African Business and Economy News

[SE9]

It seems as if the old thread has disappeared :( (I've searched for 15 minutes)

If anyone sees it, just bump it up, and I'll continue posting there.

[SE9]

'Doing Business' has released a report, ranking countries worldwide by 'best place to do business' (without regulations etc).

Of the African countries, the top-7 order goes:

1. South Africa
2. Namibia
3. Kenya
4. Zambia
5. Malawi
6. Mozambique
7. Zimbabwe.


(news article from a Kenyan perspective)


Kenya best place to do business in E. Africa


Kenya has the most conducive environment for doing business in East Africa, according to Doing Business 2006, a new report released by the International Finance Corporation.

The country is ranked 68th out of the 155 countries in the listing ahead of Uganda, Rwanda and Tanzania, which took positions 72, 139, and 140 respectively. Burundi is in position 143.

The listing shows that Kenya ranks third in Africa behind Namibia and South Africa and is closely followed by Zambia, Malawi, Mozambique and Zimbabwe. Five African countries – Congo, Burkina Faso, Central African Republic, Chad and Sudan are at the bottom of the list in that order.

The five countries that top the rankings are New Zealand, Singapore, the US, Canada and Norway in that order.

However, the publishers say having a high ranking does not mean that a country has no regulations. "Few would argue that it is every business for itself in New Zealand, that workers are abused in Canada or that creditors seize debtors’ assets without a fair process in the Netherlands," says the report.

And to protect the rights of creditors and investors, as well as establish or upgrade property and credit registries, more regulation is needed to have a high ranking.

The higher rankings also do not necessarily mean better regulation but are associated with better economic and social outcomes, says the report, singling out court procedures for resolving commercial disputes as a key influence on businesses.

But to ensure fair processes, some procedural requirements are necessary, and these may cause delays.

Likewise, there are trade-offs between job protection and labour market flexibility.

A high ranking on the ease of doing business, however, does mean that the government has created a regulatory environment conducive to business operations.

Often, improvements on the Doing Business indicators proxy for broader reforms, which affect more than the procedures, time and cost to comply with business regulation and the ease of access to credit.

Such improvements are also associated with an expanded reach of regulation, as simpler and less burdensome rules may entice informal businesses to join the formal sector.

[kronik]

Africa seeks $17-bn Indian investment (http://www.financialexpress.com/fe_full_story.php?content_id=141496)

A high-level African delegation, comprising of government officials and members of the industry, will visit India next month. The group will seek Indian investments to the tune of over $17 billion in 300-odd projects in Africa.

According to sources, the 350-member delegation will, apart from seeking investment, ask for technology support from India Inc in sectors like oil, infrastructure, telecom, agriculture, mining, education, construction, food-processing, IT (hardware and software) and healthcare—in 16 African countries.

Of the African countries keen to attract Indian investment, Togo tops the list with $4.62 billion, followed by South Africa ($4 billion), Ghana ($3.73 billion) and Nigeria ($2.6 billion), according to the Confederation of Indian Industry (CII). The other countries wooing India Inc in a big way are Zambia ($1.31 billion) and Ethiopia ($580 million). Of the 281 projects worth of $11.26 billion discussed in two Indo-African conclaves last year, projects worth $323 million are under execution.

“The biggest problem faced by Indian exporters in Africa is delay in payment. Another problem is that except for South Africa, there is no regular shipping lines for other countries. Moreover, there is a lack of awareness about opportunities in that continent,” DG of Federation of Indian Exporters Organisation Ajay Sahai said. Said CII director (Africa) Shipra Tripathi, “Instability is limited to countries like Sudan, Ivory Coast and Congo. But the rest of Africa is peaceful. Countries like Botswana have a Standard and Poor’s credit ratings equivalent to some European nations. Besides, the return on investment in Africa is more.”

The government has instructed Export Credit Guarantee Corporation of India to be liberal in extending insurance coverage to those trading in these countries. Besides, the Exim Bank has extended line of credit.

[You are to blame]

'Doing Business' has released a report, ranking countries worldwide by 'best place to do business' (without regulations etc).

Of the African countries, the top-7 order goes:

1. South Africa
2. Namibia
3. Kenya
4. Zambia
5. Malawi
6. Mozambique
7. Zimbabwe.


(news article from a Kenyan perspective)


I wonder why hey rank Zimbabwe 7th?

[SE9]

Beats me!

http://nationmedia.com/dailynation/images/daily_nation_banner.jpg http://i.today.reuters.com/images/logo.gif


KenGen heads index of Africa's top 40 stocks
Publication Date: 10/5/2006


KenGen led African stocks in the weekly Africa 40 Stock Index published by Reuters.

The index, however, excludes South Africa regarded as the most advanced on the continent.

Also among the top five for the second week running was Kenya Airways, coming in third after KenGen and Telecom Egypt.

Methodology

Moroccan stocks, led by dairy firm Centrale Laitiere, were the main losers in the week ending September 28, according to Nex Rubica data released on Wednesday.

he table is based on the Nex-Rubica Africa 40 Index of African equities.

The index stood at 1,275.78 on September 28, after hitting an intraweek high of 1,280.12 on September 22. It ended the previous week to September 21 at 1,280.12.

The Nex-Rubica methodology ranks shares with a minimum market capitalisation of $500 million (Sh36.5 billion) and a free float of greater than 25 per cent within each issuer.

It is a free float adjusted, market capitalisation-weighted index that aims to capture over 50 per cent of the (publicly available) total market capitalisation of stocks on the continent.

It applies cross-ownership and local legal restriction screens to stocks with a market cap greater than one per cent of each country's total.

Component companies are adjusted for available float, unavailable strategic shareholdings and limitations to foreign ownership.

Reuters

[Matthias Offodile]

Foreign Reserve Now Above $40bn

From Kunle Aderinokun in Abuja, 10.11.2006


Governor of the Central Bank of Nigeria (CBN), Prof Charles Soludo, yesterday disclosed that the country’s external reserves is now above $40 billion.
But Lagos State Governor, Asiwaju Bola Ahmed Tinubu, is not very comfortable with the news saying, rather than accumulate reserves and keep them in foreign accounts, the Federal Government should release the monies to the three tiers of government for developmental projects and programmes that would pull the ordinary people out of poverty.
Speaking at the 36th Annual Conference of the Institute of Chartered Accountants of Nigeria (ICAN), Soludo said the nation’s external reserves net over $40 billion, even after the payment of over $30 billion foreign debt to exit the Paris Club of creditors.
He also said Nigerian banks are now becoming stronger and are now receiving inflows from foreign banks.

“When we started the reforms, none of them was in the top 1000 in the world. As at the end of last year, nine of them are now in and I tell you, by the end of this year when they now take into account the new capital bases of these banks, my prediction is that no less than 15 of them would be in.
“We are not looking at top 1000. Our goal is not the top 1000, we are looking at the top 50 to 100, and I believe this economy has the capacity to get there.
“The deposits in the banking system have actually more than tripled from last year to now. All those who predicted doom, I think they better look at the numbers and see that the Nigerian banking system has turned the corner. There is no better time to invest in the economy than now.
“FDIs in Nigeria is on the surge particularly for tenor inflows. We now discovered that all the Federal Government bond issued, all the instruments are now heavily oversubscribed.
“Foreign investors are investing in Nigerian instruments massively to an extent that we are even beginning to worry a little bit about over exposure. Historically, every country that has received 5 percent of its GDP per annum in foreign investments, consistently for a long period of time, has invariably suffered from one financial crisis or the other at some point. And so we are watching the development. This is principally because the returns on investment in the country are actually one of the highest in the world”, Soludo said.
However, the apex bank boss canvassed for the establishment of commercial courts that would deal with commercial banks’ disputes, especially as it relates to loan default.
He disclosed that President Olusegun Obasanjo would next week convene a special meeting that will seek on the way to establish such.
According to him, “commercial courts that will actually be dedicated to dealing with nothing but commercial issues. When a bank gives you a loan and you refuse to pay, they don’t take you to the same court that tries murder cases etc… We need commercial courts and the President is convening a special meeting on this next Tuesday because justice delayed is justice denied.”
Meanwhile, Governor Tinubu who spoke on “Economic Development and Empowerment: Public and Private Sector Initiatives”, during the Plenary Session at the ICAN conference, totally disagreed with the policy of piling up external reserves at the expense of some Nigerians whom he said are “wallowing in poverty.”
He said: “I want to disagree with the CBN Governor, Professor Charles Soludo, on the issue of reserves. Don’t lock up the money in reserves, spend it. Let’s spend our way out of poverty. The Federal Government should stop being the store keeper without the inventory card.”
He said there should not be anything called excess revenue saying all monies realised should be accounted for, in the spirit of transparency and accountability. If you are talking about transparency and accountability, you must talk correctly. You must practice what you preach.”
On the recent performance of the National Economy and the impact on Nigerians, Tinubu said the economic indices reeled by the Federal Government, even though portray positive economic situation, ordinary Nigerians are not feeling the positive impact as they are still groaning in hardship.
“The news from official federal sources, including Mr. President’s recent national day broadcast is that the various economic indices point to a considerable remarkable economic recovery, which is projected to be further strengthened and deepened by the plethora of projects in the pipeline.
“There is no denying that there has been some progress in the last seven years. Oil price have been at sustained high and often record levels for much of the period”, he said.
“Clearly, there need to be greater involvement in the economy by the people. The key empowerment for people comes in the form of jobs. Therefore, unless and until the economic initiatives undertaken by government create substantial new jobs in addition to retaining existing ones (in the public and/or private sector), people will feel left out, and unconvinced of the benefits of the ongoing economic programme, no matter the rosy picture that the statistics may paint”, he added.
In her keynote address, ICAN President, Dr. (Mrs.) Catherine Okparaeke said the institute was delighted by the ongoing economic reform programme and its successes.
According to her, “we note with delight and indeed, commend the remarkable progress so far made particularly with the revolution in the telecommunication industry, the debt forgiveness, the consolidation in the banking sector, the introduction of the due process mechanism, the growth in external reserves, the first ever national investment and risk rating, the privatisation of public sector parastatals, the trend towards the professionalism of the public service, the creation of SEVICOM, the cassava revolution , the anti-corruption crusade, the war against financial crimes, the shift of emphasis from oil to solid minerals.”


PS: WHAT DO YOU THINK? SHOULD NIGERIA´S FOREIGN RESERVES BE SPENT OR KEPT FOR HARD TIMES?

[kbboy]

Better Invest it in industrialization and education... that would do well for the country. But definitely not in luxurious projects or non-development expenditure.

Nigeria has lots of oil. It doesnt need that much of foriegn reserves. Now it is the right time to its industry and balance/diversify its revenues.

[Matthias Offodile]

kboy, I think that Nigeria´s foreign reserves are OK. at first glance but small for a country the size of Nigeria. If Angola, Namibia, Gabon, Botswana, Mauritius etc. had more than 40$ billion dollars in foreign exchange reserves, it would be a true bonanza for those countries, but for countries such as Egypt, Nigeria, South Africa or Lybia 40$ bn is nothing more than a drop in the ocean, honestly said. Just look at the massive foreign exchange reserves of Russia, India or not to speak of China or the GCC countries.......
Personally, I think that Nigeria has done good for the first time in history to build up foreign reserves instead of spending it senselessly on stupid so-called "white elephant" projects. It should continue to build up foreign exchange reserves, when Nigeria transcends the $150bn or $200 bn dollar mark, Nigeria´s economic weight on the world stage will increase tremendously.... but that is still a long way to go......

