African Business Round-up

Chad signs $80 million deal with China

China has signed a series of loan, debt relief and economic cooperation agreements worth $80 million with Chad, less than six months after the oil-producing central African country restored diplomatic ties with Beijing, according to Reuters. The agreements follow a visit to Chad by China’s Foreign Minister Li Zhaoxing.  Chad cut its ties with Taiwan in August 2006, switching its allegiance to China, which has made a major push to secure access to Africa’s vast reserves of minerals, and oil as it seeks to supply its own booming economy.   Source: Reuters

Microsoft and Nigeria Sign 3 Year Agreement

The Federal Government of Nigeria has signed a three-year agreement with Microsoft for information and communications technology to accelerate the country’s economic growth. The partnership agreement signed in Abuja will help in building the skills of the nation’s software industry to streamline the Federal Government's use of Microsoft's software tools. The new agreement builds on one implemented in 2003. According to the Nigerian Minister of Science and Technology, the agreement will streamline internal communications, improve transparency, reduce costs and help to provide efficient service to Nigeria’s citizens. Under the new agreement, Microsoft will continue to support programmes such as the Computers for All Nigerians Initiative (CANi); to translating software into local languages such as Igbo, Hausa and Yoruba; and to protecting citizens from the threats of cybercrime. Microsoft will also be driving programmes that enable a broad spectrum of Nigerians to gain experience and expertise in ICT. This includes continued investment in the Partners in Learning technology-in-education investments, as well as the sustainability of digital villages already established across nine Nigerian states.   Source: This Day.

Angola to increase its Hotel Network in 2007

The quantity of hotels in Angola’s network is to be increased in 2007, with the construction of an additional six hotels in several of the country’s provinces, creating over 2,000 jobs. Among the developments to be built is the San-Sivol hotel, with 238 rooms and the Horizonte hotel, with 154 rooms. A chain of hotels, Godwana, will also be built while rehabilitation is planned for the Meridien Panorama and Grande Hotel in Huila Province. The Ministry of Hotels and Tourism plans to establish tourist areas in Angola in 2007, increase tourism promotion and adapt the sector’s legal and regulation framework, as well as defining strategy and the tourism training system.  Source: ANIP

New UN Chief Appoints Tanzanian Deputy

The new Secretary-General of the United Nations, Mr. Ban Ki Moon, has selected Tanzania's Foreign Minister as the first woman UN Deputy Secretary General. Asha-Rose Migiro takes over the post previously occupied by Britain's Sir Mark Malloch Brown. Appointed Tanzania's Foreign minister a year ago, Ms. Migiro had served six years as the minister for Community Development and Children's Affairs.  The new Deputy Secretary General is a lawyer with a PhD from the University of Konstanz in Germany. Source: The Nation

World Bank Study Highlights Business Practices in Africa

A recent study, Doing Business 2007 by the World Bank and International Finance Corporation has compared 175 economies including 45 from Sub-Saharan Africa has ranked South Africa in 29th place. The study also takes stock of economies that are reforming to bring about a positive business environment and is based on research of laws and regulations that favour setting up business. The study uses several indicators including entry regulations that look at the procedures needed and the time it takes to start a business. Uganda ranks among the countries with the fewest procedures and ranks alongside Denmark in terms of the cost and capital needed to start a business.

Angola institutes New Customs Code

A new Customs Code came into force in Angola in the New Year which aims to revise the fundamental legal principles and standards for import and export activities. The profound changes that the country has undergone and its membership of the World Trade organization (WTO), the World Customs Organization (WCO) and the Southern African Development Community (SADC) had led to the need for a complete revision of its customs system. With the new Customs Code, the Angolan government plans to ensure total compliance with legal customs standards and to combat customs tax evasion, by applying sanctions, including fines and imprisonment, and efficiently deal with less serious cases of tax evasion, administrative errors and negligence.

Angolan Local Private Sector Invests US$1 Million in New University

The local private sector has invested over US$1 million to build Benguela University.  The University will have the capacity to host 400 students, as part of the Angola Educational Projects, underway in the province since 2004. The construction work of the new university, financed by Banco Internacional de Crédito (BIC) and which the national firm, Consco, is carrying out will be completed in early 2007. Once Benguela University opens, Benguela Province will have three private universities.

CDC joins Citigroup in $200 million Africa Venture

CDC Group, a private equity investor owned by the British government, has teamed up with U.S. banking giant Citigroup to invest at least $200 million in Africa.  CDC will invest $100 million in Citigroup's first dedicated African private equity fund, CVCI Africa Fund, with the U.S. bank matching that amount.  Citigroup Venture Capital International (CVCI), a unit of Citigroup Alternative Investments, will manage the fund.  CDC, whose latest investment brings its total commitments to Africa to over $830 million, said there were investment opportunities for the fund in infrastructure, natural resources, energy, telecoms and general manufacturing.  According to CVCI, Africa has rising GDP growth rates and large markets in nine major countries with a combined GDP of $600 billion and a population of 400 million.  The amounts invested by the Fund and other CVCI managed funds in individual deals are expected to range between $20 million to $60 million and will be invested in firms in Sub-Saharan Africa and North Africa.  CDC said its backing of the Citigroup fund would benefit the private equity industry in Africa.

