BP Returns to Libya in $900m Deal

Oil giant BP has announced that it has struck a deal to return to Libya after an absence of more than 30 years. Chief executive Tony Hayward said the $900m (£453m) joint venture with the Libya Investment Corporation was BP's "biggest exploration commitment". The group will explore about 54,000 square kilometres - at the onshore Ghadames and offshore Sirt basins. The announcement was made during Prime Minister Tony Blair's visit to the Libyan capital, Tripoli. BP withdrew from Libya in 1974, when its oil industry was nationalised. "We are now beginning to develop an economic relationship with Libya," Mr. Blair's spokesman said. "That's why companies such as BP can begin to go back into the country today." Source: Databank

Brazilian Group Invests in Building Factory in Angola

The Brazilian group, Medabil, plans to invest approximately US$ 20.5 million in building a factory, in Angola, to produce and assemble metallic structures. This will be the first unit of the Brazilian group in a foreign country and it will be built in partnership with the Angolan group, Gema, which will have a 49 percent stake in the business. The decision to open an Angolan subsidiary follows two months after the signing of a contract with the Angolan government valued at US$ 15 million to carry out 88 different construction projects. The contract includes building a metallic structure for small supermarkets and industrial pavilions, said Attlio Bilibbio, chairman of Medabil, which has headquarters in the Brazilian state of Rio Grande do Sul. The factory will be built on the outskirts of Luanda, and will have the capacity to process 12,000 tons of steel per year, based on raw materials imported from Brazil. The new units, which are due to begin operating in the second half of 2008, may also be the basis for operations in nearby countries such as Mozambique.

Mawuli Ababio Appointed as Managing Director of Africa Venture Capital Association

John Mawuli Ababio has been appointed Managing Director of the Africa Venture Capital Association (AVCA). Ababio has 20 years experience in the financial sector in Africa with a career that has included stints with SIFIDA Investment Company and the African Development Bank, where his Unit was involved in providing loan and equity financing to the African Private Sector. Ababio previously managed the Commonwealth Development Corporation (CDC) sponsored Venture Capital Company (now part of Aureos West Africa) has also consulted on specialist investment funds in Africa. Mawuli Ababio will be based in Johannesburg.

Algeria to Increase Gas exports by 30% in 2010

Algeria plans to increase its annual gas exports by a third to 83 billion cubic metres of gas from 2010 according to its Energy Minister, Chakib Khelil. Half of the exports would comprise of liquefied natural gas and two liquefied natural gas projects, each with a capacity of 4.5 million tonnes, will be up and running between 2011 and 2012. Algeria’s national oil company Sonatrac that cut its debt by 500 million in 2006 and notched up annual revenues of 54 billion is bankrolling both projects.

China plans $100 billion in trade with Africa by 2010

The Chinese government has pledged to continue working with African governments in order to grow and sustain trade between individual African countries and itself. China hopes to increase trade with Africa to over $100 billion (approx R702 billion) by the year 2010. According to its officials, China is working on increasing imports from Africa in order to achieve sustainable balance of trade with the African continent and is set to zero-rate tariffs on 442 goods from Africa in order to increase trade potential and set up bilateral preferential trade arrangements and free trade areas in order to increase imports from the continent. China plans to establish a China-Africa development fund that will cater for Chinese companies wishing to invest in the continent and is exploring the possibility of venturing into banking, tourism, culture, science and technology as new areas of investment. China also committed itself to help train African professionals, build rural schools in Africa; and deploy agricultural experts and build special agricultural technology centres.

China and Angolan Trade Reached US$11 Million in 2006

Trade between Angola and the People’s Republic of China reached US$11 million in the 2006 economic year. In this period, Angola imported from China primarily industrial goods, electric appliance sets, construction equipment and materials, and exported oil. Due to the rise in business volume, Angola is currently China’s biggest trade partner in the Sub-Saharan Africa, a position that encourages authorities to maintain the privileged business relation with Chinese businesses, based on the principle of mutual advantages. Trade, financial, and business cooperation between both nations has been exemplar, and included exchange of business delegations and the holding of joint business exchanges. In 2006, BFA opened a US$100 million credit line to finance trade between Angolan importers and Chinese exporters.