[Matthias Offodile]

Correction: (...)but for countries such as Egypt, Nigeria, South Africa or Lybia 40$ bn is nothing more than a drop in the ocean(...)"

Take out Lybia, and reduce it to the Three Big Ones: South Africa, Nigeria and Egypt! so the sentence should be:" If Angola, Namibia, Gabon, Botswana, Mauritius etc. had more than 40$ billion dollars in foreign exchange reserves, it would be a true bonanza for those countries, but for countries such as Egypt, Nigeria or South Africa 40$ bn is nothing more than a drop in the ocean, honestly said."

[Tbite]

well said

[kbboy]

Do you really know of the huge amount of debts of Russia,China and even the US?

I agree spending senselessly is a waste of resources. But what i suggested was concrete steps to get the basics right. I mean all the 3 countries i have mentioned take huge amounts of loans to get the infrastructure and education strong. These things pay in the long run.

You might check it out on the net on the debts of these countries.

Actually what makes 3rd world countries so poor (relatively to developed countries) is the fact that they spend the loan money on non productive sectors. Like billions is spent on so called 'powerty reduction' on the advise of IMF and WORLD BANK. Most of it goes into complete waste and there is no powerty reduction whatsoever.

Actually i consider these institutions to be front end tools of big nations. First they convince you that they are lending you money to help you, then dictate on how to spend the money. Once the country becomes overburdened with debt.. there is no way out... and the cycle begins. You borrow more money just to pay of interest/installmenst of the previous debt and that country is ruined forever and is bound to bow to every demand of these 'super powers'.

[Mwafrika]

· Project pledges 1.2m hand-powered machines
· Gadafy's son aims to set up first 'e-democracy'

Brian Whitaker, Middle East editor
Thursday October 12, 2006
The Guardian


Libya could become the first country to provide every school-age child with a laptop computer and internet connection under a scheme supported by the UN Development Programme.
In a £134m deal with One Laptop Per Child (OLPC), an American non-profit group, Libya will acquire 1.2m computers with internet connection.

The deal, reported by the New York Times yesterday, follows a visit by computer scientist Nicholas Negroponte to Colonel Muammar Gadafy last August.

Mr Negroponte, who founded the Media Lab at Massachusetts Institute of Technology, is chairman of OLPC, which aims to provide laptops for children in developing countries that cost $100 (£54) each. The specially designed laptops will have a rugged case and a sealed rubber keyboard to keep out dust and water.

In an effort to eliminate the parts most likely to go wrong, the designers have dispensed with a cooling fan and replaced the conventional hard disc with a flash drive.
Col Gadafy's son, Saif al-Islam, has talked of turning the country into the first "e-democracy", with citizens participating electronically in government decision-making.

Last August, Saif al-Islam - who is regarded as a likely successor to his father - spoke of wiring-up the country with optical fibres, mobile networks and computers in every home to provide "electronic government" where Libyans can interact with officialdom.

OLPC has also reached tentative purchase agreements with Argentina, Brazil, Nigeria and Thailand.

In his meeting with Col Gadafy, Mr Negroponte discussed the possibility that Libya might fund laptops for poorer African countries such as Chad, Niger and Rwanda, according to the New York Times.

It is possible that Libya will become the first country in the world where all school-age children are connected to the internet through educational computers, he told the newspaper. "The US and Singapore are not even close," he said.

Test versions of the computers will be distributed to the participating countries in November, with mass production by the Taiwanese manufacturer Quanta expected to begin next year.

These computers will rely on free software, such as Linux rather than Microsoft's Windows to keep costs down.

They will also need about 10% of the power of normal laptops, OLPC says. "The power supply is tolerant of almost any voltage you might have at hand for charging, either from a human powered generator or a car or truck battery ... under typical use, the computer should last the entire school day without requiring charging.

"Our goal is to provide children around the world with new opportunities to explore, experiment, and express themselves.

"Laptops are both a window and a tool: a window into the world and a tool with which to think."

OLPC was initially funded by technology companies, including Google and eBay, but Intel and Microsoft have been sceptical about the project.

[coth]

kbboy, russia has very small debt and china is much smaller in percentage to gdp.

[Tbite]

The Inga Dam which is currently under construction in Congo, has the potential of producing a whooping 39,000 megawatts of electricity, Nigeria which already has a couple of projects like the mambilla scheduled for completion next year is intrested in the Inga Dam, Nigeria which as been supplying 98% of Niger's electricity demands for 40 years is familiar with the power pool concept, Nigeria is also planning on building a transmisiion line from Congo to Nigeria and from Nigeria to the Benin republic and Ivory Coast, and potentially even to Burkina Faso, Congo has a huge Hydro-electric potential it's Government are keen to provide partsof Central Africa na dwest Africa with electricity in turn for money

[You are to blame]

Rwanda's expansion will slow to 6% - central bank October 12, 2006

By Arthur Asiimwe

Kigali - Rwanda's economy would grow by 6 percent this year, easing from 6.5 percent year on year because of drought conditions hampering the agricultural sector, central bank governor Francois Kanimba said yesterday.

"Agriculture performance has almost declined by 3 percent due to poor rains, but the manufacturing and service sectors will grow by over 10 percent this year."

Rwanda registered 6.5 percent growth in gross domestic product (GDP) last year, riding mainly on improved coffee prices on the international market and better rains.

For the past five years Rwanda's economy has grown at an average rate of 7 percent.

But a two-year energy crisis has started to take its toll and drought in parts of Rwanda's eastern and southern provinces have hit the agricultural sector, which contributes up to 45 percent of GDP.

Exports grew by 9 percent in the first eight months of the year compared with the same period in 2005 as increased coffee and tea volumes fetched higher prices.

Rwanda's coffee industry is expected to earn $50 million (R385 million) this year and tea $38 million. Other growth areas in the economy include beer production, construction, tourism and telecommunications.

But food shortages and persistent energy crises drove inflation up to 9.2 percent this year from 7 percent last year, Kanimba said. "Prices of food items have been hiking on a daily basis."

Rwanda's banks, laden with non-performing loans stemming from the country's 1994 genocide, were steadily recovering because of a new wave of banking sector reforms, he said.

Non-performing loans had fallen to 22 percent this year from 40 percent in 2003, thanks to information sharing about bad borrowers among commercial banks.

By the end of the year, minimum share capital for existing and new commercial banks will be raised to $7.2 million from $2.7 million to boost competitiveness.

"Those that fail to adhere to this new regulation will be obliged to merge or close," Kanimba said.

The central bank would introduce a capital market next year for long-term bonds capable of financing bigger companies and the government. - Reuters

http://www.busrep.co.za/index.php?fArticleId=3481909&fSectionId=604&fSetId=662

[You are to blame]

Firm discovers more oil in Uganda
Posted Thu, 12 Oct 2006

Kampala - Tullow oil and Heritage Oil, partners in exploration area 3A, expect up to 500 million barrels of oil at the Kingfisher well in Hoima, Uganda.

“Based on the success of the well to date, Tullow oil and its partner Heritage Oil, hope to find up to 500 million barrels of oil,” Tom Hickey, Tullow’s chief financial officer, said.

The company announced that the joint venture had found oil and gas after drilling just 2 000m of the projected 4 000m.

“Discovery of oil and gas at this point justifies the group’s decision to target Uganda, which has been relatively unexplored.

Hickey stressed that the positive signs would have no direct bearing on what the group may encounter at 4 000m.

“But based on the current indications, Tullow and Heritage are hoping to discover a well containing up to 500 million barrels of oil,” Hickey said.

He said if the well delivers the expected amount, this would double Tullow’s total oil reserves overnight and add significantly to its revenue stream and earning potential in the years ahead.

The group’s shares have already shot up by 4.8 percent after the find.

The joint venture would carry out tests to establish whether the oil could flow out of the ground, its quality and quantity.

This would start within a month at four levels. It was scheduled to take up to three weeks.

Meanwhile, Hardman resources, which was exploring block 2 with Tullow, released said on Wednesday that they had signed a memorandum of understanding with the Ugandan government, relating to the investment plans for exploration area 2, where they recently found huge volumes of commercially exploitable oil.

The memorandum includes commitments by the joint venture partners and the government to advance appraisal and development activities to realise the full potential of discoveries on block 2 and provide time to explore the rest of the block.

According to the statement signed by Simon Potter, the chief executive officer, the next oil well to be explored in November would be Nzizi, to the south of Mputa-1.

The joint venture would also undertake further studies to ascertain the volume of the existing discoveries as well as explore the northern area of the block to identify prospects for drilling in 2007 and 2008.

They would also evaluate the most effective manner to drill offshore prospects around Lake Albert by the end of 2007. -AND

http://www.businessinafrica.net/news/east_africa/276123.htm

[SE9]

Grand plan for wealth

A national plan to make Kenya as wealthy as the rising stars of the Far East like Singapore, Thailand and Malaysia was unveiled yesterday.

http://www.nationmedia.com/dailynation/images/news/frontindexins13102006.jpg

The strategy targets an annual growth rate of 10 per cent for the next 25 years, which would see individual incomes rise more than six times over from the current Sh33,120 a year to Sh220,680 a year.

In addition the country's Gross Domestic Product (GDP) – an indicator of the nation's wealth – would grow from Sh1,123 billion a year to Sh12,168 billion.

The plan – called Kenya Vision 2030, Transforming National Development and led by the National Economic and Social Council – is to be launched by President Kibaki on October 26.

It is based on the premise that the so-called Asian Tigers of Singapore, Thailand and Malaysia were at the same stage of development as Kenya was 30 years ago, yet catapulted themselves to industrialised and modern economies within a generation.

The project will be spearheaded by a national steering committee chaired by the President and comprising members of the National Economic and Social Council. It will be the main decision-making team of the Vision 2030 project and will meet every four to six weeks.

Vision 2030 committee

Implementation will be handled by a committee chaired by the head of the public service and made up of permanent secretaries from key ministries, meeting every three to four weeks. It will be supported by a core technical team of key managers from the public sector backed by external experts to be hired as required. It will meet continuously.

Support for the project will be provided by a ministerial Vision 2030 committee of five-seven Cabinet ministers and it will be managed on a daily basis by a project director. Already, the council has interviewed several candidates and has evaluated bids from leading international consulting teams, some with experience in the programmes that transformed Singapore and Malaysia.

The plan was unveiled to media owners and editors at Nairobi's Grand Regency hotel yesterday by, among others, Civil Service head Francis Muthaura, Planning permanent secretary Edward Sambili and Dr Wahome Gakuru, director of the National Economic and Social Council.

Mr Muthaura said Kenya has in the past had two long -term policies and several five-year development plans that had guided planning and investment.

The first was Sessional Paper No 10 of 1965 on African Socialism and Its Application to Planning in Kenya, and the second was the Sessional Paper No 1 of 1986: Economic Planning Management for Renewed Growth.

These attempted to confront the country’s most entrenched problems by charting a vision of how development would tackle them.

While the economy grew by an average of six per cent over 1964-1980 and 4.1 per cent over 1980-1990, the period 1990-2002 saw a fall in individual incomes with GDP growth of 1.9 per cent against a population growth of 2.9 per cent.

Mr Muthaura said since 2003 Kenya had made a tremendous effort to get the economy back on track, with a growth in the GDP of 5.8 per cent last year.

He said: "The challenge we now have is to consolidate this growth rate and increase it in the long term to make Kenya a middle-income country with high standards of living,"

While Kenya fared well when compared to other sub-Saharan Africa countries, it performed poorly compared to Malaysia, Singapore and Thailand that 35 years ago were at the same stage of development as Kenya. Indonesia was another example of a country that had prospered.

