The World Bank has announced that it provided a record US$5.7 billion in credits and grants to Sub-Saharan Africa in the fiscal year ending 30 June 2007, up from US$4.7 billion in fiscal 2006. A statement from the bank in Accra said the development arm of the bank – International Development Association (IDA) - provided the funding. It said 50% of IDA’s total credits and grants of US$161 billion since its inception has gone to Africa. Meanwhile, the bank has reiterated its commitment to maintaining the continent as its top priority under the leadership of its new President, Robert B. Zoellick, who recently succeeded Paul Wolfowitz.

Business against Crime South Africa, backed by over 250 CEOs through its association with the Industry Alignment Forum, has intensified its partnership with the South African government to fight against crime in the country. The partnership is beginning to impact on violent organised crime, with the business coalition claiming successes in the priority areas of house robberies, vehicle hijacking and business robberies. Through its partnership with the government, South Africa's business sector has also completed and adopted minimum standards to regulate the cash-in-transit industry, while developing innovative crime prevention initiatives in the retail environment, particularly at shopping centres. Other support initiatives mooted by business include a more effective exchange of intelligence between business and the police, micro-dotting of business vehicles for easier identification, and more effective cooperation between the country's private security firms and police.

The Port of Luanda Management Company will invest US$105 million by 2010 to upgrade its infrastructures, including the acquisition of modern equipment. The money will be invested in 3 ways: US$19 million in a cargo terminal, US$ 55 million in a container terminal and US$31 million in a multi-use terminal.  The application of the modernization and development program is aimed at making the Port of Luanda one of the best in Africa. The port handles 85% of Angola’s imported and exported goods.

The population of African and Asian cities is set to double by 2030 according to a United Nations Population Fund (UNFPA) report.  The UNFPA has called for rising urbanisation to be addressed after the release of the “State of World Population 2007: Unleashing the Potential of Urban Growth” report revealed that by 2030, the urban population will rise to 5 billion, or 60 percent of world population.  As of 2008, more than half the world’s 6.7 billion people will live in cities, according to the report. The report further stated that humanity will have to undergo a “revolution in thinking” to deal with the rising urbanisation.  The report recommends city authorities and urban planners make it a priority to provide for the shelter needs of the urban poor by offering secure tenure on land that is outfitted with power, water and sanitation services.

Incentive programmes have been established by the South African Government to attract local and foreign investment in BPO. BPO involves relocating business processes that are usually performed in-house by a company, to a third party service provider, such as customer care or call centres, to carry out the services on behalf of the concerned company.  Incentives are offered to local and foreign investors establishing projects that aimed primarily to serve offshore clients, and comprises a grant towards approved qualifying expenditure for start-ups and expanding BPO operations.  The BPO sector in South Africa has a strong potential to contribute to economic growth and employment, however, the cost of telecommunications has been a harmful factor in attracting global BPO investors. The BPO sector is considered a key priority under the Accelerated and Shared Growth Initiative of South Africa (AsgiSA), which seeks to achieve an annual economic growth rate of 6 percent by 2010 to halve poverty and unemployment by 2014. The sector has the potential to create up to 100 000 new jobs in the country and contribute about R7.95 billion to the national economy by 2009.

Angolan head of State, José Eduardo dos Santos, has appointed an Inter-ministerial Commission for the Protection of Diamond Resources (Cipred). The Commission will assist in promoting defense and conservation of natural resources, and guiding in its exploration and development.  Cipred will be responsible for identifying and characterizing all areas of informal prospecting of diamonds, metallic minerals and rocks. In addition, Cipred will draft an integrated program for the protection of miner al resources.  The commission will also be in charge of drafting plans for illegal prospectors of diamonds and repatriation of illegal foreigners, controlling the borders, and managing cooperatives of farmers and arts and trade, in order to absorb former illegal prospectors.  Source: ANIP