Algeria Ranked as Italy’s Major Gas Supplier

Algeria has been ranked as the top supplier of gas to Italy in 2006, according to official figures, providing 33% of the European country’s gas needs. This shows an increase of 3.5% over the 2005 figures. As a major market for Algerian natural gas export, Italy imports 27 billion cubic meters per year from the country. Italy imports 30 percent of its natural gas from Russia. Algeria and Italy signed five agreements on the marketing of the North African country’s natural gas with Italian companies in November last year during a visit by the Italian Prime Minister, Romano Prodi, to Algeria. The agreements involved the building of a gas pipeline that links Algeria and Italy through Marseille. Algeria is also obliged to increase the exportation of gas to Italy by 8 billion cubic meters per year. Consequently, Italy raised its importation of hydrocarbon from Algeria by 30% in 2006. This amounted to over US $10 billion. The trade between the two countries has increased by 28% in 2006.

South Africa is Africa’s Most Important Source of FDI

South Africa has become in just a short period a most important - if not the most important - source of foreign direct investment for the rest of the continent, according to De Beer's chairman Nicky Oppenheimer. South African annual trade with Africa had increased fivefold to over seven billion dollars. The investment stake of South African firms in Africa had increased by an estimated one billion dollars per year since 1994. Despite unfulfilled promises of development assistance from the West, many African economies are growing, he said, because of what Africa was doing for itself and the emergence of China, India, Russia and Brazil.

Angola’s Hotel Occupation Rate Reaches 97%

The occupation rate of hotels in Angola has reached 97%, creating a need to build more hotels. The number of tourists in 2005 was 209,900 people, an increase of 132%, with revenues of approximately US$ 1.3 million. The country is preparing to host the African Nations Cup in 2010, which will open up the country for all game participants. This tournament is expected to boost the tourism in the country. Source: ANIP

African Development Bank to Boost Clean Water Fund

The African Development Bank has agreed to increase by 50% the amount of money it spends on improving access to clean water and sanitation in the continent. According to the Bank, its contribution in the water sector in 2007 will be about $490mn, an increase of 50% compared to 2006. The Bank has spent an average of $330mn each year over the last five years to help provide drinking water and proper sanitation in Africa, compared to an average of $70mn annually in the previous 30 years. The Bank manages the African Water Facility, which was created in 2006 and now finances 19 operations in the sector.

Divine Chocolate Announces First Dividend for Kuapa Kokoo Farmers

Divine Chocolate, the first farmer owned, Fair Trade chocolate company, has celebrated the announcement of its sister company’s first dividend distribution. This milestone achievement by Divine Chocolate in the UK advances the company's promise to the cocoa farmers of Kuapa Kokoo in Ghana and comes on the heels of the successful launch of Divine Chocolate in the U.S. Divine Chocolate Ltd's largest shareholder is Kuapa Kokoo, the Ghanaian farmers' cooperative from which it buys all its cocoa. Kuapa Kokoo owns 45% of the ordinary shares in Divine Chocolate Ltd and holds a further 283,605 preference shares earning interest at 7%. All of the cocoa in Divine Chocolate comes from the farmers of Kuapa Kokoo and is purchased on Fair Trade terms. Kuapa Kokoo invests a Fair Trade premium into schools, clean drinking water, mobile medical clinics, and women’s entrepreneurship projects for the significant percentage of women cocoa farmers that are Kuapa Kokoo members (60% of the national executive board of Kuapa Kokoo are women). As owners of Divine, the farmers have two seats on the Divine corporate board, a share in the profits, and a seat at the table of global trade.

South Africa and Slovakia Sign Ministerial Co-operation Pact

South Africa and Slovakia have signed a co-operation agreement to boost interaction between the countries at ministerial level. Foreign Minister Nkosazana Dlamini Zuma signed the agreement with her Slovak counterpart Foreign Minister Jan Kubis in Bratislava. The Memorandum of Co-operation Agreement is intended to lay the basis for regulating Ministerial co-operation between Slovakia and South Africa and to create a mechanism for regular interaction and consultation between the two countries. Both countries also agreed on the need to increase co-operation between the two in various fields such as human resources development and encourage the private sectors to explore areas of co-operation in fields such as automotive sector, textiles and services.

