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19 July (TBA) Zimbabwe to export diamonds
The Kimberley Process, the body overseeing the trade in "blood diamonds," has agreed that Zimbabwe can resume limited exports from new diamond fields in the east of the country.
Under the terms of the deal, Zimbabwe will be able to sell some stockpiles and may be able to resume full exports after a review of conditions at the Marange diamond fields in September.
The Kimberley Process suspended the diamond exports in November in response to allegations of atrocities committed by security forces at Marange.
There have been weeks of deadlock over the negotiations and the deal in Russia came only after Farai Maguwu, a Zimbabwean human rights activist, was released on bail earlier last week.
Maguwu is accused of providing false information about the diamond trade and was arrested after meeting a representative of the Kimberley Process, Abbey Chikane, on 3 June.
His continued detention scuppered attempts to reach a deal on Zimbabwe's diamond exports at a Kimberly Process meeting in Israel last month.
Campaigners said a crisis had been averted by a last-minute deal.
"The ball is now in Zimbabwe's court to make good on its promises and act to end one of the most egregious cases of diamond-related violence for many years," Annie Dunnebacke of Global Witness said in a statement.
"We fervently hope that the governments in the Kimberley Process will, for their part, hold Zimbabwe to its commitments in order to begin to restore the battered integrity of the scheme."
Zimbabwe Mines Minister Obert Mpofu said the country was "ready and willing" to work with the Kimberly Process.
The Zimbabwean army took over the Marange mines in 2008 and has since been accused of committing widespread abuses there - killing some 200 miners and forcing others to work in the mines.
Zimbabwe's army has denied the allegations.
Analysts say the diamonds from the Marange field could see Zimbabwe become one of the world's top six exporters and generate $1.7bn (£1.1bn) a year.
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30 May (TBA) Zimbabwe licences 4 newspapers
Four private daily newspapers in Zimbabwe have been granted licences to operate by a commission set up by the unity government to implement media reforms.
The Zimbabwean media is currently dominated by state-run newspapers.
One of the licences has been granted to the Daily News, a paper critical of President Robert Mugabe, which was closed down in 2003.
Mr Mugabe and Prime Minister Morgan Tsvangirai have been in a power-sharing government since 2008.
The Zimbabwe Media Commission (ZMC) was set up in December 2009 under the terms of the power-sharing deal to spearhead media reforms, including the licensing of new press, radio and TV outlets.
Currently, the independent press in Zimbabwe is subject to severe restrictions.
Commenting on the issuing of the licences ZMC's chairman Godfrey Majonga said: "We are here to allow Zimbabweans access to media."
In 2002, Mr Mugabe introduced tough media laws requiring journalists and newspapers to register with the government, with the threat of imprisonment for those who failed to do so an ever present reality.
Journalists could also be sent to prison for "publishing false news".
Journalists at the privately owned Daily News were arrested and the paper's printing press was bombed before the publication was finally shut down in 2003.
30 May (TBA) Request for lower mining levy
Zimbabwe’s Mines and Mining Development permanent secretary Thankful Musukutwa has asked the Finance ministry to slash the pre-exploration levy for new mining projects as the US$100 000 charged for Exclusive Prospective Orders (EPO) is inhibiting new investment in mining, especially under-capitalised local miners.
Last week the Chamber of Mines proposed a compromise in the government’s drive to force foreign firms to give 51 percent stakes to locals, saying 15 percent local shareholding for mines was enough.
Although power cuts and lack of funding slowed down recovery of the country’s mines – most of which closed in 2008 at the height of the economic crisis – the chamber says gold output will be significantly higher than last year’s 4.2 tonnes. At its peak, Zimbabwe produced about 29 tonnes of gold annually.
Impala Platinum’s Zimbabwe unit, Zimplats Holdings, is considering setting up the country’s first metals refinery, where it plans a US$500 million mine expansion.
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16 May (TBA) Nigeria, China in $23bn oil pact
Nigeria's state-run oil firm NNPC and China State Construction Engineering Corporation (CSCEC) have signed a $23bn (£16bn; 18bn euros) deal.
The two will jointly seek financing and credits from Chinese authorities and banks to build three refineries and a fuel complex in Nigeria.
Analysts say the project would add 750,000 barrels per day of extra refining capacity.
NNPC hopes the construction of new refineries will stem the flood of imported refined products into Nigeria.
Nigeria is the world's 12th-largest oil producer and the eighth-largest oil exporter. However, the country imports around 85% of its fuel needs because of the disrepair and mismanagement of its four state-owned refineries.
"We are about to deepen the existing technical and commercial relationships between China and Nigeria through the signing of a memorandum of understanding," said Shehu Ladan, head of NNPC.
The three refineries will be built in Bayelsa, Kogi and Lagos states, while a location has to be confirmed for the petrochemicals complex.
The Nigerian government has said that foreign companies must invest in developing Nigeria's infrastructure and economy first, before they can benefit from its oil and gas exports.
16 May (TBA) Zimbabwe bank faces collapse
The Zimbabwe Allied Banking Group (ZABG), one of the biggest banks in the country, is on the verge of bankruptcy following revelations of serious
financial mismanagement.
A due diligence report by Deloitte and Touche Corporate Finance and a verification report by the Reserve Bank of Zimbabwe (RBZ) shows that the bank is saddled with potential liabilities of more than$12-million due to alleged mismanagement of depositors' funds.
Auditor's report has revealed that ZABG splashed money on 132 luxury cars for top managers and $36,460 a month on food.
ZABG is an amalgamation of Royal Bank Zimbabwe Limited, Trust Bank Corporation Limited, and Barbican Bank Limited, which were forced into
curatorship in 2004 by the Zimbabwe central bank.
In 2005, the Reserve Bank merged the three into ZABG.
Recently it was decided to return the three banks' assets to the original owners, although the deal has been stalled by the current crisis.
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07 May (TBA) Russian forces free oil tanker crew
Russian forces have freed the crew of a Russian oil tanker seized by Somali pirates off the coast of Yemen, in a dramatic rescue operation.
Reports said Russian forces based on the warship Marshal Shaposhnikov approached the tanker, with 23 Russian crew on board.
The Russian forces then boarded the Moscow University tanker, freeing the crew who had locked themselves in a safe room after disabling their ship.
As they did so, the pirates opened fire, sparking a shoot-out.
Before boarding the tanker, the Russian forces apparently carried out reconnaissance from a helicopter.
Ten pirates are reported to have been captured, while one was killed during the gun battle.
According to Col Alexei Kuznetsov the Russian defence ministry spokesman, the captives are being held aboard the tanker and will be transferred to Moscow to face charges.
"Pirates have released the tanker... All crew on board the tanker are alive and well," a spokeswoman for the Russian shipping company that owns the tanker, Novoship, told the press.
Novoship praised the operation as one carried out "in the best traditions of the Russian naval mariners".
The decision to free the ship was made knowing "that the crew was under safe cover inaccessible to the pirates", Novoship added.
Analysts say although there are dozens of warships patrolling the Indian Ocean and the Gulf of Aden, it is rare for rescue efforts to be launched once pirates have boarded a vessel as it is often felt that intervening would endanger the hostages.
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01 Apr (TBA) Drugs for curing sleeping sickness
A team of British and Canadian scientists believe they have identified a potential treatment for sleeping sickness, the killer disease that infects about 60,000 people in Africa a year.
The experts who carried out the research in Dundee were backed by partners at the University of York in England and the Structural Genomics Consortium in Toronto, Canada.
They say drugs which could potentially attack an enzyme the parasite causing the illness needs to survive, could be ready for human clinical trials in about 18 months.
Sleeping sickness is spread by the bite of a tsetse fly,which ingests a parasite that attacks the central nervous system.
If untreated, the parasite moves to the spinal column and brain, resulting in mental confusion and eventual death.
The "breakthrough" came at the University of Dundee in Scotland, where scientists were funded to research diseases neglected by major drugs companies.
Speaking to the BBC the director of the programme, Professor Paul Wyatt said: "This is one of the most significant findings made in recent years in terms of drug discovery and development for neglected diseases."
Furthermore, Professor Wyatt said the research, published in the journal Nature, represented "significant strides" in the development of a full blown drug against the disease.
The World Health Organization estimates there are between 50,000 and 70,000 cases of the disease a year, with a further 60 million people at risk of infection.
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21 Feb (TBA) IMF restores Harare voting rights
The International Monetary Fund (IMF) has agreed to restore Zimbabwe's voting rights after a seven-year suspension for unpaid debts.
But the fund said the country was still ineligible for loans until it had paid off more of the $1.3bn (£841m) it owes to creditors.
In the meantime, Zimbabwe can take part in IMF decision-making.
The move recognises the country's efforts to repair its economy and improve relations with donors.
The IMF said it had taken the decision to restore Zimabawe's voting rights after a request from the county's Finance Minister Tendai Biti.
The fund suspended Zimbabwe's voting rights in 2003 over disagreements with the previous government of Mugabe.
The move comes just days after the European Union renewed targeted sanctions against Zimbabwe for another 12 months, citing lack of progress by the new unity government.
21 Feb(TBA) SA sees hope in AIDS treatment
Anti-retroviral treatments (ARVs) and universal testing could stop the spread of Aids in South Africa within five years, a top scientist says.
Dr Brian Williams says the cost of giving the drugs to almost six million HIV-positive patients in the country would be $2-3bn per year.
Only about 30% get the life-saving drugs, he said, but early detection and treatment would prevent transmission.
This, he said, should be complementary to the search for an Aids vaccine. An effective vaccine, he said, was still a long way away.
Dr Williams, a leading figure in the field of HIV research, is based at the South African Centre for Epidemiological Modelling and Analysis (Sacema) in Stellenbosch.
Speaking at at the annual meeting of the American Association for the Advancement of Science (AAAS) in San Diego, he said 30 million people around the world were infected with HIV - with two million dying each year.
"The tragedy is that the disease continues unabated. The only real success story is the development of these extremely effective drugs that keep people alive and reduce their viral load by up to 2,000 times. They become close to non-infectious.
Dr Williams argued that by the time people started ART, they had infected "most of those that they would have infected anyway".