Mr Muthaura said: "These countries have a number of things in common, the most spectacular of which are the strategic visions they formulated and implemented. These visions defined their long-term and and short-term agendas on development priorities."

In these countries, the implementation of their visions was not distracted by changing donor priorities.

Dr Sambili said the Government recognised the vital role the media played in national development, and hence the need to involve it in the vision.

Politics of the day

Mr Wangethi Mwangi, group editorial director of Nation Media Group asked what plans would be put in place to insulate the strategy from the politics of the day, since the General Election was just 15 months away.

He also wanted to know how the vision was going to survive a political transition, given that new governments usually come to office with their own economic agendas.

Mr Muthaura replied that the strategy would be of such high quality that it would be almost universally acceptable and difficult to challenge, even by an new incoming government of a different political complexion.

Industrialist Manu Chandaria said politics should be removed from Vision 2030, adding that economic growth transcended political leanings.

For all Kenyans

Another industrialist, Mr Chris Kirubi, said the vision was not a strategy for political parties, but for all Kenyans.

The media had an important role in galvanising Kenyans to support Vision 2030 because it would ultimately benefit them.

The chairman of Nairobi Stock Exchange, Mr Jimnah Mbaru, asked the media to look at Vision 2030 as an institution like the Bourse, which would always be there regardless of the government in power. No country in the world had ever developed without a clear vision, he said.

Dr Gakuru of the National Economic and Social Council said Kenya's flag and national anthem were two critical galvanising forces for all Kenyans

While the flag reminds us of our common heritage, the anthem gave us a proper moral foundation and commitment.

[You are to blame]

Nigeria: I Regret Nigeria's Wasted Technological Years - Obasanjo

This Day (Lagos)

October 13, 2006
Posted to the web October 13, 2006

Ahamefula Ogbu
Port Harcourt

President Olusegun Obasanjo yesterday expressed regret that considering its capacities before his government took over power, Nigeria has a technological and developmental wasted pasts, due to the systemic rot which pervaded all strata of state enterprise.

He said the Federal Government would in pursuit of its advancing tertiary health system, complete the remaining block in the University of Port Harcourt Teaching Hospital next year, as contained in the 2007 budget.

He urged all players in the oil and gas industry to press for 45 per cent local content by the end of this year, and aim for 75 percent by 2010, which he insisted was achievable.

Obasanjo, who spoke in Port Harcourt, at the re-inauguration of the Eleme Petrochemical Complex, expressed sadness that though Nigeria had the capacity to do what it was doing currently in the past, such opportunities were never taken advantage of, and called Nigerians to brace up to cover the lost time.

He said the event was a vindication of his trips abroad to look for foreign investors, pointing out that it was at one of such trips that he met core investor in the company, Indorama, which has finally turned around the company into a viable productive venture.

According to him, he invited the Indonesian firm, which he had promised a conducive investment climate, and enthused that he was right, since the move has within 12 months, turned around a company which had been moribund for over 10 years.

"In an occasion like this, the feeling that comes to me is that of a mixed feeling, because when I remember the past, it reminds me and should remind you of the wasted past. That we can do it should rekindle in us a feeling of hope, a feeling of pride of what Nigerians can achieve," he said.

"Today's even is another milestone to vindicate our desire for industrial growth. While it is not time to lament our past, we are proving that with a well thought out development and production plan, we can advance", he said.

He charged the company to spread the news that Nigeria was safe for investment and promised a good return on their investments. He advised the company to go into other areas of production which are in the same chain with what the complex produces.

Rather than complain that they would have done better in National Fertilizer Company of Nigeria (NAFCON), he asked the company to push for optimal production and expansion which may then include setting up a fertilizer plant with which they can run NAFCON out of business.

According to him, he would like to see Indorama go into the oil and gas sector which was an offshoot of the plant by increasing in related capacities.

President Obasanjo directed the Nigerian National Petroleum Corporation (NNPC) to buy into the Petrochemical Company just like the Rivers State government has done, adding that they had a stake which they should consolidate in the company.

Speaking at the occasion, Governor Peter Odili of Rivers State told the President that following his advice on wise investment, he acquired 10 percent of the shares of the company and expressed happiness that it was a rewarding investment.

In his welcome address, Chairman of Indorama, Mr. Sri Prakash Lohia said they would employ over 13,000 people in the complex and have as at present, a manufacturing capacity of 25,000 tons of petrochemical products daily which is nearing full capacity but regretted that supply of gas was posing a problem to them.

He said they aim to place Nigeria as a major petrochemical hub in the African continent as they aim to ear over $400 million in foreign exchange from their products.

Director General of the Bureau of Public Enterprises (BPE), Mrs. Irene Chigbue traced the path of Indorama taking over the complex, saying that they paid the $225 million price for the complex in addition to another $80million used for the turn around maintenance of the facility.

Managing Director of NNPC, Engineer Funsho Kupolokun said selling the complex to Indorama was a good deal as the taking over of the company was with a zero job loss since 300 of those engaged there went back to the NNPC while another three hundred were still on secondment to the company.

The President later commissioned the UPTH where he said that his administration hopes to complete most projects they have started in the health institution before its exit date since he regarded the sector as being germane to the immediate needs of the country.

He advised the hospital to imbibe good maintenance culture so that they would prolong the lifespan of the machines in the hospital which he described as sophisticated and expensive.

He later commissioned an all made in Nigeria oil platform at Ogbogoro where he charged the Chevron/NNPC Joint Venture which is behind the feat to press harder for increase in local content.

President Obasanjo said that when he directed for the target of local content before a certain date, some people laughed at his projections which he said has been met and almost surpassed.

He later commissioned the Meji Riser platform which weighs 525 metric tones and charged the Transcoastal-Waos Fabrication Yard which handled the construction to try to build something bigger since they have the capacity to build 100,000 metric tones weight.

http://allafrica.com/stories/200610130705.html

[africa500]

Efroze Chemical Industries has announced it will set up a pharmaceutical plant, and marketing and exporting firm in Sudan in the next three years.

The House of Medicine Sudan and Efroze Chemical Industries signed a Memorandum of Understanding recently aimed at establishing an elite pharmaceutical manufacturing company which would provide life-saving medicines and drugs to poverty-stricken African countries.

Efroze, which started export operations in 1992, is contributing $1 million to the country’s exports.

New markets explored by the company were Myanmar, Bangladesh, Sri Lanka, the Maldives and Singapore in the Far East and Kenya, Nigeria and Sudan in Africa.

Efroze has entered into lucrative markets of Uzbekistan, Kyrgyzstan, Kazakhstan, the Russian Federation, Ukraine and Belarus and by 2003 it had exported its products to 20 countries with over 200 registrations.

[africa500]

Sudan now Africa's third largest oil producer (11/10/06)
Sudan, which only started exporting oil in 1999, during this year has become sub-Saharan Africa's third largest oil producer, only surpassed by Nigeria and Angola.




Peace between the North and South has enabled Sudan to produce around 400,000 barrels per day (bbl/d) of crude oil by now, with government plans to increase this to 600,000 bbl/d by the end of the year. With large undeveloped fields, exports are set to boom.

New statistics presented by US state agencies today indicate that Sudan already has become a bigger oil producer than Equatorial Guinea (330,000 bbl/d), Congo Brazzaville (244,000 bbl/d) and Gabon (237,000 bbl/d) - countries that have shifted on holding sub-Saharan Africa's third place among oil producers during the last decade.

Only Nigeria (2.2 million bbl/d) and Angola (1.4 million bbl/d) produce more oil in sub-Saharan Africa.

Also in a North African context, Sudan's oil production is becoming significant. Algeria is estimated to have an oil production of around 2.1 million bbl/d, including condensates and natural gas plant liquids, while Libya's oil production is around 1.8 million bbl/d - both countries experiencing rapid production growth. Meanwhile, the Egyptian oil production is currently estimated at 579,000 bbl/d, being on a downwards trend since the mid-1990s. Sudan will soon surpass its northern neighbour.

By conservative estimates, Sudan's current oil production is at 382,000 bbl/d, according to figures from the US agency Energy Information Administration (EIA). In 2005, Sudan's crude oil production had averaged 363,000 bbl/d, and rapid growth was registered. It is therefore possible that the Sudanese oil production already has hit the 400,000 bbl/d threshold, sources indicate.

Numbers on Sudanese oil production always are insecure as the Khartoum government and major oil companies operating in the country avoid publicity and do not hand out complete data. Oil production in Sudan is a sensitive issue due to US sanctions against the country and "genocide complicity" allegations against oil companies involved there made by US courts.

Sudan only started producing and exporting oil in July 1999, with the completion of an export pipeline that runs from central Sudan to the Red Sea port of Bashair. North American and European companies have been strongly discouraged from taking part in Sudan's oil adventure - especially by Washington - leaving Sudan open to Chinese, Indian and Malaysian investors. China National Petroleum Corporation (CNPC), India's Oil and Natural Gas Corporation (ONGC) and Malaysia's Petronas are now the biggest players in Sudan's oil sector.

According to the 'Oil and Gas Journal', Sudan contained proven conventional reserves of 563 million barrels in January 2006, which is more than twice the proven estimates of 2001. The Sudanese Energy Ministry estimates total oil reserves at five billion barrels. Exploration efforts have so far covered only a few parts of the country.

Due to civil conflict, oil exploration has been mostly limited to the central and south-central regions of Sudan. Production is centred on the areas bordering the Khartoum-held north and the autonomous government of South Sudan, a region that finally has found peace and thus allows for stable oil production and investments at a larger level.

But the Chinese also operate larger oil fields between the regions of Kordofan and Darfur - both under Khartoum's control - which are close to the Darfur conflict area. Sudanese sources estimate that Darfur and Kordofan may be the areas richest in oil in the entire country. It is further estimated that vast potential reserves are held in the desert regions of north-western Sudan, the Blue Nile Basin, and the Red Sea area in eastern Sudan.

The expansion of the Sudanese oil production is going very quickly, with major investments flowing into the country from Hina's CNPCs. According to local sources, it is the large and controversial concession of Block 6 that is currently experiencing the largest Chinese investments. Block 6 is partly located in Darfur. During the last few months, CNPC has been able to increase the production on Block 6 from 10,000 to 40,000 bbl/d.

With the large increases on Block 6 - but also in South Sudan, where North American oil companies meanwhile are able to participate - Sudan's oil production by now probably already is at around 420,000 bbl/d. Khartoum is therefore on a steady road to reach the production target of 600,000 bbl/d it has set for the end of 2006.

Khartoum and the autonomous government of South Sudan - which have signed a revenue-sharing deal on oil production in the south - can make good use of the booming incomes. Since November 2005, oil revenues have streamed into the empty pockets of the South Sudan government, which is in the process of establishing entirely new state structures in a vast region plagued by warfare for over two decades. Revenues are to help finance rebuilding of health and education services.

Also the Khartoum government strongly needs these extra revenues, especially as Western countries increasingly have isolated Sudan. Despite sanctions against Khartoum, the country's GDP grew by 6.4 percent in 2005 and is expected to grow 5.7 percent in 2006, mainly driven by the oil industry. Currently, 70 percent of Sudan's total export revenues come from oil exports, according to EIA.

[Matthias Offodile]

Harrods, Wal-Mart, Marks and Spencer and others head for Tinapa City



Businessday Mayl 13th, 2006

World famous department stores, Mac-Donalds, Wal-Mart, Harrods, and Marks and Spencer, among many others, have indicated very strong interest in the $450 million dollar Tinapa City project currently under construction in Calabar, regarded as Africa's premier business resort.


