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Old Yesterday, 10:47 AM   #23181
NicSA
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This map shows the state of South Africa’s debt





Stats SA has published a new report looking at how government spending has changed over 13 years, and focusing on how much the country pays to service its debt.

If state expenditure is taken as a measure of better times, there was a three-year period (2005/6 to 2008/9) when government1 spent less than it earned, enjoying a surplus over that period, the organisation said.

However, it noted that this quickly shriveled under the strain of various factors – including the 2008–2009 global financial crisis.

“The economy floundered in 2008/09, sliding into recession for three consecutive quarters. Government revenue fell in 2009/10, mainly underpinned by a fall in tax collected from businesses,” Stats SA said.

“Revenue bounced back the following year, but not enough to lift government out of the red. Since 2007/08, government has consistently spent more than it earns.

“The deficit in 2016/17, for example, amounted to R156 billion,” it said.

According to Stats SA, a national budget deficit is not uncommon globally and should not automatically be seen in a negative light.

Countries generally borrow money to cover fiscal deficits so that they can provide services to their citizens, it said.

https://businesstech.co.za/news/gove...-africas-debt/
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Old Yesterday, 11:24 AM   #23182
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Mozambique power links to South Africa may take weeks to restore

Damage caused by Cyclone Idai to pylons in Mozambique that carry power to neighbouring countries may take weeks to repair, a state-power company official said.

The damage to Mozambican infrastructure has exacerbated rolling outages in South Africa, where state-owned utility Eskom is struggling to bring faulty generating units back online.

Mozambique’s 2,075-megawatt Cahora Bassa hydropower dam supplies almost three-quarters of its output to South Africa along a 1,400-kilometer (870-mile) transmission line.

An initial assessment of the destruction caused by the cyclone shows that at least one pylon collapsed and four or five others had minor damage, Mario Houane, an electrical engineer at state-owned Electricidade de Mocambique EP’s transmission division, said in an emailed response to questions.

Further evaluations are being hampered by damage to roads and bridges and continuing rains, he said.

“The priority at this point in time is to save as many people’s lives as possible (this is a national emergency) and, to exacerbate the situation, the weather outlook for the coming days is bleak,” Houane said. “My educated guess is that it may take at least two weeks” to repair the damage, he said.

South Africa implemented controlled blackouts for a seventh straight day on Wednesday.

The outages, aimed at reducing demand pressure on the grid, are crippling businesses and leaving roads gridlocked in cities throughout Africa’s most-industrialized economy.

https://businesstech.co.za/news/ener...ks-to-restore/
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Old Yesterday, 01:34 PM   #23183
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What makes Africa’s largest e-commerce platform African?

News of Jumia’s filing to go public on the New York Stock Exchange last week is stirring questions about what defines a startup as African.

While the company runs the largest e-commerce business across Africa with operations in 14 countries including Nigeria, Kenya, Morocco and Egypt, it is incorporated in Germany, has its headquarters in Dubai with its central tech team based in Portugal, and as its IPO filing shows, will be listed in New York.

Being a “German stock corporation” probably means it will pay the majority of its corporate taxes in Germany, but its subsidiaries will also pay local taxes in most countries. “There isn’t sufficient clarity on this matter,” says Aly-Khan Satchu, a Nairobi-based financial and investment analyst. “It’s basically called African because its business is in Africa but its ownership and a lot of the infrastructure is not on the continent.”

Then there’s the issue of its founders. Jumia was co-founded in 2012, by Sacha Poignonnec and Jeremy Hodara, two French former McKinsey associates who specialized in retail, packaging and e-commerce while with the consulting firm. The 38-year olds are from the traditional background of a lot of French executives via Paris business schools. They opened shop in Nigeria in 2012 alongside Tunde Kehinde (Nigerian) and Raphael Kofi Afaedor (Ghanaian) who both left the company in 2015.

The other member of Jumia’s senior management is chief financial officer Antoine Maillet-Mezeray, 49, who is also French. Jumia’s new supervisory board is a bit more African with names including Blaise Judja-Sato, the Cameroonian-American founder of VillageReach, Alioune Ndiaye, the Senegalese chief executive of Orange Middle East and Africa and Jonathan Klein, the South African-born co-founder of Getty Images.