"We've been using drugs to save lives, but not stop the infection," he said. "It's time to look beyond that."
He said that if clinical trials started now, all of the HIV positive people in South Africa could be on ARV treatment within five years.
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18 Feb (TBA) Uganda oil deal slated
Uganda's environment is being put at risk by a secret deal between the government and a UK oil firm, according to a lobby group, Platform.
The pressure group Platform said Tullow Oil had framed a deal with no provision for the environmental or social impact of oil extraction in Uganda.
However, Tullow Oil said the deal was standard and that its company practices would ensure environmental protection.
Oil extraction has been controversial in other African countries. In Nigeria, several militant groups claim to be fighting for a fairer share of oil wealth for local people.
Platform say they want Uganda to learn the lessons of the other countries and renegotiate their deal with Tullow.
"There are no penalties or fines for environmental damage caused in any way - including a major pipeline project through Kenya," said Platform's Taimour Lay.
He told the BBC's Network Africa programme there was a specific clause in the deal allowing the firm to practise oil flaring - whereby excess gas is burned off.
Gas flaring is widely practised - particularly in Nigeria - but is hugely damaging to the local environment and is said to be a major cause of greenhouse gases.
Tullow's Uganda manager, Brian Glover, told Network Africa the firm had "no policy that would allow us to flare gas" and said there was "no expectation" that gas flaring would be practised in Uganda.
Uganda's Minerals Minister Peter Lokeris has previously promised that the oil extraction would respect the environment.
He said there would be an "abundance" of officials from the country's National Environment Management Authority to oversee the process.
18 Feb (TBA) SA World Cup boost to economy
South Africa expects its economy to grow by 2.3% this year, helped in part by the football World Cup in the summer.
The prediction of a return to economic expansion after last year's recession was given by Finance Minister Pravin Gordhan as he delivered the budget.
Gordhan projected that the World Cup would add 0.5% to the country's 2010 economic growth, led by visiting football fans' spending.
The budget comes as South Africa is mired in an overall unemployment rate of about 25%, and an increasing gap between the rich and poor.
Gordham said the government aimed to reduce its budget deficit in the medium term, but its immediate focus was on helping the continuing economic recovery.
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16 Feb (TBA) Eritreans march on UN sanctions
Hundreds of UK-based Eritreans will be travelling to Geneva next week to participate in a Europe-wide demonstration against the UN imposed sanctions on Eritrea.
A press statement by the campaigners says a large peaceful demonstration will be held in Geneva outside the United Nations Office on Monday the 22nd of February 2010 from 13:00 to 18:00pm to oppose the sanctions imposed on Eritrea by the UN Security Council on the 23rd of December 2009 under Resolution 1907.
“This Euro-wide demonstration that will be held in Geneva is part of a world wide demonstration which will be held in San Francisco, Washington DC and Melbourne in the same day,” says the press statement.
“The demonstration will be attended by members of Eritrean communities in Europe, communities from horn of Africa and peace loving friends of Eritrea to express their rejection of this unfair and unjust resolution.”
The organisers said they expect thousands of people from all over Europe to converge on Geneva and that hundreds of British Eritreans will be travelling to Geneva by coaches.
The demonstration will start at Park of Cropettes at 13:00 hrs and will then move to the UN Office Avenue De La Paix. A petition signed by the demonstrators will be handed in to the UN
“The United Nations Security Council imposed sanctions on Eritrea at the behest of the US on the basis of fabricated accusations that Eritrea is offering support to elements that oppose the Transitional Federal Government of Somalia and that Eritrea has failed to comply with Security Council requests to engage with Djibouti to resolve a border dispute,” the press statement says. “We strongly feel that the sanctions are unjust and denounce it for the following reasons:
The accusations labelled against Eritrea by the Somali Arms Monitoring Group which was used as a basis for the sanctions have been proved to be fabricated.
Resolution 1907 (2009) was passed despite a telling absence of credible evidence to support the allegations that were made against Eritrea. The consistent request by the government of Eritrea for hard evidence has been ignored;
The UN Arms Monitoring Group made equal allegations against eight other countries in violating the Somali Arms Embargo, but only Eritrea has been targeted;
The nature of the allegation against Eritrea has moved from “providing arms” to the insurgency to “providing political, financial, and logistical support”, yet the sanctions include arms embargo;
On the Djibouti issue, Eritrea’s stated position is that there should be bilateral efforts at clarifying and solving any issues. On failure of bilateral efforts, Eritrea has clearly expressed a willingness to resolve any outstanding matter legally.
The UN Security Council has failed to shoulder its responsibility of taking action against Ethiopia for violating the final and binding legal decision of the Permanent Court of Arbitration and illegally occupying Eritrea’s sovereign territory to this day
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10 Feb Sub-standard malaria drugs in Africa
Africans suffering from malaria may be getting sub-standard treatment, according to a study by US experts.
A report produced by the Pharmacopeia group found that between 26% and 44% of anti-malaria drugs in Uganda, Senegal and Madagascar were of poor quality.
The group, which conducted the study for the World Health Organization, said low-grade drugs were being used in both public and private health practices.
Some 90% of malaria deaths in the world occur in Africa.
The experts subjected 200 samples of anti-malaria drugs to quality-control testing in a US laboratory.
They found 44% of the drugs from Senegal failed the testing, followed by 30% from Madagascar and 26% from Uganda.
Patrick Lukulay, director of the US government-funded Pharmacopeia programme, said it was a "disturbing trend".
"It is worrisome that almost all of the poor-quality data that was obtained was a result of inadequate amounts of active [ingredients] or the presence of impurities in the product," he said.
The particular problem they identified was with artemisinin-based drugs. The chemical is one of the few affordable and effective treatments for malaria.
WHO's malaria programme chief Robert Newman said low-quality versions of the drug could increase resistance because they would not kill all of the parasites.
The researchers also studied drugs from seven other countries - Cameroon, Ethiopia, Ghana, Kenya, Malawi, Nigeria and Tanzania - but have not yet released data from those nations.
Ghana had already withdrawn more than 20 drugs from the market after seeing initial results.
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07 Feb (TBA) Zimbabwe strike action looms
Zimbabwe's civil servants are expected to embark on a nationwide strike on Monday after last-ditch efforts between the unions and the ministry of Public Service failed to agree a pay deal.
Public Service Minister Eliphas Mukonoweshuro told the press over the weekend that the government's new offer had been rejected by workers because it was "insufficient".
Civil servants earn on average a paltry $150 (R1100) a month. They are demanding as much as $630 (R4900) a month.
Teachers, doctors, nurses and other civil servants told the fragile unity government last Friday that they would down tools.
Schools, hospitals, government offices and other state services such as courts are expected to shut down on Monday and it is not known how long the strike will last.
Analysts said the Zimbabwean government has been financing expensive overseas jaunts for politicians, while salaries for civil servants remained depressed.
Last year, the government spent $20-million (R156-million) on overseas trips, compared to the $4-million (R31-million) it offered civil servants.
The government is the biggest employer in Zimbabwe with about 150 000 employees.
Reports in the country say thousands of underpaid civil servants have decided to join the stayaway - regardless of consequences. The strike comes at time when the unity government was at its weakest.
Meanwhile, a report released last week by a Russian investment house said failure by Zimbabwe's coalition partners to solve outstanding issues from their power-sharing deal is holding back foreign investors from returning to the country.
The report by Renaissance Capital, titled "Zimbabwe: 2010 outlook: Cementing the turnaround" says the global political agreement (GPA) signed by President Robert Mugabe, Prime Minister Morgan Tsvangirai and Deputy Premier Arthur Mutambara leading to formation of the government of national unity last February was the best viable option for the country.
But Renaissance said failure to implement the deal in full has become an impediment to investors.
"Politics remains the key determinant of external funding for government - specifically, how quickly the respective parties can resolve their
outstanding issues," the report said, adding; "Political tensions have also
limited the inflow of funding from external sources, specifically the West, however Zimbabwe did receive its general allocation from the IMF ($510mn), under liquidity support measures to combat the global credit crunch."
The investment house does not see the unity government completing the constitution-making process in time to hold elections by 2011. Renaissance also feels that the country's political environment is still volatile.
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 21 Jan (TBA) Chinese economy grew 8.7%
China’s economy expanded by 8.7% in 2009, exceeding even the government's own initial expectations, according to reports.
The pace of change increased as the year went on, with growth in the final quarter of 2009 increasing by 10.7% from the same period a year earlier.
China is now on course to overtake Japan and become the world's second-biggest economy.
China is expected to become the world's biggest economy in 2030.
Analysts say Japan, which is expected to announces its latest quarterly gross domestic product (GDP) figures next month is likely to have contracted by about 6% in 2009.
Jim O'Neill, chief economist at Goldman Sachs, said that China had come up with "a very smart policy stimulus" and that some aspects of the financial crisis may not have been a bad thing.
In an interview with the BBC O'Neill said: "In November 2008, they came up with a quick, aggressive fiscal and monetary response which has worked. They have replaced exports with domestic demand, both consumption and investment... China has become more important as America [has become] less, which is what the world needs."
Furthermore, O'Neill said part of the reason behind the global crisis was that the world had become dependent on the US consumer, and the realisation of that had now forced countries to stand up for themselves.
"The most important one is China and their economy is now being driven by their own domestic economy, which will not only be increasingly important for them but important for everyone else including - directly and indirectly - people in Britain," he said.
China's GDP announcement was made by Ma Jiantang, head of the National Bureau of Statistics. He said China had faced "severe difficulties" in 2009, but its economy has now recovered and was moving in the right direction.
China, which has expanded its trade links with Africa was hit by the economic crisis during late 2008 and early 2009, like other countries across the world. Factories closed and workers were laid off.
Analysts say China’s economy recovered with the help of a massive government stimulus package but now there are signs it is expanding too quickly.
Meanwhile, the World Bank has said that the global economic recovery will slow later this year as the impact of government stimulus policies wanes. It added that the poorest countries - those that rely on grants or subsidised lending - may require an additional $35bn to $50bn in funding just to sustain pre-crisis social programmes.