The foray by these world retail market players into the Nigerian market is in response to the commitment of the Cross River State government to the completion and commissioning of the first phase of the project by December 2006.

According to the executive governor of the state, Donald Duke, whose administration is providing the infrastructure for the project, largely funded by private sector players, Tinapa will be ready by December 2006. The final kitting by the major shop owners and operators will however, be completed by March 2007.

When phase one of the project is completed, the specific components that will form the foundation of the development of a leisure tourism market in Nigeria would have also been firmly rooted. Some of these components that would be visible in the first phase of the project will include a mega shopping complex comprising four wholesale emporiums, 450 retail outlets, a huge food court with take - away outlets, an administrative centre, a commercial sitting area, and a parking lot for approximately 4,000 cars and coaches.

According to information from the project site, there will also be an "entertainment strip" leading out of the shopping complexes.

This, BUSINESSDAY learnt, would feature a big casino of world-class standard, several restaurants, two cinema complexes with cinemas ranging from 104 to 340 seats each, a games arcade and twenty-pin bowling alley, a children's play area and a fisherman's village with numerous themed bars, night clubs and a traditional African arts and crafts village.

Duke confirmed in Calabar, weekend that the phase one aspect of the Tinapa project would be home to two 300-room budget hotel, leisure land and waterworld facility, wave pool, lazy river ride, picnic area, tennis courts, life guard tower, kiosks, change room facilities, volley ball courts, management offices, among other numerous facilities.

According to the project scheme, the second phase of the world-class business resort is envisaged to include a hotel and conference complex with a 200- room branded international four star hotel, a conference centre with a main ballroom seating up to 2,000 delegates, business and fitness centres. Also, it is designed to feature three boutique stores, expansion of leisure and entertainment facilities fitted with a quad biking track, an archery range and a fisherman's wharf, among other features.

Duke said the third phase of the mega project will cover the construction of a 150-room branded international four-star hotel, a luxury beach lodge with 30 -units, a luxury bush lodge, agritourism and ecotourism. When the Tinapa project becomes functional there would be a mutual driving and sustenance of tourism which the Cross River state government has taken with Agriculture as major footwalk in the effort to power growth and development in the state.

[Matthias Offodile]

Kia, Korean auto giant to establish assembly plant in Nigeria

By Moses Ebosele, Transport Reporter

Businessdayonline 21/04/2006

AFTER over two decades in the woods, a fresh breath of air may offer elixir to the nation’s slowly recovering automobile producing sector with Kia Motor Corporation of South Korea concluding plans to commence local ‘trial production’ in the country.

Already, Kia, which won several local and international awards for its technology and marketing initiatives, in the last five years, has secured a parcel of land in Lagos for its plant, with 2007 as the target full production date.
The development is coming on the heels of a memorandum of understanding (MOU) signed between Ogun State Government and COMIL a Brazilian auto firm for the establishment of another assembly plant in the state.
Kia has confirmed its intention to the Federal Ministry of Industry and National Automotive Council (NAC) on the local production scheme expected to also bolster allied industries in the automotive sector.
Speaking at an interactive session with journalists, national co-ordinator of Dana Motors sole representatives of Kia Motors in Nigeria, Dinesh Tanwani disclosed that the firm recently imported completely knocked down (CKD) components for the ‘trial production’ of four Rio at the location situated in the Amuwo Odofin area of Lagos.
Accompanied by Ben Chukwurah and Bedford Bokromo, corporate affairs manager of Dana and managing director of Eagle Eye Company respectively, Tanwani said that Kia Motor Corporation was particularly motivated to embark on the project because of the interest, which the products generated in Nigeria, especially in the last two years.
He added that all necessary structures were being put in place to ensure a hitch free ‘trial production,’ adding that the development was expected to promote affordability of Kia cars.

Kia was one of the first five auto firms in the world, adding that information received around the world indicated that Kia products were doing ‘tremendously well’ in the market.
It was disclosed that necessary structures were being put in place to kick-start the ‘trial production’ by 2007.
“In 2004, we saw the positive effect of a more upscale product mix, moving Kia brand appeal to a broader audience.
“The optimal mid-size Sedan, Sedona minivan and Sorento mid size continued to drive sales, with record gains for the year,” says Peter M. Butterfield, president and CEO, Kia Motors America in a statement.
He adds: “And now as we re-enter the compact SUV market with the all new sportage arriving at dealers in February and begin preparations for the upcoming launch of the redesigned Rio and Sedona this year (2006).”





PS: In the 1970s, Nigeria enjoyed a good boost in the automotive industry worldwide. :cry: The innovative engineering work in the country then resulted in several car assembly plants in the country making more money in export revenue. Peugeot is one of the most popular marques in the country and the success of the industry ensured that the country enjoyed good returns from the export of Peugeot cars to neighbouring countries like Cameroon, Congo, Guinea, Ghana, Benin, Mali etc.
The manufacturing sector is still active but a far cry from what existed in the past. :bash: Some automobile companies are still attractive to investors and the listed ones on Nigeria's stock exchanges are well patronised. However, recently the Volkswagen plant has successfully been privatised. It spew out more than 100 000 units in the 70´s but went horribly downhill under the ghastly years of military dictatorship. Well, let´s see what the new investors brings...:)

[kbboy]

@nigerian forumers

Can anyone quote current prices of new cars available in nigeria? lets say those that are assembled in nigera.

[You are to blame]

Record FDI inflows into Africa not enough
Charles Kazooba
Posted Mon, 16 Oct 2006

Kampala - Although Africa received record high FDI inflows in 2005, the continent’s share remained a paltry 3 percent of global FDI, while some sectors actually lost out.

A world FDI report of 2006 indicates that in the manufacturing sector, a number of trans-national corporations in the textile industry pulled out of Africa because quota advantages for African countries declined after the end of the Multi-fibre Arrangement in 2005.

“Africa’s current share in global FDI remains much lower than it used to be in the 1970s and early 1980s, even though in the past three years that share has once more surpassed the region’s share in the global GDP and exports,” said Ugandan minister for investment, Kiwanuka Semakula, while citing the United Nations Conference on Trade and Development report.

In Africa, rising corporate profits and high commodity prices helped boost inflows in 2005 to a historic high of $31bn, representing a growth rate of 78 percent from $17bn in 2004. The growth rate was higher than the global FDI rate of 29 percent.

FDI inflows as a percentage of Africa’s gross fixed capital formation also increased to 19 percent in 2005. “A large proportion of the 2005 inflows were concentrated in mining and in particular, oil and gas, although there was also investment in services from the United Kingdom, United States of America, South Africa, China, Brazil and India,” the report added. At the same time, however, low skill levels, fragmented markets and a lack of diversification inhibited FDI in manufacturing, the report pointed out.

According to the report, themed ‘FDI from developing and transition economies; implications for development,’ FDI increased in 34 countries in Africa and declined in 19 during 2005. The decline in Africa’s share in global FDI over the past two decades reflects its slow progress in increasing production capacity and diversification and creating larger regional markets. As a result Africa’s per capital inflows were only $34 in 2005 compared with $64 for developing economies as a whole.

The world investment report identified a handful of African countries with the biggest percentage of inflows. “FDI in Africa has traditionally been geographically and industrially concentrated in a few countries. And 2005 was no exception; five countries (South Africa, Egypt, Nigeria, Morocco and Sudan in descending order of value of FDI) accounted for 66 percent of the region’s inflows. South Africa registered the largest inflows with a sharp increase to $6.4bn from only $0.4bn in 2004 or about 21 percent of the region’s total,” the report further highlighted.

Although countries such as Kenya, Mauritius, Lesotho, Swaziland and Uganda had begun to receive FDI for their textile and apparel industries due to the African Growth and Opportunity Act, the report said the trend changed following the end of the Multi-fibre Arrangement. Among other leading recipients in 2005 were Chad, Equatorial Guinea and Sudan along with Algeria, the DRC and Tunisia, many of them oil and gas-producing countries.

In the whole world, the largest recipient of FDI was the UK, followed by the US and then China. Uganda, Libya, Tanzania, Ethiopia and the DRC registered FDI inflows of between $0.2bn to $0.4bn, whereas Burundi, Kenya and Rwanda registered less than $0.1bn in 2005.

Countries that received the least FDI in Africa were mostly Low Developed Countries, including oil-producing Angola, which witnessed a drastic decline in its inflows of 2005. Many of them have limited natural resources, lack the capacity to engage insignificant manufacturing, and, as a result, are among the least integrated into the global production system. -AND

http://www.businessinafrica.net/news/east_africa/290134.htm

[You are to blame]

Ghana's inflation down, growth prospects up
Posted Tue, 17 Oct 2006

Accra – Ghana’s Monetary Policy Committee (MPC) of the Bank of Ghana (BOG) on Monday kept the prime rate steady at 14.5 percent after announcing that headline inflation had dropped slightly in August and then again in September.

BOG governor, Paul Acquah, said that inflation fell to 11.2 percent in August, down from 11.4 percent in July.

Acquah said that favourable food supply and an ease in non-food prices helped slow inflation after it had risen for three consecutive months.

The governor also indicated that inflation for September had fallen to 10.8 percent, but that the BOG had not yet had time to study the figures. He did, however, add that this could show that secondary fuel inflation pressures were waning and that the West African country was returning to a low inflation environment.

Acquah said that “the prospects are thus better that GDP growth could rise to 6.0 percent in 2006 with the economy firmly anchored on the path towards single-digit inflation and growth”. He based this on robust export and domestic demand growth in spite of volatile fuel prices.

http://www.businessinafrica.net/news/west_africa/291903.htm

[You are to blame]

Uganda top FDI earner in East Africa
Posted Tue, 17 Oct 2006

Kampala - Uganda was an FDI front-runner in the sub-region with inflows rising by 16 percent to $258mn in 2005, the East African country’s investment state minister has said.

Ssemakula Kiwanuka said: “This is as a result of the continuing macro-economic and political stability that attracted small and medium size trans-national corporations from Egypt, Kenya, Mauritius and South Africa.”

Kiwanuka was speaking at the launch of the World Investment Report (WIR) of the year 2006 at the Media Centre on Monday.

He was flanked by African Development Bank country operations officer Benedict Kanu and UIA acting executive director Issa Mukasa.

The report under the theme, “FDI from Developing and Transition economies: Implications for Development,” was produced by the UN Conference on Trade and Development and was aimed at helping countries in benchmarking their economic performances.

The report said in 2005, inflows increased in 34 African countries and declined in 19 countries. “Uganda was among the 34 countries that registered an increase. The Uganda Investment Authority registered 284 projects in 2005 that were valued at $878.6mn in planned investment creating 28 698 planned jobs,” he said.

This figures indicated a 110 percent improvement in investment value from 2004. The report said FDI in East Africa fell to $1.7bn from $1.9bn in 2004, and that East Africa attracted the lowest FDI inflows in Africa.

The report states that Africa’s share of global FDI, which remained around 3 percent, was tilted towards primary production, mainly in mining, oil and gas, even though there were significant increases in the services sector, particularly banking.

Inflows in the manufacturing sector, particularly the textiles and apparel industry declined following the end of the quotas established under the Multi Fibre Arrangement. “Uganda’s FDI growth is as a result of increased investment in the areas of tourism, construction and real estate and agro-processing,” Mukasa said.

Kiwanuka said for the industrial base to grow and develop, the value added products need access to the world markets.

“This is why the speedy economic integration of Africa through the EAC, Comesa and the AU (African Union) is vital so as to create bigger economic blocs that are internationally competitive,” he said.

