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BRIEFS [African Business](African Business Via Acquire Media NewsEdge) RESEARCH Nigeria and Uganda to join space race »Nigeria's National Space Research and Development Agency, NASRDA, said it hopes to produce the first Nigerian astronaut in 2015. The plan is part of the agency's 25 years roadmap for space and technology development. Also as part of the agency's plan to advance the development of space technology in the country, there are plans to begin planning and designing satellites by 2020 and by 2025, and to begin the commercialisation and conversion of locally produced technologies that will prepare them for a wider acceptability in Nigeria and beyond. The Ugandan government has promised to support efforts of a group of Ugandans who are developing technology to launch the first space observer on the African continent, the African Space Research Programme (ASRP). $2.3bn ThemajorityofKenyanimportsarefromIndia, valued at $2.3bn in 2012. Imports to Kenya from China were $1.9bn and from the UAE $1.7bn Most foreign Embassies in Africa China 48 Russia 38 Brazil 33 US 49 France 46 LETTERS TO THE EDITOR OIL AND GAS Continued foreign exploitation Thank you for your in-depth treatment of the continent's emerging oil and gas resources in your March 2013 issue. However, one can take issue with your lack of caution to these countries. Why should underpowered, unindustrialised - yet rapidly populating Africa - continue to export its second-most-important nonhuman resource (after fresh water) in crude form To this day, have we not realised the scale of jobs and opportunities we have been giving away to foreign lands - only for many of our learned elite to follow them there Crude oil is a finite resource from which numerous products and services are derived. Why are we encouraging governments to donate these It is not enough to try to raise 'forex' for infrastructure. Who builds and maintains this infrastructure - and at what cost Don't we see that actually both the crude oil and the 'forex' end up in foreign lands leaving us with structures we can hardly maintain on our own What will befall our future generations when we have depleted this resource What is needed is refining the oil in Africa - and for Africans first and foremost. Those oil companies can still make money by exporting excess refined products and by-products. If they insist they can't, they should pack and try elsewhere. Meantime, we Africans must intensify efforts to develop technological capacity to refine our stuff. For the case of Uganda, your articles let the continent down: you failed to acknowledge the sustained effort (since early 1990s) government put in to develop indigenous exploration capacity - and is now putting into petrochemical engineering. Irrespective of its faults, these actions need to be emulated elsewhere. Eng.Kant Ateenyi Kanyarusoke Cape Town, South Africa INTERNATIONAL News from the Brics Summit »Among the Brics bloc countries, South Africa spends the highest percentage of GDP on education - 6.8% - followed by Brazil at 4.3%, Russia at 4.1%, China 3.9% and India 3.8. On other social spending, South Africa ranks third among the Brics countries in spending on health per GDP - with China leading with health expenditure amounting to 5.2% of GDP. Brazil had the highest percentge of economically active population - 68.6%, with China at 56.6%, Russia and Inia 53% and South Africa only 35.4%. South Africa has the second highest percentage of women in the general population, at 51.5% in 2011, behind Russia at 53.7%, with Brazil at 50.5%, China 48.7% and India 48.4%. South Africa is ranked third when it comes to GDP per capita - at $7,790 in 2011, behind Russia at $14,015 and Brazil at $11,463, and ahead of China with $6,091 and India, $1,440. outh Africa had the highest tourist arrivals in 2011 at over 8.3m, followed by India with 6.3m. Brics countries' trade with rest of world was $5.6 trillion in 2012, 16% of total global trade. Trade among BRICS member countries - $310bn in 2012, more than an elevenfold increase from $28bn in 2002. Interestingly, BRICS member countries trade more with Africa than they do with among themselves. Their total trade with Africa was $340bn in 2012, having increased more than tenfold since 2002. (See also Countryfile South Africa.) 27% 27%ofNigeria's stock market index is composed of companies founded by Aliko Dangote or controlled by him 14m Kenya'sM-Pesanowserves more than 14m customers (more than 70% of the country's adult population). IMF has raised its subSaharan Africa growth forecast to 6.1% Less than 2% of Africa's youth are studying agriculture Mozambique offshore fields may hold as much as 250 trillion cubic feet of gas, enough to meet world consumption for more than two years In Uganda only 4m of its 34m citizens have bank accounts On average, urban Africans spend more on apparel and food than those in Brazil, China and India IFRASTRUCTURE Transnet secures $5bn Chinese loan South Africa's Transnet will get a $5bn loan from the China Development Bank to support its planned railway infrastructure rehabilitation programme which is worth over $33.82bn over the