1
MEMORANDUM Nº 228/2012 11/12/2012
The EBCAM’s Memoranda are issued with the sole purpose of provide daily basic business and economic information on Africa, to the 4,000 European Companies affiliated with our Members, as well as their business parties in Africa. Should a reader require a copy of the Memoranda, please address the request to the respective National Member. See list of National Members at www.ebcam.org.
SUMMARY: ONE) –TUNISIE: L'UNION EUROPEENNE ADOPTE UN NOUVEAU PROGRAMME D'APPUI A LA TRANSITION DEMOCRATIQUE – Page 2 TWO) - L’UNION EUROPEENNE SOUTIENT LA PROMOTION DES DROITS DE L’HOMME AU MAROC – Page 2 THREE) – AFRICA WANTS GREATER HELP FROM KOREA – Page 3 FOUR) - DHL’S STRONG SOUTH AFRICA GROWTH REFLECTS RISE IN INTRA-AFRICA TRADE – Page 4 FIVE) – NIGERIA: STOLEN OIL, STOLEN REVENUE – Page 4 SIX) – SOUTH AFRICA STEPS UP ITS NUCLEAR PROGRAMME – Page 6 SEVEN) – JOINT VENTURES EXPLORED WITH TANZANIA – Page 6 EIGHT) – SOUTH AFRICAN JOB LOSSES MOUNT AS STRIKES PROMPT GDP CUT – Page 7 NINE) – ZAMBIA: INVEST IN ZAMBIA, SATA URGES KOREANS – Page 8 TEN) – DOHA CLIMATE CHANGE DEAL CLEARS WAY FOR 'DAMAGE AID' TO POOR NATIONS – Page 9 ELEVEN) – COOPERATION WITH FRAGILE STATES – Page 10 TWELVE) – NEW PUBLICATIONS- Page 10 THIRTEEN) – ECOBANK, ICIC FORGE ALLIANCE ON INDIA-AFRICA TRADE – Page 10 FOURTEEN) – TAMARISK INVESTMENTS UNDERWRITES MAJOR INVESTMENT IN KENYA – Page 11 FIFTEEN) – AFRICAN AIRLINE GROWTH COULD CREATE 5M JOBS – Page 11 EBCAM NEWS -
Chambre de Commerce Belgium Luxembourg- ACP – Page 12
European Business Council for Africa and the Mediterranean The European Private Sector Organisation for Africa’s Development
2 ONE) –TUNISIE: L'UNION EUROPEENNE ADOPTE UN NOUVEAU PROGRAMME D'APPUI A LA TRANSITION DEMOCRATIQUE L'Union européenne (UE) a approuvé un nouveau programme d'assistance financière pour la Tunisie qui vise à soutenir le processus de transition démocratique en cours et à mettre en œuvre certaines des priorités récemment agréées entre l'Union européenne et la Tunisie dans le cadre du partenariat privilégié. Štefan Füle, Commissaire européen à l'Élargissement et à la Politique européenne de voisinage, a déclaré: "A travers cette deuxième phase du Programme d'appui à l'accord d'association et à la transition, la Commission européenne marque sa confiance dans le processus de transition engagé depuis la révolution." Il a ajouté: "Outre le soutien aux efforts des autorités tunisiennes visant à pérenniser les acquis démocratiques de la révolution, l'Union européenne accompagnera les acteurs de la société civile qui ont un rôle indispensable à jouer pour la création d'un Etat de droit, la définition des politique publiques, le respect des droits de l'Homme, de la liberté d'association, d'expression et la liberté des médias." S'élevant à 15 millions d'euro, ce programme s'inscrit dans la continuité du premier Programme d'appui à l'accord d'association et à la transition (P3AT) de 10 millions d'euro adopté en mars 2012 qui a déjà permis le financement de 8 actions prioritaires dans les domaines suivants: processus constitutionnel, lutte contre la torture, soutien à la radio tunisienne, prévention des violences faites aux femmes, protection des migrants/demandeurs d'asile, ainsi que processus de récupération des avoirs en devises des proches du clan de l'ex-Président Ben Ali gelés dans les banques à l'étranger, suite à la chute de régime en janvier 2011. Il intervient également en continuité de deux programmes qui ont soutenu le processus de modernisation: le Programme d'Appui à la mise en œuvre de l'Accord d'Association (P3A) de 20 millions d'euros adopté en 2002 qui a permis notamment le financement de 17 jumelages et le Programme d'Appui à la mise en œuvre de l'Accord d'association et du Plan d'Action voisinage (P3A2) adopté en 2007 et doté de 30 millions d'EUR qui a permis notamment le financement de 19 jumelages;. Le nouveau Programme prévoit de financer des jumelages institutionnels avec les administrations des Etats-membres, mais aussi de l'assistance technique et des subventions afin de renforcer la capacité des administrations, des institutions publiques et des acteurs de la société civile, partenaires indispensables pour la réussite de la transition démocratique. Le programme vise à appuyer la mise en œuvre de l'Accord d'Association et du Plan d'Action du partenariat privilégié, récemment agréé par le Conseil d'Association UE-Tunisie. Le nouveau programme complète d'autres actions soutenues par l'UE en 2012 telles que l'amélioration à l'accès aux services de soins de santé de base dans les régions défavorisées (12 millions d'EUR), le développement de la société civile tunisienne (7 millions d'EUR), la réforme du secteur de la justice (25 millions d'EUR), ou encore un appui budgétaire pour la relance de l'économie tunisienne (68 millions d'EUR). De plus, dans le cadre de la Politique Européenne de Voisinage renouvelée, le programme accorde une place importante aux organisations de la société civile qui pourront directement bénéficier de sa mise en œuvre. Cette action est financée par le programme SPRING (Support for Partnership, Reforms and Inclusive Growth) lancé par l'UE à la suite des révolutions arabes de 2011. La Tunisie est liée à l'Union européenne depuis 1998 avec l'Accord d'Association; à l'occasion du Conseil d'Association le 19 novembre dernier, l'Union européenne et la Tunisie ont trouvé un accord sur un nouveau Plan d'Action (2013-2017) pour un partenariat privilégié. Ces accords constituent le cadre juridique régissant les relations entre l'Union européenne et ses partenaires en matière politique, économique et commerciale, sociale et culturelle. Ils visent notamment à renforcer la coopération entre la Tunisie et l’UE et à promouvoir la convergence économique, sociale et institutionnelle.
