Mozambique and South Africa to Build $620 Million Fuel Pipeline

A Mozambican and South African consortium, Petroline Holdings, plans to start building a $620-million oil pipeline linking Johannesburg to the port of Maputo before the end of this year. According to Mateus Kathupa, CEO of state-run Mozambican company PETROMOC, which holds a 40% stake in the consortium, the construction of the petrol and diesel pipeline will take six months.

DRC to Push Ahead with $9 Billion Chinese Mining and Infrastructure Package

The Democratic Republic of Congo will push ahead with a $9 billion Chinese mining and infrastructure package despite pressure from the International Monetary Fund (IMF) which believes the deal will add to Congo's debt mountain. Under the 2007 agreement, Congo will receive much-needed roads, railways, hospitals and schools while China secures billions of dollars worth of lucrative copper and cobalt reserves it needs to feed its export-driven economy. Both Chinese and Congolese officials reject the idea that the contract risks plunging the mineral-rich but cash-strapped former Belgian colony deeper into debt. Negotiations on an initial $6 billion worth of public works and mining infrastructure projects have already been finalized and Congo is still discussing the terms of the remaining $3 billion investment, which will likely not be required before the funds included in the current deal are exhausted in four or five years. Earlier this month, the IMF's executive board approved $195.5 million for Congo from its Exogenous Shocks Facility, designed to speed financing to countries hurt by the slump. The World Bank has promised $100 million in grants to pay teachers' salaries, electricity and water bills. The European Union and African Development Bank are expected to offer additional emergency funding.

Lifan to Set up $10 Million Assembly Plant in Ethiopia

Lifan Group, one of the biggest privately-owned enterprises in China, will set up a vehicle assembly plant, the first of its type, in Ethiopia with an initial investment outlay of $10 million, Pan Juequan, chief representative of the company and project manager of the future establishment in Ethiopia told The Reporter. Lifan Group is also the sole supplier of engines, motors and spare-parts for the locally assembled Holland Car which produces Abay and Awash antomobile for the local market and export.

Financial Crisis 'Will Cost Africa $49 Billion'

The financial crisis and global recession will see African economies lose up to to $49bn by the end of this year, research by ActionAid suggests. About $27bn of this was a fall in aid, export earnings and income from richer recession-hit nations said the charity, with the loss in income equivalent to a 10% pay cut for the continent. The ActionAid report found that countries which liberalised their markets, and were large enough to attract significant investment would be most affected by the financial crisis. South Africa would be among the hardest hit, as it was likely to see income from abroad plunge to around a fifth of the country's economic output. Although developing countries didn't make this crisis, it has become all too clear that they are in the firing line when it comes to suffering its worst effects," said ActionAid's head of policy, Claire Melamed.

Transnet, Japan sign Loan Agreement to Widen Durban Harbour

State owned utility Transnet has signed a R4 billion loan agreement with the Japan Bank for International Co-operation (JBIC) to fund the widening and deepening of the Durban harbour. According to the company, the project is primarily intended to enable the port to accommodate larger vessels and benefit Japanese companies. JBIC has a mandate to secure natural resources for Japan, promote Japanese business abroad to enhance international competition and provide assistance to respond to the financial crisis. JBIC has leveraged 40 percent participation of other Japanese financial institutions, including the Sumitomo Mitsui Banking Corporation in the loan. Transnet will make 20 repayments to JBIC over the next 10 years.

Mozambique Aid Partners Approve $814 Million for Budget

A group of Mozambique's nineteen development partners have approved a $816 million aid package to support the government's 2009 state budget and other development projects for the next five years. The group, known as the Programme Aid Partners (PAP), who provide support to the national budget, are the largest grouping of its kind in Sub-Saharan Africa. In 2009, the government of Mozambique will receive assistance of $455 million from nineteen development partners in the form of general support to the country's budget, as well as a further $361 million in pooled funding from the same partners to support the sectors. Between 2004 and 2008, Mozambique received $1.689 billion in general budget support from the same group. PAP comprises the African Development Bank, Austria, Belgium, Canada, Denmark, the European Union, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the World Bank. Under the agreement, the government committed itself to continued poverty reduction, democracy and the respect of human rights. Mozambique approved a 2009 annual budget of $4 billion as it increased spending on agriculture, education, health and infrastructure.

