African Business and Economy News [Archive]

Matthias Offodile

October 11th, 2006, 11:40 AM

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?

October 11th, 2006, 05:44 PM

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

October 12th, 2006, 12:11 AM

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

October 12th, 2006, 12:20 AM

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

October 12th, 2006, 12:21 AM

well said

October 12th, 2006, 10:11 AM

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

October 12th, 2006, 01:17 PM

· 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

October 12th, 2006, 02:02 PM

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

Tbite

October 12th, 2006, 11:43 PM

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

October 13th, 2006, 07:21 AM

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

October 13th, 2006, 07:25 AM

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

October 13th, 2006, 07:52 PM

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

October 14th, 2006, 10:40 AM

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

October 15th, 2006, 03:50 PM

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

October 15th, 2006, 03:52 PM

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

October 15th, 2006, 07:37 PM

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

October 16th, 2006, 01:28 PM

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...:)

October 16th, 2006, 06:30 PM

@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

October 18th, 2006, 02:28 AM

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

October 18th, 2006, 02:29 AM

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

October 18th, 2006, 02:30 AM

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, 01:45 PM

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

October 23rd, 2006, 09:16 AM

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

October 23rd, 2006, 09:23 AM

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

October 24th, 2006, 09:37 PM

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

October 27th, 2006, 06:44 PM

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

October 28th, 2006, 04:37 PM

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

October 28th, 2006, 04:41 PM

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

October 30th, 2006, 02:06 AM

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

Mwafrika

October 30th, 2006, 03:21 PM

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

October 31st, 2006, 07:36 AM

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

October 31st, 2006, 02:44 PM

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

October 31st, 2006, 07:40 PM

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

November 1st, 2006, 01:45 PM

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

November 1st, 2006, 01:50 PM

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

November 1st, 2006, 01:53 PM

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

November 6th, 2006, 11:18 AM

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

November 6th, 2006, 11:31 PM

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

November 7th, 2006, 06:36 PM

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

November 7th, 2006, 08:20 PM

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

November 9th, 2006, 02:52 AM

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

November 11th, 2006, 09:56 PM

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

November 12th, 2006, 10:45 AM

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

November 14th, 2006, 05:17 AM

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 competitors. "For companies aspiring to become multinationals, Africa is a stepping stone, an opportunity to test the waters," says Neuma Grobbelaar, who runs the "Business in Africa" project at the South African Institute of International Affairs.

Thanks to their experience with South Africa's decades-long political evolution, South African executives see themselves as better equipped than Americans or Europeans to handle the challenges of undeveloped or even dangerous markets, says Gelb, the executive director of The Edge Institute, a non-profit think tank here.

Fully 40% of South African companies' foreign affiliates now are located outside Africa. Example: Dimension Data, a computer networking and security firm, operates in 35 countries from Algeria to Vietnam.

"Perhaps South African companies are less risk averse. Perhaps they have to be less cautious: They have more ground to make up," says Roger Crawford, president of the American Chamber of Commerce in South Africa.

South African corporations are making up ground at home, too, transforming themselves from bastions of white privilege into pillars of a new, multiracial society. Under government prodding, companies are promoting black managers, selling stakes to black investors and increasing purchases from black suppliers. Today's South African global stars little resemble their apartheid-era ancestors.

Costs of globalization

The globalization of South Africa's leading companies, however, has entailed costs both at home and abroad. In recent years, five major South African companies — including brewer SABMiller and Anglo American (AAUK), with its origins in the gold mines that gave rise to the South African state — transferred their primary stock listings from the Johannesburg Stock Exchange (JSE) to London. Those moves dented both national prestige and the JSE's ambitions of surviving as a major global equity market.

In other African countries, South Africa's high profile sometimes invokes the same resentment triggered by European colonialists 150 years ago. With South Africa selling to its neighbors about four times as much as it buys from them, there is a "perception that trade is a one-way street in South Africa's relations with the rest of the continent," said a report from the South Africa Foundation, a business group. African consumers welcome the improved service and choice of goods, but African retailers and manufacturers decry competition from more sophisticated rivals.

As South African firms advanced into the rest of Africa the past few years, top African companies made Johannesburg the continent's financial capital. Functioning telephone and electric utilities, extensive international airline connections and political stability all give the city an advantage over alternative locations.

When Papa Ndiaye, chief executive of the Advanced Finance and Investment Group, launched his private equity firm last year, he chose to locate his main office in Johannesburg. For firms seeking to attract elite global talent, it's the only place in Africa that makes sense, the native of Senegal says.

"We're looking to get people off Wall Street to live in Africa. It's not going to be that easy," says Ndiaye, a former JPMorgan emerging markets specialist.

For individual companies, there is a commercial imperative to expanding outside South Africa's market of 46 million people. But on a larger scale, South African leaders see Africa's economic development as essential to their country's long-term stability.

Today, South Africa stands apart from much of the rest of Africa, accounting for about half the continent's total electricity generation and paved roads. Elsewhere in Africa, a lack of modern roads, ports, railways and telecommunication networks is a chronic impediment to economic growth.

The South African government is promoting a number of projects that would fill in some blank spots on Africa's economic map. To spur development, the government has tapped Mintek, a state-supported mining institute, to use South Africa's traditional mining expertise to exploit the natural endowments of less-advanced African countries. Building the roads, rail networks, ports and power plants needed to convert buried minerals into cash-generating industries will lay the groundwork for later industrial development, officials hope.

A typical proposal in a province of the Democratic Republic of the Congo calls for phosphate and base metals mining to support construction of new electricity grids, ports and roads linking area countries.

"We can't exist as an island of prosperity in a sea of poverty," says Paul Jourdan, Mintek CEO. "It's in our interest that our neighbors develop."

http://www.usatoday.com/money/world/2006-11-12-s-africa-usat_x.htm

You are to blame

November 14th, 2006, 08:08 AM

An overview

'Infrastructure critical for Africa's development'
13-NOV-06

Johannesburg - Boosting economic growth in Sub-Saharan Africa was dependent, to a large extent, on expanding infrastructure investments, improving the investment climate, harnessing skills for innovation and building institutional capacity across the continent, a World Bank study has said.

The bank revealed this in its report called Facing the Challenges of African Growth: Opportunities, Constraints, and Strategic Directions.

The study said these were among the most critical areas demanding action if Africa was to make up for missing two decades of global growth or replicate the growth models that have lifted millions of people out of poverty in other regions of the developing world.

"Africa is on the move and is perched on the cusp of breaking out of the long economic stagnation of the 1970s and 1980s. The last ten years have seen renewed growth and improved governance across a number of African states, setting the stage for taking advantage of opportunities that are emerging from a rapidly changing world economy," said Gobind Nankani, the World Bank's vice-president for Africa.

African economies have shown that they are capable of short spurts of robust growth. The challenge, as the study confirms, remains one of sustaining such a pace for longer periods and ensuring that the majority, notably the poor, women, youth and other marginalized groups contribute to and benefit from that growth, Nankani added.

Africa’s slow and erratic growth performance, particularly when compared to other developing regions, has been identified as the single most important reason behind its lagging position in eradicating poverty. Extreme poverty (spending less than a dollar a day on basic necessities of life) rose from 36 percent of the population in 1970 to around 50 percent of the population (300 million people) in 2000, explained Page. Africa hosts only 10 percent of global population, yet it is home to 30 percent of the world’s poor.

The study notes that inequalities have a major influence on the efficacy of growth in reducing poverty. There is need to pay greater attention to this dimension of poverty reduction to complement the impact of accelerating growth, particularly by enhancing the income-earning opportunities for the poor more than for other income-earning segments, or by enabling their greater participation in the growth process. Uncharacteristically high levels of age dependency have also created fiscal and household pressures to care for overwhelming number of young at a time when few countries have enhanced the employability of youth through job creation and vocational training.

The study sets out to answer three key questions: (i) what are the opportunities and options for growth available to the diverse range of African countries; (ii) what are the major constraints to exploiting these opportunities and (iii) what are the strategic choices to be made by African governments, as well as development partners, including the World Bank, in supporting actions taken by African countries. Its findings based on an analysis of 45 years of Africa’s growth recommend, among others, prudent management of rents from resources and of shocks and the need for countries to look beyond creating conditions for attracting new investors to measures that help raise productivity of existing and new investments.

The study finds that a distinct characteristic of Africa’s long-term growth experience is its historical U-shape, featuring a deep and prolonged contraction of growth from 1974-1994, a period sandwiched between the moderately high growth rates of the 1960s and after the mid-1990s.

Per capita growth rates of around 2 percent in the early 1960s rose to nearly 5 percent by the end of that decade, then fell steadily through the early 1970s, turned negative during the mid-1980s, and then climbed back to around 2 percent since the mid-1990s, explained Benno Ndulu, the author of the study who is also an advisor to World Bank vice-president for the Africa Region and Manager of the Partnership Group.

The global deceleration of the 1970s, which began with a set of shocks to energy and tropical commodity market, took many African countries into outright contraction lasting about 20 years - but by 2005, African growth had rebounded to the levels of the 1960s and with more diversified economies. Since 1995, more than one-third of the countries in Sub-Saharan Africa were growing at average rates exceeding 5 percent.

Two primary factors accounted for Africa’s slow growth over the lost decades: a relatively low rate of capital accumulation and a low growth rate of productivity for the investments that are made in the region compared to productivity in other developing regions.

Although per capita incomes for Africa and East Asia were virtually the same in 1960, by the end of the 20th century, Sub-Saharan Africa’s per capita income - even after adjusting for differences in purchasing power - was less than one-fourth of East Asia, Ndulu added.

With the exception of Botswana and Mauritius, growth in the rest of Sub-Saharan Africa has been episodic in the four decades since 1960 resulting in the region falling further behind the rest of the developing world and in income levels regressing relative to the levels in 1960.

In 2004, per capita income for a group of nine African countries had actually regressed relative to the levels in 1960. These include Angola , Central African Republic, Comoros, Madagascar, Niger, Senegal, Sierra Leone, DRC, and Zambia. The same year (2004), the per capita incomes of 13 middle income African countries were several-fold higher than 1960 levels. Although these countries together are home to 13 percent of Africa’s population they account for a combined total of 66 percent of all incomes earned in the region, the study reveals.

Zambia’s and Cote d’Ivoire’s per capita income have hardly progressed relative to their levels in 1960. Somalia and Liberia have lost significant ground in terms of income levels relative to the early 1960s.

Capital flight from Africa has made a dire situation worse. In 1990, it was estimated that Africans held up to $360bn, or 40 percent of their wealth, outside Africa. This compares with only 6 percent in East Asia and 10 percent in Latin America.

The study holds that the continent is capable of regaining the pace of robust growth it experience between 1960 and 1973. It urges African countries to create the right conditions to benefit from opportunities offered by the growing global economy and by information-based technology. Key among these conditions is the need to lower indirect costs that seriously constrain export-led growth, invest in skills and support innovation to spur productivity and competitiveness.

The report identifies opportunities, constraints and strategic choices that face African countries in their quest for achieving the growth necessary for poverty alleviation. It includes a broad menu of strategic options that countries can use in developing growth strategies, underlining the importance of good governance and bureaucratic efficiency; the importance of innovation (technological progress) in raising productivity and competitiveness; and the need to address infrastructure shortcomings, notably in transportation and energy. The study emphasises two dimensions of policy action: the need for African countries to avoid policy distortions (sins of commission) and the need to address the issue of under-provision of public goods to support the growth process (sins of omission).

In Africa, the costs of contract enforcement difficulties, inadequate infrastructure, crime, corruption and regulation can amount to over 25 percent of sales or more than three times what firms typically pay in taxes, Ndulu explained.

The assessment in the study uses the benchmarks of other developing countries to compare the state of institutional, policy, and regulatory frameworks; business regulations and their enforcement; adequacy and quality of infrastructure; stability of the macro economy; protection of property rights; and functioning of the financial system

http://www.businessinafrica.net/news/southern_africa/410405.htm

SE9

November 16th, 2006, 07:27 PM

http://eastandard.net/images/logomaine.gif

Kenya ‘hopeful’ of oil find in Mandera basin

The Government is hopeful that oil exploration in the northern Anza basin will produce a significant discovery, as was the case in Sudan, an Energy ministry official said.

"Because Sudan has discovered a lot of oil, we have a lot of hope in the Anza basin," Mr Martin Heya said in a presentation at the 13th annual Africa Upstream oil conference in Cape Town. The basin is a geological formation that Kenya shares with Sudan and Chad. The Kenyan section covers Mandera and Lokichar regions.

Exploration activities resumed in 2003 after a ten-year break. Industry interest in Kenya has increased in recent years, driven partly by heightened competition in more established crude-producing areas and advances in exploration technology that may reveal deposits overlooked in the past.

The oil industry in Sudan is by far the most advanced in eastern Africa, although experts say Kenya has made strides in recent years and is vigorously marketing itself as a destination for overseas oil companies.

"We’ve seen in Kenya how quickly they can market their acreage in five years," David Pratt, new ventures manager for oilfield services firm PGS, told delegates at the conference.

Currently, much of the new activity is centered on various offshore blocks on the Lamu basin. China’s state-owned China National Offshore Oil Company Ltd (CNOOC) is among those that have staked a claim on Kenya’s oil exploration scene. The company controls more than a quarter of the total exploration area in the country.

Apart from allocating blocks to CNOOC, Kenyan authorities have granted exploration rights to other firms, including Australia’s Woodside Energy.

Oil exploration in Kenya began in the 1950s when a group of Western companies drilled a few wells. Despite early promising signs, full-scale development was not carried out on the sites. More recent exploration has also failed to yield a major oil strike. France’s Total SA was among a group of companies that drilled ten wells between 1985 and 1990 in Kenya. The wells were found to contain limited amounts of oil and gas.

Africa Upstream, which began on Wednesday and closes on Friday, is the world’s largest and most significant event on oil exploration and development in the continent.

It follows an annual ‘Scramble For Africa’ strategy briefing attended by less than a hundred high-level delegates. No press is invited to this briefing. The meet is a major deal-making environment for people in the African exploration business.

A Royal Dutch Shell Plc representative at the same conference said that Africa would play an important role in ensuring that the world had enough energy to meet its needs in the coming decades.

The continent has become a key battleground for oil giants scrambling to meet strong global demand for oil, gas and other types of energy.

"Africa has a clear role to play in energy security for future generations," Mr Koos Beurskens, the Anglo-Dutch firm’s general manager for gas and power in South Africa.

Beurskens, however, added that civil unrest and problems ensuring security in some African nations posed a challenge to companies operating on the continent.

Harkeb

November 17th, 2006, 09:52 AM

It's really heart warming to read all the positive economic news on the continent. The only black spot, is Zimbabwe with its continuing downward spiral.

You are to blame

November 17th, 2006, 10:30 AM

Nigeria's external reserves hit $42bn
Published: 17-NOV-06

Lagos - Nigeria's external reserves rose to $42bn in November from $38bn at the end of September, President Olusegun Obasanjo announced on Thursday in Abuja, according to the official News Agency of Nigeria (NAN).

Speaking at a breakfast meeting with the nation's star footballers, Obasanjo said that his administration had inherited $3.7bn when it came into office in May 1999, according to NAN.

In October, the Nigerian government for the first time appointed professional external fund managers for its foreign reserves and assets, saying it wanted to align itself with best global practice.

It said it sought "to allow for professional management, diversification of investment and to leverage on the expertise of the foreign banks to transform Nigerian banks into global financial institutions".

The appointed managers include local banks, as well as foreign banks with local partners, such as J.P. Morgan Chase, BNP Paribas, UBS, Credit Suisse, United Bank for Africa, Zenith Bank, First Bank of Nigeria, Morgan Stanley and Bank of New York.

Three other foreign institutions, Barclays Bank (DCO), Deutsche Bank AG and Pacific Investment Management Company (PIMCO), were technically qualified, but could not be awarded mandates because they did not have local partners, the Central Bank of Nigeria said at the time of the appointments. -AFP

http://www.businessinafrica.net/news/west_africa/215838.htm

You are to blame

November 21st, 2006, 01:37 AM

News from Mauritania

Oil, debt relief push Mauritania's growth

Published: 20-NOV-06

Nouakchott - Strengthened by oil fields that recently came on-stream and international debt relief, Mauritania has seen economic growth take off, but many in the West African desert country have yet to benefit.

"Mauritania is undergoing an economic mutation and will post in 2006 a growth rate estimated at 13.9 percent compared with 5.4 percent in 2005," said Isselmou Ould Sidi Elmoctar, director of public projects at the ministry of economic affairs.

"The administration was stable and good governance and transparency have been re-established" by the military junta that toppled President Maaouiya Ould Taya from power in 2005, he added.

These reforms have allowed Mauritania to benefit from debt relief from creditors at a time when the country was effecting a transition to democracy, which would be completed with a presidential election scheduled for March 2007, Elmoctar said.

In December 2005, Mauritania's multilateral debt, which had risen to $830mn, was completely cancelled by international lenders.

The country's good economic health derives essentially from natural resource wealth, notably since the opening in March of the Chinguetti offshore oil fields near the capital Nouakchott.

The new sector, which should represent about 22 percent of GDP this year, has breathed unexpected life into the national budget.

According to the government, the debt cancellation combined with oil revenue would take Mauritania out of the circle of "poorest" countries and bring it into the club of "intermediary" countries.

Mineral resources - 12.8 percent of GDP - already in production, such as iron and copper, or soon to be mined, such as gold discovered in the north, also continue to support growth.

Another important source of revenue, the fishing industry, was the subject of an agreement in July with the European Union, which will bring $135mn to Mauritania per year until 2012.

But this flattering overall picture hides several negative aspects, such as "the difficulty in raising taxes despite a clear improvement of the fiscal base", said economist Isselmou Ould Mohamed. In addition, the great hopes placed on oil have already been deflated somewhat after production forecasts were recently revised downward in anticipation of results from exploration by Chinese and French interests, who were also looking at natural gas, which was still not exploited in Mauritania.

These difficulties have dropped projected revenues from the so-called "black gold" from an initial $300mn annually to $150mn in 2006 and 2007. A bonus of $100mn was, however, promised by the Australian firm Woodside, Elmoctar said.

But the growth has thus far failed to benefit many in the country. A good half of the population of three million still lives on less than a dollar a day, according to estimates from the economy ministry. "The country is rich in revenues, but poor within the population," Elmoctar said, adding that "three-quarters of the poor are rural".

Faced with this reality, public projects of the past year have focused on the fight against poverty in the countryside by building roads, dams, irrigation systems, and expanding the electricity network. -AFP

http://www.businessinafrica.net/news/west_africa/241874.htm

Matthias Offodile

November 24th, 2006, 11:13 PM

Angola: City of Benguela - Improvement of Sanitation Amounted At $436 Million

Angola Press Agency (Luanda)

November 22, 2006
Posted to the web November 22, 2006

Benguela

About USD 436 million will be invested as from the year 2007 each year to improve Benguela Province's littoral basic sanitation, in the ambit of the integrated project called "Infrastructures of Benguela", presented Tuesday in this city to the citizens.

The project will benefit 1.7 people residents of the province and is aimed at securing better quality of life to the population, contributing to the decrease of diseases, reduction of child mortality rate, as well as increase of peoples' life expectancy.

The works of the project are divided in five stages for nine years, and will start in the first quarter of 2007, under the responsibility of Brazilian and Angolan-Portuguese building companies.

The company will build among other things, systems of collecting and treatment of residual and fluvial waters of macro and micro drainage in the entireprovince, public lighting and paving of the main roads of access to the main towns of this coastal province, namely Benguela, Lobito, Catumbela and Baía Farta.

Matthias Offodile

November 24th, 2006, 11:17 PM

Angola: USD 46 Million for Huambo Hospital Rehabilitation

Angola Press Agency (Luanda)

November 21, 2006
Posted to the web November 21, 2006

Luanda

About USD 46.4 million are being spent on the repair and complete modernization of the Huambo Province Central hospital, whose works are to last 24 months, the institution manager, João Chicoa, disclosed to ANGOP.

In the ambit of the investment aimed also at increasing local sanitary services, 86 new ambulances will be purchased and distributed to various health units.

The hospital works are under the responsibility of the company Sinohydro and after conclusion, people from Bié and Kuando Kubango province and others will also benefit from it.

According to João Chicoa, the number of nurses will double after the work is concluded, thus stating the modernisation and increase of staff an important factor in assisting the main illness registered in hospitals like malaria, measles, HIV/AIDS, tuberculosis etc.

You are to blame

November 25th, 2006, 09:57 PM

Lets hope Nigeria continues along this path.

Nigeria: FG Spends 40 Percent Capital Budget On Infrastructure
This Day (Lagos)

November 22, 2006

Kunle Aderinokun And Onyebuchi Ezigbo
Abuja

Finance Minister, Mrs. Nenadi Usman, yesterday disclosed that $1.68 billion, representing 40 per cent of the $4.2 billion capital budget for this year, was appropriated for three key infrastructure including power, roads, railways and water supply.

And ahead of next month's scheduled launching of the Federal Government's $350 million support fund for local oil companies, a consortium of local banks have raised $260 million for the programme.

According to the Finance Minister, the 40 per cent of capital budget was in addition to a total of $2.3 billion committed on seven gas-turbine power plants, $1.6 billion on associated investments for downstream gas and $1.8 billion on investments for upstream gas.

Usman who spoke at the just-concluded National Council of Finance and Economic Development in Enugu, enthused that, with improved fiscal position, the Federal Government has started addressing the country's huge infrastructure challenges.

She added that, in the next 15 months, there would be additional expenditure on the $2 billion Mambila and Zungeru Hydro Projects.

Similarly, she noted that, other envisaged expenditure would be $3.5 billion to be expended on Railway rehabilitation while $0.5 billion would be spent on rural telephony and the provision of a national information and communication technology infrastructure backbone.

She pointed out that, fiscal and monetary policy measures have been carefully managed in the implementation of the Economic Reform Program-me, to bring about macro economic stability that is critical for growth and economic development.

A major component of the fiscal reform, she explained, was the decision to smoothen the expenditure pattern, and the pattern of GDP growth, by basing government expenditure on prudent oil price benchmark.

The finance minister said, by adopting this fiscal rule, government expenditure was disconnected from fluctuations in the oil price, adding that government fiscal balance moved from the previous 3.5 percent of GDP deficits to a consolidated fiscal surplus of about 10 per cent of GDP in 2004, and 11 per cent of GDP in 2005.

Noting that the GDP growth rate has averaged 7.6 per cent per annum over the past three years, she said this represented "significant improvement on the performance of the previous two decades when real GDP per annum grew by an average of about 3 per cent."

She said the non-oil sector has been the driving force behind the recorded growths, achieving 7.4 per cent in 2004 and 8.2 per cent in 2005.

According to her, the Federal Government has been able to maintain fiscal prudence, enhance revenue earnings, reduce both domestic and external debts, reduce inflation, stabilise exchange and interest rates with macroeconomic stability.

The National Tax Policy, she added, was focused on stimulating economic growth and creating incentives for positive social behaviour.

Usman also pointed out that, "we are simplifying customs procedures and have adopted ASYCUDA international software platform. We have also been successful in bringing down weighted average of our tariff regime from 27 per cent to 17 per cent."

She assured that the Commerce 44 initiative that seeks to harness Nigeria's export potentials and diversify the economy, would also be accorded top priority.

The initiative, she explained, was aimed at promoting the export of 11 commodities and 11 solid minerals to 11 export destinations.

Delving on improvements in key social indicators, she pointed out that, life expectancy rose from 54 to 57 years, HIV/AIDS prevalence reduced from 5.4 per cent to 4.4 per cent, while school enrolment has also risen considerably.

Usman said the 2007 budget would build on investments made on health, education, water resources and power in the 2006 budget, adding that there would be emphasis on transportation, in particular, railway, roads and inland waterways.

Meanwhile, ahead of next month's scheduled launching of Federal Government's ambitious $350 million support fund for local oil companies, a consortium of local banks have raised $260m for the programme.

The amount represents 74 per cent of the entire package of $350m, being set up to fast track the achievement of government's 70 per cent target for local participation in the country's petroleum industry.

Speaking at a legislative workshop on capacity building for Nigerian content development in oil and gas in Abuja, the Group General Manager, Local Content Division of the Nigerian National Petroleum Corporation (NNPC), Engr. Joseph Akande, said the corporation has secured the patronage of most local banks who have agreed to jointly set up a $260m credit line to support Nigerian content project.

THISDAY gathered that the support from the banks is being spearheaded by First Bank, Zenith, Oceanic, Guaranty Trust and Access Bank, along with other financial institutions in the country.

Akande said the drive for the achievement of the 70 per cent indegenous participation in the oil and gas industry projects is already in top gear following the commencement of implementation of a strategic policy meant to reserve certain percentage of contracts for local companies.

He said there has been a marked improvement in the work rate of Nigerian engineering personnel, such that their work book are currently in the excess of 3 million man hours.

HE added that fabrication jobs carried out by local companies have shown remarkable increase from 12,000 tonnage to 100,000 tonnage, while the fabrication yard lifting capacity rose from 100,000 to 500,000 tons.

Akande said NNPC is actively implementing various programmes ranging from engineering training, skills acquisition for fabricators and other capacity enhancement schemes for local operators in the oil industry.

He said NNPC and the Petroleum Development Technology Fund (PTDF), have compiled a data bank comprising 700 engineers that would be taken through specialist training in designs and fabricating skills.

According to him, the aim of the capacity training is to prepare Nigerian operators adequately to be able to participate in the execution of $17 billion oil industry projects planned over the next 5 years.

Senator Victor Oyofo, who represented the Senate President, Mr. Ken Nnamani at the event said government is fine-tuning the legislation on local content with a view to effecting its passage.

He said legislation would redress a neglect that has been on for years.

"We must overhaul our society, so that the practitioners in the sector who want to exercise or take advantage of the local sector can, to some degree, rely on what the state can provide because the state has a responsibility to provide basic infrastructure to make it possible for you to rise and take advantage of local content", he said.

Chairman, Senate Committee on Petroleum Resources (Upstream), Senator Lee Ledogo Maeba, noted that while countries that are producing oil as Nigeria are already applying local content, we are still in the process of getting our own off the ground.

"It is a shame that we are talking about local content 50 years after exploration, oil companies operate on negotiation and we must end that trend by putting in place a legislation.

"Before the senate, there is an Oil Content Bill and we are going to work on it for the President Olusegun Obasanjo to sign it into law, before the end of the year", he said.

He said the directive of the Federal Government and NNPC on the minimum local content in the oil sector was not sufficient as such instructions could be reversed by another government in future.

"We need a robust legislation so that Nigerian contractors can take the companies to court if they are not satisfied", he said.

You are to blame

November 28th, 2006, 04:41 AM

Good news from Morocco

Is Morocco’s economy booming?

Some Moroccan economists hail economic boom this year, others accuse government of massaging figures.

By Abdelfettah Fakihani - RABAT

Morocco is officially enjoying an economic boom this year, with the state predicting that growth will leap to 7.3 percent from just 1.8 percent in 2005.

But while some economists are hailing the upturn, others are sceptical about the rosy outlook presented by a government with an eye on next year's general election.

They warn that continued growth will depend on the fortunes of the north African country's key agricultural sector. And in these days of global warming, that farming sector depends on the vagaries of increasingly unpredictable weather.

The kingdom of Morocco has in recent months attracted significant foreign investment. The tourist industry has sparked particular interest, with United Arab Emirates groups EMAAR and Dubai Holdings pouring nine billion dollars into the sector.

Major infrastructure projects are flourishing - in roads, in low-cost housing to replace slum dwellings and in bringing power to the countryside. Energy Minister Mohamed Boutaleb says the electricity grid will be extended to cover 89 percent of the largely rural country by the end of 2006.

"Morocco is well on the road to sustainable growth," said Abdelali Doumou, professor of economics at Casablanca University. Average economic growth was 4.7 percent between 2001 and 2006, compared to 3.0 to 3.5 percent in the 1990s, he noted.

The huge infrastructure projects and the halving of Morocco's foreign debt to 11 billion euros (14.4 billion dollars) over the past seven years are contributing to national wealth, he told AFP. So are improvements in governance and and public companies, which are set to invest 53 billion dirhams (4.82 billion euros) in 2007.

"There is also an undeniable improvement in Moroccans' standard of living," Doumou added, pointing to a surge in car sales and mortgages.

If there is a major weakness in the Moroccan economy today, it is its regional disparities of wealth, which need evening out, he said.

For example, in the southern region of Marrakesh, increasingly prized by European tourists and house-buyers, 7.0 percent of the population lives below the poverty line. In the western regions of Essaouira and Chichaoua poverty scales heights of 30 percent.

Other economists are less enthusiastic, though.

The state planning commission (HCP) recently announced that the number of jobless people in Morocco - a country of 30 million - had just dropped below the one-million mark for the first time in 13 years. Officially, unemployment now stands at 7.7 percent of the active population, as opposed to 11.1 percent a year ago.

Around the same time, Finance Minister Fathalah Oualalou declared the number of people living in extreme poverty - surviving on less that one dollar a day - had fallen to 14 percent in 2005, or 4.2 million people, from 16.5 percent in 1997.

"The figures have been massaged," protested Najib Akesbi, economics professor at the Hassan II Agronomy Institute in Rabat.

"How can you say the poverty rate and unemployment rate are falling when Morocco's Human Development Index in the United Nations Development Programme report for 2005 is stagnant? The country was classed 124th (in 2005) and 125th the previous year."

"The government is churning out propaganda in the run-up to the autumn 2007 parliamentary election," he sniffed.

Akesbi acknowledged that "privatisation of the air transport sector and the 'Azur' plan for the tourist industry are positive points".

But, he cautioned, "growth is volatile because it depends on climatic conditions and these are changing."

Farming employs 40 percent of Morocco's active population and generates between 15 and 20 percent of gross domestic product, depending on the year. Nearly 45 percent of the population lives in rural areas.

"There is growth but it's fragile," agreed Mustapha Meftah, economist and deputy director of the national construction federation.

"The weight of the farming sector in the economy is still significant. We haven't yet got into a virtuous growth circle," he said.

"It's paradoxical to declare that Morocco is close to full employment when only a handful of sectors are showing any dynamism," Meftah continued.

"The informal sector and hidden unemployment are still huge - particularly in the countryside."

http://www.middle-east-online.com/english/business/?id=18496

You are to blame

November 28th, 2006, 04:46 AM

RWANDA

Rwanda points, clicks its way to growth, change

27 November 2006 09:54

Ange Mukarusagara never thought she would get the chance to use a computer at school.

That used to be the exclusive privilege of a handful of students at the National University of Rwanda. But times are changing.

The tiny Central African country wants to become one of the most plugged-in countries on the continent. Hundreds of kilometres of fibre-optic cables have been laid, the capital Kigali is working to become a high-tech hub and computers have been placed in thousands of schools.

Mukarusagara's Groupe Scolaire de Muhura, a secondary school in a village set between hills and banana plantations, is one beneficiary.

"I had never dreamt of doing this," the shy 22-year-old said as she clicked her desktop computer to open an interactive site showing the human respiratory process.

Like many second-level students in a country where conflict closed schools for long periods, she is older than Western counterparts. She is studying physics, chemistry and biology.

"This has now become my library," Mukarusagara said. "It is very difficult for us to access textbooks."

Almost half Rwanda's 2 300 primary schools now own at least two computers. More than 100 out of 500 secondary schools offer computer laboratories with wireless internet. And the government plans to provide all secondary schools with broadband access by 2010.

"In the absence of major natural resources, we can only depend on our human capital to grow this nation," said Albert Butare, Minister for Energy and Communications.

Coffee and tea are Rwanda's main export earners and have helped the economy grow at an average of 7% over the past five years, putting the country among the top economic performers in Africa during that time.

But the government wants to move away from reliance on rain-dependent agriculture.

"Look at what the Asian Tigers have done to grow their economies," Butare said. "The secret to their success is training their people in science and technology. This is the route we want to take."

'A country reborn'
Building up the information technology sector would help Rwanda deliver on its Vision 2020 development plan, which aims to raise per capita income to $900 from the present $230 by the end of the next decade.

But Rwanda is seeking more than just an economic transformation.

To the outside world, the country is still synonymous with the 1994 genocide of nearly 800 000 Tutsis and moderate Hutus by Hutu extremists in a 100-day campaign.

Authorities are striving to change this image.

One part of the strategy has been to lure more tourists. Already home to a third of the world's mountain gorillas, Rwanda announced plans this year to import rhinos to solidify its place as a top destination for wildlife enthusiasts.

President Paul Kagame has also sought to attract investors, saying the country's location, zero tolerance for corruption and current peace and security were strong incentives.

Information technology is one of the areas which officials want to develop in order to win fresh foreign funds.

For now, state institutions are proving the boldest in making the leap into advanced technology as Rwanda seeks to position itself as an African leader in communications technology.

Bulky paper work for parliamentary sessions and Cabinet meetings is a thing of the past as all documents are handled electronically.

The senate, the Parliament's upper house, is transforming itself into a high-tech base. It is offering free rent to get companies to move into the modern Kigali office tower that is its home.

And Rwanda has been chosen as the headquarters for a project to build a submarine cable that would drastically lower telecom costs in East Africa.

A fibre-optic cable runs to a telecom mast atop the 4 500m Karisimbi volcano, which is set to become a regional air traffic control centre.

The government can point the way, but for these high-tech plans to bear fruit, it needs the younger generation to commit to learning the right skills.

Early signs are promising.

From the primary level on, Rwanda's education system favours science subjects, offering a wider range of such disciplines than previously. The Kigali Institute for Science and Technology, on ground once occupied by army barracks, has produced about 2 000 graduates since its establishment in 1997

And more students are looking to follow this path.

"I have chosen to concentrate on physics so that I can do computer engineering at university," said Pauline Hakizimana (20) who is also studying at Groupe Scolaire de Muhura. - Reuters

http://www.mg.co.za/articlePage.aspx?articleid=291259&area=/breaking_news/breaking_news__business/

You are to blame

November 28th, 2006, 04:52 AM

Djibouti
Djibouti to become East Africa's main port

Published: 27-NOV-06

Djibouti - The tiny but strategic Red Sea state of Djibouti was working all out to become the Horn of Africa's main regional shipping terminal over the next few years.

The expansion of Doraleh port, about 10km south of the capital, entails construction of a 2km container jetty for deep-water anchorage, allowing an additional 1.5 million offloads a year, officials said.

Located at the southern end of the Red Sea on the Gulf of Aden, Djibouti, a former French colony, was a key staging post between the Mediterranean and the Suez Canal shipping route through to the Indian Ocean.

It was also home to the largest overseas French military base and the only United States military base in Africa.

The port, with four container terminals and 10 cranes, currently has the capacity to handle 10 million tonnes of general cargo and 400 000 container units per year and the upgrade would significantly boost in cargo traffic, officials said.

In 2000 the government went into partnership with Dubai's DP World, one of the world's largest container port operators.

DP World said the new port would be operational at the end of 2008.

The Dubai government-controlled DP World became one of the world's top three container port operators after its $6.9bnacquisition of Britain's Peninsular and Oriental Steam Navigation Co earlier this year.

The construction for $400mn of the new container terminal in Doraleh was launched officially last weekend, and with its extra offloads should knock Mombasa in Kenya off its perch.

The first phase of the upgrade, a $130mn oil terminal was launched in February, with a capacity of 370 000m3 and 200 lorries a day.

The expansion was expected to improve access to the region, especially Africa's main trading bloc, the Common Market for Eastern and Southern Africa (Comesa), which counts 21 countries and 400 million inhabitants.