TWO) - L’UNION EUROPEENNE SOUTIENT LA PROMOTION DES DROITS DE L’HOMME AU MAROC Dans le cadre de son initiative SPRING, la Commission européenne a adopté aujourd'hui un programme de 2,8 millions d’euros pour le Maroc afin de soutenir l’action de deux institutions-clés dans la protection et
3 la promotion des droits de l’Homme au Maroc: le Conseil National des Droits de l’Homme (CNDH) et la Délégation Interministérielle des Droits de l’Homme (DIDH). Priorités de l'Union européenne, le renforcement de l’Etat de droit et du respect des droits de l’Homme constituent deux des engagements principaux pris par le gouvernement marocain dans le cadre du Plan d’Action pour la mise en œuvre du Statut Avancé négocié conjointement avec l’Union européenne. Les efforts entrepris depuis la fin des années 1990, qui ont notamment vu le Maroc souscrire à un nombre croissant de conventions internationales relatives aux droits de l’Homme. ont abouti en 2011 à l’adoption d’une nouvelle Constitution. Celle-ci consacre un nombre important de principes garantissant le respect des droits de l'Homme et des libertés fondamentales. La nouvelle Constitution a également permis d’institutionnaliser et d’accroitre les prérogatives de certaines institutions actives dans le domaine de la protection et de la promotion des droits de l’Homme. Štefan Füle, Commissaire européen à l'Élargissement et à la Politique européenne de voisinage, a déclaré: "A travers ce nouveau programme, l'Union européenne démontre l'importance qu'elle accorde aux droits de l'homme et l'appui sans réserve qu'elle entend donner au CNDH et à la DIDH dans l'accomplissement de leurs missions respectives. Les avancées qui en découleront rapprocheront de manière significative le Maroc des valeurs essentielles de l'Union européenne dans le domaine des droits de l'homme, de la démocratie et de l'Etat de droit." Le CNDH et la DIDH sont appelées à jouer un rôle prépondérant dans la protection et la promotion des droits de l’Homme dans les années à venir. Parmi les activités qui seront soutenues figure l'échange d'expériences et de bonnes pratiques avec des instances européennes ayant des compétences et un mandat similaires. La coopération entre le Maroc et l'Union européenne pour consolider la démocratie et de respect des droits de l'Homme s'inscrit dans une dynamique établie. Celle-ci s'était notamment concrétisée par un appui à la réalisation d'un Plan national d'action à la démocratie et aux droits de l'Homme, ainsi qu'au suivi du processus de réconciliation nationale mis en œuvre suite aux recommandations de l'Instance Equité et Réconciliation.
