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Old Yesterday, 08:51 PM   #27441
Umoja
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Nigeria's diesel-dependent economy braces for clean-fuel rules

LAGOS (Reuters) - Nigeria’s frenetic commercial capital, Lagos, is plunged into darkness several times a day. Then its generators roar, and the lights flood back on.

Nigeria is one of the world’s largest economies where businesses rely so heavily on diesel-powered generators.

More than 70% of its firms own or share the units, while government data shows generators provide at least 14 gigawatts of power annually, dwarfing the 4 gigawatts supplied on average by the country’s electricity grid.

The machines guzzle cash and spew pollution, but they are reliable in a nation where nearly 80 million people - some 40% of the population - have no access to grid power. Now diesel costs could spike globally, and many businesses are not prepared.

Diesel prices are expected to surge as United Nations rules aimed at cleaning up international shipping come into effect on Jan. 1, with many ships expected to burn distillates instead of dirtier fuel oil.

Slowing economic growth and nascent trade wars could blunt a price spike, and as the shipping industry adapts to the rules, vessels will likely consume less diesel. But in the short term their impact could be profound.

Estimates vary widely, but observers warn that prices could surge by nearly 20%.

Higher costs for operating generators that power the machinery, computer servers and mobile phone towers that run Nigeria’s economy could impair growth in gross domestic product, already limping along at 1.92% at a time inflation is at 11%.

With the population growing at 2.6% each year, people are getting poorer.

In an environment like this, where discretionary spending is very limited, this could have a big impact,” said Temi Popoola, West Africa chief executive for investment bank Renaissance Capital.

A 20% price rise could shave 0.2% off GDP growth, he said.

GENERATORS EVERYWHERE

Nigeria and German engineering group Siemens agreed in July to nearly triple the country’s “reliable” power supply to 11,000 megawatts by 2023. But previous such plans have failed.

While many Nigerian household and small business generators are powered by price-capped gasoline, the big generators for larger firms, apartment complexes and more substantial homes can only run on diesel.

Businesses may struggle to survive, or in the best case scenario, would at least downsize,” said Tunde Leye, a Lagos-based analyst with SBM Intelligence. Diesel is the second or third biggest cost for many Nigerian firms, he said.

The oil industry, the Nigerian economy’s biggest driver, would not take a big hit as it does not rely on Nigerian consumers being willing to absorb extra costs it has to pass on. As fuel producers in their own right, its firms can also recoup costs more easily.

But other heavyweight industries would feel pain. Bank branches rely on generators, with diesel often accounting for 20-30% of banks’ operating expenses, according to Popoola.

Telecommunications companies need them to run their mobile phone towers across the country. Telecoms giant MTN told local media in 2015 that it spends 8 billion naira ($26 million) annually on diesel.

Even bakeries need diesel. At Rehoboth Chops & Confectioneries Ltd, a bakery in the Ogba district of Lagos, giant diesel-powered ovens bake hundreds of loaves of bread. The factory runs 24 hours a day, six-and-a-half days a week.

The lights, mixers and fans that clear the heat are powered by two large diesel generators outside. The ovens run directly on diesel, so they never cut out.

...



https://af.reuters.com/article/afric...BN1W21TO-OZABS
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Old Yesterday, 08:59 PM   #27442
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Africa already converted into IMF's gospel, Kenyan central banker says

NAIROBI (Reuters) - Africa has embraced sound economic policies and even the political class has started to appreciate the importance of such policies, Kenya’s central bank governor said on Wednesday.

Although some economies in the 54-nation continent have recorded some of the fastest economic growth rates in recent years, critics say some policies need to be changed to deepen the growth and make it inclusive.

Good policies are good for the economy, they are good for the people,” Patrick Njoroge told an investor forum in Nairobi that was organised by Renaissance Capital.

There is a greater acceptance and indeed appreciation of that ... There is no preaching by the IMF or what you call the Washington consensus. We are already converted in terms of solid policies.

Kenya embraced a free market economy in the 1990s, opening up its capital markets to foreign investment without any restrictions. It also has a free-floating foreign exchange regime and a diversified economy that is underpinned by farm exports like tea and coffee, as well as tourism.

The International Monetary Fund has in the past gotten into confrontations with some African governments due to its policy prescriptions that were sometimes deemed as too painful, such as spending cuts and reduction of public wage bills.

Njoroge, who was a senior IMF adviser in Washington before taking his current job in 2015, said the growing appreciation of the need for good economic policies was spreading even to the ruling class, citing low fiscal deficits and central bank independence.

Those are things they may not fully accept, but for the most part they understand that we need to pursue positive policies and indeed strong policies,” he said.

Kenya, where inflation expectations are well-anchored, was a good representation of what is happening on the continent, he said.