"Djibouti is the main entry point for Comesa," said its secretary general, Festus Mwencha.

"In 10 or 15 years we hope that we will be able to go from Djibouti right to the Democratic Republic of the Congo, we have plans for access, notably rail," he said.

The plans have also been welcomed in a desert country of around 800 000 inhabitants that does not have any natural resources.

"The port of Doraleh will allow Djibouti to have a new clientele: very big ships coming directly from Europe or Asia," carrying 10 000 to 12 000 containers, Thierry Marill, the Djibouti-based secretary general of the Marill Establishments said.

"Raw materials can get to Djibouti, which will allow processing businesses to play their role, create jobs and which means in the medium term more industries," he said.

On top of the development of the port a duty-free zone was being set up, which should open the way for setting up new companies.

"Our ambition is to promote Djibouti as the gateway for investors to Africa and of exit for African producers towards other continents' markets," said Zeinab Kamil Ali, who manages the port authority and Djibouti'as duty free zone. -

http://www.businessinafrica.net/news/east_africa/346802.htm

Matthias Offodile

November 28th, 2006, 12:41 PM

Angola: Conclusion of Kuito Airport Works Creates Expectations

http://news.bbc.co.uk/olmedia/1390000/images/_1394645_angola_kuito_map150.gif

Angola Press Agency (Luanda)

November 24, 2006
Posted to the web November 27, 2006

Luanda

The conclusion of the works of rehabilitation and enlargement of Joaquim Kapango airport, in Kuito city, Angola's central Bie province, set for the first quarter of 2007, is creating expectations from the local community, in view of its importance to the region's socio-economic development.

Once rehabilitated, the new Joaquim Kapango airport runway will be in position to receive heavy aircrafts.

Estimated at Usd 18 million, the second phase of the works will focus on the full fencing of the area, restructuring of the runway adjacent areas and modernisation of the passengers terminal.

A total of 115 workers are involved in the repair and enlargement of the runway that will have 2,500 metres long and 60 metres of width.

Kuito airport runway has been out of operation since 2002, as a result of the bad condition of the ground that only allowed the landing of light planes.

You are to blame

November 30th, 2006, 01:49 AM

Article on how South Africa is doing.

Manuel pleased by news of buoyant economy

South Africa's economy remained "extremely buoyant" and the country's current account gap is expected to ease slightly, Finance Minister Trevor Manuel said on Tuesday.

"The present economic environment is extremely buoyant. What started off as a consumer boom has been translated into rising investment," Manuel said in a speech to a trade union federation.

"Rising investment has led to employment growth, further contributing to rising consumption. We are capable of accelerating growth even further," he added.

Manuel said the pace of job creation in South Africa had risen to a point where employment is created faster than new entrants are joining the labour market, but he said more work needed to be done to sustain the trend.

Statistics South Africa said earlier on Tuesday the economy grew by 4.7 percent in the third quarter of 2006 and revised upwards growth figures for previous quarters and the last three years.

It said the economy expanded by 5.1 percent in 2005 - its highest rate in more than two decades.

The quarterly number was down on the previous three months but pointed to solid growth despite interest rate increases of 150 basis points in interest rates since June.

Manuel in February cut his economic growth forecast for 2006 to 4.4 percent.

"Higher interest rates, faster public sector infrastructure spending, the moderately weaker currency and improved performance of our exporters should allow for a slight easing of the current account deficit. However, if we do not improve our export performance, our economic performance would not be sustainable, requiring a forced slowdown in growth to re-balance the economy," Manuel said.

The central bank has repeatedly warned a yawning current account shortfall of over six percent of GDP poses a danger to the rand currency, down about 11 percent against the dollar so far this year.

http://www.int.iol.co.za/index.php?set_id=14&click_id=6&art_id=qw1164748325311B216

Matthias Offodile

November 30th, 2006, 12:52 PM

Nigeria?s GDP Rises By 7.5%

From Josephine Lohor in Abuja, 30.11.2006

Governor of the Central Bank of Nigeria (CBN), Professor Charles Soludo, yesterday disclosed that Nigeria's Gross Domestic Product (GDP), has risen by 7.5 per cent.
Briefing State House Corre-spondents on the outcome of the weekly Federal Executive Council (FEC) meeting, Soludo also disclosed that the nation's inflation rate has fallen by 6.5 per cent.
Speaking alongside the Minister of Information and National Orientation, Mr. Frank Nweke, the CBN governor stated that in the last two years, the naira has remained relatively stable against the United States dollar.
He added that another cheering news on Nigeria's economy was that the naira has found a common meeting point at both the parallel and official markets.
Nweke, on his part, however, disclosed that the reported GDP was below the target of 10 per cent by the Federal Government at the beginning of the year.
He said before 1999, when the present administration came on board, inflation rate was in double digits but as result of on going reforms in almost all the sectors of the economy, a single digit has been realised.
The Minister added that the Economic Intelligence Unit of London and the Transparency International (TI) have all reported that the Nigerian economy, based on the performance of the Federal Government and recent index, has the potential to record appreciable growth in the nearest future.
He further said the growth recorded in the economy was propelled by the deliberate efforts by government to diversify the economy through a substantial investment in the non-oil sector, which resulted into a major boost in the agricultural sector.
According to him, the huge investment in the agricultural sector has resulted in self-sufficiency in the production of cassava, with Nigeria being the largest producer in the world; poultry, vegetable oil, among other food crops.
Nweke further stated that the FEC has approved a credit facility from the World Bank worth $180 million for some states including Kano , Bauchi, Rivers, Anambra, Jigawa and Akwa-Ibom to fight Malaria, as part of the ?Malaria Plus Intervention Package?.
Meanwhile, Vice Pres-ident Atiku Abubakar yesterday did not turn up for the weekly Economic Mana-gement Team meeting and the FEC that was presided over by President Olusegun Obasanjo.

Matthias Offodile

November 30th, 2006, 01:32 PM

Angola thinking of join Opec cartel

Published: 30-NOV-06

Luanda ? Angola has plans to join the Organisation of Petroleum Exporting Countries (Opec) cartel, the county?s finance ministry has said.

Spokesman Bastos de Almeida said: "The council of ministers has said it backs Angola joining Opec."

Angola is Africa?s third largest oil producer, behind Nigeria and Libya. This has had a dramatic impact on the country?s growth. In 2005, the Southern African nation grew at 20.6 percent, the second fastest in the World, according to the International Monetary Fund.

Angola currently produces 1.4 barrels a day and the country will reach at least 2 million bpd by the end of 2007. -Business in Africa Online

kulani

November 30th, 2006, 04:23 PM

DRC, Zambia join Eassy

BY PAUL VECCHIATTO , ITWEB JOURNALIST

[ Cape Town | ITWeb, 30 November 2006 ] - Twelve countries have signed the East African Submarine Cable System (Eassy) protocol, with the latest, Zambia, due to formalise its participation at a ceremony in Lusaka today, says SA's Department of Communications.

Yesterday, Democratic Republic of the Congo (DRC) ambassador, Beene M'Poko, signed on behalf of his country in the South African capital of Pretoria.

Edmond Kagaiga, from the e-Africa Commission, witnessed the signing on behalf of the African Union.

It is not yet known if any more of the original 23 countries that initially agreed to the Eassy memorandum of understanding would meet today's cut-off date for signing the protocol.

Communications department director-general Lyndall Shope-Mafole previously said other countries were welcome to join after the deadline, but would be unable to influence the conditions of the protocol.

Zambia's signing is considered critical to the success of the land component of the whole project, as it will provide the central land link between SA and its immediate neighbours and countries such as Uganda and Rwanda.

Countries that have signed the Eassy protocol are SA, Botswana, Tanzania, Madagascar, Malawi, Mauritius (which signed earlier this week), Rwanda, the DRC, Uganda, Lesotho, Zambia and Zimbabwe.

During the DRC signing, Henry Chasia, head of the e-Africa Commission, said a critical number of countries had joined Eassy. He also said a meeting of the signatory countries would be held on 15 December, probably in Pretoria, where they would nominate companies from their countries that would participate in the roll-out of the system.

Communications department spokesman Richard Mantu says more countries are expected to join Eassy once the project gets under way.

Angola, Burundi, Djibouti, Eritrea, Ethiopia, Mozambique, Namibia, Somalia, Sudan, Swaziland and Kenya have yet to sign.

http://www.itweb.co.za/sections/telecoms/2006/0611301037.asp?A=AFN&S=All%20Africa%20News&O=FPIN

kulani

December 1st, 2006, 12:18 PM

This is good news as we have been concerned that the Eassy project (worth some $650 million) was going to flop, mainly due to Kenya pulling out of this and deciding to develop its own cable. The east african countries have been unable to benefit from fast, stable and cheaper international connectivity due to the lack of a fiber optic cable linking that part to Europe and the rest of the world much in the same way that SAT3 linked West African countries including those in the South to the rest of the world with a 120 Gigabit cable.

Their broadband services, outsourced services and ICT services market will hopefully explode due to the markets that this submarine cable will open up especially for countries like Rwanda that are transforming into ICT pioneers. I cant wait to finally see this cable break the ground.

africa500

December 1st, 2006, 12:25 PM

Sudan to announce results of 3 oil tenders in ’07

Nov 30, 2006 (CAIRO) — Sudan’s Oil Minister Awad Ahmed al-Jaz said Thursday that the results of tenders for three oil blocks are expected to be announced next year.
(JPEG)
Awad al-Jaz

"We’ve had many small companies that have submitted applications for the blocks," he told Dow Jones Newswires on the sidelines of an energy conference in the Egyptian capital.

One of the blocks is both onshore and in shallow waters. The other two blocks are onshore, al-Jaz added.

The Sudanese oil industry is currently dominated by investments from Chinese, Indian and Malaysian firms.

Sudan plans to double its crude oil output to 1 million barrels a day over the next two years.

"We’re currently producing about 500,000 barrels (a day), and we’re hoping to reach a total of 1 million barrels a day by around 2008," al-Jaz said.

Al-Jaz earlier confirmed that his country was close to joining the 11-nation Organization of Petroleum Exporting Countries that supplies around 40% of the world’s daily oil consumption.

"Yes we have concluded some measures already and we are closer to joining," he said.

Angola, sub-Saharan Africa’s second-largest oil producer after Nigeria, is also poised to join. The joining of the two new members will significantly boost OPEC’s influence over global oil markets.

On nuclear power, al-Jaz said Sudan had no plans to develop its own program.

"There are no preliminary plans or anything to develop a nuclear program. We have enough issues to deal with," he said.

Several countries in the Middle East and Africa, including OPEC members Saudi Arabia and Nigeria, have had discussions with the International Atomic Energy Agency about developing nuclear power programs to supplement their overall energy supplies.

(Dow Jones)

Matthias Offodile

December 3rd, 2006, 06:09 PM

Nigeria to top Africa's mobile market

afrol News, 22 November 2006 - It is predicted that Nigeria, which is Africa's most populated country, is set to lead mobile phone market in the continent in 2007, surpassing South Africa. Also, the Nigerian mobile subscriptions will exceed 30 million at the end of 2006.

At the moment, South Africa - Africa's giant economy - leads the mobile market in the continent. Its mobile - or cell phone, as they are called in South Africa - subscriptions are expected to shoot up to 35 million by the year's end.

These predictions were disclosed by Informa Telecoms & Media's World Cellular Information Service, which is a searchable online database that provides constantly updated sources of research on the wireless industry worldwide. The body also provides business intelligence and strategic services to the global telecoms and media markets.

According to the database, it is also predicted that there will be 44 million mobile phone users in Nigeria by the end of 2007 compared to 40 million estimated users in South Africa, meaning that Nigeria will take on the African lead sometimes next year.

Going by the current statistics, Nigeria - that currently account for 14 percent of Africa's total mobile users - is expected to increase the number of users by 5 percent before the year ends. In addition, the country is expected to add 13 million subscriptions totally over the year 2006, which increases the subscriptions to 44 percent.

The reason for Nigeria still to lag after South Africa is that there still is a low percentage of Nigerians using a mobile phone. "With an estimated 130 million inhabitants, Nigeria is Africa's most populated country. Despite a high yearly growth (181 percent over 2004 and 96 percent over 2005), the country's penetration rate was still at 19 percent in September 2006 compared to 77 percent in South Africa at the same period," explained Informa Telecoms and Media principal analyst, Devine Kofiloto.

Currently, Nigeria is a very competitive market with four GSM players and five CDMA networks actively involved in the mobile field.

And as of September 2006, Informa Telecoms maintained, Nigeria counted 25 million mobile users, with MTN leading the market as it held a 41 percent share. Globacom and Celtel respectively controlled 29 percent and 24 percent of the market, while M-Tel was at 4 percent. Of all mobile users in Nigeria, the five CDMA networks represented only 2 percent.

By staff writer

© afrol News

Nigeria will top the 100 million mark by 2010!:)

naijalove

December 3rd, 2006, 06:55 PM

I like the privatization of the Mobile Market. You can see how much can be done if we allow private insitutions to supply goods to the Nigerian market. I think this market is very vibrant and can also be tapped into if we open up and privatize electricity, water supply and infrastructure (roads, e.t.c). Alot will be achieved.

Globacom is a recent indigenously Nigerian company and I am impressed how they racked up 29% market share within 1.5 years. I would like them to control the Nigerian mobile market. Currently they are the fastest growing company in Nigeria.

kulani

December 4th, 2006, 01:43 AM

A model that could be of benefit to Nigeria as a financing model for infrastructure, is Public Private Partnerships (PPP) which is becoming increasingly popular in Southern Africa to help finance infrastructure development. Most recently the Gautrain rapid rail project in SA is being co-financed using this model as a partnership between govt and private partners. It is also a sign of confidence for private investors when the government itself is committed to investing in a partnership and it also help the government to not run out of financial resources by tapping into private investment for critical infrastructure projects.

That said, the signs of Nigeria's fast economic growth are many in Ghana, where i have been seeing a whole host of Nigerian banks (Zenith, Standard Trust, GTBank, Fidelity, Inter Continental Bank etc) expanding into Ghana and other West African countries. I have been quite impressed by their aggressiveness and ability to change the rules of the game in a banking sector like Ghana's that has largely been an old boys club that has mostly been too comfortable and failed to make access to a bank account for the majority of people in Ghana.

Matthias Offodile

December 4th, 2006, 02:32 PM

'Gabon's inflation won't exceed 2% in 2006'

Posted 27 Nov 2006

Libreville – Gabon’s inflation would not exceed 2 percent this year, said the Central Bank of Central African States (BEAC).

The bank said that despite increases in consumer prices, it did not expect inflation to go above 2 percent.

Gabon has had low inflation for several years. Inflation was 2.9 percent in 1999, 1.5 percent for the following two years, before edging up to 2.3 percent in 2002 and then dropping to 0.5 percent in 2003.

The BEAC was also optimistic that Gabon shows a strong increase in sustainable job creation for the year.

The BEAC said: "The level of employment will be stable thanks to the negotiations undertaken by the employers' organisations, trade unions and the government.” -Business in Africa

naijalove

December 4th, 2006, 03:20 PM

A model that could be of benefit to Nigeria as a financing model for infrastructure, is Public Private Partnerships (PPP) which is becoming increasingly popular in Southern Africa to help finance infrastructure development. Most recently the Gautrain rapid rail project in SA is being co-financed using this model as a partnership between govt and private partners. It is also a sign of confidence for private investors when the government itself is committed to investing in a partnership and it also help the government to not run out of financial resources by tapping into private investment for critical infrastructure projects.

Those are the kind of ideas I am talking about. We have this either or approach in Nigeria where its either all government or all private. Most of the failure of infrastructure in Nigeria can be attributed to government controlled enterprises which ironically had no motivation to serve the public or make business profit whatsoever.

We are now left with an industrialization bottleneck of electric power needs. I would love to see the PPP model you mentioned applied to meet electrification targets. I dont see how Nigerian goverment can go at the electrification project alone. It is too costly.

kulani

December 4th, 2006, 05:31 PM

Angola oil 'could be a curse'
04/12/2006 16:03

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2040007

Angola could end up cursed by its natural resources unless it uses its soaring oil revenues wisely by investing in much-needed infrastructure, while improving transparency, a World Bank economist said on Monday.

"The oil curse is a possibility here - but it has the opportunity to change the curse into a blessing if it puts good policies in place and improves transparency," Francisco Carneiro told Reuters.

Last week the World Bank released a new report on Angola which advises the government to make a full transition from a centralised economy to a free market and better manage its spending.

Angola has one of the fastest growing economies in the world - projected to grow 31.4% in 2007, according to the International Monetary Fund (IMF).

Oil fuels economy

Oil production, buoyed by the end of a 27-year civil war in 2002 and heavy foreign investment, has risen more than 10% to 1.4 million barrels per day since last year. Output is expected to hit 2 million bpd in 2007.

Carneiro warned that time is running out to ensure that its newfound economic fortune is put to good use, in vital areas like infrastructure and employment.

"Oil will peak in five to six years and then decline. To build the infrastructure will take time, so needs must be managed with civil society participation," he said.

Critics have for long bemoaned what they see as the Angolan government's opaque finances. Earlier this year the government for the first time published its signature bonuses received from companies bidding for new offshore acreage.

Pointing the finger

But Carneiro said this is not sufficient and accused state-oil company Sonangol of continuing to operate outside the budget.

He said, worryingly, the rise in oil production and accompanying exchange-rate appreciation has seen a steep decline in agricultural exports, rendering it difficult to develop local industries and create employment.

"Government is spending money but not generating employment. This is a serious concern - government has to be more up front about how to help the poor," Carneiro said.

Angola's relations with the World Bank and the IMF have been strained due to the Bank's concerns about corruption and a lack of democratic progress.

The government has responded by strengthening political and financial ties with developing nations, particularly China, which has provided more than $3bn in oil-backed credit and loans since 2005.

kulani

December 4th, 2006, 05:36 PM

The emergence of China backed financial aid for African countries is something that is beginning to become common and is poised to limit the roles of the traditional Bretton woods institutions (IMF and World Bank). The angolan article above claims that nearly $3 billion worth of financial aid packages that are backed by oil have been provided for Angola by Beijing. Is this a good thing for Africa, how do we see the relationships being different now that the African governments are cosying up with the Chinese and rejecting the Western controlled IMF and World Bank. Just some questions and food for thought.

SE9

December 4th, 2006, 07:55 PM

Kenya Airways voted 'Most Respected Company' in East Africa

Kenya Airways (KQ) has been voted as the most respected company in East Africa for the second year in a row.

The airline takes the 2006 East Africa’s Most Respected Companies Award for the second year in a row after business leaders threw their support behind it’s massive expansion into Africa, the Far East and Europe.

KQ also emerged as the most respected company in Kenya, with Tanzania Breweries taking the honours in Tanzania. MTN won Uganda’s most respected firm award at the 7th annual survey, whose results were released on Saturday.

Within the industry sectors, Homegrown was for the third year voted the top firm in agriculture sector.

Standard Chartered Bank won the financial services sector for the second year running, while Serena Hotels came out top in the hotels and tourism sector.

East African Breweries took the manufacturing sector award, while Nakumatt, thanks to its growing market share and massive expansion programme, was named the top company within the Services sector.

Safaricom, with a subscriber base of 4.7 million, maintained its lead in the Telecommunications and ICT sector even though it had to beat off a tough challenge from MTN Uganda and Celtel (Tanzania).

New entrants among the to-ranked companies were Precision Air of Tanzania, which was third in the Services sector, and Kempinski Hotel (Uganda), which took the second position in the hotels and Tourism Sector.

Mumias Sugar moved from the third place in 2005 to second this year in the agriculture, while Mukwano Group of Uganda took the third place in the manufacturing sector after EABL and Bidco Oil.

PricewaterHousecoopers (PWC) country leader, Mr Charles Muchene, the director of the survey said a total of 308 CEOs participated this year’s survey, an increase from the previous year’s 291.

Participation levels in Uganda had increased to 96, while Tanzania had 102 respectively.

Muchene said business leaders are placing more premiums on the need for focused expansion, strategy and visionary leadership.

The quality of services and products were also key factors that influenced the voting patterns.

Matthias Offodile

December 5th, 2006, 12:52 PM

December 5th, 2006

Nigeria partners S/Africa on nuclear energy infrastructure

Nigeria and South Africa have begun preliminary discussions on building nuclear energy infrastructure in the country, following the recent approval of the Federal Executive Council (FEC) for the construction of a nuclear power plant in the country to generate electricity.

EJIOFOR ALIKE

A source at the Federal Ministry of Power told BusinessDay that the choice of South Africa was based on a number of factors including the fact that it was home to Africa’s only nuclear power plant at Koeberg, near Cape Town.

According to the source, the country is also developing new pebble-bed nuclear technology which will be more suited to developing countries like Nigeria.

Lastly, European, Asian and American nuclear power companies, the source said, would not agree to invest in the developments of nuclear energy in Nigeria unless there was extremely large regional market the investments would support.

Th source said South Africa was seeking to build an integrated regional nuclear energy market for the continent and was considering the establishment of a regional nuclear and radiation safety regulatory forum.

The source disclosed that high-level talks were continuing between Nigerian officials led by Liyel Imoke, minister of power and Bulelwa Sonjica, South Africa’s minister of minerals and energy, as well as Rob Adam, the chief executive of the country’s Nuclear Energy Corporation.

The discussions, he said, also border on how to strengthen regulatory frameworks, infrastructure and safety standards in the region.

According to the source, despite increasing world interest in nuclear power as an alternative to coal and gas-powered electricity generation, Africa is still far behind in nuclear technology and this has led to power shortages which retard economic development.

They attributed this to huge costs and lack of technical expertise, adding that without huge investments, the infrastructure necessary for nuclear energy cannot be established.

Statistics shows that less than 5,000 people work in the nuclear sector in the whole of Africa, compared to 70,000 in Areva, the world’s biggest nuclear reactor manufacturer.

Apart of Nigeria, other countries such as Egypt and Tunisia have made their intentions to build nuclear power stations while there are already existing research reactors in South Africa, Egypt, Libya, Algeria, Nigeria, Ghana, the Democratic Republic of Congo, and Morocco.

FEC had earlier this month approved the construction of nuclear power plant to generate electricity as part of the Federal Government’s renewed efforts to increase power generation to 40,000 megawatts by 2015.

However, latest report from the International Atomic Energy Agency has opposed Africa’s regional approach to nuclear programme. The agency condemned this "one-size-fits-all approach for African countries".

According to the report, how countries trade off things like accident risks, cheap electricity, pollution, jobs, import dependence, and climate change is at least partly a matter of personal and national preference.

The report maintained that these were areas of legitimate disagreement among the affected countries, no matter their commitment and faith in the programme, adding that new nuclear programmes in the world were unnecessary.

According to it, if today’s increasing energy needs are met, it would be because developed countries with existing nuclear infrastructure built more plants and not because a host of new countries decided to start building new nuclear plants.

africa500

December 5th, 2006, 01:03 PM

Kuwaiti firm to expand mobile network in Sudan

Dec 4, 2006 (KUWAIT) — A Kuwaiti telecommunication company said planning to invest 140 millions euros in order to expand its network and cover the major parts of the country.

The Kuwaiti Mobile Telecommunication Company (KMT) announced that it will invest 140 million euros, equal to 184.7 million dollars, to expand its network in Sudan.

The delegate member of the Kuwaiti Telecommunication Company, Saad Al-Barak, announced that the company has made reduction in the call prices for its customers.

He said that Mobitel is targeting 4.5 million customers in the second quarter of the year 2007.

Al-Barak indicated that Mobitel plans to extend its network to more 70 cities and towns and around 4,300 kilometers of major roads in Sudan, toward making the cell phone service available to around 80% of the population in Sudan.

The Kuwaiti Mobile Communication Company has utilized 300 million euros, since its purchasing of Mobitel Company in February 2006, for enhancing its communication services and introduction of modern technology in Sudan.

(ST)

africa500

December 5th, 2006, 10:33 PM

Kuwaiti investments in Sudan up to USD two billion - Minister

Dec 3, 2006 (KUWAIT) — Sudanese Minister of Finance and Economy Al-Zubair Hassan said Sunday that the Kuwaiti investments that top the list of Arab investments in his country, are up to USD two billion.
(JPEG)
Al-Zubair Ahmed al-Hassan

This came while speaking to KUNA after arrival here at invitation from the Kuwait-based Inter-Arab Investment Guarantee Corporation (IAIGC) and the Chamber of Commerce and Industry, to take part in a symposium titled "Investment Climate in the Sudan and the relevant guarantees," slated for Monday at the Chamber’s headquarters.

He indicated the robust relations between both countries and reminded that Kuwait started investments in Sudan in the seventies and that the Kuwait Fund for Arab Economic Development (KFAED) eased lot of assistance to beef up his country’s economy.

He stressed that the Khartoum gathering, held last month, underlined the need for cooperation and strategic partnership with GCC states.

The minister predicted further Kuwaiti investments in his country including the establishment of an over USD one billion capital bank.

Hassan cited the purchase of the Sudanese national telecommunications company, Mobitel, by the Kuwait-based MTC (Mobile Telecommunications Company) and advent of other Kuwaiti companies for running business in the Sudan such as the Aref Group.

The Sudan, he went on, started its open economic policy in recent years and this came against the backdrop of economic stability, rise of the economic growth rate as well as political and security stability.

africa500

December 5th, 2006, 10:44 PM

Sudan exports 27,000 Tons of Sugar to Europe

Dec 3, 2006 (KHARTOUM) — The ACP agreed to allocated to Sudan the biggest share of sugar exportation to the European Union during the 2006-2007, the official SUNA reported.

Sudan Ambassador to Belgium and the European Union, Ali Yousif, said that the ministerial meeting of the Less Developed Countries (LDC) Group on Sugar approved an agreement on cooperation between the ACP countries which export sugar to Europe.

He indicated that Sudan share of exporting sugar to Europe during the period from 2006 till 2007 has reached 27,000 tons of raw sugar, which is the biggest share of sugar to be exported to Europe by an LDC of the African, Caribbean and Pacific Group.

Yousif said that the agreement deals with organization of the exportation of sugar to the European Union during the period July, 2006- 2007.

The Minister of Industry, Jalal Yousif Al-Degair, Sunday chaired at the Friendship Hall the ministerial meeting of the LDC Group on Sugar, in the context of the Ministerial Council of the Fifth Summit of the African, Caribbean and Pacific Group (ACP) which being held in Khartoum during Dec. 3-8.

ahmed007

December 6th, 2006, 01:08 AM

dang, sudan is sure doin da thang

ahmed007

December 6th, 2006, 01:09 AM

africa500, can you give me some links and sources to where you get all these news about sudan from.

africa500

December 6th, 2006, 01:36 PM

Matthias Offodile

December 6th, 2006, 09:30 PM

Nigeria: Nigeria's External Reserve Up $45 billion

December 5, 2006
Posted to the web December 5, 2006

Anas A. Galadima

Nigeria's foreign reserve rose to $45billion at the end of November 2006, the Central Bank of Nigeria (CBN) has said. Out of this amount, the CBN owns $33billion, $9billion belongs to the federation, while the federal government owns $3billion.

The apex bank said Saturday in Abuja that it wants an amendment of relevant parts of the constitution to allow for proper saving and management of the nation's revenues.

Speaking at the opening of the quarterly seminar of its operations directorate with the theme; "Effective Management of External reserves," governor of the CBN, Prof. Charles Chukwuma Soludo said the amendment had become necessary to provide a constitutional basis on which the country can save excess revenue and properly manage its reserves to enhance economic growth and development.

He said the constitution provides that all revenues accruing to the government must be paid into the Federation Account and shared by the three tiers of government. This, he said, is not proper because the country needs to save and plan for the future.

"The constitution needs to be amended for us to be able to properly manage our foreign reserves because it (the constitution) says all revenues must be paid into the Federation Account and shared out."

"This is not right and it needs to be changed" he said, pointing out that laws ought to be put in place to allow the country to save excess revenue and properly manage its foreign reserves in the ever changing world of today.

He without amending the constitution, only a political consensus can sustain the current strategy adopted to manage the country's income from oil, adding that "Building a political consensus for this to happen without constitutional amendment is a challenge."

Prof. Soludo explained that the federal government has been under intense pressure from the states that the country's foreign reserves be shared, saying that the funds cannot be shared because their naira equivalent have been issued by the CBN and shared by the three tier of government. The foreign exchange, he said, are being kept as a back-up for the naira equivalent that has been monetised.

Matthias Offodile

December 6th, 2006, 09:33 PM

Tanzania, Ghana to sign agreement on IT based tax system

Business News of Wednesday, 6 December 2006

Accra, Dec. 6, GNA - The Revenue Agencies Governing Board (RAGB) and the Tanzanian Revenue Authority (TRA) would sign an agreement on Wednesday to grant Ghana the rights and utilization of automated tax mechanism software known as the Integrated Tax Administration System (ITAX).

The two institutions are currently negotiating the terms of the agreement which seeks to computerize the operations of the Internal Revenue Service (IRS) to function efficiently and effectively for increased revenue.

The ITAX will subsequently enable the IRS to integrate its activities with the other revenue agencies.

Mr Harry Owusu, the Chairman of the RAGB, said in Accra on Wednesday, that the negotiations and the subsequent signing of the Memorandum of Understanding (MOU) marked a milestone in the efforts to ensure effective mobilization of revenue in the country.

He said the German Technical Cooperation (GTZ) had supported the Board by facilitating collaboration between Ghana and Tanzania to access the software to be used for the computerization programme. He said the Board had worked on a similar programme with the Large Tax Payer Unit for the past two years, which had given some measurable outcome.

He said some automation at the Value Added Tax (VAT) Service and the Customs, Excise and Preventive Service (CEPS) had improved revenue collection from the two revenue agencies but the IRS, which received direct taxes, had not seen any improvement in its work. Mr Owusu said the Board, therefore, wanted to transform the IRS to adopt current practices, the results of which would among other things, optimize service delivery and enable the Service to attend to large clientele better.

The process of automating the IRS would be undertaken on the basis of public-private partnership (PPP).

Dr Anthony Akoto Osei, a Deputy Minister of Finance and Economic Planning, said increased revenue was important to every developing country that was why Ghana had prioritized this objective in the Growth and Poverty-Reduction Strategy II.

He said the Government had managed to increase the percentage of tax of the GDP to 21 per cent from 16 per cent in 2000. Projection for 2007 is pegged at 23 per cent.

Dr Akoto Osei said there was room for improvement in the nation's tax levels to meet commitments such as the provisions in the wage bill; transfers to support the Volta River Authority and the Tema Oil Refinery to ensure that the latter did not accumulate any more debt.

He said the Government was grateful to GTZ for its assistance so far but expressed the hope that they would continue to support the automation process through the improvement of the human resource base as well as giving technical assistance.

Mr Peter Linder, German Ambassador, said his country appreciated Ghana's efforts to reduce her dependency on foreign aid and was, therefore, ready to lend support in that direction given the fact that domestic revenue mobilization was a means to meet that objective. He said the next step in GTZ's programme of cooperation with Ghana was to implement a tax policy unit within the Sector Ministry and that the necessary steps towards this goal would be completed soon. Mr Placidus Luoga, Deputy Commissioner General of Tanzania, expressed the hope that Ghana would reap greater benefits from the automation process because even without the facility, the tax level was beyond 20 per cent of GDP.

Tanzania's current tax yield is less than 15 per cent and has been using the automation system since 2002 with the assistance of the GTZ after conducting a pilot test in 1998.

The automation of Ghana' IRS is expected to simplify procedures; cut costs and time spent by the taxpayer and the tax administration; broaden the tax net and raise revenue.

The Ghana Community Network Services Limited (GCNET) is expected to be the private partner to the project by establishing GCNET 2 at an estimated cost of between 16 dollars and 18 million dollars. Mr Alwin Hoegerle, General Manager, told the GNA that the GCNET was involved in the project because of its track record with the CEPS and could provide a more flexible infrastructure and adapt to the specifications of the implementers.Source:
GNA

Matthias Offodile

December 9th, 2006, 12:25 AM

Angola: Namibia, Angola Form Trade Body

The Namibian (Windhoek)

December 7, 2006
Posted to the web December 7, 2006

Tonderai Katswara

IN an effort to ensure increased and smoother trade between Namibia and its northern neighbour, Angola, the two countries this week set up a Joint Trade Committee.

The committee was formed in line with two agreements on the promotion of trade and investment, signed and ratified by both countries.
Oracle Content & Collaboration

Trade volumes between the two countries are said to be mainly in the informal sector, which is hardly recorded.

During two days of discussions, the Namibian delegation led by the Acting Minister of Trade and Industry, Erkki Nghimtina, held discussions with their Angolan counterparts headed by their Minister of Commerce, Dr Joaquim Icuma Muafumba.

Trade and Industry Permanent Secretary Andrew Ndishishi said one of the provisions of the Trade and Economic Cooperation Agreement was for the establishment of a joint trade committee to facilitate the implementation of the agreement.

Approached for comment, Tarah Shaanika, head of Namibia's biggest private-sector organisation, the Namibia Chamber of Commerce and Industry, welcomed the initiative but said more needed to be done to ensure that Namibian goods become competitive on the Angolan market.

He said for trade volumes to increase, red tape had to be done away with and the stagnation at border posts also had to be tackled.

Shaanika said people felt it was easier to conduct business on an individual basis due to these hindrances.

"We welcome the agreement.

This should see trade - especially in manufacturing - increase between the two countries since it will pave the way for the implementation of the bilateral trade agreements signed in 2004 and ratified in 2005, as not much has happened since the ratification," said Shaanika.

To complement the efforts of the joint venture, both countries' investment and promotion agencies - ANIP of Angola and the Namibia Investment Centre - have also entered into a cooperation agreement.

There will also be a memorandum of understanding between the countries' departments of customs and excise.

Recently visa requirements for citizens of both countries were abolished.

A communiqué released after the meeting said the committee would be composed of the Ministry of Trade and Industry, Angola's Ministry of Commerce and other relevant agencies from both countries.

The committee has a number of objectives which include identifying potential areas of trade and investment cooperation, improving the free flow of goods and services, negotiating sanitary and phytosanitary regulations to ensure compliance with various national and international provisions, identifying products for possible tariff reductions, cooperating in trade capacity building and exchanging information.

The Joint Trade Committee will meet twice a year.

Ndishishi said the committee's first follow-up meeting had been set for February.

Matthias Offodile

December 10th, 2006, 11:53 PM

Ghana: Vodacom Eyes Ghana Telecom

Ghanaian Chronicle (Accra)

December 8, 2006
Posted to the web December 8, 2006

Joseph Cooson

REPORTS REACHING the Business Chronicle indicate that Vodacom of South Africa has expressed interest in investing into Ghana Telecom after the Ministry of Communication advertised internationally for an advisor to commence a privatization process at Ghana Telecom (GT).

This came to light in the wake of the termination of the management contract between the Government of Ghana and Telenor of Norway after accusations that over the period of GoG's relationship with them, the 22 Norwegians carted to their home country millions of dollars per month including $150,000 monthly management fee paid to Telenor.
Oracle Content & Collaboration

Sources at the Ministry of Communications indicate that 12 other communication companies have expressed interest to be part of the privatization of GT.

The CEO of TELKOM, Papi Molotsane said the company and its mobile unit Vodacom was looking at Ghana, where the government may privatise the state-owned operator GT, and at other possibilities on the continent. He declined to say whether a deal would be clinched before the end of the year. He was speaking to Reuters on Tuesday in South Africa.

A Business Day report indicated further that, "Other Vodacom targets include Algeria, Nigeria and Angola as we try to expand in Africa," the company's Chief Operating Officer, Pieter Uys said on Tuesday.