THREE) – AFRICA WANTS GREATER HELP FROM KOREA The participants of the third Korea-Africa Forum adopted the Seoul Declaration calling for an increase in Korea’s development assistance to the continent and a specific action plan to deepen partnerships. Under the declaration, Korea vowed to increase non-binding aid to Africa gradually and expand cooperation across the region. The agreement came after Korean and 150 high-ranking officials from African nations exchanged their ideas on development assistance, trade, and investment at the minister-level meeting, held every three years. In a keynote speech to the forum, Prime Minister Kim Hwang-sik expressed optimism for Korea’s multilateral relations with the African nations. “If Korea’s development knowhow and experiences are married to the immense growth potential of Africa, the two sides will be able to open a new era for mutual prosperity,” Kim said. The prime minister predicted that exchange programs and partnerships between Korea and Africa will be continually growing in the future. In opening remarks to the two-day session, Foreign Minister Kim Sung-hwan said that Korea has sent approximately 1,000 aid volunteers to Africa and its development assistance to the continent this year will double the level of 2008. “Korea is striving to pass our expertise and knowhow on economic growth onto African nations,” he said. During the forum, participants exchanged their ideas on development assistance, trade, investment, peace and security. Jeffrey Sachs, director of the Earth Institute at Columbia University, and Eduard Koloma, vice minister of foreign affairs and cooperation of Mozambique, also delivered keynote speeches. Korea has joined the global effort to thwart Somali pirates near the Gulf of Aden and plans to send troops to South Sudan for a peace-keeping operation later this year. The government launched the Korea-Africa forum in 2006 to bolster partnerships with the continent. During
4 the previous forum, participants discussed ways of tackling challenges facing Africa, such as green growth, poverty reduction and capacity building. High-profile participants of the third forum include Prime Minister Kim and Michael Sata, president of Zambia, plus eight minister-level and five deputy minister-level officials from Africa. President Sata, who arrived in Seoul Monday for a five-day visit, delivered a congratulatory message at the forum. After this, he met President Lee Myung-bak for a summit at Cheong Wa Dae. The leaders of Korea and Zambia agreed to cooperate in the agricultural sector and infrastructure building of the African nation during a summit held at Cheong Wa Dae. President Lee and President Michael Sata exchanged their ideas on trade, investment, cooperation in energy and development assistance. Sata is the first Zambian leader to visit Korea since the two sides established diplomatic relations in 1990.
FOUR) - DHL’S STRONG SOUTH AFRICA GROWTH REFLECTS RISE IN INTRA-AFRICA TRADE DHL Express has seen strong double-digit growth in South Africa, affirming the country’s status as an integral player when it comes to trade on the continent, Charles Brewer, MD of DHL Express sub-Saharan Africa, said on Wednesday. DHL Express, which operates regional African hubs in Johannesburg, Lagos and Nairobi, is a division of the German logistics company Deutsche Post. "Although exporters to Africa are increasingly taking their products directly into many African countries, South Africa remains an important entry point into the continent, particularly to our immediate neighbours," Mr Brewer said. The group’s shipment numbers provide a good proxy for trade activity on the continent and reveal a positive economic outlook for Africa. The International Monetary Fund’s (IMF’s) Regional Economic Outlook for sub-Saharan Africa report, which was released last week, said economic activity in the region is projected to expand by about 5% in 2012 and 2013. In addition, the International Air Transport Association recently reported that African airlines transporting freight in the region witnessed a 10.2% increase in demand in August. The figures highlight that Africa is proving to be less susceptible than other regions to the peaks and troughs in the global economy, as it increasingly looks to diversify its trading partners. "Our dependency on Europe has been reduced, while trade with Asia as well as intra-Africa has picked up significantly. This is proving to be extremely positive, in light of the economic pressure Europe is currently experiencing," Mr Brewer said. Even though opportunities exist for companies doing business on the continent, there are still significant challenges around infrastructure, labour relations and the ease of cross-border trade within the region that need to be improved upon. In a report examining the barriers that stifle cross-border trade on the continent‚ the World Bank said Africa’s largest retailer Shoprite spends a hefty $20‚000 a week on import permits to truck meat‚ milk and other goods to its stores in Zambia alone. "For all countries it operates in‚ approximately 100 single-entry import permits are applied for every week; this can rise up to 300 per week during peak periods. "As a result of these and other requirements‚ there can be up to 1‚600 documents accompanying each truck Shoprite sends with a load that crosses a border in the region‚" the World Bank said in February. (BDLive)
FIVE) – NIGERIA: STOLEN OIL, STOLEN REVENUE Nigeria is the world capital of oil theft, at least according to The Economist. However, because the government does not know how many barrels it produces, the exact extent of the theft is unknown.
