brought on stream in a record 33 months after the signature of construction contracts.

In addition, the Moho Marine Nord 1 and 2 wells, drilled in 2007 in the northern part of the license, revealed significant additional resources of good quality oil. New development studies are being launched.

PS: This will increase significantly the daily oil production of Congo, an additional 90 000 barrels a day.

The country is already No.5 in Sub-Sahara africa, mayabe it will become No.4 now.

Nigeria
Angola
Sudan
Equatorial Guinea
Congo-Brazzaville

Matthias Offodile

April 30th, 2008, 12:05 AM

A very good article dealing with outsourcing jobs to French-speaking African countries.

Magreb countries are playing the leading role but Senegal is catching up amazingly fast within Sub-Saharan Africa. Tens of thousands of new jobs will be outsourced into these countries in the coming years.

I wish Africa could learn from India in this aspect, too.

L’Afrique francophone gagnée par la délocalisation des services

http://gwethguy.files.wordpress.com/2008/02/callcenter1.jpg

Publié le février 6, 2008 par gweth

Grâce à l’amélioration de télécommunications, le continent africain devient une alternative intéressante pour les entreprises européennes qui cherchent à délocaliser des services.

Par Christelle Marot, Casablanca/sources JFA

Assistance technique, saisie de données comptables, back office pour de grandes compagnies d’assurances, prise de rendez-vous médicaux, vente par téléphone : la délocalisation de services est de plus en plus poussée. Après les pays à bas coût de l’OCDE tel l’Irlande, puis les pays émergents comme l’Inde ou l’Afrique du Sud, une troisième vague de pays fait surface, portée par le développement de la bande passante et l’accès Internet à haut débit. Sur le continent africain, ils sont quelques uns à vouloir surfer sur la vague : le Maroc, la Tunisie, le Kenya, l’Ouganda, mais aussi le Sénégal, le Mali, le Ghana ou le Nigeria.

Pressées de réduire leurs coûts, les entreprises françaises voient dans les pays d’Afrique du Nord et de l’Ouest une solution pratique à leurs besoins d’externalisation, question de langue et de proximité, et n’hésitent plus à recourir à des sous-traitants locaux (outsourcing offshore). Pour autant, tous les pays francophones d’Afrique ne sont pas logés à la même enseigne.

Le Maghreb en tête

« Outre les infrastructures télécoms et Internet, il faut aussi une offre immobilière de bureaux adéquate, puis des compétences et de la notoriété. Au delà, il faut pouvoir développer la confidentialité des informations, comme c’est le cas en Inde », explique Martin Labbé, consultant international auprès du Centre du commerce international à Genève. A ce titre le Maroc et la Tunisie sont largement en tête, à la fois sur l’offshore informatique, l’externalisation de services (BPO, Business Process Outsourcing) et les centres d’appel. A Casablanca, capitale économique du Royaume, le parc de CasaShore, avec ses 53 hectares et des coûts 30 à 50% inférieurs à l’Europe, fait le plein : Capgemini, Unilog, BNP Paribas, Axa, pour les filiales de grands groupes. Via ses plateformes de Casablanca et Rabat, BPO Services fait de la saisie comptable et du traitement de paie externalisée pour des sociétés françaises. Sur le créneau porteur des centres d’appels (environ 140 au Maroc, selon l’ANRT), Webhelp est leader, devant Phone Assistance et les Espagnols Atento et Grupo Konecta. Entre la France, le Maroc et la Roumanie, Webhelp emploie près de 5 000 personnes. Globalement, le secteur des call center au Maroc génère un chiffre d’affaires estimé à 3 milliards de dirhams (environ 2,6 milliards d’euros) et quelques 25 000 emplois (dont 18 000 téléopérateurs).

En Tunisie également, les centres d’appels ne cessent de croître, 130 estimés à fin 2007; des centres spécialisés dans la vente à distance, la relation clientèle, le télémarketing. Parmi les étrangers implantés : les Français Teleperformances, Mezzo (groupe 3 Suisses), Sellbytel, le Luxembourgeois Transcom World Wide ou l’américain Stream. Dans l’outsourcing, la Tunisie, qui s’appuie sur une main d’oeuvre qualifiée, commence à être reconnue dans le développement de logiciels et autres solutions informatiques. A l’instar du Maroc, elle mise sur les infrastructures. Le parc technologique des télécommunications El Ghazala, sur 65 ha, est considéré comme l’un des plus développés du continent. Il accueille notamment Alcatel, Ericson, Bilog et Huawei Technologies. La Tunisie favorise également le développement de technopoles et pépinières.

