AFRICAN BUSINESS ROUND-UP: 12 - 18 May 2008

**Oneword** · 12th May 2008, 11:24 AM

AFRICAN BUSINESS ROUND-UP

On the general business and trade front, the Tanzania Revenue Authority has issued new regulations relating to security of goods in Tanzanian bonded warehouses that are awaiting re-export. Nigeria is to increase protection of seaborne trade from pirates. Zanzibar is to waive tax on rice. The Nigerian government has allocated funds for importing rice. Angola's Ministry of Agriculture and Rural Development is implementing several programmes to reduce the estimated 40% deficit in cereals. Ghana launched a smartcard payment and settlement system. Lonrho acquired 51% of African fresh produce group Rollex. Mozambique now offers business licences in a day under the new simplified licensing system. Rwanda is to import sugar from Egypt. Ethiopia is to establish an exchange for agricultural commodities. Kenya has lost its 4,000 tonne beef quota to Europe because of its failure to control animal diseases. The Malaria Consortium launched the third round of Innovation Grants for Malaria Advocacy in Africa and Asia. The government of Lagos State is offering incentives to attract investors to the Lekki Free Trade Zone in Nigeria.

In mining, South China Resources is to purchase a 70.5% stake in the Elof coal project, South Africa. Palabora Mining Company plans to build a pipeline in 2009 to pump magnetite slurry to a port in Mozambique. Great Basin Gold completed its acquisition of Rusaf Gold. Posco is to invest US$ 200 million in a South African manganese mine. Rockwell acquired the Middle Orange River diamond projects in South Africa. BHP is to invest US$ 975 million in Mpumalanga, South Africa. First Uranium to meet future production growth plans at its South African operations by installing power plants. Good Hope Diamonds sold two of its diamond mines. Central African Mining & Exploration acquired a stake in Copper Resources Corporation. Zambezi Resources provided several updates on its Zambian mining projects.

On oil and chemicals, Gazprom signed a joint venture agreement with the National Oil Corporation of Libya. China has agreed to offer Nigeria a loan of US$ 2,5 billion for infrastructure projects in the hope of gaining access to the country's oil resources. Tongaat Hulett is to resume production at its Zimbabwe ethanol plant. Tullow Oil plc announced that the Mahogany-2 well, which is being drilled to appraise the Jubilee field offshore Ghana, has intersected a significant column of light oil indicating a much greater presence of oil than previously believed. RWE Dea made a new oil discovery in the Sirte Basin of Libya. Eni and Sonangol made an oil discovery in deepwater Block 15/06, offshore Angola. Chevron confirmed first production from the deepwater offshore Moho-Bilondo project in the Republic of the Congo. Total sold 20% of its Taoudenni permits in Mauritania to Qatar Petroleum International. Engen Petroleum purchased a 60% share in Pizo Shell, Gabon. RWE Dea discovered gas and condensate in the Disouq Concession, Egypt.

Oando (OPL 236, Nigeria), Nexen (Usan, offshore Nigeria), Heritage Oil (Kingfisher-2, Block 3A, Uganda), Aminex (NW Tanan-1, West Esh El Mellaha, Egypt), Africa Oil / Range (Dharoor Valley, Puntland, Somalia), Hyperdynamics (Guinea), Tullow / Roc Oil (Banda, Mauritania), Sasol (offshore Mozambique), PA Resources (Block I, Equatorial Guinea), Heritage Oil (Kisangire and Lukuliro, Uganda) and PA Resources (Mer Profond Sud and Azurite, Congo) also provided updates on their African projects.

Turning to electrical power and telecommunications, African governments and investors plan to invest US$ 80 billion in the Inga hydroelectric project, situated on the Congo River in the Democratic Republic of Congo. This project, long in gestation, could, according to some experts, generate more energy than Europe currently consumes and will probably attract a horde of metals beneficiation companies squeezed out of the developed world by emission standards and high electricity tariffs. Meanwhile NGOs complain that local communities, including those likely to be displaced, are being excluded from the decision making processes. MST Technology Israel plans to construct a turnkey solar power station at Taun, South Africa.