5 Figures outlined by Ngozi Okonjo-Iweala, Nigeria’s finance minister, suggest that illegal oil bunkering could be as high as 400,000 barrels per day (bpd) and have led to a 17% fall in officials sales in April 2012. Shell Petroleum Development Company (SPDC), however, estimates the loss to be much lower at 150,000 to 180,000 bpd, approximately 7% of production. Either way, the costs of theft are huge. If we take the official figures for barrels lost to bunkering, Nigeria and its operating partners may be losing around $40 million per day (assuming a flat price of $100 per barrel) which translates to around $15 billion in revenue per year. Add to this the loss of life from the dangerous activity and the damage done to the environment due to spills and the urgency of the problem becomes clear. Slick thieves Despite much political rhetoric over the importance of combating oil theft, the menace seems to be growing in sophistication. While a large amount of mystery surrounds methods of tapping oil, experts suggest that they range from local artisanal bunkering to highly organised and complex methods suspected to occur at the export terminal. This level of skill and sophistication suggests the possible involvement of powerful individuals behind the scenes. Many allege that high-level politicians, former and serving military officers, militant leaders and oil company employees may all be complicit in the practice. And given their ineffectiveness, some believe there could also be collusion amongst regulatory oversight agencies. Observers also point the finger at international cartels which operate ships illegally to transport stolen crude and sell it on the global market. However, until recently, multinational companies operating in the Niger Delta have not been overly concerned about oil theft, largely because the economic loss to them has been manageable. This is partly due to the fact that, in the absence of reliable data regarding the number of barrels of oil produced, oil companies pay taxes and royalties not based on production but on the number of barrels exported. In order to combat bunkering and enable the flow of oil to be more closely accounted for, the Nigerian Extractive Industries Transparency Initiative (NEITI) in 2011 recommended the installation of a robust metering infrastructure at flow stations and terminals in line with international best practice. With meters installed at flow stations – and with oil taxed at rates of production rather than exportation – oil companies would bear a significant economic burden of lost oil. At current royalty rates (20% in the case of onshore and 18.85% in the case of offshore shallow waters) companies would pay around $8 million each day for the estimated 400,000 barrels currently lost to thieves. Unfortunately, however, the NEITI recommendations have not become law. Capping the leak Even if oil companies were pushed to find solutions, the deep-rooted and complex problem would prove difficult to tackle. To begin with, there are reportedly thousands of illegal refineries scattered around the Niger Delta. In just the first quarter of 2012, the Joint Task Force (JTF) in the Niger Delta claimed it had destroyed nearly 4,000 illegal refineries and seized hundreds of barges, boats, fuel pumps, tanks, and other equipment belonging to oil thieves. Governor Sanusi Lamido Sanusi of the Central Bank of Nigeria has suggested illegal refineries should be bombed, but this would not solve the problem which runs a little deeper. Many of the young men partaking in the business are ex-militants or even ex-oil industry workers with a shortage of alternative opportunities. What is needed then is not just the short-term removal of illegal refineries but also the creation of sustainable ways to offer young people long-term employment. As well the $1 billion needed to clean-up the environment around the Niger Delta, according to the United Nations, resources must also go into creating alternative livelihood opportunities for the youth. Another important step toward reducing oil theft is a concerted overhaul of the security system in the Niger Delta to ensure coastal waters and pipelines are policed by accountable agencies and that those charged with theft are prosecuted effectively. On past occasions, the trials of suspects have been impeded, leading some to accuse powerful individuals of intervening. Finally, bunkering could be reduced through the use of new technologies that can ‘fingerprint’ crude oil in order that its originating field can be identified. A long-term necessity Though efforts to end bunkering will prove difficult, plugging leakages in oil production will put more money on the table in the long-term. Platform, a UK-based research organisation, reported that Shell spent about $383 million on third parties to secure their facilities in the Niger Delta from 2007-2009. Since the declaration of the Niger Delta Amnesty
6 Programme for thousands of militants in 2009, the security challenges have reduced and those resources could now be used to fund a robust metering infrastructure at flow stations. This would stop confusion over how many barrels of oil the country produces and increase accountability. However, there is no sense in only blaming oil companies for oil theft. Oil companies, security agencies, government and all other stakeholders must work together. (Think Africa Press)
SIX) – SOUTH AFRICA STEPS UP ITS NUCLEAR PROGRAMME In a step towards the long-awaited nuclear build programme, the South African government will use the International Atomic Energy Agency’s (IAEA) integrated nuclear infrastructure review to assess the country’s readiness for a nuclear programme, the Department of Energy said. This is another sign that government is going ahead with the mooted nuclear programme. The integrated resource plan for electricity (IRP2010) makes provision for 9,600MW of new nuclear capacity by 2030. According to the IRP document, the first 1,600MW is due for commissioning in 2023. The department said the IAEA would conduct the integrated nuclear infrastructure review mission in February. It said an IAEA team this week conducted a three-day pre-mission workshop with "relevant stakeholders". Among others, the workshop defined the scope, work plan, and logistical arrangements for next year’s mission, the department said. "South African nuclear stakeholders such as Necsa, Eskom, National Nuclear Regulator, and key government departments including Energy and Public Enterprise are part of the National Nuclear Energy Executive Co-ordination Committee (NNEECC) that has developed the self-evaluation report for the country. The NNEECC is led by the Deputy President and serves as the national decision making body regarding the nuclear programme," the department said. It said the mission would, among others, look at safety, legislation, funding and financing, regulatory framework, radiation protection, electricity grid, human resource development, nuclear fuel cycle, procurement and radioactive waste. (BDLive)