Countries around the world, including some of the poorest in Africa, have made “significant progress” in improving governance and fighting corruption over the decade, the new “Worldwide Governance Indicators” (WGI) study by the World Bank Institute and World Bank Development Economics Vice-presidency shows. Significant improvements in governance over the past decade occurred in countries as diverse as Indonesia, Tajikistan, Serbia, and Slovakia.  And in Africa in particular, countries such as Niger, Sierra Leone, Angola, Democratic Republic of Congo, Liberia, Tanzania, and Rwanda showed significant improvements in some dimensions of governance since 1998.  Even over the relatively short period since 2002, there have been big improvements in some aspects of governance in countries such as Liberia, Angola, Argentina, and Georgia.  some countries, including some of the poorest ones in Africa, are deciding to move forward, and are showing to the world that it is possible to make substantial inroads in improving governance over a relatively short period of time. WBI says research has shown the importance of good governance for aid effectiveness in general, and for the success or failure of World Bank projects in particular. The new 2007 volume and study, as well as the revamped and interactive website, showcases the full WGI dataset, covering 212 countries and territories from 1996 to 2006. Worldwide Indicators 2007 (pdf)  Source: World Bank

The central Huambo Government will invest US$ 150 million in the rehabilitation of the electrical energy and public lighting systems in the districts of Longonjo, Ukuma, Ekunha and Tchinjenje.  The project will consist of the acquisition of generators, the rehabilitation of electric posts and transportation and distribution networks. The investment will be managed by Interservice-Ltd Company.

An Angolan company plans to begin producing cars later this year through a venture funded by a Chinese firm and based on technology from Japan's Nissan Motor Company. CSG Automovel-Angola, will begin producing pick-ups, SUVs, compact cars and other vehicles in October, at a factory on the outskirts of Luanda. Initial annual capacity will be 5,000 vehicles, but is expected to eventually rise to 30,000. A gasoline-based Paladin will be among the Nissan-style models produced.

Angolan airline, TAAG, recently announced that the airline will resume their flights to Lisbon and Paris. The airline will be making direct flights via Air Bus 330 charter planes. The airplanes offer two seating classes (economy and executive) and have a capacity to carry 250 passengers, 50 in executive seating and 200 in economy class.

The World Bank is to support Ghana in implementing the Growth and Poverty Reduction Strategy (GPRS II) to achieve a middle income status and ensure that the benefits of the growth are shared. A statement from the Bank said the Board of Executive Directors of the World Bank discussed its new Country Program for Ghana, representing US$1.3 billion for new operations based on the Ghana Joint Assistance Strategy (G-JAS) signed by 16 partners.  The Board also approved two projects, an Urban Transport Project financed by an IDA Credit of US$45 million and a Global Environment Facility (GEF) grant of US$7 million, and an additional financing of the International Development Association (IDA) to the tune of US$10 million for the Small Towns Water Supply and Sanitation Project. Under the previous Country Assistance Strategy, Ghana exceeded its two overarching objectives, raising its GDP from an average five per cent over the past two decades to an average six per cent during 2004-06.  According to a recent Ghana Living Standard Survey (GLSS) report released by the Ghana Statistical Service, poverty indicators also show a remarkable improvement, down to 28.5 per cent in 2005/2006, from 39.5 per cent in 1998 and 51.7 per cent in 1991. The three overarching objectives of the World Bank Program with Ghana are to sustain economic growth of at least six per cent per year, surpass the millennium development goal of halving poverty to 26 per cent and start to reduce inequalities. During the four-year implementation period of G-JAS (2007-10),
development partners expect to provide about US$5.7 billion to support Ghana’s efforts, while the Government of Ghana is planning to provide roughly the same amount for priority development programmes over the first three years.Source: Africa News

The South African Broadcasting Corporation has recently opened a new East Africa Bureau which was launched in Nairobi, Kenya by the Deputy President, Phumzile Mlambo-Ngcuka.  Speaking at the launch, Mlambo-Ngcuka said the new bureau would help the SABC play an important role in providing a platform to generate news stories that promote the interests of the region. The Bureau would help to build bridges for countries in the region to understand each other, she said, and that it would go a long way in recasting how Africa and her people are seen.  According to the Deputy President, the political stability and economic prosperity in East Africa will help the SABC meet its corporate goal to produce compelling, professional, authoritative news and programming on current affairs and would create employment and generate wealth for the local economy.

