‘The Private Sector in Development Initiative' Launches Formal Association

Entrepreneurs in emerging and developing countries face immense barriers to success, operating in risk-averse societies where financing and mentorship are scarce. This is particularly challenging for small and medium-sized ventures that are too large for micro-credit and have not reached scale to access larger investment funds or financing.  More than 25 organizations have agreed to work together to bring about a new phase of global development focused on giving private enterprise and entrepreneurs the tools to fight subsistence poverty. The group comprised of funds, non-profits, and advisors focused on entrepreneurship beyond microfinance, will launch a formal association that will invigorate private sector involvement in development. Organized by the Aspen Institute and the Global Development Advisors and sponsored by the German Marshall Fund of the United States, this group of practitioners aims to focus on job creation, building capital, and generating revenue while providing needed health, energy and other social services in emerging and developing countries. The group includes some of the most innovative professionals in the development field with a proven track record of building competitive businesses worldwide.

Ghana report says her people are generally happy with progress

In its annual progress report on the implementation of the APRM Programme of Action, Ghana’s national APRM Governing Council says the report findings were that Ghanaians generally are happy with their freedom of expression, and the safety and security of life and property. They also expressed satisfaction with the resilience of the economy in the face of increasing oil prices. Support to the private sector, especially micro and small enterprises, was also mentioned as noteworthy. Improving access to water and sanitation was also commended. The country continues to enjoy a B+ rating from both Standard and Poor’s and Fitch Ratings. The country ranks 82nd in the World Bank Study – Doing Business in 2006. The survey also found Ghana as the 9th easiest place to do business in Africa. In West Africa, Ghana ranks number 1 as the easiest place to do business.

South Africa Business Community gearing up for 2010

Seventy-five percent of medium to large privately held businesses surveyed in South Africa believe that the 2010 FIFA World Cup will benefit them financially, and are taking steps to capitalise on the country's hosting of the event, according to the latest International Business Report by consultants Grant Thornton. According to the survey, 60% of SA companies are considering diversifying their product or service in order to maximise their returns from the tournament, 53% are increasing their workforce, and 46% are making additional capital investments in their businesses. A third (33%) of the businesses surveyed said they were increasing their geographic spread in preparation for the event and its build-up, while a quarter (25%) said they would be importing more goods from abroad.

Kenya's Economy expected to continue Growth during Election Year

The Kenyan Government has expressed optimism that the economic growth witnessed since 2005 will continue upwards this election year. According to the country’s Finance Minister, the Kenyan economy grew by 6% in 2006, an improvement on the growth rate of 5.8% announced by the government in 2005. The Central Bank of Kenya stated, in its '2007 Economic Outlook' forecast, that growth was underpinned by macro-economic stability and improved investor confidence, citing a revitalised agricultural sector, tourism, telecommunication and finance (with revenue collection surpassing the $4.2bn threshold by over 20 percent).

Angolan President inaugurates New Bank

President José Eduardo dos Santos has inaugurated the Development Bank of Angola.  According to José Pedro de Morais, Minister of Finance, the bank will provide a sound basis for productive investments at reasonable costs, creating more jobs and involving the population in production.  The bank will provide long-term loans, guaranteeing immediate resources for areas defined as strategic and, subsequently, for other economic sectors where there is a clear need for goods and services.  The BDA is to be partly financed by oil and diamond revenues.

Biomass export plant for Coega

The Coega Industrial Development Zone outside Port Elizabeth has secured a R70-million investment into a biomass fuel project which will supply 10 000 tons of the product per month to European markets. According to the Coega Development Corporation, the plant will be one of the largest among the 285 operations of this product globally. Production is scheduled to commence in August, with the first product due for export in November. According to the company, about 100 jobs will be created during construction of the plant, which is currently under way, while an additional 60 direct jobs and about 3,000 indirect jobs will be created. Biomass is an environmentally friendly alternative source of energy.

Oil investments in Angola increased by 37% in 2006

Investment in oil exploration amounted to about US$10 billion in 2006, a 37% increase over the previous year, according to Oil Minister Desidério da Costa.  With the start of production in the Dalia oilfield in December and other projects to be implemented in 2007, oil production is expected to reach two million barrels a day.  Angola has seen a continued increase in output in 2006, rising to 1.4 million barrels a day, and by the end of third quarter of 2006 Angola, through Sonangol, the state oil company, had exported about 129 million barrels of crude oil at an average price of US$63 a barrel. Source: ANIP

Virtual Market for Farmers in Ghana

Farmers in Ghana will soon be introduced to an innovative agricultural market information service that will help them sell their produce across Africa. The new service known as TradeNet will enable farmers and traders across the continent to share and fix prices of various agricultural products through the use of mobile phone text messages. Farmers who sign up for the service will receive SMS alerts on whatever commodity they are interested in and where the product is available. Source: Ghanaian Chronicle

South Africa launches State-Owned Broadband Company

The South African Government has announced that it will launch a state-owned company that will provide long-distance telecommunications connectivity “on a cost basis” to the market. The state-owned company, Infraco, will provide such connectivity to Neotel, the second network operator, based on the telecommunications infrastructure originally built by Eskom and Transnet. Infraco is not intended to be a telecommunications company providing a whole host of services but will own the fibre optic cable that was previously held by Eskom and Transnet and it will provide only broadband capacity on fibre cabling across the country.  The South African Government considers broadband to be a key driver of economic growth and wealth generation, enabling South Africa to gain access to universally available, reliable and affordable broadband. According to the Minister of Communications, Ivy Matsepe-Casaburri, the costs of broadband will reduce given the government’s investment in providing the requisite infrastructure.