DBSA to fund R700m Hospital for Lesotho

The Development Bank of Southern Africa has signed loan agreements of about R700 million to construct, upgrade and operate a new public referral hospital in Lesotho. The hospital would be situated at Bots'abelo, the site of the government's medical campus in Maseru, the bank said in a statement with Tsepong and the government of Lesotho.

African Development Bank and Egypt Sign US$ 450 million Thermal Power Project Agreement

The African Development Bank (AfDB) Group has affirmed its support to a major power project in Egypt with the signing of a US$ 450 million loan agreement for the construction of a 1300 MW (2x650 MW) steam turbine power plant near Ain Sokhna seaport on the Gulf of Suez. The loan is a long-term foreign currency financing that represents 22 percent of the total cost of the project. The rest of the project's cost will be covered by the Egyptian Electricity Holding Company (EHHC), the World Bank, the Arab Fund for Social and Economic Development and the Kuwait Fund for Arab Economic Development. The project involves the construction of a greenfield supercritical steam turbine power plant, located adjacent to the sea port and industrial area of Ain Sokhna on the Gulf of Suez, 112 km east of Cairo, in order to enhance Egypt's socio-economic development by providing energy to increase the power generation capacity in the country, and partially meet the electricity demand on the Unified Power System (UPS). This is in line with the government's 6th Five-Year Development Plan (2007-2012) in which the expansion of electricity infrastructure is among the top priorities. The power generated will be used for industrial and commercial activities country-wide, thus contributing to job creation, increase in productivity and in electricity connection rates as well as in the improvement of the quality of life of the Egyptian people.

China Breaks Ground in 'south-south' Agricultural Cooperation, says UN agency

In creating a $30 million trust fund to boost the food output of developing countries, China has cemented its role as a major global player in cooperation between developing countries, according to the United Nations agricultural agency, the FAO. Under the agreement, China will provide technical experts and resources to developing countries to improve their agricultural productivity and help achieve the Millennium Development Goals (MDGs), a list of targets for cutting extreme poverty and other global ills by 2015. The trust fund will have a strong focus on Africa, but will not exclude other regions, FAO said, and will last for three years, with China releasing $10 million per year. The agency notes that China has been providing technical cooperation through FAO in Africa for many years and in 2005 it formalized a Strategic Alliance for south-south cooperation in which developing countries help each other through transfer of knowledge, personnel and technologies. The Strategic Alliance is carried out under the umbrellas of FAO’s National and Regional Programmes for Food Security and envisages the provision of up to 3,000 Chinese experts and technicians to developing countries under the trust fund arrangement. Five hundred experts and technicians from China were fielded to Nigeria between 2003 and 2007 and, overall, over 700 Chinese experts have been fielded to all regions of the world since the inception of the south-south cooperation programme, FAO said.

IFC Partnership for Financial Credit

The International Finance Corporation (IFC) has partnered with the Alliance for a Green Revolution in Africa (AGRA) in Nairobi to unlock credit and financing for small-scale farmers and agribusinesses across sub-Saharan Africa. The organisation will expand AGRA's existing innovative financing projects to reach more countries and key stakeholders in the African agricultural value chain.

Nigeria and China Agree on Replacement Satellite by 2011

Nigeria and China have signed a contract for a new communications satellite that will replace one sidelined by a power failure, a newspaper reported Wednesday. According to the contract signed in Beijing on Tuesday, the replacement satellite has been named NIGCOMSAT-1R and is due to be launched by 2011 with no cost to Nigeria, the Lagos-based Guardian reported. The new space vehicle will replace NIGCOMSAT-1, which was launched on May 14, 2007, but was displaced on Nov. 10, 2008, because of a solar power failure that occurred on one edge of the satellite.