He said it was essential that the necessary linkages between the export sector and the rest of the economy were strengthened.

He said this was why the government was committed to improving and providing infrastructural services through public private initiatives.

Kiwanuka said, “It is absolutely necessary that the political fabric and the public sector commit to creating an enabling environment for private business to prosper.

”The government is very supportive of private investment, as has been evidenced by the continuous efforts at putting in place investment enabling policies.”

http://www.businessinafrica.net/news/east_africa/292058.htm

[Matthias Offodile]

October 20th, 2006

Awka/Ibom, Turkish chambers of commerce to create 300 small-scale industries


The Akwa Ibom State government and Turkish Chambers of Commerce are to establish about 300 small scale industries under a joint business and industrial relations.

Chairman, Nigerian Association of Small Scale Industrialists (NASSI), Gordon Isaac, told the News Agency of Nigeria (NAN) in Uyo that more than 350,000 jobs would emerge from the scheme.

Isaac said modalities for the joint partnership was reached after a two-day meeting of representatives of the Turkish trade delegation and Akwa Ibom Peoples Congress and NASSI in Uyo.

The scheme, known as ``Ibom Turkish Small Scale Industrial Region'', he said, would replicate the Turkish Organised Industrial Region (OSTIM) where all buildings, electrical and industrial materials were produced.

The project, Isaac said, would provide large-scale employment to indigenous engineers, craftsmen, artisans, businessmen and holiday employment to youths.

He said the scheme would be located on the coast to facilitate the evacuation of its products for export. ``The Turkish experience in small-scale industrial development will benefit Akwa Ibom and Nigeria as the Turkish development antecedents and experience are almost similar to that of Akwa Ibom,'' Isaac maintained.

[Harkeb]

Exports to the US soar to $4.9bn
October 23, 2006

Johannesburg - Growth in South Africa's exports to the US continues to accelerate.

Figures released this month by the US International Trade Commission show that in the year to August, South Africa exported goods to the value of $4.9 billion (R37 billion) to the US. This represents growth of 29 percent from the same period last year, up from growth of 25 percent in the year to June.

Of South Africa's total exports in the first eight months, $1.2 billion was exported under the African Growth and Opportunities Act (Agoa) trade programme launched in February 2003. This compares with $989 million last year.

Sub-Saharan Africa's total Agoa exports in the period were worth $30 billion, compared with $23 billion in the previous year.

The programme was designed to liberalise trade between the US and 37 designated sub-Saharan countries. Some of the benefits come from the generalised system of preferences programme, which gives duty-free access to the US market for certain products. It was originally intended to run until September 2008, but has been extended to 2015.

South Africa is the third-largest sub-Saharan exporter to the US. It was outstripped only by Angola, with exports of $7.4 billion over the eight months, and Nigeria, with exports worth $19.7 billion.

Angola's Agoa-related exports were worth $7.3 billion and Nigeria's $18.3 billion. These were almost exclusively energy-related products, including oil and natural gas, according to the Agoa information website.

Mainly through its oil exports, Nigeria accounted for more than half the exports under Agoa, said the website.


The value of exports has been boosted by the rise in international crude oil prices, from about $50 a barrel at the start of this year to recent highs of more than $78. Recently it has traded at about $60.

Significant Agoa exports have also been recorded by Lesotho, Madagascar and Kenya. "However, only a dozen or so of the Agoa-eligible sub-Saharan countries have recorded any significant exports to the US and many recorded less than $1 million worth of US-bound exports in 2005," said the website.

SA Revenue Service figures show that South Africa's exports to the US last year, at R29.2 billion, were about 9 percent of total exports.

Research by the Industrial Development Corporation for the first half showed about one-third of South Africa's exports to the US were platinum group metals, 7 percent were diamonds and 5 percent were cars.

The sharp rise in platinum group metals prices would have contributed to the stronger growth in South Africa's exports. The platinum price began the year at less than $1 000 an ounce, rose to $1 300 in May and fell to close to $1 000 after August.

[Harkeb]

BHP Billiton to drill off SA coast
October 19, 2006

Johannesburg - BHP Billiton, the world's largest resource company by market capitalisation, says it will begin drilling for oil and gas off South Africa's West Coast, in the next calendar year.

In a presentation to investors and media on Thursday morning, recently appointed president of the group's petroleum division, Mike Yeager, shed some light on some of the group's gas and oil exploration projects around the world.

Included were offshore exploration blocks in Namibia, at 29 000 square kilometres, and South Africa, at 50 000 square kilometres.

"We are optimistic that we will be ready to drill a well next year if everything goes according to plan," said Yeager, adding that discussions are taking place with government on certain terms for the project.

According to the Petroleum Agency of South Africa's website, Billiton owns two offshore licences on the West Coast, one evaluating the deep water oil potential and another, with Sasol Petroleum International, evaluating shallow water gas potential.

Yeager says evaluations will also take place to decide if the final product will be for domestic use or for export.

In Namibia, the company is not yet at the drilling stage yet, according to Yeager.


Petroleum, a division that Billiton's smaller rivals do not have, contributed 20 percent to the company's earnings before interest and tax in the financial year to end-June.

According to the most recent BHP Billiton annual report, oil prices have almost doubled from an average of $33.69 per barrel in financial 2004 to $64.41 per barrel in the year to end-June 2006.

The company produced 116 million equivalent barrels of oil in the year to June. In the quarter to end-September, Yeager expects production to remain flat with the previous quarter, which showed 30.63 million barrels.

Since arriving six months ago, Yeager says a number of changes have taken place in the division including a move from geographical organisation to functional organisation, which will see petroleum split into exploration, development, production and marketing, as the division looks to regain its "credibility", according to Yeager, after cost overruns and delays have recently occurred.

The company needs to fund about $4.2 billion worth of new projects over the next few years, and has a number of others coming through the pipeline.

[Matthias Offodile]

It is not exactly something which has to do with business but it is an important piece of information on Angola, to my mind

Angola: Building Fair - Luanda Water Project Benefits Over Two Million People



Angola Press Agency (Luanda)

October 21, 2006
Posted to the web October 23, 2006

Luanda

The water project of Luanda, with a treatment capacity of 216 million litres per second, will benefit over two million people after its conclusion next year, referred a report of Brazilian Odebrecht construction firm, ANGOP learnt this Saturday in the light of the IV edition of the International Fair of Civil Engineering Materials, Public Works and Social Security "Constrói Angola".

According to the document, the current phase includes the installing of pumps at Kassaque pumping stations, the extending of South-East Luanda Water Treatment Station, the construction of a new mega Water Treatment Plant and the construction of the new water pipelines of Kifangondo.


The project, which represents 74 percent of the current water supply capacity in Luanda, is in the third phase that started last August 2004. The distribution of treated water is being increased with the installing of 230 kilometres of supply networks, new pipelines and over 250,000 home connections. Luanda water project has concluded two phases that are benefiting about 1.6 million people.

The Project has already set up the South-East Luanda Water Treatment Station (ETA), and implanted 66 kilometres of pipelines, built and rehabilitated five distribution centres and reservoirs, carried out 44,800 home connections, as well as implanted 410 fountains and two reservoirs for the supply of cisterns.

[SE9]

NSE (Nairobi Stock Exchange) share index hits Historic High

http://www.nationmedia.com/dailynation/images/news/bizins271006.jpg

Kenya's stock market crossed another milestone yesterday when its share index rose to an all-time record of 5,061.77 points.

By the close of trading yesterday, the Nairobi Stock Exchange (NSE) 20 Share Index, the key indicator of share price movements, added 98.55 points, up from 4963.22 points for Wednesday.

The new level breaks a 12 year-old record of 5,030 points set on February 18, 1994. But while yesterday’s level is driven by real growth in the economy, the 1994 surge was mostly driven by the high levels of inflation experienced during the period, as well as a liberalised economy.

"There was an expectation that foreign investors would come in and this helped rally the prices up," says Mr George Apaka investment manager AIG Global Investment Group.

Price analysis on most of the listed companies indicates a substantial rise over the last four years, which expanded the index more than five times, from a low of 900 points in 2001, to yesterday's record.

"The stock market has been bullish for the last three years because the economy has been doing well," noted Mr Mohammed Hassan, executive director of Dyer and Blair Investment Bank in interview with Reuters.

"Earnings have been great across the board and the market believes that these earnings are sustainable going forward. That is what has been causing the bull run."

Market experts noted that the bull run – characterised by a continued rise in share prices – has been boosted by the initial public share offerings of the Kenya Electricity Generating Company (KenGen), and advertising firm Scan Group. Both offerings were oversubscribed.

KenGen's share issue is noted to have injected over 240,000 new investors into the market, from below 100,000 investors before the issue. Currently, there are 400,000 registered investors in the market.

The surge has also been boosted by a market switch to the new trading system, Automated Trading System (ATS), that went live on September 11, 2006. The switch saw the market move from the open outcry system, where dealers would shout their sell and buy orders, to electronic trading – able to automatically match the sell and buy orders. The switch has increased the volume of trading and reduced time taken to conclude sales.

Low interest rates on the Government credit papers have also contributed, as investors turn to the stock market for a better return on their investments.

However, market researchers have questioned the accuracy of the NSE 20 Share Index, basing their concern on its movement against other market indicators, such as volume of shares traded and value per transaction. They note that while the latter indicators are on the increase, the index sometimes returns a decline, and as such is not a clear mirror of market performance.

"Emphasis should be on economic growth, not on the index movement. Investors have done better than the index as most of the companies they have invested in have surpassed the index performance," noted Mr AbdiRahman Abdillahi, head of regional research, Dyer and Blair Investment Bank in earlier interview with Nation.

[Matthias Offodile]

Nigeria: Oracle to Increase Business in Nigeria




This Day (Lagos)
October 25, 2006
Posted to the web October 26, 2006

Frances Ovia
Lagos

Oracle Corporation, the world's largest enterprise software company has reported a surprisingly very strong increase in interest in the company's suite of business software designed for mid-sized business in Nigeria.

In a press statement made available to THISDAY, the Managing Director of Oracle African Opeartions(OAO), Mr. Lopez Desi Fafie, said Oracle has identified Nigeria as a key market for its software suites designed for mid-sized business, including Oracle E-Business Suite Special Edition and Oracle Database 10g Standard Edition.
As the average GDP growth in Nigeria OAO continues to outstrip the global average , mid-sized manufacturers seeking to take advantage of more vigorous domestic demand and export opportunities,
"Nigeria has a growth rate of almost 7%, above the global average" said Fafie.
The Corporate Affairs Commission has more than 600, 000 companies in its companies register, which again marks the huge business growth in Nigeria . Our 180 000 mid-sized customers globally are anxious to improve their productivity and streamline their operations so that they can keep their costs down while boosting output.

"The power of the mid-sized market has compelled large business software vendors such as Oracle to take notice of them. Midsized companies far outnumber their larger rivals, and the large vendors have had to take into account their needs, which translate into lower pricing, faster implementation and a lower cost of ownership', Fafie said
The success of the Oracle product suites can be attributed its integration, and its stability. Many business on a different software package, one for financials, one for inventory management one for warehousing and pricing. The software differs from its competitors in a fundamental aspect. (If they outgrow their software their upgrade path is seamless to the enterprise versions.
Lopez said the software is centered on 100% sales and delivery through its partner channel. This is a perfect match for Nigeria, where almost all Oracle business is driven through our partner community.

[Matthias Offodile]

Arab mobile provider, Nokia launches Sudan operations

Friday 6 October 2006 06:10.

