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Old January 24th, 2020, 10:34 AM   #29861
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African Business and Economy News

Quote:
Originally Posted by NicSA View Post
Suicide apparently. I wonder what secrets he knew...at least Portuguese banks should keep good records of all her transactions.

i seriously believe she is going to jail once an international warrant is issued.

How JDS mismanaged the economy, even after all of JLOs reforms its barely growthing enough to keep up with the population growth.

Its incredible the amount of time, money and focus on the Bay of Luanda for example, when the city is chocked with traffic.

Now I hope this isnt just a purge by him so he can be corrupt himself- tho looking at his reforms it doesnt seem the case.

Id like to maybe retract that- many astute political observers are very sceptical. They seem to think that JLO is making a show due to upcoming elections and wanting to get rid of potential rivals.

The kleptocracy/oligarchy which keeps Angolans is poverty has pretty much been unchanged and he has had 2 years to disassemble it.

This being Africa- i think we have to be sceptical. Anti-corruption drives in SSA usually end up being toothless with prosecutions few and far between- and on ruling party members almost nonexistent.

Even in 'poster child' Ghana- its only ever the previous government members and linked businessmen who ever get in trouble.

I gain more and and more respect for Rwanda

Here is an interesting and pragmatic piece on Angola


https://africacenter.org/spotlight/t...orm-in-angola/

Intresting is that while the Brazilian giant company Oderbrecht was heavily fined by the USA, and in Brazil itself, nothing actually happened in Angola itself. Another example
of a Western country prosecuting corruption and inaction in the country where it took place.

Angola requires a foreign company to have a local partner for infrastructure project. This was widely seen for what it was. God knows how many MPLA members partnered with the Chineae during the infrastructure splurge.

Its very clear that these projects were not carried out for the benefit of Angolans but to enrich politicians- like in EG where they have empty six lane motorways.
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Old January 24th, 2020, 10:52 AM   #29862
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World Bank Urges Kenya to Slow Down on President’s Pet Projects



Kenya should slow down on borrowing to fund President Uhuru Kenyatta’s key legacy projects, the World Bank has warned.



Kenyatta’s “Big Four,” a plan to boost manufacturing, farming, health care and low-cost housing, has put pressure on the treasury to hike spending even as it struggles to grow revenue. The Treasury expects public debt to climb 11% to 6.45 trillion shillings ($64 billion) by the end of June from a year earlier.



“It may be better to slow down, perhaps cut back on borrowing, and financing big projects,” Pinelopi Koujianou Goldberg, the World Bank’s chief economist said in an interview on Wednesday in Nairobi. “Take more of a long-term perspective and make sure that the way these projects are financed is truly sustainable.”



Kenyatta is racing to deliver 500,000 affordable houses, provide equipment in hospitals, open up new farmlands with irrigation and double electricity-production capacity by 2022 when his term ends. While there is a provision for private investors to participate in these projects, the government still has to spend to a great extent as well.



https://www.bloomberg.com/news/artic...s-pet-projects


If loan projects cant increase revenue it shows they werent thought out well.

Many SSA nations will find out early this decade that the projects they took out loans on will not increase revenue to make the repayments.
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Old January 24th, 2020, 01:37 PM   #29863
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Quote:
Originally Posted by popa1980 View Post
i seriously believe she is going to jail once an international warrant is issued.

How JDS mismanaged the economy, even after all of JLOs reforms its barely growthing enough to keep up with the population growth.

Its incredible the amount of time, money and focus on the Bay of Luanda for example, when the city is chocked with traffic.

Now I hope this isnt just a purge by him so he can be corrupt himself- tho looking at his reforms it doesnt seem the case.

Id like to maybe retract that- many astute political observers are very sceptical. They seem to think that JLO is making a show due to upcoming elections and wanting to get rid of potential rivals.

The kleptocracy/oligarchy which keeps Angolans is poverty has pretty much been unchanged and he has had 2 years to disassemble it.

This being Africa- i think we have to be sceptical. Anti-corruption drives in SSA usually end up being toothless with prosecutions few and far between- and on ruling party members almost nonexistent.

Even in 'poster child' Ghana- its only ever the previous government members and linked businessmen who ever get in trouble.