Chinese Firms to Build Massive Industrial Park in Botswana

Funded by two Chinese companies, Daheng Holdings Group and Touch International Holdings Group, for US$52 million, the Phakalane Industrial Park will major in textiles and clothing products. The Daheng Group anticipates that 66 companies from all over the world will build factories in the park, creating 8,000 jobs. The project is expected to generate US$280 million in foreign revenue. In a bid to pay back to the Botswana society, his company has decided to set up the Daheng International Charity Foundation. The Daheng Group has also launched its charity foundation, saying the foundation will assist the disadvantaged live a more dignified life. The Daheng Group has donated an initial P500,000 to the foundation.

China's Largest Hydropower Company Wins Project in West Africa

Stated-owned Sinohydro Corp, the largest hydropower engineering and construction company in China, recently won a hydroelectric project in West Africa, according to information released yesterday by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), sources reported. The EUR $282 million contract was signed by Communaute Electrique du Benin (CEB), Benin's state-owned electricity company, and Sinohydro Corp, in Lome, the capital of Togo.

Stanbank's $400m African trade lifeline

South African-based multinational banking group Standard Bank is to receive a US$400-million (about R.3.6-billion) credit line from the International Finance Corporation (IFC) to support trade in sub-Saharan Africa and address the shortage of trade finance resulting from the global financial crisis. The loan is part of a coordinated global initiative, announced during the G20 Summit in London last week, under which up to $5-billion will be disbursed through the Global Trade Liquidity Program to regional banks, who will use the financing to extend trade finance to importers and exporters from developing countries. The programme is expected to support about $50-billion in trade with developing countries, with Standard Bank being the first African financial institution to join. The bank will use the financing to expand funding for trade of consumer goods, intermediate goods, smaller machinery and commodities demanded by market enterprises in sub-Saharan Africa. According to the bank, its extensive Africa footprint puts it in an ideal position to facilitate trade flows into and out of Africa.

Joule to Hit South Africa's Roads

A pilot fleet of South African-made electric cars are due to hit the country's roads by 2010, says Optimal Energy, the company which manufactures the electric-powered Joule. The company has received financial backing from the Department of Science and Technology and issued shares to the Industrial Development Corporation. After the pilot fleet is launched, the company plans to begin mass production in 2012. According to the company, it will not be hindered by the current economic situation, adding that there was "enormous interest" in the Joule.

China Deepens Relationship with Africa

More opportunities for Chinese investment into Africa are to open up soon, with the announcement that China is to bolster its China-Africa Development Fund by an additional US$2-billion. The state-run equity fund has already invested in 20 projects, totalling a massive $400-million, in Africa since it was established in June 2007. The latest development will give Chinese enterprises added impetus to sink their funds into the continent, particularly in light of the withdrawal of Western investors, many of whom find themselves under financial pressure because of the global recession. The China-Africa Development Fund (CADFund) opened its first South African office in Johannesburg on 16 March 2009. This, according to the fund, is a major step for Sino-African co-operation and a positive sign for economic development in Africa. China plans to double its assistance to Africa by 2009 - this encompasses an amount of $3-billion in preferential loans, $2-billion in preferential buyer's credits to Africa, the establishment of the $5-billion China-Africa Development Fund, and the waiving of debts owed to China by a number of poor African countries.

Expat Demand Boosts South African Property

An increase in inquiries about local property indicates that South Africans living abroad are coming home due to the international economic meltdown, according to Seeff Properties. Seeff general manager Emarie Campbell said this was indicated by inquiries made by South African expatriates on the company's website. Campbell said that at a property exhibition held by Homecoming Revolution in London, most expatriates visiting the Seeff stand indicated their desire to return to South Africa within 24 months. In contrast, Campbell said, overseas inquiries from Europeans looking for second or holiday homes, or to invest in South African farms, had dropped.