Mr. Uys named the four markets as possible areas of focus for Vodacom as it tries to muscle into new high-growth markets on the continent, after its 50% owner Vodafone relaxed a restrictive shareholder pact earlier this year.

"Algeria is a nice big market, Angola...is always interesting to us. Nigeria, I'm sure you've heard about, is a big market and Ghana is also interesting," Uys told a Vodafone investors day, which was broadcast on the Internet.

Vodacom is jointly owned by Britain's Vodafone and local telecommunications company, Telkom and is the biggest operator in SA, although rival MTN has more subscribers on the African continent as a whole.

Vodafone's CE for Eastern Europe, Africa, Asia Pacific and affiliates, Paul Donovan, said at the same event Vodacom was the British company's vehicle for expansion in Africa, as long as any acquisitions remained within Vodafone's strict financial criteria.

Vodacom Chief Financial Officer Leon Crouse told investors the company had "a lot of room for expansion in terms of funding" but said any potential acquisitions would be examined on a case- by-case basis.

Crouse said possible changes to South African regulation that may force mobile companies to slash the rates they charge other operators - both fixed and mobile - to use their networks would be negative for Vodacom but "not a disaster".

He said a theoretical 20% cut in termination rates would lop some R400m off Vodacom's bottom line, but added he expected SA's communications regulator Icasa to adopt a phased approach to any new rules.

Donovan also said Vodafone and Telkom would sell an equal amount of Vodacom shares to black investors under a planned deal to comply with the affirmative action drive. "If there is any dilution as a result of the sell-down then that is something that will be born equally by Vodafone and Telkom," he said.

He said the timing and nature of the deal had not been finalised and "would only become clear between now and the end of the next financial year".

Vodacom said last month it was in talks about a deal to sell shares to black investors as part of the black economic empowerment programme - which is aimed at redressing the imbalances of apartheid - in a deal worth up to R7.5bn. It has not given details.

Matthias Offodile

December 11th, 2006, 02:04 PM

In short, this is an article on the introduction of various high-speed Internet-related services in Gabon where around 85% of the population already is in possession of a mobile phone!:banana:

Celtel lance Internet mobile, une révolution des télécommunications au Gabon

Libreville, 10 décembre 2006 (GABONEWS) - L'opérateur de téléphonie mobile Celtel Gabon a lancé vendredi dernier à Libreville l'Internet Mobile, un service qui permet à ses abonnés de se connecter à Internet depuis leur téléphone portable ou un ordinateur.

L'Internet Mobile dont le lancement commercial est prévu dans un mois est l'un des services proposés par Celtel Gabon. Il se base sur les technologies GPRS (Cernerai Racket Radio Service) et EDGE (Enhanced Date Rate for GSM Evolution).

La technologie GPRS/EDGE est une nouvelle norme de téléphonie mobile représentant une évolution du réseau GSM existant. Cette dernière permet d'accélérer la transmission des données en mode paquet.

Grâce au GPRS/EDGE, Celtel offrira plusieurs services tels que : L'Internet Mobile ou accès sans fil à Internet, le MMS (Message Photo) qui permet l'envoi de messages avec photos, vidéos, sons et textes à un correspondant possédant un téléphone mobile ou une adresse émail, le Portail Celtel qui représente un mini site offrant des services d'informations et de loisirs à consulter ou à télécharger depuis son mobile.

En utilisant le service Internet Mobile de Celtel l'abonné pourra naviguer sur le WEB, envoyer et recevoir ses emails, faire du chat et pleins d'autres applications Internet...

La vitesse de transmission des données par GMS est de 9,6 kb/s. Grâce au GPRS/EDGE, cette vitesse oscillera entre 30 et 200 kb/s suivant plusieurs paramètres.

« Le GPRS/EDGE offre une multitude de services développés par Celtel pour permettre à ses abonnés de disposer d'un accès simple et rapide à Internet à partir d'un téléphone portable ou d'un ordinateur », a déclaré le Directeur général de Celtel Gabon, Jean Yves Kouassi Goly lors de la cérémonie de lancement de ce nouveau service.

« Nous voulons offrir à nos clients une nouvelle expérience des Télécoms, leur ouvrir l'accès à un nouveau monde de services », a pour sa part renchérit M. Gandé Dagba, Directeur Marketing de Celtel Gabon dont la société renforce son leadership et conforte ainsi son statut de fournisseur de services télécoms de référence au Gabon.

Le lancement de l'Internet mobile a eu lieu dans la salle des banquets de la Cité de la démocratie. Un dîner de gala animé par le célèbre artiste musicien congolais Papa Wemba et le ‘‘patriarche'' de la musique gabonaise, Pierre Claver Akendengué.

Un téléphone Nokia 6020 ainsi qu'une carte PC nécessaire pour la connexion à Internet mobile via un ordinateur ont été remis aux couples présents à la cérémonie. Ces bénéficiaires ont un mois de gratuité de leur communication Internet mobile.

Celtel Gabon créée en 2000 compte plus de 500 000 abonnés. Le 500 000e abonné de l'entreprise a été présenté au public en marge de la cérémonie de lancement de l'Internet mobile. L'opérateur de la téléphonie mobile lui a attribué un chèque de 500 000 FCFA, un crédit de communication de 500 000 FCFA, un autre crédit de la même valeur pour ses parents et amis et un bon d'achat du même montant.

Celtel Gabon couvre actuellement plus de 80% de la population gabonaise établie aussi bien en zone urbaine que dans les localités difficilement accessibles du territoire. Ses investissements pour la modernisation de son réseau se chiffrent à 65 milliards de FCFA pendant la période 2006-2007.

GN/YLG/06

Matthias Offodile

December 11th, 2006, 02:05 PM

Correction to the last posting reagrding Gabon:

In short, this is an article on the introduction of various high-speed Internet-related services VIA MOBILE PHONES in Gabon where around 85% of the population already is in possession of a mobile phone!:banana:

Matthias Offodile

December 11th, 2006, 02:24 PM

IPP: Obasanjo switches on 150mw Omoku power plant in Rivers:)

By CHIDI NNADI
Monday, December 11, 2006

http://www.sunnewsonline.com/images/turbine.gif

150 Megawatts Omoku Gas Turbine Power Plant in Cross River State

History was made in Rivers State on December 5, when President Olusegun Obasanjo officially switched on the Omoku Gas Turbine Power Plant, Switchyard and 132 kV Double Circuit Transmission Line built by the state government.

It has been the desire of the president to increase power generation in the country from the low level of 3,000 megawatts to 15,000mw before he leaves office next year.

Therefore, Obasanjo could not hide his joy as he commissioned the 150mw Omoku plant, saying that Governor Peter Odili has done well for his people and is surely one of those governors who always give him a helping hand.

His words: “ Through the completion of this critically important electricity power generation project, the government of Rivers State, under the leadership of Dr Peter Odili, has recorded a major landmark in our nation’s desire to boost the power sector, which is vital to accelerated and sustained economic growth.”

The President averred that any nation seeking economic viability must have a self-sufficient power sector, pointing out that when in 1999 his administration came into being, the nation’s power sector was comatose despite the significant input he had made in the sector investment-wise, when he was military head of state.

He, therefore, stated that providence has again offered him the opportunity to preside over the resuscitation of the nation’s power sector.
“ I feel a huge sense of gratification that our administration’s commitment to reviving and revamping the power sector is finally yielding dividends. From a total general capacity of less than 1,500 megawatts for the entire country when we came on board in 1999, the country would be generating in excess of 15,000 megawatts before the end of 2007,’’ he said.
Obasanjo disclosed that unprecedented levels of resources had gone into the rehabilitation and expansion of the transmission and distribution network and facilities across the country to boost power supply.

These efforts, he said, have been complemented by the increased generation by oil companies Independent Power Plant (IPP) projects driven by the new policies enunciated by his administration.
He, therefore, saluted Odili and the Rivers government for successfully embarking upon and executing the IPP, which, he said, was initially greeted with much doubt and skepticism.

“I salute the governor’s courage and determination to pursue this vision despite misgivings in many quarters about the capacity of a state government to embark on such a complex and hugely expensive project, along with its other important competing obligations”, he said.
In his welcome speech, Governor Odili said that he was happy his state became the first in the country to deliver on the IPP.

The governor said that the amendment of the Concurrent List in the Constitution in 1999 spurred them into power generation.
He recalled when in October 2002, the state government installed the Trans-Amadi Turbine Plant, which is currently being upgraded together with the Eleme Power Plant, both hoped to generate additional 100mw.

Odili disclosed that the rehabilitation of the above mentioned two plants and the construction of the Omoku Gas Turbine Plant gulped well over N50 billion.
With the switching on of the Omoku plant, he said his state would be generating over 400mw of power, stating that his state’s public power supply would never be the same again.

The Omoku plant is a 6x25mw power plant with its contract awarded in two phases. The first phase of four units was awarded in November 2000, while the second phase of two units was awarded in 2004.
Although the phase one of the project was awarded in 2000, the civil works comprising the dredging of sand from the Urashi River, sand filling, compacting and main civil works and foundation lasted for over 18 months.

Every structure in the site is said to be rested on piles (952) driven about 16 metres deep into the ground.
The Omoku power plant is also said to be the largest ever built by any state government in the country and is designed to serve as a point load centre with state-of-the-art equipment modeled after similar plants in Europe.

An important feature of the Omoku plant is that it is a three-package station having installation of 6x25mw power plant, construction of switchyard; and construction of control room.
The choice to site the plant at Omoku in the Ogba\ Egbeda \ Ndoni Local Government Area was said to have been informed by the fact that Omoku sits on massive gas reserve.
The plant shares a common fence with Nigeria Agip Oil Company (NAOC) Obio Obio Gas power plant and is connected from NAOC.

The siting of the power plant at Omoku satisfies a logical and cost effective economic principle of nearness to source of raw materials even as it is cheaper to construct a shorter pipeline than to have it run through swampy and marshy land.

Matthias Offodile

December 12th, 2006, 12:15 PM

December 12th, 2006
Motorola wins $175m GSM expansion contract with M-Tel in Nigeria

Deal allows expansion subscriber base Motorola Inc. has signed a $175 million GSM network expansion contract with M-tel, one of the leading mobile communications operators in Nigeria.

This expansion will enable M-Tel to extend its coverage across Nigeria.

"M-tel is currently regrouping its business to prepare to lead the business drive for greater growth and penetration in the Nigerian market.

We want to increase the availability of our network and to expand our network coverage as quickly as possible to support greater subscriber growth. Motorola implemented M-tel’s original radio network in 2003 and because of the quality of their equipment and their credibility in maintaining that original radio network, we’ve been very happy to turn to them again to expand our network further," said John Weir, M-tel CEO.

The scope of the expansion project covers installation, commissioning and upgrading of sites in Benin, Ikorodu, and Yola. With this full turnkey project, Motorola is offering M-tel a solution of network integration services to enable rapid and seamless deployment of all network elements.

Raphael Udeogu, Motorola Nigeria country manager, said: "We’re particularly pleased to have been awarded this contract through a competitive tender process. This contract is a testament of the work Motorola is doing in Nigeria and it demonstrates M-tel’s support of Motorola’s corporate governance policy.

"Motorola foresees substantial growth potential within the Nigerian market. In 1999 there were 50,000 fixed customers and today there are more than 35 million mobile customers and still there are many regions that are without coverage.

The bulk of the network traffic in Nigeria is voice-centric and the expansion will provide much needed data services such as e-mail and Internet.

The agreement with M-tel reinforces Motorola’s continuing commitment not only to Nigeria but to the whole of sub-Saharan Africa. Motorola is strongly positioned to provide quality wireless networking solutions in Africa with local presence, expertise and capability."

The expansion project is in line with the Motorola Reach GSM portfolio’s aim to enable telecom operators to connect the next billion mobile subscribers by 2010 - through the rapid and cost-effective deployment of mobile services.

Motorola Reach underlines the company’s commitment to address the diverse needs and desires of service providers, enterprises and consumers in emerging markets and around the world.

Motorola is driving forward with its vision to connect the unconnected and expects the implementation of the expansion to be completed by the end of first half of 2007.

A portion of revenue on this contract was recognized by Motorola in the second and third quarters of 2006. A portion of purchase price will be financed by Motorola.

December 12th, 2006, 01:09 PM

^^ thats great...any idea of the teledensity in nigeria?

Matthias Offodile

December 12th, 2006, 02:12 PM

Kboy, Nigeria´s teledensity is around 25 which is still awfully low, nevertheless it is a big jump from where we once came from! :)

boris89

December 12th, 2006, 08:28 PM

Monrovia - Arcelor Mittal, the biggest steel group in the world, said on Monday it had agreed to revise an accord giving it access to major resources of iron ore in Liberia, in particular by increasing its investment.
The new government in Monrovia had sought to renegotiate improved terms for Liberia and Arcelor Mittal said the new deal would involve investment exceeding $1bn, from about $900mn planned previously.

The first version of the agreement, a 25-year concession which gave the steel group access to one billion cubic metres of iron ore, had been signed by Mittal Steel in August 2005.

This was before the group, headed by Lakshmi Mittal, acquired the European steel giant Arcelor.

Under those terms, Mittal Steel was to invest about $900mn.

But the new Liberian government headed by Ellen Johnson Sirleaf was elected five months after the agreement was reached, and was committed to reviewing major contracts concluded by the previous provisional government.

The West African leader held that the terms went against the interests of Liberia, which had been devastated by civil war from 1989 to 2003.

A non-governmental organisation called Global Witness had also condemned the contract as being strongly unbalanced against Liberia's interests, saying it almost amounted to the creation of a state within the state.

Global Witness said the deal in its original form would have impacted on the West African country's control of major national assets such as the railways and its key port, while it also had the potential to limit Liberia's capacity to regulate human rights, environment and taxation issues.

Arcelor Mittal said the new agreement would involve investment exceeding $1bn and should generate 3 500 jobs directly and 15 000-20, 000 jobs indirectly in Liberia once mining facilities were operating at full capacity.

Lakshmi Mittal said that the group would now do all it could to accelerate resumption of work at the mine.

A group spokesman said: "The prices for minerals will now be based on international standards and practices. There was disagreement (with Liberian authorities) in particular on the amount of royalties" owed.

Mittal could act unfairly by selling ore to itself at prices far lower than what could be achieved on the open market.

The new agreement also stipulates that rail lines and port facilities needed to ship the iron ore abroad would remain property of the Liberian government.

Arcelor Mittal intended to have direct access to 64.0 percent of the ore it needs to make steel by 2010 and the deal would lessen its dependence on major mineral producers such as BHP Billiton, Rio Tinto and CVRD.

Together, they control around 70 percent of the global market for minerals. Mittal has not only received criticism from NGOs. Business leaders and government officials in South Africa have been critical of the firm’s use of import price parity, which many, including Harmony Gold and DRDGOLD, have argued was uncompetitive and was artificially inflating prices of flat steel in the Southern African nation.-AFP

Matthias Offodile

December 13th, 2006, 10:51 PM

Mozambique: Economic Growth This Year of Almost Eight Per Cent

Agencia de Informacao de Mocambique (Maputo)

December 13, 2006
Posted to the web December 13, 2006

Maputo

Although the figures for the final quarter are not yet available, the Mozambican economy is expected to grow by 7.9 per cent this year, the Minister of Planning and Development, Aiuba Cuereneia, told the country's parliament, the Assembly of the Republic, on Wednesday.

Commodity exports between January and September reached 1.746 billion US dollars, said Cuereneia, which was 39 per cent greater than export earnings for the same period in 2005.

Three products - aluminium ingots, natural gas and electricity - account for 70 per cent of the country's exports.

The ingots come from Mozambique's largest factory, the MOZAL aluminium smelter on the outskirts of Maputo; the electricity from the Cahora Bassa dam on the Zambezi is sold to South Africa and Zimbabwe; while natural gas is produced by the South African petro-chemical giant Sasol in Inhambane province, and sent by pipeline to its plants in the South african town of Secunda.

Most of the other 30 per cent of export earnings come from Tobacco, prawns. sugar, cotton and cashew nuts.

Cuereneia put the inflation rate between January and November at 7.1 per cent. Thus to meet this year's target of an inflation rate no higher than 7.5 per cent, price rises this month must be no more than 0.4 per cent - which will be difficult to achieve, given the trend among Mozambican shops and businesses to push their prices during the festive season.

As for the Mozambican currency, the metical, in the first 11 months of the year it had depreciated by 5.8 per cent against the US dollar - but had gained in value, by 7.3 per cent, against the South African rand.

Turning to education, Cuereneia said that 526 new schools had been built this year alone making it possible to enrol 304,000 new pupils.:applause:

258 of these schools were for first level primary education (grades one to five), 194 were second level primary schools (grades six and seven), 60 were for the first cycle of secondary education (grades eight to ten) and 14 for the second, pre- university cycle (grades 11 and 12). 9,015 new teachers were recruited.

As for the battle against AIDS, Cuereneia said that, by the end of November, 38,000 patients were receiving the life- prolonging anti-retroviral drugs. But there are now thought to be about 1.6 million HIV-positive Mozambicans, of whom around 250,000 will have reached the stage of the disease at which they should be taking anti-retrovirals.

Mozambique's achievements, Cuereneia told the deputies, were having a direct impact on the well-being of the population, and providing "levels of economic growth that are a reference point for the African continent".

SE9

December 13th, 2006, 11:49 PM

'Most Respected Company' awards could go Continental
http://allafrica.com/stories/200612130737.html

East Africa’s Most Respected Companies awards could go continental if recommendations made by key speakers at this year’s event are adopted. Nation Media Group chief executive Linus Gitahi and Trade Minister Mukhisa Kituyi said the annual event, which has been recognising excellence in business practices, has come of age and can now expand beyond the three borders of Kenya, Uganda and Tanzania to identify the Most Respected Company in Africa.

Now in its seventh edition since inception in 2002, the annual event has become a hotly contested one with winners tending to hold on their positions year after year. While casual observers may ask why the same companies keep winning, Mr Gitahi said, “Winning the respect of your peers is not something you want to let go and this pattern is unlikely to change for some time.” Kenya Airways chief executive officer Titus Naikuni knows this.

After being crowned for the second year running as the company his compatriots across the region admire most, he repeated what he said last year when the airline dislodged East African Breweries from the top position, “We will do it again next year.”

Apart from being East Africa’s most respected, KQ is also Kenya’s frontrunner in the survey’s country awards. Before the carrier soared to the top, it had monopolised to the leading position in the services sector, now the domain of supermarket chain Nakumatt. Nakumatt operations director Thiagarajan Ramamurthy and chairman Haku Shah hugged openly on being presented with the winner’s cup.

The chain, riding high, is set to go regional. It has broken the ground for its first branch in Kampala while the groundbreaking for the second shop is to be done in January. The supermarket says that from Uganda, it will venture further into Kigali in 2008, and in 2009, issue an initial public offer at the Nairobi Stock Exchange. The dominance, of foreign companies according to Mr Gitahi, gives vital lessons for others to emulate.

Apart from Kenya Airways and EABL, other firms include Homegrown, which bagged the agriculture category’s number one position. Its three top executives, group chairman Dicky Evans, managing director Richard Fox and director Rod Evans maintain that they are humbled by the continued recognition given that Homegrown is basically a 100 per cent export firm.

“We do not sell locally; therefore we do not promote ourselves locally,” said Mr Evans. Mobile phone provider MTN also repeated its performance as the Most Respected Company in Uganda. The firm also retained the second position in the telecommunications and ICT sector after Kenya’s Safaricom.

Celtel Tanzania came third, as the three repeated a line up they have created for three years in a row. Other Ugandan companies which scooped honours are Mukwano Group and Stanbic, which emerged second runners up in the manufacturing and finance segments respectively. In the finance segment, the story remains the same, with Standard Bank, Barclays and Stanbic running the show since 2004.

Mukwano, a leading investor in sugar, oil and transport, was making its debut in what has become the region’s yardstick in business leadership, and was the only non brewer in the manufacturing sector, the other winners being EABL and Tanzania Breweries, also is the Most Respected Company in Tanzania.

The other firm making a maiden appearance in the top rankings this year was Tanzania’s Precision Air, which took third place in the services sector. Some 310 chief executive officers from across the region participated in this year’s survey compared with 290 and 260 in the past two years, attesting to the growing importance of the event. Director of the event Charles Muchene, who is also PwC country leader, said the 310 company heads who responded, were a fair representation of the 450 approached.

The questions were administered by research consultants Steadman Group through face-to-face interviews. In the various business sectors surveyed this year, integrated horticultural business Homegrown led the agricultural sector for the third consecutive year, while Standard Chartered Bank took the honours in the financial services sector for the second year running. In the hotels and tourism sector, Serena Hotels, which recently opened the region’s biggest hotel in Kampala, emerged top.

The development was hailed as timely considering that Uganda is set to host the Commonwealth Heads of Government Meeting next year, amid growing concerns that the country faces a shortage of facilities to accommodate a meeting of such magnitude.

“The companies attracting the strongest respect are those that have focused their expansion strategy on new markets or products and services, strong leadership and solid financial performance,” said Mr Muchene. He added that East Africa’s business community has continued to show great interest in the Most Respected Companies survey, contributing to the emergence of the world-class business practices in the region.

Evenas calls intensify to go continental, there are suggestions that firms that demonstrate a strong commitment promoting a regional presence be given a category of their own. Besides voting for the companies they respected most, CEOs involved in this year’s survey were asked whether they considered their businesses to be competitive in a global economy, and in what areas they saw this competitiveness, or lack of it.

Those companies who felt that they could not compete successfully in the global marketplace identified three major impediments — lack of an appropriate business strategy; unfavourable laws and regulations; and limited access to capital. East Africa’s Most Respected Companies Survey mirrors the Annual Global CEO Survey, carried out jointly by PwC and the Financial Times, one of the world’s most influential business newspapers.

The survey was fashioned after the annual Global CEOs survey, carried out jointly by PricewaterhouseCoopers and the Financial Times, one the world’s most influential business newspapers.

The global survey was initiated in 1997, and the regional one in 2000. Mr Muchene added that the regional survey was started to counter the negative publicity prevailing at the time, and assumed a regional focus in reflection of the importance of the East African Community.

“With companies and governments joining up to form regional blocs, it was deemed necessary to make the awards regional to reflect the importance of regional co-operation,” he said. It is important, Mr Muchene said, to note that the winners are the choice of business leaders who nominate from among their peers, the most respected companies.

“We cannot influence their nominations and their opinions are personal, therefore they are at liberty to nominate whichever company they feel they most admire, and for whatever reason they feel warrants a mention. “There is no panel of judges involved in the nomination.

Any business in East Africa is, therefore, a potential winner, with the exception of three businesses — Nation Media Group, Steadman Group and PricewaterhouseCooprs — who have all disqualified themselves because of their association with the survey,” said Mr Muchene.

The survey has been organised in such a away that the results are not skewed in favour of the country with the largest number of participants. To get equal input from each of the three countries, Steadman shares out the votes so that a nomination cast by participants in a country with a large number of participants carries less weight than one cast in a country with a smaller number of businesses.

“This way, when you add up all the weighted votes cast in any particular country, they will all add up to the same number,” said Mr Muchene. This means that if there are twice as many participants in Kenya as there are in Uganda, a vote cast by a participant from Uganda will carry twice as much weight as a vote cast by a participant from Kenya.

While many other factors influence why a business is respected, strong and consistent financial performance has come across as an attribute that most survey participants consider. The survey is credited for raising awareness about the activities of winning companies through the publicity generated and also helps the business community identify role models.

“The survey has provided an opportunity for East African businesses to make comparisons among themselves based on fundamental business success parameters that are determined by the captains of industry,” said Mr Gitahi. He added that since businesses now know that they are being watched, they are consequently striving to ensure that they are perceived positively in the marketplace.

You are to blame

December 14th, 2006, 05:32 AM

Mozambique: Economic Growth This Year of Almost Eight Per Cent

Agencia de Informacao de Mocambique (Maputo)

December 13, 2006
Posted to the web December 13, 2006

Maputo

Although the figures for the final quarter are not yet available, the Mozambican economy is expected to grow by 7.9 per cent this year, the Minister of Planning and Development, Aiuba Cuereneia, told the country's parliament, the Assembly of the Republic, on Wednesday.

Commodity exports between January and September reached 1.746 billion US dollars, said Cuereneia, which was 39 per cent greater than export earnings for the same period in 2005.

Three products - aluminium ingots, natural gas and electricity - account for 70 per cent of the country's exports.

The ingots come from Mozambique's largest factory, the MOZAL aluminium smelter on the outskirts of Maputo; the electricity from the Cahora Bassa dam on the Zambezi is sold to South Africa and Zimbabwe; while natural gas is produced by the South African petro-chemical giant Sasol in Inhambane province, and sent by pipeline to its plants in the South african town of Secunda.

Most of the other 30 per cent of export earnings come from Tobacco, prawns. sugar, cotton and cashew nuts.

Cuereneia put the inflation rate between January and November at 7.1 per cent. Thus to meet this year's target of an inflation rate no higher than 7.5 per cent, price rises this month must be no more than 0.4 per cent - which will be difficult to achieve, given the trend among Mozambican shops and businesses to push their prices during the festive season.

As for the Mozambican currency, the metical, in the first 11 months of the year it had depreciated by 5.8 per cent against the US dollar - but had gained in value, by 7.3 per cent, against the South African rand.

Turning to education, Cuereneia said that 526 new schools had been built making it possible to enrol 304,000 new pupils.

258 of these schools were for first level primary education (grades one to five), 194 were second level primary schools (grades six and seven), 60 were for the first cycle of secondary education (grades eight to ten) and 14 for the second, pre- university cycle (grades 11 and 12). 9,015 new teachers were recruited.

As for the battle against AIDS, Cuereneia said that, by the end of November, 38,000 patients were receiving the life- prolonging anti-retroviral drugs. But there are now thought to be about 1.6 million HIV-positive Mozambicans, of whom around 250,000 will have reached the stage of the disease at which they should be taking anti-retrovirals.

Mozambique's achievements, Cuereneia told the deputies, were having a direct impact on the well-being of the population, and providing "levels of economic growth that are a reference point for the African continent".

http://allafrica.com/stories/200612130535.html

Matthias Offodile

December 14th, 2006, 07:29 PM

Le président gabonais pose la première pierre des travaux
d'exploitation du manganèse assurés par une société chinoise:)

GABON - 14 décembre 2006 - XINHUA
Le président gabonais Omar Bongo Omdimba a posé récemment à Ndjolé (225 km au sud-est de Libreville) la première pierre des travaux d'exploitation du gisement de manganèse des Monts Bembélé assurés par la Compagnie industrielle et commerciale des mines de Huazhou (CICMH, une société chinoise).

A la cérémonie de l'ouverture des travaux, le chef d'Etat gabonais est entouré du vice-président gabonais Didjob Divungui Di Ndinge, du Premier ministre Jean Eyéghé Ndong et des autres membres du gouvernement. L'ambassadeur de Chine au Gabon Xue Jinwei et le président-directeur général de la CICMH, Lin Ping sont présents à cette cérémonie.

A cette occasion, le ministre gabonais des mines Richard- Auguste Onouviet a indiqué dans son allocution que l'évenement que les deux parties gobono-chinoises célébrent aujourd'hui témoigne le tournant que va prendre l'industrie minière du Gabon dans l'économie nationale.

"Grace à vous, Monsieur le président de la République, le Gabon a un nouveau partenaire au développement avec qui il faut compter pour diversification de notre économie et avec qui l'on peut entrevoir un avenir certain en terme de contribution significative du secteur minier au produit intérieur brut de notre pays ", a dit le ministre des mines.

De son côté, l'ambassadeur de Chine au Gabon Xue Jinwei a dit dans son allocution que cette cérémonie est non seulement une réussite de la coopération sino-gabonaise, mais aussi un témoignage de la mise en oeuvre de l'esprit du Forum sur la coopération sino-africaine.

"Je suis convincu que les travaux d'exploitation de manganèse apporteront sans aucun doute une contribution à la croissance économique du Gabon et ainsi à la politique plein-emploi pour la population, notamment pour les jeunes", a indiqué l'ambassadeur de Chine.

Pour sa part, Lin Ping, le patron de la CICMH, a exprimé sa volonté de déployer tous les efforts pour la réalisation de l'exploitation du manganèse des Monts Bembélé. En même temps, il a annoncé que sa compagnie offre un don équivalent à dix millions de FCFA pour le développement de l'éducation à la ville de Ndjolé.

La mine de manganèse des Monts Bembélé est située à environ 36 km de la ville de Ndjolé, non loin du chemin de fer Transgabonais. La réserve de mine est estimée à plus de trente millions de tonnes. La teneur moyenne du manganése est de 40%.

L'invertissement de CICMH pour ce projet sera de 35 millions de dollars, soit 17 milliards de FCFA. Dès la deuxième année d'expoitation, la CICMH produira un million de tonne de manganèse par an. Sur le plan social, la CICMH emploiera un peu plus de 1300 gabonais uniquement sur le site minier.

Matthias Offodile

December 14th, 2006, 10:39 PM

Total Gabon Signs PSC for Diaba License Offshore Gabon

Wednesday, December 13, 2006

Through 52%-owned subsidiary Total Gabon, Total on Wednesday signed an exploration and production sharing contract for the offshore Diaba license in Gabon. Covering an area of 19,075 square kilometers, the license is located around 50 kilometers offshore southern Gabon in water depths ranging from 100 to 2,500 meters.
The license partners are Total Gabon with an 55% interest and the Gabonese Republic with a direct interest of 45%. The exploration program will be divided into three phases.
The first phase, lasting three-and-a-half-years, consists of a commitment to shoot 2,500 kilometers of 2D seismic. The second phase, also lasting three-and-a-half years, comprises a commitment to shoot 1 700 square kilometers of 3D seismic, while the third phase, lasting three years, includes an obligation well.
This latest acquisition demonstrates Total's strong confidence in continued operations in Gabon, in particular through the acquisition of new and very promising deep offshore acreage to explore new plays in previously untapped horizons.
Through subsidiary Total Gabon, the Group is the country's top-ranked oil operator, with total operated crude oil production of around 40% of Gabon's total output.

Total in Gabon

Present in Gabon since 1931, Total has helped to discover more than 80% of the country's oil and gas reserves and has developed more than 50 onshore and offshore fields over the last 50 years. In 2000, Total Gabon launched a wide-ranging program to appraise and redevelop existing fields to enhance recovery. Total is also the main shareholder in the Sogara refinery in Port-Gentil. The company is also very active in social and environmental projects in that country.

Matthias Offodile

December 14th, 2006, 10:48 PM

Kosmos Energy Signs Agreement for Second Block Offshore Ghana; Plans to Drill Exploratory Well in 2007

DALLAS, December 13 /CNW/ - Kosmos Energy announces today that it has added a second block offshore the Republic of Ghana to the company's West African portfolio and has secured partners on both blocks. Kosmos and its partners have a rig under contract and plan to drill an exploratory well in
2007.
Kosmos' Ghanaian affiliate, Kosmos Energy Ghana HC, has signed a
petroleum agreement covering the Deepwater Tano Block offshore Ghana in the Gulf of Guinea's Tano Basin. Kosmos and its partners will reprocess about
1,100 square kilometers of 3D seismic data and evaluate other technical
information as part of the initial phase of the six-and-a-half year
exploration agreement.
Kosmos and its partners will utilize the "Belford Dolphin" - a dynamically positioned generation-5 deepwater drillship under long-term contract to Anadarko - to drill a well on the West Cape Three Points Block,
also in the Tano Basin. The partners expect to spud the well during the second quarter of 2007. The block's seven-year exploration agreement calls for an exploratory well after a 3D seismic survey, which was acquired in 2005.
"We have expanded our asset base in West Africa by acquiring an interest
in a second block offshore Ghana, which reaffirms our confidence in the upside potential of the Tano Basin," said James C. Musselman, Kosmos Chairman and Chief Executive Officer. "We are excited about drilling our first well offshore Africa since Kosmos was established in 2003. It is extremely fitting that it is located in this highly prospective region of Ghana.
"We welcome Tullow and Anadarko, our new partners, who are collaborating
with us in our Ghanaian venture. They are strong E&P companies who bring vast experience in and a commitment to Africa and are valuable members of our team," Musselman said. "We are pleased to work with the Ghana National
Petroleum Corporation, an organization with a talented technical staff. We are
dedicated to building a solid, long-term business relationship with the
Ghanaian government as we help Ghana develop its natural resources."

Farmout Details

Kosmos farmed out half of its initial 36% interest in the Deepwater Tano
Block to Anadarko WCTP Company, an affiliate of Anadarko Petroleum Corporation(NYSE:APC), which now holds an 18% interest. Other partners in the block include Tullow Ghana Limited, an affiliate of Tullow Oil plc, 49.95% interest and operator, and Sabre Oil and Gas Limited, 4.05% interest. With a 10% participating interest in the project, the Ghana National Petroleum
Corporation (GNPC) will be carried through the exploration and development
phases.

Kosmos also farmed out portions of its 86.5% interest in Ghana's West
Cape Three Points Block to Anadarko and Tullow. Kosmos remains operator and now holds a 30.875% interest in the block. Anadarko has a 30.875% interest, Tullow has a 22.896% interest and Sabre a 1.854% interest in the block. The E.O. Group, a Ghanaian oil and gas company, holds a 3.5% interest in the block. With a 10% participating interest in the project, GNPC will be carried through the exploration and development phases.

Ghanaian Blocks' Statistics

The West Cape Three Points Block comprises 1,761 square kilometers
(435,200 acres) in water depths ranging from 50 meters to 1,800 meters
(approximately 165 feet to 5,900 feet). The block is about 12 kilometers (7.4
miles) from the Ghanaian coastline and 95 kilometers (59 miles) southwest of
the port city of Takoradi.
The Deepwater Tano Block is located west of and adjacent to the West Cape
Three Points Block. The Deepwater Tano Block comprises 1,106 square kilometers (273,298 acres) in water depths ranging from 200 meters to 2,060 meters (approximately 656 feet to 6,758 feet).

About Kosmos Energy

Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos is led by a seasoned
management and technical team with extensive international and West Africa
experience, and a proven record of finding and developing significant oil
reserves. With the financial backing of international private equity investors
Warburg Pincus and Blackstone Capital Partners, the company possesses
significant financial and operational capability to generate and participate
in multiple high-impact upstream projects. For additional information, visit
www.kosmosenergy.com.

boris89

December 15th, 2006, 08:59 PM

Conakry - The presidents of Liberia and Sierra Leone have arrived in Guinea for a 24-hour trip aimed at boosting sub-regional economic and security ties.
Flying in separately, Liberia's Ellen Johnson Sirleaf and Sierra Leone's Ahmad Tejan Kabbah were met at Conakry airport by State Minister for Presidential Affairs Fode Bangoura. They were due to meet their counterpart President Lansana Conte, according to a presidential official.

Sirleaf said the visit was aimed at "strengthening multisectoral co-operation" among the three neighbouring countries.

"We are going to discuss issues of trans-border security and the movement of small arms and armed gangs in the Mano River Union region," she said on arrival in Conakry.

The Mano River Union is a grouping of the three countries through which the Mano River runs.

Liberian and Guinean authorities last month held talks in Liberia's northern Voinjama town to seek ways to boost security along their common border and curb illegal migration.

The two leaders were expected to end their visit on Friday.

boris89

December 15th, 2006, 09:02 PM

The Latest report released in Monrovia, has suggested that the mineral concession agreement between the Liberian government and the world's largest steel company Mittal Steel for the launching of the company's operation in the country, will be signed on next Monday.