I gain more and and more respect for Rwanda

Here is an interesting and pragmatic piece on Angola


https://africacenter.org/spotlight/t...orm-in-angola/

Intresting is that while the Brazilian giant company Oderbrecht was heavily fined by the USA, and in Brazil itself, nothing actually happened in Angola itself. Another example
of a Western country prosecuting corruption and inaction in the country where it took place.

Angola requires a foreign company to have a local partner for infrastructure project. This was widely seen for what it was. God knows how many MPLA members partnered with the Chineae during the infrastructure splurge.

Its very clear that these projects were not carried out for the benefit of Angolans but to enrich politicians- like in EG where they have empty six lane motorways.
So when I was asking questions about why sudden “surprise” that santos is corrupt when did you waste all that time arguing I was defending them just to turn around and question the sincerity of what’s going on
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Old January 24th, 2020, 03:13 PM   #29864
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Old January 24th, 2020, 03:19 PM   #29865
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Barrick Gold's 'long safari' ends with Tanzania deal

DAR ES SALAAM (Reuters) - Canada’s Barrick Gold Corp (ABX.TO) signed a deal with Tanzania on Friday in which the government will take stakes in three gold mines, ending a long-running tax dispute and setting a template for negotiations with other firms.

It was signed by Barrick CEO Mark Bristow and Tanzanian minerals minister Doto Biteko at a ceremony in the commercial capital, Dar es Salaam.

It follows an announcement by the two sides in October in which they agreed to a payment of $300 million to settle outstanding tax and other disputes, the lifting of an export ban on concentrates and the sharing of future economic benefits from mines.

South Africa-born Bristow, describing the dispute as a “long safari” since it emerged in 2017, struck a conciliatory tone in a speech at the ceremony broadcast on state TV. Safari means “journey” in Swahili.

Many people said your criticism will chase away investors ... what it’s done is challenge the mining industry and all of us to embark on something where we win together or lose together,” Bristow said to applause.

Casting himself as a “Zulu boy” born in Zululand, Bristow called it a “historical day” for Africa.

President, what I am here to do today is to offer you the hand of Barrick,” the CEO added, moving from the lectern to shake President John Magufuli’s hand.

The company said it had budgeted $50 million for brown and greenfield exploration in Tanzania in 2020.

I thank God for the success of this agreement, said Magufuli, who has made a point of extracting more income from natural resources and described the negotiations as a clash between a cow and a rabbit.

He said confiscated containers of gold and copper concentrate could now be exported to the benefit of Twiga Minerals, a new joint venture set up to manage the Bulyanhulu, North Mara and Buzwagi mines.

Twiga Minerals represents a structure which allows the government and the people of Tanzania to be involved in the decision-making of everything that we do together,” Bristow said.

Foreign Affairs Minister Palamagamba Kabudi, who led Tanzania’s negotiating team, said Tanzania now owns 16% undiluted shares in Twiga Minerals, as well as a 16% stake in each of the Barrick mines.

We almost lost hope in the discussions with Barrick and I was ready to tender my resignation to the president for failing to complete this task, but we ultimately got the deal done,” Kabudi said.

The dispute originally involved Acacia Mining, which was bought out by Barrick. The government imposed a ban on exporting mineral concentrates in 2017 after accusing Acacia of tax evasion, leading to a one-third cut in the miner’s output.

RENEGOTIATING ALL DEALS

Minerals make up the majority of Tanzania’s exports and are a key source of foreign exchange for Africa’s fourth-biggest gold producer.

The government said it is renegotiating mining agreements with all existing companies to get a minimum 16% stake in each large-scale mine, in accordance with mining laws passed in 2017.

Mining licences from now on will be issued by Tanzania’s Mining Commission under the guidance of the president, Kabudi said.

South African miner AngloGold Ashanti’s (ANGJ.J) Geita is the largest gold mine in Tanzania. Other miners operating in the country include Shanta Gold (SHAN.L) and Petra Diamonds (PDL.L).

It’s encouraging for all stakeholders in the mining industry that Tanzania and Barrick have formalised an agreement and have started a new chapter in the country,” said an AngloGold Ashanti spokesman.