Banco Fomento de Angola Finances Imports and Exports with Support of World Bank

Banco Fomento de Angola (BFA) became the first Angolan bank to be part of the International Financial Corporation’s (IFC) program to finance import/export operations. The IFC is a World Bank institution helping the private sector and helps banks finance transactions by risk sharing in emerging markets. The IFC’s Global Trade Finance Program totals US$ 1 billion; US$ 50 million will be made available to the BFA. The program fosters import/export operations in emerging markets around the world.

Russo-African Debt Write-Off Boosts Closer Trade Ties

In a bid to kick-start better trade relations with Africa, Russia has written off the majority of the continent's debt. Russia has written off African debt totaling 11.3 billion dollars with a further half billion dollars planned, of which 2.2 billion dollars is in the framework of the initiative to reduce the indebtedness of the poorest nations, according to the country’s Foreign Minister Sergey Lavrov. The move signaled Russia's intention to fulfill its commitments made at recent Group of Eight (G8) meetings as well as paving the way to increased trade with the African continent. Russia decided to write off about 750 million dollars in additional debt from Heavily Indebted Poor Countries (HIPC) owed by some 16 of the world's poorest countries, of which the majority are in Africa. Benin, Tanzania and Zambia were included in the 16, and this year Russia is continuing discussions on a full debt write-off to HPIC countries in Africa on a bilateral level. African countries owed nearly 20 billion dollars.

South Africa Outlines Successes

According to South Africa’s Deputy President, Phumzile Mlambo-Ngcuka, South Africa's economy had grown at around 5% since 2004 and that over the past five years the country's gross national income per capita had risen from under US$3 000 (approx R21 000) to over US$5 000 (approx R35 000). Speaking at the 60th World Association of Newspapers Congress, the Deputy Premier described the country's first decade of democracy as having been focused on reconstruction and development and on bringing large numbers of historically excluded people into a net of the serviced population. Following the 1994 elections, the government has focused on providing access to basic services such as water, sanitation, energy, housing, healthcare, education and improving rural infrastructure. During this period, the Government has cut taxes, reduced the budget deficit to virtually zero, reduced government debt to one of the lowest levels in the world; reduced inflation to 3-6 percent; and reduced poverty through a system of social grants that now reaches 11-million beneficiaries. For three years in succession, over 500,000 additional jobs have been created in the economy.

Unitel and Ericsson Sign US$45 Million Agreement

Unitel and Ericsson have signed an agreement to install a third generation modern network, estimated at US$ 45 million. Ericsson has also agreed to help Unitel with the supply, equipping and assistance of the network. Unitel is a mobile telephone company with the largest number of clients in the Angolan market, estimated at two million. Ericsson is a multinational company that focuses on fabrication, distribution and installation of telecommunication equipment. Source: ANIP

Databank Wins Best Africa Research Award

Databank Group was awarded the prestigious prize of Best Africa Research Team by Africa Investor Magazine for the 2007 Ai Index Series Awards. The awards ceremony which was held at a cocktail reception at the London Stock Exchange on Friday 8th June 2007 was graced by representatives from the international investment community. Databank was nominated for this award alongside international investment banks including, Citigroup, UBS, Deutsche Bank, African Alliance and EFG-Hermes. Databank was recognised for its wide quality coverage of all the capital markets on the continent. The firm’s research products include daily, weekly, fortnightly and annual reports on African financial markets in addition to research notes and recommendations on African companies. Databank, which is the leading investment bank in Ghana, has over the years transformed itself into a pan-African focused investment bank offering a wide range of services including pan-African fund management, pan-African stock brokerage services, pan-African corporate finance advisory services and a fledging Africa private equity fund management business.

Angolan Tourism Earns over US$ Six Billion in Three Years

The revenue for national tourism reached approximately US$ 6.7 billion between 2004 and 2006. The figures show the development of national tourism over the last three years, and are expected to represent an even greater contribution to the Angolan economy in the coming years. According to the Angolan Hotels and Tourism Ministry, revenue came from areas such as hotels, restaurants, and travel agents.

