African Business and Economy News

[Matthias Offodile]

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



Businessday Mayl 13th, 2006

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


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

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

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

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

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

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

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

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

[Matthias Offodile]

Kia, Korean auto giant to establish assembly plant in Nigeria

By Moses Ebosele, Transport Reporter

Businessdayonline 21/04/2006

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

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

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





PS: In the 1970s, Nigeria enjoyed a good boost in the automotive industry worldwide. 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. 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...

[KB]

@nigerian forumers

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

[You are to blame]

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

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

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

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

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

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

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

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

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

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

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

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

[You are to blame]

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

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

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

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

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

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

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

[You are to blame]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Matthias Offodile]

October 20th, 2006

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


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

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

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

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

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

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

[Harkeb]

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

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

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

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

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

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

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

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

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


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

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

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

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

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

[Harkeb]

BHP Billiton to drill off SA coast
October 19, 2006

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

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

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

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

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

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

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


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

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

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

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

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

[Matthias Offodile]

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

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



Angola Press Agency (Luanda)

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

Luanda

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

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


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

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

[SE9]

NSE (Nairobi Stock Exchange) share index hits Historic High



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

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

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

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

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

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

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

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

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

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

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

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

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

[Matthias Offodile]

Nigeria: Oracle to Increase Business in Nigeria

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

Frances Ovia
Lagos

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

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

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

[Matthias Offodile]

Arab mobile provider, Nokia launches Sudan operations

Friday 6 October 2006 06:10.

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

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

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

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

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

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

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

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

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

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

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

(ST)

[belgiumguy]

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

[Mwafrika]

Oil exploration consortium hopeful of Lamu deposits

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

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

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

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

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

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

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

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

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

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

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

Source : East African Standard - http://www.eastandard.net/hm_news/ne...eid=1143960351

[You are to blame]

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

World Bank sees Africa progress

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

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

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

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

Mixed results

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

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

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

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

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

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

Millennium Development Goals

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

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

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

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

Prospects

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

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

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

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

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

[adebayoa]

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

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

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

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

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

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

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

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

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

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

[SE9]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Matthias Offodile]

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

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

[Matthias Offodile]

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

RAM-Gabon: Disputes bruyantes

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

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

· Plan «B»

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

Bachir THIAM

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