Kenya Ready to Adopt Cable

The Kenyan government has confirmed that it is ready to adopt three different under sea cables provided through various routes which should enable the cost of international broadband to be drastically reduced within 18 months. According to the country’s Ministry of Information and Communication, Kenya is taking a three-pronged approach calculated to reduce the cost of international connectivity. Priority will be given to the East African Marine System (Teams), the fiber optic cable link to Fujairah in the United Arab Emirates. Under the Teams agreement, the Kenya Government will have a 40% holding in the project, Etisalat of UAE will hold 20% and the remaining 40% will go to investors in the East African region. Kenya is also involved in the East African Submarine Cable System (EASSy) an initiative aimed at constructing and operating a submarine fiber optic cable along the East African Coast. EASSy will connect nine coastal countries and island nations and to the rest of the world. Source: Highway Africa News.

South Africa is to set up a State Diamond Trader

The government is to set up a new state-owned diamond trading company that will buy 10% of locally produced diamonds for resale on the South African market, helping to develop local diamond cutters and polishers. According to the Government, the initiative is in line with its National Industrial Policy Framework aimed at increasing mineral beneficiation in the country.  The policy also promotes strategic state intervention in the agriculture, agro-processing, pharmaceutical and white goods sectors, as well as in creative industries and community and social services.  De Beers, the South African diamond company, had agreed to assist with free management, technical skills and asset provision over the first three years. The company is set to spend R2.2-billion in capital investment in new mines and new exploration activities in South Africa.

Chevron to Build New Headquarters in Angola

The multinational Chevron, Cabinda Gulf Oil Company (Cabgoc), has announced the construction of a new headquarters in the Angolan capital, as a result of the investments made in the country in the fields of exploration, prospecting and production of oil and natural gas. The headquarters will be built in the Chicala zone, in the Ingombota district (Luanda).

South Africa to Build Second Nuclear Plant

South Africa is to build a second nuclear power station as part of a multi-billion rand plan to meet the surging demand for electricity fuelled by the country's economic growth. According to the Government, the state power utility Eskom, with government backing, has taken a decision to build a new conventional nuclear power plant in the southern part of the country to produce upwards of 1 000MW of base load power as an affordable, environmentally sound alternative to gas and coal-fired sources of energy. South Africa currently has one conventional nuclear station: Koeberg in the Western Cape, which contributes base load power of about 1 800MW to the national grid.

$15 Million invested in Kenyan Grain Handling Company

UK private equity investor in emerging markets, Actis, has announced a $15mn investment, through its Actis Africa Agribusiness Fund (AAAF), in Grain Bulk Handlers Limited (GBHL) at Kenya's Kilindini Port. GBHL is a state of the art integrated grain terminal at the port in Mombasa, Kenya's city on the Indian Ocean coast. This is the first investment for the fund in the agri-infrastructure sector in Kenya since it was launched in April 2006. Actis is a leading private equity investor in emerging markets and currently has US$3.3bn of funds under management. The firm said the investment in Mombasa makes Actis a significant minority equity investor in GBHL and, through its representation on the Board of Directors, Actis will participate in providing strategic leadership to the business in its next phase of growth.

Valco-Alcoa Foundation Youth Clinic Inaugurated in Ghana

Alcoa has announced the official opening of the Valco-Alcoa Foundation Youth Clinic in Ashaiman, in the Greater Accra Region of Ghana. The new youth health and recreation center was created through a partnership between Alcoa Foundation, Ghana Health Services and Mercy Ships, a global charity. Alcoa Foundation provided $68,000 funding last August to Mercy Ships, who managed the construction project and provided necessary equipment for the center. The new center is staffed and managed by Ghana Health Services, the Ghana government health agency.  Alcoa’s presence in Ghana is through Volta Aluminum Company (Valco), a joint venture with the government of Ghana. Valco provides aluminum ingot from its smelter in Tema to Alcoa customers around the world.  Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland.

South Africa Releases Codes of Good Practice

The South Africa Minister of Trade has published the final Black Economic Empowerment Codes of Good Practice in the Government Gazette and Industry which now have full legal standing. The Codes of Good Practice on Broad-Based Black Economic Empowerment were published along with the sector charters for the Construction and Finance industries. Their publication in the Government Gazette follows cabinet’s approval of the codes in December last year. Qualifying businesses, all government institutions and State Owned Enterprises, must comply with the codes and be rated in terms of the Generic Scorecard or sector specific charters. The codes allocate 70 percent of their points to broad-based elements such as enterprise development, skills development, preferential procurement and socio-economic development, and smaller companies and start-ups in their first year of operations will be exempt from empowerment requirements, while multi-nationals will have flexibility in how they choose to structure their empowerment deals. The Generic Scorecard awards points amounting to a total of 100 on the seven elements of ownership (20 points), management control (10), employment equity (15), skills development (15), preferential procurement (20), enterprise development (15) and socio-economic development (5).

NEPAD and FARA sign up to boost development of agriculture in Africa

A Memorandum of Understanding has been signed between NEPAD and the Forum for Agricultural Research in Africa (FARA).  FARA, based in Accra, Ghana, facilitates the coordination and exchange of information among the African Sub-Regional Agricultural Research Organisations (SROs), and their National Agricultural Research Systems (NARS) stakeholders.FARA’s main activities in supporting the SROs range from strategic planning, strengthening and integrating NARS at the sub-regional level, and increasing collaboration between NARS, International Agricultural Research Centres, (IARCs) and Advanced Research Institutes, (ARIs).  In consultation with NEPAD and its members, FARA will identify priority projects and will work together to enhance the capacity of African scientists, development agencies and farmers to take advantage of new technologies and methodologies to improve African agricultural productivity.