Oct 5, 2006 (DUBAI) — i2, the largest and most diverse mobile provider in Africa and the Middle East announced today in a press briefing the launch of its operations in Sudan.

i2 introduces its retail concept and after sales services for the first time in the country.

i2 is the first authorized Nokia distributor and service center in the country as well as being the first to offer mobile subscribers original Nokia devices with matching accessories and a one-year warranty. In Sudan, i2 will be available through its showroom, distribution network and service center.

i2’s operation in Sudan will be managed by Mohamed Osman El Tayyeb, Chairman, and Hussein Raouf Atwi, General Manager.

i2 plans to expand its operation throughout Sudan within the year to include Bahri, Omdurman and Kalaka. i2 has opened a branch in the state of Adbara and plans to expand to Madani and Port Sudan.

Nokia has long recognized Africa as an important market for the company’s business. Since early 1990, Nokia has provided mobile phones, enhancement, telecoms networks and related infrastructure and services to operators and customers throughout Africa.

’Nokia’s approach is to develop and support all local distributors and service partners in all countries. Nokia has been working closely with our regional distributor, i2 across most countries in the Middle East and Africa for many years now.

i2 will be able to offer Nokia’s customers authentic Nokia handsets and official Nokia Customer Care Services to ensure that customers in Sudan receive the best possible Nokia experience." Said Jarmo Santala, General Manager for Nokia Customer and Market Operations North West Africa.

The cost effectiveness of GSM-based services in comparison to fixed-lines has encouraged the fast growth of mobile services in Africa. Nevertheless, mobile penetration levels in Africa remain low.

’i2 has a big role to play in the development of the mobile market in Africa. We want to make sure that it’s growing market follows international standards of product quality and service’ stated Abdul Hameed Al Sunaid, President and CEO, i2.

Founded in 1993 in Saudi Arabia as Itsalat International, i2 is the region’s largest and most diverse mobile phone provider in the region. i2 operates in: Bahrain, Chad, Egypt, Ghana, Iran, Iraq, Ivory Coast, KSA, Kuwait, Lebanon, Mauritius, Morocco, Reunion, Senegal, Sudan, Syria, Tunisia, UAE and UK.

(ST)

[belgiumguy]

hey mathias,do you have some news about air gabon cuz I heard it's cancelled due to problems with royal air maroc.

[Mwafrika]

Oil exploration consortium hopeful of Lamu deposits


A CONSORTIUM prospecting for oil off the Kenyan coast says its mapping and seismic surveys have identifi ed more than 30 prospects and leads, a number of which are capable of holding upto to a billion barrels of recoverable oil.

Drilling of the first oil exploration wells, about 135km away from the mainland off Lamu, begins in a months time. An advance supplies ship, MV Thor Hanne, docked in Mombasa last week, and more supplies are expected, Australia-based oil and gas exploration and production company, Woodside Energy Ltd in a joint venture with Dana, Repsol and Global Petroleum are scheduled to begin conducting the drilling.

There is positive confirmation from the explorers, who say that the Kenya acreage has the potential to become a significant oil region, the consortium says.

According to Woodside who are the lead investors and who are conducting the actual drilling, there are Direct Hydrocarbon Indicators (DHI: potential oil and gas indicator) on some of the leads.

The first prospect to be drilled is likely to be Pomboo in Blocks L-5, and the second possibly Sokwe in Block L-7.

Both have reservoir objectives in rocks of Cretaceous and Tertiary age, which elsewhere contain a large proportion of the world’s known oil and gas reserves.

Drilling will be undertaken using the deepwater drilling vessel Mv Chikyu which has been contracted by Woodside through the Norwegian international drilling contractor, Smedvig on behalf of the Japanese Agency for Marine- Earth Science and Technology (JAMSTEC).

Chikyu would arrive onto the drilling site within ten days with equipments, parts, spare parts and machines for commencement of work.

The acquisition of the vessel, also known as the rig, as big as two football pitches, had initially proved difficult.

Dr John Armstrong, the executive chairman of Global Petroleum, said that obtaining a rig had proved difficult with very high rig usage and long-term rig contracts arising from the strong oil price over the past two years.

The venture sees Woodside Energy (Kenya) PTY earning 30 per cent, Dana Petroleum 30 per cent and Global 20 Per cent and Respol 20 per cent has scheduled up to two wells to be drilled in Blocks L-5, christened Pomboo.


Source : East African Standard - http://www.eastandard.net/hm_news/news.php?articleid=1143960351

[You are to blame]

The BBC website actually had something positive to say abou tAfrica for once. The data are for year ending 2004 which was before many economies started to boom.

World Bank sees Africa progress

Oil revenues have boosted Angola's economy and helped reduce poverty
Fewer conflicts and increased economic growth has made 2005 - dubbed "The Year of Africa" - a turning point for the continent, the World Bank has said.

Its annual study of the continent found that 16 African states had managed to maintain annual economic growth of more than 4.5% since the 1990s.

This had enabled them to lift more of their citizens above the poverty line.

Meanwhile, the number of African conflicts had fallen from a peak of 16 in 2002 to five in 2005.

Mixed results

"Africa today is a continent on the move, making tangible progress on delivering better health, education, growth, trade and poverty-reduction outcomes," said Gobind Nankani, the World Bank vice-president for the Africa region.

The bank's African Development Indicators report highlighted the extreme diversity of economic achievement in Africa.

On one hand, Zimbabwe's economy shrunk by 2.4% in 2004 - while Equatorial Guinea's economy surged 20.9%.

But the report also noted that inflation on the continent was down to historic lows, and that the region had managed to weather the impact of higher oil prices in recent years.

On a more negative note, the bank said foreign investment in the continent was just $10.1bn in 2004 - only 1.6% of global foreign investment - and that more than 50% of the funds were spent in Nigeria and Sudan.

The report also highlighted the difficulty of starting a business in many parts of Africa - taking, across the continent, an average of 64 days.

Millennium Development Goals

In more positive vein, the bank's report said that countries including Senegal, Mozambique, Burkina Faso, Cameroon, Uganda and Ghana were on course to meet the target of halving poverty by 2010 - five years ahead of schedule.

The eradication of extreme poverty and hunger is one of the eight Millennium Development Goals (MDGs) agreed by 189 countries in New York in 2000 with a target date of 2015.

Each MDG also includes a number of indicators designed to measure its progress, which are intended to be tracked and updated regularly by UN member governments and international governing bodies such as the World Bank.

The year 2005 saw a particular focus on Africa and the MDG's - it was a key focus of the G8 summit in Gleneagles and saw the publication of reports from the UN Millennium Project and UK's Commission for Africa.

Prospects

In its latest Africa report, the World Bank said that many countries had made good progress in meeting some of the other MDGs, such as getting more young children into primary education and improving child mortality.

THE EIGHT GOALS
1: Eradicate extreme poverty and hunger
2: Achieve universal primary education
3: Promote gender equality and empower women
4: Reduce child mortality
5: Improve maternal health
6: Combat HIV/AIDS, malaria, and other diseases
7: Ensure environmental sustainability
8: Develop a global partnership for development

Looking forward, it said improved governance and management of natural resources was a key requirement, particularly with African nations due to receive a $200bn windfall from oil revenues between 2000 and 2010.

It said it was seeing signs that African leaders were taking more responsibility for improving governance and assisting the private sector in attracting foreign investment and boosting trade with growing markets like those in China and India.

http://newsvote.bbc.co.uk/1/hi/business/6099672.stm

[adebayoa]

China to build Nigerian railway
Cows walking on Nigerian railway
Nigeria's railways have fallen into disrepair
China is to build a railway line between Nigeria's two main commercial cities, Lagos and Kano.

An $8bn contract was signed by the deputy transport minister and the president of the Chinese firm (CCECC).

CCECC President Lin Rongxin said 50,000 Nigerians would work on the 1,315km line which he said was "a design, construct and maintain project".

Nigeria's leader said the five-year north-south line was the first phase in a 20-year modernisation programme.

President Olusegun Obasanjo, who watched the signing, said the second phase of the railway project would include a link between the southern oil city of Port Harcourt and the central city of Jos.

Map
The existing railway along these routes has fallen into disrepair and new tracks are to be built under the deal with China.

China recently granted Nigeria a loan of $2.5bn and much of this is expected to be used in the railway project.

Earlier this year Nigeria repaid a multi-billion dollar debt it owed to the Paris Club, becoming the first African nation to settle with its official lenders.

Nigeria is one of the world's biggest oil exporters, but it is also one of the world's poorest countries, with the majority of the population living on less than $1 per day.

Source http://news.bbc.co.uk/1/hi/world/africa/6101736.stm

[SE9]

http://www.nationmedia.com/eastafrican/images/east_african_banner.gif


Safaricom makes $174m profit, largest in East African History
By PHILIP NGUNJIRI
Special Correspondent

Mobile company Safaricom has posted the biggest profit ever in East Africa – Ksh 12.77 billion ($174 million) – edging out listed company East African Breweries Ltd from the position of the biggest profit maker in the region.

The star performance is likely to impact on the negotiations going on between the government and Vodafone Plc of the UK over the impending sale of a 9 per cent government stake in the company to Vodafone.

Analysts say that the government is likely to demand more money for the shares.

Currently, the government owns 60 per cent of the company through Telkom Kenya with the remaining shares being held by Vodafone.

Last year, Vodafone made an offer of $100 million for 11 per cent shares of the company.

The International Finance Corporation of the World Bank which was appointed by the government to value the company, is said to have valued 11 per cent of the company at around $165 million.

But it is understood that during negotiations with Vodafone in London, both sides started the negotiations by quoting much higher figures than the IFC's valuation.

Safaricom, with a subscriber base of about 4.5 million, has derived most of its growth from airtime sales, especially the introduction of the lower denomination top-up cards.

It has constantly expanded its network and presently has in excess of 880 live sites at any one time. The company plans to introduce new products, including a money transfer service which is to be known as M-Pesa.

East Africa Breweries Ltd, the most profitable company in the country, made a pre-tax profit of Ksh9 billion ($123.3 million) for the year ending June this year.

With its market share estimated at between 65 per cent and 70 per cent – according to June figures by the market regulator, the Communications Commission of Kenya (CCK) – Safaricom continues to consolidate its position by maintaining the largest number of base stations and constantly monitoring revenue and traffic volumes.

The subscriber base has increased from 2.512 million to 3.944 million, an increase of 57 per cent over the previous year.

Net connections in the year were 1.432 million, an increase of 43 per cent over the same period.

The growth, according to the company's CEO, Michael Joseph, is the result of the significantly increased network roll out to rural areas and the ongoing confidence that the country has in the value of the Safaricom network and services offered.

Safaricom is currently one of the fastest growing companies in Kenya, and its financial performance is considered both a barometer for the telecommunications industry and a signal of the state of consumer spending in the country.

With a market that is growing more competitive by the day, Safaricom has kept its edge through aggressive marketing and by constantly reviewing its product range.

Financing costs for the company remained fairly static in the year despite completely refinancing its borrowing during the year.