Banco Nacional de Angola (BNA) has received a total of US 2.7 billion in bonds for the first semester of 2007, compared to US$ 1.6 billion last year, representing a growth of 83%. This increase reflects both a reduction in economic liquidity, aimed at holding price levels steady, as well as higher interest rates, aimed at attracting the market. There were three types of bonds first issued in Angola in 1997, Central Bank bonds (TBC), Treasury notes (BT), and Treasury bonds (OT). BNA bonds and T-notes mature anywhere from 28 to 364 days, while treasury bonds mature from 1 to 30 years. They can only be issued 8 times a year with the minimum purchase of 10 bonds, at any commercial bank.

The UCT Graduate School of Business (GSB) in South Africa is hosting a high level conference in South Africa, themed “Connecting Two Continents”, which is aimed at growing trade and investment between Africa and India.  The 2007 UCT GSB Doing Business in Africa Conference has been endorsed by the Department of Trade and Industry, Indian High Commission, Nepad Business Foundation, Business Unity South Africa, Industrial Development Corporation, Wesgro, Cape Regional Chamber of Commerce and Industry, and Cape Town Routes Unlimited.   It will bring together nearly 250 African and Indian participants – panelists and delegates – from commerce and industry, the government sector, academia, civil society and the media. 

The expansion of agriculture is the leading cause of habitat loss around the world and one of the greatest threats to global biodiversity. IFC and the Global Environment Facility, with other donors and partners, will launch an initiative in the third quarter of 2007 to promote best environmental and social practices in the production and overall supply chain of four commodities: palm oil, cocoa, soybeans, and sugarcane. The initiative, the Biodiversity and Agricultural Commodities Program, recently obtained final approvals from IFC and the Global Environment Facility. The program will offer advisory services for projects involving the private sector that support adoption of better management practices at the production level, increase the demand for biodiversity-friendly products, and improve financial institutions' ability to support adoption of biodiversity-friendly practices. The program will also support multi-stakeholder initiatives that create sustainable markets for agricultural commodities.  The program management unit will send out requests for project proposals in September/October 2007.

The World Cocoa Foundation (WCF) has announced that it has joined with two leading international development organizations to help improve cocoa farmer incomes in Cameroon, Ghana, the Ivory Coast, Liberia and Nigeria.  The new program, supported by the Canadian International Development Agency (CIDA), the United States Agency for International Development and the WCF, will help organize cocoa farmers into group sales organizations, often referred to as co-operatives. The new effort will also help farmers develop financing options, marketing techniques and multiple buyer options – all to enhance their ability to sell cocoa at the best price possible.  The program is part of the Sustainable Tree Crops Program (STCP), and builds upon the STCP’s efforts to address the challenges facing cocoa farming families in West Africa.  The new program will begin immediately, and will coincide with the five-year timeline for the Healthy Communities initiative.  Established in 2000, the World Cocoa Foundation plays a leading role in strengthening the partnership between industry and cocoa farmers.

The Western Cape film industry has contributed at least R3.5bn to South Africa’s gross domestic product (GDP) in the 2006 financial year. This was one of the key findings of a baseline study commissioned by the Cape Film Commission (CFC) and conducted by Barry Standish, Economist at the UCT Graduate School of Business (GSB) and Antony Boting, a consultant at Strategic Economic Solutions and MBA graduate of the UCT GSB. This is the first in its type of research in the film industry in South Africa and it will assist in monitoring the size and growth of the industry, and strengthening its competitive advantages and skills.  In addition to contribution to gross domestic product (GDP), it is estimated that the film industry created at least 6058 full year job equivalents in the Western Cape, while a further minimum 2501 indirect jobs were also created in the province.

Private foreign investment in Angola reached 1.4 billion dollars during the 2005/2006 period, representing an increase of 33%, according to the Chairman of the Administrative Council of the National Private Investment Agency (ANIP), Carlos Fernandes. According to Fernandes, this investment is a result of the country's macroeconomic and political stabilization since 2002. During 2005/2006, Portugal was the country with the most investments in Angola (57%), with US$ 200 million invested in the country.  In terms of future perspectives, Fernandes has said that it is possible for the country to achieve growth of 32% or 34%, which would be one of the highest rates in the world. Private foreign investment is expected to increase with the improvement of infrastructure, including power supply, roads, telecommunications and water.