The Land Mines and Energy Minister Mr. Eugene Shannon, in an interview with Star Radio Wednesday disclosed that the two sides would sign the agreement next Monday.

Report reaching this paper says that the agreement will be signed between the two sides on next Monday, few days after representatives of the two sides concluded negotiation into the agreement earlier this week, when they met in the United States as part of the efforts to trash out some of the contentious issues in the agreement were discussed.

The agreement between the company and the government was previously signed during the transitional government headed by Mr. Charles Gyude Bryant, but upon it incumbency however, the president Sirleaf's led government called for a review of the contract to reflect on what it called, "The National Interest."

The government contended that the country should however, manage and control the seaports and railways on grounds that they are state owned properties that should be under the control of the government, something that the company accepted before the agreement was concluded.

The Mittal steel agreement, which is a 1 billion United States Dollars' deal, would provide employment to hundreds of Liberians and will assist in the reconstruction and development processes of the nation.

The Inquirer (Monrovia)
NEWS
December 15, 2006
Posted to the web December 15, 2006

africa500

December 17th, 2006, 02:37 PM

Sudan open to trade with Brazil - official

Dec 15, 2006 (RIO DE JANEIRO) — A Sudanese official said on Friday that his country is open to trade with Brazil — a response to the South American country’s support in the United Nations, Brazilian media reported.

Doors are open to Brazil, Abdel Salam, director of the Cooperation Department in Sudan’s finance ministry, said in an interview with a Brazilian newspaper.

The comment came after Brazil voted in favor of the Sudan’s government in the United Nations where European countries demanded an investigation into the conflict in the Darfur region of Sudan.

Sudan has resisted the deployment of UN peacekeepers in the volatile western region.

Brazil supported Africa at international organizations, said Salam, adding that the support was a manifestation of cooperation among the countries from the South.

He said his government was in negotiations with Brazil’s state-owned oil and gas giant Petrobras, and planed to reach an agreement with the company soon.

Sudan produces 520,000 barrels of oil a day and about 12 percent of the country’s GDP comes from oil and gas.

The production would reach up to 1 million barrels a day over the next few years, Salam said.

africa500

December 17th, 2006, 02:38 PM

Turkish firm to invest $60 mln in Sudan oil field

Dec 16, 2006 (KHARTOUM) — The Turkish Delta Petroleum Group announced that it group will begin investment in the oil field in Sudan in next February at the value of 60 million dollars.

At a press conference Saturday in Khartoum at Sharjah Hall, Chairman of the Board of Directors, Mehmet Habbab, said that Delta Group has finalized procedure and arrangements to carry out its work in the oil field in Sudan.

He said that Delta Group plans to begin establishment of deposits and workshops in Khartoum, Port-Sudan, Gedarif, Babanousa and Al-Obeid areas at the cost of 10 million dollars in the first stage.

Habbab said that Sudan is anticipated to achieve remarkable progress at the petroleum field in the coming period, depending on its experiences and skills in this domain.

He indicated that Delta Group obtains around 200,000 petroleum tanker vehicles, adding that the loading capacity of each tanker vehicle is 70 tons of petroleum materials and commodities.

He said that Delta Group will depend on Sudanese manpower after providing them with training. He added that Delta Petroleum Company is a multinational and have investments in several countries.

The Delta Petroleum Group is implementing investment projects in Turkey at the value of 500 million dollars, in Georgia at the value of 70 million dollars, besides Sudan at the value of 60 million dollars.

Matthias Offodile

December 20th, 2006, 12:30 PM

Despite high oil prices (Ghana is an oil importer), it managed to build up a relatively considerable amount of foreign exchange.

International Reserves Crosses $2 Billion Mark

Business News of Tuesday, 19 December 2006

Ghana´s international reserves crossed the $2 billion mark for the first time in the economic history of the country at the end of October 2006.

â€œThese reserves are enough to cover 3.5 months of imports of goods and services,â€ the Governor of the Bank of Ghana (BoG), Dr Paul Acquah, has said.

Dr Acquah, who was speaking at a press conference of the Monetary Policy Committee (MPC) of the BoG, said the external payments position was robust, with a reduced current account deficit in 2006 and a further build-up of gross international reserves.

He said private inward transfers attributable to non-governmental organisations, embassies, service providers, individuals, among others, and channelled through the banks and finance companies from January to October 2006 amounted to $4.79 billion.

He said that represented a 25.9 per cent increase over what was recorded for the corresponding period of 2005. Of the total transfers in the period, $1.22 billion (about 25 per cent) accrued to individuals, compared with 30.6 per cent over the same period in 2005.

He said the foreign exchange market also saw an increased volume of activity during the year and reduced volatility in the market.

He disclosed that the purchases and sale of foreign exchange by banks and forex bureaux in the 11-month period to November 2006 amounted to $6.01 billion, an increase of 13.9 per cent over the same period in 2005, and stated that the volume of dollar transactions dominated the market, accounting for some 80.4 per cent in the month of November, with the pound sterling at 7.3 per cent and the euro at 12.3 per cent.

Measuring the cedi against international currencies, the governor said the cedi remained relatively stable against the US dollar during the year, explaining that cumulatively the cedi depreciated against the dollar by 1.1 per cent.

He said the cedi depreciated much more against the euro by 12.2 per cent and the pound sterling by 14.2 per cent for the period January to November 2006.

â€œThis compares with a depreciation of 0.6 per cent against the US dollar and an appreciation of 14.3 per cent and 10.5 per cent respectively against the euro and the pound sterling in the same period a year earlier,â€ he said.

He said in trade weighted terms, the cedi appreciated cumulatively by 1.1 per cent for the period January to October 2006 and by 5.2 per cent in foreign exchange weighted terms.

On the issue of imports during the period under review, Dr Acquah said strong domestic demand reflected in a strong import growth and that amounted to $5,414.80 million in total imports for the period January to October 2006.

That, he explained, represented an increase of 27.2 per cent, compared with a total import bill of $4,255.76 million for the same period in 2005.

Non-oil imports amounted to $4,202.86 million, an increase of 23.0 per cent over the $3,416.30 million recorded for the same period in 2005.

Consumption goods imported, he said, were estimated at $966.3 million, an increase of 17 per cent over the previous yearâ€™s level of $826.1 million.

Capital goods imports, on the other hand, amounted to $873.5 million, representing a 22 per cent increase over the amount for the same period in 2005.

Intermediate goods imports were estimated to be $3,213.0 million, compared with $2,404.0 million in 2005. Of these amounts, fuel and lubricants accounted for $1,164.47 million and $839.48 in 2006 and 2005 respectively, with the increase reflecting mostly in the rise in oil prices on the international market.

These developments, Dr Acquah explained, resulted in a trade deficit of $1,871.56 million for the period up to October 2006 but stated that the current account turned in a reduced deficit of $45.6 million, compared with a deficit of $581.7 million recorded in 2005.

He said the overall balance of payments recorded a deficit of $111.04 million, compared with a deficit of $195.29 million recorded for the corresponding period in 2005.

He said provisional estimates indicated an overall surplus of $406.73 million for the year, bolstered by the seasonal inflows of cocoa proceeds.

Source:
Graphic

Matthias Offodile

December 20th, 2006, 12:34 PM

Nigeria invests heavily in LNG projects

December 13th, 2006

Nigeria’s Minister of State for Petroleum Edmund Daukoru has said that the nation is investing heavily in the liquefied natural gas (LNG) projects. He made this know at the weekend.

Daukoru was quoted as saying that the West Africa gas pipeline project would come on board in early 2007. "The success story of the Nigeria LNG limited (NLNG) in Bonny had resulted in the establishment of the two LNG projects," he said, adding that the two projects were expected to be operational in 2009.

There had been significant gas export since 1999 with NLNG earning over 5 billion U.S. dollars for the country.

Nigeria’s gas reserves are currently put at 210 trillion cubic feet and the first gas export was in the form of liquefied natural gas (LPG) from the Escravos gas project in 1997. Daukoru, who is also the OPEC president, said that Nigeria and other OPEC member countries would continue to invest in gas projects since gas has become a global commodity.

You are to blame

December 21st, 2006, 05:13 AM

Nigeria expects 2006 growth rate of 7.6%

ABUJA (Reuters) -- Nigeria's economy is seen growing at 7.6 percent in 2006, the finance minister said, below an initial target of 10 percent as it has been hit by attacks by militants on the country's oil industry.

Nenadi Usman said the external reserves of Africa's top oil producer reached to a record $42 billion in November, thanks to high oil prices in the international market.

"In 2006 we expect to see a GDP growth rate of at least 7.6 percent," Usman said at a press conference in the capital Abuja, without specifying the contribution of the oil sector which accounted for a quarter of Nigeria's gross domestic product last year.

"Our external reserve which was $3 billion in 1999 increased to about $42 billion as of the end of November 2006. These positive changes are largely due to prudent management of the economy combined with recently favorable oil prices," the finance minister said.

Nigeria, the world's eighth biggest oil exporter, had targeted a 10 percent growth for this year, after 6.2 percent growth in 2005, but a series of crippling attacks on oil installations since February have cut output by a fifth.

The finance minister said the non-oil sector, which grew by 8.2 percent in 2005, was the driving force behind Nigeria's expanding economy.

"Overall, the government has been able to maintain fiscal prudence, enhance revenue earnings, reduce both domestic and external debts, reduce inflation, stabilize exchange and interest rates with macroeconomic stability," Usman said.

Nigeria is conducting a home-grown programme of free-market economic reforms, which earned it a landmark deal with the Paris Club of sovereign lenders in 2005, in which it repaid $12 billion in debts in return for a write-off of a further $18 billion. The deal was concluded earlier this year.

Nigeria, which is in the process of liquidating the bulk of its $2.4 billion debt to the London Club, earned BB- credit rating from Standard and Poor's and Fitch Ratings in the first quarter of 2006.

http://www.tehrantimes.com/Description.asp?Da=12/21/2006&Cat=9&Num=13

You are to blame

December 21st, 2006, 06:01 AM

Gambia: Domestic Economy Registers Formidable Performance - SoS Gaye

The Daily Observer (Banjul)
December 20, 2006

Alhagie Jobe

The Gross Domestic Product (GDP) of The Gambia has grown by 7.7 percent in 2006, registering a formidable performance of the country's economy compared to the previous years.

This was revealed in the 2007 budget statement of The Gambia Government.

According to the Secretary of State for Finance and Economic Affairs, the performance is as a result of growth in all sectors of the economy. He said that the prime contributor of growth in 2006 is a boom in the building and construction industry, a strong rebound in telecommunications, considerable growth in agricultural output and a substantial increase in the operations of hotels and restaurants. This, he went on, resulted in growth rates of 40 percent, 18 percent, 6.5 percent and 6 percent respectively. In terms of percentage shares, agriculture, industry and the services sector contribute 29.8 percent, 10.9 percent and 56 percent of total value added respectively.

He attributed the growth in the agricultural sector to the increase in value of crop production, livestock, forestry and fishing activities. "The value added for crop production increased by 7 percent, livestock by 3 percent, while forestry and fishing activities increased by 3 percent and 10 percent respectively. The 8.8 percent growth in industry is as a result of increase in productivity in mining and quarrying activities (15 percent), manufacturing (7.2 percent), electricity and water (6 percent), and building and construction (40 percent).

The unprecedented growth in the building and construction industry resulted from construction activities in road and other public civil works related to the hosting of the African Union Summit and private constructions relating to housing amenities were also buoyant during 2006.

According to SoS Gaye, the communications industry registered the highest growth of about 18 percent. "The growth in communication is attributed to the expansion of telecommunication activities, and the rapid internalisation of ICT activities nationwide. National policies will continue to facilitate development within the ICT sector to ensure faster socio-economic development, and optimise benefits from globalization. The contribution of the public service to overall GDP remains at about the same level as in 2005", he concluded.

http://allafrica.com/stories/200612200804.html

skipperBill

December 21st, 2006, 07:17 AM

Ethiopia: 2005/2006 GDP Records 9.6 Percent Growth, Per Capita GDP Reaches $180

The Daily Monitor (Addis Ababa)
December 20, 2006
Posted to the web December 20, 2006

Hayal Alemayehu
Addis Ababa

Country's 2005/ 2006 Gross Domestic Product (GDP) growth picked up 9.6 per cent against that of the previous fiscal year, according to MOFED's (Ministry of Finance and Economic Development) latest macroeconomic developments report.

Amounting to 85.2 billion birr (~$11 billion), the reported year's real GDP (computed at constant prices with 1999/2000 taken as a base year) has surpassed that of the preceding year's total sum by 7.5 billion birr, MOFED's annual report indicated.

Commonly accountable for constituting the loin's share of the country's GDP, agricultural products shared 47.3 per cent of the review year's overall GDP, followed by the service sector which contributed 40.4 per cent of the total sum figure. The industry sector has shared the balance.

Although considered minimal relative to most other African economies, the country's per capita GDP has accordingly exhibited growth.

According to the report, the 2005/2006 per capita GDP (computed at current market prices) has increased by 14 per cent versus that of the earlier to hit180 US dollars.

Measured by real GDP growth, the overall economic performance of the country has registered continuous progress over the last three years, noted the report.

The GDP growth recorded in the preceding 2004/2005 and 2003/2004 years stood at 10.5 per cent and 11.9 per cent respectively, according to MOFED's revised GDP report.

MOFED's GDP growth forecast for the (2006/2007) fiscal year even goes higher than the reported year's rate targeted at 10.9 per cent.

The International Monetary Fund (IMF), which examines and gives recognition to the world economies' GDP growth reports, has, however, estimated a 5.4 per cent and a 5.5 per cent GDP growth as a possible scenario for Ethiopia for the years 2006 and 2007 respectively.

http://allafrica.com/stories/200612200469.html

Matthias Offodile

December 21st, 2006, 12:20 PM

Nigeria: FG, Microsoft Seal Deal on e-Government

From Onyebuchi Ezigbo in Abuja, 12.20.2006

The Federal Government yesterday signed a strategic partnership agreement with global software giant, Microsoft Corporation, for the supply and transfer of a series of initiatives that contribute to effective governance and the socio economic development of Nigeria.
Under the three years agreement valued at over $49.1 million, Nigeria will receive from the corporation’s wealth of knowledge in technology and its capability for social and economic development.
Specifically, apart from the increased access of top-of-the-range software and related training to be provided as a result of the agreement, Nigeria is also expected to benefit from the technical know-how of Microsoft in e-Government. The pact will also streamline the government’s use of Microsoft’s software tools.
The agreement was signed on behalf of both parties in Abuja by the Secretary to the Government of the Federation, Chief Ufot Ekaette, and the Regional General Manager for Microsoft in West, East, and Central Africa, Mr. Thomas Hansen.
Nigeria’s Minister of Science and Technology, Prof. Turner Isoun, witnessed the signing of the pact which builds on one implemented in 2003.
Microsoft will establish Microsoft Innovation Centre in Abuja next year primarily to help the Nigeria software industry to further develop skills.
The Innovation Centre is expected to provide IT professional with solid technical training, offer local partners an opportunity to collaborate with eac other or their international counterparts, and help developers to showcase their made in Nigeria software.
The agreement also provides for support for research and innovation as well as security cooperation. All these are aimed at making Nigeria a global player in the IT sector.
Speaking at the ceremony, Chief Ufot Ekaette re-echoed the federal government’s belief that information technology provides a veritable means of developing the nation’s economy.
He said FG has embarked on a deliberate policy to harness its potentials. One of such policies is the continued partnership with global software giants-Microsoft, to ensure that our ministries, departments and agencies are not hamstrung in their ability to creatively use software to improve efficiency and generate wealth.”
“It is therefore imperative that our nation should join the rest of the world in recognizing the pivotal role of software developmentin the overall development of the IT sector", he said.

boris89

December 21st, 2006, 10:36 PM

Under French influence, the international Working group (GTI) in Ivory Coast which supports like only one man (except for South Africa) the Prime Minister Charles Konan Banny “CKB”, was quickly émasculé by the international and African lobbies of president Laurent Gbagbo. The Head of the State opened, on December 15 in Abidjan, the 3rd Panafrican Congress of the “young patriots” (COJEP) of Charles Blé Goudé on the topic of the “Resolutions of UNO and (of) sovereignties of the African States: cases of Rwanda and the Ivory Coast”. A whole program which promises next “a festival” anti-UNO and especially, anti French.

China and (Israel) vote Laurent Gbagbo. As for Sudan with the Americans, the resolutions presented at the United Nations by the French diplomats to sanction the behavior of the close relations of Laurent Gbagbo are blocked by China, member permanent of the Security Council.

The new ambassador from China in Abidjan. My Zi Xhué, which was before in station in Madagascar and Mali, offered on November 12, a beautiful pen in Solid gold with the president of the Ivory Coast on behalf of president Hu Jintao, Beijing which built the House of the deputies with Yamoussoukro and exploits already a layer of Manganese piaffe of impatience to obtain oil blocks. That could not delay too much…

If the declarations of the American Ambassador Aubrey Hooks on the absolute primacy of the Constitution of the Ivory Coast, and thus of the capacity of Laurent Gbagbo, have a tantinet aggravated in the Elysium, they are especially the Israelis who are the best relays of the president of the Ivory Coast in Washington and in the international authorities. The ambassador of Israel Daniel Ekem, from which it is the second mission in Ivory Coast, came to propose on December 1 with Laurent Gbagbo a reinforcement of the axis Tel-Aviv Abidjan, with a technical aid of scale in favour of a “civic service” so that the young rebels give up “rifle for the pickaxe”. Soon Kibbutzes in the North of the “released” country? The Israeli businessmen are also very active in their support for Gbagbo. CHAIM Lebovits, whose company “C &L Ressources” obtained the block C 102 (LC n°495, thus took along in its private aircraft the Minister for the Mines and Energy Leon Monnet to Kinshasa for the ceremony of establishment of president Joseph Kabila.

Strategy… Other new international supports of Laurent Gbagbo: (India which will invest in the project of frank Zone high-tech of the adviser Vincent Kragbé. And Iran which seeks Cocoa quotas and ambitionne to install a factory of assembly of bus in Abidjan.

Thabo Mbeki and Paul Kagamé for “godfathers”. Except notable for the president Malian Amani Toumani Touré ATT”, uncle of the wife of the star of the Ivory Coast of football Didier Drogba. Laurent Gbagbo does not have really many “pals” in the area. On the other hand, several “independent” presidents, english-speaking support it openly. To start with president Thabo Mbeki whose country will sit at the Security Council of the United Nations from January 1. South Africa recently sent in Abidjan officers instructors specialized in the urban guerrilla warfare and four African southern Generals came “to shoulder”, on December 11, the general Philippe Mangou, chief of Staff of the army of the Ivory Coast. Always last week, it is the Adviser in Safety of the president of the Ivory Coast, Bertin Kadet, which was in Luanda at another aficionado of Laurent Gbagbo.

President Jose Eduardo Back Santos. This last ambitionne to succeed Denis Sassou Guesso with the presidency of the African Union (UA). Since the rupture of the diplomatic relations between France and Rwanda, another strategic alliance was tied between Laurent Gbagbo and Paul Kagamé, first financed the monument with the victims of the genocide of Kigali and the second takes again from now on the theses of the “patriots” of the Ivory Coast showing France of interference in the businesses of his old colonies. Sometimes called, the “French-speaking Mugabe”.

Laurent Gbagbo can also count on the support of the strong man of Harare, another “friend” of Large China…

Matthias Offodile

December 22nd, 2006, 12:59 AM

Nigeria: Nigeria-Cameroon Highway Project Signed

Cameroon Tribune (Yaoundé)

December 21, 2006
Posted to the web December 21, 2006

Emmanuel Kendemeh

Minister of State, Jean-Marie Atangana Mebara signed the Memorandum of Understanding of the project yesterday.

Cameroon's Minister of State, Minister of External Relations, Jean-Marie Atangana Mebara yesterday, December 20 at his ministry signed the memorandum of understanding for the Nigeria- Cameroon Multinational Highway Transport Facilitation Project. This was in the presence of the Minister of Public Works, Bernard Messengue Avom, the Nigerian High Commissioner to Cameroon, Edwin Edobor, the National Coordinator of the African Development Bank Programme, Denis Léopold Tankoua and the two Ministers Delegate at MINREX, Joseph Dion Ngute and the Adoum Gargoum.

The project was one of the decisions reached at the Nigeria -Cameroon Mixed Commission set up for the implementation of the International Court of Justice ruling on the Bakassi border dispute. The two countries requested for the funding of the project by the African Development Bank. The Bank's officials on their part requested the parties to sign a Memorandum of Understanding as a prerequisite to facilitate the preparation and implementation of the entire project. According to the Director of the Legal Affairs and Treaties Division at MINREX, Sebastien Foumane, both the plenipotentiaries of Cameroon and Nigeria were supposed to meet and sign the memorandum of understanding for the project but due to time table constraints, the Nigerian official could not be present. As such, in diplomatic circles the method of alternative signing had to be used where an official signs and forward the document to the other. He explained that as the Minister of State Atangana Mebara had signed on behalf of Cameroon, the same memorandum of understanding will be sent to his Nigerian counterpart for signature through diplomatic channels.

The memorandum of understanding concerns the project to rehabilitate and construct a highway from Enugu-Abakiliki-Ogoja Junction- Ikom Mfum in Nigeria to Ekok-Mamfe-Batibo in Cameroon and transport facilitation between Enugu and Bamenda. The memorandum of understanding states that the project shall comprise of two segments called the "Nigeria segment" and the "Cameroon segment". Each party, it further specified, shall be responsible for the design and implementation of its own segment of the project, subject to agreed technical specification and standards. The Nigeria segment is divided into three sections. They relate to the dualisation of Enugu- Abakiliki Road (78.2km), rehabilitation of Abakiliki-Ogoja Junction (87.2km) and rehabilitation of Ogoja Junction-Mfum (74.6 Km). The Cameroon segment of the project concerns the upgrading of Ekok-Mamfe road (60Km) and upgrading the Numba -Batibo raod (20 Km).

PS: Let´s hope that it takes off and that it is no blabla again!

Matthias Offodile

December 22nd, 2006, 08:10 PM

FG, Chinese Firms Sign N24bn Rural Telephony Contract

From Onwuka Nzeshi in Abuja, 12.22.2006

The Federal Government yesterday signed contracts with two chinese firms - ZTE and Alcatel Shanghai Bell in respect of the second phase of the National Rural Telephony Project. Both firms executed the first phase of the project which covered 218 local councils spread across the federation.
In addition, the second phase is expected to cover over 300 local government areas and will upon completion bring to 576 the number of local government areas where Nigerians living in the rural areas will have access to basic telecommunications including voice, data transmission and internet services.
Minister of Communi-cations, Dr. Obafemi Anibaba who signed the contract on behalf of the Federal Government disclosed that this second phase will also involve a third Chinese firm, Huwawei but noted that even at the completion of the second phase the nation's 774 local councils would not have been fully covered.
He disclosed that the Minstry of Communications has equally received Pres-ident Olusegun Oba-sanjo's approval that contract for the third phase of the National Rural Telephony Programme be awarded by March 2007 to ensure that every nook and cranny of Nigeria was linked by telecommunications signal.
According to him, part of the design of government is to make telecommunications services available to the the rural areas currently underserved, improving their level of awareness of development around the world and reducing rural urban migration in the country.
"We have also decided that most of the projects will be sited as near as possible to most post offices across the country to enable the Nigerian Postal Service (NIPOST) tap into the network and provide various electronic communication services to the
rural dwellers. In other words, from March next year, if students in rural areas want to check their JAMB results, they need not travel to the cities but could walk to the nearest rural post office to access the internet," Anibaba stated.
He appealed to the three firms involved in the second phase to rededicate themselves to the project to ensure its completion on schedule, adding that it was because of their track record and level of performance in the first phase ofthe project that has necessitated their invitation to participate in the current phase.
The Project is being financed through a concessionary loan secured by the Federal Government from the government of the Peoples Republic of China.

Matthias Offodile

December 22nd, 2006, 08:50 PM

Gabon: Signature d’une autorisation d’exploitation pétrolière sur le champ d’ONAL

(Infosplusgabon 21/12/2006)

LIBREVILLE, 21 décembre (Infosplusgabon) - Le ministre gabonais des Mines, de l’Energie, du Pétrole et des Ressources hydrauliques, Richard Auguste Onouviet, a délivré la semaine écoulée à la société pétrolière Maurel & Prom une autorisation exclusive d’exploitation pour le champ onshore d’ONAL, d’une superficie de 45,8 km², situé sur le permis d’Omoueyi (4 178 km²), au Gabon.
« Cette approbation a été accordée le mercredi 13 décembre 2006 pour une durée de 20 ans, renouvelable une fois, et concrétise l’intensité, la rapidité et le succès du programme d’exploration-appréciation de Maurel & Prom au Gabon », souligne un communiqué de presse rendu public jeudi.

Les investissements de développement liés à ce projet sont évalués à 250 M$, , concentrés sur les années 2007 puis 2008.

Selon la représentation de Maurel & Prom à Libreville, « le développement d’ONAL est prévu en deux phases. La première phase est constituée de la mise en place des installations de surface, de la construction des flowlines (raccordements) et de l’oléoduc, et de la mise en production des 4 puits d’exploration forés en 2006 et de 11 puits producteurs à forer en 2007 ».

FIN/IPG/PJG/MPL/2006

boris89

December 22nd, 2006, 09:55 PM

There was little attempt on the part of speakers or delegates at the Leadership for Growth conference to expound on the direct leadership lessons that China might have for Africa. Instead there was widespread agreement that the rise of China offered real opportunities for Africa and much of the session was spent exploring these.

It might be that there are few direct leadership lessons from China. One speaker commented caustically that the same management consultants who had previously advocated “the Japanese way” were now punting “the Chinese model”. Delegates, it seemed, were fed-up with management fads. But it did eventually emerge that there was some admiration for certain aspects of Chinese leadership.

Dr Matthews Chikoanda spoke about how the Chinese had broken out of the commodity export-manufacturers import cycle. Much of the Chinese experience he noted was singular but there are some general lessons.

First, he suggested that the Chinese had shown that it was necessary to become “economic warriors” in the pursuit of growth. He approved of the fact that business leaders — and not only in Africa — were drawing increasingly on thinking related to Sun Tzu’s ancient classic, The Art of War. The basic principle he quoted involved preparation: “Win the battle before the fighting begins”.

There are limits to this insight. Chinese development strategy has a coherence and common purpose between government and corporation that is simply not possible in Africa, at least in the near future. One of the advantages Chinese companies are able to bring to bids for African contracts is financing. But the ready availability of Chinese money is based on that country’s profound propensity to save. At the end of October China’s reserves — already the largest-ever recorded — reached an astounding $1 trillion. One high-profile loan beneficiary has been Angola where the creation of a $2bn facility at negligible interest (1,7%/annum over 17 years) was the key to the return of Chinese firms after a 30-year absence. Angola had previously been conceded by China as falling within the Soviet sphere of influence. Such resources are simply not at the disposal of Africa, dependent as the continent is on injections of foreign capital.

Nevertheless, the lessons of focus, single-mindedness and advanced preparation are pertinent to African governments. Kobus van der Wath of the consultancy Beijing Axis observes that China is planning 10 years ahead in terms of its penetration of Africa. China, he notes, wants to secure resources, assert itself diplomatically (especially against Taiwan) and develop markets for its own goods and services. But the unity of purpose and close organisational links between the Chinese government and its corporates may not be possible for Africans. Programmes for good governance in Africa are premised on a separation of state and private sector borrowed from the Western model of development. This distinction is inseparably linked to multi-party democracy. The development paths chosen by Africa — not to mention the continent’s (Western) donor dependency — make this model unattainable at present.

The other Art of War precepts quoted by Chikoanda seem a little alarming and might not have too much application outside modern (Western) corporate careers. One is “learn to fight and do it right”, another is “burn the bridges behind you” (making retreat impossible). He also notes that one precept starts with the insight that “standing alone is very difficult” and proceeds to advise “pulling together”. Chikoanda suggests the African notion of Ubuntu may feed into this process. Finally, he suggests, “when you’re doing all of this, you need to keep your opponents guessing”.

The problem with these insights is that while the wrapping may be Chinese, the substance is simply sensible management practice. The lessons boil down to adequate technique, commitment, teamwork and surprise. These are surely not the uniquely Chinese lessons for Africa.

However a further point made by Chikoanda may ultimately be the more important. He points out that the Chinese very successfully ditched their historical baggage. Africa, with its primary reference point in colonial history, needs to do the same. “Sure history is ‘there’,” he said. “So what? It’s gone.” There is a degree of truth in this statement but again, it should not be overdrawn. China has a strong sense of historical destiny, rooted in awareness of its position as the “Middle (of the earth) Kingdom” and a burning desire to reclaim its historical pre-eminence. Africa’s claims to past glory — while all too often underestimated — are nevertheless thin stuff by comparison.

China’s growth, insists Van der Wath, offers opportunity rather than posing a threat. He points out that China’s resource gap is wide and likely to widen further. China’s interest in Africa’s commodities “brings in the investment dollars”. African countries need to accept that they are going to have to compete with one another for that resource and that means developing whatever comparative advantage each country can find.

Ali Mufuruki pointed out that not only does China make infrastructure finance more readily available than any other country but it also delivers more for each dollar spent. His rule-of-thumb estimate is that the Chinese deliver any given construction at a cost reduction of about 50 percent.

Chikoanda produces another pertinent example. One of the companies he chairs, Malawi Telecom, went to Europe to price new equipment and found it prohibitively expensive. The Chinese offered to same equipment — switch and transmission mechanisms — at “half the price”. The two Chinese firms are now Malawi Telecom’s largest suppliers. He further points out that this is not only a boon to Malawi Telecom but to the entire business community as “the costs of doing business are lowered”.

Indeed, sourcing cheaper capital goods from China may, alongside trade, be the biggest benefit from the burgeoning relationship. Mufuruki gives an example of how things might work in practice: “In Tanzania we needed a large order of new pumps. The world-leading German supplier could promise delivery only in 8 weeks. We wanted them sooner than that so we looked to China — where we found a company manufacturing exactly the same product. They couldn’t sell to us for licensing reasons. But they could direct us to another company that made a perfectly acceptable substitute at one-third of the price! We placed the order and they actually manufactured the pumps while we waited at the hotel.” In the West, he comments, a large portion of the price of capital goods appears to go to the middleman. In China by contrast it is common practice to deal directly with the manufacturer. “If we do more business with China, we can make our meagre resources go further,” he comments.

This sort of example is part of the reason why Western firms and indeed governments are so suspicious of China. The fact is that in many areas Chinese firms can comprehensively out-compete their Western counterparts even without such notorious props as state subsidisation. The rise of China offers the prospect of breaking a long-standing Western monopoly on doing business with Africa, and African business interests and governments can negotiate better terms in the process. Mufuruki says that on a recent trip to China, he encountered a Tanzanian tea exporter doing business. “That’s something you’ll never see in the EU,” he argues. “There, it’s understood that Africa will engage in the value chain only at a certain, subordinate level.” It is acceptable, in other words, for Africans to work on tea plantations and packing sheds — even to manage them in Africa. But the lucrative middle-man function of organising the trade between continents is “reserved” for Europeans. The EU’s many layers of informal trade protectionism suggest that Mufuruki has a point.

Not that Mufuruki is engaging in moral posturing. “China is not (morally) different to the West, from an African perspective,” he says. “It’s not better or worse. They all want our resources. The real issue is how can we, as Africans, take advantage of the opportunity.”

It may be that China’s greatest impact in the immediate future will be on Africa’s infrastructure revolution. Van der Wath points out that Chinese interests tend to invest in all elements of a needed infrastructure network. Not only will they develop a mine, but also the associated roads, railway and port. “They will even invest in logistics,” he points out. Self-interest is of course the driver.

Business in Africa Magazine

SE9

December 22nd, 2006, 11:13 PM

Economy on the upswing, latest scorecard shows

Story by MWANIKI WAHOME
Publication Date: 12/23/2006

The Government yesterday released its performance scorecard in the form of mid-term review of its Economic Recovery Strategy.

The report shows a significant growth in various sectors over the last three years but unemployment remained the greatest challenge.

The economic recovery strategy was launched in 2003 when Narc came to power with the aim of speeding up wealth and employment creation. It covers the period between July 2003 to June 2006.

Although the Government had set a target of creating 500,000 jobs every year, the economy managed to create an average of 470,000 annually.

Most of these jobs were created in the informal sector. The share of modern sector employment declined from an average of 25.4 per cent of the jobs created in 2001-2002 to 22.6 per cent in 2003-2005.

Speaking at The Stanley Hotel in Nairobi on Thursday night, Planning and National Development permanent secretary Edward Sambili said: "When the economy was at its worst, the jobs created were 450,000 per year.

The Government is concerned with the slow rate of creation of jobs and we shall soon be making recommendations on how to accelerate job creation."

However, yesterday Head of Public Service Francis Muthaura said the country was on the path to sustainable development.

"We are now beyond economic recovery and are moving towards sustainable economic development," he said at the Kenyatta International Conference (KICC) during the launch of the report.

The report says there was steady growth in the economy from 0.6 per cent in 2002 to 5.8 per cent in 2005. The challenge, he added, was to sustain the momentum and safeguard the gains made.

Among the sectors that surpassed targets was agriculture which registered 6.7 per cent growth in 2005 against a target of 3.1 per cent. This was driven by the recovery of cane, horticulture, cereals and dairy farming. Others were coffee and tea.

Between 2002 and 2005, the value of tea increased to Sh37.7 billion from Sh33.4 billion, coffee nearly doubled to Sh9 billion from Sh5.4 billion, horticulture increased to Sh38.8 billion from Sh26.7 billion and maize fetched Sh6.3 billion up from Sh4.5 billion.

Construction sector's share contribution to the GDP reached four per cent in 2005 against a target of 4.2 per cent by end of 2007.

Tourism, which the report described as "a key driver to growth" registered phenomenal growth exceeding the target by 25.6 per cent and six per cent in 2004 and 2005. The earnings increased by 27 per cent to Sh48.9 billion in 2005 from Sh38.5 billion in 2004.

The manufacturing sector's share contribution to the GDP stood at 10.5 per cent in 2005 for 9.7 per cent in 2003 indicating slow progress was made.

The targeted growth is 15.7 per cent by the end of 2007. Planning and National Development minister Henry Obwocha attributed the sluggish growth to poor infrastructure.

"The cost of doing business is still costly due to high fuel and electricity costs, poor roads among other factors," he said.

Information Communication Technology (ICT) sector registered 11.8 per cent growth against a target of five per cent to 2007, which indicates its way beyond the target. The number of Internet Service Providers increased to 78 from 66 between 2001 and 2004.

With the duty waiver on computers and ICT items during this year's Budget, and the laying of undersea cable next year, the sector is expected to grow even faster.

Built roads

According to the report, the Government built 1,063 kilometres of roads while another 40,500 is under routine maintenance.

Additionally, 236 boreholes ware drilled serving about 260,000 people. The Government also rehabilitated 67 rural water supply systems and another 74 are under construction.

The foreign exchange reserves at the end of 2005 was $1.8 billion against a target of $1.7 billion by the end of 2007, while the public debt as a percentage to the GDP declined to 50.1 per cent in 2006 from 53.2 per cent in 2004.

The report also says that this will result in debt service as a percentage to the revenue to drop to 14.6 per cent in 2006 from 15.6 per cent in 2004.

SE9

December 24th, 2006, 08:20 PM

2006: Best Ever Year for NSE (Nairobi Stock Exchange)
24th December 2006

http://www.nationmedia.com/dailynation/images/news/biz241206ins.jpg

Year 2006 closes as, by far, the best ever for the stock market, breaking all the previous records as retailers emerged as a force to reckon with.