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17 Jan (TBA) SA shark attack beach reopens
Cape Town has reopened its beaches which were closed after a Zimbabwean man was killed by a great white shark off the South African coast.
Eyewitnesses said the shark flipped in the air as it sunk its teeth into Lloyd Skinner, a 37-year-old Zimbabwean who lived in Mozambique, who was swimming 100metres offshore while his wife relaxed on the beach.
Rescue workers said the shark attacked Mr Skinner three times off Fish Hoek beach.
Onlooker Gregg Coppen posted on Twitter: 'Holy s***. We just saw a gigantic shark eat what looked like a person in front of our house.
'That shark was huge. Like dinosaur huge... longer than a mini-bus.'
Another onlooker, Kathey Geldenbuys, said she saw 'what looked like a five metre [long] shark rising from the water and biting Mr Skinner.
False Bay, in which Fish Hoek is located, has one of the highest densities of great white sharks in the world.
Lifeguards shouted warnings to other swimmers in the sea to get ashore immediately.
Mr Skinner’s wife, who was sunbathing at the time, was given counselling following the deadly attack.
Ian Klopper from the National Sea Rescue Institute, said: 'I would be amazed if we found anything now. The shark attacked him three times. It didn’t bite him and let him go. It came back and carried on eating.'
Cape Town has issued a warning of increased shark sightings in the area and urged bathers to exercise caution.
"Although the beaches have been declared safe, both Shark Spotting and lifesaving services will continue," the city said in a statement.
It said bathers should remain in groups and not go further than waist-deep.
Rescue workers scoured the Fish Hoek coastline for two days searching for the body of the 37-year-old engineer but by Thursday, nothing had been found.
Eight sharks were sighted near Fish Hoek at the weekend by the city's Shark Spotters service, which has recorded 570 sightings over six years.
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13 Jan (TBA) US firms fight $400bn SA lawsuit
The ghost of South Africa’s apartheid system has reared its head in a US court appeal by multi-national companies seeking to dismiss a case against them over their role during the apartheid-era.
US companies including Daimler, General Motors and IBM are facing a lawsuit filed against them several years ago by black victims of white minority rule.
However, the companies are questioning whether US courts have jurisdiction over events that took place in other countries.
Lawyers representing black victims of apartheid laws have been seeking up to $400bn (£248bn) in compensation.
The plaintiffs bringing the lawsuit argue that the corporations violated human rights by assisting South Africa's former apartheid government.
They have argued that the companies knew the apartheid-era government would use their products.
Last year a US court said the case could go ahead against a limited number of companies under the Alien Tort Claims Act, an old law allowing foreigners to sue in the US courts.
But German automaker Daimler said on Monday the charges were "inadmissible and unfounded."
A spokeswoman for the group was quoted by AFP news agency as saying that "no American party was implicated and nothing took place on American territory", and that the company had operated with the backing of the German government of the time.
South Africa ended its opposition to the case in September, shortly after President Jacob Zuma took office.
The previous president, Thabo Mbeki, had opposed the case on the grounds that it might put off foreign investors.
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08 Jan (TBA) Sudan peace deal ‘may collapse’
Ten international aid groups say a 2005 peace deal in Sudan is on the verge of collapse and that the world must act now to prevent renewed conflict.
The agencies blamed a "lethal cocktail" of rising violence, chronic poverty and political tensions.
The oil-rich south is due to hold a referendum on independence in 2011.
The peace deal five years ago ended a 22-year civil war that left some 1.5 million people dead. The region remains one of the poorest areas of the world.
The peace deal saw President Omar al-Bashir's northern National Congress Party (NCP) enter government with the Sudan People's Liberation Movement (SPLM) rebels from the south.
But tensions are again rising between the former enemies in the run-up to the referendum and April's general election - the first nationwide poll for 24 years.
The SPLM has accused the NCP of stirring up ethnic violence in the south to destabilise the region ahead of the polls - charges the northern party denies. More people died from violence in southern Sudan last year than in Darfur.
In their report, the aid agencies cite disputes over Sudan's oil resources, April's election and the independence referendum as potential flashpoints. Analysts say a return to conflict would have devastating consequences extending far beyond southern Sudan.
Meanwhile, the UK says it has pledged £54m ($87m) in aid to help rebuild southern Sudan and prepare for April's elections.
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10 Dec (TBA) China bids $50bn for Nigerian oil
China is bidding for a stake in the Nigerian oil industry with a $50 billion offer to the Federal Government, to enable it acquire 49 per cent, according to reports in Nigeria.
This translates to around six billion barrels in oil reserves.
According to Emmanuel Egbogah the Presidential Adviser on Energy Matters, several state-run Chinese oil firms, including the China National Offshore Oil Corporation (CNOOC) are currently in talks with the Nigerian government to advance China’s interests.
Industry sources said some of China’s business proposals include incursions into some oil blocks held by Royal Dutch Shell.
Egbogah, said the deal which was proposed in June could help Nigeria fund its joint ventures with oil majors.
"Chinese people are not buying fields ... they want to acquire reserves in Nigeria. Specifically the application was to acquire reserves of six billion barrels which we are currently discussing," Egbogah said. "They are prepared to spend as much as $50 billion," he told reporters.
Furthermore, Egbogah said Nigeria’s inability to fund its joint ventures with International Oil Companies (IOCs) had negatively impacted capital expenditure requirements for increasing production levels from the existing joint venture fields.
He also disclosed that Nigeria's funding shortfall had steadily increased to $6 billion from a few million dollars when joint venture arrangements were created in the early 1970s.
The funding shortfall has forced Nigeria to consider alternative ways to bridge the gap. Shell, ExxonMobil and Total have all had to provide billions of dollars in bridge financing to the Nigerian National Petr-oleum Corporation (NNPC) to plug funding shortfalls.
Egbogah however affirmed that the Petroleum Industry Bill (PIB), expected to be passed into law this month, would address a lot of problems faced by the industry.
Last September Nigeria’s Minister of State for Petroleum, Odein Ajum-ogobia, said China would not be given all the reserves it was seeking.
However, some observers believe that the NNPC could sell stakes in joint ventures with existing oil partners if Beijing offered the right price.
Sources said other western oil companies, including Shell, Chevron and Total, have commenced negotiation on their oil licences as well as new deals ahead of the passage of the PIB.
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22 Nov (TBA)Court seizes $350m from Abacha
A Swiss court has ordered the seizure of $350m (£212m) in assets from Abba Abacha, the son of Nigeria's former military ruler, General Sani Abacha.
Abba was convicted of being a member of a criminal organisation and given a suspended custodial sentence.
Switzerland began investigating the Abacha family in 1999 and has so far handed back about $700m to Nigeria.
Nigerian state lawyers believe Sani Abacha, who ruled from 1993 until his death in 1998, may have stolen $2.2bn.
The Swiss authorities pursued Abba for six years before extraditing him from Germany in 2005.
"The examining magistrate sentenced him to a suspended jail term, and ordered the confiscation of his assets of $350m," Geneva canton's justice office said in a statement.
Meanwhile, the European Commission has signed a $1bn (£602m) development pact with Nigeria, aimed at tackling corruption and promoting peace.
A substantial amount of the funding will be spent on resolving conflict in the oil-rich and crime-plagued Niger Delta, the EU's development chief said.
The money will also target electoral reform and improving human rights.
Over the past few months, thousands of Nigerian militants have given up their weapons in an amnesty deal offered by the government in return for the promise of education and jobs.
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19 Nov (TBA) Africa population hits billion mark
The number of people in Africa has passed the one billion mark, according to the UN Population Fund.
UNPF's Executive Director Thoraya Obeid told the press that the annual figures showed the continent's population had doubled in the last 27 years.
"Africa countries are all growing fast... because there is large number of women who have no access to planning their families," she said.
The populations of Nigeria and Uganda were growing the fastest, she said.
"It's an African phenomenon of a large growing population and a large percentage of young people in the population," she told the BBC's Network Africa programme.
In its State of the World Report, the UNPF says the world's population currently stands at about 6.8 billion. Africa's population is estimated to reach 1.9 billion by 2050.
Meanwhile, another UNPF report says women in developing countries will be the most vulnerable to climate change.
The agency said there was a disproportionate burden on those women and called for greater equality.
They do most of the agricultural work, and are therefore affected by weather-related natural disasters impacting on food, energy and water, it said.
The report suggested family planning, reproductive healthcare and "gender relations" could influence how the world adapts to rising seas, worsening storms and severe droughts.
"[There] are fundamental questions about how climate change will affect women, men, boys and girls differently around the world, and indeed within nations, and how individual behaviour can undermine or contribute to the global effort to cool our warming world," Thoraya Ahmed Obaid said.
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08 Nov (TBA) China pledges $10bn to Africa
China has pledged to give Africa $10bn (£6bn) in concessional loans over the next three years.
Chinese Premier, Wen Jiabao, made the announcement at a summit in Egypt.
The Chinese leader is attending a two-day forum on China-Africa cooperation in Sharm el-Sheikh, attended by officials from 50 nations.
"We will help Africa build up financing capacity," Wen told the summit.
Several heads of state and government are attending the meeting, including the Presidents of Sudan and Zimbabwe.
Egypt's President Hosni Mubarak inaugurated the forum, the fourth of its kind, and spoke of "peace, security and growth," and of "boosting cooperation between China and Africa."
Wen also said China is planning to create environmental programmes for Africa, including 100 clean energy projects.
The West has previously accused China of plundering Africa's natural resources - to fuel its booming economy - and of overlooking the human rights records of some governments they do business with.
In the run up to the summit, China's state owned Global Times newspaper wrote "The West is envious of China and Africa drawing closer," and quoted one Chinese Africa expert as saying "Europeans view Africa as their own backyard."
China pledged $5bn (£3bn) of assistance at the last cooperation summit in Beijing in 2006, and signed agreements to relieve or cancel the debt of more than 30 African countries.
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 01 Nov (TBA) UK refutes ransom demands
The UK government has insisted it will not make a ransom payment to Somali pirates who kidnapped a British couple last week.
Paul and Rachel Chandler, (pictured) aged 59 and 55 and from Kent, were taken hostage by gunmen as they sailed their yacht in the Indian Ocean early on 23 October.