This deal is a sigh of relief not just for Barrick or the mining industry in Tanzania, but for investors in the broader region,” said Margarita Dimova, associate director at consulting firm Africa Practice.

A mining executive working in Tanzania said the agreement was positive for the sector: “A lot of key issues impacting projects getting off the ground were being pushed aside until the Barrick deal was sorted.



https://www.reuters.com/article/us-t...-idUSKBN1ZN0TF
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Old January 24th, 2020, 03:25 PM   #29866
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Nigeria to consider overhaul of private power sector –NEC

ABUJA (Reuters) - The Nigerian government will consider an overhaul of the private power sector, government officials said following the National Economic Council meeting on Thursday.

The power sector was privatized in 2013, but some 80 million Nigerians remain without access to power, and elsewhere the grid is plagued by frequent blackouts, leaving businesses and consumers reliant on power generators.

The entire sector is broken,” Kaduna state governor Nasir Ahmad El-Rufai said following the meeting.

The NEC passed a resolution at Thursday’s meeting that the privitization of the sector needed to be re-examined.

Solutions must be found; those solutions are not going to be nice,” he said.

Plans to build privately financed power stations have been railroaded in recent years by concerns about persistent shortfalls in payments for electricity across the sector.

Currently, the government-owned Nigerian Bulk Electricity Trading company (NBET) buys power from generators and passes it on to distributors who then collect money from customers and reimburse NBET.

But because NBET is not paid in full for the power it buys, private power generators have been partly reimbursed from an emergency central bank loan fund created to keep the sector afloat.

El-Rufai said the government had supported the sector with 1.7 trillion naira ($5.56 billion) over the past three years.

He said the NEC was listening to all stakeholders and called on Nigerians to withhold judgement until the NEC issued its final report.

($1 = 305.9500 naira)



https://af.reuters.com/article/inves...BN1ZN0HJ-OZABS

https://www.reuters.com/article/us-n...-idUSKCN1OK1IQ
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Old January 24th, 2020, 03:26 PM   #29867
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Tanzanian home affairs minister fired over $453 mln contract

DAR ES SALAAM (Reuters) - Tanzanian President John Magufuli fired his home affairs minister Kangi Lugola on Thursday, accusing him of mismanaging a 408 million euro ($453 million) fire department contract.

Magufuli, who faces re-election for a second five-year term this year, has cultivated the image of a hard-nosed leader who swiftly fires ministers and officials who do not toe his line.

The fire department, which falls under the home affairs ministry, had signed the contract with an unnamed Romanian firm without involving the finance ministry or securing parliamentary approval, Magufuli said.

The major issue here is the lack of integrity,” he told a government event in the commercial capital Dar es Salaam.

They have signed a Memorandum of Understanding but within the contract it has been stipulated that to terminate the contract, all activities that had been implemented will continue to be implemented.”

The deal was for the purchase of fire fighting and rescue equipment, Magufuli’s office said in a statement.

Lugola said he accepted the president’s decision to relieve him of his cabinet post.

...



https://af.reuters.com/article/afric...BN1ZM23S-OZATP
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Old January 24th, 2020, 03:27 PM   #29868
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Old January 24th, 2020, 03:42 PM   #29869
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Is West Africa’s Eco currency just an echo of the colonial past?

Is Francophone West Africa’s proposed new currency a step towards a monetary future completely independent from France?

The decision by eight mainly Francophone West African countries to abandon the CFA currency they have used since before their independence from France has been widely trumpeted as representing the end of an epoch.

But it has also been controversial. And on closer inspection it looks more symbolic than substantive. To some it seems like cutting the more obvious – but less important – neo-colonial monetary ties with Paris, but not quite letting go of the apron string that matters most: the CFA peg to the euro.

Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo (all former French colonies except Guinea-Bissau) are the West African Economic and Monetary Union (UEMOA) member states. They, together with Ivorian President Alassane Ouattara and French President Emmanuel Macron, announced in December that the West African CFA would be dropped in favour of a new regional currency, the Eco, named after the Economic Community of West African States (ECOWAS).