A share price rally — driven by speculation and improved performance by listed companies and a resurgent economy — bulked up shareholders wealth by over Sh300 billion. The additional wealth falls just Sh75 billion short of what the Government intends to collect as revenue in the current year budget.

The secret to success for companies was rather simple: Go regional, innovate or, get plain lucky.

Sasini

Curiously leading the pack was Sasini Tea and Coffee whose change of strategy into value addition has paid handsomely. By close of trading last week the share had loaded over 464.49 per cent on its January price of Sh26.75 to peak at Sh151. Equally, the shareholder wealth has grown from Sh969.4 million to Sh5.7 billion.

After recording Sh524.8 million loss last year, the value addition has seen the company make Sh349.4 million profit to the year ending September 2006. The good financials pushed company price from Sh27.75 of June.

While releasing the results, the company credited its change of fortune to the new product lines. “We have gone into blending and packaging of tea, which is giving us better returns and the initial response from the market has been positive,” said managing director Peter Muthoka.

Closely stalking a trend that has dominated the market in the last half of the year, Sasini directors have proposed to issue bonus shares and make a stock split.

The 5:1 bonus share will be complemented by capitalisation of Sh38 million of the company retained earnings. To make its shares affordable, the board proposes to split the company shares into five shares each.

ICDCI

The local investment group share price surged 382.76 per cent to hit Sh350 from Sh72 the beginning of the year.

This follows a 105 per cent surge in profit-after tax, largely attributed to good performance of associated companies, whose profits rose 68 per cent.

Speculative activity shadowing the announced share price split saw the company stock spike to a high of Sh800 in October before correcting at the current level.

The good tidings represent a payoff after the company exited from the troubled Uchumi Supermarket before it was temporarily de-listed after Madaraka Day.

The company wrote off the entire investment in the supermarket chain from its accounts in the last financial year after Uchumi share of losses exceeded the book value of the investment. The shares were sold in the last quarter of 2005.

“The growth was supported largely by a 109 per cent increase in investment income as a result of successfully divesting from Uchumi Supermarkets Limited after a highly subscribed rights issue,” noted Peter Mwangi, Managing Director ICDC Investment when releasing the first half year results.

The company recently invested Sh39 million in acquiring a 3.8 per cent holding in K-Rep Bank.

Other unquoted investments are Aon Minet Insurance Brokers, General Motors, UAP Insurance, NAS Airport Services and the offshore Wildlife Works Inc. Last week the investment company bought into the Rift Valley Railway.

Jubilee Holdings Ltd

Regional expansion and cross-listing comes top on Jubilee Holdings’ 315.66 per cent stock rise. The composite insurer’s decision to expand its business operation to the three East African countries is bring cash home. This week saw the company join Kenya Airways and East African Breweries in listing on the three stock exchanges.

The company points its strategy has largely been a result of a four-year corporate restructuring programme.

In the first half 2006, Jubilee chalked up a 25 per cent increase in pre-tax profit making a respectable Sh201.7 million contrasted to Sh161 million in the same period last year.

The company attributed the profitability to continuous roll out of new products. Major among them is the re-launch of the medical insurance business, which registered 256 per cent growth last year.

It intends to spread its tentacles to Southern Sudan, Ethiopia, Rwanda, Burundi and Democratic Republic of Congo.

East African Cables

Speculation, regional expansion and increased profitability worked as the catalyst driving the E.A. Cables share price surge to historical high to even reportedly attract the market regulator’s wrath.

By last week Cables had risen 226.64 per cent from January price of Sh137 to the current price of Sh447.50. The shares are currently selling at the level of Sh44.75 after the August share split at ratio ten-to-one.

The bull run on the cable and conductor maker commenced in July after the company announced a 93 per cent increase in pre-tax take for the first half of 2006, from Sh100 million to Sh193 million.

In the week preceding the results, speculation saw company stock gain Sh25 in under two days.

But the gain attributable to profit surge was dwarfed by speculative trading that followed announcement of a split. From the Sh300 range, it went up to Sh607 prompting the Capital Market Authority (CMA) to announce it would (allegedly) institute investigation on possible manipulation.

The company has sustained a steady growth over past two years, since a local investment group, Transcentury, acquired a 75 per cent stake in it, with a marked 65 per cent organic growth in 2005 lifting sales above Sh1 billion mark.

In a strategic move to enter Southern Africa Development Community (SADC), the company acquired 51 per cent of Tanzania Daesung Cable Ltd - the largest manufacturer of cables in Tanzania - last year for Sh160 million, subsequently changing the name to East Africa Cables (Tanzania) Ltd.

CMC

Up 181 per cent, motor franchiser and assembler CMC’s shares are now trading at Sh152 from a low of Sh54 beginning of the year.

The company, besides reports of a phase-out of the 14-seat Matatu that competes with its Nissan buses early next year, is a beneficiary of economic growth as increased individual/corporate incomes mean more spending on purchase of motor vehicle.

The franchise group operates Kenya’s premier motor dealership network with ranches across the country. The company represents 10 different motor manufacturers including Maruti, Suzuki, Volkswagen, Land Rover, Mazda and Ford cars, Nissan Diesel & Iveco Trucks, New Holland and Nardi Agricultural Equipment and Bobcat.

Incorporated as a private limited company in July 1948 by Messrs Allen and Cooper, who came to East Africa to sell Land Rovers, the company has grown to become one of Kenya’s largest vehicle distributors within East Africa.

You are to blame

December 25th, 2006, 07:58 AM

Kenya says economic growth to exceed 6% in 2006

NAIROBI (Reuters) -- Kenya's economy is expected to grow by more than 6 percent in 2006 compared with 5.8 percent in 2005, boosted by tourism, construction and agriculture, the minister for planning and national development said.

"It will be over 6 percent. As we see it now, the tourism sector (is doing well), agriculture has recovered," Henry Obwocha told reporters after launching the government's mid-term review of its economic recovery strategy.

In its 2005 economic survey, the planning ministry said it expected the country's economy to grow by between 5.5 and 6.0 percent in 2006.

However, Obwocha said growth in 2007 would be affected by, among other factors, politics ahead of general elections.

Jostling has already started, with politicians split into two groups -- one supporting President Mwai Kibaki and another backing opposition coalition the Orange Democratic Movement-Kenya.

"Politics will be a big impediment to achieving growth ... It is going to slow economic growth unless Kenyans divert their attention to economic matters," Obwocha said.

However, one analyst said he expected the economy to withstand political headwinds.

"It's a very resilient economy. It's not to do with politics. It's really if there is any major disruption, if there was any civil unrest," analyst Robert Shaw told Reuters.

Obwocha said growth would also be hampered by the poor state of roads and high agriculture input prices.

Kenyan growth has been on an upward trend since Kibaki's government came to power in 2002 on a platform of economic reform.

In a review of the government's progress between mid-2003 and mid-2006, the ministry said gross domestic product (GDP) growth performed better than targeted by recording 3.0 percent in 2003, 4.9 percent in 2004 and 5.8 percent in 2005.

The east African country's farm-based economy is reliant on exports of coffee, tea and cut flowers plus tourism at its world-famous game parks and Indian Ocean beach resorts.

In its review, the ministry said the tourism sector grew by 6.0 percent in 2005, exceeding a targeted 5.4 percent.

The government underperformed its pledge to create 500,000 jobs a year as promised by Kibaki in late 2002. The mid-term review showed that for the last three years the economy created on average 471,000 jobs annually, mostly in the informal sector of the economy.

Matthias Offodile

December 27th, 2006, 11:02 PM

Nigeria: Ispat Unveils $445 Million Expansion Plan

Vanguard (Lagos)

December 26, 2006
Posted to the web December 27, 2006

Luka Binniyat
Abuja

Ispat Industries Limited, a sister company to Global Infrastructures Nigeria Limited, (GINL), managers of Ajaokuta Steel Company Limited, (ASCL) last week signed a memorandum of understanding (MoU) with the Government of Maharashtra to expand its steel-making capacity at its integrated steel plant at Dolvi in Raigad, Maharashtra.

Ispat's expansion plan includes increasing its steel-making capacity from the present 3 million tonnes to 5 million tonnes per annum, entailing an investment of about $445 million and creating new employment opportunity to over 10,000 people, directly and indirectly. The steel-making capacity will also be scaled up to 10 million tonnes in later phases. The first phase of expansion will be completed over a period of 18 months from the date of commencement of work.

A second blast furnace, a coke oven plant and a new slab caster will be added to the existing facility in the expansion project. Ispat's existing 3 million tonnes per annum integrated steel complex at Dolvi has been set up with an investment of over Rs. 10,000 crores and provides employment to over 6,000 people, directly and indirectly.

The MoU was signed by Mr V K Jairath, Secretary, Department of Industries, Government of Maharashtra (GoM) and Mr Vinod Mittal, Managing Director, Ispat Industries Ltd, in the presence of Mr Vilasrao Deshmukh, Hon'ble Chief Minister of Maharashtra, Mr Ashok Chavan, Hon'ble Minister of Industries, GoM, Dr D K Sankaran, Chief Secretary, GoM, Mr V R Sharma, Executive Director (Strategic Business) and Mr Anil Sharma, Director (Corporate Affairs) of Ispat Industries Ltd.

The Maharashtra government, which is keen to attract more investment in the state and strengthen its economy, has agreed to provide the necessary support for the project. The state government will also facilitate Ispat's requirement of iron ore mines while the Maharashtra Industrial Development Corporation will act as a single window clearance agency for various infrastructure requirements of the expansion project.

Ispat Industries Limited's Managing Director Mr. Vinod Mittal said, "We are grateful to the government for promising all necessary help to expedite the implementation of the expansion project."

Speaking on the occasion, the Maharashtra Chief Minister Mr. Vilasrao Deshmukh said, "Ispat has contributed immensely for the development of the state by setting up the steel plant in Raigad. Ispat was the first company in the private sector, which made an investment of over Rs 10,000 crore in a sector like steel in the state of Maharashtra. I am happy to note that Ispat has planned to bring in fresh investment in its existing plant in Raigad to increase steel-making capacity."

"This will definitely add to the development of the area and increase employment opportunities. The investment plan of Ispat is in tune with the Maharashtra government's vision towards overall progress in the state, especially in the rural areas. We assure Ispat of all the assistance needed like iron ore requirement, etc, to take the project forward," the Chief Minister added.

Minister for Industries, GoM, Mr Ashok Chavan said, "In Maharashtra, Ispat is in the forefront as far as investment in steel-making is concerned and this new project assumes significance considering the importance of steel in infrastructure development. The investment plan also proves that Maharashtra enjoys the confidence of industrialists regarding infrastructure and the support it provides."

SE9

December 28th, 2006, 12:06 AM

Mombasa Port cargo up nine per cent (1 million tonnes)

NAIROBI 28Dec06: The total cargo handled at the port of Mombasa from January to November this year has surpassed that handled over a similar period last year by over one million tonnes.

According to the Kenya Ports Authority (KPA), the port recorded a total of 13.2 million tonnes in the first eleven months of the year, against 12.1 million tonnes in a similar period last year, a rise of about 9 per cent. The figure is expected to hit 14 million tonnes by the end of the year. Last year the port handled a total of 13.28 million tons.

The improved performance is attributed to faster turnaround of vessels at the port due to the newly installed cargo handling equipment.

In the same period, transit traffic has also risen eleven per cent, from 3.2 million tonnes last year to 3.6 million tonnes this year.

During the period under review, the port has handled a total of 437,328 20-foot equivalent units (TEUs), a 22 per cent rise compared to the same period last year.

A TEU is a standard shipping industry unit for containers. Most containers nowadays are 40ft long.

Recent modernisaton efforts have enabled the port to currently handle an average of over one million tonnes per month.

ahmed007

December 28th, 2006, 12:39 AM

Kuwaiti group to establish $2 bln capital bank in Sudan
Monday 25 December 2006 00:30. Printer-Friendly version

Dec 24, 2006 (KUWAIT) — The International Investment Group will establish the largest investment bank in Sudan with a capital of USD two billion, of which 50 percent are paid capital.

The group and its affiliates will cover 30 percent of the capital, said IIG Board Chairman Samy al-Badr in a joint press conference with Sudan Ambassador to Kuwait Yussef Fadel Ahmed here on Sunday.

Strategic shareholders and their partners in Saudi Arabia, Qatar, the United Arab Emirates and other countries will cover another 30 percent of the capital while the government of Sudan will account for the remaining 40 percent.

In case the bank received extra shareholding orders from other firms in the GCC member states, it will increase its capital accordingly, al-Badr pointed out.

The new bank will be a comprehensive one and will meet the demands of Africa wholly, he continued.

Sudan was chosen as a premise for the bank due to its strategic location in Africa. It shares borders with nine African countries and it has promising investment opportunities, he explained.

All relevant studies will be worked out in the coming three months and the bank will be set up thin six months, al-Badr underlined.

For his part, ambassador Ahmed said his country adopted investment-attractive policy and made all riches of Sudan available to Arab and African sisterly countries.

Sudan has abundant investment opportunities as the second largest African country in terms of industry and agriculture, he noted, adding that there were more than 45 Kuwaiti firms doing business in Sudan.

(KUNA)

Matthias Offodile

December 29th, 2006, 06:00 PM

Saipem Picks Up Gabon, Angola Contracts

Thursday, December 28, 2006

Saipem has been awarded two new offshore contracts in Gabon and Angola worth euro 410 million.

In Gabon, CNR International (Olowi) Limited, a wholly owned subsidiary of Canadian Natural Resources Limited, has awarded Saipem a contract for the development of the Olowi field, located 18 kilometers off the coast of Gabon, 400 kilometers south of Libreville.

The field will be developed using three wellhead towers and one conductor support platform tied back to an FPSO vessel (Floating,

Petroleum Production Operations
Production, Storage and Offloading). The contract (EPIC), covers the engineering, procurement, construction, installation, hook-up and commissioning of the fixed portion of the Olowi Field Development Production Facilities and the installation of interconnecting subsea pipeline, riser and umbilical systems between the wellhead towers and the FPSO. The marine activities will be carried out mainly by the Castoro 2 and the Saipem 3000 vessels in the second quarter of 2009.

In Angola, Cabinda Gulf Oil Company Limited has awarded Saipem the EPIC contract for the Flare and Relief Modifications (FARM) Project in the Angolan offshore Block 0, off the coast off the Cabinda province. The FARM project is aimed at eliminating routine gas flaring and is divided into the Malongo and Takula Areas.

The contract covers the project management, construction engineering, procurement of bulk materials, fabrication of flares and various structures, transportation and installation of fabricated structures and client provided equipment, removal of existing flares, offshore hook-up and commissioning. Offshore activities will mainly be performed by the Saipem 3000 between the second and fourth quarter of 2008.

Saipem (43% owned by Eni) is a leader in the provision of engineering, procurement, project management and construction services for the oil & gas Industry, with unique capabilities in designing and executing large scale offshore and onshore projects. Saipem has a strong expertise in operating in deepwater and remote areas. It has significant technological competence in gas monetization and heavy oil exploitation.

Matthias Offodile

December 29th, 2006, 09:35 PM

Angola to explore São Tomé oil

afrol News, 31 October 2006- It is now official that Angola will take part in oil exploration in the São Tomé and Príncipe's economic exclusive area after the two countries' companies signed a partnership agreement. This was announced by the Prime Minister of São Tomé and Príncipe, Tome Vera Cruz.

"We have signed a protocol for the oil sector and there is a memorandum between our national oil agency and Sonangol, but we want to go further so that by forming partnerships we can work together on oil exploration," 'Macauhub' quoted Mr Vera Cruz as saying.

This development came after Mr Vera Cruz had concluded a three-day official visit to Angola. He used the trip to boost bilateral cooperation with Angolan authorities.

He said soon technical teams in the oil sector from both countries would find ways of developing partnerships and bring them to fruition.

Prime Minister Vera Cruz added that his country has two pending debts with Angola, the recent being the result of good relationship between the two countries.

In relation to the other debt, which is older and bilateral, PM Vera Cruz said that he had discussed the issue with the Angolan authorities, "within the framework of the debt pardon to be negotiated with the Paris Club."

A commission involving members from both countries is scheduled to meet in December to analyse new forms of bilateral cooperation between the two countries.

Earlier, São Tomé and Príncipe invited investors from booming Angola to enter his country, which would expedite partnerships between the two countries in various fields. He made the appeal during a visit to Angola upon receiving invitation from his counterpart, President Fernando Dias dos Santos.

In his meeting with Angolan investors in Luanda, Prime Minister Vera Cruz called for greater dynamics among investors and pledged fiscal incentives on investments in his country.

Prime Minister Vera Cruz said there are several business opportunities in his country in addition to the oil sector, which propitiate a public-private partnership among people from both countries.

The government of São Tomé earlier has focused on getting fellow Portuguese speaking nations to invest in its promising oil sector, but failed so far. An agreement of intentions with Brazilian President Lula da Silva failed to materialise in an engagement by Brazil's large state-owned oil company Petrobras.

By staff writer

© afrol News

ahmed007

December 30th, 2006, 05:36 AM

Canar introduces 3G wireless broadband internet service to Sudan
Friday 29 December 2006 03:29. Printer-Friendly version

Dec 28, 2006 (KHARTOUM) — Canar Telecommunication, the nationwide provider of fixed lines, data and internet services in the Sudan has announced today the commercial launch of Sudan’s First 3G wireless broadband internet services for individuals and businesses under the brand name"Canar Go".

Sudanese Canar Telecommunication announced the delivery of wireless broadband internet service, Canar Go, in the Sudan, which will contribute to the development and growth of their lives and businesses, the firm said in a press release.

"Launching Canar’s new broadband service, which coincides with Sudan’s celebration for the Independence Day, is considered a contribution from Canar to the process of development and growth witnessed in Sudan today" stated Mr. Ali Ben Jarsh, the Chief Executive Officer of Canar Telecommunication.

"Providing this service, is a fulfillment of Canar’s promise to provide innovative and advanced technological services. It also reflects the prestigious leading role in telecommunication technology and services that the Emirates Telecommunication Cooperation (Etisalat) has always maintained" added Ben Jarsh.

Canar is planning to launch a number of unique and innovative services that will contribute in supporting the telecommunication sector, individuals and businesses in the Sudan. Furthermore, services to the remaining cities and states will be covered and connected to the international submarine network, which will link the Sudan to the remaining parts of the world.

Canar Telecommunications Company launched its modern telecommunications network at a gathering presided over by president Omer al Bashir on Sunday 27, 2005.

Canar is a provider of communications services established in April 2005 in the name of Canar Telecommunication Co. Limited. Canar uses cutting edge technologies such as Next Generation Network (NGN) and Wireless Loop (WLL).

Galsene

January 1st, 2007, 05:31 AM

WebNews: Mardi 26 Déc 2006

Morocco's National Electricity Office (ONE) has won a $16.5m contract for electrification of 550 villages in northern Senegal. According to the concession contract ONE will distribute and manage electricity distribution for 25 years, the company announced Friday (December 22nd). The Moroccan company aims at reaching 24,000 electricity-service subscribers in three years.

In related news on Friday, Minister of Energy and Mines, Mohamed Boutaleb stated that the country expects 10% share of the renewable sources of its energy balance by 2012. Currently the renewable energies contribute for only 4% of the power production. (MAP)

SE9

January 1st, 2007, 10:22 AM

Dar es Salaam port plans for bigger, modern ships and more containers

The Dar es Salaam port management is projecting a significant increase in the container traffic from 240,000 twenty-foot equivalent units (teu) in the 2005/06 financial year to 260,000 teu by the end of the 2006/07 financial year. Port manager Jason Rugaihuruza said their estimates also project 280,000 teu for the year 2007/08, 305,000 teu for 2008/09 and 320,000 teu in 2009/10.

Mr Rugaihuruza however said the increase does not correspondent with technological and logistical developments. There are bottlenecks arising from the lack of capacity to handle bigger and modern ships that require sophisticated terminal-handling systems and information technology.

Currently, the port of Dar es Salaam handles ships that were constructed in 1970-1980, otherwise referred to as the second generation or cellular container ship that carry 1,500-2,500 teu and a draft of only 10 metres.

The smaller the ships the port handles, the higher the cost of doing business, because bigger ships from Europe and America have to offload the containers at ports that can accommodate them and then have them loaded to smaller ships to be delivered to such less advanced ports.

This means that the port of Dar es Salaam and others such as Kilindini in Mombasa have a long way to go before they can compete with ports that handle the latest ships with a draft of 15 metres, called the ultra mega ships, seventh generation or Panamax size. These ships, with a length of 350 metres, stack 6,000-10,000 teu at a go.

It is therefore with the latest ships in mind, says Mr Rugaihuruza that the Dar es Salaam port management intends to deepen and widen the entrance channel so as to serve ships of Panamax size.

The management plans on joint ventures and co-investments with the private sector to make the port competitive, especially for the East and Central Africa markets, he said.

The port’s hinterland trade is valued at $31 billion annually, catering for Zambia, Malawi, Democratic Republic of Congo, Rwanda, Burundi and Uganda.

Matthias Offodile

January 2nd, 2007, 01:01 PM

Greece and others build $450million cement factory in Calabar

January 1st, 2007

KEHINDE AKINTOLA , Cross River State

Companies from Greece, Spain and Egypt are going into partnership to construct a N59 billion (or $450million) cement factory in Calabar, Cross River State.

Haris Dafaranos , Greek ambassador to Nigeria disclosed this to BUSINESSDAY in an exclusive interview.

As soon as this project is completed, it will be the single largest investment in the cement production sector of the economy, and ensure self-sufficiency in the commodity, with large excess for export.

Currently, Nigeria’s leading cement company, Dangote Industries Ltd, has invested over N1billion in the industry and anticipates growth in capacity utilization to 10 million tons per annum over the next one year.

As at now, Nigeria produces about three million tons or one-third of what it consumes which is about 10 to 11 million tons of cement per annum. Dangote’s anticipated capacity utilization in 2007 would almost meet local demand, and the output of the other cement companies including the expected new investment would be equivalent to the export capacity.

Though it takes time to set up a cement factory, once the companies begin production, their impact will be felt in the area of price, which will certainly drop since imports, with their attendant high freight costs will decline.

Another multiplier effect will be the boost it will give to local limestone market as well as the likely increase in employment opportunities both in the cement industry and the raw materials sub-sector –limestone, gypsum etc.

Dafaranos said that the recent bilateral agreement signed by both governments in Athens would facilitate the nation’s infrastructural development.

"My country has a long history with this beautiful democracy. Our link has been very friendly. There is a maritime cooperation, which is very hopeful. We are close to this country because of its democratic potentials, natural and human resources. We believe in this administration and with the people with vision and steadfastness like you are carrying a name and a heritage… which can help us."

Other areas of cooperation, the diplomat said, included coast guards, fisheries development, goods exportation, shipping and riverine transportation.

"I think these are areas that have been uncultivated but have a lot of potentials.

"That’s why I believe in maritime education and training that brings globalization of cargoes. This will empower people and at the same time minimize cost. This is one futuristic venture to develop in Nigeria."

He added that with the current reforms of the present administration, the venture would go along way in boosting infrastructural development, especially in the power sector. According to Dafaranos this would help gain the confidence of foreign investors in the country.

The ambassador explained further, that his country’s interest in the maritime sector was borne out of the need to fully exploit the great potential in the sector.

Matthias Offodile

January 4th, 2007, 11:18 AM

Angola´s Sonangol and Total Make New Deepwater Mega Oil Discovery Offshore Angola

Wednesday, January 03, 2007

Sonangol and Total have made a new mega oil discovery with the sixth exploration well named Salsa-1, drilled on Block 32 in the ultra deep waters of the Angolan offshore.
The discovery is located in the southeastern part of Block 32, approximately 15 kilometers southwest of the Mostarda-1 discovery.

Complementary technical studies are underway to fully evaluate the results obtained from the tests, and further exploration drilling is underway, and planned, across the block.
Sonangol holds the concession rights for Block 32. The Contractor Group is formed by Total, that holds a 20% interest as operator; other partners are Marathon Oil Company (20%), Sonangol E.P. (50%), Esso Exploration and Production Angola (Overseas) Limited (5%) and Petrogal (5%).
Total has been present in Angola since 1953 and as of the end of 2006 held interests in six production permits, three of which it operates (Blocks 17, 3 and FS/FST) and three it does not (Blocks 0, 14 and 2) and three exploration permits, one of which it operates (Block 32) and two it does not (Blocks 31 and 33).
Deepwater Block 17 is Total's major asset in Angola. It is composed of four major zones (Girassol and Dalia, which are in production, Pazflor which is in the final bidding process before sanction, and CLOV, a fourth major production area, based on Cravo, Lirio, Orquidea and Violeta discoveries, currently being studied).
The production of Block 17 alone, with Girassol and Dalia structures, is expected to reach nearly 500,000 barrels of oil per day by summer 2007.
Ultra-deep exploration work conducted in 2005 and 2006 confirmed the massive potential of Block 32. After the discoveries of Gindungo in 2003, Canela and Cola in 2004, the positive results from the Gengibre and Mostarda wells drilled in 2005 confirmed the existence of a probable major production structure in the east-central section of the block. Conceptual development studies were initiated in 2005 for development of these discoveries.

Matthias Offodile

January 4th, 2007, 01:33 PM

Reunion Island attracts thrill-seeking Chinese

APA Saint-Denis 20/11/2006( Reunion Island) Reunion Island, which partook in the China international Travel Mart (CITM), the famous Asian tourism exhibition, is getting ready to be granted the status of "authorised travel destination" by Beijing, APA learnt here Monday from official sources in Saint-Denis, the capital.

For the first time and under the aegis of the stand of Maison de la France, Reunion Island had participated in this world class show dedicated to tourism which took place in Shanghai and registered the participation of 4100 exhibitionists from 91 countries and regions and spread out in 1200 stands.

“China is located in the Indian Ocean zone and it is sound for Reunion Island to open up to other markets different from France and Europe", the project leader of the Reunion corporation for regional cooperation and major projects, Yohann Chaigneau, explained to APA.

According to Mr. Chaigneau, China has a fast growing economy, which also means an actual development of the Chinese travel clientele, underlining that Reunion Island could not help taking advantage of such a growing potential.

Metropolitan France got the status of" authorised travel destination" from China, which enables it to welcome between 4 and 5000,000 Chinese tourists per year.

“We expect an increase by 10 to 20% per year and hope to reach 1 million tourists within four or five years. If Reunion Island could at least take 10% of this number, it would be better", Mr. Chaigneau indicated, commending the upcoming opening of a Chinese Consulate on the Island.

“Without a consulate in a country, no region can be granted the status of authorised travel destination by Chinese authorities and, without this status Chinese tour operators cannot organise package travels to such region”, M. Chaigneau said.

Matthias Offodile

January 5th, 2007, 11:27 PM

Nigeria Exits London Club:)

•Pays $900m final tranche March
From Josephine Lohor in Abuja, 01.05.2007

President Olusegun Obasanjo has disclosed that Nigeria would exit the London Club of creditors by March when it would pay the final tranche of about $900 million to the club and the country would thereafter become debt free.
Speaking yesterday while receiving the Third Quarter 2006 Report of the National Economic Intelligence Committee (NEIC), at the State House Abuja, the President said Nigeria has so far paid $1.4 billion to the London Club in debt repayment.
“We have paid off $1.4 billion of the amount we owe to the London Club, and the balance of about $900 million will be paid by March, this year, effectively wiping clean, the debts we owe”, he stated.
Commenting on parts of the Report that expressed concern at high interest rates and inflation, the President agreed that interest rates were still high compared to other economies.
He however said appreciable progress had been made since his administration came on board over the issue.
While responding to NEIC’s concern about the Niger Delta, the President stated that the implementation of the Regional Master Plan prepared for the region last year would commence this year.
After receiving the report from the Chairman of NEIC, Dr. Ibrahim Ayagi, the President also condemned cases of violence in the country and urged Nigerians to desist from attributing any violence to political causes.
“We should move away from giving ourselves a bad name unnecessarily. Many of the cases of violence are economic or even social, and we should not classify them otherwise”, he emphasised.
The President then threw a challenge to Nigerian farmers by asking them to take up cassava farming to forestall price increases which would arise from higher demand that is already evident in the markets.
“The massive importation of machines for the production of starch, flour, and other cassava products clearly indicates that we need to raise cultivation of cassava”, he stated.
Speaking on the need to ensure development, the President said “development has to be an admixture of human and infrastructure”, for it to be meaningful for comprehensive societal growth and called for more practical training and skill acquisition.
Meanwhile, the NEIC report disclosed that recurrent expenditure from January to September 2006 was N861.22 billion, while capital expenditure was N72.76 billion.
It however expressed concern at the “low” utilisation of capital funds by ministries, departments and agencies.
Earlier, Ayagi had told the President that recent surveys showed that “the anti-inflationary policy of government had been very effective”, disclosing that food-related inflation was down to 9 per cent in September 2006 from 22.9 per cent in January 2006 .
He commended the stable foreign exchange rate and described the 2.32 per cent differential in the parallel market as “a strategic achievement”.
While commending President Obasanjo for committing about N210 billion to the Niger Delta through the Niger Delta Development Commission (ND-DC) and the “basic characteristic of transparency” with which it was done, the NEIC Report expressed concern that more emphasis are placed on physical projects to the neglect of human development.
Other areas of concern raised by the NEIC include violence in the Niger Delta, lack of a nurturing partnership between NDDC and its host states, and the “unsatisfactory performance of consultants” handling regional projects.

Matthias Offodile

January 5th, 2007, 11:30 PM

Capital market to finance N270bn project

January 5th, 2007

Three oil companies, a gas company and two state governments, are working on a N270-billion joint venture to be financed by the capital market.
BADEJO ADEMUYIWA, Abuja

The oil companies are Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company, and Chevron Nigeria Limited.

The trio will partner with British Gas and the duo of Ogun and Ondo state governments to float the project called OKNLG estimated to cost about $1-billion (N270-billion).

Gbenga Daniel, Ogun State governor, disclosed this at a two-day workshop organized by the Securities and Exchange Commission (SEC) at Gateway Hotel, Ijebu-Ode, Ogun State.

The workshop, "Opportunities in the Nigerian capital market – a paradigm shift in funding government socio-economic projects in Nigeria", is to enlighten government and policy makers about the virility of the country’s capital market at pooling funds for development.

Daniel, represented by Olalekan Bello, the state finance commissioner, also hinted that the Cargo Airport located in Shagamu Lisan axis of Ogun State and Lagos Ogun mega city projects, might also be financed through the bond market.

He said the capital market was considering the huge amount of money needed to finance these projects. "It has become imperative for Ogun, Ondo and Lagos state governments to approach the capital market as internally generated revenue and money collected from federation account would definitely be inadequate."

He said most state governments were caught in the web of using the larger percentage of their yearly budgets for salaries/wages and others overhead costs with little left for capital projects which was detrimental to development.

"Not until you start developing your capital projects, you cannot deliver the dividends of democracy. We (Ogun State) are hungry of developing our capital projects and that is why over 45 percent of 2007 budget is devoted to capital project."

Daniel added that in the face of inadequate revenue "what we do in Ogun State is to continue to rely on the money and capital market to be able to do all the things that we need to do. It is a very complex and challenging thing to do and that is why Ogun State considered this particular workshop by SEC as timely because we must use the bond market to get the long term funds that we need for development".

Margaret Folasade Adeyemo, special adviser, Public Finance and Debt Management Office (DMO), representing the Lagos State Governor Bola Ahmed Tinubu, noted that using short-term funds to finance long-term projects was a mismatch.

"If I’m to advise a government whether to source short-term loan to finance capital project, I will say to the government think twice."

Adeyemo, who shared with other participants the experience of Lagos State Government on the N15-billion Lagos Bond 2002-2008, identified cost of raising funds, SEC 50 percent rule on IGR (Internally Generated Revenue), Audited Account and Irrevocable Standing Payment Order (ISPO) and inadequate experience in packaging a bond by state officials among others as constraints to bond floatation in Nigeria.

For instance, she argued, that in as much as the ISPO is good to guarantee repayment or eliminate the risk of defaults by Bond Issuer, the commission should be able to consider the viability and capability of each state in loan repayment and give some concessions.

Similarly, the Ogun State commissioner for finance pleaded with SEC to reconsider its stand on ISPO as "the Federal Ministry of Finance is extremely reluctant in issuing ISPO for understandable reasons, but we plead that it should be able to sift and see which ones are genuine and which ones to throw away. The Federal Government reluctance in issuing ISPO is not healthy for the Bond Market".

He then advised the commission to allow bonds with longer tenor since most capital projects have long gestation period and government itself is a continuum.

Chris Okereke, Director, Lagos zonal office of SEC representing Musa Al-Faki, Director-General of the commission explained that the reason why Ministry of finance rely on ISPO was because most states and SEC, as an agency of government in capital market regulation and development has the responsibility to protect the investing public and guarantee that loan repayment is made as at when due with the creation of a sinking fund.

Matthias Offodile

January 8th, 2007, 05:08 PM

IMF rates Nigeria high on economic performance in 2006

By Yinka Kolawole, with agency reports
Posted to the Web: Monday, January 08, 2007

The International Monetary Fund (IMF) said the Nigerian economy recorded a creditable performance in 2006 while commending the government’s commitment to the Policy Support Instrument (PSI) framework.

The commendation came upon the completion of the second review of a two-year Policy Support Instrument (PSI) for Nigeria by the Executive Board of the IMF on December 20, 2006. The IMF Executive Board had on October 17, 2005, approved a two-year Policy Support Instrument (PSI) for Nigeria under the IMF’s newly created PSI framework, and which is intended to support the nation’s economic reform efforts.

The framework for PSIs is designed for low-income countries that may not need IMF financial assistance, but still seek close cooperation with the IMF in preparation and endorsement of their policy frameworks. PSI-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners and articulated in a Poverty Reduction Strategy Paper (PRSP). This is intended to ensure that PSI-supported programmes are consistent with a comprehensive framework for macroeconomic, structural and social policies to foster growth and reduce poverty. Nigeria’s PSI is based on the National Economic Empowerment and Development Strategy (NEEDS), Nigeria’s Poverty Reduction Strategy, and focuses on rapid and sustainable non-oil growth and poverty reduction. Members’ performance under a PSI is reviewed semi-annually, irrespective of the status of the programme.

Commenting on the outcome of the review, Mr. John Lipsky, First Deputy Managing Director and Acting Chair of the IMF Executive Board, said: “The authorities are to be commended for Nigeria’s continued positive economic performance and their commitment to the program, as demonstrated by the successful completion of the second review. The programme, which meets upper credit tranche conditionality, continues to be guided by the National Economic Empowerment and Development Strategy (NEEDS), and aims to balance spending needs with maintaining macroeconomic stability. Non-oil GDP growth prospects remain robust, external vulnerabilities have decreased with the external debt reduction stemming from the agreements with Paris Club and London Club creditors, and reserves continue to grow. Inflation has been in single-digits since mid-2006, although higher core inflation indicates some underlying pressures. Good progress has also been made with the ambitious structural reform agenda, despite some delays.

“The authorities are committed to addressing the considerable challenges that lie ahead. While infrastructure spending is clearly justified, a further fiscal expansion needs to be resisted, including from potential pre-election spending pressures. Continued adherence to the budgetary oil price rule will be essential. As the burden of macroeconomic stability will fall on monetary policy, liquidity management should be improved. Establishment of a liquidity assessment group and full implementation of the new standing facility and the new monetary policy rate by the Central Bank could assist in this regard. Improving the quality and accuracy of macroeconomic data would also help support decision making.