Average Market Return in Africa Maintained @15%

The average year-to-date return chalked by markets across the African continent (excluding Zimbabwe) was 15%. The best performing markets as at the close of business on March 16 include Algeria (137%), Nigeria and Morocco (23 %), Zambia (15 %) and Mauritius (14%). The Tanzanian market led the pack of losers with a loss of 40 per cent by the end of the relevant period, followed by Swaziland (-6 per cent) and South Africa (-3 per cent).  Another significant development has been the approval of the Capital Markets Authority (CMA) of Kenya of plans to set up an over-the-counter trading board. This will allow institutional investors easier access to riskier investment options. The trading board is to be called the Association of Securities Dealers Automated Quotation system (ASDAQ).  Source: Databank

Investment in Angola Totals over US$ 4 billion

Angola’s National Private Investment Agency (ANIP) has approved 1,124 investment projects, with an overall value of US$4 billion, over the last four years, according to the Chief Executive of the agency, Ari de Carvalho. In the last year alone, 463 investment projects have been approved, the highest number over the last three years, with a total value of US$794 million. The highest number of projects approved was in the construction sector with a total of 238, followed by industry with 173. The growth of investment projects approved since 2003 shows the growing interest investors have in doing business in the country, motivated in part by macro-economic stability and economic growth. Source: ANIP

Fidelity Bank Ghana Introduces New Lifestyle Account

Fidelity Bank Ghana has introduced the Fidelity Lifestyle Investment Plan (FLIP) Account as an investment product that enables an individual to switch over from a pro-expenditure lifestyle to a Wealth Creation Lifestyle. According to the company, its new FLIP Account has three unique characteristics; it guarantees 91-day Treasury bill yield, offers a Capital Accumulation Plan (CAP) which encourages accumulation of wealth through a consistent monthly payment of contributions as well as providing a credit facility that ensures instant liquidity at the time of need.  FLIP Account holders also qualify for a Flip Loan. The FLIP Account which targets both salaried employees and the self-employed was launched by the bank in March 2007. http://www.fidelitybank.com.gh/

South Africa to build a Second Nuclear Plant

South Africa is to build a second nuclear power station as part of a multi-billion rand plan to meet the surging demand for electricity fuelled by the country's economic growth. The state power utility Eskom, with government backing, plans to build a new conventional nuclear power plant in the southern part of the country to produce upwards of 1000 MW of baseload power. Eskom is committed to spending R97-billion over the next five years on building new coal-fired power stations and rehabilitating older stations to address South Africa's looming electricity shortage. The South African government announced that it would develop the local nuclear industry as an affordable, environmentally sound alternative to gas and coal-fired sources of energy. The country will also continue to explore other clean energy sources such as biofuels and liquid fuels. Source: Business Day

Nigeria to increase Oil Production to 4 Million Barrels by 2010

The Nigerian Government has announced plans to increase production from the current level of 2.6 million barrels per day to four million by 2010. Nigeria is the world's sixth-largest oil exporter and derives more than 95% of its foreign exchange earnings from oil.  In addition, the Government intends to increase the nation's oil refining capacity to two million barrels a day and has urged the major oil companies to work towards achieving these goals and to intensify offshore exploration.

China's Hangxiao Steel Structure wins Angolan Construction Contract

China's Hangxiao Steel Structure has won a $4.4bn contract to sell construction products and services for public housing projects in Angola. The contract was signed with China International Fund Ltd, a Hong Kong-based company with construction interests in Africa. In addition to the sale of construction products, estimated at 3.2 billion, the company will also be paid for construction services in 12 cities across Angola. China International Fund has also signed an Equipment, Procurement and Construction agreement with the Angolan government to build a series of public housing projects within five years.

BFA Bank Opens New Branch in Luanda

The Foment Bank of Angola (BFA) recently inaugurated a new branch in Luanda, increasing the number of agencies opened to 69. The recently opened BFA branch, located at Major Kanhangulo Street, offers three different solutions for providing service to its clients, in order to improve the quality of service rendered. The main goal of the bank is to expand its commercial network to 100 branches within the year.

South Africa Commits Further Investment into Education

South Africa has committed an additional R8.1 billion over the next three years to hire additional teachers, teaching assistants and support staff in schools and districts and to improve remuneration levels of teachers. In the country’s 2997 budget announced by Finance Minister Trevor Manuel, the Government has also set aside R850 million for adult education and training while R700 million has been allocated for bursaries to encourage young people to train as teachers and to pursue careers in the public schooling system. The Minister announced a further R2,2 billion to support the university sector to meet its objectives of increasing enrolment and producing more science, engineering and technology graduates

Angola to Have First Visa Credit Cards

Angolans will shortly have access to Visa credit cards, according to the Chairman of Banco International de Crédito (BIC), Fernando Teles.  Angola is among the few countries in Africa that are yet to introduce a credit card system, which eases banking, business and other transactions.  Teles explained that at this introductory point, five banks have been given the green light by the Angolan government to use the Visa credit card system.  Source: ANIP

ENANA Invests US$400 Million in Airports Rehabilitation

The National Company of Airports Exploration and Air Navigation (ENANA) intends to rehabilitate around 32 airports and airfields, a move that will be carried out in partnership with the Public Works Ministry, by 2010. The Angola National Company of Exploration of Airports and Air Navigation (ENANA) will invest approximately US$400 million, in the 2007/2008 period, for the rehabilitation and recovery of airports and airfields in the country. In the next three years, ambitious infrastructure programs will be developed as, according to the Luanda airport administration, the airports need to be made operational to enable the company to reach all districts with airports, especially those under ENANA control. The company has announced that the first stage priority will be to reconstruct 25 of the mentioned infrastructures, with the remainder to be completed thereafter.