2006 Record High for South Africa's Stock Exchange

According to Bloomberg, 2006 was a record-beating year for South Africa's Stock Exchange.  Foreign investors bought a record net R. 73.7 billion worth of local shares while the All Share index reached 38%, topping the average 29% increase in 25 developing country exchanges tracked by the Morgan Stanley Capital International Emerging Markets Index.  Overseas investment in South African stocks were also at a record high in 2006 with investors in rewarded with an average 30% return on their investments during the year.  At the same time, AltX, the Johannesburg Stock Exchange’s alternative exchange for small to medium and growing companies, also gathered increased momentum.

Diamond Sector on the Rise in Angola

Angola is the fifth-largest producer of raw diamonds on the planet and owns the world’s fourth largest open-cut mine, Catoca, located in the province of Lunda Sul. Diamonds are the second-biggest source of revenue in the General State Budget. Angola’s diamond reserves are estimated at 50 million carats in kimberlitic deposits (the rocks from which diamonds are extracted) and 40 million carats in alluvial deposits. But studies suggest reserves may actually be much higher, and ENDIAMA foresees annual diamond output tallying 12 million carats by end 2006, with a possible jump to 29 million by 2009.  Diamond production is expected to keep on advancing in Angola, with steady growth in the numbers of licenses to prospect, research, and explore for precious stones.  The diamond-cutting industry appears to be expanding, enabling the country to capture the high profit margin that has been going to buyers of the raw gem. Controlled 99% by ENDIAMA, SODIAM is responsible for marketing all diamonds produced in Angola.

Angola’s Education Ministry to Admit 50,000 Teachers

Approximately 50,000 new teachers will be admitted in Angola’s education sector, over the next three years, aiming at contributing to the placement of more children and staff into the public education system.  The admission of new teachers will be one of the big challenges for the education sector in 2007/2009.

Property Consortium to Invest Further in South Africa

The British- and Dubai-led consortium that bought Cape Town's landmark Victoria & Alfred (V&A) Waterfront has indicated that it will invest US$1 billion on the development of "Africa's Riviera" ahead of the 2010 Fifa World Cup. Istithmar, the private equity arm of government-owned Dubai World, partnered with UK-based London and Regional Properties and a local black empowerment grouping in a successful bid to buy the Waterfront in 2006. The V&A Waterfront, a world-class mixed-use development near the heart of Cape Town's central business district, attracts up to 22-million visitors a year.  The company cited South Africa as having a sophisticated economy backed by a sound legal system and a banking system comparable to that of the US or UK and offering excellent returns on investment.

US-Irish Joint Venture for Affordable Housing in South Africa

International Housing Solutions, a joint venture between MuniMae of the US and Irish property group Howard Eurocape, has opened its head office for Africa in Johannesburg with plans to invest in affordable housing development across South Africa. With extensive experience in financing affordable housing around the world, International Housing Solutions (IHS) aims to bring foreign capital and expertise to South Africa to boost the supply of quality, yet affordable, housing for low- and moderate-income households.

Banco Fomento Angola Plans to Open 100th Branch

The Angolan bank, Banco Fomento de Angola (BFA), plans to have 100 branches by the end of 2007, or 24 more than its current 66 branches. In 2006 BFA increased the speed at which it was expanding its network of branches and opened 23 new branches and also opened seven Company Centers and Investment Centers to provide personal services to customers. The bank’s 2006 expansion plan represented an investment of over US$40 million. BFA, owned by Portuguese banking group BPI, has 1,200 workers and around 300,000 customers.

African Development Bank will mobilize $1.6bn for Transport and Energy

The African Development Bank (ADB) has mobilised $1.6bn to finance various infrastructure improvement projects across Africa, mainly concentrated in rail, road and energy sectors. According to the Bank, it has already financed 33 different projects across Africa, totaling $800mon under Nepad (the New Partnership for Africa's Development) initiatives. The Bank has completed plans for the launching of the construction phase of the Kenya-Ethiopia highway, extending nearly 1,600km from the port of Mombasa to Addis Ababa, as a way of enhancing transport and communication in the Eastern Africa region. The Bank is also ready to rollout the construction of the Kenya-Uganda oil pipeline later this year. The bank has mobilised additional finances to bolster Africa's push for better railways, electricity and is currently working on the launch of a major financing initiative to dispense more financial resources to African countries under a G8 initiative. ADB offers concessional loans to African countries seeking to expand the road infrastructure in their countries

High rating for Africa’s Economic Status

African economies are continuing to sustain their growth momentum, which has built up in recent years, a United Nations official has told the African Union’s Executive Council. The UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), said that the continent's overall Gross Domestic Product (GDP) for 2006 increased by 5.7 percent from 5.2 percent in 2005. The UN expert said despite this trend, evidence showed that the continent was unlikely to meet its Millennium Development Goals (MDG) by 2015 unless new approaches were adopted.

Construction of Afrobasket 2007 Pavilions Begins in Angola

Estimated at US$32 million, the construction works of four pavilions for the African Basketball Championship (Afrobasket 2007) will begin in March and end in August of 2007. The cities that will benefit from the new multi-use pavilions are Benguela, Cabinda, Huambo and Lubango. The provinces of Luanda, Benguela, Huila, Cabinda and Huambo will be the hosts of the continental competition