But the six non-CFA ECOWAS member states – The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone – meeting last week under the umbrella West African Monetary Zone (WAMZ), denounced UEMOA for pre-empting the name ‘Eco’. This was the name ECOWAS agreed on last year for the common currency for the whole region.

Ouattara and co. were perhaps trying to put a rocket under ECOWAS, which has been taking long to get its Eco airborne. It was meant to happen this year. Now the firm objection of WAMZ – including the heavyweight economies of Nigeria and Ghana – has put a big question mark over it, and perhaps the ECOWAS Eco.

UEMOA’s unilateral move has divided West Africa, pitting francophones against anglophones

Essentially the UEMOA countries plan to drop two provisions of the CFA. They would no longer be required to deposit 50% of their reserves with the French Treasury, and the French government would no longer deploy officials to serve on UEMOA’s central bank. But significantly, the Eco would still be pegged to the euro at a fixed exchange rate which France would guarantee as it has the CFA.

The UEMOA countries were under enormous social and political pressure to scrap the ‘neo-colonial’ CFA. So it’s tempting to see the change as more of a symbolic severing of ties with the old colonial master than a real move into full monetary independence. The CFA was introduced in 1945 to help stabilise the currencies and economies of France’s African colonies, and most elected to keep it after independence.

The CFA succeeded in its economic objectives. But the many African critics of Paris’s post-colonial Françafrique policy – to maintain effective control of its former African colonies – deplored the continuing French participation in running the CFA. The presence of French Treasury officials in the West African central bank was an obvious red rag to these critics.

Even more so was the requirement that the West Africans keep half their reserves in the French Treasury. This spawned theories about how the West African states were effectively financing France’s deficit and so on. French officials insist the tiny contribution of West African reserves have never made any substantial difference to France’s economy.

They also note that the West African reserves in the French Treasury earn interest for the UEMOA states. While the West African nations wouldn’t have to keep half their reserves in Paris under the new deal, they could keep as much there as they wanted. The officials also insist that the representation of the French Treasury in the West African regional bank is technical and not substantive in forming policy.


...



https://issafrica.org/iss-today/is-w...-colonial-past
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Old January 24th, 2020, 03:45 PM   #29870
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China-built affordable housing units handed over to Kenya

NAIROBI, Jan. 16 (Xinhua) -- More than 200 affordable housing units built by a Chinese firm in Nairobi were on Thursday handed over to the government to pave way for their allocation to the public at a subsidized cost.

Charles Hinga, principal secretary in the State Department of Housing and Urban Development said the 228 housing units will be available to buyers through a transparent process.

"The first batch of the flagship housing units demonstrates the government's commitment to deliver the affordable housing agenda," said Hinga, adding that the remaining housing units will be completed at the end of 2020.

Kenya plans to develop 500,000 housing units by 2022 to help meet growing demand in major cities and towns.

Government statistics indicate that the east African nation has an annual demand of 250,000 housing units but has only been developing 50,000 units due to financing bottlenecks.

Hinga said the implementation of affordable housing projects has gathered steam in Nairobi and adjacent satellite towns to help realize the dream of homeownership among low to middle-income earners.

He said the government has rolled out incentives that include speedy issuance of permits, removal of value-added tax (VAT) on construction materials and reduction of corporate taxes for private developers, to help achieve the affordable housing agenda.

He said that an electronic platform has been developed to facilitate transparent allocation of the 228 housing units located near downtown Nairobi to potential buyers.

http://www.xinhuanet.com/english/afr..._138713136.htm
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Old January 24th, 2020, 03:48 PM   #29871
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Quote:
Originally Posted by ekema View Post
So when I was asking questions about why sudden “surprise” that santos is corrupt when did you waste all that time arguing I was defending them just to turn around and question the sincerity of what’s going on


Consistent critics when Africans here were defening them.

The ones who actually fined the likes of Oderbrecht. Angola did nothing.

DB and others refused to work with IDS for fear of prosecutiom according to now deceased right hand man.

No mention from you of the Chinese companies which participated in MPLA graft. That is what fake outrage looks like.
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Old January 24th, 2020, 04:07 PM   #29872
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Nigeria to consider overhaul of private power sector –NEC

ABUJA (Reuters) - The Nigerian government will consider an overhaul of the private power sector, government officials said following the National Economic Council meeting on Thursday.