Africa Investment Climate Facility Appoints CEO

The Investment Climate Facility (ICF) for Africa has appointed Omari Issa, formerly of Celtel, as its first CEO.  Launched at the World Economic Forum in Cape Town in 2006, the ICF is a private-public partnership structured on private sector principles and governed by an independent board. Its vision is to identify key challenges to doing business and to develop a core of large-scale investment programmes focused on demonstrable change. It has the support of the African Union, NEPAD, the Commission for Africa, the G8 and Business Action for Africa. The ICF's donor funding has increased by 50 percent since June last year from $80mn to $120mn and Standard Bank has announced that it is committing $2.5 million to the Facility to improve the investment climate as well as promote sound governance in Africa.  The ICF will provide both technical and financial assistance in support of the NEPAD strategy of ensuring good governance as the necessary condition for Africa's socio-economic transformation. The ICF says that investment climate reform will help promote economic growth and employment creation on the continent.  Source: I-Net Bridge

Russian-Angolan VTB Bank Opens

Banco VTB Africa SA, the first Angolan foreign-controlled bank, has opened in the capital, Luanda, with Russia's foreign trade bank Vneshtorgbank (VTB) holding 66% stock. The bank has authorized capital of US$10 million and is expected to initially focus on corporate and investment business. The main clients of the bank will be companies interested in developing their business in Angola, in such sectors as processing natural resources, energy, telecommunications, construction and trade.

Strate assesses the future of Settlements in South Africa

Strate Limited has embarked on a new initiative called the Security Services Enhancement Model (SSEM) that will ultimately determine the future of clearing and settlement for the South African securities markets. According to the company, Strate has dedicated much time and effort to the Alternate Settlement Model (ASM) project. The SSEM project is to investigate a new approach to securities settlement that will further increase efficiencies and manage risk while strategically aligning Strate’s business and the South African market with internationally accepted best practices. According to the company, the project represents a stepping stone in its ongoing quest to reduce risk and ensure operational excellence and is engaged in ongoing consultations with South African market players and Central Securities Depository Participants. Source: STRATE

Virgin Atlantic opens new route to Kenya

Virgin Atlantic will launch a new daily service in Kenya in June 2007 to be operated by a 240-seater Airbus A340-300 aircraft.  The new service will target a fifth of the 100,000-passenger market and, if successful, will aim to capture a quarter of the market currently dominated by British Airways and Kenyan Airways. Nairobi will become Virgin Atlantic's fourth African destination. The airline, which already flies to Cape Town, Lagos and Johannesburg, will also plans to launch a London-Mauritius flight in November.

South Africa’s Bonds Turnover Soars to over R11 Trillion

Turnover on the Bond Exchange of South Africa in 2006 amounted to R11.4 trillion, an increase of 40.6% over the 2005 figure of R8.1 trillion. The bond trades, cleared and settled through Strate Limited, translates to a total value of R21,9 trillion in trades being captured through the Strate bond system, pointing to a sharp rise in the average value of those trades.  The company has ascribed the remarkable growth in activity largely to increased trading in liquid government bonds with bigger individual trades, and supported by an increase in activity from foreign clients trading in the local market. The nominal value of bonds under management in Strate and the market has got off to a good start in 2007 with a turnover in January of R1.1 trillion that far exceeded expectations and is almost double the January 2006 figure. Source: STRATE

Tianli Group Creates Business Park in Mauritius

The Tianli Group of China has announced that it is to spend US$500 million to set up a business park in Mauritius. The Mauritian Government has approved a plan for the Group, which already has a weaving factory on the island, to house 40 Chinese businesses in an industrial zone north of the capital, a project that will create 5,000 jobs and lead to the creation of a further 2,500 among the local population as well as 8,000 jobs for Chinese contract workers.  The project will take five years to develop and is due to start later this year. The businesses destined for the new zone will cover a variety of sectors including light industrial, medicine production, textiles and the manufacture of electrical goods.  Source AFP

South Africa Steps up Support for Business Process Outsourcing

The South African Government has announced details of a comprehensive government assistance and support programme aimed at creating 100,000 jobs by the end of 2009.  Key elements include marketing, facilitating easy entry into South Africa for both new and expanding BPO operations, skills development, simplified administrative procedures and other investment incentives. In addition to raising South Africa’s profile as a global outsourcing destination, the measures includes targeted marketing for high-impact foreign investors and a talent development initiative, Monyetla, that will provide unemployed matriculants with work-readiness skills. A Training and Skills Support Grant will subsidise the cost of company specific skills training The BPO sector is expected to grow by 50% per annum for the next four to five years, resulting in a growth potential of US$50bn to $60bn.