A ransom demand of $7m (£4.3m) was made in a phone call to the BBC on Friday.
The UK Foreign Office said the couple were "blameless tourists" and that no payment would be made nor advice given to relatives on how to make a ransom payment.
A spokesman for the Foreign Office added: "We are aware of reports that a ransom demand of $7m has been made. [Her Majesty's Government] HMG's policy remains clear: We will not make substantive concessions to hostage takers, including the payment of ransoms."
The Chandlers, of Tunbridge Wells, had been travelling to Tanzania from the Seychelles in their yacht which was later found abandoned in international waters.
In the phone call to the BBC one of the pirates said: "If they do not harm us, we will not harm them - we only need a little amount of seven million dollars."
Speaking to the BBC Rob Macaire, British High Commissioner to Kenya said: "We are not in direct contact with whoever is holding the Chandlers. Our main concern is to make them understand that what they are doing is entirely unjustified and that they should release the Chandlers immediately and unconditionally."
Reports say armed pirates boarded the Chandler's yacht, the Lynn Rival, in the Indian Ocean while they slept.
Mr Chandler's brother-in-law Stephen Collett has previously insisted that the couple are "not rich people" and that most of their money is tied up in their yacht.
In an interview with the BBC, a local Somali official said through a translator that he believed a number of groups were involved in handling the couple.
He said the pirates had "many cars" and had hired extra people to help them. He added that divisions had emerged among the groups and while all wanted a ransom paid, others wanted the release of pirates recently detained by European Union warships.
In a phone call last Thursday, the Chandlers said they were first moved from their yacht to a container ship, the Kota Wajar, which had also been seized by the pirates.
It is thought they were then moved to another ship anchored off the eastern coast of Somalia on Friday.
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11 Oct (TBA) Congo: no foreign trips decree
President Denis Sassou Nguesso of Congo has stopped ministers and senior civil servants from going on foreign trips, to save money.
Presidential adviser Ernest Ndalla told the press that a decree from President Nguesso says only "urgent" trips would be allowed until the end of the year, and that government officials could not be sent on foreign trips simply for their "pleasure".
The Republic of Congo is one of sub-Saharan Africa's main oil producers, though 70 percent of the population lives in poverty. Oil is the mainstay of the economy and in recent years the country has tried to increase financial transparency in the sector.
"There has been an inflation of trips by ministers and senior civil servants," Ndalla said.
He said all proposed trips would have to be co-ordinated and only those deemed "profitable" would be approved.
Analysts said Congo is trying to qualify for debt relief from donors and that the travel ban could be intended to prove that the government is trying to cut costs.
11 Oct (TBA) Nigeria tanker explosion kills 70
At least 70 people were burnt to death in Nigeria when a fuel tanker exploded, setting fire to five packed minibuses in the southern state of Anambra.
Nigerian officials said the tanker overturned after it hit a pothole on Friday, sparking the massive blaze. Other reports said the death toll could rise as the charred remains of the victims were recovered from the minibuses.
A transport official warned that more accidents were likely if nothing was done to improve Nigeria's road network.
"If something isn't done quickly, tragedies like this will happen again," Ben Ekenna of the Federal Road Safety Commission was quoted as saying in local media reports.
He said several other people were badly wounded in the accident and were taken to local hospitals.
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25 Sep (TBA) Horn of Africa needs food aid - WFP
More than 20 million people in the Horn of Africa need food aid because of two years of poor rainfall, according to the UN's World Food Programme (WFP).
WFP says cuts in its funding have made it more difficult to feed people across Kenya, Somalia, Eritrea, Djibouti and Ethiopia and that congestion in Djibouti's port has been holding up the flow of relief supplies.
An estimated 14 million people in the region were said to need food aid last year.
The Ethiopian government and WFP are using ports in Sudan and Somalia's breakaway region of Somaliland to reduce the reliance on Djibouti.
Analysts say the WFP is particularly concerned about Eritrea because it cannot get any reliable information. The agency says it cannot collect data because of movement restrictions and work permits not being issued.
Furthermore, WFP says it is concerned that malnourished children and pregnant women are not getting the help being offered across the rest of the region.
25 Sep (TBA) Somali pirates hijack ship
Somali pirates have reportedly boarded a ship heading for Mogadishu harbour and shot dead its Syrian captain. Three crewmembers were reportedly also injured in the violence.
Somali officials say the captain had apparently refused the pirates' demand to turn the ship away from the port.
Analysts say this is believed to be the first such attack so close to the Somali capital. Pirates normally launch their raids further north, especially around Eyl.
Further reports say African Union peacekeepers and Somali security forces intervened and rescued the Panama-flagged ship.
The AU mission is in charge of security at the Mogadishu port.
Somalia's Minister for Ports Abdiasis Hassan told the press that normally police are sent out to escort commercial ships into port. But he said this time the pirates were already on board and opened fire, injuring one policeman.
The port is used to bring in food aid and military supplies to the Somali capital.
In the absence of any effective national government since 1991, pirate gangs have set up in parts of Somalia, especially the semi-autonomous region of Puntland.
International navies have been deployed to protect ships in the Gulf of Aden, one of the world's busiest shipping lanes. The AU peacekeepers are helping to protect the UN-backed government, which only controls parts of Mogadishu.
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10 Sep (TBA) Wings faster than broadband
A South African pegion named Winston has proved that a bird can deliver data faster than broadband - the Internet system on which much of the world now relies on in the exchange of information.
A Durban IT company pitted an 11-month-old bird armed with a 4GB memory stick against the ADSL service from the country's biggest web firm, Telkom.
Winston took two hours to carry the data 60 miles - in the same time the ADSL had sent 4% of the data.
South Africa’s Telkom said it was not responsible for the firm's slow internet speeds.
Reports in South Africa said the idea for the race came when a member of staff at Unlimited IT complained about the speed of data transmission on ADSL. He said it would be faster by carrier pigeon.
"We renown ourselves on being innovative, so we decided to test that statement," Unlimited's Kevin Rolfe told the press.
Winston took off from Unlimited IT's call centre in the town of Howick to deliver the memory stick to the firm's office in Durban.
According to Winston's website there were strict rules in place to ensure he had no unfair advantage. They included "no cats allowed" and "birdseed must not have any performance-enhancing seeds within".
The firm said Winston took one hour and eight minutes to fly between the offices, and the data took another hour to upload on to their system.
According to Rolfe the ADSL transmission of the same data size was about 4% complete in the same time.
The story of the pegion versus broadband gripped thousands of South Africans, some of whom followed the race on social networking sites Facebook and Twitter.
"Winston is over the moon," Rolfe said after the pegion had proved a point. "He is happy to be back at the office and is now just chilling with his friends."
Meanwhile, Telkom maintains that it could not be blamed for slow broadband services at the Durban-based company.
"Several recommendations have, in the past, been made to the customer but none of these have, to date, been accepted," Telkom's Troy Hector said in an e-mail.
South Africa is one of the countries hoping to benefit from three new fibre optic cables being laid around the African continent to improve internet connections.
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31 Aug (TBA) Africans under siege in Moscow
Nearly 60% of black and African people living in Russia's capital Moscow have been physically assaulted in racially motivated attacks, says a new study.
Africans working or studying in the city live in constant fear of attack, according to the report by the Moscow Protestant Chaplaincy.
Russia has been plagued by a series of racially motivated attacks, some of them fatal, in recent years.
Between January and October last year 113 people were killed in racist attacks in Russia and 340 were wounded, according to the Moscow Human Rights Bureau.
Officially around 10,000 Africans are estimated to be living in Moscow, but far more are believed to live there illegally - many as economic migrants.
A quarter of 200 people surveyed said they had been assaulted more than once. Some 80% had been verbally abused.
But the number of assaults was down from the MPC's last survey in 2002.
The report's clear conclusion was that Africans living in Russia exist in a state of virtual siege.
Many of the African respondents said they avoided using the Moscow metro and were also careful to avoid crowded public places. Others said they didn’t go out on Russian national holidays or on days when there were football matches
Many of the attacks on Africans were pre-meditated and extremely violent, according to the report.
One Nigerian migrant interviewed by the BBC had been repeatedly stabbed in the back and then shot.
Another man said his attacker had attempted to remove his scalp.
In December 2008 seven racist skinheads who carried out 18 brutal murders in Russia's capital Moscow were sentenced to jail terms of between six and 20 years.
The Moscow Protestant Chaplaincy is an English-speaking interdenominational Christian congregation that has ministered to Moscow's foreign community since 1962.
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28 Aug (TBA) Nigeria nets $170m from debtors
Nigerian police say they have recovered $170m (£105m) from wealthy debtors who owe money to five banks.
The figure represents only one-thirtieth of the billions the fraud squad want to track down.
Earlier this month, Nigeria's central bank was forced to bail out financial institutions that were close to collapse because of bad debts.
Reports in Nigeria say sixty eight of Nigeria's wealthiest people are already in police custody - just some of the debtors the central bank has accused of failing to pay back loans.
They belong to the elite of Nigeria's business world, but the police are refusing to name them. It is not yet clear if they will all be charged, and if so, with what.
The central bank here has published a list of people that it says defaulted on big debts to the banks.
The police have been threatening to arrest the debtors if they do not return the money. Also in police custody are 16 bank executives - those who gave the loans in the first place. They lost their jobs in a mass sacking by the central bank governor after he carried out an audit of the banks.
Nigeria’s central bank governor, Lamido Sanusi, who is currently in London meeting financiers and foreign investors said the amounts of money involved in the scandal are huge. He has had to embark on a tour to reassure the rest of the world about Nigeria's banks.
Analysts said by the end of this week, it is expected that the former CEOs of four Nigerian banks will be arraigned in court.
However, one observer said it seems likely that many of them will never be charged or taken to court and that their cases may end in plea bargains, backdoor deals and bribes.
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28 Aug (TBA) Kenya drought kills 100,000 cattle
Drought and subsequent lack of pasture is estimated to have killed more than 100,000 cattle across Kenya.
In Kenya's markets food prices have increased, as the poor harvests have led to a shortage of staple foods such as white maize.