Travel and Leisure Magazine in the United States has ranked Cape Town as the number one city in Africa and the Middle East region.  Cape Town beat a host of cities to be ranked tenth in the "Best City in the World" category at the Travel and Leisure World's Best Awards 2007. Cape Town is famed for its renowned flat-topped Table Mountain, which rises to 1,086 metres at its highest point, and the area's rich mix of biodiversity and Fauna and Flora including some 8 500 endemic flowering plant species.  The city, which was evaluated according to criteria such as natural beauty and cultural diversity, cuisine and value for money, has been ranked as number one on the Africa and Middle East region and in the top ten best tourist destinations since 2004.

The Savings and Credit Bank (BPC) has set up mobile counters in the country’s capital city, Luanda, to improve its service to customers.  The counters will be set up in high traffic areas, such as in urban zones and surrounding areas, military barracks, business firms, police stations and public institutions, to provide a rapid, dynamic and quality service. The mobile service will only be available in Luanda, as it has about five million inhabitants.

Stockbrokers in Kenya can now accept credit card payments from retail investors. This was announced by the Nairobi Stock Exchange over the week. The Kenya Stockbrokers Association Chairman, Mr. Jos Konzolo says the move is expected to increase access to the Nairobi Stock Exchange (NSE) by overseas retail investors. A partnership between Barclays Bank and NSE members will see stockbrokers and investment banks signed up as Barclaycard merchants, authorised to run cards on point-of-sale terminals. Source: Databank

The SEC of Nigeria has given approval for the proposed merger between Stanbic Nigeria and IBTC Chartered Bank. The conclusion of the merger will transform the Standard Bank Group which owns Stanbic into the biggest pan-African bank and the 6th biggest bank in Nigeria.  Source: Databank

The African Development Bank (AfDB) Group has made over a billion dollars in annual private sector investments in Africa for the first time since its founding in 1964.  The Bank’s Board of Directors has approved two new financing transactions:  a Euro 6 million loan to establish the Sahanivotry micro-hydro power station in Madagascar and a Euro 0.6 million equity investment in the micro enterprise-oriented Access Bank of Tanzania.  With both approvals, the AfDB’s total investments without sovereign guarantees thus far in 2007 amount to $1.01 billion. The AfDB provides a range of financial products without sovereign guarantees to complement its traditional lending operations to governments with sovereign guarantees. Private sector operations of the Bank Group promote strong environmental, social, and corporate governance standards as well as help African companies achieve international best practices, making them more competitive at home and in the international marketplace.  For future non-sovereign guaranteed investments in Africa, the AfDB will focus on public-private partnerships in the financial sector including microfinance, infrastructure, extractive industries, manufacturing, agribusiness and services, with special emphasis on projects that promote regional integration. The AfDB works in close collaboration with other development partners and its private sector operations are presently benefiting from special financial assistance from the government of Japan, which has joined the AfDB to establish the Enhanced Private Sector for Africa (EPSA) Initiative

Total Gabon and the Republic of Gabon have signed an agreement to renew for 25 years the convention of establishment, which expired on June 30, 2007. The convention of establishment defines, among other things, the legal and tax system governing Total Gabon’s concessions, operating licenses and crude transportation installations. It covers 17 concessions and operating licenses representing an area of nearly 1,500 square kilometres and more than 60% of Total’s share of output in Gabon (more than 50,000 barrels per day in 2006).  Total is considering additional development of the Anguille field, wholly owned by Total Gabon, which came on stream in 1966. A final investment decision could be made at the end of 2007. This project would add more than 100 million barrels of proved and probable reserves and 30,000 barrels of oil per day in first half of next decade. The renewal of the convention of establishment between Total and the Republic of Gabon demonstrates their renewed trust in developing the country’s natural resources. Total Gabon is Gabon’s top-ranked oil operator, with total operated crude oil production of around 36% of the country’s output. Total’s equity production averaged 87,000 barrels of oil equivalent per day in 2006.  Total Gabon is a Gabonese company whose shares are listed on Eurolist by Euronext Paris. Total holds 58%, the Republic of Gabon 25% and the public float is 17%.