It’s also worth noting Jumia’s management and staff in most countries are mostly local, including country heads.

As such, Jumia’s identity as an African company is based on the continent being its primary market. It’s a categorization that’s often seen in the African tech space for smaller startups and even long established tech businesses. Research methodology behind reports on venture funding trends in Africa often use primary markets as a defining standard for startups to be covered.

Partech Ventures and WeeTracker, two of the companies that publish annual reports, both include startups that have a primary market in Africa whether or not they are headquartered or incorporated on the continent. In compiling its reports, Nayantara Jha, co-founder of WeeTracker, says it considered the question of being incorporated outside the continent “but soon realized that the money was raised for Africa and not only by Africans.”

A growing number of mainstays in Africa’s tech ecosystems fit this bill. Zola Electric, the solar power company with operations in five African countries is headquartered in the Netherlands with a technical lab in San Francisco. Andela, the software developer training and outsourcing company with campuses in four African countries is incorporated and headquartered in New York.

“My standard for saying a startup is African is simple: the idea originates from Africa and it is founded by an African,” says Victor Asemota, a Nigerian tech veteran and investor.

https://qz.com/africa/1572318/what-m...rican-startup/
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Old Yesterday, 02:34 PM   #23184
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Eskom mess could dump SA back into recession this year

GDP growth will plummet by year’s end and signal a recession, which is two quarters of sub-zero growth, Michael Jacks, head of equity research in Johannesburg at Bank of America Merrill Lynch, told reporters on March 20 in the city’s Rosebank area.

“If stage four load shedding has to continue for the rest of the year, GDP growth will likely be negative and it will be question of how negative,” Jacks said. “Definitely there is a risk of recession.’’

The bank may have to adjust its forecast of a 1.3% growth in gross domestic production this year, up from 0.8% last year, partly based on the election of Cyril Ramaphosa to head the ruling African National Congress party last December. GDP growth may hit 1.7% in 2020, the bank said.

However, that optimism has been replaced by worries over how much impact Eskom’s load shedding will have on the economy.

What’s needed are structural reforms and most international investors are holding off investing in South Africa until after national elections in May when President Cyril Ramaphosa could have a stronger mandate to fix the country’s problems, John Morris, head of South African strategy at Bank of American Merrill Lynch, told the same briefing.

The reforms could be “easy” ones like streamlining the visa process to boost the tourism industry, an auction of airwave spectrum to broaden and cheapen internet access through competition, Morris said. Other needed reforms, such as in labour relations and restructuring Eskom will take longer, he said.

These needed reforms and others such as downsizing the cabinet may face opposition from within the ANC by factions loyal to former President Jacob Zuma. Sidelining that faction is “critical,” Jacks said. “Just in terms of business confidence, we do need a scenario where we have a strong Ramaphosa where he will push through the reforms.’’

Meantime, foreign investors are taking a wait-and-see approach.

https://citizen.co.za/business/21046...ion-this-year/
stage 4 is load-shedding 25% of the time what happened to the new Medupi & kuseli Power Stations stations ?
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Old Yesterday, 02:39 PM   #23185
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Ghana mulls longer-dated bonds, cedi to strengthen -Finance Minister



LONDON, March 20 (Reuters) - Ghana aims to issue longer-dated hard currency bonds in its next bond sale, Finance Minister Ken Ofori-Atta said on Wednesday, adding that he expected the cedi currency to strengthen in the months to come.



Ofori-Atta also said he expected to get confirmation from the International Monetary Fund that Ghana has successfully completed its programme with the lender.



He also confirmed that Ghana had no plan to extend its cooperation with the Fund beyond its annual Article 4 reviews.



The world’s second-largest cocoa producer has just completed a $3 billion bond sale with maturities of seven, 12 and 31 years. The order books had exceeded $21 billion - the highest ever for a sub-Saharan African bond sale - and nearly half of that was for the longest-dated issue, according to the finance ministry.



“We had a clear indication from investors that they are very interested in our longer-dated maturities,” Ofori-Atta told Reuters following an investor roadshow.