Chinese Company Signs Contracts for Two Construction Projects in Angola

Hangxiao Steel Structure, a Chinese construction company, has signed two contracts to supply construction materials and carry out construction projects in Angola over five years. The contract for supplying construction materials includes products such as steel structures, flooring, doors and windows. The construction contract includes the installation of the steel structures, which will be produced in the company’s factory. Hangxiao Steel Structure, from Zhejiang province, was founded in December 1994. Source: ANIP

Ivory Coast launches New IT Technology Park

Ivorian president Laurent Gbagbo has laid the foundation stone for a multi-million-dollar technology park which has been part-financed by China and India, which it is hoped will create 20 000 jobs. Targeted to create what the Government calls the biggest IT centre in Africa, the new venture, on a 500-hectare site will cost $402mn, two thirds of which will be financed by China and India. Source: Sapa-AFP

African Development Bank Launches Visa Card

The African Development Bank will launch three Visa credit cards, called BAI Classic, BAI Gold and BAI Platinum. This launch follows negotiations with the Visa network, dating back to 2006, which formally admitted BAI as a member authorized to issue and accept credit cards used in the world. The new cards enable BAI customers to join the world’s largest payment network, withdraw money from more than one million ATMs, and buy from 150 countries and approximately 30 million counters.

South Africa’s First National Bank Partners with China

The First National Bank (FNB) will be collaborating with China Union Pay, China's state-owned payment mechanism, to provide Chinese cardholders with the opportunity to transact with South Africa. As China seeks new markets throughout the world and with the easing of travel restrictions for the Chinese population, there is greater demand for Chinese business people and tourists to visit other countries. South Africa conducts significant trade with China and requires a banking system that supports this.  China Union Pay was set up to develop a single payment system for all Chinese people, cutting out the regional systems that used to apply. The deal with enable anyone from China to transact via the South African banking system.  China Union Pay has already signed deals with banks in Australia, New Zealand, Hong Kong and the USA, as well as with Eufiserv, a pan-European payment system. Source: I-Net Bridge

IFC Approves $50 Million Loan for Leading Nigerian bank

The Board of the IFC has approved a convertible loan of $150 million as part of a $75 million financing and advisory services package for the Nigerian bank, United Bank for Africa.  The agreement is also expected to include a partial credit guarantee for bonds and medium term notes that UBA plans to issue to finance mortgage lending and other strategic businesses.  United Bank for Africa (UBA), is Nigeria's largest bank in terms of commercial assets.  Nigeria became a member and a shareholder of IFC in 1961. Since then, IFC has invested more than one billion dollars in the country, including $113mn in syndicated loans, to finance over 68 projects across a variety of sectors.  The organisation’s committed portfolio in Nigeria currently stands at 719 million.

New Call Centre Planned for Coega in South Africa

The Coega Development Corporation (CDC) is building a R125-million call centre that will feature 1 500 seats as well as office and recreational space to improve the global competitiveness of the Coega Industrial Development Zone. The facility, called Business Process Outsourcing Park (BPO) in the Coega IDZ, will be built on a 5-hectare piece of land and will be the first of its kind in South Africa. The centre is part of a plan to attract local and international investors and will be placed in the Business Service Precinct, replacing a 200-seater call centre currently in operation. Coega, he said, would be responsible for the overall management of the building that is designed to cater for various scenarios.

Development Bank approves $115 million for Swazi Projects

The Development Bank of Southern Africa (DBSA) has approved $115mn in loan approvals for various development projects in Swaziland to support a diversified economic portfolio in Swaziland and promote broad-based economic participation of the local people.  Much of DBSA's previous investment in Swaziland has focused on the public sector, and specifically in water infrastructure.  Diversification into other sectors offers the country an economic advantage. The Bank has to date invested around R. 12 billion within the SADC region on a wide range of projects and programmes.  Source: I-Net Bridge

South Africa to Promote Maths and Science in High Schools

The South African Government has reaffirmed its commitment to promote Maths, Science and Technology in high schools and has announced a plan to deploy teachers qualified in those fields to the country's 6,000 schools. The Government aims to attract competent local and foreign teachers and to encourage new teachers into public education through a programme of incentives, including bursaries and rewards. Maths, science and technology are some of the critical skills identified as a key part of the Government’s Accelerated and Shared Growth Initiative for South Africa (Asgi-SA) that aims to increase economic growth to 6% per annum between 2010 and 2014, while also halving unemployment and poverty by 2014.

South Africa’s Telkom acquires Nigeria's Multi-links

South Africa’s Telkom has announced the finalization of a transaction with Nigerian-based Multi-Links Telecommunications Limited that will result in its holding company, Kenston Investments Limited, transferring 75% of its equity shareholding in Multi-Links to Telkom (TKG). The $280mn deal will give Telkom a strong footprint in Nigeria, Africa's largest market and fastest growing telecoms market, and provide the company with a springboard for further expansion into other countries in West Africa. Multi-Links is Nigeria's pioneer Private Telephone Operator (PTO) and the second largest PTO in the country in terms of its subscriber base of 162 000, including the highest number of subscribers in Lagos. Telkom's deal with Multi-Links follows February's acquisition of Africa Online, an Internet Service Provider on the African continent that affords Telkom a footprint into nine African states (Kenya, Tanzania, Uganda, Ghana, Cote d'Ivoire, Namibia, Swaziland, Zimbabwe and Zambia). Source: I-Net Bridge

Angolan Government Approves US$200 Million Investment Project

The Angolan Government has approved a private investment project, Palanca Cimento, valued at US$200 million that will include the construction of an industrial complex for the production of clinker and cement. The industrial complex, to be built in the locality of Hanha in 24 months, will include commercial facilities, a loading quay, distribution centers, and electricity and water treatment stations. The primary project investors include the Angolan group, GEMA, S.A. and the US consortium BGGA Group Ventures 1, LLP.