Omnia, the diversified, specialist chemical services company providing customised solutions in the chemicals, mining and agriculture markets, today reinforced its commitment to BEE and employee ownership by implementing a transaction that has resulted in the introduction of a 10% equity participation by employees in the group’s businesses.  In order to facilitate the BEE Transaction, Omnia has undertaken an internal restructuring, which has effectively resulted in the sale of the Group’s assets, essentially on loan account, to a new 100% owned company (“NewCo”). NewCo thus holds all the assets of the previous operating subsidiaries of Omnia.  The main beneficiaries will be Omnia’s full time black employees (including Indian and coloured employees) working for Omnia in South Africa, and all other full time employees working for Omnia in South Africa who do not participate in the Partnership with Management 3 Incentive Scheme will own shares in Sakhile, irrespective of length of service.

Moscow’s businesses have shown a strong interest in establishing direct trade and economic ties with the Gauteng government and the private sector.  During a visit to Moscow with a government delegation from South Africa, Gauteng Premier Mbhazima Shilowa and the Governor of the Regional Government of Moscow, BV Gromov, signed a protocol of intention on cooperation.  The cooperation will focus on issues such as trade promotion, tourism, small business development, e-governance, science and technology, mineral beneficiation and sport development. Visual arts, creative industries, education exchange programmes and information communication technology in schools are also areas they will focus on. Gauteng is not just South Africa's economic engine but it also presents foreign investors with the opportunity to move into the rest of the African market.

With effect from April 1, 2007, Angola’s national minimum wage has been changed to approximately US$ 99 (Kz. 7,420). The new statute also amended minimum wages by industry sector. The minimum wage applied to the transport, service, and manufacturing sectors was set at approximately US$ 124 (Kz. 9,275), and the minimum wage for the mining industry was set at approximately US$ 148 (Kz. 11,130). Source: ANIP

South Africa and Spain have agreed to explore ways of ensuring a trade balance between them following bilateral talks. The two governments have agreed to investigate ways of increasing two-way trade to address the trade imbalance currently in South Africa's favour, according to the South African Department of Foreign Affairs.  The department said some Spanish business federations are already participating in business ventures in South Africa, including in water, sanitation, mobile clinics, toll road management and infrastructure projects.  Multi-lateral co-operation will also be facilitated through the European Union - SADC Economic Partnership Agreement (EPA) to be finalised in 2007.

The Angolan parliament is scheduled to approve new civil aviation legislation this year, to regulate operators in the sector and bring the country in line with international standards. The new law, a revision of 2000 legislation, has already been presented to the government, beginning the process of approval.

Iran and South Africa have held discussions on increasing agricultural co-operation between the two countries.  In the past two years, Iran has imported a great deal of corn, grapes and oranges from South Africa and had exported summer crops and fruits there.  South Africa has a similar co-operative relationship with Italy, which is one of the country's top ten trading partners. 

Under an agreement with the Angolan banking service agency, Empresa Interbancária de Serviços (Emis), Unitel will now use GPRS service. This service will offer greater security to payment operations. Unitel also signed a contract with Powertrack, under which GPRS technology will be used for fleet management. By offering the Angolan market a new range of services and products based on data transmission, Unitel intends to boost efficiency and productivity.

Technical discussions are underway regarding the first stretch to link three countries, from Luanda to Namibia, by extending the Angolan line now linking Cabinda to Namibia. A second link with two other countries will start in Santa Clara and a third, along the Caprivi Strip. Other links will be made with the Democratic Republic of Congo, the Republic of Congo, and Zambia, so that those without international access can make use of Angola’s SAT 3 link.