“We need longer-term financing for our infrastructure needs..and we will naturally keep extending the curve,” he said, adding that he had been approached by a number of investors about issuing a 50-year bond.



President Nana Akufo-Addo said in September that Ghana could issue a 100-year $50 billion bond as part of a long-term industrialisation plan, although analysts expressed doubt that Ghana had the capacity to undertake such a transaction.



Ofori-Atta said that he did not expect to come back to the market in 2019 and that a 2020 bond sale would have to be timed to take into account a general election scheduled for next year.



However, the finance ministry was keen to return to markets to raise funds and also for liability management, which accounted for a third of the bonds sold this week.



According to the IMF, Ghana is at high risk of external debt distress and had a debt-to-GDP ratio of 67.1 percent in 2018.



...



https://af.reuters.com/article/ghanaNews/idAFL8N21758G





With #Ghana’s $3bn issue the African Eurobond space has reached $100bn (outstanding bonds in $ & €). From a few pre-fin crisis debuts, to many debuts 2012-14. Then large issuance from #Egypt & #Nigeria over the past 3 years. #Benin makes it 21 countries.



All these countries are raising debt from bonds or Chinese loans- for projects which are supposed to bring greater growth, which brings in government revenue that can pay back the debt in future.

Sounds nice, except in most cases the growth isnt happening.

The cultural attitude towards debt in Africa is shocking. Some cultures are notoriously risk-averse and Africans are at the opposite end of that culture.

Its only a matter of time that countries will start to default on bond payments and those private investors will come for your kidneys as Argentina can tell you. Then you will get hysterical headlines and posts here about ‘evil’ Western institutions seizing assets.
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Old Yesterday, 02:52 PM   #23186
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All these countries are raising debt from bonds or Chinese loans- for projects which are supposed to bring greater growth, which brings in government revenue that can pay back the debt in future.

Sounds nice, except in most cases the growth isnt happening.

The cultural attitude towards debt in Africa is shocking. Some cultures are notoriously risk-averse and Africans are at the opposite end of that culture.

Its only a matter of time that countries will start to default on bond payments and those private investors will come for your kidneys as Argentina can tell you. Then you will get hysterical headlines and posts here about ‘evil’ Western institutions seizing assets.
africa is actually under leveraged. until recently nigeria had very little debt, but with the return to big men we are creeping back to heavy debt. this doesnt reflect the general africa attitude, but corruption since many of those who go into this debt arent thinking of the nation

however, in the case of debt thats connected to projects i don't see it as poor debt as long as the project brings direct and indirect benefits. these are dollar and euro bonds by the way. i dont now if they are for chinese projects but denominated in those currencies, but looks like it only represents 'western' debt
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Old Yesterday, 02:59 PM   #23187
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apparently some countries have paid back debts, but perhaps conditions are different today. they're certainly different in nigeria. but being able to pay these back isnt unusual

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Old Yesterday, 03:15 PM   #23188
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Benin Readies for Its First Foray Into Foreign Bond Markets

Country plans a benchmark sized, euro-denominated offering


Bond investors may be about to welcome a new kid on the emerging-market block: Benin.


The West African country -- gross domestic product about $10 billion -- is readying a series of meetings with would-be takers for a first ever sale of Eurobonds, according to a person familiar with the matter. Citigroup Inc., Natixis SA and Societe Generale SA have been hired to organize the meetings, which will take place in Europe and the U.S. from Tuesday, the person said, asking not to be identified because the matter isn’t public.


Benin would be the latest in a list of nations tapping international capital markets for the first time as the dovish turn by some of the world’s leading central banks spurs appetite for higher-yielding, higher-risk holdings. Emerging-market borrowers have raised about $385 billion in foreign bonds so far in 2019, a record on a year-to-date basis.



“Emerging markets sentiment has been much improved in 2019 and the conditions for a deal are better than last year,” said Gregory Smith, a fixed-income analyst at Renaissance Capital in London. “Uzbekistan did well with their recent debut issuance, suggesting if Benin can provide the investors with a good pitch there will be interest.”