SEVEN) – JOINT VENTURES EXPLORED WITH TANZANIA His Highness Sayyid Fahd bin Mahmood al Said, Deputy Prime Minister for the Council of Ministers, received Tanzanian President Jakaya Mrisho Kikwete. HH Sayyid Fahd welcomed the Tanzanian president and his delegation and reviewed with him the good relations between the two friendly countries which emanates from the historic ties that link the two countries. He pointed out that this meeting comes after the official talks between His Majesty Sultan Qaboos and the Tanzanian President, which shaped the future of the co-operation between the two friendly countries. He affirmed that His Majesty’s government will take all steps to boost co-operation between the two countries. The Tanzanian president expressed his delight for visiting the Sultanate in response to an invitation by His Majesty the Sultan. He thanked and appreciated His Majesty, the Omani government and people for the warm reception which reflects the deep rooted relations between the two countries. The president also hailed the official talks he had with His Majesty the Sultan and the outcome of which will have a positive impact on both friendly peoples. He admired the achievements made by the Sultanate at in both domestic and foreign spheres. He said the visit and the agreements signed on encouraging and protection of investments, establishing the Omani-Tanzanian Businessmen Council and others will open new horizons for more co-operation and provides opportunities to establish joint ventures between the Sultanate and Tanzania. During the meeting, they agreed on mechanism to enhance co-operation in various fields to serve the joint interests of both the countries. At the end of the meeting, they exchanged mementos. The meeting was attended by the Minister Responsible for Foreign Affairs, Higher Education Minister, Commerce and Industry Minister (Head of the Mission of Honour accompanying the guest), Agriculture and Fisheries Minister, Assistant Secretary-General for the Office of the Deputy Prime Ministers for the Council of Ministers, the Secretary-General of the Council of Ministers, OCCI Chairman and the Sultanate’s ambassador to Tanzania. From the Tanzanian side it was attended by the members accompanying the
7 president. (Oman Observer)
EIGHT) – SOUTH AFRICAN JOB LOSSES MOUNT AS STRIKES PROMPT GDP CUT The most violent mining strikes in South since the end of apartheid are hobbling an economy that’s faced with a 25 percent jobless rate and threatened by further credit rating downgrades. Growth in Africa’s largest economy will ease to 2.3 percent this year, the slowest pace since a 2009 recession, according to the median estimate of eight economists surveyed by Bloomberg this week. That’s down from 2.5 percent before the mining strikes began in August and 3.1 percent in 2011. The estimates range from 2.1 percent to 2.5 percent. Some of the 12,000 miners sacked by Anglo American Platinum Ltd. protest their dismissal and mourn a colleague killed in clashes with police at Bleskop Stadium in Rustenburg. Some of the 12,000 miners sacked by Anglo American Platinum Ltd. protest their dismissal and mourn a colleague killed in clashes with police at Bleskop Stadium in Rustenburg. Photographer: Alexander Joe/AFP/Getty Images Illegal strikes that spread from Lonmin Plc (LMI)’s Marikana mine in August prompted Anglo American Platinum Ltd. (AMS) to fire 12,000 workers on Oct. 5. Gold Fields Ltd. (GFI) said 11,000 workers returned to work today and 1,500 who didn’t will be fired. That may put President Jacob Zuma’s pledge of slashing the jobless rate to 14 percent by 2020 out of reach. “A meaningful amount of jobs” may be lost in the next year, Mike Schussler, chief economist at independent research group Economists.co.za, said in a phone interview from Johannesburg. “To carry on like this, we are destroying the future of our country.” Schussler estimates the unemployment rate, which is already the highest of more than 60 nations tracked by Bloomberg, will exceed 25 percent for the next two to three years. The economy may lose about 85,000 jobs this year, Michael Kafe, an economist at Morgan Stanley in Johannesburg, said in a note to clients on Oct. 15. Rand Slumps Investor confidence has been shaken by the strikes, which left at least 46 people dead at Lonmin’s Marikana mine, including 34 protesters killed by police on Aug. 16. The rand has slumped 4.8 percent against the dollar since then, the worst performer of 25 emerging market currencies tracked by Bloomberg. Moody’s Investors Service and Standard & Poor’s lowered South Africa’s credit rating in the past three weeks, citing rising political risk, slower economic growth and a weakening in government finances. They left the rating on a negative watch, indicating the chance of further downgrades if economic conditions don’t improve. “In 30 years, we haven’t seen such a spread of wildcat strikes in the mining sector,” Peter Major, head of mining at Cadiz Corporate Solutions, said at a panel discussion hosted by Bloomberg in Cape Town on Oct. 16. “It’s going to take a few years for normality to return.” Wage Boosts Wage settlements above the 5 percent inflation rate are boosting costs for mining companies, threatening jobs. Lonmin ended the six-week strike at Marikana by giving workers pay rises of as much as 22 percent. Impala Platinum Holdings Ltd. (IMP) gave workers a second salary boost this year to bring the average increase to 15 percent. The two companies employ about 60,000 workers in total.