Africa Growth Forecast at 6.2%

Africa's continent-wide economy will grow faster this year, but structural changes are still needed if it is to catch up with the rest of the world. The continent is expected to achieve economic growth of 6.2% in 2007, an expansion on last year's 5.5%, said a report from the World Economic Forum. Despite this growth, the study said Africa was still being held back by factors such as poor infrastructure. It added that corruption and poor access to finance were other concerns. The Africa Competitiveness Report further said that much of the continent's current growth was being fuelled by external factors such as high commodity prices, debt relief and a upbeat international economic environment.

Africa Can Compete Globally

African businesses can become far more competitive, but African governments and their international partners will need to improve access to finance, rebuild infrastructure and strengthen institutions, according to the Africa Competitiveness Report 2007. The report, jointly compiled by the WEF, the African Development Bank and the World Bank, analyses many aspects of Africa's business environment and highlights the key issues that hinder improvements in Africa's competitiveness and job growth. The report includes the rankings of 29 African countries in the Global Competitiveness Index, detailed competitiveness and investment climate profiles, the effect of gender disparities on employment and competitiveness and the role of new technologies in fostering a more dynamic business environment. The study finds that a number of governments have significantly improved the business climate in their countries and that these changes in the business climate, together with greater access to finance and new investment in infrastructure, should come together to advance Africa’s drive to develop, create jobs and reduce poverty. The report points to the growing number of success stories in the region that show the steps countries can take to improve business conditions.

BDA Bank Grants over USD 50 Million for Pilot Operations

The Development Bank of Angola (BDA), founded in November 2006, has granted over US$ 50 million to finance pilot operations in the productive sector. The pilot operations aim at contributing to the restoration of productive chains, selected by the Angolan Government. The chains include all aspects of the productive complex, institutions of research, upgrading, financing of suppliers of equipment, technical assistance, transforming, transport, and trade. In the first year of activity, BDA will finance the production of maize, beans, cotton, textile sector, and of civil engineering materials. The provinces of Bengo, Benguela, Cabinda and Luanda were selected for the first phase of producing civil engineering materials. In the second phase, the financing of this chain will spread to all provinces of the country.

South African Government Launches 2010 Website

The South African government has launched a new website to provide information on the country's preparations for the 2010 Fifa World Cup. The website - www.sa2010.gov.za - provides information about the country and the continent in the context of the first African World Cup. The site focuses in particular on providing comprehensive information on government 2010-related programmes, including those related to economic opportunities. It also acts as an entry point to other sources of information on the country - such as the South African Tourism and International Marketing Council portals, and provincial and host city websites. The site is complementary to the website of FIFA and the Local Organising Committee, and was designed in consultation with the game's governing body.

Record Participation at 2nd eLearning Africa Conference

The second eLearning Africa conference on ICT for Development, Education and Training saw a total number of 1403 participants, an increase of over 80% compared to the inaugural event in 2006. eLearning users, newcomers, providers, and experts from 88 countries spanning all continents gathered during the three-day conference at the Safari Park Hotel in Nairobi, Kenya. The conference was attended by eLearning experts from universities, schools, companies, the health sector, non-governmental organisations (NGOs) engaged in capacity development and education, government representatives, as well as from major development bodies. The programme featured the input of 308 speakers from 55 countries, including presentations from major development organisations such as UNESCO, UNEVOC, the Global Development Learning Network (GDLN), and the World Bank, as well as national and governmental institutions, mainly from Africa but also from Europe, Asia, and North America. eLearning Africa 2008 will take place in Accra, Ghana from May 28 - 30, 2008.

Ghana Finds Oil

Tulow Oil, which has been exploring for oil in Ghana has announced that it has found large commercial quantities of oil in the Mahogany well at Cape Three Points in the western region of the country. The company estimated the find at 600 million barrels, which is worth about $42bn at current prices and $24bn at historical average prices. It has also been suggested that further exploration of the area may enrich the find. The Ghana government has stated that it will put in place institutional structures to ensure that oil does not become a ‘curse’ to the country, as is the case in other oil rich countries. Empirical research indicates that countries tend to experience lower long-term growth after the discovery of oil because it tends to breed corruption, political instability, structural imbalance and overheats economies.

Government Invests USD 75 Million on Namibe Fishing Academy

The Angolan government will invest US$ 75 million in building a Fishing Academy, a higher education institution, in the province of Namibe. It will be located in a 30-hectare area and will be built in two stages by the Polish company, Navimor. The Academy will offer courses in fishing, fish processing and exploration of water resources. It will have the capacity to teach 1,000 students attending four-year courses.