MTN takes Phone Banking to Africa

South African mobile phone company MTN is to expand its mobile banking services to countries in Africa and the Middle East. According to the company, the successful launch of its mobile money transfer programme in Uganda marked the beginning of a series of planned launches across its international operations. The product, called MTN MobileMoney, will allow customers to manage money and make payments from their mobile handsets. The service is not new to South Africa, but the company will now expand into 20 other countries in 2009. Specialist mobile financial services provider Fundamo will provide the software in a deal worth US$9.7-million, MTN said. Mobile banking has become popular in the developing world, where most cannot afford to use traditional banks that charge hefty account fees. With MTN's mobile banking, customers will not have to open a traditional bank account, as deposits will be made into their mobile banking accounts at shops, bank branches and cash machines. Customers will be able to check their balances, buy airtime and pay bills by sending instructions on their mobile phones. MTN has been piloting mobile money transfer services through MTN Uganda and at the group's West and Central Africa region operations (Cameroon, Ghana, Cote d'Ivoire and Nigeria) since October 2008. Five additional pilots were recently launched in Benin, Congo Brazzaville, Guinea Bissau, Guinea Conakry and Liberia.

ICF announces Airport Improvement Project for Sierra Leone

The Investment Climate Facility for Africa (ICF), in partnership with the Government of Sierra Leone, has announced a project to improve Sierra Leone’s airport infrastructure to help make troublesome travel a thing of the past for visitors to the West African country. A second ICF project, also announced today, will speed up commercial justice and dispute resolution in Sierra Leone. The two year airport transfer project aims to drastically improve connections for air passengers between Freetown and Sierra Leone's International Airport. The international airport, situated on the Lungi Peninsula in the Port Loko district, is 176km away from the capital city. Air transfer by road currently takes between five and seven hours, with many roads still severely dilapidated due to damage and neglect inflicted during the civil unrest of the 1990s. Other alternative transfer options, which include ferry, hovercraft, helicopter and taxi boats, are generally considered expensive, unreliable or inconvenient. Services are often not compatible with international flight times, leading to long waits at the airport. The two-year project will set up an Airport Transfer Unit (ATU) to oversee the licensing and monitoring of transfers to and from the airport. ATU will build on existing laws and regulations to streamline the airport transfer regulatory and administrative framework while also looking into training and capacity building, as well as improving office and IT infrastructure. The project will also improve jetties and terminal facilities and encourage the private sector to provide more competitive and reliable ferry and boat services. The Investment Climate Facility for Africa is a unique public-private partnership between government and business that aims to help Africa create a more attractive business environment and realize its potential as a global player and trading partner.

Liberia Buys Back Debt Deal

Liberia has significantly reduced its foreign debt by buying back $1.2 billion in outstanding government debt at a discount of nearly 97% of face value, the steepest ever negotiated on developing country commercial debt, the country has announced. The deal, according to the World Bank report, was concluded with the payment of $38 million to retire 25 outstanding commercial claims. The World Bank contributed half of the money through the International Development Association (IDA) Debt Reduction Facility, and Germany, Norway, the United Kingdom, and the United States are said to have contributed the other half.

Standard Providing Easier Banking for Chinese Tourists

Standard Bank has partnered with China UnionPay to allow cardholders visiting South Africa to withdraw cash from over 4 300 Standard Bank ATM machines and make payments through its point-of-sale terminal network. The two parties have started implementing the system, and expect it to be fully functional by the end of 2009.By being able to withdraw cash and make payments directly at Standard Bank ATM machines and its merchant point-of-sale networks, China UnionPay cardholders will be offered a convenient, safe and cost-effective experience during their stay in South Africa. China UnionPay is China's only domestic credit card organisation and interbank network in mainland China, linking the ATMs of all major state banks and many smaller commercial banks throughout mainland China. By the end of 2008, 196 China UnionPay domestic member banks issued more than 1.8-billion cards.

Sasol Weighing Uzbek GTL project

South African petrochemical company Sasol has teamed up with Uzbekneftegaz, the national oil and gas company of Uzbekistan, and Malaysia's Petronas to look into the possibility of developing a gas-to-liquids (GTL) project in the central Asian country. The agreement follows the positive outcome of a joint pre-feasibility study based on Sasol's proprietary technology, which would be deployed to produce high-quality transportation fuels from Uzbekistan's abundant domestic gas reserves. The GTL project would enhance Uzbekistan's fuel production and also make a significant contribution to its economy. The partners are currently in negotiation with the Uzbekistan government over the required project enablers, and plan to proceed to the next phase of the project, which will involve establishing a joint venture company.