Year-on-year inflation stood at 5.0% last month, at the mid-point of the government’s preferred band of 2.5-7.5%.

He said the main threat to the outlook for inflation was the fluctuating price of oil, adding that policymakers had adequate tools and experience to deal with the threat.

...



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Old Yesterday, 09:08 PM   #27443
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Uganda Prepares to Invite Bids to Restart Idled Copper Mines

Uganda said it’s preparing to invite bids to restart the idled Kilembe copper mines, after a deal with a Chinese-led group collapsed more than two years ago.

Proposals will involve the government taking a stake under a production sharing agreement, the Kampala-based Ministry of Energy and Mineral Development said in a report. The ministry will shortlist and evaluate interested companies.

In April, the Uganda government said 28 companies had expressed interest in revamping the mines, near the border with the Democratic Republic of Congo. Output peaked in 1970, before the operation was put under care and maintenance in 1982.

The search for a new investor follows the collapse of an agreement with a group led by China’s Tibet Hima Mining Co., which had pledged to invest $175 million after winning the concession in 2013.



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Old Yesterday, 10:04 PM   #27444
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Niger, China launch oil pipeline project crossing Benin

NIAMEY: Niger and China are to build a 2,000-kilometre (1,250-mile) pipeline to carry crude oil from southeast Niger to the port of Seme in Benin, the Niger president’s office announced Wednesday.

President Mahamadou Issoufou launched the project on Tuesday at the Agadem oil field in the southeast of the country, where the China National Petroleum Corporation (CNPC) has been extracting oil since 2011.

It is expected to take 42 months to complete at a cost of $4.5 billion.

Until now, Niamey has moved crude out via Chad to a port in Cameroon, but deadly jihadist attacks in Nigeria have spilled over the border making the region unstable.

Niger’s Oil Minister Foumakoye Gado signed the deal on Sunday with Wang Zhong Cai, president of the China National Oil and Gas Exploration and Development Corporation, a CNPC subsidiary. -- AFP



https://www.msn.com/en-my/news/natio...nin/ar-AAHtYco
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Old Today, 03:36 AM   #27445
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UCT graduates among most employable in the world - survey


The University of Cape Town produces graduates who are among the most employable in the world, according to the 2020 Quacquarelli-Symonds (QS) Graduate Employability Rankings released on Thursday.

The university, named as the leading institution on the continent, is placed at position 91. It is the first time that it has made to the Top 100, in a list which analysed the proportion of recent graduates who are employed, among other things.

"This result is evidence of the exceptional calibre of UCT’s graduates and the institution as a whole," said Vice-Chancellor Professor Mamokgethi Phakeng.

"We know the quality of our graduates is high, but this just confirms it for the international community."

A total of 499 universities from around the world were ranked, in a list dominated by institutions from the US, Europe and China.

Holding the top spot in the employability rankings is Massachusetts Institute of Technology (MIT), with Harvard University at position 5.

UCT said the two indicators where it performed best were graduate employment rate, where it scored 95.6 out of the possible total of 100, ranking 35th globally. It was placed 34th for alumni outcomes.

It said its biggest improvement was in the employer reputation indicator, where it jumped up 29 places.

The University of the Witwatersrand was within the 200 mark.

South Africa's official unemployment rate stands at 29%, and young people, including graduates, are the hardest hit.

https://www.fin24.com/Economy/South-...urvey-20190919
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Old Today, 04:13 AM   #27446
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Residential units in Africa's tallest building go on sale

Situated in the heart of Sandton's business district and standing taller than any other building in Africa, at 234 m, The Leonardo is only a couple of weeks away from being officially unveiled.

As of this week, residential units have been put on the market for potential buyers.

The Leonardo is the latest venture by property developer the Legacy Group and was built in partnership with Nedbank Corporate and Investment Banking.

To date, construction has totaled R3-billion for the 56-storey multi-use tower block.

More than 100 000 t of concrete was used in its construction. The tower features a range of amenities, including a spa, preschool, restaurant, conference centre and a 25-m-long swimming pool. In addition, a variety of local artists' work graces the walls in high-traffic areas within the building.

To ensure anyone passing through the building has ease of access, the full-length elevator is capable of traversing the full height of the tower, from ground level to the fifty-sixth storey in 57 seconds.

The Leonardo is also supported with electrical back-up generators capable of meeting 100% of the building's power requirements, as does its air conditioning system, thereby ensuring tenants, guests and visitors uninterrupted convenience.

The Leonardo houses retail tenants on the ground floor, as well as The Leonardo Lounge, bar and deli kitchen, in addition to the Leonardo Conference Centre on the third floor.

Level 7 encompasses the tower's recreational facilities, which include the Aurum Restaurant, Nature & Nurture Montessori preschool, an outdoor pool and deck with a gym and spa, five daybeds and a wood-fired themed restaurant - the Octo Bar.