Benin is rated B+ by S&P Global Ratings, four levels below investment grade but a step higher than Nigeria and Ghana, the region’s biggest economies. Its currency, the CFA-Franc, is also used by six other French-speaking nations in West Africa and Guinea-Bissau and is pegged to the euro at 655.957.

https://www.bloomberg.com/news/artic..._medium=social

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Old Yesterday, 05:47 PM   #23189
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African Business and Economy News

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africa is actually under leveraged. until recently nigeria had very little debt, but with the return to big men we are creeping back to heavy debt. this doesnt reflect the general africa attitude, but corruption since many of those who go into this debt arent thinking of the nation

however, in the case of debt thats connected to projects i don't see it as poor debt as long as the project brings direct and indirect benefits. these are dollar and euro bonds by the way. i dont now if they are for chinese projects but denominated in those currencies, but looks like it only represents 'western' debt


Nigeria isnt the only country in SSA tho.

Yes SSA were loaded with debt in the 90s, then won a lot of debt forgivness from the traditional lenders (WB/IMF/rich nations), now have piled on debt again via bonds and China.

I have already said that- the idea is that they finance projects which bring growth- but often its not happening. Cameroon is a good case- they predicted their loans would fund projects which would have brought 10% growth by now...it didnt happen.

I keep on saying- infrastructure is only one part of the puzzle. Its not like magic that you build and everything becomes rosy. In Cameroon, I dont see any reform in the pro-business environment ie corruption, governance or ease of business measures.

The Chinese wont be as generous as the IMF/WB was with debt forgiveness- and as for Western finance instutition- they will come for everything if you dont pay the bond payments....as Argentina knows. An Argentinian ship was actually bound in Ghana some years ago after a vulture fund went for them. Then people here will be crying neo-colonialism.
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Old Yesterday, 06:35 PM   #23190
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In the perspective of an international deployment.
The Foreign Bank of Algeria (BEA) increases its share capital

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MARCH 20, 2019

The Foreign Bank of Algeria (BEA) has increased its share capital by 230 billion dinars as part of a development strategy aimed, in particular, according to the minutes of deliberation of the extraordinary general meeting, " a redeployment abroad with the prospect of opening a banking establishment in France and the increase of funding shares internally ".

The capital increase should allow the BEA to begin an effective implementation abroad during this year, confirming the announcements made several times in recent months by the bank officials, in line with the recommendations made by the government.

Former Prime Minister Ahmed Ouyahia had encouraged the establishment of Algerian banking agencies, particularly in France, to attract the diaspora's demand for savings, to encourage membership in the housing programs launched in Algeria for the benefit of Algerian nationals living abroad, but also to encourage investment in the country of origin.

The new capital increase decision was approved by the Currency and Credit Council on February 25, 2019, which allows the BEA to reinforce its capital of "80 billion dinars, by incorporating optional reserves accumulated as of December 31, 2017, by the issue of 80,000 new shares with a par value of 1 million dinars each, fully paid up for the benefit of the sole shareholder ".

Thus, according to legal information passed on yesterday in the press, that "the capital of the BEA, which was 150 billion dinars, divided into 150,000 shares of 1 million dinars each nominal value, fully denominated, was increased by 80 billion dinars by partial incorporation of reserves duly certified by the auditors, sincere and accurate, following the minutes of the extraordinary general meeting held under the chairmanship of the Minister of Finance, Abderrahmane Raouia. It should be recalled that the BEA has realized, for fiscal year 2017, a net profit of more than 57 billion dinars.
Translated from:
https://www.elwatan.com/edition/econ...ial-20-03-2019
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Old Today, 12:05 AM   #23191
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At 2.30pm today, I turned on the switch to officially commission the 183MW Isimba Dam, bringing our national electricity generation to 1,167MW from the current 984MW. #IsimbaCommissioning

The NRM government is committed to putting in place infrastructure to spur Uganda's growth. This is gradual but we shall get there. We started with peace, then education, immunization, we are working on roads and now these dams. It is an era of big projects.

By June, we shall have power in Kaabong, one of the few places in Uganda not connected to the grid. Besides electricity, the government is also moving to make the cost of transport cheaper. Once the Standard Gauge Railway is done, transport costs will come down by 60%.