Ghana - Most Significant Improvement in Economic Freedom

Economic Freedom of the World 2006 Annual Report, by Vancouver-based Fraser Institute ranks Ghana first in the world for having made the most significant improvement in economic freedom over the last few years. With 10 being the highest score, Ghana, for instance, has seen its rating moved up from 5.6 in 2001 to 6.3 in 2004, clocking the highest jump for the period, only matched by Barbados and Bulgaria, which moved up from 5.5 to 6.2 and 5.7 to 6.3, respectively, over the same period. Commenting on Ghana's superior showing, Finance Minister Kwadwo Baah-Wiredu said it only goes to confirm the World Bank survey that placed Ghana among the top ten improved countries in which to do business. Source: Databank

New Angolan Shopping Centre Offers 100 Shops and Eight Cinemas

Belas Shopping Center was recently inaugurated in the Talatona area and offers 100 stores and restaurants, as well as eight cinemas, with 2,400 seats. After an investment of US$ 35 million, the center was built over an area of 119,418,47 square meters, with the layout designed by Brazilian architects André Sá and Francisco Mota. An administrator of HO Investments Management (HOGI), one of the investors in the project, explained that the company is looking into building shopping centers in Huíla, Huambo and Benguela provinces. Belas Shopping will employ 950 people and create 2,500 jobs, indirectly.

MTN Nigeria Boosts Group's Revenue By N263bn

The MTN Group has increased its revenue by 49 per cent to over N912.918 billion for the year ended December 31, 2006 with MTN Nigeria correspondingly increasing its own revenue by 31% to N263.497 billion for the same year. A breakdown of the company’s figures show that South Africa is still the major earner, with the highest revenue of N439 billion, an increase of 22%. Ghana made N29 billion revenue for the group, while Sudan earned N10 billion. MTN Nigeria also increased its subscriber base by 47 per cent to add 3.9 million additional subscribers to the Group's over 40 million-subscriber base, bringing MTN's Nigerian subscriber platform to 12.3 million at the end of 2006. MTN Nigeria also recorded a market share of 46% and reduced churn levels from 35 to 30%. Source: Databank

Over US$33 Million Released for Social Projects

Approximately US$ 33 million was allocated for the implementation of a public investment program in the Kwanza-Norte province, aimed at improving and increasing the supply of basic goods and services to the population, in 2007/2008. The budget has recorded a 47 percent increase in relation to the previous biennium (2005/2006). Of the invested amount, 14.8 percent was allocated to the energy and water sectors and 12.3 percent to infrastructure and public works.

Zambian Bank sold in $8million Deal

The Zambian government has sold its largest state-run commercial bank to Rabobank of The Netherlands in a deal worth more than eight million dollars. Rabobank has taken over the management of the Zambia National Commercial Bank (ZNCB). The Dutch firm will effectively take control of 45%of the shares with management rights while 25% of the shares will be floated on the Lusaka Stock Exchange, with the government retaining the minority shares. Rabobank has promised to maintain the rural branches, which service the poor communities throughout the country.

Commercial Banks Allocate US$400 Million for Public Works

The Angolan Commercial Banks will finance the construction and improvements of public infrastructures, estimated at approximately US$400 million. The contract between the Finance Ministry and the Union of Commercial Banks, led by the Foment Bank of Angola (BFA), covers financing for the construction of the Capanda/Lucala/Luanda electricity supply network and of the Luanda/Viana motorway.

Telkom Kenya Seeks New Investor

Telkom Kenya is to be privatised within the next seven months through the initial sale of a 26% stake to a strategic equity partner. The Government invited expressions of interest from companies interested in buying the stake in the State-owned landline company. In a newspaper advertisement, the Government said it also intended to sell off a further 34% of Telkom in an initial public offering once the strategic partner was on board. The date of the IPO is yet to be determined but it is to be executed in consultation and co-operation with the new shareholding partner. Source: Databank

Increase in Jobs Created in South Africa

According to Statistics SA, South Africa's economy is creating more jobs, and jobs of higher quality, than ever before. The labour force survey shows a modest decline in unemployment between 2005 and 2006 as well. The country’s official unemployment rate has decreased from 26.7% to 25.5% in September 2006, while 500,000 new jobs have been created. South Africa's formal sector (excluding agriculture) was the main driver, accounting for 1.4-million of the 1.6-million new jobs created in the five years to last September. The survey shows that despite an increase in the number of people in the market for jobs, the percentage of working-age South Africans with jobs improved from 41.1% to 42.7%. The country's trade industry (including the wholesale and retail sectors) accounted for 23.9% of the total increase in employment, the single largest contribution by any industry. The industry currently employs more than 3 million people.

Shell Plans Full Production from Nigeria

Petroleum giant Shell has announced that it expects to resume full production in its oil operations in Nigeria’s Niger Delta within the next few months. This follows a year of numerous closures when Shell lost about 500,000 barrels a day in production from its fields in the western part of the oil-rich delta after attacks by rebel groups. Violence in the region has curtailed up to a fifth of Nigeria’s total oil production. Shell, the biggest operator in Nigeria, still pumps about 500,000 barrels a day from the eastern delta region and from several large offshore platforms. Nearly half of Shell’s production in Nigeria has been interrupted since February 2006, after a critical loading platform linked to the Forcados export terminal was blown up. The attack created a chokepoint that forced Shell to shut most of its fields and interrupt production. Source: New York Times Online

Mauritius Exported $1.1bn in 2006

Mauritius exported products worth $1.1bn in 2006 against $963.3mn in 2005, according to the country’s central statistics bureau. It said the 16.4% increase in exports was led by the 13.4% increase in clothing items, 57.8%in sea products and 16.3%in fabrics. The statistics indicated that the United Kingdom, France and US remained the main export markets for the Mauritian duty-free zone, representing about 67 percent of the overall exports. The British market shot up by 24.2 percent and the French by 9.1 percent against 2005 figures, while the US market dropped by 14 percent, the bureau said. In trade with African countries, products worth $36.6mn were exported to South Africa and some $30mn to Madagascar, the Bureau reported.