The power sector was privatized in 2013, but some 80 million Nigerians remain without access to power, and elsewhere the grid is plagued by frequent blackouts, leaving businesses and consumers reliant on power generators.

The entire sector is broken,” Kaduna state governor Nasir Ahmad El-Rufai said following the meeting.

The NEC passed a resolution at Thursday’s meeting that the privitization of the sector needed to be re-examined.

Solutions must be found; those solutions are not going to be nice,” he said.

Plans to build privately financed power stations have been railroaded in recent years by concerns about persistent shortfalls in payments for electricity across the sector.

Currently, the government-owned Nigerian Bulk Electricity Trading company (NBET) buys power from generators and passes it on to distributors who then collect money from customers and reimburse NBET.

But because NBET is not paid in full for the power it buys, private power generators have been partly reimbursed from an emergency central bank loan fund created to keep the sector afloat.

El-Rufai said the government had supported the sector with 1.7 trillion naira ($5.56 billion) over the past three years.

He said the NEC was listening to all stakeholders and called on Nigerians to withhold judgement until the NEC issued its final report.

($1 = 305.9500 naira)



https://af.reuters.com/article/inves...BN1ZN0HJ-OZABS

https://www.reuters.com/article/us-n...-idUSKCN1OK1IQ
these companies should be private, with subsidies, and preferably listed publicly so their books can be examined
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Old January 24th, 2020, 04:12 PM   #29873
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Quote:
Originally Posted by Umoja View Post
Is West Africa’s Eco currency just an echo of the colonial past?

Is Francophone West Africa’s proposed new currency a step towards a monetary future completely independent from France?

The decision by eight mainly Francophone West African countries to abandon the CFA currency they have used since before their independence from France has been widely trumpeted as representing the end of an epoch.

But it has also been controversial. And on closer inspection it looks more symbolic than substantive. To some it seems like cutting the more obvious – but less important – neo-colonial monetary ties with Paris, but not quite letting go of the apron string that matters most: the CFA peg to the euro.

Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo (all former French colonies except Guinea-Bissau) are the West African Economic and Monetary Union (UEMOA) member states. They, together with Ivorian President Alassane Ouattara and French President Emmanuel Macron, announced in December that the West African CFA would be dropped in favour of a new regional currency, the Eco, named after the Economic Community of West African States (ECOWAS).

But the six non-CFA ECOWAS member states – The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone – meeting last week under the umbrella West African Monetary Zone (WAMZ), denounced UEMOA for pre-empting the name ‘Eco’. This was the name ECOWAS agreed on last year for the common currency for the whole region.

Ouattara and co. were perhaps trying to put a rocket under ECOWAS, which has been taking long to get its Eco airborne. It was meant to happen this year. Now the firm objection of WAMZ – including the heavyweight economies of Nigeria and Ghana – has put a big question mark over it, and perhaps the ECOWAS Eco.

UEMOA’s unilateral move has divided West Africa, pitting francophones against anglophones

Essentially the UEMOA countries plan to drop two provisions of the CFA. They would no longer be required to deposit 50% of their reserves with the French Treasury, and the French government would no longer deploy officials to serve on UEMOA’s central bank. But significantly, the Eco would still be pegged to the euro at a fixed exchange rate which France would guarantee as it has the CFA.

The UEMOA countries were under enormous social and political pressure to scrap the ‘neo-colonial’ CFA. So it’s tempting to see the change as more of a symbolic severing of ties with the old colonial master than a real move into full monetary independence. The CFA was introduced in 1945 to help stabilise the currencies and economies of France’s African colonies, and most elected to keep it after independence.

The CFA succeeded in its economic objectives. But the many African critics of Paris’s post-colonial Françafrique policy – to maintain effective control of its former African colonies – deplored the continuing French participation in running the CFA. The presence of French Treasury officials in the West African central bank was an obvious red rag to these critics.

Even more so was the requirement that the West Africans keep half their reserves in the French Treasury. This spawned theories about how the West African states were effectively financing France’s deficit and so on. French officials insist the tiny contribution of West African reserves have never made any substantial difference to France’s economy.