Rising above the seventh floor is the tower itself, housing offices on the lower section of the tower and residential units mid-way.

The upper seven floors accommodate eight duplex penthouse suites, while the top three floors house the luxurious Leonardo Suite, which will be allocated to a single tenant willing to pay handsomely (in the region of about $18-million to $19-million) for a one-of-a-kind accommodation featuring 360° views and a private pool.

The roof is reserved for a private bar and entertainment deck to accommodate a small group of guests.

https://www.engineeringnews.co.za/ar...ale-2019-09-19
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Old Today, 04:19 AM   #27447
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$18 million must be the most expensive single apartment in Africa.
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Old Today, 06:35 AM   #27448
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Quote:
Originally Posted by popa1980 View Post
Kenya has a far more developed corporate sector than its neighbours so i wouldnt say ‘East Africa’.

Uganda was producing 300MW till a few years ago so not sure how advance it is in terms of manufacturing. Not sure Tanzania much better either.

But yes, Ghana has an incredibly fragmented business environment- we have no national clothes chains, supermarket chains, no large domestic engineering or architect firms etc etc

A country cant develop like this- Japan and Korea are good examples of this.

Not only that- but in terms of branding, advertising, corporate professionalism etc etc...Ghana is very underdeveloped. I look at a supermarket in Nairobi and compare with Accra. Theres very few things in Ghana of ‘western standard’. The last i was there, the largest supermarket was tiny.

As for CIV, its more developed in manufacturing but that is only because they have much more substantial Lebanese community who control most of the domestic value added sector. The Lebanese are similarly disproportionately involved in manufacturing in Ghana but are too small to be as dominant.
Kenya used to have a quite significant edge in business formalisation via a vis its EAC neighbors up until around 2011. Since then the gap has been eroded greatly.

Kenya-Uganda/Tanzania trade used to be mostly importing raw materials and exporting light manufacturers. Made in Kenya was a dominant brand in their shelves, helped by the fact that their largest supermarket chains were either Kenyan or South African.

Fast forward to now, the trade between Kenya and her neighbors has seen some key changes. Tanzanian toothpaste, cooking gas and energy drinks are among the biggest players in Kenya. Uganda's milk and sugar have taken up a significant portion of the Kenyan market. There is always talk of Kenya's exports to the EAC decreasing yoy. Though this can be partly attributed to stiffer competition from Asia and Kenyan manufacturers opening plants in these countries, there has been significant improvement in Tanzanian and Ugandan manufacturing.
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Old Today, 08:56 AM   #27449
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Not entirely true. Almost all of TZ and Uganda's exports to Kenya are still raw materials for industry, as opposed to their imports from Kenya which are motor vehicles, pharmaceuticals and plastics. This is why the surge in imports from these two countries hasn't bothered the govt, because these cheaper imports keep Kenyan finished products competitive internationally. Farm inputs, especially labor cost are significantly lower in TZ and UG. Some of these products are repackaged in Kenya and exported to Europe and Asia. Made in Uganda or Tanzania products in Kenyan shelves are still rare and they are certainly not the biggest market players in any FMCG industry I know of. In SSA only SA has a more formalized market than Kenya. Although TZ and UG's manufacturing has picked up, Kenya's private sector is still much more advanced that is why almost every major company operating in the EAC have their headquarters in Kenya.


Tanzania's exports to Kenya
Cereals $65.70M
Residues, wastes of food industry, animal fodder $64.40M
Electrical, electronic equipment $62.17M
Articles of iron or steel $29.49M
Beverages, spirits and vinegar $17.35M
Paper and paperboard, articles of pulp, paper and board $15.42M

Uganda's exports to Kenya
Coffee, tea, mate and spices $86.62M
Cereals $79.93M
Residues, wastes of food industry, animal fodder $78.35M
Edible vegetables and certain roots and tubers $75.36M
Dairy products, eggs, honey, edible products $62.19M
Tobacco and manufactures tobacco substitutes $50.23M

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Originally Posted by Afro Circus View Post
Kenya used to have a quite significant edge in business formalisation via a vis its EAC neighbors up until around 2011. Since then the gap has been eroded greatly.

Kenya-Uganda/Tanzania trade used to be mostly importing raw materials and exporting light manufacturers. Made in Kenya was a dominant brand in their shelves, helped by the fact that their largest supermarket chains were either Kenyan or South African.