[Matthias Offodile]

hey mathias,do you have some news about air gabon cuz I heard it's cancelled due to problems with royal air maroc

Belgiumguy, I have put an article for you in "Africa aviation news" concerning the problems between Air Gabon and Royal Air Maroc.:)

[Matthias Offodile]

Belgiumguy, here is the promised article in French ! But I know you can speak it well so you can easily read it! It is really a nasty quarrel

RAM-Gabon: Disputes bruyantes

(L'Economiste du Maroc 30/10/2006)

LE doute s’était installé sur la volonté de Royal Air Maroc d’enfiler le corset de l’alliance avec le Gabon dans le «pacte d’actionnaires» prévoyant la création d’Air Gabon International, signé le 24 février dernier entre son PDG et le ministre gabonais du Transport. En cause, selon des sources gabonaises proches du dossier, le changement intervenu à la direction générale de Royal Air Maroc. On en doute.
Mais dans les couloirs du ministère gabonais délégué à l’Economie et à la Privatisation, on persiste à défendre cette thèse. Et les accusations sont à peine voilées. «Driss Benhima ne veut rien hériter de ce dossier négocié par son prédécesseur, Mohamed Berrada», rapportent certaines sources gabonaises, qui parlent de déception, de lenteurs, de manque de volonté, de divergence, de désaccord, citant Alexandre Barro Chambrier, le ministre chargé du dossier. Il déclare, le 27 octobre, à l’AFP, qui parle de «divorce consommé», que «le gouvernement gabonais est un peu déçu par la tournure qu’ont prise les discussions avec la RAM». Selon le ministre, les lenteurs ont fait qu’il n’a pas été possible de poser les bases de la nouvelle compagnie.
De son côté, Driss Benhima, PDG de la RAM, reste imperturbable et fidèle à sa ligne de conduite. «Je n’ai aucun commentaire à faire sur une dépêche de presse, mais je confirme que les discussions avec l’Etat gabonais ne sont pas interrompues et restent ouvertes».
D’ailleurs, dans un entretien à L’Economiste sur le retard de ce dossier, une semaine plus tôt, il rappelait en effet la décision, «d’un commun accord avec les autorités gabonaises», de reporter le démarrage de l’activité d’Air Gabon International du fait de divergences. Le Gabon veut un Boeing 767 sur le long-courrier, tandis que la RAM propose un 757. Pour ce qui est du capital de départ, la RAM l’estime à 7 milliards de FCFA, environ 110 millions de DH. Le Gabon en exige deux fois plus. Le dossier achopperait également sur le nombre de salariés à reprendre. Les 350 proposés par les responsables marocains pour le démarrage ne calment pas la colère des 1.100 salariés laissés sur le carreau par la défunte compagnie gabonaise.
Bien plus que ces divergences, Benhima impute ce retard à un problème de fond. «L’analyse de ce qui se passait au Sénégal (ndlr: contrairement aux apparences de son succès commercial, Air Sénégal International traversait quelques zones d’ombre) nous a amenés à voir d’un œil différent les documents prévoyant le fonctionnement d’Air Gabon International». Le recul -nécessaire- pour mettre à niveau certains éléments du dossier de la filiale gabonaise de la RAM a demandé beaucoup plus de temps. On est bien loin de l’annonce, tambour battant, par l’Etat gabonais, le 28 décembre 2005, de Royal Air Maroc comme «adjudicataire définitif», suite à un appel d’offres international lancé en juillet 2004 pour la privatisation partielle d’Air Gabon, secouée par de graves difficultés financières. C’était aussi un dossier très politique où Rabat développait sa présence africaine et où Libreville jouait de ce désir.

· Plan «B»

Déjà en septembre dernier, à l’issue du voyage au Gabon de Driss Benhima, le ministre délégué gabonais déclarait à la presse que le «pacte d’actionnaires entre le Gabon et la RAM est caduc». L’argument mis en avant à ce moment-là portait sur un autre différend. «La volonté des responsables de la RAM d’obtenir l’exclusivité des droits de trafic sur 20 ans, au lieu des 12 initialement prévus». Est-ce déjà le divorce?
En tout cas, la nouvelle compagnie gabonaise devait être créée sur le modèle réussi d’Air Sénégal International, filiale de la RAM, dans laquelle elle détiendrait 51% du capital.
Une affaire de formalité, avait-on prédit, tant le groupe marocain est passé maître dans l’art du sauvetage des compagnies africaines en difficulté. D’autant plus que le président gabonais, Omar Bongo, avait annoncé la création d’Air Gabon International, en tendant la perche au Maroc, et la liquidation d’Air Gabon, lourdement endettée, handicapée par une flotte vieillissante et des effectifs pléthoriques.
Si, du côté gabonais, on parle déjà de «plan B» avec des privés locaux et on multiplie les contacts à la recherche de partenaires stratégiques, la direction de la RAM continue à croire dans ce «pacte d’actionnaires» avec l’Etat gabonais.

Bachir THIAM

© Copyright L'Economiste du Maroc

[Matthias Offodile]

Sorry, I wanted to put the article in the "African Aviation News" but it just noticed that it landed here... in a moment of absent-mindedness!!! So I will simply leave it here.

[Matthias Offodile]

Angola's banking sector more attractive than ever

afrol News / Savana, 8 September 2006 - The Angolan banking sector is living a renaissance. Three new banking groups are to start up activities during the next months and more than ten have already signalled their interest to seek necessary authorisations to be able to operate on the national market. The National Bank of Angola (BNA) will hand out new licences by the dropper to cash in its political triumph.

Although it will be difficult to evaluate the impact that the new competitiveness will have on the profitability of existent banks, the consulting company Deloitte - which this month is to present a deep-ploughing analysis of the sector - guarantees that antiquity represents some sort of competitive advantage. But successes for newcomers are also possible, as for the Banco Internacional de Crédito (BIC), which after only one year managed to gain the fourth place on Angola's bank ranging, in terms of deposits.

Pedro Barreto, "partner" of Deloitte responsible for Angola, argues that "the financial system is daring a frontier moment, producing at the same time a strong growth in the deposit basis and on the other hand an increased competition with the entry of new players that are making banks more aggressive and segmented."

Angola is the continent´s third biggest oil producer, reaching 1.4 million barrels of crude daily. Production is estimated to grow to at least 2.4 million barrels a day by 2010 and other sources claim that the country´s oil production will exceed more than 4 million barrels a day by 2015. Thanks to the very high oil prices on world markets, the country currently is living one of its best moments in history and its future looks very promising.

Angola is seen to be in a similar position as was Portugal some 20 years ago, and this may be the beginning of a long process. The financial system is only in its infancy. Barely 20 percent of the population has a bank account. In Portugal, this indicator is at 92 percent.

The market, which still is not sufficiently oriented towards the costumer, has everything to give. Only recently, a plan was adopted that foresees the payment of salaries to civil servants to go via bank accounts, or a scheme to emit and accept credit cards, initially Visa. Prospects for old and new banks are unlimited, from credit cards to consumers, passing through leasing, factoring and funds or the announced privatisation programme.

Only in 2005, the deposit basis grew by 66 percent in Angolan banks, which has injected liquidity into the system. These growth levels are foreseen to maintain during the next few years, especially now that Angolans are starting to return to a cash economy and assuming capital.

This year, on 5 November, the National Banc of Angola will celebrate the 30th anniversary of its foundation, and the 50th anniversary of the transfer of thus Bank of Angola from Portugal to its new headquarters in Luanda. By now, the Portuguese-speaking banking community is starting to see Luanda as its principal growth motor outside Portugal.

By Isabel Tavares

[africa500]

Mauritania grants third GSM licence to Sudan's Sudatel

18/07/2006

The Mauritanian regulating authority said on Monday (17 July) that it has granted its third Global System for Mobile Communications operating licence to Sudan's Sudatel. GSM is the most popular standard for mobile phones in the world with more than 2 billion users in 210 countries. The consortium of Sudanese and Qatari companies won the licence with a bid of around 79m euros. Tunisia's Mattel and Morocco's Mauritel operate the current two GSM networks. (AMI, AFP)

[Matthias Offodile]

Angola: Sonangol Concludes Signing of 32 Oil Contracts


Angola Press Agency (Luanda)

November 4, 2006
Posted to the web November 6, 2006

Luanda

State-owned fuels supply company (Sonangol) Friday in Luanda concluded the signing of thirty two contracts of share of oil production with exploration companies.

The accords will grant to Angolan State an additional revenue estimated at USD 3.1 billion.


The signing session, started on Thursday, had the participation of eight Angolan firms, which should give their participation in the national oil exploration process.

The tenders started September 2005 and ended last May 31.

Among the companies that signed the contract are Sonangol Research and Production, Tullow Oil, Predol, Force Petroleum, Vaalco, Inter Oil, brazilian Petrobras and Gema Group.

[Matthias Offodile]

Africa beating poverty

November 1, 2006

Johannesburg - Many African countries, including Mozambique, might meet the Millennium Development Goal (MDG) target of halving poverty by 2010 but Zimbabwe is not one of them, according to a World Bank report released on Monday.

"Africa is today a continent on the move, making tangible progress on delivering better health, education, growth, trade and poverty-reduction outcomes," said Gobind Nankani, the World Bank vice president for the Africa region in the report, released in Washington.

The annual World Bank publication, "African Development Indicators (ADI) 2006," depicts a diverse continent, with several countries making remarkable progress, some stagnating and others lagging seriously behind.

Many countries, including Mozambique, Senegal, Burkina Faso, Cameroon, Uganda, Ghana and Cape Verde, have lifted significant percentages of their citizens above the poverty line and might well be on course to meet the MDG target of halving poverty by 2010.

The full spectrum of achievers and laggards stretches from Zimbabwe, which recorded a negative growth rate of 2.4 percent - the only country with a negative growth rate in 2004 on the continent - to Equatorial Guinea, with a 20.9 percent growth rate.

"While economic outcomes are increasingly diverse, Africa has made near uniform progress in social outcomes, notably education and health," said John Page, the World Bank's chief economist for the Africa region, adding that Africa's per capita income is now increasing in tandem with other developing countries.

The ADI 2006 confirms that 16 African countries have sustained annual GDP growth rates in excess of 4.5 percent since the mid-1990s; inflation on the continent is down to historic lows; most exchange rate distortions have been eliminated; and fiscal deficits are dropping.

The continent weathered higher oil prices better than previous shocks and its real GDP grew by 4.3 percent, compared to 5.4 percent in 2004.

Productivity in Africa's best performing firms is on par with competitors in Asia (India and Vietnam).

Factory-floor costs in Africa's best economies compare well with India and China, but Africa has overall lost market share in traditional exports although several countries increased exports by more than 10 percent.


The good news includes primary enrolment rates rising significantly across the continent. HIV/Aids prevalence and child mortality rates have started to fall and the gender gap has started to shrink in several countries.

"Gross primary enrolment rates as a share of the relevant age group -- a standard indicator of investment in the poor -- shot up to 93 percent in 2004 from 72 percent in 1990, contributing to a rise in literacy rates from 50 percent in 1997 to 65 percent in 2002," said Page.

The ADI 2006 highlights the numerous challenges facing Africa, the lone region of the world where the number of the poor continues to rise.


The ADI 2006 calls for the lifting of burdensome rules of origin through reforms in the US African Growth and Opportunity Act and the EU's Everything But Arms initiative, but also for reforms within Africa to promote intra-African trade.

The report warns that the immense disease burden posed by HIV/Aids, malaria, and tuberculosis, as well as by corruption, anaemic aid, cascading tariffs barring made-in-Africa products from entering global markets and dwindling foreign direct investments threaten gains in poverty alleviation.

"Improving governance and smart management of natural resource rents are key requirements for improving development outcomes in Africa, where an estimated windfall of more than 200 billion dollars in oil revenue alone will accrue to African governments between 2000 and 2010," said Nankani, reflecting on the fact natural resource-rich economies have tended to make slow progress on the continent despite their enormous wealth endowment.