South African Brewery Extends Its Reach

South African multinational SABMiller, the world's second-largest brewery, is to tap into an African market worth over US$3-billion (R30-billion) by opening four new brewing plants in Mozambique, Tanzania, Sudan and Angola. SABMiller will open the new breweries this year to benefit from the various countries' economical growth, which is estimated at between 4% and 5%. The company has decided to focus on continuing its expansion into African countries as they were mainly cash economies, and had not run up exposure to credit like many western countries have. The brewery has existing operations in Nigeria, Botswana, Lesotho, Swaziland, Tanzania, Uganda, Mozambique, Angola, Zimbabwe, Zambia, Malawi, Ghana, Comoros and Mayotte. SABMiller aims to reduce the price of beer, which at the moment is averaging around R10 ($1), by introducing new, cheaper brands. The brewery will continue its supply of mainstream and premium beers to its international clients. One strategy, which should cut costs significantly, is researching new brewing technologies by bringing together 55 000 barley farmers to form part of the programme by 2011. Another cost cutting option is expanding the production of sorghum-based beer, currently produced on the continent under the brand name, Eagle. In addition to that they have partnerships with small-scale farmers in Uganda, Zambia, Zimbabwe and Tanzania to supply barley and sorghum.

IMF Reforms, Dumps 'Conditionalities'

In a dramatic turn of events, the International Monetary Fund (IMF) is scrapping some of the stringent harmful conditionalities that has caused lingering mistrust and stigmatized the Fund's operations in developing countries, particularly in Africa. The Fund said lending will no longer be tied to its mandatory structural performance criteria starting May 1. Instead, borrowing countries would be able to receive money based on their domestic reform programmes.

Zimbabwe's RBZ to Repay FCA Funds

The Reserve Bank of Zimbabwe will repay some of the funds that it took from Foreign Currency Accounts belonging to some exporters about two years ago.

Central Bank of Nigeria Boosts Economy with N955 Billion

In an apparent bid to douse the scarcity of funds in the economy, the Central Bank of Nigeria(CBN) has injected about N955 billion into the banking industry as it reduced bank's liquidity ratio and cash reserve requirement to 25 per cent and 1.0 per cent respectively. The liquidity ratio is the portion of banks' total assets that are kept in liquid assets such as treasury bills and government bonds; while the cash reserve requirement is the portion of banks total assets that they must keep in cash.

Gloomy Economic Perspective for Central Africa

BEAC report presents a general drop in activity for the second quarter. A synthesis of information from companies conducted by the National Branch of the Bank of Central African States (BEAC) indicates a gloomy picture of the economy in the second quarter of 2009. The report published in Yaoundé projects a drop in production for several commodities as a result of the global financial crisis, climatic changes and low supply of inputs. It equally blames the situation on poor road infrastructure.

Three Nigerian Banks Named Among World's Biggest

Three Nigerian banks - First Bank of Nigeria Plc, United Bank for Africa (UBA) Plc and Intercontinental Bank Plc - have made the Forbes list of top 2000 world biggest companies. The trio, according to Forbes Magazine, is joining 248 other companies around the world to displace same number of companies that featured on the list in the 2008 ranking. For Nigeria, the listing of these banks on the current Global 2000 is a cause for cheers. First Bank Plc is ranked at 1,375, while the UBA comes on the list at number 1,560. Intercontinental Bank Plc completes Nigeria's showing at 1,798.

Ghanaian Remittances dip 16%

The volume of remittances from Ghanaians abroad has dropped by some 16 per cent, in line with general expectations of a possible dip. The latest figures cited indicate that monies sent from Ghanaians abroad to relations home, between January and February 2009, stands at $250m, a drop from the $300m registered for the same period last year. The situation, brought on by the global recession, is likely to worsen in the months ahead but will get better with time, analysts say. Analysts further cite job losses and the loss of investments by Ghanaians living abroad as the reasons stoking the drop.

GT Bank Gets AA Minus Rating from Fitch

GT Bank Plc has been noted as one of Nigeria's most profitable institutions following its rating of AA- (double A minus) by Fitch. The bank had recorded BB- (double B minus) by Standard & Poor's, the best ratings assigned by the two international rating agencies to any Nigerian or West African-based bank.