South Africa Largest Recipient of FDI in Africa

South Africa was the largest recipient of foreign direct investment (FDI) in Africa in 2005, with a sharp increase in inflows to $6.4bn from $0.8bn in 2004, according to a report by UN agency UNCTAD.  The agency highlighted in its World Investment Report 2006, FDI from Developing and Transition Economies: Implications for Development, that Africa received record high FDI inflows in 2005 of $31bn, although this was mostly concentrated in a few countries and industries. UNCTAD said in that a sharp rise in corporate profitability and high commodity prices over the past two years helped produce a growth rate of 78 percent in FDI inflows to the region. The report noted that Africa's share of global FDI remained low at about 3 percent in 2005.

Increases Investment in Angola’s Oil Sector

Two US companies linked to the oil sector and services, ENS Pump (oil services provider) and Pegasus (linked to the fuel sector), are to invest in the Angolan oil sector in 2007, according to the executive director of the USA-Angola Chamber of Commerce, Paul Hare.  Hare noted that the two companies’ focus on the Angolan oil sector is a follow up to contacts made with Angolan during 2005 between the chambers of commerce and industry of both countries. Source: ANIP

Kenya launches Vision 2030

Kenyan President Mwai Kibaki has launched Vision 2030 as a call to all Kenyans to assist in eradicating poverty, famine, mass unemployment and preventable deaths from malaria and water borne diseases.  Noting that Kenya was still a long way to go before being transformed into a fast growing and diversified economy, President Kibaki called on citizens to build on the comparative advantages in the key sectors of the economy to substantially expand the country's share of the global market.

China Courts Africa

Political leaders of 48 of the 53 African countries, including 40 heads of state attended the China-Africa forum in Beijing in November.  The three-day event was set up to expand trade between China and the African region, allowing China to secure the oil and ore it needs for its booming economy and to offer aid to help African nations improve roads, railways and schools. China has the world’s fastest-growing major economy and has nearly $1 trillion in foreign currency reserves. The forum’s slogan — “Peace, Friendship, Cooperation, Development” — underscored China’s pledge not to discriminate or intervene. China’s trade with Africa is growing faster than with any other region except the Middle East, increasing tenfold in the past decade, to just shy of $40 billion last year. China buys timber from the Congo Republic, iron ore from South Africa and cobalt and copper from Zambia. An estimated 80,000 Chinese expatriates live in Africa, selling shoes, televisions and everything else the world’s factory produces.  Source: The New York Times  

Angola Sonangol Invests US$700,000 in Pre-University Center

Over US$ 700,000 will be spent this month by the National Fuel Society (Sonangol) for the construction of a Catholic Pre-University Center in the central Huambo Province.  The Catholic Pre-University Center (CPUC), to be built in 10 months by the civil construction company Organizações Mouceli Lda, will 560 students in two shifts. Source: ANIP

South Africa joins the UN Security Council

South Africa has been elected to serve on the United Nations (UN) Security Council in a non-permanent capacity. South Africa was elected unopposed to the UN General Assembly to occupy one of the Security Council's 10 temporary seats for two years starting in January 2007. Besides its five permanent members - China, France, Russia, the UK and the US - the council has 10 non-permanent members drawn from around the world for rotating two-year terms.

Vietnamese Business to Build Bicycle Factory in Luanda

Vietnamese and Angolan investors are planning to build a bicycle factory on the outskirts of Luanda, at a total investment of US$3.5 million, which will create over 100 jobs. The project will soon be presented to the Angolan government, who will be responsible for its final approval.  Trade between Vietnam and Angola currently totals around US$50 million per year, with rice as the main Vietnamese product imported by Angola. Imports of Vietnamese rice are of over 40,000 tons per year, but the country also sells computer equipment, wooden products, clothing and health items to Angola, amongst other goods. Source: ANIP

Africa investment hits record high

Africa received record high foreign direct investment (FDI) inflows of US$31-billion in 2005, with good prospects for another increase in 2006, the United Nations' trade and development body said on releasing its World Investment Report 2006. UNCTAD said that FDI inflows into Africa grew by 78% in 2005 compared to 2004, driven by a sharp rise in corporate profitability and high commodity prices over the past two years. The share of foreign direct investment in fixed capital formation projects in Africa also increased. In relation to average earnings, sub-Saharan Africa had a promising year. Africa's top 10 recipient countries - South Africa, Egypt, Nigeria, Morocco, Sudan, Equatorial Guinea, the Democratic Republic of Congo, Algeria, Tunisia and Chad - accounted for close to 86% of the continent's total FDI.  The report also found that FDI inflows to Africa were concentrated in a few industries, notably oil, gas and mining. Six oil-producing countries - Algeria, Chad, Egypt, Equatorial Guinea, Nigeria and Sudan - accounted for about 48% of the continent's investment inflows.

South Africa’s Transnet Chief is 16th Most Powerful Woman in Business

Transnet’s Maria Ramos was placed as the 16th most powerful woman in business in the world by Fortune Magazine in its annual ranking of leading businesswomen. According to Fortune, Ramos is "overhauling South Africa's largest transport company", Transnet, while she has increased profits at the company by 57% in the last financial year.