Angolan Government Invests Luanda Roads Reconstruction

The Angolan Government plans to invest US$1 million over the next year in the reconstruction of Luanda’s road network. The funding is from the credit line made available by Brazil and Brazilian construction companies will carry out the projects. The road rehabilitation will increase traffic flow, make outskirts of the city more accessible, enhance regular circulation of vehicles and pedestrians, and improve the drainage of rainwater.

Chinese and Namibian Businesses Sign Agreements

Chinese and Namibian businesses have signed agreements regarding the purchase of marble blocks, seal oil, wet-blue cattle hides, manganese ore, marble slabs, fishmeal, tuna and blister copper. In addition, the two countries have agreed on the implementation of projects in the areas of trade, partnership and co-operation. The agreements were signed during the visit to Namibia of a Chinese business delegation. Source: African Resource Network

IFC Invests US$15 million in new Lonmin Shares

Further to the Lonmin IFC (International Finance Corporation) partnership signed in March 2007, the IFC has notified Lonmin that it is exercising the first tranche of its option to invest in new Lonmin shares with an initial investment of US$15 million. Lonmin will issue 245,020 shares to the IFC at 3103 pence per share, a discount of 5.0% to the closing mid market price of Lonmin shares on the London Stock Exchange on 2 April 2007. Lonmin has committed to use the US$15 million received from the IFC for this investment to fund projects to benefit the communities that host Lonmin's operations in South Africa.

Angolan Government Investments Estimated at US$ 7 Billion for 2007

The Angolan Government’s Public Investments Program for this year is estimated to total US$ 7 billion, according to the country’s Minister of Finance José Pedro de Morais during a ceremony at which a US$ 400 million loan contract was signed with Angolan commercial banks to build highways and improve the electric power infrastructure in the country’s capital city. José Pedro de Morais said the government has adopted a policy of replacing foreign loans with loans from internal sources, enabling the Government to obtain longer repayment terms, at interest rates more competitive than those prevailing abroad. Treasury Bonds will be issued that are redeemable between 8 and 12 years. Source: ANIP

South Africa’s Property Ranks High Globally

According to the Investment Property Databank, the South African commercial property market achieved returns of 26.7% in 2006, placing it among the top performing markets worldwide. This represents South Africa's second-highest annual return since the inception of the IPD Index in 1995 and, according to the index, the three-year annualised return for South African commercial property was 26.7%, equivalent to the total return of 2006. Property returns from other countries included Ireland (27.2%), Canada (18.6%), the UK (18.1%), Denmark (17.8%), Norway (17.6%), Sweden (16.2%), Netherlands (12.5%) and Portugal (12%).

United Nations Report Lauds Angola’s Growth

High oil export prices helped Angola reach the study's top position with 17.6% growth, the UN's Economic Commission for Africa said in a report published in Addis Ababa. Mauritania placed second with 14.1%, while mineral exports helped Mozambique reach third place at 7.9 percent. At the bottom of the ladder apart from Zimbabwe, the Comoros, Ivory Coast, the Seychelles and Swaziland exhibited the most dismal economic growth rates in Africa. The report projected a 5.8% growth rate on the continent this year, a slight improvement from last year's 5.6 % due to growing global demand for commodities such as oil, minerals and agricultural products.

Survey finds neglect of small businesses by African banks

A survey by global auditing firm PriceWaterhouseCoopers of strategic and emerging banking issues in key African markets has reported that banking institutions neglect small businesses. The survey focused on a number of leading countries including South Africa, Kenya, Egypt, Senegal and the Ivory Coast. The study also identified concerns in all markets about servicing the “un-banked” market, particularly for people living in rural areas. The development and growth of SMEs in the country has been identified as one of the key drivers for job creation and the fight against poverty.

Accesskenya Declares Its Value Ahead of IPO

Accesskenya Group, an ICT provider, has released extracts of its financial statements ahead of listing on the Nairobi Stock Exchange. Figures covering the last three years indicate the firm's revenues have grown by an average 75% annually over the period to the current Sh578 million. The company's adjusted after-tax profit rose from Sh25 million to Sh94 million, showing an average growth of 90% annually. The ICT provider plans to raise Sh800 million, through floatation of 80 million shares at Sh10 each. Source: Databank

East Africa Set for Single Bourse

East African countries have taken a closer step towards integration of their stock markets after stock market chiefs agreed on a strategic plan for a common bourse. The Uganda Securities Exchange (USE), Nairobi Stock Exchange and Dar-Es-Salaam Stock Exchange agreed to hasten plans of cross listing companies on the three stock markets. The chiefs agreed to lobby their respective Governments to mandate such ventures. Under the new proposal, cross-listed companies will pay annual listing fees only to the market of primary listing. The chiefs, under East African Securities Exchanges Association, also agreed to lower the initial listing fees to $5,000 (about Shs8 million). Companies have previously paid a percentage of the company's market capitalization. Source: Databank

Ghana Targets US$2 Billion from One Million Tourists

Ghana expects some one million tourists in 2007 with an expected income of two billion dollars, according to the country’s Ministry of Tourism and Diasporan Relations. 428,533 tourists were recorded to have visited Ghana in 2005 giving the nation about 836 million dollars. The number of arrivals increased by 16% in 2006. He said the expected increase in 2007 was because of "The Joseph Project", which would come to a climax between July and August 2007. The Joseph Project is aimed at reconciling and uniting Africans who have lost contact with their roots back home to contribute to the realization of African goals. According to the Ministry, the Ghanaian Government intends to convert James Fort in Accra, which kept the first slaves and prisoners, into a home of "African Excellence Experience" for all Africans from all walks of life who triumphed over slavery. Source: Databank

Angola Airline Starts Flights to London in April

Angolan airline, TAAG, is awaiting official documentation from the United Kingdom to launch a Luanda/London flight. The route to London will run once a week in its initial stage. The company is also preparing flights from Luanda to Dubai, which are expected to open in October, as well as Luanda to Frankfurt and Luanda to China.

