It seems as if the old thread has disappeared (I've searched for 15 minutes)
If anyone sees it, just bump it up, and I'll continue posting there.
Kenya best place to do business in E. Africa
Kenya has the most conducive environment for doing business in East Africa, according to Doing Business 2006, a new report released by the International Finance Corporation.
The country is ranked 68th out of the 155 countries in the listing ahead of Uganda, Rwanda and Tanzania, which took positions 72, 139, and 140 respectively. Burundi is in position 143.
The listing shows that Kenya ranks third in Africa behind Namibia and South Africa and is closely followed by Zambia, Malawi, Mozambique and Zimbabwe. Five African countries – Congo, Burkina Faso, Central African Republic, Chad and Sudan are at the bottom of the list in that order.
The five countries that top the rankings are New Zealand, Singapore, the US, Canada and Norway in that order.
However, the publishers say having a high ranking does not mean that a country has no regulations. "Few would argue that it is every business for itself in New Zealand, that workers are abused in Canada or that creditors seize debtors’ assets without a fair process in the Netherlands," says the report.
And to protect the rights of creditors and investors, as well as establish or upgrade property and credit registries, more regulation is needed to have a high ranking.
The higher rankings also do not necessarily mean better regulation but are associated with better economic and social outcomes, says the report, singling out court procedures for resolving commercial disputes as a key influence on businesses.
But to ensure fair processes, some procedural requirements are necessary, and these may cause delays.
Likewise, there are trade-offs between job protection and labour market flexibility.
A high ranking on the ease of doing business, however, does mean that the government has created a regulatory environment conducive to business operations.
Often, improvements on the Doing Business indicators proxy for broader reforms, which affect more than the procedures, time and cost to comply with business regulation and the ease of access to credit.
Such improvements are also associated with an expanded reach of regulation, as simpler and less burdensome rules may entice informal businesses to join the formal sector.
A high-level African delegation, comprising of government officials and members of the industry, will visit India next month. The group will seek Indian investments to the tune of over $17 billion in 300-odd projects in Africa.
According to sources, the 350-member delegation will, apart from seeking investment, ask for technology support from India Inc in sectors like oil, infrastructure, telecom, agriculture, mining, education, construction, food-processing, IT (hardware and software) and healthcare—in 16 African countries.
Of the African countries keen to attract Indian investment, Togo tops the list with $4.62 billion, followed by South Africa ($4 billion), Ghana ($3.73 billion) and Nigeria ($2.6 billion), according to the Confederation of Indian Industry (CII). The other countries wooing India Inc in a big way are Zambia ($1.31 billion) and Ethiopia ($580 million). Of the 281 projects worth of $11.26 billion discussed in two Indo-African conclaves last year, projects worth $323 million are under execution.
“The biggest problem faced by Indian exporters in Africa is delay in payment. Another problem is that except for South Africa, there is no regular shipping lines for other countries. Moreover, there is a lack of awareness about opportunities in that continent,” DG of Federation of Indian Exporters Organisation Ajay Sahai said. Said CII director (Africa) Shipra Tripathi, “Instability is limited to countries like Sudan, Ivory Coast and Congo. But the rest of Africa is peaceful. Countries like Botswana have a Standard and Poor’s credit ratings equivalent to some European nations. Besides, the return on investment in Africa is more.”
The government has instructed Export Credit Guarantee Corporation of India to be liberal in extending insurance coverage to those trading in these countries. Besides, the Exim Bank has extended line of credit.
I wonder why hey rank Zimbabwe 7th?SE9 said:'Doing Business' has released a report, ranking countries worldwide by 'best place to do business' (without regulations etc).
Of the African countries, the top-7 order goes:
1. South Africa
2. Namibia
3. Kenya
4. Zambia
5. Malawi
6. Mozambique
7. Zimbabwe.
(news article from a Kenyan perspective)
http://www.busrep.co.za/index.php?fArticleId=3481909&fSectionId=604&fSetId=662Rwanda'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.businessinafrica.net/news/east_africa/276123.htmFirm 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://allafrica.com/stories/200610130705.htmlNigeria: 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.