They also note that the West African reserves in the French Treasury earn interest for the UEMOA states. While the West African nations wouldn’t have to keep half their reserves in Paris under the new deal, they could keep as much there as they wanted. The officials also insist that the representation of the French Treasury in the West African regional bank is technical and not substantive in forming policy.


...



https://issafrica.org/iss-today/is-w...-colonial-past
always this nonsense of presenting africa as anglo or francophones, incorrect and unproductive.

anyway, good to finally see what was clear from the start that this was rubbish. nothing changed
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Old January 24th, 2020, 04:13 PM   #29874
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Consistent critics when Africans here were defening them.

The ones who actually fined the likes of Oderbrecht. Angola did nothing.

DB and others refused to work with IDS for fear of prosecutiom according to now deceased right hand man.

No mention from you of the Chinese companies which participated in MPLA graft. That is what fake outrage looks like.
nothing you've said makes any sense
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Old January 24th, 2020, 06:05 PM   #29875
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If loan projects cant increase revenue it shows they werent thought out well.

Many SSA nations will find out early this decade that the projects they took out loans on will not increase revenue to make the repayments.
How a significant portion of government projects make money is never a clear cut thing.

A motorway or bypass project won't directly and immediately fatten the government's purse on opening up unless it is tolled. Its aim will be not only to boost rate of business actualisation by reducing traffic bottlenecks but also to spur private investments along this corridor that will increase economic activities.

Now these 2 aren't wholly dependent on if the motorway is even feasible, they also will rely on things like ease of starting a business, prevalence of corruption more specifically by traffic cops and their unlawfully lawful road blocks, availability of skilled labor, rate of growth of demand etc.

In my opinion, the bulk of these projects are very feasible, it's the lack of streamlining of other accompanying factors that make their rate of returns generation unsatisfactory. The solution is not doing away with the projects altogether but improving on these other factors.
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Old January 24th, 2020, 08:05 PM   #29876
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Agreed, essential services especially public funded healthcare and transport rarely make direct profits even in the most capitalistic countries, but the overall benefits to society outweigh the losses.

The public funded health system in the UK (NHS) is drowning in debt including emergency loans, partly because of doctors costs but I think very few Brits would agree to the system being privatized despite the huge losses it incurs.





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Old January 24th, 2020, 11:19 PM   #29877
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Originally Posted by Afro Circus View Post
How a significant portion of government projects make money is never a clear cut thing.



A motorway or bypass project won't directly and immediately fatten the government's purse on opening up unless it is tolled. Its aim will be not only to boost rate of business actualisation by reducing traffic bottlenecks but also to spur private investments along this corridor that will increase economic activities.



Now these 2 aren't wholly dependent on if the motorway is even feasible, they also will rely on things like ease of starting a business, prevalence of corruption more specifically by traffic cops and their unlawfully lawful road blocks, availability of skilled labor, rate of growth of demand etc.



In my opinion, the bulk of these projects are very feasible, it's the lack of streamlining of other accompanying factors that make their rate of returns generation unsatisfactory. The solution is not doing away with the projects altogether but improving on these other factors.


Government takes out a loan to build something- even if it may make a direct loss on it, the overall revenue to the government will increased due to eg increased businesses which arise from the project.

That money is used to pay off the loan.

Otherwise the government cant pay back the loan.

The overall (both direct and indirect) returns in SSA have been way less than expected for the money spent. Which is why naive nations like Cameroon expected their loan-backed projects to lift growth to 9-10%...it didnt....and now they are in trouble paying back the loans.

Expect a lot more of this to come.

You have to be smart with how you spend your money eg Ghana and BF working together on a single tender for a railway so Ghana will reap the benefit of freight (which is the profit-maker) straight away rather than twiddling thumbs while paying interest for a loan.

Fiscal prudency seems almost absent in SSA unfortunately. You see it in the governments, you see it on SSC.

People seem to want to rush to complete pet projects without thinking of the consequences.