The big challenge now is the banks which lend money at high interest rates. But through the Uganda Development Bank, we shall offer low interest rates to those in the hospitality (hotels) industry, manufacturers, farmers, and those in the tourism industry.







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Old Today, 03:06 AM   #23192
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At 2.30pm today, I turned on the switch to officially commission the 183MW Isimba Dam, bringing our national electricity generation to 1,167MW from the current 984MW. #IsimbaCommissioning



The NRM government is committed to putting in place infrastructure to spur Uganda's growth. This is gradual but we shall get there. We started with peace, then education, immunization, we are working on roads and now these dams. It is an era of big projects.



By June, we shall have power in Kaabong, one of the few places in Uganda not connected to the grid. Besides electricity, the government is also moving to make the cost of transport cheaper. Once the Standard Gauge Railway is done, transport costs will come down by 60%.



The big challenge now is the banks which lend money at high interest rates. But through the Uganda Development Bank, we shall offer low interest rates to those in the hospitality (hotels) industry, manufacturers, farmers, and those in the tourism industry.

















Im a broken record but again- SSA- huge bottlenecks. How a single rail can reduce transport costa by 60%.

The knock on effect is HUGE. Cheaper exports, cheaper imports, which means Ugandans will have more money in their pockets at the end of the day- which will fuel consumption (and hopefully saving).
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Old Today, 08:29 AM   #23193
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South Africa: EFL intake slowed down in 2018



Since 2017, student numbers fell 5% while student weeks increased by the same amount.

The biggest decrease comes from Europe, which reported losses for both numbers and weeks, -26% and -17% respectively, with crucial market Germany down by 17%.

“I feel that South Africa…is finally on the map for English training”

According to EduSA CEO Ryan Peters, the dip in student numbers could be due to a different kind of crisis from the one EduSA had been battling in court: a water crisis, and its portrayal in the media.

“Last year South Africa was dealing with the water crisis, which then had a major impact on tourism numbers in general, and then obviously it impacted our industry,” he told The PIE.

“The media covered the water crisis extensively, especially in Germany. And Germany is one of our big markets. Once again it comes down to what’s happening in the media. I’m very positive that we have put that behind us and going forward there’s going to be a massive growth coming.”

Other parts of the world increased their market share, such as Brazil, the first source market for EduSA members, grew by 60%, and Saudi Arabia, the second source market, by 70%.

“There is a lot happening with Saudi Arabia and its relations to other nations, and this can redirect students [to South Africa],” Peters explained.

Although the market did slow down, newly-appointed Peters is optimistic for the future of South Africa as an EFL destination, a feeling backed by a number of positive developments over the past year.

https://thepienews.com/news/south-af...-down-in-2018/
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Old Today, 10:25 AM   #23194
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You can package it with SA or one of the East African countries like Tanzania we lack creativity. It’s like how most sa tourism operators package vice falls as part of an sa round trip. I see nothing wrong with it all the Zambia minister was complaining but it’s marketing
That's not very practical. Malawi, Zimbabwe and Zambia are in a more reasonable sub-region as far as tourism goes. Traveling from Cape Town to Victoria Falls is for a more well budgeted tourist. Most just go as further as KZN or Kruger National Park.

For Zim, Malawi and Zambia, it has to be a tourist landing in any of those countries and having a dedicated tour. This is because of the vast distances that have to be covered, poor aviation and road infrastructure etc.
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Old Today, 11:48 AM   #23195
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That's not very practical. Malawi, Zimbabwe and Zambia are in a more reasonable sub-region as far as tourism goes. Traveling from Cape Town to Victoria Falls is for a more well budgeted tourist. Most just go as further as KZN or Kruger National Park.

For Zim, Malawi and Zambia, it has to be a tourist landing in any of those countries and having a dedicated tour. This is because of the vast distances that have to be covered, poor aviation and road infrastructure etc.


it already happens as far vic falls is concerned it only cost US$80 to fly into vic falls from SA. the down side is they don't stay very long just a day or two max at least 30% of vicfalls traffic comes by SA tourism operator's marketing it as south Africa.


SAA has jut added the airbus a340 to Vic falls and I bet 80% of those tourists are coming as part of a South African package.


Malawi can do the same why not ?
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