16th Angolan Bank Opens in Luanda

A new bank, Banco Angolan de Negócios e Comércio (BANC), with a capital of US$ 5 million, has recently opened in Angola. The Bank aims to be a new strategic partner in countries such as Portugal, Brazil and Spain. The Bank plans to sell about 35 to 40 percent of its capital to an international partner. By 2008, BANC expects to open 10 more branches throughout Angola, covering the main urban areas, with particular focus on the Center, South and Luanda. BANC is headquartered in Luanda, where it plans to open three branches.

Libya to Supply Kenya with Cheaper Oil

Kenya is set to receive oil from Libya at preferential rates according to a bilateral agreement signed between the two countries. According to a memorandum of understanding between the two countries, Libya may supply up to 60 percent of the 1,6 million tons of crude oil that Kenya needs to make its refinery commercially viable. In total the country needs 2,8 million tons of both crude and refined oil. About 25 % of Kenya’s import bill and 11% of its gross domestic product goes towards the buying of oil. Libya is not only investing in the oil sector in Kenya, but will also invest in the construction of a luxury hotel in Nairobi and an exhibition centre in the coastal city of Mombassa. Kenya, on the other hand, is looking at Libya as a new market for its coffee and tea products. Source: IPS News

China launches $1b fund for African trade

As part of her efforts at nurturing commercial ties with Africa, China has launched a $1b fund to finance trade and investment by companies owned by her nationals in Africa. The fund, according to agency reports, is part of the country's aid and loans to Africa promised by President Hut Jintao at a meeting with some African leaders meeting in Beijing last November. China has been promoting itself as a partner for Africa's development as it tries to secure oil and other resources for its booming economy and new markets for its exports. The new fund is to be financed by the government's China Development Bank, which said the fund eventually would expand to $5 billion. It will "support Chinese enterprises in developing cooperation with Africa and in investing in Africa," the bank said in a statement. The fund will target projects in infrastructure, farming, basic industries and manufacturing.

Nokia Siemens Networks and Nokia Strengthen Commitment to the African Region

At the EU-Africa Business Forum held in Accra, Ghana Nokia Siemens Networks and Nokia reiterated the companies' commitment and strategic direction in the African region. With a vision to increase communications access to urban and rural areas, the two companies are set to connect the people of Africa. In the Forum, Nokia displayed a mobile health data survey tool that has been developed with the University of Nairobi and other partners. This type of application can have huge potential in addressing, for example, outbreaks of diseases, offering benefits to governments and aid agencies. Nokia and Nokia Siemens Networks also present the Village Connection solution at the event. Village Connection offers an easy concept to build rural connectivity village by village, enabling an innovative franchise-based business model between an operator and local village entrepreneurs. The solution helps provide affordable telecommunications services in rural communities, thus boosting economic development.

Starbucks and Ethiopian Intellectual Property Office (EIPO) Partner to Promote Ethiopia’s Coffee

Representatives of the Government of the Federal Democratic Republic of Ethiopia and senior leaders from Starbucks Coffee Company have announced an agreement regarding distribution, marketing and licensing that recognizes the importance and integrity of Ethiopia’s specialty coffee designations. The agreement is an important step in the ongoing collaboration between the Government of Ethiopia and Starbucks to promote Ethiopia's specialty coffees. It provides a framework for cooperation to promote the recognition of the Harrar, Sidamo and Yirgacheffe designations and to strengthen the Ethiopian coffee sector, and includes the license of certain trademarks. The agreement allows Starbucks to use and promote these designations in markets both where trademarks exist for the coffee designations as well as where they may not, in accordance with agreed terms and conditions.

South Africa's Population Increases to 47.9 Million

According to a report by StatsSA, South Africa’s population has increased to 47.9 million. Africans are in the majority (approx 38.1 million) and constitute about 80 percent of the total South African population. The white population is estimated at 4.4 million, the coloured population at 4.2 million and the Indian/Asian population at 1.2 million. The report also stated that 51 percent (approx 24.3 million) of the population was female. According to StatsSA, one third of the population is aged 0-14 years and approximately 8 percent of the population is 60 years and older. KwaZulu-Natal emerged as the province holding the largest portion of the population at 20.9 percent, followed by Gauteng at 20.2 percent and Eastern Cape came in at 14.4 percent. The population growth however, has slowed to 6.4 percent in the last five years since 2001 compared with 10.4 percent in the five years between 1996 and 2001.