8 Anglo American Platinum said today it will delay firing striking workers at its Union and Amandelbult mines as it moves salary talks forward. While the company won’t reinstate the 12,000 workers fired at the Rustenburg operation, it plans to discuss this further with labor unions, Johannesburg-based Anglo American Platinum said in a statement. Manufacturing Shrinks “If you assume some of the mining companies are going to have to cut costs because of the longer-term effects of the salary increases, it’s not unrealistic to estimate we could lose between 55,000 and 70,000 jobs in the short to medium term, “Claude Baissac, the founder of country-risk consultants Eunomix, said in a phone interview from Johannesburg.” The Reserve Bank, led by Governor Gill Marcus, already lowered its growth forecast to 2.6 percent in September and may review it again because of the strikes, Deputy Governor Daniel Mminele said in Tokyo on Oct. 14. Finance Minister Pravin Gordhan may adjust his 2.7 percent growth estimate in his mid-term budget next week. The labor unrest is putting pressure on an economy already hit by falling manufacturing output as the debt crisis in Europe curbs export demand. Factory output, which makes up 15 percent of the economy, contracted 1 percent in the second quarter, while South Africa posted its biggest current-account deficit in almost four years of 6.4 percent of gross domestic product in the period. The shortfall is undermining the rand and adding to pressure on inflation, making it more difficult for the central bank to lower borrowing costs. The bank left its key rate unchanged at 5 percent in September, after lowering it for the first time in 20 months in July. “It is difficult to see where the potential good news will come from at this point,” Razia Khan, head of Africa economic research at Standard Chartered Plc in London, said in a phone interview. Aside from interest rate cuts “there is very little else the authorities can do in terms of engineering some sort of economic resurgence.” (Bloomberg)
NINE) – ZAMBIA: INVEST IN ZAMBIA, SATA URGES KOREANS President Michael Sata has urged South Korean investors to set up manufacturing companies to contribute to Zambia's sustainable economic growth. Mr Sata said South Korean engineering companies should invest in Zambia and encourage trade missions. He was speaking yesterday at a Zambia-Korea investment business luncheon organised by the Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries, Korea International Trade Association and the Korea Federation of small and medium business at Shilla Hotel here. The President said Zambia was endowed with vast land and water resources which could be used to set up companies like Hyundai, Daewoo and Samsung. Mr Sata said Hyundai, Daewoo and Samsung in Zambia had not expanded their services. "I introduced companies like Hyundai but it's a pity that they don't even have a single vehicle in their showroom. "I need more industries to come to Zambia, there is a lot of room for development and you can make Zambia a springboard in economic growth," he said. President Sata said South Korea and Zambia had a lot in common, with the Asian economic giant being ahead in technology but with expensive labour costs. Zambia, he said, had vast tracts of land and affordable labour. Mr Sata said Zambia had a lot of raw materials and encouraged South Korean investors to set up factories that would process materials into finished products. KCCI chairperson Kyung-shik Sohn said Zambia was known for its natural resources and tourist attractions such as the Victoria Falls in Livingstone, and that it was one of the largest copper producing countries in the World.
9 Mr Kyung-Shik said Zambia was a gateway to Africa and that trade between the two countries had grown from US$300 million in 2008 to $520 million in 2011. He said South Korea and Zambia had continued showing robust economic growth in industries and mineral resources. Mr Kyung-shik said the relations between the two countries would further improve in various economic sectors. The President was accompanied to the business forum by Commerce, Trade and Industry Minister, Robert Sichinga, Tourism Minister, Sylvia Masebo, Agriculture Minister Emmanuel Chenda and Foreign Affairs Minister, Given Lubinda. The three ministers made separate presentations in which they all lured South Korean investors to capitalise on the conducive investment climate which the Zambian Government has provided. In his presentation to the forum, Mr Sichinga spoke about the investment potential that Zambia provides in the Southern African Development Community, which has more than 400 million people. Zambia Tourism Board managing director Felix Chaila and Citizens Economic Empowerment Commission director general Likando Mukumbuta also attended the forum. Meanwhile, President Sata has re-affirmed Zambia's commitment to continue working with the South Korean Government. Speaking during an official dinner for participants at the third Korea-Africa Partnership Forum at Cheong wa Dae, the official residence of South Korean President Lee Myung-bak, Mr Sata said Zambia and the Asian country would strengthen partnerships in various sectors. Mr Sata said the forum was a strategic partnership necessary for fostering development in Africa. Earlier in the day, Mr Sata held private talks with Samsung Engineering officials, among them, vice-president for Africa business development division Cho Sung Jun, executive vice-president for investment business, David Kim and marketing manager Jeon Min Woo.(Times of Zambie)
TEN) – DOHA CLIMATE CHANGE DEAL CLEARS WAY FOR 'DAMAGE AID' TO POOR NATIONS Poor countries have won historic recognition of the plight they face from the ravages of climate change, wringing a pledge from rich nations that they will receive funds to repair the "loss and damage" incurred. This is the first time developing countries have received such assurances, and the first time the phrase "loss and damage from climate change" has been enshrined in an international legal document. Developing countries had been fighting hard for the concession at the fortnight-long UN climate change talks among 195 nations in Qatar, which finished after a marathon 36-hour final session. Ronald Jumeau, negotiating for the Seychelles, scolded the US negotiator: "If we had had more ambition [on emissions cuts from rich countries], we would not have to ask for so much [money] for adaptation. If there had been more money for adaptation [to climate change], we would not be looking for money for loss and damage. What's next? Loss of our islands?" Ruth Davis, political adviser at Greenpeace, said: "This is a highly significant move – it will be the first time the size of the bill for failing to take on climate change will be part of the UN discussions. Countries need to understand the risks they are taking in not addressing climate change urgently." Ed Davey, the UK energy and climate secretary, said: "It's about helping the most vulnerable countries, and looking at how they can be more resilient." But the pledges stopped well short of any admission of legal liability or the need to pay compensation on the part of the rich world. The US had strongly opposed the initial "loss and damage" proposals, which would have set up a new international institution to collect and disperse funds to vulnerable countries. US negotiators also made certain that neither the word "compensation", nor any other term connoting legal liability, was used, to avoid opening the floodgates to litigation – instead, the money will be judged as aid. Key questions remain unanswered, including whether funds devoted to "loss and damage" will come from existing humanitarian aid and disaster relief budgets. The US is one of the world's biggest donor of humanitarian aid and disaster relief, from both public and private sources. It will be difficult to disentangle damage inflicted by climate change from other natural disasters. Another question is how the funds will be disbursed. Developing countries wanted a new institution, like a bank, but the US is set against that, preferring to use existing international institutions. These issues will have to be sorted out at next year's climate conference, in Warsaw, where they will be bitterly contested.