The publication includes development data from all 53 African countries and covers 1980 to 2004. - Sapa

[Mwafrika]

Malindi Town is increasingly becoming known as Kenya’s version of ‘little Italy’. With Italians now owning more than 2,500 properties, prices of beach plots have hit Sh8 million per acre, writes Paul Gitau.


It is dusk. Colourful neon lights are flashing in the compound of a luxurious multi-million shilling villa, identified by a signpost in Italian.

A well-dressed Italian couple come out of the villa and head to a pizzeria (Italian cafe) for dinner a few metres from the residence.

Later after dinner, they leave the pizzeria in a taxi to a famous discotheque in town owned by an Italian.

Welcome to Malindi town, and be surprised at how many of its sections look like part of an Italian town or an African Rome.

The number of Italian residents in Malindi town and its environs, estimated at slightly over 3,000, is the largest European population compared to other European populations anywhere in Kenya.

The Italian embassy is the only foreign mission with a resident consul in Malindi to cater for its population.

With their financial and investment muscle, Italians have come to influence and even dominate life in Malindi and its neighbouring beach settlements of Mambrui, Mayungu and Watamu.

Favourable climatic conditions


Beach property in Malindi

A pioneer hotelier, Mr Godfrey Karume, who came to the town in the early 1970s, said the first Italian came to work at San Marco Space Centre at Ngomeni, owned by the University of Rome, in 1976. The centre has since changed hands and is now owned by the Italian Space Agency.

Karume says while socialising with the local people in evenings, the Italians noticed the attractiveness of virgin beaches from Ngomeni, Mambrui, Malindi, Mayungu and Watamu.

He said the workers at the space research centre sent word back home and some friends, who were leaving Somalia at the outbreak of the Ogaden War with Ethiopia started taking refuge in Malindi just a boat’s journey south of Mogadishu.

The Italian Consul in Malindi, Mr Roberto Macri, said that on arrival, and due to favourable climatic conditions and the hospitality of the local Mijikenda community, the Italian pioneers started buying beach plots, which by then only cost between Sh500,000 to Sh1 million (approx £10,000 sterling) an acre.

This attracted more Italian investors as an acre of beach plot in Italy was too expensive and could be sold at as much as Sh20 million.

Increased demand for beach plots

Since then, Macri says, the Italians have invested billions of shillings. He says currently, there are more than 2,500 properties owned by Italian investors.

Some of these include three two four-star tourist class hotels, villas, apartments and cottages.

A nominated councillor, Mr Kassim Omar, who is also a property agent, says due to increased demand for beach plots for investment by Italians, majority of whom are from North Italy, plots are now too expensive for locals.

He says an acre of beach plot costs between Sh5 million to Sh8 million, while ordinary land within the town costs between Sh1 million to Sh2 million an acre.

Omar insists the Italians, who own about 80 per cent of investments in Malindi, have brought a big impact on the prices of plots and houses.

For instance, he says, earlier a self-contained villa or cottage on a beach plot cost the owners between approximately four million shillings. Today, buyers have to cough between Sh10 to Sh12 million.

The heavy investments, especially in the hospitality industry, employ thousands of local people, who are living relatively comfortable lives, since there are no agro-based industries in the area.

Marriages of convenience

Interestingly, there have been a lot of intermarriages between the foreigners and the locals, but with a minimal impact on lifestyles as majority of these Italians like the local lifestyle.

With ever increasing number of tourists, prostitution has come up. It has also become a common occurrence for spouses in the area to consent to dual marriages, by allowing each other to hook up with a mzungu just for economic gain.

Such relationships are usually seasonal. During the high tourist season, the African couples separate and join their white lovers, only to reunite during the low season when Italian tourists go back to their motherland.

But for the Italians that have decided to make Malindi their permanent abode, such couples have had to divorce in a bid to cohabit with their white ‘friends’. These are merely marriages of convenience.

Interest in Magarini Parliamentary seat

An MP of Italian heritage? Yes. One Mr Franco Esposito, a former chief executive officer with the San Marco Space Centre in Ngomeni area, has declared his candidature for the Magarini Parliamentary seat currently held by Mr Harrison Garama Kombe.

Esposito, who has been nick-named ‘Kasoso wa Baya’ by the locals, wants to unseat Kombe, claiming that his development record would make him sail through.

Speaking at his luxurious Woburn Residence hotel, Esposito said that elders from the area have approached him.

"Kasoso is a very small bird, and since I am a short man, the people thought the name befitted me, and I accepted," he says with a chuckle.

"I am a Kenyan citizen who has lived here for over thirty years, and I believe I can make a good MP," he says.


Source The standard: http://www.eastandard.net/restate/index.php?id=1143960840

[Matthias Offodile]

Zimbabwe inflation up to 1,070,2%

Reuters

HARARE 10 November 2006 - Zimbabwe’s annual inflation rose to 1,070,2% year-on-year last month, up from 1,023,3% in September, shy of a previous record but still the highest in the world, official data showed on Friday.

Analysts say Zimbabwe’s galloping inflation is pressuring President Robert Mugabe’s government, which many critics blame for a severe economic crisis marked by chronic shortages of food, fuel, foreign currency and deteriorating social services.

The Central Statistical Office said that, on a monthly basis, Zimbabwe’s consumer price index rose 27,5% last month compared with a 14,8% increase the previous month.

The increases in both annual and monthly inflation were in line with forecasts by local economists who say inflationary pressures are very strong in the economy over faltering efforts to boost production in industry and the key agricultural sector.

Mugabe’s government has admitted inflation is one of the biggest hurdles to reversing an economic slide that critics say has been worsened by poor yields from commercial farms seized from their previous white owners and distributed to blacks.

Mugabe, who has ruled the former British colony since independence in 1980, denies responsibility for the ailing economy and, in turn, charges sabotage by opponents of his controversial land seizures.

Zimbabwe’s soaring inflation is seen as a major stumbling block to pulling the country out of an eight-year recession also marked by a jobless rate of above 70%. Inflation reached a record 1,204,06% year-on-year in August.

[africa500]

Sudan, Arab fund to invest $200 mln in agricultural development
Saturday 11 November 2006 05:30.

Nov 10, 2006 (BEIRUT) — Bank of Sudan and the Sudan-based state-owned Arab Organization for Agricultural Development signed a memorandum of understanding to invest $200 million in agricultural development projects in Sudan, the London-based Asharq Al Awsat reported Friday.

The memorandum was signed at the Khartoum Economic Forum that was held on Wednesday and Thursday.

The Forum is part’s of the Sudanese government plans to encourage foreign investment in the Sudan and by all indicators, Arab and western interest in the country appears to be serious. During the Forum Sudanese officials and Gulf Arab countries reached an agreement to remove investment impediments for the oil-rich states in the vast African country.

According to Sudan’s Minister of Finance, al-Zubair Ahmed al-Hassan foreign investments in the country are expected to reach $3 billion in 2006.

Sudan’s economy has been growing at a fast pace and macroeconomic conditions have been stable. Real GDP grew at an estimated rate of 8% in 2005, owing mainly to a recovery in agriculture and robust activity in construction and services.

The Forum, according to the paper, witnessed a number of deals including an agreement between investors from the GCC and local bankers to form a joint Gulf-Sudan investment bank. Officials did not provide any details as to the size of the capital and principle activities of the bank.

Gulf investors also agreed to set up a joint Gulf-Sudan reinsurance company, and a MoU between the Central Bank of Qatar and Bank of Sudan was signed to provide credit facilities.

Sudanese President Omar Al Bashir said during his remarks, that Sudan was ready and prepared to accommodate Arab investors and invited them to take part in the development of both the public and private sectors in the country.

(Dow Jones)

[You are to blame]

Some more positive reporting by the western media. Slowly but surely they are becoming aware of the economy transformation on the continent.

Corporate South Africa spreads across continent, world

By David J. Lynch, USA TODAY
Until several years ago, few people outside South Africa had ever heard of a company called Sasol (SSL).
At home, the energy producer was known for using a process pioneered by Nazi Germany to keep the engines of apartheid humming with fuel made from liquefied coal. Yet, until apartheid ended in 1994, Sasol's home-grown success stayed at home. International sanctions aimed at toppling the country's racist government penned the energy producer, and the rest of Corporate South Africa, inside an isolated pariah state.

No longer. In recent years, as South Africa built a multiracial democracy, its corporate stars burst onto the global stage. The biggest inroads have been made in other African markets, where South African banks, fast-food franchises, supermarkets and clothing stores now dominate. But the commercial gains extend beyond this continent to stock exchanges in London, computer networks in South Korea and Brazilian magazine publishers.

"South African businesses are diversifying internationally at an incredibly rapid rate," says economist Stephen Gelb. "They are active not just in sub-Saharan Africa, but all over the world."

Sasol, created by the government in 1950 to make the race-based state energy independent, today is pursuing projects in Nigeria, as well as farther afield in China, India and Qatar. In the USA, amid fears about tight oil supplies, the company is conducting preliminary studies on converting coal to gasoline in Wyoming, Illinois and Montana, and is in early talks with the Pentagon about providing alternative fuels for the military, CEO Patrick Davies says.

Sasol's international ambitions are mirrored by supermarket operator Shoprite Checkers, fast-food chicken franchiser Nando's and one of the country's big four financial institutions, Standard Bank. In Africa, all are capitalizing on the continuation of a decade of sustained growth in countries such as Zambia, Mozambique and Ghana. In 2007, sub-Saharan Africa's economy is expected to grow about 6%, according to the World Bank.

Shoprite Checkers, which opened its first store outside South Africa in 1995 and now operates in 17 countries, plans to unveil 58 stores in the 12 months ending in June. A total of 13 are planned outside South Africa. India, Angola and Nigeria are key targets.

Restrained for decades

Such globe-trotting was unknown under apartheid, which year by year left white-ruled South Africa increasingly ostracized. For much of the 20th century, South African companies' forays outside their home market were limited to a handful of immediate neighbors. Among them: Lesotho, a landlocked country surrounded by South Africa and Zimbabwe, which had been closely linked to the apartheid state when it was ruled by whites and known as Rhodesia.

Otherwise, South African companies stayed home, a tendency that was reinforced as international controversy about apartheid intensified. Efforts to use economic pressure to compel change in the racist system began in the late 1970s. In 1986, over President Reagan's veto, Congress barred the importation of any South African goods, prohibited American investment in the apartheid state and cut air links. The vote came one month after similar trade bans were enacted by Europe and Japan.

South African companies responded to economic quarantine by focusing their energy on their modest domestic market. The resulting corporate inbreeding spawned an economy dominated by a small number of large corporations who increasingly delved into businesses far removed from their core expertise. SABMiller, one of the world's largest brewers and producer of the USA's Miller brand, ran a hotel and gaming venture. Anglo American, a giant miner, sold insurance, while the bankers at Nedbank peddled food.

"South African companies couldn't expand internationally the way they should have," says Wendy Lucas-Bull, a prominent South African businesswoman. "They expanded into other areas that weren't their core competencies."

That started to change in 1991 when, following Nelson Mandela's release from prison in 1990, the United States began lifting sanctions. In November 1993, six months before Mandela was sworn in as the country's first democratically elected president, the U.S. ended its final economic sanctions. (Washington maintained an arms embargo for an additional five years.)

Facing global competition

As trade barriers fell, South African companies faced new competition in their previously protected home market. Elsewhere in Africa, states struggling to overhaul outmoded economies lured investors with attractive incentives. South African companies, desperate for new sales to compensate for losses at home, responded.

Today, with the typical American or European multinational preoccupied with opportunities elsewhere, African markets still represent relatively untapped terrain. Local companies in these markets often are no match for bigger South African competit