Analysts said due to the shortage in the region, prices are likely to climb higher, despite the fact that on the world market prices are much lower than last year.
In some of the markets across Kenya the maize price has doubled over the past year.
The number of people in need of food aid in the country has now shot up from 2.5 to 3.8 million. Kenya's national grain reserves currently holds enough food for less than two months. This comes after the Kenyan government was accused of involvement in a maize scandal in which grain was being sold to Sudan.
The World Food Programme has appealed for $230m (£141m) to provide emergency food assistance over the next six months.
28 Aug (TBA) Banana disease hits Africa
Food supplies in several African countries are under threat because two diseases are attacking bananas, according to food scientists.
Crops are apparently being damaged from Angola through to Uganda - including many areas where bananas are a staple food.
Experts are urging farmers to use pesticides or change to a resistant variety of banana where possible. Scientists have been meeting in Tanzania to decide how to tackle the diseases, which are spread by insects.
The scientists, from the Consultative Group on International Agricultural Research (CGIAR), issued a statement saying "drastic and expensive control measures" were needed.
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15 Aug (TBA) Heads of 5 Nigerian banks sacked
The Nigerian central bank has injected 400bn naira ($2.6bn) into five banks and sacked their managers.
The five institutions account for 40% of banking sector credit in Nigeria.
Governor Lamido Sanusi said Afribank, Finbank, Intercontinental Bank, Oceanic Bank and Union Bank would be run as normal until new investors were found.
The move was unprecedented in Nigeria, and saw the naira trend down 2% to 156.9 versus the dollar.
Addressing the press in Nigeria Sanusi said the five banks had accounted for almost 90% of exposure to the central bank's so-called discount window, which allows banks to borrow in the short-term from the central bank to meet their needs.
"The excessively high level of non-performing loans in the five banks ... was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to credit risk management practices," he said.
Sanusi said the central bank had been obliged to act as the five banks were undercapitalised and posed a risk to the entire banking system.
"The banks have lost their money in bad loans," Sanusi told reporters in Lagos. "We have questions about the management, so we have put in new management."
"We assure every depositor that no-one will lose money and we will continue to support the banks and all Nigerian banks," he added.
Reports in Nigeria said armed police secured the buildings of the five banks to protect their assets.
Sanusi took over as head of the central bank over two months ago, pledging to clean up the banking system that has fuelled growth in Nigeria.
Among the executives removed were senior members of Nigeria's corporate elite, long seen as almost untouchable by the political establishment.
"The banking sector is a critical part of any economic system and we believe the steps being taken will deliver an effective solution to a very serious set of challenges," said Michael Hugman, a strategist at Standard Bank.
Furthermore, Sanusi said the Nigerian government had no intention of nationalising the five banks and that this was a temporary measure.
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02 Aug (TBA) UN agency may cut Africa aid
The World Food Programme (WFP) says it is facing critical funding shortages that have forced it to cut aid deliveries to millions of people facing starvation in Africa.
Announcing that deliveries have already been suspended to north Uganda, Ivory Coast and Niger, the WFP said it might have to close parts of its airway, used to fly aid workers to humanitarian trouble-spots.
Analysts noted that the organisation has issued similar warnings in the past when facing funding shortages.
The UN Humanitarian Air Service (UNHAS), operated by WFP, has a budget of $160m (£96m) for 2009 but has received less than $90m in fees and contributions this year.
WFP spokesman Greg Barrow said UNHAS was "a vital component of humanitarian operations across the world".
"But because of a funding shortfall there is now a grave risk that the air service ... could literally be grounded in the next few weeks due to a lack of funds," he said.
Furthermore, WFP said funding for the airline's Chad service will run out on 15 August and that the agency needs $6.7m (£4m) to continue flying to the end of the year.
Spokeswoman Emilia Casella said the single-plane service flies an average of 4,000 humanitarian passengers to and from Chad each month.
She added that the cancellation would not stop food deliveries taking place, but would mean that aid workers would not be able to reach communities that need them most.
The service supplying Liberia, Sierra Leone and Guinea needs $3.3m (£1.9m) to continue flying to the end of the year.
According to the UN, around 102 million people in 78 countries received food aid last year.
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22 July (TBA) Ghana charges ex-minister
Akwasi Osei-Adjei who served as Ghana's Foreign Minister in the previous government has been charged with causing financial loss to the state.
Earlier this year Osei-Adjei was under investigation over rice imports from India.
In an interview on the BBC Network Africa programme, the former minister said he had not been informed of the exact details of the charges, after being summoned to the Bureau of National Investigation.
He denies any wrongdoing.
"I knew we had a case pending in court so I thought perhaps they wanted to talk to me about how we could resolve the issue," he said. "Never in my wildest dreams [did I think] they were going to arrest me and charge me.”
Osei-Adjei said he was released on a $500,000 (£305,000) bail and said a hearing date had been set for Friday.
Several members of Ghana’s previous government under ex-President John Kufour are being investigated for alleged corruption. Osei-Adjei is the first official from the former administration to be formally charged.
22 July (TBA) Nine miners killed in SA
Nine South African miners were killed on Monday after a shaft collapsed, trapping them hundreds of metres below ground.
Impala Platinum said the accident happened at the Rustenburg mine, north-west of Johannesburg.
A spokesman for Impala said the bodies of those who died had now been recovered.
Accidents are common in South Africa's mines, which are some of the deepest in the world. A fire at an illegal mine last month killed more than 60 people.
Impala Platinum said in a statement they were informing the families of those who died.
Impala's boss, David Brown, said he was "devastated" by the "major tragedy".
"Our thoughts are with the families and friends of our employees at this time," he added.
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 19 July (TBA) Zuma appoints new bank chief
President Jacob Zuma of South Africa has named former deputy governor Gill Marcus (pictured) as the new governor of the central bank.
Marcus, who is currently chairwoman of the South African banking group, Absa, will replace Tito Mboweni, who has been commended for efforts to fight inflation, and will take over in November.
Zuma said he had initially appointed Mboweni for a third, five-year term, but he had opted to leave early.
Marcus who has a long association with the governing African National Congress served as deputy governor of the South African Reserve Bank between 1999 and 2004.
"I have reappointed Mr Mboweni as Reserve Bank Governor. However, he has indicated his wish to leave in November 2009 to pursue other interests," Zuma said. "I have therefore decided to designate Ms Gill Marcus."
The appointment has been closely watched. With the country in recession, the president has come under pressure from unions to loosen monetary policy, and focus more on job creation.
Analysts said Mboweni had been expected to stay on in the post, but that financial markets were likely to welcome the appointment of Ms Marcus as a sign of continuity.
Marcus was elected to Parliament in 1994 and served as its first chairperson of the Joint Standing Committee on Finance. In 1996 she was appointed Deputy Minister of Finance, and in 1999 Deputy Governor of the South African Reserve Bank, the first woman to hold such a position.
Marcus has served on the boards of Bidvest and Gold Fields Ltd, as well as on the International Marketing Council, the Advisory Board of the Auditor General and the Independent Regulatory Board for Auditors.
She is patron of the Pretoria Sungardens Hospice and the Working on Fire Programme, and a supporter of the Johannesburg Children’s Home.
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03 July IMF refuses aid to Zimbabwe
The International Monetary Fund has told Zimbabwe that it will not provide the country with more funds until its existing $1bn debts are settled.
Zimbabwe's government estimates it will need $10bn (£6bn) of foreign aid to help rebuild its battered economy.
But the IMF said that Zimbabwe would need to clear its debts and show a sustained record of sound policies before it could give financing.
China, one of the few countries to retain economic support for Zimbabwe in recent years, recently agreed to give the country a loan of $950m.
The IMF said that Zimbabwe's economic policies had improved and a "nascent economic recovery appears to be under way".
Earlier this month Prime Minister Morgan Tsvangirai visited the US and Europe in an attempt to raise funding for the struggling nation.
The US promised $73m in aid while the UK pledged to boost its funding by about $8m, taking its total to $98m for the year. Tsvangirai said he had received pledges totalling $500m during his trip.
03 July Nigaz name carries ‘racist connotation’
A marketing blunder in Nigeria has got online communities all of a twitter, after a joint oil and gas venture with Russia was named Nigaz.
Russia's Gazprom and Nigeria's state-operated NNPC formed the company - pronounced "nye-gaz" - last week.
Nigerians No Nigaz, a group formed on the social networking site Facebook, says the name could be pronounced in a way offensive to black people. Users of Twitter have also expressed disbelief at the decision.
"Russian & Nigerian companies have formed new oil firm called... Nigaz. I'm not lying," says Osa Oyegun, under her Twitter name ChocolateMezzo.
The topic has prompted hundreds of tweets.
Henry Makiwa, known as makiwahenry, said: "Lol [laugh out loud] of the day: Russian/Nigerian oil conglomerate has had PR branding blunder after naming joint company 'Nigaz'."
Reports say despite the hoo-ha caused online, newspapers in Nigeria have not picked up on the story yet.
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23 Jun Nigeria to welcome foreign banks
Nigeria's central bank governor Lamido Sanusi has indicated that he is prepared to lift a ban on foreign ownership of its banks.
In an interview with the Financial Times, Sanusi said that Nigeria wanted to "try to encourage the foreign banks that are coming, not just with money, but with management and systems, to come in and acquire".
He said restricting outside investment was "not a sustainable policy."
Furthermore, Sanusi who recently took over the reins of power at the central bank said: "Why wouldn't I be comfortable with a bank owned by Barclays, of HSBC or China Construction Bank who I know?"
Many international banks left Nigeria in the 1970s after military rulers imposed a law part nationalising banks.
Analysts said although there has liberalisation in the Nigerian banking sector, only Standard Chartered and Citigroup have re-established large operations in the country.
Currently, Nigeria’s central bank must approve the acquisition of more than 5% of any of the country’s banks by a foreign firm.
Sanusi also said that the previous governor had also imposed a rule that no foreign bank could own more than 10% of a Nigerian one, but that this was "unnecessary" and should change.
Encouraging outside investment is part of a wider plan to shore-up confidence in the country's financial system which had suffered losses during the collapse of local stock markets last year.