“To safeguard Nigeria’s oil wealth, oil savings management guidelines will be needed, and thorough cost-benefit analyses for project selection will need to be undertaken. Improvements in public financial management and due-process procedures, and the design of prudent international reserves management regulations, will help to ensure the effective allocation of resources and combat waste. External borrowing should be on concessional terms, in order to preserve debt sustainability.”

SE9

January 12th, 2007, 12:12 AM

Africa Insight: High growth won’t last, unless Africa plays to win in global race

Story by Charles Kimathi
Publication Date: 1/12/2007

That sub-Saharan Africa has experienced high growth rates over the past few years is not in dispute, the question is; for how long will it last? For most countries, it won’t, according to the World Economic Forum.

Only a few sub-Saharan countries are taking advantage of the global boom in commodity prices to build a basis for long-term growth, says the Forum in its Global Competitiveness Report, 2006-2007. The report is categorical that for most African countries, the high growth they are enjoying may not be sustainable.

The reason? Most are simply not working hard enough on those factors that will give them a competitive edge. This is true even for some, like Nigeria, which has obvious competitive advantages, such as record-high revenues from an oil boom.

The verdict is based on the results of the Forum’s Global Competitiveness Index for 2006-2007, which shows — rather obviously — that in terms of competitiveness, the region lags behind the rest of the world.

Most Competitive

In Africa as a whole, Tunisia was the most competitive economy, ranked 30 in this year’s sample of 125 countries globally, up seven places from last year, followed by South Africa at rank 45, a drop from position 40 last year, and the Indian Ocean island of Mauritius at position 55.

Some 19 of the 24 countries from sub-Saharan Africa included in this year’s ranking are among the 25 weakest performers.

“The seven newcomers to the Report from Africa (Angola, Burkina Faso, Burundi, Cameroon, Lesotho, Mauritania and Zambia) are no exception,” the Report says. “All of them rank below 100 and suffer from a weak performance” in most of the nine “pillars” used by the Index to assess a country’s performance and rank it’s competitiveness.

The nine pillars are basically a grouping of factors considered critical to driving a country’s productivity, and which therefore affect its ability to compete. They are: institutions; infrastructure; macro-economy; health and primary education; higher education and training; market efficiency; technological readiness; business sophistication; and innovation.

Dr Augusto Lopez-Carlos, the director of the Global Competitiveness Programme at the World Economic Forum, who is the Report’s editor, notes that none of these factors alone can ensure competitiveness. For instance, “the value of increased spending on education will be undermined if rigidities in the labour market and other institutional weaknesses make it difficult for new graduates to gain access to suitable employment opportunities.”

He also notes that attempts to improve the macroeconomic environment, such as bringing public finances under control, are more likely to be successful and receive public support in countries where there is reasonable transparency in the management of public resources, as opposed to widespread corruption and abuse.

“Therefore, the most competitive economies in the world will typically be those which recognise the importance of a broad array of factors, their interconnection, and the need to address the underlying weaknesses they reveal in a proactive way,” says Lopez-Carlos.

Using this benchmark, therefore, it is Switzerland that came up tops as the world’s most competitive country in the 2006 rankings, an improvement from fourth position in 2005. It is followed by the Scandinavian countries — Finland (2), Sweden (3) and Denmark (4).

Singapore, the only Asian country in the top 10, out-performs the United States to clinch the fifth position. The US, which was ranked first in 2005, dropped to sixth place.

Egypt, which is ranked fourth most competitive African economy — at position 63 globally — is however one of two countries in North Africa and the Middle East (which are assessed as one region) that lost significant ground from last year’s performance. Egypt dropped 11 positions (from rank 52 in 2005) and Jordan ten places, from 42 to 52.

Egypt’s loss is significant because it appears to have missed out on a wave of improvement in the competitive landscape that was generally seen in the North Africa and Middle East region. Those who reaped the benefits in North Africa included Morocco and Algeria, which moved up six places each, to ranks 70 and 76 respectively.

Global Boom

Botswana, Namibia and Kenya, placed 81, 84 and 94 respectively, are the only other African countries within the 1 to 100 bracket. However, they all dropped from their 2005 positions, with Botswana registering the largest drop of 9 places, from 72. Namibia dropped five places and Kenya one.

Although South Africa remains the top performer in sub-Saharan Africa, and is one of the few countries that have benefited from the global boom in commodity prices, combined with buoyant consumer demand, it is still struggling with its apartheid legacy, which saw it drop five places from last year’s Index.

The Report says South Africa’s “gross inequalities, high unemployment, major skill shortages and a striking dichotomy between first and third world characteristics” were some of the factors that reduced the country’s competitiveness.

The Report found that an inadequately educated workforce, restrictive labour regulations and crime were the top three factors affecting business in South Africa, based on a survey that asked respondents to rank 14 “most problematic factors” to doing business.

Botswana recorded the third best performance in sub-Saharan Africa after South Africa and Mauritius, and although it lost ground since the 2005 assessment, the government is noted for its success in using the country’s wealth from key natural resources and diamonds to boost the economy’s growth rate.

“Key to Botswana’s success were its reliable institutions, sound government spending, and a high public trust of politicians,” the Report says.

In addition, Botswana has an edge over most of Africa for having one of the lowest levels of corruption on the continent.

High Scores

Namibia’s fourth place in sub-Saharan Africa is attributed to its fairly high scores under the three “pillars” of institutions (especially its judicial independence and property rights); overall quality of its infrastructure, and the micro-economy (particularly the relatively high national savings rate), which are some of its notable competitive advantages.

The country’s three most problematic factors for doing business were found to be an inadequately educated workforce, poor work ethic, and an inefficient government bureaucracy.

Kenya’s notable competitive advantages include the efficiency of its corporate boards, the quality of its air transport infrastructure, the quality of its education system, as well as its scientific research institutions, and the volume of foreign direct investment.

Not surprisingly, corruption tops the list of the 14 most problematic factors for doing business in Kenya, followed by inadequate supply of infrastructure, access to financing and tax rates.

Nigeria’s drop from position 83 to 101 (18 places) globally is the biggest in Africa, and shows that size and an abundance of resources (even huge revenues from record-high oil prices) alone do not assure competitiveness.

The Report says “weak and deteriorating institutions — including a serious security problem — low ranking in infrastructure and basic health and education, and a very significant change for the worse in macroeconomic management” are responsible for the country’s loss of competitiveness.

Problematic Factors

The top three most problematic factors for doing business in Nigeria are access to financing, inadequate supply of infrastructure and corruption.

In East Africa, Tanzania and Uganda have not managed to improve their competitiveness either and are ranked 104 and 113, respectively. The Report notes that they are ranked even more poorly on specific factors, such as health and primary education (Tanzania, 118; Uganda, 123) and on higher education and training (112 and 107, respectively).

The Report says that although they do better on some of the innovation factors, their failure to make significan’t improvement in the four critical pillars — institutions, infrastructure, macro-economy and in health and primary education — which the index refers to as the “basic requirements” for development, are likely to continue to dent their growth prospects.

In its analysis, the Report has taken into account the fact that countries are at different stages of economic development and has included this in the calculation of the Index. The countries are therefore categorised into those that are in the factor-driven stage, efficiency-driven stage and innovation-driven stage, “based on the idea that as countries move along the development path, wages tend to increase, and that in order to sustain this higher income, labour productivity must improve.”

The Index therefore gives higher relative weights to those pillars that are relatively more relevant for a country given its particular stage of development.

Factor-driven stage countries compete based on their factor endowments, primarily unskilled labour and natural resources, and their GDP per capita is less than US$2,000. These are countries still grappling with “basic requirements”, listed as the setting up of institutions, developing infrastructure and the macro-economy and improving health and primary education.

“Companies in these countries compete on the basis of prices and sell basic products or commodities, with their low productivity reflected in low wages,” the Report says. This is where most African countries are grouped, including Kenya, Tanzania, Uganda, Nigeria and Egypt.

Interestingly, China and India, the two countries causing ripples in Africa with their push for natural resources and new co-operation in trade and aid, are also stuck in this stage of development.

As wages rise with advancing development, countries move into the second stage, the efficiency-driven stage, when they must begin to develop more efficient production processes and increase product quality, the Report says.

African countries that are considered to have reached this second stage of development are Algeria, Botswana, Mauritius and South Africa. They share the honour with Argentina, Brazil, Malaysia, Mexico, Poland, Russia, Turkey and Venezuela, among others, whose GDP per capita is US$3,000 to US$9,000.

Only Namibia and Tunisia are not in either stage one or two, as they are considered to be in transition from 1 to 2, together with 10 other countries, including Colombia, Ecuador, Peru and Thailand, that have GDP per capita of US$2,000 to US$3,000.

Most developed countries with GDP per capita of more than US$17,000 are operating at Stage 3, innovation-driven, where a country’s ability to compete is based on its innovativeness. Companies must produce new and unique products using the most sophisticated production processes.

It is in this league that Singapore and Hong Kong, whose rapid economic progress has become an inspiration to Africa, also belong.

Although India and China are placed in the first stage of development, in the overall competitive index, India is ranked 43, close to its last year’s 45th position, while China is ranked 54, a drop from 48 last year.

Business Index

The Global Competitiveness Report also includes a Business Competitive Index which ranks countries by their micro-economic competitiveness and identifies their competitive strengths and weaknesses in terms of the business environment and operations and strategies of companies operating in those countries.

It also assesses the sustainability of a country’s current level of prosperity.

In the BCI rankings, calculated for 121 countries, the United States leads, followed by Germany, Finland and Switzerland (which is first on the Global Competitiveness Index).

In Africa, Morocco is among middle-income countries that improved their business competitiveness ranking in the past year, while Botswana is among those whose competitiveness fell.

Among low-income countries, those that made the largest improvements were Benin, Kenya and Tanzania, while Malawi, Zimbabwe, Cameroon and Mozambique experienced the largest drops.

The executive chairman of the World Economic Forum, Klaus Schwab, in a preface to the Report, notes that growing global imbalances and the revival of protectionist tendancies — the rising tide of “economic nationalism” — is working against the best long-term interests of enhanced international co-operation.

Schwab hopes that the detailed assessments provided in the 569-page report will help policymakers and business leaders to formulate improved economic policies and institutional reforms.

Matthias Offodile

January 12th, 2007, 12:54 AM

Zimbabwe inflation hits record high

Godfrey Marawanyika
Published: 11-JAN-07

HARARE - Inflation in Zimbabwe has hit a new record high of 1,281 percent:ohno: , puncturing government hopes of reining in the galloping rate which has left households struggling to make ends meet.
Figures released by the central statistics office (CSO) showed that the year-on-year inflation rate had risen by 182 percentage points in December from 1,098 percent in November.
The figures were published on the same day the country's leading consumer watchdog produced a report which showed the average monthly bill for households in Zimbabwe shot up by 43 percent last month alone.
Acting CSO director Moffat Nyoni said the highest cost increases were in emergency medical services which rose 48,217 percent, electricity, gas and other fuels which went up by 3,542 percent and hospitals and clinic fees jumped by 3,447 percent.
"A bundle of goods and services that cost ZWD100,000 ($400) in December 2005 would on average cost ZWD1,381,000 ($5525) in December 2006," he said.
Zimbabwe is in the seventh year of economic recession characterised by high inflation, massive unemployment and chronic shortages of foreign currency and basic goods like fuel and the staple cornmeal.
Inflation first passed the 1,000 percent rate in April last year and reached its previous high of 1,204 percent in August before dipping slightly.
Presenting the budget for 2007 last month, Finance Minister Herbert Murerwa forecast that inflation would drop to below 400 percent in the latter half of the year.
Independent financial analyst Eric Bloch said after the latest batch of figures that Murerwa's projections were "wishful and delusional."
Bloch said inflation could now hit the 2,000 percent mark before decelarating in the second half of the year.
"The decline is still however way above the government projections that inflation will end the year at between 350-400 percent," he added.
Victor Zirebgwa an analyst with the economic think tank, Tecfin Financial Research, said the new rate of inflation reflected a failure in government initiatives to halt the recession.
In April last year President Robert Mugabe's government unveiled an economic blueprint to revive the country's moribund economy within nine months by generating foreign currency and attracting more foreign tourism.
But many analysts say the blueprint called the National Economic Development Priority Programme has thus far yielded little.
"We expected that some of the policies would have at least positively assisted the economy to recover but that was not the case as inflation has ended the year at its highest," Ziregbwa said.
The impact of the crisis on ordinary Zimbabweans was highlighted in the report by the Consumer Council of Zimbabwe's (CCZ) which showed the cost of living for a family of six living in urban areas had risen from ZWD245,661 ($988) in December to ZWD351,631 ($1406), reflecting a 43.1 percent increase.
The price of bread, the most common meal for the average Zimbabwean, went up from ZWD300 ($1.2) early December to ZWD850 ($3.4) by the month's end while the price of cooking oil also went up nearly two-fold.
The average monthly salary for an urban worker in ZWD65,000 ($260)and most families often resort to skipping some meals while workers walk or cycle up to 30 kilometres to work in order to stretch their income to next pay day.
For most families ingredients like milk for tea and margarine or jam have become luxuries they have struck out of their list of groceries.
Sapa-AFP

You are to blame

January 12th, 2007, 05:10 AM

Africa in 2007 and 2008 to have 5%+ growth

IMF boss predicts Africa to hit over 5 percent growth in 2007

Published: 11-JAN-07

Libreville – International Monetary Fund (IMF) managing director Rodrigo de Rato has said economic growth in sub-Saharan Africa would probably be higher than 5 percent in 2007 for the third year running and that the prospects were also good for next year.

He made the statement while addressing Central African leaders Omar Bongo Ondimba of Gabon, Denis Sassou Nguesso of Congo, François Bozize of the Central African Republic and Fradique de Menezes of Sao Tome and Principe at the Gabonese state house Tuesday.

The IMF boss further noted that except for Zimbabwe, the average inflation on the continent is lower than 10 percent, the lowest in 25 years.

On this issue, he added that many countries were boosted by conducive economic environments – the strong growth of their trade partners throughout the world, high prices of basic commodities and additional resources for development allocated through debt relief.

However, de Rato noted that these results were still not enough considering poverty and the need to work towards achieving the Millennium Development Goals (MDGs).- Panapress

You are to blame

January 12th, 2007, 06:20 AM

South Sudan booms

Peace brings boom to south Sudan

By Jonah Fisher
BBC News, Juba

Two years after a deal was signed to end the long conflict in southern Sudan, bulldozers and diggers are hard at work transforming Juba, a town of mud huts and dirt roads, into what could soon be a 21st Century international capital.

Juba has become a huge building site
Long-time southern rebel leader John Garang told a signing ceremony in Nairobi on 9 January 2005 that true peace would only come with economic development.

He died in a helicopter crash later that year but in the roads around his steel framed mausoleum in Juba, Mr Garang's dream of lifting southern Sudan out of poverty is still alive.

A plume of dust surrounds the heavy duty machinery on the track that leads from the airport to parliament.

Six months ago the whole of southern Sudan had just 10km of tarmac road.

Thanks to a multi-million dollar contract, Juba alone will soon have over 60km.

Electricity pylons are being erected and new water and sewage systems are planned for later in the year.

Oil money

"We can be proud of what we've achieved so far," says south Sudan's Vice-President Riek Machar.

"Before we could do anything we had to set up a government, a civil service and to establish accounting and financial procedures."

I feed my children now with food that they didn't even know about before

Mary Sufu
Though it started work without basic infrastructure, the southern Sudanese government does have money.

As part of the peace agreement with the north, the south gets 50% of Sudan's oil revenue.

At the moment that means about $800m a year.

But not much of that cash has reached Bulluk-A primary school.

Ragged white tents in the dusty playground now serve as classrooms to many of its over 2,000 pupils.

High prices

Encouraged by the peace deal, hundreds of thousands of southerners have returned to their homes but the education system simply can't cope with the influx of children.

"These children instead of sitting on the floor bring stones so they don't get their dresses dirty," says teacher Mary Sufu with an exasperated smile.

Children use stones as chairs in their tent school
As if learning with no desks, tables or textbooks wasn't hard enough, Ms Sufu's class of 180 children are also grappling with a syllabus that is being changed from Arabic to English.

Just down the road from Bulluk-A is Customs market where Ms Sufu shops for her five children.

During the civil war, government-controlled Juba was surrounded on all sides by rebel forces and food had to be flown in from Khartoum.

The food at Customs market was expensive and most of it in tins.

The opening of roads to Uganda and Kenya has changed everything.

"There's plenty of food now in the market and it's cheap," Ms Sufu says as she shoves sweet potatoes and pineapples into her plastic bag.

"I feed my children now with food that they didn't even know about before."

It's not just fruit and vegetables that are coming across the border in trucks.

Independence

Ugandans and Congolese have established a presence in a market once dominated by northern traders.

Motorbikes, mobile phones, cheap electronics and beer are all selling well to eager Juba residents.

"The prices are high, we're getting a lot of profit," says one bare-chested trader as he plays a board game with his fellow Ugandans.

"A generator here costs 4.9 million shillings ($2,500), we buy it in Uganda for 2.9 million($1,600)."

At the moment the south governs itself but remains part of Sudan.

Under the terms of the peace agreement a referendum on independence will be held in 2011.

If Juba's boom continues, that could encourage a vote for independence and the city completing its remarkable transformation.

Matthias Offodile

January 12th, 2007, 01:44 PM

Gabon gets recognition of Africa's first forest certificates:applause:

afrol News, 4 January 2007 - After a lengthy process, Gabon has achieved developing a national forest certification system that is accepted internationally. This first-ever approved African national standard provides wood buyers with proof of sustainably managed forests and should ease Gabonese efforts to get good prices for their forest products.
Gabon has become the first African member of the international PEFC Council - the so-called Programme for the Endorsement of Forest Certification schemes. Behind the bureaucratic name, the PEFC plays an important role to assure trade with wood and paper that only stem from sustainably managed forests.

For the Gabonese forest industry, it is quite prestigious to have its home-grown Gabonese Pan African Forest Certification System (PAFC Gabon) admitted into the international PEFC Council. Gabon only becomes the 30th PEFC member in a body totally dominated by Europe and North America. The only other tropical forestry member nations are Brazil and Malaysia.

PEFC Chairman Henri Plauche-Gillon welcomed Gabon as the first African country into the council after members unanimously voted in favour of its membership application. The PAFC Gabon certification system aims at becoming the basis of an all African standard - thus titling itself "Pan African".

Rose Ondo, President of PAFC Gabon, greeted the news of PAFC Gabon's membership in the PEFC Council. "Gabon is the first country to develop a national PAFC system. We are determined to establish standards and procedures that are compliant with the requirements of PEFC," Ms Ondo said. PAFC now is to be opened up to other African nations, wanting to develop their national standards within the system.

According to a PEFC statement, "membership of the PEFC Council now means that PAFC Gabon has taken the first step in its journey towards international endorsement and the mutual acceptance of certified tropical forests in Gabon through the PEFC system."

Before the first Okoumé timber logs - one of Gabon's most important tropical timber species, can be sold with the PEFC label - independent consultants will assess the Gabonese system against PEFC's benchmark requirements. Part of the assessment is a public consultation process, during which all interested individuals and organisations can comment on the PAFC Gabon system.

According to Ms Ondo, "Gabon has more than 10 million hectares of commercial forests offering a wide range of African tropical hardwoods. We are confident that with a PEFC endorsement, we will be able to meet the existing and fast growing demand for certified tropical timbers."

Selling its forest products with the PEFC label, Gabonese timber will be accepted as environmental proof on all major markets - meaning the European and American members of PEFC. This also assured the best possible prices for Gabonese products.

The Libreville government has worked towards PEFC membership for years. Forestry Minister Emile Doumba launched PAFC Gabon already in 2004, stating his ambition for an international recognition of the national certification scheme. Gabon started these processes in 2000.

PEFC basically is a framework for the mutual recognition of credible national or regional forest certification schemes that have been developed based on internationally recognised requirements for sustainable forest management. Since its launch in 1999, PEFC has become the largest forest certification umbrella organisation covering national schemes from all over the world.

By staff writer

Matthias Offodile

January 12th, 2007, 05:49 PM

Nigeria-UAE Trade: Nigeria Grants UAE Firm $400 Million Spectrum Licence

From Onwuka Nzeshi in Abuja, 01.11.2007

As part of efforts geared towards developing broader bilateral economic relations between Nigeria and United Arab Emirates, the Nigeria Communications Commission (NCC) has offered a Unified Access Service Licence to Mubadala Development Company of the United Arab Emirates.
The business portfolio includes the fifth and last spectrum in the Global Service for (Mobile) Telecommunications (GSM) 1800 and 900 MHz bands at a price of $400 million.
Under the terms of the licence, Mubadala would be required to pay the full license fee on or before January 19, 2007, failing which the offer shall automatically lapse.
Mubadala has accepted the terms of the offer in full while the NCC will carry out its regulatory role in implementing the agreement on behalf of the Nigerian government.
Public Affairs Manager, Nigeria Communications Commission, Mr. Dave Imoko disclosed that the Board of the Commission remained poised to continue with the licensing of radio spectrum in the 3G and 450 MHz bands.
He said these new licences will encourage the deployment of advanced technology to build on the positive development of the telecommunications sector in Nigeria.
The release of more spectrum, Imoko said, was in line with Federal Government's policy of improving access to communication services and extending coverage, especially into rural areas to enable subscribers in the currently underserved remote areas receive a wide range of quality services at reasonable cost.
The process for awarding new licences, the NCC spokesman said, has necessitated the appointment of PA Consulting Group, a leading firm of international management and telecommunications consultants.
The Unified Licensing Regime was introduced by NCC in 2006 to fast track developments in the country’s telecommunications sector noting then that a “complicated licensing regime requirements create artificial barriers to new entrants in the market and hinders effective competition.”
The Vice Chairman of the NCC, Engr Ernest Ndukwe, had described the unified license, as a tool allowing competing telecom operators and service providers to rapidly deploy new services to meet demand without having to seek new licenses.
In the published declaration of its intention to begin the unified licensing regime, the NCC had stated that: “The market shall be opened up by adopting a unified licensing regime which shall allow existing fixed wireless and mobile licensees to provide both services subject to geographical/regional limitations contained in their licenses;
“For the post exclusivity period, all wireless licenses shall not be segmented in terms of mobile and fixed services categories. Once a spectrum is allocated, licensees shall be free to offer voice, data or multimedia services as they deem fit and;
“All active wireless licenses issued prior to the expiration of the exclusivity period shall be amended accordingly.”
Though a total of eight companies have been granted unified licenses, its take-off has been relatively slow.
The new regime effectively removes all segmentation in terms of mobile and fixed services categories and enables a service provider to offer voice, data or multimedia services once a spectrum is allocated.

Nixx_900816

January 12th, 2007, 08:44 PM

[size=4]In Africa as a whole, Tunisia was the most competitive economy, ranked 30 in this year’s sample of 125 countries globally, up seven places from last year, followed by South Africa at rank 45, a drop from position 40 last year, and the Indian Ocean island of Mauritius at position 55.

does dis mean tunisia's economy is bigga or betta dan SA's?? cuz dats impossible...

Matthias Offodile

January 12th, 2007, 10:37 PM

does dis mean tunisia's economy is bigga or betta dan SA's?? cuz dats impossible...

Never mind, this baffled me in thet report as well. Tunisia is a good performer but it is lags behind SA, no doubt about that! It is weird to compare both countries!

For example, take Botswana which is Africa´s top performer, nevertheless it seems to be of little importance on an Africa scale! (When you talk of sub-saharan Africa, business minds are firmly fixed on South Africa, Nigeria, Kenya, Angola, Sudan etc. and not on "minnows" like Botswana, Mauritius, Gabon, Seychelles, Réunion Island or whatever) FDI inflows to Botswana - despite its shiny status - are still relatively low and its economy/economic potential is relatively small!
Nigeria´s bashing goes on and on (our country should have collapsed about more than 30 years ago, if one had believed all those tons of horror reports on Nigeria´s "impending collapse" , but we still exist and we will continue to exist because those people who make the rankings do not take into account the quintessential and unique "Nigerian factor" ) :lol: "Surprisngly", foreign direct investment was the highest in Nigeria in 2006 for decades and planes to Lagos are all filled to the brim and hopelessly over-booked for months in advance. Moreover, everyone knows that Nigeria´s infrastructure has considerably improved if compared to some years back, but they say that it has even deteriorated (have those people ever shifted their ass around to judge matters on the ground or what?) , :hahano: more international airlines are coming in , local private initiatives are mushrooming and not abating despite the myriads of problems we face....
Due to those low rankings, Nigeria should already be wipped off the earth´s surface but the opposite is the case, investors still keep pouring in more and more instead of less and less. (for example Germany will open its new Chamber of Commerce this year due to the growing interest of German businesspeople in Nigeria, it will be the second in sub-saharan Africa after South Africa). This is in contraditcion to the low ranking Nigeria receives, if everything is so fucked up, why would they do it then? Why is there no German Chamber of Commerce in sparkling Botswana?
In short, those rankings are all very double-edged, contradictory, one-sided highly superficial and questional (and they should NOT be taken at face value)...they only partly mirror the reality on the ground :lol:

PS: Which emerging market countries do really shape Asia´s economic might? Is that Brunei or are that India and China? Indonesia is despite its problems the country which has the largest economy and harbours the biggest potential in South East Asia....

ahmed007

January 13th, 2007, 05:11 AM

^^ i agree with you nigeria, sudan, ethiopia, and egypt all need to rise if africa was to become a strong economic preformers. When large countries grow smaller neighboring countries tend to grow with them. A very good example is SA and large EU nations such as France and Germany and Britian whom are the real pushers of the EU economy if they don't preform well so won't most of the continent.

oh yeah, i expect sudan to get the most FDI in africa next year. In 2006 we ranked 3rd in sub- saharan africa with almost 5 billion dollars, and that was up from 2.3 billions in 2005. i expect FDI to be around 8-9 billions especially if the darfur crisis is solved

SE9

January 13th, 2007, 10:43 AM

does dis mean tunisia's economy is bigga or betta dan SA's?? cuz dats impossible...

It dosen't mean its bigger.

Switzerland was ranked number 1, followed by Scandinavian countries, although they are not the biggest economies in the world.

The article says the rank is for "Global Competitiveness"...

skipperBill

January 14th, 2007, 05:07 AM

Good news from the continents' east coast.....

Bank of Sudan chief sees 2007 growth up to 13 pct

Jan 10, 2007 (KHARTOUM) — Sudan hopes to achieve growth rates of up to 13 percent in 2007 as a new national currency integrates the northern and southern areas of the economy after a 2005 accord ended Africa’s longest civil war in the south.

In an interview on Wednesday, central bank governor Sabir Mohamed Hassan also said the currency’s appreciation against the dollar was worrying and the central bank was considering taking measures to address the rise.

"We are changing the currency and taking this opportunity to introduce currency reform into the system," he said.

As from Wednesday the Sudanese pound will begin to replace the dinar, at a rate of 1 pound to 100 dinar.

"We will be integrating the economy of the south into the national economy...speeding up economic activity in the south and process of economic growth," he added.

During the north-south civil war most of the south did not use the dinar, introduced in 1992, but used an older Sudanese currency or foreign currencies.

Sudan’s average growth rate over the past 10 years was 7 percent in real terms.

The central bank had predicted real growth of 10 percent in 2007, but Hassan said with the new currency growth in 2007 could reach the 13 percent forecast by the International Monetary Fund (IMF).

Hassan said growth was due to the liberalisation since 1996 of the former command economy and to the 330,000 barrels per day of crude oil which Sudan produces.

"Political stability and the right policies and oil coming on stream ... have resulted in the introduction of huge FDI (foreign direct investment)", he said.

Hassan said some economists warned the new currency may result in some price increases as traders round up prices.

"But I hope it will be only a one-round increase and not inflation in that sense."

Sudan uses an Islamic banking system in the north so has no interest rates as such, but Hassan said the cost of finance would increase if inflation rose.

Inflation averaged at 8 percent in 2005 and 2006, but Hassan said in the last three months of 2006 there were some signs it was running as high as 10 percent.

This was countered by lower inflation at the beginning of the year.

"With the present coordination we have with the central bank and the ministry of finance we will maintain inflation in single digits and that is our objective and prediction (for 2007)," he said.

Hassan said about two years ago, on the recommendation of the IMF, the central bank stopped supporting the dollar in the market against the dinar by being the buyer of last resort.

Since then the dinar has appreciated from 260 to the dollar in 2004 to almost 200 to the dollar in 2006.

"The board of directors of the central bank are looking into the possibility of going back to the old policy of buyer of last resort," he said.

Sudanese exporters have suffered with the appreciation of the dinar against the dollar but Hassan said they needed to become more efficient to compete in international markets.

But foreign investors were also concerned, Hassan said.

The governor said a huge drawback to Sudan’s growth was the external debt of around $27 billion.

Sudan has met all the IMF and World Bank requirements to qualify for debt relief as many developing countries have, but for political reasons no relief has come.

Almost 50 percent of Sudan’s external debt is accumulated interest or penalties and 90-95 percent of it is overdue.

Ongoing violence in Sudan’s western Darfur region and U.S. sanctions are seen as reasons why it has not been given debt relief.

"The debt size is actually depriving us from getting access to international financial markets... we are completely deprived of any concessional resources ...either bilateral or from multilateral development institutions," Hassan said.

($1 - 201 Sudanese dinar)

(Reuters via SudanTribune (http://www.sudantribune.com/spip.php?article19743))

Matthias Offodile

January 15th, 2007, 02:55 PM

Nigeria´s Globacom targets 30 million subscriber base

Globacom, Nigeria’s second national carrier, has projected that it will achieve not less 30 million subsciber base by end-2007.

MIKE OCHONMA
January 15th, 2007

The company says about 10.5 million Nigerians are enjoying its range of services, and with the continuing expansion of services to 18 million, plans are under way to extend its services to remote towns and villages.

Jamiel Mohammed, Globacom’s chief operating officer, disclosed this weekend in Lagos when the company launched another marketing direction and brand identity.

He said three years ago when Globacom entered into the market rather lately with the philosophy of delivering cutting-edge, wireless telephone services, it was faced with challenges, but Nigerians demonstrated faith and confidence in the company’s activities. Such response, he said, acted as the tonic that fired Glo to higher pedestal.

Mohammed noted that in spite of teething problems at inception, it was able to satisfy the yearnings and aspirations of many customers by revolutionalising the GSM landscape.

Such feat, he said, was as a result of its shift in approach, adoption of innovative and customer-centric products, nourished with the introduction of various services that Nigerians were proud to identify with.

The new marketing campaign and brand identity project tagged: "rule your world", according to Mohammed, represents "our new enterprise spirit, the desire to aspire to higher levels and a yearning that is strategically aimed at conquering limitations. What we are witnessing today is another approach in exceeding customer expectations."

He expressed appreciation on behalf of Globacom for the love and continous support shown by its teeming subcribers for the brand, and also praised its individual and corporate technical partners.

Mike Adenuga, chairman/CEO, Globacom, in a recorded speech played before the audience in absentia, recalled that some three years ago Glo started with a dream and a vision of improving and empowering Nigerians.

The vision, he remarked, was that getting Nigerians of all strata to talk to themselves and to the rest of the world. A vision of solving problems and setting opportunities, a vision of unlocking the nation’s true potentials and enabling our people to be their very best.

Adenuga said that three years ago, this vision became a reality. We launched our brand into a very highly competitive market with some players from beyond our shores. Against all odds and predictions, we had been successful beyond the wildest dreams.

Matthias Offodile

January 15th, 2007, 02:59 PM

Market capitalization to hit $70bn this year

Market capitalization on the Nigerian Stock Exchange is to grow by 100 percent from $35 billion in 2006 to $70-billion by end-year, Chukwuma Soludo , governor of the Central Bank of Nigeria, has said.

Godfrey Obioma
January 15th, 2007

Soludo recently disclosed this having reviewed developments in the macro-economic, monetary and financial sectors of the country. He also projected that the indicator for measuring the total value of stock on the exchange would increase to $100-billion in 2008.

He praised the growth already recorded at the exchange and attributed this to the consolidation exercise, which compelled banks to access the capital market in their efforts to meet the CBN recapitalization programme . The CBN governor confirmed that the market was largely driven by the banking sector. Analysts believe banks’ bullish run is due to massive liquidity and investors’ confidence in the stocks of these financial institutions.

Interest in the stock market has been bolstered by public offerings, which followed the consolidation exercise. Many of these banks had to comb the nooks and crannies of the country for funds. In the process , many Nigerians developed interest in the market.

In 2006 , the market recorded appreciable growth with market capitalization growing from N2.598-trillion January 13 2006 to N4.387-trillion January 9 2007. The All-share index increased from 31,632.54 basis points to 33,163.94 points January 9 2007.

Cited as some of the reasons for the growth are the low returns from the money market, the relative rise in the returns on investment in the long end of the financial system, the good performances of companies due to the improving economic environment, and the injection of pension funds into the capital market.

Matthias Offodile

January 15th, 2007, 03:49 PM

Nigeria, Rusia inaugurate council to grow trade

By DENNIS MERNYI, Abuja
Monday, January 15, 2007

Trade negotiations between the federal government of Nigeria and Russia received a tremendous boost in Abuja with the inauguration of a business council for the two countries aimed at encouraging their economic and business activities.

The council known as Nigeria- Russia Business Council, according to the Minister of Commerce, Dr. Aliyu Modibbo Umar who performed the inauguration on behalf of the government of Nigeria, it is set to develop trade, economic and scientific and technical ties between the two countries.

He also said the council would help the diversification of arrangements in both exports and imports activities and promotion of large investment and infrastructural projects.

The Council was formed at the meeting between Nigeria's President, Chief Olusegun Obasanjo and thePresident of Russia, Mr Vladmir Putin at the United Nations Summit in New York, USA in September 2005.
Part of the core purpose for the council was the establishment of a centre for corporation on industry, engineering, trade and information technology in Abuja, Nigeria's capital and Moscow in Russia.
Dr. Modibbo further explained that the two councils are expected to operate under a joint patronage of the presidents of the two countries and to be presided over by two co- chairmen representing both countries.

He, however, noted that there already exist three Biliteral Trade Agreements between Nigeria and Russia and emphasised that the inauguration of the business council for the country was another way of implementing the provisions of the agreement and to expand the areas of the economic cooperation including investment and technology.

The council has Mr. Goddie Ibru, to chair the Nigerian Business Council while Ambassador Ara Abrahaian, a Russian citizen, as well as an international business man appoited by president Putin to chair the Russian council.

In a remark, the president Nigeria- Russia Business Council, Mr. Ibru acknowledged athat the council when fully established would increase trade investment between the two countries and would facilitate quick reduction of poverty, create job opportunities and wealth among the people of the nations.