Angola’s Commercial Balance to Record Second Surplus

Angola’s commercial balance might record its second consecutive surplus, based on oil exports that, in 2005, grew from USD 4.6 billion to 19.8, with the reserves reaching USD 3.2 billion, equivalent to 4.3 months of imports. According to data produced by a study called "Bank under analysis-Angola/2006", jointly conducted by "Deloitte Angola" and the Angolan Banks Associations (ABANC), in the period mentioned, there was a rise in tributary revenues of about USD 3.9 billion, thus elevating the budgetary balance to about USD 1 billion. The increment in the fiscal revenues has been financing the public investment program for the 2005/2006 biennium. The fiscal performance of investments was of about USD 810 million, against a budget of 1.5 billion. The expected rate of growth of the non-oil sector was about 10.4 percent, with stress to the sectors of construction (16 percent) and agriculture and fisheries (15.6 percent). Source: ANIP

Two more countries sign for NEPAD ICT Broadband

Two more countries – Botswana and Zimbabwe – have signed the protocol to roll-out the NEPAD ICT Broadband Infrastructure Network, bringing the number of countries committed to the protocol to nine. The occasion was attended by ICT Ministers of South Africa, Rwanda and Zambia as well as the AU Commissioner for Infrastructure and Energy, Dr Benard Zoba.The signing of the protocol in South Africa follows an earlier ceremony held in Kigali, Rwanda on 29 August 2006, during which seven countries signed the protocol at a ceremony presided over by the Rwandan President Paul Kagame. Source: NEPAD

South Africa’s Economy is Creating Jobs

South Africa’s Finance Minister, Trevor Manuel, has presented his medium term budget policy statement and announced that for the first time in a generation, South Africa's economy is creating jobs faster than new entrants are joining the labour force. According to Manuel, up to 540 000 new jobs have been created in the past year and over the past three years, over one million jobs have been created.  New employment is boosting household spending, along with a massive infrastructure spending programme by government and public enterprises The South African government expects spending on public infrastructure to grow by 15% a year and to reach about R150-billion a year by 2010.  While R15-billion has been set aside for South Africa's hosting of the Soccer World Cup in 2010 - with R8.4-billion going to stadiums and R6.7-billion to public transport and surrounding infrastructure - there is also a strong focus on other service delivery requirements.

Total merges its Operations in Ghana

Total Petroleum Ghana Limited (formerly Mobil Oil Ghana Ltd) and Total Ghana Limited are to merge.  As part of the merger agreement, Total Ghana Limited will be put into voluntary liquidation with its assets transferred to Total Petroleum Ghana Limited. The merged company will be known as Total Petroleum Ghana Limited and will remain quoted on the Ghana Stock Exchange. The merged company will have an estimated 28% share of the Ghanaian market and a network of 225 service stations across the country. 

China-Angola Trade to Hit USD 10 Billion in 2006

The China-Angola trade volume will top US$10 billion this year, according to the Angolan government and Chinese-Angolan bilateral trade is expected to hit $10 billion dollars this year. Angola is now China's biggest trade partner in Africa and the two countries have signed a series of cooperation agreements. According to the agreements, China provides Angola with funds, technology, materials and equipment. China has also built infrastructure for Angolan agriculture, health, education, transportation, media, power and civic projects. Angola is a major supplier of oil to China. Source: ANIP

African governments urged to integrate NEPAD Principles

African governments have been urged to integrate the principles, values and philosophy of NEPAD into their institutions of governance. NEPAD Chief Executive Officer, Professor Firmino Mucavele, speaking at the NEPAD multi-stakeholders meeting in Nigeria in November said such a move is vital for the programme to benefit all Africans. Citing the NEPAD principles as ownership, self-reliance, partnership and self-confidence, which he said are crucial for any development project to be sustainable and beneficial to the implementing nation, he said that through NEPAD principles Senegal had managed to acquire cassava production and processing technology from Nigeria, a country where the production process is very advanced. Professor Mucavele said there is a need for African countries to understand the philosophy of self-reliance, which means that a country counts on its own resources in a partnership. Source: Nepad Dialogue  

Angola Opts for Submarine Cable to Boost Communications

Angola’s Savings and Credits Bank (BPC) is set to provide US$70 million for a new fibre-optic cable network which will connect Angola’s coastal provinces. The provinces are Cabinda, Zaire, Luanda, Kuanza Sul, Benguela and Namibe. Angola’s Council of Ministers has approved the project to improve TV and telephone services in the six provinces, choosing submarine cable as their means of delivery. Angola Telecom will operate the new system, while Ericsson South Africa will construct the network, which is to be known as Adonis.  Source: ANIP

Africa will be a priority in German presidency of G8

Germany will give priority attention to Africa when it takes over the presidency of the Group of Eight (G8) nations from Russia in January 2007. Attending a meeting in Nigeria, the German Technical Co-operation (GTZ) programme manager, Klaus Bruckner, was quoted as saying that the German government has decided to put Africa high on its agenda, helping the continent attain economic development. Germany has been a committed partner of NEPAD since it was established in 2001 and has provided technical support and helped design institutional structures.  GTZ has earmarked about 12 million euros for institution building in Africa between 2002-2008, to support NEPAD, the African Peer Review Mechanism and the Pan-African Parliament. Source: Nepad Dialogue