"We do need the capital to come in, we do need the skills on...risk management and secondly at this time we may need to recapitalise banks,” Sanusi said.
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02 Jun Nitel back in government hands
The Nigerian government has taken back control of the country's former telecoms monopoly Nitel, citing unpaid debts and a lack of investments by the private sector.
Local firm Transcorp paid $500m (£304m) for a 51% stake in Nitel in 2006.
But state officials said Transcorp had breached its contract and the government would control the company until a new investor was found.
Nitel has been hit hard by a decline in both fixed line and mobile phone subscriber numbers.
Nigerian authorities said Transcorp had failed to meet its obligations to invest 8.9bn naira ($60.7m) within 100 days of the takeover and had racked up debts of 17bn naira.
"The government is considering a technical board to manage Nitel until a new core investor emerges," said Christopher Anyanwu, director general of the Bureau of Public Enterprises.
Since 2001, Nitel has seen its number of fixed lines plunge from more than 500,000 to about 100,000.
Subscribers to its mobile phone subsidiary Mtel have also fallen from 1.3m to a few thousand.
Former President Olusegun Obasanjo first tried to sell the firm in 2001 before Nitel bought its majority stake five years later.
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19 May World Bank gives $22m to Zimbabwe
The World Bank has agreed to give Zimbabwe $22m (£14.4m), its first assistance to the heavily-indebted country since 2000, according to WB executive director, Toga Gayewea McIntosh.
Zimbabwe has been appealing for $8.5bn to rebuild its broken economy after forming a unity government in February.
McIntosh said the relatively small amount of money was "a first step" and that more could be forthcoming when Zimbabwe begins to clear its arrears.
"The first task is to see how Zimbabwe can get on with debt reduction," said McIntosh who is responsible for the Africa Group 1 constituency comprising 22 countries in the sub-Saharan region.
He added that the money will be available in the next few weeks.
Zimbabwe's finance minister, Tendai Biti, said the government would work with the World Bank on a debt reduction plan.
Since suspending its lending programme to Zimbabwe when it went into arrears in 2000, the World Bank has limited its support to "technical assistance and analytical work".
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18 May Vodacom lists on SA stock market
South Africa's largest mobile phone firm, Vodacom, today made its debut on the Johannesburg stock market and immediately registered an appreciation in the value of its shares.
The shares which opened at 59.50 rand each ($6.90; £4.51) climbed to 63.10 rand, before dropping back to 59.30.
Vodacom’s listing came a day after a South African court threw out an attempt by trade union federation Cosatu to block the listing.
Analysts said the listing is part of a wider deal that increases UK firm Vodafone's stake in the company from 50% to 65%, at a cost of 22.5bn rand (£1.4bn; $2.1bn).
Vodafone bought the 15% stake from government-controlled Telkom, which has now offered the remaining 35% of its shares to investors. Half of the Telkom shares on the market are being freely traded and the other portion is being held by fund managers.
Cosatu had objected to a foreign firm taking a majority stake in one of the country's biggest companies and had argued that jobs would be at risk. Vodacom now runs mobile networks in five African countries.
18 May Four Nigerian MPs face fraud charges
Members of the Nigerian National Assembly in charge of investigating the country's electricity crisis have been charged with fraud.
Four MPs and six officials have denied siphoning off $42m of public funds in a hearing that stretched over two days.
The Economic and Financial Crimes Commission (EFCC) says that in December 2008, just after the MPs concluded their investigation into the power sector, they funnelled the cash into a range of front companies.
They deny the charges. Nigeria newspaper reports said each of the defendants had to rise 130 times to answer "not guilty".
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 12 May Gordhan named SA finance minister
South African President Jacob Zuma has named Pravin Gordhan (pictured) as his new finance minister.
Gordhan who previously worked in the tax department and has been credited with increasing state coffers, will take over from Trevor Manuel, who has been appointed head of a new national planning body.
Zuma has pledged to tackle the tough economic crisis, widespread poverty and rising crime. He told a news conference he wanted an efficient, and caring administration with no laziness or incompetence.
As head of the new National Planning Commission, Manuel will now be responsible for strategic planning and co-ordination among government departments.
"Comrade Trevor Manuel is being given a new structure, a very powerful structure, that is going to work out a national plan of government," Zuma said.
He said he believed the markets would react positively to his new appointments, but added: "Who can predict the markets?"
Zuma was elected president by parliament after the African National Congress won the general election last month, albeit with a slightly reduced majority.
Aaron Motsoaledi has been appointed to the key post of health minister, as the country tackles an HIV/Aids epidemic. Communist party leader Blade Nzimande was named minister of higher education and training.
Former President Kgalema Motlanthe was named deputy president.
Zuma also announced the creation of a ministry for monitoring and evaluation to oversee the performance of government.
Analysts say one of the biggest surprises in the new cabinet is Dr Pieter Mulder, leader of the Afrikaner nationalist Freedom Front Plus party, who becomes deputy minister of Agriculture.
In other appointments, Barbara Hogan has been moved from health to public enterprises. The health portfolio was given to provincial education minister from eastern South Africa, Aaron Motsoaledi.
At his inauguration on Saturday, Zuma warned of hard economic times ahead. "Jobs are being lost in every economy across the world," he said. "We will not be spared the negative impact, and are beginning to feel the pinch."
Analysts say Zuma is under pressure from his grass-roots supporters to increasing state spending on job creation, delivering services such as water, housing and electricity and improving the education system.
Investors praised Manuel's handling of the economy during his 13 years as finance minister, saying he had largely kept state expenditure within limits the country can afford.
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 01 May Zimbabwe gets $400m credit line
African governments have extended $400m (£270m) to Zimbabwe in a credit line aimed at helping pay civil servants and regenerate the country's economy, according to Finance Minister Tendai Biti (pictured).
Biti who was in London to look for further funding told the press on Thursday that Botswana provided $70m (£47m) and South Africa $50m (£34m), with the rest coming from the Common Market for Eastern and Southern Africa.
A unity government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai has appealed for billions of dollars from the West.
According to estimates by the International Monetary Fund Zimbabwe would actually need around US$45bn to revive its economy over the next five years, Western donors have called for real proof of power sharing and the restoration of law and order before they open their wallets.
Human Rights Watch said on Wednesday donors should withhold development aid until Zimbabwe halts a fresh wave of invasions of farms and frees opposition and human rights activists.
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16 Mar Global recession bites $49bn off Africa
African economies will lose up to $49bn by the end of this year, due to the financial crisis and global recession, according to a report by UK-based charity; ActionAid.
Around $27bn of this was a fall in aid, export earnings and income from richer recession-hit nations said the charity. The lost income is equivalent to a 10% pay cut for the continent, it added.
The report comes as African leaders prepared to meet UK Prime minister Gordon Brown to discuss the effect of the recession on their economies.
Those talks are ahead of the G20 summit in London - where just one African country - South Africa - will be represented.
The ActionAid report found that countries which liberalised their markets, and were large enough to attract significant investment would be most affected by the financial crisis.
South Africa would be among the hardest hit, as it was likely to see income from abroad plunge to around a fifth of the country's economic output.
"Although developing countries didn't make this crisis, it has become all too clear that they are in the firing line when it comes to suffering its worst effects," said ActionAid's head of policy, Claire Melamed.
"There is a real risk that development will start to go backwards in many countries as the money dries up and that the recession will lead to worsening poverty and terrible consequences for the men, women and children caught in its grip."
Dr Melamed added that that the global financial system "hasn't been working for development for a long time".
"Countries that have opened up their economies to global finance subjected themselves to massive risks but didn't get much of a pay-off in development terms,” she said.
"But developing countries do need finance from somewhere and we need a system that can give them what they need without running the huge risk of another financial crisis."
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| BUSINESS NEWS - Business News |
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 13 Mar Zimbabwe calls for urgent donor support
Tendai Biti (pictured) Zimbabwe's finance minister warned yesterday that the country's power-sharing government will fail, with potentially disastrous consequences, unless international donors urgently inject cash into its coffers.
Biti welcomed Australia's move to boost humanitarian spending by £4.7m but said donations channelled through international aid agencies would not save the transitional government that was sworn in last month.
Biti, who is also secretary general of the Movement for Democratic Change (MDC) led by Morgan Tsvangirai said: "If we fail, the consequences will be dire, such as a military coup or civil unrest."
Donors have maintained that said their release of funds to Zimbabwe will depend on democratic progress.
However, Biti said: "Our capacity to deliver is linked to economic stability and we need help. It cannot be a chicken and egg situation; there has to be a chicken, or an egg, first."
Biti needs to meet a civil service salary bill - including the politically crucial police and army - of up to £35m a month out of a seriously depleted exchequer in an economy where inflation runs into millions of per cent.
He said: "I am the treasury, I am the chancellor of the exchequer, trust me. I guarantee money paid to the treasury will be correctly spent."
On Wednesday, Australia became the first donor country to announce an increase in humanitarian aid - split between the British Department for International Development and the UN children's fund, Unicef - since the transitional government was sworn in.
Diplomats said other countries would soon follow suit, starting with Sweden, which will next week announce £7m for a UN fundraising effort for the Red Cross. Britain, which spends £45m a year, has yet to announce any new initiatives.
Teams from the International Monetary Fund and World Bank are currently in Zimbabwe to study "how to resume relations" with a country with IMF arrears of £90m.
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| BUSINESS NEWS - Business News |
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 05 March Growth in African markets predicted
African countries are best positioned to profit from the next stage of globalisation, according to a London-based investment analyst, Daniel Broby (pictured).
Broby, Chief Investment Officer at London firm, Silk Invest, told delegates at the Commonwealth Business Council Africa Outsourcing summit in London on Tuesday, that African markets have outperformed both developed and other developing regions, in the past few years.
However, he acknowledged that many western investors were still reluctant to be wooed to Africa, even when presented with evidence based on statistics and data. “There are many who simply refuse to be convinced,” Broby said.
However, he noted that the cold shouldering of Africa by some western investors had presented home grown entrepreneurs with an opportunity to set up innovative companies.