Guaranty Trust Bank of Nigeria listed on the London Stock Exchange main market yesterday. The bank is the first Nigerian company to list on the exchange following the floatation of US$750m of Global Depository Receipts with one GDR representing 50 ordinary shares. The offer price per GDR at admission was set at US$11.20; these will be traded on the Exchange’s International Order Book (IOB). The proceeds of the offer will be used to fund the expansion and refurbishment of its branch network, strategic business development including ATM rollout, enhancing call centres and other e-banking services, increasing equity investment in existing branches including GTBank’s insurance subsidiary as well as increasing working capital, the expansion and upgrading of IT infrastructure and further regional expansion into West Africa.  Source: Databank

A total of US$ 335,000 will be invested for the training of agriculture staff and for the production of flowers in Angola as part of a project signed by the Agriculture and Rural Development Ministry and the Food and Agriculture Organization of the Unite d Nations (FAO). The project exists under the technical bilateral cooperation between Angola and FAO, an organization to which the country is a member. The agreement will allow Angolan peasants to benefit from local seeds for their cultural activities.

Ghana.com, operators of the Network Computer Systems, the pioneer internet provider in Ghana, has established an eCommerce platform known as eCash to serve Ghanaians online to enable them to use the Ghana Cedi online. Known also as eSika, the platform, according to Dr Nii Narko Quaynor, Chief Executive of Ghana Dot Com, is an online payment processor that makes it possible for online merchants or websites to accept payment instruments and develop business to consumer applications. For the first time in Ghana, consumers can use their debit cards to shop online locally. Ecobank Ghana recently launched Ghana’s first credit cards.

There was a sharp decline in unemployment and poverty in South Africa, an annual report from the national statistics bureau has confirmed. Economists therefore believe that the country will be on course to halve unemployment and poverty within seven years if the present economic growth of 5% continues.  The report said between 2002 and 2006, the ratio of households in which a child went to bed hungry fell from 6.7% to 2.4%. Equally, during the same period the proportion of households with access to electricity, water, toilets and waste removals increased significantly. The percentage of households that had access to electricity rose from 75.6% to 81.3%, while piped water grew by 5.2%. Though unemployment rates in South African stand at 25%, officials say that 1.5 million jobs have been created during the last three years. However, with rapid growth of social grants now up to 20%, has been seen as playing a key factor in the general improvement of the situation in South Africa. Last year, the South African Government spent over a billion Euro on grants for old age, disability, foster care and child support. Going by the current 5% economic growth, it is believed that South Africa should be on course to halve poverty and unemployment by 2014.  Source: Afrol News

Two-way commercial exchanges between Angola and South Africa have surpassed USD 300 million annually. This number is expected to grow as South African companies are looking to expand investments in Angola, particularly in areas such as iron and nickel mining. Approximately 22 South African companies exhibited products at the Luanda International Fair, ranging from construction material and hospital equipment, to electronic security equipment and
agro-cattle products. Bilateral trade has been gaining momentum as more action programs are being implemented at the level of the Southern African Development Community (SADC). The time is opportune for boosted trade and investment between the two states. South Africa is not interested in just exporting to Angola; most firms want to start businesses in Angola.

Tanzania will shortly have one of the world's fastest, cheapest and most reliable communication technologies. This comes after the Tanzania Communications Regulatory Authority (TCRA) granted an International and National Application Services license to a newly registered firm (wireless phone and internet Service Company) known as WBS (iBurst) Tanzania. Granting the license to the new operators, Prof. John Nkoma, the Director General the TCRA said TCRA was determined to ensure that Tanzanians have a wider choice of mobile phone and internet services. He said TCRA would ensure that operators provided quality services at affordable charges for the phone calls and internet services provided. Iburst employs 4th Generation technology known as G4, the most current and of highest capacity. Tanzanians will now be able to view various events like world cup broadcast on TVs on their cell-phones and laptops. Source: East African Business Week.

In 2006 Angola’s share of Brazilian exports was at US$ 530 million. Brazil’s exports to Angola accounted for US$ 870 million, a 60% rise over the previous year, reflecting an increase in Brazilian business interest in the Angolan market. Imports include industrial equipment, tractors, construction material, cattle, furniture, clothing, food goods, and other consumer goods. Total Angola-Brazil trade reached US$ 1.4 billion.  Source: ANIP