Ibru also stated that the Centre for Cooperation to be established in Moscow and Abuja as an economic facilitator offer services typical of any moder information resource and exchange centre for the generation and dissemination of current economic and business data on Nigeria and Russia.
He said potential business organisations will have at their finger tips all data and information required to translate a business idea to profitable business in the two countries soon as the centres becomes operational.

adebayoa

January 16th, 2007, 03:59 PM

Firm Plans $25bn Marine Project in Nigeria
01.14.2007

A $25 billion marine project which include a modern deep water port, modular fabrication yard, manufacturing of containers, tabular steel mills, dry and graving docks is being proposed by Dersko Marine Ltd and is expected to commence in March.
The project which would be in four phases when completed, will reduce capital flight for Nigeria to the tune of $18 billion and will employ over 450,000 Nigerians.
This was revealed during a presentation made by the company to the Minister of Transport, Mallam Mohammed Habib Aliyu weekend in Abuja.
Explaining further, Engineer Weizman Atem-ubagham, the Managing Director of the company stated that the project, which would commence in March 2007, would be completed by 2015 and would be done in phases.
Out of the $25 billion budgeted for the project, the first phase, he maintained would cost $12 billion while the deep water port would cost $1.6 billion.
He added further that the phase two would cost $11 billion while the phase three is expected to cost $2 billion.
He stressed that when completed, the project would in addition to enhancing transfer of technology, reduce capital flight of multi-national oil operators.
Atemubaghan therefore, solicited that the Federal Government should encourage the project by granting it free trade status, aid in land acquisition as well as grant concessional rates for dredging from NIWA.
The company’s boss also asked that the company be involved in the proposed 7 Floating Production, Storage and Offloading (FPSO) vessels being proposed between 2007 and 2015 time frame.
Mallam Aliyu expressed hope that the project would take off as schedule and promised Federal Government’s assistance to actualise the project.

This Day News (http://www.thisdayonline.com/nview.php?id=68050&printer_friendly=1)

Matthias Offodile

January 19th, 2007, 12:54 PM

Nigeria´s Globacom plans mobile service in Ghana

January 19th, 2007

Nigeria’s second national operator (SNO), Globacom Limited is putting finishing touches to plans to roll out commercial mobile service in Ghana.

Technology Times checks have revealed that Nigeria plans to explore the entire West African mobile beginning with Ghana where there are four mobile operators and another new entrant billed to go this year.

While the SNO had Tuesday denied that it had opened talks to buy up Ghana’s new mobile market entrant, Western Telesystems (WESTEL) Ghana Limited, it has been established authoritatively that Globacom hopes to acquire stakes in Ghana’s telecoms market this year.

Details of the talks are still very fluid for now but plans are on the table by Globacom to spin off a mobile service in Ghana very soon, Technology Times sources confirmed.

Nigeria´s Globalcom had last year announced plans to acquire stakes in an Indian operator as part of its plans to become an international player and make the Asian nation a hub for its human capital needs.

Globacom’s spokesman, Bode Opeseitan, told Technology Times on phone from Accra, Ghana Tuesday where the company is also putting finishing touches to host the CAF African Footballer of The Year Awards that the SNO has not opened talks with the speculated Ghanaian company at all dismissing media reports of purported acquisition talks with Westel.

He cites the reports as "speculative" while keeping the SNO’s plans close to his chest.

Media reports in Ghana have cited that "speculations" are rife that Globacom is set to take over the operations of Westel in Ghana.

"That is not true", says Opeseitan, who notes that he had upon arrival in Accra heard similar report.

"The truth of it is that they are mere speculations. We have never met or discussed with them at all," he adds citing that Westel, the last entrant into the country mobile market, would not be an attractive offer if at all such a plan was being considered by the Nigerian SNO.

Ghana’s CITI FM in a report quotes sources saying that Globacom intends to take over Westel to inject the needed cash and resources ahead plans to roll out its commercial mobile service in Ghana.

Already, Westel is in dire need of cash after it got a mobile licence from the National Communications Authority (NCA) last year bringing to five the number of players in the Ghanaian mobile landscape.

The Ghanaian daily newspaper, Graphic Ghana, reports that WESTEL is the second state-owned company alongside Ghana Telecom granted wireless concession. WESTEL was awarded the second national operator’s licence in 1997 and granted a five-year duopoly on basic telecoms services alongside incumbent Ghana Telecom. However, it has been blighted by bureaucratic disagreements and a lack of investment, and has since not been able to meet its targets of rolling out up to 100,000 fixed lines across the country.

According to the report, MTN has shown interest in Westel in the past but the absence of a mobile licence would almost certainly have been a stumbling block.

At the last count in June 2006 the number of mobile subscribers stood at over 3.34 million, up from around 2.65 million at the start of the year and a rise of 82.8 percent on the 1.45 million recorded at the end of 2004. By July 1 2006, GSM operator Spacefon Areeba, backed by Lebanon-based Investcom Holdings (now bought by MTN), had 2.02 million subscribers, putting it ahead of Millicom International Cellular’s (MIC’s) Mobitel unit, the oldest of all the providers, which had 737,749 users to its Tigo-branded service. State-owned national PTO Ghana Telecom (GT) had an estimated 450,000 subscribers to its GT-OneTouch GSM network, while Kasapa Telecom, the country’s sole CDMA operator, had around 135,300, up from 57,100 at the start of the year.

According to statistics from the Nigerian telecoms regulator, the Nigerian Communications Commission (NCC), the telecoms market in Nigeria has recorded a total of 35, 949,894 connected lines at the end of August 2006.

Matthias Offodile

January 22nd, 2007, 11:22 PM

Indian firm to invest $1b in power, fertilizer production

January 22nd, 2007

An Indian company is set to invest $1-billion in the country’s power and agricultural sectors with a promise to revolutionize the two segments towards Nigeria’s economic well being.

IKECHUKWU EZE

The bid by Krishak Bharati Co-operative Limited (KRIBHCO Company), India’s foremost power and fertilizer giant is an ambitious proposition in areas that had not attracted major foreign interest as the oil and gas industry.

BusinessDay gathered that the company had sent many delegations to the country since October last year to conduct feasibility studies on the logistics of establishing two plants in the country for power and fertilizer production.

A source close to the company said the proposed power plant would generate up to about 30, 000 kilowatts, enough to meet the nation’s immediate energy needs when fed into the existing local generation.

It was further gathered that the power plant would be located in Calabar, Cross River State capital, because of access to cheaper gas.

An initial study had ruled out the possibility of building the plant at Lekki in Lagos "because it did not make economic sense to build a plant where you have to pay up to three dollars for a unit of gas when you can get the same product for about half the price in another location with cheaper gas resources."

Sources close to KRIBHCO headquarters in India said the planned fertilizer factory would be the biggest in Africa. It would not only satisfy local needs of farmers but would also establish the country as a big-time exporter of fertilizer.

"We are confident that the 50 percent of the volume of fertilizer which would be produced by the company would be enough to satisfy local agricultural needs while the remaining 50 percent would be exported. That is why we would prefer that the plant be built at a location with access to the sea."

A delegation from the company led by its managing director, B. D. Sinha, had in October last year met with officials from the presidency, agriculture and energy ministries as well as top officials of the Nigerian National Petroleum Corporation.

The delegation was forced to shelve its scheduled meeting with the managing director of Nigerian Liquefied Natural Gas (LNG) as a result of Lagos frustrating transport situation. "After spending three hours in Lagos traffic to no avail, the delegation was forced to abandon the appointment, but the company has already written the LNG boss to explain the situation," the source said.

The delegation had panned to discuss with the LNG officials the prospects of buying large quantities of gas for the planned plants and their factories in India.

nai guy

January 23rd, 2007, 03:43 AM

Kenya to assemble cheaper computers

Kenya to assemble cheaper computers

Story by MWANIKI WAHOME
Publication Date: 1/23/2007
Kenyans will soon have a cheaper, locally assembled computer.

Three local universities and a tertiary institution yesterday signed a memorandum of understanding that will result in Kenya joining nations assembling computers.

The three —University of Nairobi, Jomo Kenyatta University of Agriculture and Technology and Strathmore — will act as incubators of the project. Kenya Technical Training College (KCCT) will be the implementing agency. KTTC has been placed under Communications Commission of Kenya (CCK). The deal was signed at Ministry of Information and Communications headquarters at Teleposta Towers.

The project that follows the Taiwan model is jointly funded by CCK and Safaricom Foundation to the tune of Sh20 million split equally.

Communications permanent secretary Bitange Ndemo said the institutions would do research for the components and pass over the findings to local assemblers.

Already, he said, three firms Lenovo, Mecer and Sahara had been appointed to assemble the first 50 computers each, which will be on display at an exhibition to be held at Kenyatta International Conference Centre on February 7.

“We narrowed on these three and after six months we shall drop those who do not produce and meet our specifications,’’ Dr Ndemo said.

He said the computers, to be called Madaraka, are projected to cost $450 (Sh 31,500) a piece.

The Government removed duties and value added tax (VAT) on imported computers and parts to encourage more Kenyans to embrace Information Communication Technology.

Dr Ndemo said the universities would train manpower that would be involved in assembling. Certification will be done before the computers are released to the market.

“The model will be like that of Taiwan where small enterprises are encouraged to produce and certification given before exports,” Dr Ndemo said.

CCK commissioner general John Waweru said apart from software development the project would grow local expertise to enable the country cope with changes in the ICT sector.

AfricanWarrior

January 23rd, 2007, 06:09 PM

Published: 16-JAN-07
Dakar - The Abidjan-based West African stock exchange, BRVM, closed trading Monday, with the Composite Index at 112.82 points and the 10-Index at 131.02 points, both unchanged from last Friday's levels.
The value of transactions Monday was 13.40 million CFA francs ($26 000) against the 31.10 million ($61 000) reported last session.
Trading involved six of the 40 companies listed on the stock exchange, with the number of traded securities at 5,462.
Eleven of the 20 accredited brokerage firms, including five from outside Cote d'Ivoire, were involved in the transactions.
Stock market capitalization was 2,070,113,043,605 CFA francs ($4bn), while that for the bond market rose to 406,768,173,900 CFA francs (8bn), with 90 CEB 6.50 percent 2004-2011 bonds sold for 900,000 CFA francs ($1 200).-panapress

Matthias Offodile

January 23rd, 2007, 08:11 PM

Hydrocarbons boost Algerian exports

Published: 23-JAN-07

Algiers - Algeria's gas and oil reserves remain the backbone of its economy, official figures showed on Sunday, boosting its trade surplus 24.1 percent to $31.8bn in 2006.

Exports totalled $52.8bn, up 14.8 percent, with hydrocarbons accounting for 98.0 percent or $51.8bn of the total, a rise of 14.8 percent on the back of higher world oil prices, the statistics office said.

The United States was Algeria's biggest customer, buying $14.0bn worth of exports followed by Italy with $9.0bn and Spain with $5.5bn.

Algeria imported $21.0bn worth of goods, an increase of 3.2 percent, with former colonial power France the biggest supplier. Sapa-AFP

Mwafrika

January 24th, 2007, 10:10 PM

Safaricom to end all East Africa roaming charges

By John Oyuke

Say goodbye to roaming charges on Safaricom lines used in Uganda and Tanzania: Kenya’s leading mobile operator has partnered with MTN Uganda and Vodacom Tanzania to provide a joint network for subscribers within East Africa.

The network will be formally launched on February 1 in Kampala. Subscribers will then be able to use their Safaricom lines in the neighbouring countries for no extra cost.

The partnership between MTN, Vodacom and Safaricom will see the three offer a service to rival Celtel’s ‘One Network’. Celtel, which operates in all three countries, launched a seamless cross border network in September 2006.

Ugandan media reports quote Mr Eric van Veen, MTN’s chief commercial officer, saying his firm had already signed Memorandums of Understanding (MoUs) with Safaricom and Vodacom Tanzania. Safaricom’s top executives declined to elaborate on the deal ahead of the launch.

Meanwhile, the Kenyan mobile phone service provider has launched a new promotion for its customers.

Chief Executive, Mr Michael Joseph said the new ‘Bonga’ programme would reward all Safaricom subscribers with points based on their usage and lifetime on the network. The points, he said, would be kept in customers’ accounts and used to win various prizes, including airtime and other merchandise.

"For every Sh10 spent on voice calls, SMS or data, subscribers will get a minimum of one Bonga point," he said.

To take part in the reward programme, Safaricom subscribers are required to enrol by sending a free SMS with the word ‘Bonga’ to 125.

Source Eastandard - http://www.eastandard.net/hm_news/news.php?articleid=1143963974

SE9

January 26th, 2007, 10:23 PM

Busy Dar port loses out to Mombasa

Story by ABDULSAMAD ALI
Publication Date: 1/26/2007

The number of ships diverted to Mombasa from Dar es Salaam is on the increase due to massive congestion at the Tanzanian commercial capital.

Shipping lines switched to Mombasa after the waiting time for clearance in Dar was increased.

Sources said container ships at the Tanzanian port have been waiting for between six and 10 days to discharge cargo since last November, “but the situation is getting out of hand”.

The sources said Tanzania International Container Terminal Services (TICTS), a privately owned company that runs the Dar container terminal, has no more stacking space, partly due to slow off-take of containers by owners.

The terminal has a stacking capacity of about 6,000 containers compared to Mombasa’s 13,000.

By early this week, there were at least seven vessels waiting at the Dar’s outer anchorage.

Shippers are said to have issued a Vessel Delay Surcharge (VDS) to the port management following the recurring problem. A surcharge would cost the Tanzanian port between $10,000 ((Sh700,000) and $15,000 (Sh1 million) a day.

The fee is imposed on a port when the waiting period is longer than expected and its objective is to compensate the ship for the lost time.

The Kenya Ports Authority (KPA) harbour and operations manager, Mr Twalib Khamis, confirmed that they were handling the ships that had been destined for Dar es Salaam, besides their normal business.

“Of late, we have been handling extra ships that were meant for Tanzania. We are coping very well because we have enough stacking capacity and fast equipment,” he said.

Mr Khamis could not, however, give the number of ships diverted to Mombasa, which had 9,858 containers against an average of 7,000.

He said the containers would be stored at the terminal and later transported to Tanzania either by sea or road.

The main port at Dar es Salaam has eight deep-water berths for general cargo, three for container vessels, eight anchorages, a grain terminal, an oil jetty and offshore mooring for super tankers.

In recent years, around 25 per cent of the cargo passing through Tanzanian ports has been destined for, or has come from, neighbouring countries, notably Zambia, Burundi, Rwanda, Uganda and the Democratic Republic of Congo (DRC).

Efforts to get a comment from the Tanzanian Harbours Authority (THA) were unsuccessful.

Matthias Offodile

January 26th, 2007, 10:42 PM

Chevron and Sonangol Make Another Mega Oil Discovery In Angola's Deepwater Block 14

Chevron Corporation Friday, January 26, 2007

Chevron says its subsidiary, Cabinda Gulf Oil Company Limited (CABGOC), and partners achieved a highly significant oil discovery in deepwater Block 14, offshore Angola.

The discovery well, Lucapa-1, was drilled in October 2006 in 3,940 feet (1,201 meters) of water to a total vertical depth of 10,958 feet (3,340 meters) and encountered more than 280 net feet (85 net meters) of oil in Miocene-age sands. The well was tested in November at commercial rates from high- permeability sand in the main target. The discovery will be followed by further drilling in addition to geologic and engineering studies to appraise the field and assess its potential reserves.

The Lucapa discovery is the 10th exploration discovery made in Block 14 since 1997.

"This important discovery underscores the value of focusing Chevron's exploration program on high-impact opportunities," said John Watson, president of Chevron International Exploration and Production. "Our continued exploratory success in Angola, combined with our commitment to developing these resources, offers great prospect for increasing Angola's oil-producing capacity."

Jim Blackwell, managing director of the Southern Africa Strategic Business Unit, said, "The Lucapa discovery further confirms our confidence in the world-class hydrocarbon resources in Angola. We look forward to continuing the work needed to commercialize this newly discovered resource base, which is important to Chevron's growth strategy."

Chevron is among the largest producers of energy in Angola, and is operator in Blocks 0 and 14, which generate more than 500,000 barrels of oil-equivalent daily gross production. Among the major projects under development is the Benguela Belize-Lobito Tomboco (BBLT) project in Block 14, which started-up in January 2006. This $2.3 billion project, when fully developed, will produce an estimated total daily maximum of 200,000 barrels of crude oil in 2008. In June 2006, Chevron achieved first oil from the Landana North reservoir in the Tombua-Landana development area of Block 14 by producing through the BBLT facility. When fully developed, Tombua-Landana is expected to achieve peak production of approximately 100,000 barrels of crude oil per day by 2010 through its own facility.

skipperBill

January 27th, 2007, 02:27 AM

UAE Firm, Ethiopian Province to Build "Tourist City"

BuaNews (Tshwane)
January 26, 2007
Addis Ababa, Ethiopia
http://www.europa.eu.int/comm/development/body/country/images/et_tn.jpg

Oromia region in Ethiopia and the Indus Investment company of the United Arab Emirates (UAE), signed an agreement Thursday, to construct a 1.47 billion US dollar "Tourist City" in Oromia.

Chief of the Oromia State Abadula Gemeda and Indus Investment's chief executive officer, Ahmed Hilal Al Falahi, signed the agreement, set to boost development and employ about 12 000 people.

In terms of the agreement, the city, the first of its kind in the country, would be constructed on 38,197 hectares of land in the Abiyata Shalla area.

The city would have an airport, a school, a business centre and hotels, among others.

Mr Abadula said the planned city would significantly contribute to the economic development of the region and the country as a whole.

Various incentives have been provided to Insud Investment, he said, adding that the company should launch construction immediately.

Following the signing, Mr Al Falahi said the company decided to invest in Ethiopia because of the encouraging investment opportunities there.

The country is receiving positive worldwide attention as it hosts Africa Union Heads of State Summit and related events in the capital, Addis Ababa from this week until 30 January.

Delegates from across the continent global organisations including the United Nations and world football governing body FIFA have converged on the city.

African minister of foreign affairs are currently meeting to map out and discuss issues to be tabled at the 8th AU Heads of State Summit next week, under the theme "Science, Technology and Research and Climate Change."

UN Secretary General Ban ki-Moon is to address the African leaders on issues of continental and global importance, while FIFA President Sepp Blatter will address the meeting in connection with the launch of 2007 as the African year of football.

The declaration to make 2007 an international Year of African Football was taken in Sudan at last year's summit.

The summit will also elect the new chair of the AU and Bureaus of the Assembly.

http://nazret.com/blog/index.php?title=uae_firm_ethiopian_province_to_build_tou&more=1&c=1&tb=1&pb=1

You are to blame

January 28th, 2007, 05:34 AM

GDP growth was 5.7 in Africa for 2006. Up from 5.2 in 2005

Africa: High Rating for Africa's Economic Status
BuaNews (Tshwane)

January 26, 2007

Themba Gadebe
Addis Ababa

African economies continue to sustain their growth momentum, which has built up in recent years, a United Nations official told the African Union's Executive Council yesterday.

The UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Abdoulie Janneh to the African minister of foreign affairs who make up the council, that the overall Gross Domestic Product (GDP) for 2006 increased by 5.7 percent from 5.2 percent in 2005.

"This momentum continues to be underpinned by the improvement in macroeconomic management in many countries and the strong global demand for key African export commodities that resulted in high export prices," Mr Janneh said, adding the GDP was expected to grow by at least 5.7 percent again this year.

The commodities in question are crude oil, metals and minerals.

The UN expert said despite this trend, evidence showed that the continent was unlikely to meet its Millennium Development Goals (MDG) by 2015 unless new approaches were adopted.

The eight MDGs were agreed upon in the Millennium Decleration by UN member states in 2000 with a target date of 2015.

Some of the MDGs aims are to:

* eradicate extreme hunger;

* achieve universal primary education;

* promote gender equality and empower women;

* reduce child mortality by two thirds;

* improve maternal health;

* combat HIV and AIDS and other diseases;

* ensure that environmental sustainability and develop a global partnership for development.

In order to achieve these goals, a conference involving the participation of Ministers of Finance, Planning and Economic Development would be held from March 29, to April 3 2007.

"This conference is devoted to the theme of accelerating Africa's growth and development to meet the Millennium Development Goals: Emerging challenges and the Way Forward," he said.

To further enable growth, Mr Janneh called for the promotion of intra-African trade, the fair utilisation of Africa's resources and the provision of adequate infrastructure.

He urged for the empowerment of women and the youth, as the continent would benefit from using the talent and skills that abound here.

Mr Janneh told the delegation that he had discussed the stalled Doha Round of trade talks with the Director-General of the World Trade Organisation (WTO), Pascal Lamy.

"We agreed on the need for speedy resumption of the talks as Africa stands to gain the most from a fair and equitable global trade system," he said.

The Doha talks collapsed last year after Europe and the United States failed to agree on cutting agricultural tariffs and subsidies for their own producers.

Last year the South African Government cautioned that further delays to resume the negotiations would be a source of growing instability in the global trading system.

It viewed the suspension of the talks as a "serious setback" for multilateral rule-making.

Mr Janneh further revealed that a forum known as a "Big Table" is to be organised with the African Development Bank, immediately after the AU Heads of State Summit, to discuss the continent's natural resources.

The meeting is expected to take place next week under the theme: Managing Africa's Natural Resources for Growth and Poverty Reduction.

Mr Janneh said this year's AU Heads of State Summit, under the theme "Science, Technology and Research and Climate Change" reflected elements vital to Africa's development.

He said innovations in these fields had proved to be the driving force for economic growth, and added that there was strong a correlation between a country's scientific and technological status and its economic performance and wealth.

"This is as true for [countries in] Africa as it is and has been for all other parts of the world," he said, going on to urge African countries to increase their investment in science and technology to accelerate development.

He advised the Executive Council that Africa needed to undertake major science and technological initiatives to generate, improve skills and deploy large numbers of engineers and technicians.

"We also need a strong linkage between technology based industries, academia and governments, so that technologies appropriate to national needs are developed," the UN expert said, adding that promoting public-private partnerships in modern science and technology was essential.

Tbite

January 28th, 2007, 08:27 AM

Beck's Beer production begins in Nigeria
•InBev Partners Champion Breweries

By Tunmise Adekunle, 01.25.2007

Friday, January 26, 2007

After close to 60 years of importing Beck's lager beer into the Nigerian market and among the other 120 worldwide countries where it is popular, Beck's has begun production in Nigeria courtesy of an exclusive partnership to brew, sell and distribute Beck's in Nigeria between the world's largest brewer in volume, InBev and Champion Breweries Nigeria Plc.

To this end, managers of Champion Breweries have said that they would be distributing Beck's through Chellarams retail outlets, Chimnex Nigeria Limited, in addition to Champion Breweries traditional distribution routes.

Beck's beer has been recognized worldwide as a premium beer full of character, consistency, and uncompromising quality, with a taste that is pure, crisp and fresh due to the fact that the beer follows the strict Reinheitsgebot, the German Purity Law of 1516, which is said to be the oldest food regulation in the world. Beck's is most famous for its Pilsener lager beer consisting of: two row spring barley from the south of England; a special strain of yeast, ice-age glacier water from the "Rotenburger Rinne," plus hops from the famous "Hallertau Hop Gardens" in southern Germany.

Beck's, which for many years has been brewed under license in Namibia, prior to World War I when Namibia was a German colony, is a brand of the brewery Brauerei Beck & Co KG in the north German city of Bremen owned by local families until February 2002, when it was then sold to Interbrew (now InBev) for 3.5 billion DM (1.8 billion euros, 2.1 billion U.S. dollars). Beck's label, a key, is the mirror image of the coat of arms of Bremen. Since Beck's is located on the river of a port city, Bremen, lying on the North German plain connected to the sea by the Weser River, it was easy to ship out its beer to the world at large and become an international beer powerhouse. Beck & Co. has always been a strong exporter, and the beer thus has a taste more akin to other internationally marketed brands than to mainstream German beers.

Prior to the granting of the license contract and with stringent quality conditions to Champion Breweries in Nigeria, Beck's the number one German selling beer in the world with truly international reputation and strong market position as a premium lager, had in the past, consistently shown strong sales volumes in Nigeria, which availability was solely dependent on importation. With the latest development, Nigerian consumers have been promised an exclusive premium brand in the Champion Breweries portfolio as Nigeria now joins four other countries worldwide that the exclusive privilege of brewing the brand with InBev's local partners. Other countries that produce Beck's under a license contract and with such stringent quality conditions are: Algeria, Australia, Turkey and Mauritius.

Speaking at the media launch of Beck's in Lagos, the Area Manager Licenses for Inbev, Mr. Erwin Dhelft, described Beck's production in Nigeria as exciting, adding that: "our partnership with Champion Breweries will provide us access to one of the best distribution networks and sales forces in Nigeria".

Chairman of Sona Group Nigeria, Mr. AK Mirchandani stated that his group is enthusiastic about its partnership with InBev. "The addition of Beck's, one of the global flagship brands to our portfolio of beverages gives us an even greater opportunity to increase consumption occasions, relevance to our customers, and more efficiently use our assets".

Thompson Owoka, the executive director, marketing in Champion breweries, said that over N2 billion has been invested by Champion breweries between the time it launched its Malt brand and the time it is debuting production of Beck's in Nigeria. Owoka expressed confidence that the Beck's production in Nigeria would bring profitability to the company, "having done our marketing strategy right".

Owoka, whose experience in the brewery industry spans 24 years, added that pricing of Beck's is very competitive with any premium lager in Nigeria, aside that "Champion Breweries is fully prepared to take Beck's to every nooks and crannies of Nigeria, in a country with a population of over 140 million and an estimated total consumption of 12 hectolitres of beer, malt, and non-alcoholic beer".

Based in Uyo, Akwa Ibom State, Champion Breweries Plc was incorporated as a Private Limited Liability Company on the 31st of July, 1974 with the name South East Breweries Limited. Some other records has it that Champion Breweries, presently managed by Sona Breweries, came up on 24th of November 1974, when the then South Eastern State of Nigeria signed an agreement with Messrs. Haase Brauerie GMBH of Humbury ("Technical Partners") for the supply and construction of a turnkey Brewery in Uyo with a capacity of 150,000 hectoliters. The foundation stone of the Brewery was laid on 19th of March, 1975. On the 11th of December 1976, the Brewery was officially commissioned and its products, Champion Lager Beer launched into the market successfully with initial capacity of 150,000 hectoliters per annum.

The company's name was changed from South East Breweries Limited to Cross River Breweries Limited and thereafter to Champion Breweries Limited. The latter name, Champion Breweries Limited was changed to Champion Breweries Plc on the 1st of September, 1992. The second expansion, which incorporated more sophisticated machinery, was completed and put on trial run in September 1979. The second production line was officially commissioned on the 11th of December 1979 with enhanced capacity of 500,000 hectoliters per annum. The same year the Company's products, "Champion Lager Beer" and "Champ Malta" won Silver Medal for quality at the 16th World Selection for Beers and Non-Alcoholic Beverages in Luxemburg. Consequent upon pressure of demand for its products, the Company took a decision to double its capacity to one million hectoliters. This third expansion, which gulped substantial resources, could not be realized. The non-completion of the expansion programme coupled with lack of working capital and inadequate maintenance of the Plants forced the company to close its doors for business between 1990 and 1991. With the advent of democracy in Nigeria in May 1999; the Government of Akwa Ibom State made the reactivation of the brewery a cardinal activity.

The reactivation process, which commenced in February, 2000 lasted about 19 months with the plant revamped and restructured to use one hundred per cent locally sourced raw materials. The reactivated Brewery was officially commissioned on the 23rd of October, 2001, with Champion Lager Beer and Champ Malta now in the market and is doing well. Champion Breweries is now fully operational and the capacity is 500,000 hectoliters per annum.

InBev is a true global brewer, with leading positions in the Americas, Europe and Asia, and is ranked No. 1 or No. 2 in over 20 key beer markets around the world more than any other. InBev is a publicly traded company headquartered in Belgium with its origins dating back to 1366.

InBev, with a portfolio of more than 200 brands, including Stella Artois, Brahma, Beck's and Leffe, its four global brands, was formed in 2004 when Interbrew and Companhia de Bebidas das Américas (AmBev) combined to create what is now the world's largest brewer, by volume, selling 202 million hectoliters (hl) of beer and 31.5 million hl of soft drinks in 2004 (pro forma figure for InBev plus AmBev). InBev has an unparalleled global platform, and a market share, worldwide, of close to 14%, in a balanced mix of developed and growth markets. InBev's global brand portfolio is reputed as the fastest growing of any major beer company. Stella Artois is the world's fifth-largest international brand and is now marketed in over 80 countries. Brahma is the eight-largest beer brand in the world and one of the best-selling beers in Brazil. Beck's, the No. 1 exported beer from Germany, is sold in over 125 countries around the world and is one of the fastest-growing premium brands. Leffe, an unusual abbey beer, is a full-bodied, top-fermented beer with deep, complex flavors and a distinctive scent of cloves and vanilla, and is now one of our four global brands. Leffe was first brewed in 1240, and is still brewed today according to the same basic recipe.

Interbrew can trace its origins back to 1366 to a brewery called Den Horen, located in Leuven, a city just outside of Brussels. In 1717, Sebastien Artois, master brewer, purchased the brewery and changed its name to Artois. Interbrew was formed in 1987 from the merger of Brasseries Artois, then the second largest brewer in Belgium, and Brasseries Piedboeuf, then the largest brewer in Belgium and the brewer of Jupiler. Both of these brewers had a history of acquisitions, with Brasseries Artois having acquired the Leffe brand in 1952, the Dommelsch Brewery in the Netherlands in 1968, and the Brasseries Motte Cordonier in France in 1970, while Brasseries Piedboeuf had acquired the Lamot brewery in Belgium from Bass PLC in 1984.

While its origins date back to 1885, Companhia de Bebidas das Américas (AmBev) was born when the brewers of Brahma and Antarctica beer in Brazil merged in 1999. While Brazil is the world's fourth largest beer market, and the largest in Latin America, AmBev nevertheless sought to grow beyond its borders into Argentina, Venezuela, Uruguay and Paraguay. It also acquired activities in Central America, Peru and the Caribbean.

Nigeria is a Global Beer Hub, Guiness has one of it's three facilties in Nigeria, Nigeria has a couple of Indigeneous companies aswell:)

Matthias Offodile

January 29th, 2007, 03:20 PM

Nigeria is set to occupy top slot in Africa's cellphone market

January 28, 2007 AFP

Nigeria is forecast to have 43 million cellphone users by the end of this year, exceeding South Africa as the biggest cellphone market in Africa, Reuters says, citing a report by Pyramid Research.

Nigerian cellphone companies signed 9 million new users over the past nine months, and will add at least another 11 million this year to surpass South Africa. Nigeria, Africa's most populous market with 140 million people, may have 78 million cellphone subscribers by 2010.

Matthias Offodile

January 29th, 2007, 09:05 PM

Indians Have Invested $10bn in Nigerian Economy

From Onwuka Nzeshi in Abuja, 01.28.2007

The Indian High Commissioner to Nigeria, His Excellency H.H.S. Visw-anathan, disclosed at the weekend that over the last seven and a half years of Nigeria's reform programme and the liberalisation of various sectors of the economy, Indian entrepreneurs had invested over $10 billion in the Nigerian economy.
Viswanathan added that more Indian entrepreneurs were due in Nigeria in the coming months to take advantage of the prevailing conducive investment climate in Africa's most populous country and explore business opportunities in the power, rail, petroleum and agricultural sectors of the economy.
He said given the excellent political and economic ties between both countries, Indian firms which started their investments from the trading in Indian made goods have since diversified into agriculture and manufacturing in Nigeria.
On outsourcing, where India has gradually carved a niche for itself across the globe, Vaswanathan disclosed that some information communication technology firms in India have already started outsourcing some of their jobs to Nigerian companies.
“With a population of about 140 million and considerable revenue from oil exports, Nigeria is the largest trading partner of India in Africa and bilateral annual trade turnover exceeds $5 billion.
“Earlier, Nigeria ranked fifth as far as India’s exports to African countries are concerned, but has now moved to the first place. Indian companies have sizeable investments in textiles, chemicals, electrical equipment, pharmaceuticals, plastics, fishing etc.
“The first Indian company, K. Chellaram Company, was set up in Nigeria in 1923. India has assisted Nigeria through transfer of technology, machinery and expertise in the form of joint ventures and consultancy services. Nigeria also imports more Indian pharmaceuticals than any other country in the African continent.
“Trade turnover continues to grow, including in computer components and software services, with large potential for Indian project exports in railways, power generation and electricity transmission, telecommunications, defence and machine tools”, he said.
The High Commissioner disclosed how his country’s long military cooperation with Nigeria led to the establishment of the Nigeria Defence Academy and the National War College India.
He also stated that his country had maintained excellent bilateral relations with Nigeria over the years, and that the defence pact between the two countries culminated in the training of Nigerian military officers in India for many years before the two military training institutions were set up in Nigeria.
The Indian envoy spoke at an interactive session with newsmen as part of activities marking India's 58th Republic Day celebration in Abuja.
He disclosed that plans were also under way to review and strengthen vital aspects of the defence relations between both countries in order to midwife truly professional armed forces in Nigeria.
According to him, apart from the supply of communication gadgets to the Nigerian Armed Forces, exchange of cadets and officers as well as the exchange of polo teams, the Indian government was also considering assisting the Nigeria Police in its internal security assignment through support to the Nigeria Police Equipment Fund to provide both hardware and software data storage equipment and capacity building for the Nigeria Police.

Matthias Offodile

January 30th, 2007, 12:44 PM

Indian gas firm acquires $2.5bn Nigerian oil bloc

January 30th, 2007

India’s investment in Nigeria’s oil and gas sector has been boosted as the country’s largest gas distribution company, state-owned GAIL Limited, commences exploratory talks to acquire a 30 percent stake in an offshore oil and gas bloc in the Niger Delta.
EJIOFOR ALIKE

According to a source at the Department of Petroleum Resources (DPR), the $2.5 billion oil bloc deal involves two Nigerian oil companies.

The source told BusinessDay on condition of anonymity that the Nigerian arm of London-listed Hardy Oil and Gas PLC, Hardy Oil Nigeria, holds a 20 percent stake in the unnamed bloc which is located in the Atala field in the creeks of the Niger Delta. Nigeria’s Bayelsa Oil Company, which operates the bloc, holds the remaining stake.

The DPR official who declined to disclose the actual price the company is offering for the stake, however said that both the offer price and the investment the Indian company would be required to make in the nation’s infrastructure is in excess of $2.5 billion.

The DPR source also stated that the Indian gas company’s interest in the nation’s oil and gas sector was in response to the visit of Edmund Daukoru, Nigeria’s Energy minister to New Delhi earlier in the month.

During the visit Daukoru met with Murli Deora, India’s Petroleum minister and gave the Federal Government’s approval in principle for the award of two proven oil blocs to Indian state-owned India Oil Corporation (IOC) during next month’s bid round in exchange for setting up a $2 billion worth 6-million-tons-per-annum (mtpa) refinery in the country.

IOC, which was keen to bid for Port Harcourt Refinery, also received a proposal to join a consortium of the Nigerian National Petroleum Corporation (NNPC), Shell and ConocoPhilips in a Liquefied Natural Gas project in the country.

Daukoru was also said to have solicited for more investments from other Indian companies such as Oil India Limited and GAIL India Limited in Nigeria’s oil and gas exploration and production and invited these companies to participate in the bidding for 55 oil blocs which the Federal Government has slated for offer next month.

However, BusinessDay could not ascertain if GAIL Limited would still participate in next month’s offer in view of its decision to buy a 30 percent stake in the unnamed oil bloc.

It would also be recalled that two blocs were awarded to an Indian consortium made up of ONGC and Mittal Steel under the aegis of ONGC Mittal Energy Limited (OMEL) during the May 2006 mini round in exchange for the payment of a signature bonus of $125million and a $6-billion investment in a new 180,000-barrels-a day refinery, a 2,000 megawatts of power plant, and an East-West railway that will run between Port Harcourt and Lagos in Nigeria

SE9

January 30th, 2007, 10:00 PM

Kenya best for business in EA

Story by ODHIAMBO ORLALE
Publication Date: 1/30/2007

Kenya has been ranked the best country in which to do business in East Africa.

But the country fares poorly globally, at number 83 out of 175.