South African Airways expands American Network

South African Airways (SAA) has expanded its presence in the United States, with travellers now offered the choice of flying to and from an additional 15 American cities. Through a code-sharing agreement with fellow Star Alliance member United Airlines, SAA now offers flights to Atlanta, Austin, Charlotte, Cleveland, Columbus, Dallas, Detroit, Houston, Indianapolis, Kansas City, Miami, Philadelphia, Pittsburgh, Raleigh-Durham and St Louis. SAA is currently the only airline to offer non-stop flights from the US to South Africa, with daily departures from both Washington DC and New York. Through its membership of Star Alliance, SAA is able to offer its customers the choice of 852 destinations in 152 countries, with more than 15 000 daily flights.

BritishTelecom and UNICEF offer ICT Assistance to South African Schools

BT and UNICEF are working together on a three-year development partnership to invest £1.5-million (approximately R21-million) to bring education, technology and communications skills to children from poor backgrounds in South Africa, Brazil and China. Rural schools in the Eastern Cape and KwaZulu-Natal will benefit from well-equipped computer centres. Apart from the installation of 250 computers, the sponsorship will help renovate schools, build additional classrooms and provide state-of-the-art computer laboratories. To make best use of the new facilities being provided, 150 head teachers and administrators will be trained in effective school management and leadership skills.

Investment Climate Facility Announces Tanzanian Headquarters

The Investment Climate Facility (ICF), a fund designed to help Africa create a more attractive business environment, has announced that its headquarters are to be based in Tanzania. The ICF is a partnership between African governments, the private sector, G8 countries, and donor agencies and has a mandate of improving Africa’s investment climate and remove barriers to growth. Since its launch at the World Economic Forum in 2006 in South Africa, the Facility has increased committed sponsor funding by 50% from $80 million to $120 million and significant additional commitments are expected in the coming months.

TAAG Re-opens Luanda/Luena Route

Angola Airlines (TAAG) re-opened their Luanda/Luena passenger and cargo flights, which had been out of service for the past four years, due to poor runway conditions. With five flights a week, TAAG is operating the Luena (eastern Moxico province) route with a boieng-727/100, everyday of the week except Sunday. The re-opening of TAAG flights in the region will help the local population facilitate their travels to other provinces of the country.

Great Lakes countries Reunite

Burundi, Rwanda and the Democratic Republic of Congo (DRC) have re-launched the Economic Community of the Great Lakes Countries (CEPGL), an organisation that has been dormant for 13 years. Diplomatic heads from the three nations participated in the meeting, which will re-launch an organisation begun in 1976 but is inactive because of war and rebellion that has plagued the region. The re-launch program includes a budget for the first year of $970 000, financed primarily by Belgium and the European Union, and the creation of an interim executive secretary. The organisation will permit the free movement of people and goods within the region, and plans to create a regional bank and an institute for agricultural research.

Higher Institute Releases First Hotels and Tourism Graduates

The first graduates of the Hotels and Tourism course, from Angola’s Higher Private Institute (Ispra), were presented recently in Luanda. The group of 20 students will present their graduation works in the up coming months. At school, they tackled four-year course subjects that were related to tourism and hotel management, as well as investment appraisal and statistics. The conclusion of the training program represents a benefit to the national market, as the country is in need of highly qualified personnel in this sector. Ispra is Angola’s only institution that runs higher degrees in hotels and tourism, and there are currently around 150 students enrolled in the study.

Sub-Saharan Africa to grow 6.5%

Economic growth in sub-Saharan African countries over the past three years has been the best in more than three decades, driven by higher oil revenues, high commodity prices and debt relief. The International Monetary Fund's (IMF's) Regional Economic Outlook for Sub-Saharan Africa, released in early April, predicts that growth in the region will rise to about 6.5% in 2007, driven mainly by rising oil production in a number of countries. The report adds that even oil-importing countries will experience economic growth at about 5%. Inflation for the region is projected to remain unchanged at about 7%, with three-quarters of the countries expected to record single-digit inflation. According to the IMF report, African oil-exporting countries have taken advantage of large windfall profits in recent years and, in contrast to previous commodity price booms, have saved a significant part of this additional revenue. The region's economic growth is also being driven by Asian demand for its commodities, providing it with an opportunity to reverse the long-term decline in the region's share in world trade.

South Africa's Blue Train to go private

South Africa's luxury Blue Train is set to go private. State rail company Spoornet is to offer the Blue Train to investors on a long-term lease, as the operator focuses on its core business of bulk freight transportation. According to Business Day, Public Enterprises Director-General Portia Molefe told Parliament's portfolio committee on public enterprises last month that the department had received a disposal strategy from Spoornet's parent company, Transnet, with bidding to start by the end of April. According to the newspaper, bidding will be open to both local and international rail operators, with speculation that Chinese, Indian and British investors are interested in the sale.