Fast forward to now, the trade between Kenya and her neighbors has seen some key changes. Tanzanian toothpaste, cooking gas and energy drinks are among the biggest players in Kenya. Uganda's milk and sugar have taken up a significant portion of the Kenyan market. There is always talk of Kenya's exports to the EAC decreasing you. Though this can be partly attributed to stiffer competition from Asia and Kenyan manufacturers opening plants in these countries, there has been significant improvement in Tanzanian and Ugandan manufacturing.
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Old Today, 09:38 AM   #27450
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Originally Posted by suaveiskevin View Post
Not entirely true. Almost all of TZ and Uganda's exports to Kenya are still raw materials for industry, as opposed to their imports from Kenya which are motor vehicles, pharmaceuticals and plastics. This is why the surge in imports from these two countries hasn't bothered the govt, because these cheaper imports keep Kenyan finished products competitive internationally. Farm inputs, especially labor cost are significantly lower in TZ and UG. Some of these products are repackaged in Kenya and exported to Europe and Asia. Made in Uganda or Tanzania products in Kenyan shelves are still rare and they are certainly not the biggest market players in any FMCG industry I know of. In SSA only SA has a more formalized market than Kenya. Although TZ and UG's manufacturing has picked up, Kenya's private sector is still much more advanced that is why almost every major company operating in the EAC have their headquarters in Kenya.


Tanzania's exports to Kenya
Cereals $65.70M
Residues, wastes of food industry, animal fodder $64.40M
Electrical, electronic equipment $62.17M
Articles of iron or steel $29.49M
Beverages, spirits and vinegar $17.35M
Paper and paperboard, articles of pulp, paper and board $15.42M

Uganda's exports to Kenya
Coffee, tea, mate and spices $86.62M
Cereals $79.93M
Residues, wastes of food industry, animal fodder $78.35M
Edible vegetables and certain roots and tubers $75.36M
Dairy products, eggs, honey, edible products $62.19M
Tobacco and manufactures tobacco substitutes $50.23M
Where did I say the biggest players, I said significant players.

I take it you are in Kenya right now. The biggest toothpaste brands are Colgate, Aquafresh then whitedent. Ever wondered where whitedent is made from? After Vaseline and valon in petroleum jellys is made in Tanzanian babycare. Tanzania's azam is probably the 2nd most popular PET energy drink in Kenya. Of the 3 examples, 2 are Tanzanian companies, one is a Tz branch of a global MNC. All would have been unheard of 10yrs ago.

From the data you've given, about 40% of those top exports by Tz and around 20% of UGs to Kenya are manufacturers. Pre 2011, that would have been below 10%.

Kenya is of course quite a lot more formalized and industrialized, but the rest of the EAC is following her footsteps. It's why growth in the EAC has been mostly high even with uncertain political policies. Their growth is slowly becoming broad based, private driven and non resource dependent
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Old Today, 12:23 PM   #27451
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Sanlam plans to enter Ethiopia as it seeks to reduce South Africa dependence

Africa’s largest insurer Sanlam is in “very advanced” discussions with a prospective partner in Ethiopia to take advantage of the country’s economic growth prospects, Heinie Werth, the new CEO of Sanlam’s emerging markets unit, told The Africa Report in an interview.

The South African company is “very comfortable” with the progress made in the talks and an agreement may be reached “sooner rather than later,” Werth said.
  • While an initial agreement would not need a financial investment from Sanlam, the purchase of a stake in the partner could be discussed at a later stage, he added.
  • Sanlam has pursued a strategy of geographic and product diversification and operates in 33 African countries, as well as India, Lebanon and Malaysia. The company, Werth says, is targeting multi-national companies with the aim of becoming a “one-stop shop” for non-banking financial services.

Werth, previously the group’s chief financial officer, became Sanlam Emerging Markets CEO on August 1.
  • Ethiopia is “a thriving economy” with a fast-developing construction market, he said.
  • The prospective agreement could involve reinsurance and product pricing, he added.
  • The existing ban on foreign ownership in Ethiopia makes partnership the only viable route for entry there.
There have been signs of a more liberalized approach. In July, new legislation allowed members of the country’s diaspora to invest in the banking sector. And in August, Ethio Lease became the first foreign-owned company to obtain an Ethiopian financial-services license.
  • According to the Economist Intelligence Unit (EIU), Ethio Lease’s entry could have a transformative impact, as companies will be able to generate revenue without having to invest heavily in equipment.
  • The government targets 11% economic growth in 2019-20, while the EIU predicts an annual average of 7.6% from 2019 to 2023.

https://www.theafricareport.com/1742...ca-dependence/
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Old Today, 12:35 PM   #27452
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Quote:
Originally Posted by Afro Circus View Post
Where did I say the biggest players, I said significant players.
Quote:
Tanzanian toothpaste, cooking gas and energy drinks are among the biggest players in Kenya
It's literally right there.

Anyway, I get your point. TZ in particular has really improved it's manufacturing but apart from the energy drink and gas, there isn't much else made in tz in Kenya, the opposite is true though.
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