10 Davis said: "This [text] is just the beginning of the process – you need to have a finalised mechanism. But it will concentrate minds on the fact that it is in the best interest of countries all over the world to start cutting their emissions quickly." Governments also rescued the Kyoto protocol, the initial targets of which run out at the end of this year. The EU, Australia, Norway and a handful of other developed countries have agreed to take on new carbon-cutting targets under the treaty, running to 2020. A separate strand of the negotiations, set up to accommodate the US because of its refusal to ratify Kyoto, was closed. This will allow unified discussions to begin on a global climate treaty that would require both developed and developing countries to cut their emissions. The treaty is supposed to be signed in 2015, at a conference in Paris, and come into effect in 2020. The next three years of negotiations on the treaty will be the hardest in the 20-year history of climate change talks because the world has changed enormously since 1992, when the UN convention on climate change was signed, and 1997, when the Kyoto protocol enshrined a stark division between developed countries – which were required to cut emissions – and developing countries, which were not. China was classed then as a developing country, and although it still has about 60 million people living in dire poverty, it is now the world's biggest emitter and will soon overtake the US as the biggest economy. It has made clear its determination to hang on to its developing country status, and that the countries classed as developed in 1997 must continue to bear most of the burden for emissions cuts, and for providing funds to poor countries to help them cut emissions and cope with climate change.
ELEVEN) – COOPERATION WITH FRAGILE STATES Fragile states are a major challenge for global security. Many partner countries with which Germany has development cooperation are fragile states. The German government has now adopted guidelines on how to relate to such states. They were presented to the public in a joint press conference by Ministers Niebel (Development), de Maizière (Defence) and Westerwelle (Foreign Affairs). The new guidelines provide an interministerial frame of reference for Germany's cooperation with such states and highlight the German government's goals and the principles that govern its actions. The focus of development work in fragile states is on giving people, and young people in particular, prospects for a better future, thus draining support for extremism. (Bmz)
TWELVE) – NEW PUBLICATIONS -
-
Eurodad released a report evaluating the effectiveness of results-based approaches to aid. Ahead of the next DAC meeting, OECD released a report on aid untying. DFID’s Mark Lowcock held a speech on the future of international development. The Centre for Global Development worked out a set of recommendations for the reorientation of the World Bank’s IDA. Again, no African ruler was considered worthy of the Mo Ibrahim Foundation leadership award, The Guardian reports. The paper also featured an interview with the philanthropist and published a commentary. ‘Public financial management reform in fragile states: Grounds for cautious optimism?’ is the title of a new ODI Briefing Paper. The International Crisis Group published a report on the implementation of the peace and security architecture in Southern Africa. Global Harvest released its Global Agricultural Productivity Report 2012.
THIRTEEN) – ECOBANK, ICIC FORGE ALLIANCE ON INDIA-AFRICA TRADE Ecobank, the leading pan African bank, and ICICI Bank of India have signed a Memorandum of Understanding (MOU) to promote and facilitate trade and investments between India and Africa.