On the telecoms sectors, Broby cited Safaricom, the leading telecommunications company operating in Kenya and other African countries as an example of home-grown firm with an impressive portfolio.
“Safaricom services now allow clients to transfer money using mobile phones,” Broby said. “The firm has around 11 million and annual revenues of around $750 million.”
Within the banking sector, Broby cited Ecobank’s impressive growth which has seen its net profits rise from $30 million in 2003 to $139 million in 2007, as underlining the fact that the sub-Saharan Africa is still “underbanked.”
Broby also noted that fertilizer manufacturers and firms in the construction sectors are primed for growth in Africa in the medium to long term periods.
“Both industries are geared for more growth, profiting from population trends and increased agricultural prices,” he said.
According to Broby the trend in the emerging markets also shows that some African countries are already a force to be reckoned with.
South Africa takes the lead with a total capital market capitalisation of $508 billion followed by Saudi Arabia notching $452 billion. Egypt is in fifth position accounting for $141 billion while Morocco at $95 billion is placed in seventh position, followed by Nigeria in eight position pegged at $85 billion.
Cash remittances to Africa from Africans based in Europe, America, Canada and other parts of the world are also boosting foreign currency reserves on the continent. Growth in this sector has been tremendous too – rising from $500,000 000 sent to Africa in 2002 to above 16,000,000,000 in 2007.
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| BUSINESS NEWS - Business News |
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04 March IMF warns of crisis in poor countries
The world's poorest countries will need $25bn (£18bn) in additional financing this year, to cushion them from the global financial crisis, according to the International Monetary Fund (IMF).
In a new report, the IMF says poor countries are beginning to be hit by the global financial crisis, because they are more integrated into the international economy than they used to be.
The IMF describes it as the "third wave" of the downturn; after first affecting the advanced and then the emerging economies.
Furthermore, the IMF says poor countries are likely to feel the impact through a downturn in trade and falls in foreign investment and remittances - money sent home by people working abroad.
The report says more than 20 countries, half of them in Sub-Saharan Africa, are particularly vulnerable.
It warns that if "global growth and financing conditions deteriorate further, the number of vulnerable countries could almost double". And that would increase the additional amount of money countries need towards $140bn, the study predicts.
"After hitting first the advanced economies and then the emerging economies, a third wave from the global financial crisis is now hitting the world's poorest and most vulnerable countries," the head of the IMF, Dominique Strauss-Kahn, says.
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| BUSINESS NEWS - BUSINESS NEWS |
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 02 March France honours ‘Angel of Burundi’
Marguerite Barankitse (pictured) the woman known as the "Angel of Burundi" has been awarded the title of Chevalier of the Legion of Honour, one of France's highest honours.
The award was announced last Friday by French Secretary of State for Human Rights, Rama Yade, in recognition for Barankitse’s humanitarian work.
Barankitse’s has spent the past 14 years caring for 10,000 orphans who were the victims of war and HIV/Aids. She also offers a place for women and child refugees returning to Burundi to rebuild their lives.
Barankitse became a humanitarian on a much larger scale after saving the lives of 25 children during Burundi's civil war in 1993. It happened after she witnessed a massacre of 72 ethnic Hutus by Tutsis while teaching in the eastern province of Ruyigi.
Barankitse founded the Maison Shalom charity that year and the number of children she was helping grew rapidly.
She has now built a whole village of homes for the children, to give them a sense of a family life. The charity has also built a day-care centre and a hospital, among other projects.
During an interview with the BBC Barankitse said: "I don't think I should be given awards. Whenever I am told I am being given an award, I am always astonished because I am only doing ordinary work."
In November 2008, Barankitse won the Opus Prize, a $1 million faith-based humanitarian award from the United States. She says her next project is to set up an international school to provide education to the children and her charity’s employees.
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| BUSINESS NEWS - Business News |
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 27 Feb Zimbabwe seeks $2bn rescue package
Zimbabwe has asked southern African countries for $2bn (£1.4bn) to rescue its collapsed economy, according to South Africa's finance minister.
In an interview on South African radio Trevor Manuel (pictured) said Zimbabwe had said the money was urgently needed to revive public services and the business sector.
Aid to Zimbabwe is top of the agenda as Southern African Development Community (Sadc) finance ministers meet.
Manuel said Zimbabwe wanted half the money for emergencies in education, health and municipal services, while the other half would be ploughed into kick-starting the retail and other sectors.
But as the two-day summit began on Thursday in Cape Town, local people expressed concern as to whether their country could afford the aid burden, analysts said.
South Africa has recently lost thousands of jobs, particularly in the mining, clothing and motor car industry. Furthermore, the country’s reliance on commodity exports has severely hurt it’s economies as demand for raw materials plunges in the global financial downturn.
Zimbabwe's Prime Minister Morgan Tsvangirai said last week it would cost as much as $5bn (£3.5bn) to fix Zimbabwe's economy.
Western donors have made it clear they will only release money when the new power-sharing government shows evidence of effective and inclusive governance.
The new administration urgently needs to tackle an economic meltdown that has led to the world's highest inflation, food shortages and a cholera epidemic.
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| BUSINESS NEWS - Business News |
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 24 Feb Mujuru implicated in Congolese gold deal
Joyce Mujuru Zimbabwe's Vice-President tried to fund a multi-million dollar gold deal in defiance of international sanctions, according to a report on the BBC.
The deal allegedly involved selling Congolese gold in Europe.
There has been no comment from Mrs Mujuru, who was appointed five years ago by President Robert Mugabe as Zimbabwe's first female vice-president. She is one of about 200 Zimbabweans the EU has hit with sanctions, accusing them of human rights abuses.
According to the BBC a company with offices in Europe, Firstar, says Mrs Mujuru's daughter, Nyasha del Campo, offered to sell more than three-and-a-half tonnes of gold from the Democratic Republic of Congo.
Ms del Campo declined to comment on the allegations and says she is consulting her lawyers.
Copies of e-mails seen by the BBC suggest the Zimbabwean vice-president was to pay the transport costs of delivering the gold to a refinery in Zurich.
According to Felix Eimer of Firstar Mrs Mujuru was central to the deal,.
"The contact is from her to the gold mine. Nyasha was just the person that was co-ordinating the things for third parties," he said. "The person behind the deal and the person that organised the funding for the deal that was necessary to complete it and to enter the deal was her mother."
Firstar says it withdrew when it realised who Mrs Mujuru was. The company says Mrs Mujuru then phoned its chief executive in Europe demanding the decision be reversed.
Mrs Mujuru and her husband, Solomon, a former head of the national army, are among the wealthiest and most powerful people in Zimbabwe, with extensive mining interests.
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| BUSINESS NEWS - South Africa |
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 22 Feb Anglo American to cut 9,000 more jobs
Anglo American the mining conglomerate has said it will cut an additional 9,000 jobs as the global economic downturn hits demand for raw materials.
The latest job losses come on top of the 10,000 job cuts that Anglo's South African unit, Anglo Platinum, had already announced earlier this month.
The job cuts follow similar moves at rival mining companies Rio Tinto and BHP Billiton.
Anglo also announced a 3% fall in 2008 pre-tax profit to $8.57bn (£6bn) and warned that 2009 would be tough.
A company spokesman said the job cuts would be across the group's operations, which are mainly in South Africa, South America and Australia.
Analysts said mining companies have seen a dramatic turnaround in their fortunes as the worldwide credit crunch takes its toll.
A boom in the price of metals and other commodities, sustained mainly by China's once high demand for raw materials, has stuttered to a halt.
Cynthia Carroll (pictured) Anglo's chief executive, said that the effects of the economic downturn "were difficult to overstate".
"The world economy faces an unprecedented level of uncertainty," she said. "The outlook remains poor in the near term, with expectations for continuing volatility and weakness in commodity prices."
Both prices and demand for nickel, platinum, iron ore and coking coal, used in steel production, had declined significantly, the company said.
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| BUSINESS NEWS - Zimbabwe |
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 18 Feb Zimbabwe civil servants paid in US$
Zimbabwe's soldiers and civil servants have started receiving their salaries in US dollars to help revive the shattered economy, according to the country’s new finance minister, Tendai Biti
Biti (pictured) a member of the opposition party MDC which has entered a power-sharing deal with Robert Mugabe’s Zanu-PF, said around 130,000 government employees were receiving $100 (£70) a month tax-free.
"We have to get Zimbabwe working again; getting teachers to school is part of efforts to get Zimbabwe to work again, having examination papers being marked is part of having Zimbabwe work again," Biti said at a news conference in Harare today.
He added that there is enough foreign currency in state coffers to pay the wages for February and March.
Zimbabwe’s inflation, estimated by some economists at 10 sextillion per cent, has rendered the country’s currency virtually worthless. Once on par with the British pound, the value of the Zimbabwean dollar has crashed spectacularly over the past 15 years. A loaf of bread now costs trillions of dollars.
This month, Zimbabwe’s central bank knocked 12 zeros off the local currency - reducing one trillion dollars to one dollar.
On Tuesday soldiers were paid in vouchers redeemable at selected banks, while teachers were to be paid on Wednesday and other civil servants on Thursday.
Last week, MDC leader Morgan Tsvangirai who was recently sworn in as Prime Minister appealed to civil servants to return to work, promising they would be paid in foreign currency.
Analysts say the US dollar allowance is the first concrete step from the new government towards rebuilding Zimbabwe since the new cabinet was sworn in last week by President Mugabe.
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| BUSINESS NEWS - Angola |
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17 Feb Angola projects rise in cereal production
Angola has projected that it will produce around 600,000 tonnes of cereals during the current (2008/2009) season, against the 450,000 tonnes harvested in the corresponding 2007-2008 period.
The announcement was made by Angola’s director-general of the National Institute of Cereals (INCER), Benjamin Álvaro Castelo.
Castelo told the press on Monday that regular rains in this season will increase production levels and go a long way in reducing the deficit in cereal production which had been projected at 500 tonnes.
Regarding the shortage of cereals, Castelo stressed that the reduction is contained in a process that requires the intervention of producers, while the government, within its responsibilities, is implementing projects meant to boost the production of maize, barley and the construction of infrastructure to support production.