The ranking by the Kenya Association of Manufacturers considered crime levels, grand corruption, bureaucracy and high taxes, among others.

Kenya and Russia reported highest losses from crime with 31 per cent and 36.4 per cent, respectively.

Some 70 per cent of businessmen in Kenya considered crime a major constraint, the study says.

On graft, 73.8 per cent of the businesses perceived the vice to be a severe constraint, while in Uganda, they were 38.2 per cent and in Tanzania they were 51.1 per cent. Russia was shining with only 13.7 per cent perceiving graft as a constraint.

The best country to do business in in the world is Singapore in Asia, while the worst is the Democratic of Republic Congo.

Harsher environments

The KAM study entitled; Establishing the Challenge - Kenya Competitiveness 2006, further says the two other East African countries have harsher environments for business, with Tanzania ranked at position 142 and Uganda at 107. Among the comparative countries, Thailand in Asia, is ranked highest when it comes to the ease of doing business, while Egypt, in Africa, is rated as the most difficult.

The chairman of the association, Mr Steven Smith, said they computed the ease of doing business from a comparison of various indicators. These include business start-ups, licence regime, conduct of cross-border trade, labour regulations, registration of property, tax burden and administration, enforcement of contracts and accessing credit.

The report was launched yesterday by the permanent secretary in the Ministry of Trade and Industry, Mr David Nalo.

More than 200 guests and members of the association attended the launch at Grand Regency hotel, Nairobi. The Government was taken to task over the high cost of doing business in the country and the bureaucracy in the civil service.

The 37-page report stated that the top 10 countries, which made it easy to do business, were in the developed countries.

The hardest

The best top 10 were listed as Singapore, New Zealand, United States, Canada, Hong Kong, United Kingdom. Denmark, Australia, Norway and Ireland.

The hardest to do business in were named as DRC, Timore-Leste, Guinea-Bissau, Chad, Congo Republic, Eritrea, Sao Tome & Principle, Sierra Leone, Central African Republic and Burundi.

The study says Kenya had the most open economy in East Africa.

africa500

January 31st, 2007, 01:21 AM

Brazil-Arab News Agency

BUSINESS OPPORTUNITIES
[01/30/2007 - 08:30]
Sugar factory in Sudan to double production

Kenana Sugar Company is going to double its production capacity in three years, according to information provided by the company. Kenana produced 450,000 tonnes of sugar in 2006, and is building a new plant with the same capacity as the existing one. Representatives of the Arab Brazilian Chamber of Commerce, currently in Sudan to attend Khartoum International Fair, visited the company's plant last weekend.

Isaura Daniel*

Sгo Paulo - Kenana Sugar Company, Sudan's largest sugar producer, is going to double its production capacity over the next three years. The company also intends to start producing ethanol within approximately 15 years. The information was given by company executives to representatives of the Arab Brazilian Chamber of Commerce: Rodrigo Solano, operations manager, and Jean Gonзalves da Silva, Market Development analyst, who visited the company plant last weekend. The two are in the country to attend the 24th Khartoum International Fair, which began on January 24th and will continue until February 2nd in the capital of Sudan.

According to the industrial vice-manager at Kenana, Ibrahim Mustafб, the company has capacity for processing 26,000 tonnes of sugar cane per day, and produced 450,000 tonnes of sugar last year. Kenana is carrying out a project entitled White Nile Sugar, for which the company is building another plant, with the same capacity as the existing one. The Arab Brazilian Chamber representatives visited the project site, near the White Nile. The unit, which started being constructed in 2003, will be ready in three years, according to the project manager, Ahmed El Haj Ibrahim. Kenana will hold a 15% capital share of the new plant, and will be in charge of its management.

Ethanol production is also under study by Kenana. The company has already shown interest in importing Brazilian technology for ethanol manufacturing, and is willing to establish partnerships with Brazilians to operate in Sudan. In fact, Brazil is already present in the company's sugar production. Some of the machinery used for harvesting the sugar cane planted by Kenana, for instance, was imported from Brazil. A variety of cane known as SP, which the company produces, is originally from Sгo Paulo, in southeastern Brazil. The SP variety accounts for approximately 0.5% of total production. The company also imports 60,000 tonnes of raw sugar per year from Brazil for processing.

Kenana is located in the city of Rabak, on the east bank of the White Nile River, 300 kilometres south of Khartoum. The company produces sugar, molasses and feed. Some of the sugar is produced using sugar cane planted by the company itself. Kenana has 40,470 hectares of planted sugar. The crops are irrigated. According to information supplied to the Arab Brazilian Chamber representatives, 60% of the crop is mechanized. The remaining 40% of the work is done manually, in order to generate jobs. The company employs a total of 1,500 people, 60% of whom hold steady jobs. The harvest begins in November and lasts until May of the following year.

The sugar produced by Kenana is aimed both at domestic consumption, in retail and industry, and at the foreign market. The company exports sugar to Europe and to Arab Gulf countries. This year, production should increase, according to Mustafб. The machinery currently used in production is imported from France. Kenana belongs to several investors. The Sudanese government owns 35.33% of the company's capital, followed by the Kuwait Investment Authority, which holds 30.64%, and the Saudi Arabian government, which owns 10.97%. Also participating in the company are the Arab Investment Company, the Sudan Development Corporation, the Arab Authority for Agricultural Investment and Development, a consortium of Sudanese banks, and the Nissho Iwai Corporation.

Khartoum

The Arab Brazilian Chamber representatives visited Kenana as part of their activities held on the sidelines of the Khartoum Fair. The organization has a stand at the fair to provide information on the Brazilian industry and its production. According to Solano, up until now, 60 promising contacts were made at the Arab Chamber stand. In addition to the Sudanese, also seeking information on Brazilian production at the Chamber stand are importers from other countries, such as Oman, Saudi Arabia, Turkey, Pakistan and Egypt.

According to Solano, the sectors that attract the most interest from importers at the Chamber stand are agricultural machinery, construction material and furniture. The Arab Brazilian Chamber of Commerce professionals are distributing catalogues to visitors at the fair, featuring products by Brazilian companies who are interested in exporting to the Arab country. "They are surprised at the potential of Brazilian industry. More aggressive promotion work is required for them to become aware of how vast is our national industry," claimed that operations manager.

Matthias Offodile

February 1st, 2007, 01:42 PM

Just a few days after a huge discovery was annouced in Block 14 by Sonagol and Chevron, more oil has been found yesterday in Block 31.:cheers:

BP Makes Twelfth Ultra-Deepwater Discovery in Angola's Block 31
Tuesday, January 30, 2007

Sonangol and BP have made another significant oil discovery with the Terra well in ultra-deepwater Block 31, offshore Angola. Terra is the twelfth discovery that BP has drilled in Block 31. The well is located approximately 30 km NW of the recently announced Titania discovery.

Terra was drilled by the Jack Ryan drillship, in a water depth of 2,328 meters, some 411 kilometers northwest of Luanda and reached a total depth of 6,118m TVD below sea level. This is the third big discovery in Block 31 where the exploration well has been drilled through salt to access the oil-bearing reservoir beneath.

Sonangol is the concessionaire of Block 31. BP Exploration (Angola) Limited as operator holds 26.67 per cent. The other interest owners in Block 31 are Esso Exploration and Production Angola (Block 31) Limited (25 per cent), Sonangol E.P. (20 per cent), Statoil Angola A.S. (13.33 per cent), Marathon International Petroleum Angola Block 31 Limited (10 per cent) and TEPA (BLOCK 31) LIMITED, (a subsidiary of the Total Group) with 5 per cent.

BP's involvement with Angola goes back to the mid 1970s. During the 1990s, BP made very substantial investments in Angola's offshore oil and it is now an important part of the company's upstream portfolio. BP has interests in four hugely promising blocks with operated interests in two.

Operatorship of Block 31 was awarded to BP Exploration (Angola) Limited in May 1999. The block covers an area of 5,349 square kilometers and lies in water depths of between 1,500 and 2,500 meters.

BP also has operated interests (BP 50.00 per cent equity) in Block 18 where the Greater Plutonio Project is currently being developed and is due to come on stream in 2007.

BP has non-operated interests in Block 15, operated by Esso Exploration Angola (Block 15) Limited (BP 26.67 per cent equity) and in Block 17 operated by Total (BP 16.67 per cent equity).

Oil deposits are commonly associated with salt throughout the world; Angola is no exception. Salt distorts the seismic image and as a consequence, salt-affected areas require significant amounts of additional seismic processing and interpretation prior to drilling.

SE9

February 1st, 2007, 10:40 PM

Kenya and Libya sign $300m refinery deal

By A STAFF WRITER
The EastAfrican

Kenya has secretly signed a multimillion-dollar deal with a Libyan state-owned company, Tamoil Africa Ltd, whose impact will be to loosen the stranglehold that Western multinational oil companies have had on the local oil market for years.

Kenyan total demand for crude and refined fuels stands at 2.8 million tonnes per year and is expected to rise in line with the growth of the economy.

Under the deal, the Libyans have been given the exclusive right to implement two lucrative contracts — the larger of which is a multimillion-dollar upgrade of the Kenya Petroleum Oil Refineries Ltd. The other is a $60 million contract to build an LPG storage facility at Mombasa.

Sources conversant with the deal told The EastAfrican that the whole deal was sealed during a visit by top Ministry of Energy officials to Tripoli last month, during which the parties signed a memorandum of understanding.

Apparently, the Energy officials who signed the deal were officially in Tripoli for a different assignment altogether — namely, to conduct a legal and financial due diligence on Tamoil for the purposes of evaluating the Kenya-Uganda Oil Pipeline Project.

They were accompanied on the mission by a team of Ugandan Ministry of Energy and Natural Resources officials.

The fact that the huge deal seems to have come as an afterthought underscores the secret manner in which the memorandum of understanding between Kenya and the Libyan company has been handled.

The EastAfrican has also learnt that the Office of the Attorney General last week fired off a letter approving the deal with the Libyans.

Currently, the Kenya Petroleum Refineries Ltd is owned on a 50:50 basis jointly by the government and three multinational oil companies — Shell, British Petroleum and Chevron.

The arrangement with the Libyans is that once they pump an estimated $300 million into the refinery’s upgrade, the stake of the current shareholders will diminish proportionately, thus allowing the North Africans to take charge of the facility.

An independent consultant will be appointed to conduct a valuation of the assets of the refinery and to determine the additional capital required to upgrade it.

Currently, the assets are valued at between $40 million and $50 million.

The thinking is that an upgraded refinery — catering for 60 per cent of all crude petroleum imports into Kenya, and processing products at prices more competitive than imported products — will almost immediately become the dominant player in the oil-marketing scene in Kenya.

Under the memorandum of understanding, the Libyans will also be allowed to bring in refined products from Tripoli.

Sources familiar with the agreement say the deal specifically states that the intention of the government is to broaden the country’s sources of refined products to include Libya.

Presently, imports of refined oil products into Kenya is done through an open tender system dominated by the multinationals.

Another lucrative project clinched by Tamoil under the memorandum of understanding is a $60 million deal to build an independent LPG storage facility at Mombasa with a capacity of 10,000 tonnes.

The facility will be owned 50 per cent by the government and the remainder by the Libyans.

The government has justified the project on the grounds that studies it commissioned in 1977 had established that the demand for LPG is far in excess of KPRL’s production, which currently stands at 28,000 tonnes annually.

Imports of LPG have over the past two years exceeded domestic production, despite the lack of adequate storage and handling facilities .

Under the deal Tamoil, has committed itself to giving the government the most competitive terms for the two projects.

The Libyans have also indicated in the memorandum that their intention is to have a majority shareholding in both the refinery and LPG projects.

Tamoil (Africa) Holdings Ltd is owned 70 per cent by Oil Invest Holdings, which is in turn owned by the National Oil Corporation of Libya — a wholly-owned government body reporting directly to the prime minister of Libya.

Tamoil East Africa, the entity involved in the Kenya-Uganda Pipeline project, is a subsidiary of Tamoil Africa Holdings.

Libya has in recent years begun playing an increasingly visible role both in terms of investment and trade in East and Central Africa.

Currently, Tamoil is in negotiations to acquire the assets of American oil major Mobil in Kenya.

Only recently, it became the second North African country to join the Comesa Free Trade Area (FTA) — giving the oil-rich country duty-free access to the 14 member countries of the bloc-within-a-bloc.

The high profile that Libyan companies are beginning to assume in East Africa also a reflection of the growing importance of Muslim North Africa in trade and investment with Comesa countries that is beginning to change trading patterns on the continent, with the Northerners beginning to supplant traditional European trading partners as major consumers of agricultural commodities produced in East Africa.

Depending on how the new deal between Kenya and Libya progresses, it could witness the most ambitious assault on the multinational domination of the oil industry in Kenya since the 1930s.

The oil industry in Kenya is a vertically integrated outfit in which Big Oil holds sway, and consumer prices are often increased uniformly with the marketing companies operating more or less like an official cartel.

The stranglehold Big Oil has on the oil marketing business derives from its being involved in literally all aspects of the business from procurement of the raw material (crude) to its refining, with three of the oil majors owning 50 per cent of the Kenya Petroleum Oil Refineries.

In April 2005, Head of Public Service Francis Muthaura appointed an interministerial task force to investigate cartel-like behaviour in the industry.

The investigations declared Big Oil guilty and came up with several recommendations to tame it, the most radical of which was a proposal to push the oil majors out of the retail business and restrict them to the wholesale end of the business.

Tbite

February 2nd, 2007, 02:55 PM

Cross River Introduces Intra City Transport . (18/1/2007)

http://www.crossriverstate.com/images/news%20image/bus.gifhttp://www.crossriverstate.com/images/news%20image/bus1.gif

The Cross River State Government has restated its resolve to improve its intra city transportation system in the state in order to minimize problems encountered by commuters.

Towards this end, it has concluded arrangements to receive a fleet of 15 Mercedes Benz 1721 City Bus Busscar model buses by the mid of next week to ply designated routes in Calabar metropolis.

Governor Donald Duke of Cross River State stated this in Calabar after a 12 kilometre demonstrative bus ride in one of the newly acquired city buses to be deployed to some selected routes in Calabar South and Calabar Municipality, adding that experts in the field of transportation are collaborating with government to fashion out a blue print for the operation of the new transport system.

Duke expressed the hope that the system would cover a wide area within the metropolis and reduce the hardship which commuters are currently passing through.

On the temporary ban on the operation of commercial motorcyclists in Calabar South and Calabar Municipality, Duke said the ban was for the safety of both the riders and their passengers, while appreciating the hardship which commuters are experiencing due to the ban.

According to him, the ban was long over due because the riders were as from January this year expected to obtain two helmets, reflective vest for identification, insurances for themselves, motor cycles and their passengers for a fee of N13, 800, explaining that, the enforcement was expected to take effect from September, 2006 but government decided to shift the date till January, 2007 as there was need to enforce its compliance.

Duke said government would review the situation next week and allow those that have complied to commence cooperation while the registration will last till February 15, 2007 and those that refuse to register will remain banned.

CrossRiver State is moving forward:)

Tbite

February 2nd, 2007, 02:59 PM

Duke Temporarily Outlaws ‘Okada’, Launches New Taxi/Cab Scheme. (15/1/2007)

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Governor Donald Duke of Cross River State has temporarily outlawed the activities of motorcyclists popularly known as Okada in the state in order to bring sanity in its operations and respect for the rule of law.

While launching the first fleet of the State initiated Cross Lease Taxi Scheme Friday in Calabar Duke said the temporary ban which takes effect from Saturday, January 13 was a direct result of the mayhem perpetrated by Okada riders culminating the breakdown of law and order and burning down of Atakpa police station to protest a new licensing regime announced by the regulatory agency.

Duke explained that while enacting the law on the operation of Okada in the State, operators had consulted and agreed to pay an initial license fee of N14, 000 which covered insurance, identification apparels and two helmets of which one would be for the rider and the other for his passenger, explaining that though the enforcement was to take effect from September 2006, government decided to implement it in January 2007.

Duke highlighted that though the state is determined to implement the policy, it was not unmindful of the temporary hardship which the citizens will be exposed to while urging employers to also show understanding because it is government’s desire to bring sanity into its transport system.

On the taxi scheme, Duke said the 50 cabs commissioned were part of the first phase and that Calabar requires 200 cabs. He assured that 150 additional cabs would be supplied before the end of the year because the town needs a decent and more befitting transport system, adding that there is evidence that most of the roads in city are motorable.

He stated that the 15 minutes drive Monorail between Tinapa with Margaret Ekpo International Airport, Calabar will be completed between September and October this year thereby creating a less chaotic traffic system in the city while congratulating the beneficiaries of the taxi scheme.

The Governor explained that the thoughts and words of the scheme were geared towards tourism as the drivers are expected to be part of the city, its history, road network being the first point of contact in the state.

Mr. Eyo Ekpo the Attorney General and Commissioner for Justice in his remarks said the idea for the taxi scheme was mooted at the time the state was considering a bill to regulate the operations of motor cyclists, with the intention of coming up with a policy thrust to improve upon the existing transport system in the state with the hope of boosting its tourism thrust.

Ekpo said 50 Peugeot brand vehicle were initially bought because their maintenance is low and parts easily available, adding that this would open job opportunities for 50 youths as drivers.

He explained that apart from being licensed drivers, they would be exposed to a four day driving programme and a two day training at the State Tourism Bureau to qualify them as tour guides, saying that each car is fitted with a security device that will track it wherever it is within Nigeria.

The commissioner said the criteria is that each beneficiary must be an indigene of the state as well as make an initial deposit of N500, 000 and thereafter make a daily returns of between N3, 000 and N4, 000 to off set the cost of each vehicle, stating that rather than being managed by bureaucrats or civil servants, the vehicles and their operators will be managed by a private company, under the Public – Private partnership (PPP) arrangement.

Mr. Charles Ekeng, one of the beneficiaries in appreciation commended the State government for initiating the scheme not only as a way of improving transport system but also as a means of combating poverty by creating jobs. Ekeng promised to abide by the rules as stipulated by the agency which will manage the scheme.
:bow: :bow: :bow: :bow:

Matthias Offodile

February 2nd, 2007, 07:30 PM

TBITE, Thanks for the info on Cross River State. Donald Duke really rocks...:cheers:

MY GOD WHY CAN´T NIGERIA HAVE THIS CAPBABLE AND GREAT MAN FOR PRESIDENT???? WHY????????:bash: :bash:

Tbite

February 2nd, 2007, 07:49 PM

If only, if only :ohno:

Tbite

February 2nd, 2007, 07:50 PM

Africa: Sub-Saharan Continent Leads World Tourism Growth At 12.6 Percent

January 16, 2007
Posted to the web January 16, 2007

Abdulsamad Ali
Nairobi

Africa, led by Kenya and South Africa is expected to top world tourism growth, which is expected to record an upward swing this year, according to figures released by the authoritative United Nations World Tourism Organisation (UNWTO).

The UNWTO, in its World Tourism Barometer for this year, forecasts world growth of around four per cent.

The projections are derived from the first eight months of 2006, during which period international tourist arrivals totalled 578 million worldwide (4.5 per cent increase), up from 553 million in the same period in 2005, a year that saw an all-time record of 806 million tourists internationally.

The expected four per cent growth for 2007, though slightly lower than in previous years, is in line with UNWTO's long-term forecast growth rate of 4.1 per cent a year through 2020.

The short-term outlook remains positive, especially against the background of a strong world economy and as favourable exchange rates continue to encourage European and Asian travellers. International tourism is likely to remain buoyant unless major incidents occur, says the UNWTO.

Africa leads in growth with the expected rate for the just-ended year of 2006 standing at 10.6 per cent. Africa was also in the world's regional leader in 2005 in terms of growth. Between January and August, international tourist arrivals increased by 9.8 per cent.

Sub-Saharan Africa, with 12.6 per cent growth, leads the performance so far, driven notably by Kenya, South Africa, Mozambique, Swaziland and the Seychelles. At the same time, in North Africa, with an average growth of 5.9 per cent, the two main destinations, Morocco (9.3 per cent) and Tunisia (2.6 per cent), have experienced somewhat different growth rates.

Kenya Tourist Board chairman Jake Grieves-Cook told The EastAfrican the organisation was waiting for the final totals to be compiled for 2006 international arrivals before releasing more details. "We expect last year's figure to be over 900,000 for international arrivals by air, showing continued growth," he said.

Kenya's performance is derived from arrivals by air, on flights from outside Kenya through the two international airports, and by land through the border posts on the borders with Somalia, Ethiopia, Sudan, Uganda and Tanzania.

The total international flight arrivals in 2005 were 830,000; whole, according to the Kenya Bureau of Statistics, the total number of visitors coming in by land across the borders was 840,000, bringing the total to 1.6 million.

For 2007, KTB expects to receive close to one million arrivals by air based on current numbers, additional flights and current growth trends, and anticipates income for Kenya attributable to international tourism to exceed Ksh60 billion ($857 million).

Mr Cook attributed the improvement to the recent Tourism Marketing Recovery Plan carried out by the KTB with the backing of the Ministry of Tourism and support from the European Union (EU).

Tourist arrivals figures for 2006 are expected to jump to 1.8 million from the previous year, which recorded 1.6 million tourists, representing an over 10 per cent increase.

In 2005, the highest increase in the number of arrivals was recorded from Scandinavia, with an improvement of 57.6 per cent to stand at 24,740 tourists, while the United Kingdom, the leading source market for Kenya, brought in 153,606 tourists.

Earnings increased dramatically in the year 2004 by 65 per cent to stand at Ksh42.2 billion ($602 million) and Ksh48.9 billion ($698 million) in 2005. This figure is expected to increase to Ksh53.8 billion (768 million) for last year and Ksh60 billion ($857 million) for this year.

Mr Cook commended the closer co-operation now in place between the Ministry of Tourism, KTB and the private sector resulting in a more cohesive marketing and promotion of tourism.

At the same time, the European Union and the Kenya government will spend about $72 million in the remaining half of the 2006/2007 financial year to consolidate the gains made in the tourism industry over the past three years.

The multimillion dollar project, which is being implemented by the Tourism Trust Fund (TTF) on behalf of the EU, the government of Kenya and the private sector, will enhance the marketing campaigns being undertaken by the KTB and other agencies.

The initiative, dubbed the Kenya Tourism Sustainability Project, is a short-term undertaking but is expected to produce rapid results through sustained marketing intraditional and emerging markets.

TTF chief executive Dan Kagagi said the project is a follow-up of similar initiatives carried out in 2003/2004 financial year and funded by the same organs in response to the decline in the industry following the Kikambala terror attacks in November 2002. Earlier, the industry had been adversely affected by tribal clashes that rocked parts of the Kenya's Coast and the Rift Valley.

Yippee

Rdokoye

February 2nd, 2007, 07:57 PM

TBITE, Thanks for the info on Cross River State. Donald Duke really rocks...:cheers:

MY GOD WHY CAN´T NIGERIA HAVE THIS CAPBABLE AND GREAT MAN FOR PRESIDENT???? WHY????????:bash: :bash:

Because he's not from the right ethnic group, the presidency was zoned to the north.

Tbite

February 2nd, 2007, 08:03 PM

what do you mean zoned, do yo mean zoned as in it's being enforced as part of the law, or zoned as in Northerners usually get elected

Rdokoye

February 2nd, 2007, 11:53 PM

what do you mean zoned, do yo mean zoned as in it's being enforced as part of the law, or zoned as in Northerners usually get elected

Unofficial PDP policy.

The presidential ticket will be zoned from north to south consecutively every 8 years.

But this only stands as long as PDP remains in power.

pappy

February 3rd, 2007, 01:39 AM

TBITE, Thanks for the info on Cross River State. Donald Duke really rocks...:cheers:

MY GOD WHY CAN´T NIGERIA HAVE THIS CAPBABLE AND GREAT MAN FOR PRESIDENT???? WHY????????:bash: :bash:

You can see why I'm so frustrated with that country...

pappy

February 3rd, 2007, 01:40 AM

Beautiful development. I hope that one day it won't just be opened for 'indigenes' of the state. God Bless Donald Duke!

biggerthings

February 3rd, 2007, 02:51 AM

Does anybody have pictures of the city of Calabar, i've heard such great things about it but have no clue what it looks like.

arzaranh

February 3rd, 2007, 04:59 AM

Unofficial PDP policy.

The presidential ticket will be zoned from north to south consecutively every 8 years.

But this only stands as long as PDP remains in power.
this is ridiculous why does nigeria have to be so divided!!!! i suppose though, if it works why fix it?

zexyworm

February 3rd, 2007, 08:29 AM

this is ridiculous why does nigeria have to be so divided!!!! i suppose though, if it works why fix it?

The source of the problem is that Nigeria is not a true federation in the true sense. A real federation grants autonomy to its various regions/ethnic groups by way of autonomy and real local parliament. A real federation produces local economies using local resources to the maximum.

So far in Nigeria there has been a strong reliance on federal coffers (oil money) and I think oil has been the biggest curse. One hopes that real change will start with the incoming civilian administration when democracy stablizes and a momentum towards real federation system is gained.

africa500

February 3rd, 2007, 01:29 PM

Komarek´s KKCG takes part in surveying for oil in Sudan

Prague, Jan 30 (CTK) - Czech company KKCG of entrepreneur Karel Komarek is taking part in surveying for oil in Sudan since the beginning of this year, daily Hospodarske noviny (HN) writes today.

Holding KKCG Oil&Gas, set up last year, has bought stakes in two surveying licences near Sudan´s capital Khartoum, holding 42 percent in both projects.

The company´s main partner is Pakistan´s firm Zaver Petroleum of the Hashoo Group with which Komarek has been cooperating in gas extraction in Pakistan for several years.

Sudan´s state-owned company Sudapet holds 15 percent in the two projects. Komarek will invest over USD26 million (CZK 600 million) into surveying in Sudan in the coming two years.

KKCG Oil&Gas extracts oil and gas mainly in south Moravia at the time being. In Pakistan, it is using only gas field Sawan for now, and is surveying in other localities.

The company also holds stakes in surveying gas fields in Yemen, south Germany and Romania. It also owns shares in an oil company in Canada and is interested in projects in Russia and Ukraine, HN adds.

Tbite

February 6th, 2007, 12:44 PM

Nigeria: 'We'll Become No.1 in Africa--Adenuga' As Globacom Signs N78b Contract with Alcatel-Lucent

Vanguard (Lagos)

February 4, 2007
Posted to the web February 5, 2007

Akoma Chinweoke

http://www.gloworld.com/gloworldcms/Images/glologo.gif

FOLLOWING the network expansion contract worth over 600 million US dollars (N78 billion) Globacom signed with Alcatel-Lucent, the Chairman, Dr. Mike Adenuga Jr., has stated that the company is on track to become the number one telecommunication solutions provider in Africa.According to Adenuga, "Alcatel-Lucent's unmatched product portfolio and extensive experience in turnkey end-to-end projects will enable us (Globacom) to meet the challenge of rapidly deploying advanced technology networks and gradually move to an all-IP world. Through the continuation of this cooperation, we are working toward our ultimate goal of becoming the number one operator in the continent."

Under the terms of the new contract, Alcatel will deploy nationwide fixed and mobile networks as well as next generation IP/MPLS and optical network solutions. It will expand Globacom's national mobile network capacity from its current 12 million subscribers to 35 million by the end of 2007. This covers the Alcatel-Lucent multi-standard Evoliumâ„¢ radio access and core network solutions as well as transmission solutions.

The project will boost network performance and support delivery of advanced multimedia, converged services such as triple play, a service that allows provisioning of high-speed Internet, television (video or regular broadcasts) and telephony over a single broadband connection. Globacom was the first Nigerian operator to offer 2.5 high-speed network data transmission, Mobile Internet, Multimedia Messaging Service (MMS) as well as BlackberryÂ® Services.

Alcatel-Lucent will also install 292,000 multi-service access lines covering thirteen of the country's major cities. The fixed network solution will enable Globacom to offer voice, high-speed internet access and broadband multimedia services such as video-on-demand, video conferencing and broadcast video to its customers.

The deal will see Alcatel-Lucent deploying a new DWDM optical transport network to increase Globacom capacity and extend the reach of its existing infrastructure, broadening its service offering to new areas. The optical network will cover 40 cities in Nigeria and will be the largest DWDM and IP/MPLS nationwide fibre backbone network to be rolled out in Africa.

Ever since Globacom emerged a couple of years ao, they've being nothing but a success story:)

Matthias Offodile

February 7th, 2007, 01:04 PM

A very interesting article worth reading

Johnnic Communications study: ‘West Africa’s entertainment, media worth $48 Billion’

February 7th, 2007

The potentials of the media and entertainment industry in West Africa with a population of about 250-million have been described as huge, and possible capitalisation of R340-billion ($48-billion) with estimated advertising revenues worth R106-billion ($15-billion).

MARTINS AZUWIKE

This was disclosed last week in Abuja by Mashudu Ramano, chairman of Johnnic Communications, South Africa, at the second West Africa Investment Forum.

Unfortunately, the region currently generates a dismal $500-million within the sector.

In comparison, South Africa with a population of about 47-million people commands a media sector capitalisation of R80-billion ($10.2-billion) and R25-billion ($3.1-billion) advertising revenues, with more than 200,000 people employed.

"There is unquestionably a potentially dynamic and massive domestic market within West Africa, boosted by the emergence of consumerism, growing middle-income consumers, well-educated West Africans presently in the Diaspora returning to their countries of origin and the organic growth of domestic markets. By comparison, South Africa, with a population of 47-million has a media sector with a market capitalisation of R80-billionn ($10.2-billion) with advertising revenues of R25-billion ($3.1-billion). West Africa , with a population of some 200-million, generates somewhere in the order of $500-million. Using South Africa’s demographics as a benchmark, the market capitalisation of the industry in West Africa should be in the region of R340-billion ($48-billion) with advertising revenues R106-billionn($15-billion).

Bold and imaginative leadership is required at either the political or business level to achieve these figures. It further requires responsible and accountable governance in the interests of the people of West Africa .

"I believe that the problem of Africa is not the lack of resources; it is rather the lack of proper leadership and the absence of the ‘eyes to see’ the wealth and opportunities that exist," he said.

Ramano added that Johnnic Communications, which is South Africa’s third largest media group, "pools a market capitalization of R8-billion and employs about 4,000 people in the UK, West Africa, and East Africa". According to him, the Johnnic Group moved into West Africa in 2003, and has been working with governments to improve local content in the media and entertainment industry. This has manifested, for example, in working with Nollywood producers, a collaboration that has yielded the film, Amazing Grace. Other areas have been in the promotion of soon-to-be-launched African Film Festival in Lagos . Other initiatives by the group include the promotion of literary societies across Nigeria, starting with Abuja.

Ramano further disclosed that the Johnnic Group had established a world-class facility in Ikeja, Lagos for the production of CDs, DVDs, and more. The group represents 21

st Century, Fox, and other global leaders in the entertainment industry.

He, however, bemoaned the challenges in Nigeria, for instance, in the areas of infrastructure, especially power. Piracy and lack of protection of intellectual property remain big challenges, too.

He maintains that "there is a significant amount of bureaucracy that adds to the cost of doing business, and there is a huge problem of logistics."

According to him, the problem we have in Africa is not a lack of opportunities or a lack of potentials, but a lack of leadership and the political will to sufficiently mobilise the people to tap into the emerging opportunities to realise their full potentials.

"It is up to us how to take the talent that we have here and expose them to the world," he concluded in response to questions asked by participants at the event.

Matthias Offodile

February 9th, 2007, 12:58 AM

Nigeria: FG awards $1.46bn Mambilla hydro-electricity plant contract

February 8th, 2007

The Federal Government has awarded contract on the civil works of the Mambilla hydro-electricity plant in Taraba state at the cost of $1.46-billion.

The minister for energy, Edmond Daukoru, who briefed state house correspondents at the end of yesterday’s meeting of the Federal Executive Council (FEC), said that the contract was awaded to a Chinese company.

According to him, three Chinese companies, including the successful one, had earlier bid for the contract. He did not disclose the names of the companies.

Daukoru said that the job would involve the civil and electrical works of the project.

He said that the project, which would involve the daming of the Usam, Gembu and Ngu rivers, would generate about 2,600 megawatts of electricity.

He explained that the project would be executed partly through a Chinese loan facility of more than one billion dollars and allocation of oil blocks to the Chinese government.

Minister of state for power, Ahmed Abdulhameed, while giving further clarification on the project, said that it was abandoned even after feasibility studies was completed in 1982.

He said that the study was reviewed by the Obasanjo administration to incorporate irrigation and tourism development.

Other issues discussed at the FEC meeting included the national plan of action on orphans and vulnerables, the National Information, Communications and Education Programme (NICEP) and the recruitment of 2,000 nuclear personnel to man the planned nuclear power plants.

skipperBill

February 10th, 2007, 12:10 AM

Royal Air Maroc will be last Airline I will expect in Nigeria.I hate the Moroccan stupid views of Africa and Africans.Morocco is contribucying to the detriment of Africa.They beleive Africa is a waste serving the European aims.They don't even beleive in the future of Africa.If the airline make it way to Nigeria there's going to be protest by many Nigerians ,I guess! Fcuk Morocco!

you sound angry. :lol:

Tbite

February 10th, 2007, 03:59 AM

Mobile Africa Study Forecasts Subscriber Base to Triple with Nigeria, South Africa, Egypt and Morocco Leading in Market Size
2007-01-24 11:20:59

http://images.google.com.au/url?q=http://www.redknee.com/newsletter/images/issues/2005/12/AA050586_272x198_final.jpg&usg=__gwjOUVYTiDzBUw6d5NkjaG_wHz0=

Business Wire - A new report researched by BroadGroup, the London based consultancy group, reveals that mobile subscribers across the continent will almost triple in the period through to 2011, with the largest markets represented by Nigeria, South Africa, Egypt and Morocco. Mobile Africa is being launched at the Emerging Markets Summit today.

The report is in two sections – a market report including player profiles, forecasts and demographics of each of the 51 African countries covered, and a mobile tariffs report analysing prices offered by key operators across the continent.

Growth in mobile phone ownership in Africa has been rapid, with the number of cellular phone subscribers increasing to more than 188 million by the end of 2006. The report indicates that the increase in mobile penetration across the continent now equates to approximately 20 per cent of the population (of more than 922 million).

Yet the report suggests that the African market is already consolidating, a trend that will accelerate following a spate of acquisitions led by MTC Group who have developed a unique pan-African play through its acquisition of Celtel, MTN, and South Africa’s mobile operator Vodacom.

Balanced against the value of mobile phones as the singular tool for economic empowerment, Africa represents a series of unique challenges including a higher level of investment requirement, rural area deployment which are typically underserved existing incumbents, and immature distribution channels. The market is also predominantly prepaid and average ARPU is declining across Africa to as low as USD 3. But there is considerable variation between countries.

“We see rapid continued growth across the continent with some countries even achieving 100% subscriber penetration seen in mature economies,” commented Keith Breed, research director at BroadGroup.

“Our research suggests that Africa is on the way to becoming one of the world's most important mobile economies by the end of 2011, almost tripling the subscriber base today.”

“Africa is witnessing innovative services and pricing such as banking and credit transfer, especially in competitive markets” commented Margrit Sessions, managing director of BroadGroup Tariff Services, “but the key changes are represented by the launch of lower entry points, through top-ups, scratch cards, credit transfers and e-top-ups; the lowest price at present is USD 0.41 for an e-top-up, and these price levels are helping to enfranchise a broader customer base.”

- Business Wire

Nigeria and South Africa are leading the way, with GPRS services available, CDMA available, Edge available and 3G available, but Nigeria, Rwanda and Uganda got CDMA services long before South Africa did:)