next seven years. It includes cooperation on local manufacturing of equipment especially for the rail and ports sectors. The deal also includes a collaborative agreement on future research and development initiatives, manufacturing, marketing and the construction of cross-border infrastructure throughout the continent. DEALS Nigeria $225m infrastructure deal Seven Energy International, Accugas Limited, FBN, First Bank of Nigeria, UBA, FCMB and Stanbic IBTC signed a $225 million Syndicated Medium Term facility to be used towards refinancing the $55m debt secured for the Akwa Ibom gas pipeline project, with the balance of $170m to be used towards part financing the cost of expanding its gas processing facilities and building a new gas pipeline to supply gas to the Calabar NIPP power plant. The Calabar Project involves the construction of a 37km gas pipeline from the Uquo gas field in Akwa Ibom state to Oron for delivery of 131 MMscfpd of gas to the 560MW power plant in Calabar, scheduled to be completed in July 2014. The project will assist in bridging the gas deficit for power generation. FOOD AND DRINK Eagle flies in Ghana Global brewery conglomerate SABMiller will begin brewing a cassava beer, called Eagle, in Ghana though local subsidiary Accra Brewery. It launched the first commercially produced cassava beer, Impala, in Mozambique 18 months ago. Its strategy reflects the changing demographics of sub-Saharan Africa. With the launch of Eagle Beer, cassava could become a cash crop for the local community to sell commercially. New markets for Ugandan tea Uganda Export Promotion Board (UEPB) is looking out for markets which can buy Uganda's tea directly in the Middle East. Ugandan traders feel disadvantaged in reaching international markets because they have to transport their produce from Uganda to Mombasa, Kenya, where tea from most African growers is auctioned and sold. American Garden targets Africa Household food company American Garden plans to expand its brand and exploit opportunities across Africa. It sees about 50% business growth potential in African and emerging markets. The company started 20 years ago with just one product. Today, based in the US and Dubai, it has over 250 products including canned foods, condiments, kitchen helpers, sweet treats and snacks in over 50 countries. Malaysia ahead of China »Malaysia is ahead of China in the size of its direct foreign investment (FDI) into Africa and the gap is widening, according to United Nations data. For Malaysia, the big spenders in Africa include firms such as Petronas and Sime Darby. Malaysia was the third biggest investor in Africa in 2011, behind France and the US, pushing China and India into fourth and fifth positions. France and the US also have the largest historical stock of investments in Africa, with Britain in third place and Malaysia in fourth, followed by South Africa, China and India. The other two Brics - Russia and Brazil - have minimal direct investments in the continent. Malaysia's portfolio in Africa $19.3bn, more than the $16bn of African investments owned by China and the $14bn held by India. The five Brics have escalated their investments in Africa from almost nothing in the 2000-2002 to 4% of their outward FDI in 2009-2011. By contrast, Malaysia sent 24% of its outward FDI to Africa in 2011, mainly to Mauritius in that year. Japan's FDI to Africa exceeded its 2012 target of $3.4bn, reaching over $6bn two years ahead of time. The huge Japanese investment went into expanding business opportunities in African nations and is aimed at creatin employment, expanded trade and investment and promoting political stability for foreign investors. $1m Japan is currently South Africa's third-largest trading partner, with two-way trade of nearly $1bn recorded in 2011 $14m SubscribersinBotswana, Namibia, South Africa and Zambia make a total of 1.2m mobile banking transactions per month, moving an estimated $14m Less than 2% of Africa's youth are studying agriculture Africa has the highest share of social science and humanities graduates of any world region 1 in 5 Kenyans skipped a meal or other expense to afford more mobile airtime in 2012 Economies in subSaharan Africa will ride out the bumpy global recovery in the next few years to post growth rates not seen outside Asia, the IMF said. AIRLINES Ethiopian links with two more cities Ethiopian Airlines began flights to Ndola in Zambia and Blantyre in Malawi, making 46 destinations in Africa, Africa's largest network. Kenya Airways' Zambia route Kenya Airways will increase its presence in Zambia with the launch of flights to Livingstone. The three weekly flights to the popular tourist city targets visitors to the Victoria Falls, and will connect through Zimbabwe's Harare International Airport. The airline already serves Lusaka and Ndola with direct flights MANUFACTURING Africa opens steel plant MM Integrated Steel Uganda, a leading steel manufacturer in the region, is set to produce 50,000 tonnes of steel products a year at its new $47m plant in Jinja, including iron bars, iron sheets and storage tanks. It will directly employ 1,800 people. The company has projected to invest $600m in the next five