En Afrique de l’Ouest,

Le mouvement est perceptible, en particulier au Sénégal, mais il concerne des services de moindre valeur ajoutée, essentiellement le télémarketing et la télésaisie. A Dakar, Premium Contact Center International (PCCI) est une success story. Ce centre ouvert en 2002 est aujourd’hui le plus important du Sénégal, avec près d’un millier de positions. Ses clients s’appellent Orange, Neuf Cegetel, Bayer, Poweo ou Canal +. Sa réussite, il la doit à la fibre optique. « Le coût de la bande passante à l’international est très compétitif (…) Le Sénégal compte trois accès à la fibre optique. Même l’Afrique du Sud (leader sur le continent avec plus d’un millier de call center) ne compte pas autant de point d’accès », souligne Martin Labbé. Le Sénégal est relié aux câbles sous-marins Atlantis II (Europe, Sénégal, Amérique du Sud) et SAT 3/WASC/SAFE (Europe, Afrique de l’Ouest, Afrique du Sud, Asie), ainsi qu’au câble de garde à fibre optique CGFO (Sénégal, Mali, Mauritanie).

Au Mali, l’entreprise Ça Va est pionnière. Son créneau : la prise de rendez-vous et la gestion du secrétariat pour des médecins, mais aussi des PME-PMI en France. La révolution de l’Internet et des télécoms est à l’oeuvre. Reste que dans l’ensemble, le continent africain a encore du chemin à parcourir. Selon la Banque mondiale, l’Afrique détient le record pour le coût d’une liaison Internet avec des tarifs mensuels pouvant atteindre 180 à 214 euros

http://gwethguy.wordpress.com/2008/02/06/l%E2%80%99afrique-francophone-gagnee-par-la-delocalisation-des-services/

Matthias Offodile

April 30th, 2008, 11:43 AM

Ghana: Use Oil Revenue to Develop Agriculture

Ghanaian Chronicle (Accra)

William N. Jalulah Bolgatanga

PARTICIPANTS AT a one-day consultative forum, on the policy document on oil and gas, in Bolgatanga, have expressed divergent views, and given suggestions on areas that the oil revenue could be channeled into, so as to develop the economy of the country, and make living standards bearable for all Ghanaians.

According to the participants, there was the need for government to use the revenue, which would accrue from oil and gas prudently, by channelling it into critical areas like agriculture, education and health.

While some of them were very unconvinced about the oil find, and wondered what quantity of it could be extracted, and for how long, others were optimistic that the finds were in large quantities, and could turn round the fortunes of the economy.

With some of them citing Nigeria as a case study for neglecting the agricultural sector, some participants said agriculture was paramount, and must not be compromised for anything, when revenues from oil and gas were realized.

A former assembly man for Zaare electoral area, Mr. Alaskomah Noble, suggested that, 10% of the oil revenue be used to create a special educational fund for the three regions in the North, and the Central region. This, he hopes will bring down the high rate of illiteracy, and poverty level in these regions.The health of Ghanaians, especially inhabitants of where the discovery had been made should also not be compromised.

Mr. Ebenezer Appah-Sampong of the Environmental Protection Agency, said the objective of the forum was to engage relevant stakeholders, in discussions on the policy implications of the oil and gas find, involve all stakeholders in discussions of petroleum sector issues, and initiate the process of consultation, to facilitate the development of a comprehensive National Policy for the oil and gas sector, and an Industry Master Plan.

Mr. Appah-Sampong said the structure of the Draft Oil and Gas Policy has four organized themes, Resource Management, Revenue Management, Safety and Environment, and Security.

According to him, Norway was one of the oil producing countries that has been successful, and that the government of Ghana had signed a Memorandum of Understanding with that country, to help in the extraction and management of the oil, and gas products.

Mrs. Mangowa Ghanney of the Ministry of Finance and Economic Planning, Accra, disclosed that, 11 international companies had expressed interest in the country's oil find. She called for local inputs, to customize the views of these foreign companies.

The Upper East Regional Minister, Mr. Alhassan Samari, noted that oil and gas were national assets, which belonged to every Ghanaian.

He, therefore, called for accountability and transparency, in all aspects of transactions, in connection with the development of the oil and gas sector, to enable Ghanaians benefit fully from the find.

Matthias Offodile

May 3rd, 2008, 06:05 PM

A couple of brand new ultra-modern speed boats and ferries have been acquired by the Gabonese government for more efficient public transport in country:cheers:

http://www.gabonews.ga/gestion_actu/admin_actu/images_actu/Bateau.jpg

Gabon: Transport/ La CNI acquiert de nouveaux bateaux financés par le gouvernement

Libreville, 30 avril (GABONEWS) – La compagnie de Navigation Intérieure (CNI) dont le directeur général est François Oyabi, vient d’acquérir trois nouveaux bateaux ultra-modernes, dans ses missions de service public, notamment un ferry fluvio-lagunal d’un coût de 5.285.676.000 francs CFA destiné à desservir les localités d’Omboué, Ndougou et Lambéréné, un catamaran rapide évalué à 4.092.168.405 francs CFA pour le trajet Libreville - Port-Gentil et un ultime navire réservé à la région de Sette-Cama (Gamba) estimé à environ 3.800.000.000 francs CFA, a appris GABONEWS.