South Africa to Spend R22bn on Gauteng Freeways

South Africa is to spend R22-billion over the next seven years on upgrading and expanding the freeways in its busiest province, Gauteng. Construction is expected to begin in the first half of 2008, following an environmental impact assessment. According to the South African National Roads Agency (Sanral), growth in vehicle ownership in Gauteng has led to heavy congestion and new technology such as electronic toll collection systems will be used to allow for a smoother flow of traffic. The project also entails the construction of an interconnected network of inner and outer ring roads around the three metros, extending over 500 kilometres, which are to be completed in time for the 2010 Fifa World Cup.

China to search for oil in Sudan

China's biggest oil company CNPC has reached a deal with Sudan to search for oil and gas in the north of the country on the coast of the Red Sea. The exploration will be carried out jointly with the Indonesian state oil and gas company PT Pertamina. China is Sudan's top foreign investor and supplies it with weapons. The agreement calls for six years of exploration and 20 years of shared production. The exploration rights cover about 3.8 square kilometres of shallow water on the Red Sea. The financial details of the deal have yet to be finalised, according to officials at the Chinese embassy in Sudan. Source: BBC

Uganda Telecom Sets up Regional Roaming Network

Uganda telecom will become the third local telecom company operator to go regional when it launches its regional roaming scheme next week. According to the company, the seamless network will initially be launched with Safaricom, Kenya and then with Vodacom, Tanzania before the end of the month. The collaboration will also be extended to Burundi, a frequent destination for Ugandans. Customers will be able to take their rates as they are to those countries, will receive phone calls free of charge and will be able to load airtime from those countries. The company has signed a $50m contract with Huawei Technology of China to ensure availability of the service and plans to take the network to 70% of the country, with plans to spend about US$90m this year to bring new coverage and improve existing coverage. Source: New Vision

Angola’s Unitel Invests US$150 Million in Equipment

Angolan mobile telecommunications operator, Unitel, has installed equipment and technical facilities, including buildings and alternative power supply systems, valued at US$ 150 million, in 18 of the country’s provinces. By setting up exchanges in the provincial capitals, Unitel will be able to direct calls being made within the same provincial capital instantly instead of routing calls through Luanda first. This process began in January 2006, with the acquisition of the equipment and installation beginning in June of 2006. It will contribute to the improvement in voice quality of calls, due to not having to use a satellite connection. Unitel expects to reach 90 municipal areas by the end of the year. Unitel is a mobile telecommunications company with the largest number of customers in the Angolan market, estimated at over 2 million.

Pan African Infrastructural Development Fund Launched

The Pan-African Infrastructure Development Fund (PAIDF) has been launched with initial seed money of US$625 million raised from eight investors within the continent. The initial investors included Ghana's Social Security and National Insurance Trust (SSNIT) with seed money of US$10 million, South Africa's Public Investment Corporation, The African Development Bank (AfDB), The Development Bank of South Africa and the Barclays Bank/ABSA Group. The rest were Metropolitan, Old Mutual Group and Standard Bank Group all from the southern part of Africa, all of which were either from South Africa or based in the southern Africa region, for which reason the fund was largely managed by personnel from South Africa. The fund, the first of its kind, was a public/private sector initiative, conceived, put together and completely managed by Africans. It sets out to raise at least US$1.2 billion to serve as a financing platform for infrastructure development on the continent.

Ghana Introduces New Currency

New Ghana cedis and pesewas were put into circulation this week. The redenomination of the currency was inspired by the need to reduce transactions costs on the old ‘bulky’ notes, raise security and improve the payment system especially by reducing the burden on ATMs which have been experiencing frequent breakdowns because of the bulkiness of the old currency notes. One US Dollar is now worth about GH¢0.92, UK£1 =GH¢1.80 and €1 is equivalent to GH¢1.24. The ISO Code of the re-denominated Ghana cedi has changed to GHS, from GHC. The old currency will be in circulation alongside the new, until December, when it will only be exchanged in the banks and other financial institutions.