years. PHARMACEUTICALS New factory for South Africa Procter and Gamble is to build a $175m export-oriented factory in South Africa, making it the latest multinational to position itself on the fast-growing continent. INTERNATIONAL Poland enters the fray Poland's Prime Minister Donald Tusk led a delegation of 30 Polish companies from various sectors to Nigeria. The intention is to start a programme called 'Go Africa' operated by the Polish Investment Agency with the support of Ministry of Economy. With more Polish companies planning expansion abroad, the Go Africa programme aims to facilitate Polish investments in oil-rich Nigeria. Kulcyzk, an international upstream oil and gas company, acquired oil mining licence 42 for $585m in March. MANAGEMENT A million managers wanted The African Management Initiative (AMI) wants to create 1m African managers by 2013. Africa has only around 90 business schools offering an MBA, fewer than 10 of which measuring up to international standards. AMI has two corporate partners and funding from the Lundin Foundation and Tony Elumelu Foundation. Its founders are creating initiatives that will help African managers access management training ranging from a virtual campus to a $2m business school that will provide a model for the continent. AGRICULTURE Sasakawa expands in Nigeria »The Sasakawa Africa Association (SA), the international NGO, which has been working with small-scale farmers in Africa since 1986, has signed an agreement with Nigeria's Federal Ministry of Agriculture and Rural Development (above), described by SA's Chairperson, Ruth Oniang'o, as "a milestone in our relations with Nigeria". SAA, which was founded by Japanese philanthropist Ryoichi Sasakawa, Nobel Laureate the late Dr Norman Borlaug, and former US President Jimmy Carter, began operations in March 1992 in the two northern states of Kano and Kaduna. SA is currently involved in seven states to strengthen extension activities through the value chain approach with crops such as maize, rice, sorghum, millet, wheat and cowpea. SA's sister project, also chaired by Ruth Oniang'o - SAFE (Sasakawa Africa Fund for Extension Education) - is building the skills and qualifications of mid-career extension professionals in four Nigerian universities. Described by Federal Minister for Agriculture and Rural Development, Akinwumi Adesina, as "a strategic partner in our quest to transform the country", SA will now expand its activities throughout Nigeria. The involvement of SA will target the national extension system to ensure that smallholder farmers have access to critical services such as training with new agricultural technologies and advice in areas such as farmers input supply, credit marketing and farm management. SAFE will also expand in Nigeria. 650m In 2012 there were 650m mobile phone subscribers in Africa, more than either the EU or the US $330m Tanzania is to spend $330m on rail upgrading, following agreement between the Tanzania Zambia Railway Authority (Tazara), Zambia Railways and Société Nationale des Chemins de Fer of DR Congo 68% of multinationals are not in Africa The World Bank to invest $180m in Mali within the next three months South Africa-Zimbabwe trade Zimbabwe incurred a negative trade balance of $532m from its trade with South Africa after importing $3.2bn worth of goods compared to exports to the same country of $2.7bn. Trade between the two countries totalled $5.9bn last year from $4.6bn in 2011 and South Africa remains Zimbabwe's biggest trading partner accounting for more than 60% of imports POWER Cross-border to Mozambique and Namibia The Aggreko Shanduka cross-border power project at Ressano Garcia in Mozambique was awarded Africa's Best Fast Track Power Project in 2012 at the Africa Energy Awards. It is recognised as the world's first interim cross-border IPP (Independent Power Provider) project, connected to the Southern African Power Pool (SAPP) which links the power grids of nine Southern African countries. Aggreko has signed tri-party power purchase agreements with Electricidade de Mocambique and NamPower to extend the facilty to add 122 MW. It will see the installed capacity split with EDM utilising up to 32 MW and NamPower up to 90 MW and will supply power for a minimum of two years. Natural gas will be supplied by South Africa's Matola Gas Company. The total value of the project is likely to be in excess of $200m including fuel costs. EMPLOYMENT Microsoft boosts youth employability Microsoft Nigeria through its YouthSpark initiative is partnering with the National Youth Service Corps (NYSC) - Nigeria's largest body of university graduates. YouthSpark's Nigerian arm is a collaboration between Microsoft Nigeria, NYSC, Mind the Gap, a job creation, employability and social entrepreneurship incubation programme, and Future Enterprise Support Scheme, an online community where young people can come together to share knowledge, ideas, tips and resources. By 2016, the Microsoft 4Afrika Initiative plans to help place tens of millions of smart devices in the hands of African youth, bring 1m African small and medium enterprises online, up-skill 100,000 members of Africa's existing workforce, and help an additional 100,000 