11 The agreement was signed by Mr Arnold Ekpe, the outgoing Chief Executive of the Ecobank Group, and ICICI Bank‘s President for International Banking and Small and Medium Enterprises, Mr Vijay Chandok. ICICI is the largest private bank in India. Under the MOU, ICICI Bank and Ecobank will co-operate to create a “one-bank” experience for their respective customers doing business in Africa and India. The focus will be on the day-to day banking and investment requirements of their customers such as trade finance, payments and remittances and also on major projects when these arise. India’s trade with Africa has doubled in the past four years to over $50 billion in 2010 and 2011. Stronger investment ties are complementing this steady growth in trade, with Indian investments in Africa across a range of sectors, including oil & gas, pharmaceuticals, petrochemicals, fertilizers, IT and infrastructure, reaching USD 33 billion in 2011. “We see tremendous potential in establishing an alliance for trade and investment between India and the 32 African countries that constitute our footprint in Africa, “Mr Ekpe, said of the agreement. “We look forward to working closely with ICICI Bank to promote and facilitate the growing trade and investment flows between Africa and the Indian sub-continent.” (The Guardian)
FOURTEEN) – TAMARISK INVESTMENTS UNDERWRITES MAJOR INVESTMENT IN KENYA Tamarisk Investments, a newly established Dubai based investment boutique, announces the underwriting of an investment by Willow Impact Investors in the Kenyan based Bio Food Products Ltd. This marks the launch of Tamarisk's SME investment program which will be dedicated to investing in the SME space across the MENA and East African regions. The firm will focus on investment opportunities in higher growth markets which play a pivotal part in shaping regional economies. Phiras Soubra, Managing Director of Tamarisk Investments said, "It's exciting to play such a role in the growth and development of SMEs, and nowhere is it more relevant than in our part of the world. Any healthy and sustainable economy needs a flourishing mid segment." Currently, SME contribution to economic activity in the largest regional economy, Saudi Arabia, stands at only 28%, almost half the level witnessed in developed countries around the world. "We expect this contribution to increase over time in order to meet the pressing needs of economic growth and job creation," added Soubra."This is why Tamarisk is committed to supporting entrepreneurs and their growing needs within these regions." Underwriting this investment by Willow Impact Investors in Bio Food Products Ltd., an award-winning Kenyan added ‐ value dairy goods producer, enables the organization to build and expand its production, milk collection facilities and distribution networks throughout Kenya and East Africa. Tamarisk has worked alongside Willow Impact Investors on this transaction, "Willow has a growing footprint in East Africa with a strong presence in Kenya. Their main objective is to invest in SMEs that are socially impactful. At Tamarisk, we favor this approach to investing, and as we invest our own capital alongside clients', we align both our interests," added Soubra. Tamarisk continues to put an emphasis on doing business within the region to help enhance the current position of SMEs. Following the success of this initial investment, the company will steadily move forward and actively seek high 2 growth opportunities in a number of various sectors, including; Healthcare, Food & Agriculture, Building Materials and Real Estate.
FIFTEEN) – AFRICAN AIRLINE GROWTH COULD CREATE 5M JOBS A boom in African air travel could create up to five million new jobs on the continent over the next decade, the head of low-cost South African carrier Mango told an industry meeting on Friday.
12 According to Mango chief executive Nico Bezuidenhout, who heads the subsidiary of state-owned South African Airways, the sector could grow by nearly 225 per cent by 2022. “Aviation in Africa could potentially create as many as five million new job opportunities in the next ten years and near triple its economic value to $220 billion,” he told the Conference of the Airlines Association of Southern Africa in Maputo. The industry currently employs an estimated 6.7 million people in Africa. But owing to poor infrastructure, a weak customer base, sometimes mediocre management and a poor safety record, African airlines have not always thrived. Bezuidenhout said that was changing. “Africa is no longer the last outpost. It is no longer a blip on aviation’s radar,” he said. “With continental GDP (gross domestic product growth) well ahead of the West at an expected five per cent this year, the time to get our collective house in order is now.” (The Nation)
EBCAM NEWS
CHAMBER OF COMMERCE, INDUSTRY AND AGRICULTURE BELGIUM-LUXEMBOURG-AFRICA-CARIBBEANPACIFIC
OBJECTIVES Founded in 1964, the CBL-ACP aims to facilitate and develop economic exchanges between Belgium, the Grand Duchy of Luxembourg and the African (North-Africa included), Caribbean and Pacific countries. Its experience gives companies and organizations the opportunity to strengthen their contacts and their presence in these countries. REALIZATIONS In Belgium
Events - Conference-luncheons/dinners - round tables - seminars With a view to develop contacts between special guests and members.
Assistance to business people by providing economic and commercial information, organizing meetings, obtaining visas quickly, etc ... The bilateral sections regularly organize working meetings in which country-specific issues are discussed. The "Diaspora" cell identifies the investment projects of people involved in the African Diaspora. This cell was created together with the Belgian Development Cooperation, BIO and the CDE. A "Funding" working group has been set up to help members in their export activities to ACP countries, to guide them in responding to calls for tenders made either in ACP countries or by the international financial institutions.
13
The CBL-ACP represents Belgium and the Grand Duchy of Luxembourg in EBCAM - the European Business Council for Africa and the Mediterraneanan (www.ebcam.org), working alongside other European member organizations. EBCAM’s Secretariat is located at CBL-ACP offices. The CBL-ACP has a seat on the Board of the CRE-AC - the Belgian Reference Centre on Expertise for Central Africa (www.eca-creac.eu). It is also a Board Member of the Federation of Belgian Chambers of Commerce (www.belgianchambers.be). In the African (North-Africa included), Caribbean and Pacific Countries
Economic missions are organized at regular intervals in close cooperation with federal and regional instances.
Permanent delegations abroad based in some 20 countries assist visiting members and are a source of information.
Fernando Matos Rosa Brussels
European Business Council for Africa and the Mediterranean The European Private Sector Organisation for Africa’s Development Rue Montoyer – 24 – Bte 5 1000 Brussels (Belgium) www.ebcam.org
Contact: info@ebcam.org