DAILY TRUST
27)
Frid ay, May 13, 2011
Business/International Food, fuel prices may crimp sub-Saharan Africa's growth SUB-SAHARAN Africa's economy is likely to grow by 5. 1 percent this year and 5.4 percent in 2012, but high food and fuel prices could slow its rapid recovery from the global financial crisis, the World Bank said yesterday. The Bank's earlier forecast showed the region growing by 5.3 percent this year and 5.5 percent in 2012. The regions economy grew 4.7 percent in 2010, rebounding from a 1.7 percent growth a year before, when the world economic crisis hit output "Having presented a fairly optimistic r.icture,1 should add that there are some real risks to this growth forecast. Perhaps most importantly is this increase in food and fuel prices that we are seeing right now;' Shantayanan Devarajan, World Bank chief economist for Africa, told Reu-
51Africa maize, wheat futures
down, track US prices
SOUTH Africa's maize and wheat futures feU yesterday, tracking international prices as concerns over supplies eased, but a weaker rand cushioned the local prices from a sharp decline. The most active July white maize futures contract closed 2.26 percent lower at 1,644 rand a tonne, while yeUow maize for delivery in the same month was down 2.50 percent to 1,676 rand a tonne. South African wheat for delivery in July closed 1.18 percent lower at 3,172 rand a tonne. Farmers around the world will harvest sharply larger grain crops this year, the U.S. government projected in an unexpectedly upbeat outlook on Wednesday, adding that a drop in U.S. exports would also help refill dangerters in an interview. "If food prices and particularly ously thin grain stockpiles. "It is on tbe back of Chicago but fuel prices continue to rise, there is some really serious risk to the growth the surprising thing is that Chicago forecast:' being so sharply down we should The world economic slowdown have been much lower ... the market hit Africa hard as demand for agri- has held quite nicely today on the cultural commodities like tea, coffee back of the weaker rand:' a Durbanand cocoa slowed and tourists trav- based trader said. Chicago corn futures lost more eUing to the continent from Europe and North America postponed holi- ground on Thursday, falling to a days and foreign direct investment six-week low, while wheat slid to its dried up. lowest in almost a week as grains Much of Africa has rebounded remained under pressure a day after from the global crisis and is enjoying a U.S. government report eased conhealthy growth thanks to prudent cerns over tight supplies. macroeconomic principles and a South African traders watch the surge in investments, Devarajan said Chicago Board of Trade (CIiOT) to remain competitive, while a weaker in the Tanzanian commercial capital. "I think they've bounced back - rand makes South African products very rapidly after the crisis. In fact cheaper for foreign buyers. this is the fastest turnaround that The rand dipped to its weakAfrica has ever experienced:' he said. est level in seven weeks on ThursDevarajan said the economies of day, tracking a retreat among othc;r many net food-and oil-importing commodity currencies and due to African countries could be hardest renewed investor risk aversion over hit by higher prices. (Reuters) eu(a zone debt concerns. The most traded soybeans futures contract for delivery in July closed up 1.09 percent at 3,236 rand a tonne. (Reuters)
Dana Gas faces delayed payments from Egypt
DANA Gas, the UAE energy firm, faces delayed payments of $148 million for gas from the Egyptian government which could have an impact on its future investments in the country, Dana's CEO told Reuters yesterday. "We have a four to five months delayed payments from the Egyptian government which is an aIT!ount of $148 million:' Ahmedal-Arbeed told Reuters in a telephone interview. Dana Gas has Significant investments in Egypt and said it produced 4.25 million barrels of oil equivalent (BoE) in thecountrydurmg the firstquarter of this year. . "If the payment is not made, this might make us think twice before reinvesting in Egypt but for riow we are in talks with the government and we hope the issue will be resolved soon:' said al-Arbeed. He said it was too early to say if the compaoy might consider stopping further investments in Egypt (Reuters)
SI Africa power firm may restart building two plants SOUTH Africa's power utility Eskom said yesterday that it would likely restart construction next week at its Medupi and Kusile power plants, which were shut following protests. Both construction sites were shut as a precautionary measure following violent protests by contract workers at the two sites.
"We want assurances of good conduct and that the sites will be safe before we reopen them, but we are hoping by early next week:' said spokeswoman Hilary Joffe. Eskom said earlier this week that the disputes were unlikely to impact the plants' schedule. Both plants, Eskom's two first power stations in more than two decades, are meant to fill a looming power crunch in Africa's biggest economy and prevent a repeat of a crisis which shut the key mining sector for days in early 2008 and cost the economy billions of dollars in lost output
Stephen Pell, a spokesman for Kusile Civil Works, a joint ventures ofcontractors at Kusile, said meetings with workers and the companies were ongoing. The protest at Kusile began in sympathy for workers at one of the firms, which was nearing the end of its contract and demobilising. At Medupi, whose first urtit is scheduled to come online at the end of20 12, workers protested against the hiring of foreigners as welders. Johannes Musel, chiefexecutive officer at Hitachi Power Africa, one ofthe contractors at Medupi said that several meetings were taking place in a bid to _ resolve the situation with a decision on the reopening of the site to be taken on Monday. "Obviously, t1ie project has lost that time. We are committed to getting the support of the workers so that lost time can be made up as quickly as possible:' he said.
Eskom said last month that power supplies in South Africa would be tight for several years due to a lack of capacity until Medupi and Kusile are built, worrying the mining sector and other energy-intensive iiIdustries .. (Reuters) - --, . - --I
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