recent graduates develop skills for employability, 75% of which Microsoft will help place in jobs. OIL AND GAS Small firms increase share Smaller dealers have increased their combined market share from 25.3% to 33% in the past three years. Data from the Petroleum Institute of East Africa, the industry lobby, shows that the market share of the multinationals dropped to 67% last year from 74.7% in 2010 and 85.5% in 2007. Smaller oil companies are growing their retail network at a faster rate than the oil majors. Smaller players have also benefited from their low-cost operations compared to those of multinationals. The local players are making their money from selling fuel to independent dealers - resellers - and corporate institutions such as power generators, which are emerging as market-share drivers. International India-Africa trade »India aims to increase trade volumes and investment with Africa, alongside developmental activities. African governments must support the private sector by creating favourable business environments and invest in infrastructure and trade finance: they must look at policies and institutions to improve trade. Africa exports more to India ($43bn in 2011) than it imports ($23bn). India-Africa trade is concentrated on commodities and low-end manufacturing. India wants to push higherend goods into African markets and is working on increasing the two-way trade, with an emphasis on more value-addition in African economies as they industrialise. Only Nigeria, Angola, Algeria and South Africa have trade surpluses with India and account for 68.6% of total Africa-India trade. Of India's top 10 trading partners in Africa, seven export oil to it. India imports about 80% of its crude oil, with African exporters supplying 20%. Uganda, Tanzania and Niger are key suppliers of uranium for nuclear power generation. East Africa, despite its cultural and historical relations with India, is yet to exploit twoway trade. This is likely to worsen as India is seeking "geographical diversification" of bilateral trade. It wants to deepen ties with African economies that have had little or no shared cultural history. India is Africa's fourthlargest trade partner after the EU, China and the US. It accounted for 5.2% of Africa's global trade in 2011. 48m Nigeria is Africa's top internet user, with over 48m users $431m The Gambian government plans to spend $431m on a five-year export strategy to reduce unemployment and alleviate poverty New E African agency Kenya has set up an autonomous agency to manage the implementation of a mega infrastructure project. The Lamu Port Southern Sudan Ethiopia Transport Corridor (Lapsset) Development Authority will manage the $29.24bn project on behalf of the government, with headquarters in Nairobi. The new agency is expected to push for public private partnerships (PPPs) to help with the implementation Within three decades Africa will have a larger working-age population than China Shares in Uchumi, the supermarket chain, were the top performer on the Nairobi bourse last year, rising 150%. It is eyeing Rwanda and South Sudan LNG plant planned for onshore Tanzania HT Norway's Statoil and UK-based BG Group will jointly develop a $10bn liquefied natural gas terminal on- shore Tanzania to exploit their gas discoveries off the East African country. Statoil will recommend a site for the country's first liquefied natural-gas plant with at least two trains to handle production from its Block 2, where volumes are now seen at 10 trillion to 13 trillion cubic feet, and BGoperated Block 1. Statoil said it will be a huge project with a big offshore element, pipelines to land and a very large onshore development. CHINAWATCH Congo hospital completed During his Africa trip, China's President Xi Jinping attended the completion ceremony of the China-Congo Friendship Hospital in Brazzaville, one of the 30 facilities in Africa the Chinese government committed to help build at the 2006 Forum on China-Africa Cooperation. The 95-bed hospital will be the largest general hospital in the region. China contributed more than $6m to its construction. More loans offered China is offering $20bn of loans to Africa between 2013 and 2015. In Congo, it will finance a $63m project to construct a river port in Oyo, where the government plans to develop a new special economic zone. Other projects to receive Chinese backing include a 19-megawatt hydroelectric power station, and the construction of a new port capable of handling mineral ore shipments in Pointe-Noire. China also agreed to around $29.36m in grants and zero-interest loans, and will build 200 homes and a school. TELECOMS First female MD Bharti Airtel has announced the appointment of Charity Chanda Lumpa as Managing Director (MD) of Airtel's operation in Zambia. Chanda Lumpa is back in her home country after a six-month stint in Lome, Togo, where she was the Head of Ecobank Group Credit Administration. Prior to her current appointment, she was Managing Director for Ecobank in Zambia and previously the Managing Director and Chief Executive Officer of the Zambia National Tourist Board (ZNTB) (c) 2013 IC Publications Provided by Syndigate.info an Albawaba.com company |