Still on projects, Hulamin is to increase rolled products capacity 20% through a R 950 million production project. Uganda is to start exporting meat and is setting up meat processing factories in the four regions of the country. The Commonwealth secretariat is providing technical assistance to help Botswana to set up a modern free trade zone. Ethiopia is to build second dry port to ease congestion. The Angolan government is to asphalt over 4,000 kilometres of road by end 2008. The Forzi Sugar Company is starting operations in Cameroon. Dar es Salaam's container terminal is to be expanded at a cost of US$ 62 million. Construction of the free trade zone and industrial park in Nyandungu, Rwanda, is to start shortly. Mozambique is to commence an expansion project on its northern port of Pemba. South Africa's Transnet will spend R 16 billion on its capital expenditure programme for the year. Lonrho is to develop a bonded 'dry port' logistics centre in Angola.

On the subject of finance, the African Development Bank added US$ 1 billion to its agriculture portfolio, raised to US$ 4.8 billion, as part of a short-term plan to support African food production. The IFC and the government of Mozambique announced a $US 1 billion investment program to help the country's emerging tourism sector. The World Bank is providing US$ 6 million for Madagascar's railroads. The Global Partnership on Output-Based Aid granted US$ 5.25 million to improve access to water in Cameroon. The IMF approved US$ 66.2 million in emergency post-conflict assistance for Côte d'Ivoire. The EC launched a Euro 80 million renewable energy fund for developing countries. The World Bank approved US$ 40 million additional financing for Integrated Growth Poles Project in Madagascar. Britain initiated a US$ 800 million long-term aid programme to increase agricultural production in developing countries. .

Some newly announced African statistics which might prove useful: South Africa's headline inflation rate at March 2008 was 10,6%. Food prices in South Africa are up 15.3% year on year. New car sales in South Africa declined 2,8%. South Africa's net gold and foreign exchange reserves rose by 1.2 percent to $33.125 billion at the end of March 2008.

Turning to the African political front, the Zimbabwe Electoral Commission will soon (?!) announce a date for the presidential election run-off. Ethiopia and Benin held elections. A law panel is to investigate allegations of abuses in the management of the Nigerian oil sector under former president, Olusegun Obasanjo. Canada has started negotiation for a Foreign Investment Promotion and Protection Agreement (FIPA) with Madagascar and Tanzania.

Mbendi

**mindfactory** · 12th May 2008, 05:42 PM

The West African country fear negative effects for its sudden oil boom. After dicovering a second big oil field at the coast, the government try to curb the upcoming euphoric financial greediness.

Tullow Oil has reported a significant oil find in Ghana.

The Mahogany-2 well drilled to test the North Eastern up dip extension of the Jubilee Field has hit 63 metres of stacked oil bearing sands

So far the evidence is that the well is in communication with the Hyedua-1 well located 11 kilometres to the southwest. There was no evidence of a gas cap.

In London, Tullow Oil shares have enjoyed a 21% jump, or 158.5p to 918.5p. Unfortunately, the people of Ghana have not feel the change in live style at all.

President John Kufuor already quote:" Oil is not always a blessing, for some countries bad luck." What does he mean when in two years between 170 million and 1,38 billion barrels of oil, from both oil fields will be produced? Does it mean the poor will become poorer as it is the case in Nigeria, Angola, Chad and Equatorial Guinea?

Does this mean, that 15 Billion US $ will ever reach the population of Ghana or will it be another sell out to Canada and America?

Why could Norway provides a model on how to manage oil revenue and Namibians can not?

A seven-story office building in Oslo, landscaped with topiary and statues of acrobats, has become a magnet for economic policy makers from Beijing to Moscow.

They come to the headquarters of Norges Bank, the Norwegian central bank, to learn the secrets of the country's success in investing oil revenue without disrupting its own economy or foreign markets.

What makes the advice from Oslo valuable is Norway's record of managing $356 billion and earning returns that exceed its own goals while publishing regular reports on its holdings and performance.

What happened to the Kudu gas also explore by Tullow Oil? Does it only fill the pockets of the exclusive criminals in politics? Namdeb and its diamonds, Rossing and its uranium, Namibia with less then 2 million people, with 95% of the Namibian population live in absolute poverty. What a shame that our leaders in parliament are a bunch of liars and spineless thieves.

**Oneword** · 12th May 2008, 05:46 PM

Mindfactory,

Thanks for the addition!

BTW. The way I understand it, Kudu is not yet operational because the shareholders could not agree on the currency the gas would be sold at.

That is what I call a very feeble and unconvincing argument. Mindfactory may have more than just a point. He may have the whole argument!