Matthias Offodile

May 4th, 2008, 05:13 PM

Foreign investors discover Africa

May 4, 2008

LUSAKA, Zambia (AP) - Tucked away on the third floor of a modern office building in downtown Lusaka, Zambia's tiny stock market has only 16 listed companies. Clerks write orders in a logbook, only later entering them into a computer, as street vendors eke out a living outside selling mangoes and bootleg Chinese DVDs.

In short, it's a long way from Wall Street.

But these days, that's not such a bad thing.

While the U.S. stock market falters, the Lusaka Stock Exchange is growing by more than 40 percent and racking up an overall market return of 102 percent in 2007. That makes it one of Africa's top performing stock markets on a continent where Western investors are increasingly bullish.

Thanks in part to high commodity prices, economic growth, debt relief initiatives and recent market-friendly economic policies, so-called "frontier" stock markets throughout Africa, from bigger players like Nigeria to Ghana and tiny Malawi, have been yielding big gains for investors.

The Nigerian Stock Exchange posted some of the highest gains in the world in 2007, its all-share index growing by nearly 75 percent that year, propelled by banking stocks that tripled or quadrupled in just six months - rare good economic news in a country plagued by graft, poverty and lack of development despite its oil wealth.

"Even the dead can hear the sound of something happening in this market now," said Kene H. Okafor, the Nigerian Stock Exchange's head of research and information technology.

The continent's bull market is being driven in part by a growing African middle class seeking new investment opportunities. And with the U.S. economy wobbling, American and European investment funds are taking an increased interest in Africa, buying bargain-priced shares of undiscovered companies. Foreigners are even eyeing the stock market in politically isolated Zimbabwe, should president Robert Mugabe step down.

Most African stock markets aren't affected by global trends, argues Joseph Rohm, a London-based vice president and analyst at investment firm T. Rowe Price International. The company created an Africa and Middle East fund last September.

Rohm, who travels extensively in Africa, is particularly interested in Nigerian banks, infrastructure companies and consumer-oriented African stocks like mobile phone companies and Zambeef Products PLC, a Zambian food supplier whose stock price grew by 146 percent last year.

Only five sub-Saharan African countries had stock markets in 1989, according to the International Monetary Fund. Now, the number has risen to 16. The Johannesburg Stock Exchange is the largest and most developed. Swaziland has the smallest, with only eight companies. Ethiopia just opened a new commodity exchange in Addis Ababa.

In Kenya, long lines formed outside brokerages after the government announced plans to sell almost half of its shares in the country's largest mobile phone service company, Safaricom Ltd. Coming in the wake of Kenya's postelection violence, it will be the largest share offer in the history of the 54-year-old Nairobi Stock Exchange.

Brad Durham, managing director of EPFR Global, a Boston-based company that tracks frontier and emerging markets, says the African funds EPFR follows saw a net inflow of $256 million in the first 11 weeks of 2008.

The surge, analysts say, is being driven by high global prices for commodities like copper, oil and uranium, which has sparked economic growth in resource-rich countries like Nigeria and Zambia. China's massive investment in the continent has also helped.

According to the IMF, economic growth across sub-Saharan Africa is expected to be about 6.5 percent in 2008.

Still, Durham notes, African stock markets remain tiny in global terms, making up less than 1 percent of most Western investment funds' portfolios. Market capitalizations are modest, according to Databank Group, a Ghanaian investment services firm that covers Africa: Kenya's market is worth $14.05 billion, Malawi's $1.38 billion and Uganda $16.32 billion.

Questions about transparency still abound, including whether African stock markets outside South Africa are developed enough to absorb major investments.

Foreign investment firms still rank most African markets as "high-risk." T. Rowe Price's Rohm says that political instability remains the top risk for investing in African markets, despite recent democratic trends.

Oversight varies. Zambia, for instance, has its own Securities and Exchange Commission, set up with help from the World Bank and donors. Among conditions set for listing, companies have to have a history of making profits for at least three years.

An International Monetary Fund analysis of African stock markets last October said "supervision by regulatory authorities is often far from adequate."

Stock markets are becoming an important tool for small businesses in countries like Zambia, where bank loans remain expensive and difficult to obtain.

Zambia's stock exchange emerged as part of a wave of market-opening measures that followed the country's transition from one-party rule to multiparty democracy in 1991. As the country sold off formerly state-owned businesses - including the country's lucrative copper mines - the exchange opened its doors in 1994, with assistance from the World Bank.