If you want a laugh, look up how much Ghana is paying for excess power every year. You cant make it up.
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Old January 25th, 2020, 03:38 AM   #29878
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DRC’s giant Inga III dam: Spanish firm ACS throws in the towel




Actividades de Construccion y Servicios (ACS), a member of one of the two groups in charge of the development of the Inga III hydroelectric mega-dam project in the Democratic Republic of Congo (DRC), announced its exit from the project.

The decision comes at a time when the Chinese and European consortia have been unable to agree on the constitution of a joint consortium, required by the Congolese presidency, to carry out the project.

Rumble on the Congo River

Tensions between the consortium members, chosen by the Congolese government to develop the Inga III project, were revealed in a report published in October 2019 by the NGO Resource Matters and the Congo Study Group (CSG). Now, one of the partners in the project — worth an estimated $14bn — has thrown in the towel. The Spanish construction group ACS, which leads the European branch of the consortium via its subsidiary Cobra Instalaciones y Servicios, “will not participate in the execution of the project”, according to a report in Bloomberg on 20 January.

With a capacity of 11,000MW, the Inga III project is part of Grand Inga, a series of dams designed to exploit up to 40,000MW of electricity from the Congo River. If successful, Inga III will become the largest hydropower plant in sub-Saharan Africa. Its development was entrusted by the Congolese government, in October 2018, to two China Inga III groups, led by China Three Gorges Corporation and ProInga, which, in addition to ACS, includes the German turbine manufacturer, Andritz, and the Spanish energy specialist, AEE Power.

https://www.theafricareport.com/2257...the-towel/amp/
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Old January 25th, 2020, 01:55 PM   #29879
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Originally Posted by popa1980 View Post
Government takes out a loan to build something- even if it may make a direct loss on it, the overall revenue to the government will increased due to eg increased businesses which arise from the project.

That money is used to pay off the loan.

Otherwise the government cant pay back the loan.

The overall (both direct and indirect) returns in SSA have been way less than expected for the money spent. Which is why naive nations like Cameroon expected their loan-backed projects to lift growth to 9-10%...it didnt....and now they are in trouble paying back the loans.

Expect a lot more of this to come.

You have to be smart with how you spend your money eg Ghana and BF working together on a single tender for a railway so Ghana will reap the benefit of freight (which is the profit-maker) straight away rather than twiddling thumbs while paying interest for a loan.

Fiscal prudency seems almost absent in SSA unfortunately. You see it in the governments, you see it on SSC.

People seem to want to rush to complete pet projects without thinking of the consequences.

If you want a laugh, look up how much Ghana is paying for excess power every year. You cant make it up.
I don't know if you are objecting or agreeing with my postulations for your post sounds like a sword, double edged.

I'll clarify my point further. A 100km motorway in hebei China will have even up to 4 times the rate of return of a similar highway in Gauteng SA or Nairobi Kenya.

This is because in China, the massive Banks will give potential manufacturers massive cheap loans, they will be given top priority in land ownership along the corridor, corrupt officials will be less of a hurdle and the government will either be a major buyer of these industrial output or will give amazing tax incentives that they'll be able to dump in any unrestricted market


In Gauteng/Nairobi, the bank lending rates make borrowing to invest in manufacturing very untenable, land barons will wait for the motorway construction with baited breath for the land value may appreciate by up to 5 times. And they may not even sell in anticipation of it going up even more this locking out potential manufacturers. Corruption is a key hurdle and is among the larger costs of operation. And after you've struggled through all the above, the Govt will still slap you with exorbitant taxes and tarrifs, will go ahead and import from China what you are producing and won't negotiate for better trade deals for that product without proper 'motivation'

So as I said, both projects are feasible, it is the other affecting factors that haven't been streamlined.
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Old January 25th, 2020, 05:45 PM   #29880
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This is getting boring- ekema will defend the indefensible...safe from the comfort of NYC

I hope she gets charged and arrested in the Uk. I dont see how our government can not do something after this documentary. We have a newish law about unexplained or illegal wealth.

The first person to be charged was, funnily enough, an Azerbajani wife of a corrupt politician.

Some heads are going to roll at PWC and other consulting firms.
It's like that time he argued there is no difference in how Chinese and American/British governments treat corporate corruption abroad, despite the legislation and penalties. Some argue for the sake of it.
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