According to Castelo the growth in cereal production had been noted in Malanje and Kwanza Sul province, as well as the irrigated perimeters of Caxito, northern Bengo province, Gandjelas (Huíla), Luena (Moxico).
He also noted that the Waku Kungo (Kwanza Sul) region will contribute to the increase of cereal production, with a view to enable food self-sufficiency in the country.
Castelo said the general deficit in cereal production within Africa is the reason why some countries on the continent had decided to work in partnership with the United Nations Food and Agriculture Organisation (FAO).
"FAO's secretary-general urged African leaders to take this deficit seriously, and if we want to combat poverty, we must investment a lot in agriculture, as mechanised agriculture and not to continue using the old methods,” Castelo said.
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| BUSINESS NEWS - Nigeria |
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09 Feb Nigeria oil workers go on strike
Nigeria’s oil workers in the Niger Delta have gone on strike to protest at the lack of security in the restive oil-producing region.
Staff members from oil company Total went on strike even after their national union executive said it would delay industrial action.
The strike comes in the wake of the killing of the 11-year-old daughter of an oil worker as she tried to prevent her brother being kidnapped.
Reports in Nigeria said it is unclear if the walkout will affect output or spread to other firms.
Kidnappings of employees and their families has increased over the last few months.
Over the weekend the Movement for the Emancipation of the Niger Delta (Mend) claimed to have attacked a gas plant in Delta State.
However, Nigeria’s military said it had repelled the attack in the early hours of Saturday morning and killed three militants.
Meanwhile, the wife of Edmund Daukoru, the former oil minister, was released on Friday after being kidnapped by unidentified gunmen last week.
Mend claimed not to have had anything to do with the abduction, but in a press release to journalists, claimed Gladys Daukoru's family had paid a $2.5m (£1.69m) ransom for her safe return.
They said the gang had threatened to "rape her every day" unless they were paid.
Militants say they are fighting for a better share of the oil wealth, but armed gangs make money from kidnapping, extortion and oil theft. Violence since 2006 has cut oil production in the world's eighth largest exporter by around a fifth.
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| BUSINESS NEWS - Somalia |
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06 Feb Somali pirates paid $3.2m to release ship
Somalian pirates who hijacked a Ukrainian ship loaded with weapons last September have released the vessel after receiving a ransom believed to be around US$3.2m, reports from Somalia say.
The pirates, who seized the Kenya-bound MV Faina and its crew on 25 September 2008, initially demanded a ransom of $20m (£14m), but reports suggest that a figure of $3.2m was finally agreed following months of negotiations.
Reports say the MV Faina was the highest-profile vessel held by pirates and was carrying army tanks, rocket launchers and small arms. Armed pirates took control of the ship and its crew of 20 as it headed for the Kenyan port of Mombasa.
The ship has since been moored off the town of Harardhere, along with a number of other vessels seized by the pirates.
Early on Thursday groups of pirates began leaving the vessel, amid reports from Harardhere that the ship had been freed after ransom had been paid.
"We have released MV Faina. There were only three boys remaining and they delayed the release for one hour, but now the ship is free," one of the pirate leaders, Sugule Ali, told AFP news agency by phone. "No huge amount has been paid, but something to cover our expenses," he added.
Victor Shapovalov, the father of a senior officer on the ship, told the BBC Ukrainian Section that relatives did not have direct communication with the ship.
"We have direct contacts with other people," he said. "[The crew] are alive, but whether they are in a good health, that is a big question."
"I think that the negotiations lasted very long time - four months. But of course I am very happy with the result," he added.
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| BUSINESS NEWS - IMF warning |
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26 Jan IMF warns Africa of lean times ahead
Sub-Saharan Africa has demonstrated surprising resilience in the face of the global economic meltdown, the International Monetary Fund (IMF) said on Monday.
However, there is no guarantee such resilience can be maintained, and the region should "prepare for a rough ride", the 185-member organisation warned in a statement.
In a statement encompassing the deteriorating world economy, the IMF said the risks to growth in sub-Saharan Africa were quite obvious.
"The food and fuel price shock has put pressure on inflation and external balances. And the deepening global financial turmoil has put a brake on global growth, giving rise to the potential for lower commodity prices for Africa's exports and reduced capital flows to Africa; as a result, growth in Africa could slow as well," the IMF said.
Warning that the economic clouds on the continent's horizon could develop into a storm, the IMF advises that policymakers have to be prepared to respond.
"One of the challenges Africa faces is increasing inflation. The IMF expects inflation in sub-Saharan Africa — excluding Zimbabwe — to increase to 12 percent in 2008, before falling back to 10 percent in 2009.
"The rise in inflation is caused mainly by the food and fuel price shock. In a number of countries demand pressures have also contributed to inflation, sometimes reflecting expansive fiscal policies. As a result of rising prices, particularly of food, poverty may well be on the rise in 2009.
The report also notes that higher import prices are also worsening the external balance of most countries in sub-Saharan Africa, in particular those who are net oil importers.
"Meanwhile, donor support has not covered the larger import bills. And the world financial crisis, which has come on top of the food and fuel price shock, now risks further exacerbating external balances by reducing remittances, capital and even aid inflows," the report says.
Furthermore, the reports says a number of countries in the region had fallen behind the curve in fighting inflation.
"In many countries, monetary policies may therefore need to be tightened to preserve price stability," the IMF said.
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| BUSINESS NEWS - Ghana |
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22 Jan Kufuor package angers Ghanaians
A massive retirement package proposed for Ghana’s former President John Kufuor has drawn criticism from a cross section of Ghanaian society and from another former president, Jerry Rawlings.
The benefits for Kufuor were approved by MPs on his last day in office earlier this month. They include a lump-sum thought to be worth $400,000, six chauffeur-driven cars and two houses.
Commenting on the package, David Amanor who works for the BBC's in Ghana’s capital, Accra, said although Ghanaians respect their former presidents, they see the proposed package as extravagant, if not excessive.
"We have a lot of problems in the country - water problems, light problems," one man told him. "Two cars with security is OK. But not five [sic] cars. The country will go bankrupt," he said.
The six cars can be replaced every four years and the former president can pick any two houses. The package also includes a budget for entertaining, security and a foreign holiday each year.
The new parliamentary majority leader said it was embarrassing that MPs had taken the decision behind closed doors. However, another MP said it would prevent leaders clinging on to power.
Alban Bagbin, the leader of the parliamentary majority, told the press that he had not even known that a committee of MPs was meeting to discuss the measures, which had not been debated, bypassing normal parliamentary procedure.
Former President Jerry Rawlings could also benefit from the package but he told the BBC that he had told the committee to "get lost" when they approached him.
"I've lived with the little accorded to me all this time. I told them to get lost," Rawlings said. "You're not going to entice me with that grandiose rubbish designed for Kufuor.".
Rawlings founded the National Democratic Congress (NDC), whose candidate John Atta Mills narrowly defeated Nana Akufo-Addo from Kufuor's New Patriotic Party after a run-off.
Kufuor stood down after serving the maximum two terms.
At the weekend, the government said the outgoing administration had exceeded its budget sevenfold, leaving the country "broke".
However, one of Kufuor's allies told the BBC that the proposed retirement package had not yet been signed into law and that the new administration was free to amend it if they so wished.
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| BUSINESS NEWS - South Africa |
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 21 Jan SAA 'drug crew' granted bail
The crew of a South African Airways (SAA) plane arrested after a drugs haul find in the UK were released on bail without charge today, British customs officials said.
The flight and cabin crew — 10 women and five men — will have to report back to British police in March after being arrested at London Heathrow Airport on Tuesday, on arrival from Johannesburg.
Border agency officials found 50 kilograms of cannabis worth £150 000 ($210 000, €160 000) and four kilos of cocaine worth about £160 000 in three suitcases.
"The 15 arrested crew members were interviewed overnight by Her Majesty's Revenue and Customs investigators," an HMRC spokesperson said. "All have now been released on unconditional bail pending further enquiries, and are due to report back to HMRC investigators at Heathrow Police Station on 23 March."
Border officials found the cannabis when the crew passed through a customs clearance point. Further searches revealed a white powder that tested positive for cocaine, an HMRC spokesperson said.
SAA said in a statement that the airline was arranging to fly the crew back to South Africa.
"They haven't been suspended... they will come back and SAA will interview them before any course of action is decided upon," SAA spokesperson Robyn Chalmers said. "SAA has a zero tolerance approach towards the use of the airline's services for any criminal activity."
Meanwhile, the Airports Company of South Africa (Acsa) said: "At all our airports, airline crews and pilots are screened and processed like any other passenger upon departure.
"At Cape Town and OR Tambo (in Johannesburg) we have a dedicated check point for all airport staff (Acsa and non-Acsa) including airline crews and pilots. They are subjected to the same screening procedures as passengers."
SAA has a separate crew centre with its own screening area at OR Tambo airport which SAA ran and managed, it added.
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| BUSINESS NEWS - Business News |
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16 Jan ActionAid steps up cholera campaign
UK-based charity group ActionAid is stepping up its cholera prevention campaign in Zimbabwe after finding that shortages of basic supplies such as salt, sugar and bleach are hampering the fight against the disease.
In a press statement released today, ActionAid said it is now planning to spend a total of £1 million on cholera prevention.
Communities in the capital Harare and surrounding townships are living with burst sewers, failing water supplies, and uncollected rubbish.
ActionAid staff and partners report chronic water shortages in the outlying Harare townships of Tafara and Mabvuku. Most boreholes are not working and people in the two townships are relying on unprotected wells.
In another township of Mufakose, foodstuffs including fresh fish were being sold close to flowing sewage.
Tsitsi Choruma, director of ActionAid Zimbabwe, said: “Shops are putting US dollar prices on sugar and salt, ingredients of the oral rehydration mixture which is a life-saving treatment for serious diarrhoea.
“Bleach and disinfectants are scarce. Often people have no way to disinfect a motor vehicle or wheelbarrow that has been used to transport a cholera patient. When a patient dies, many households struggle to pay for a coffin.”
Local shops are selling water sterilising tablets for foreign currency. Residents who have only Zimbabwean dollars are unable to buy them.
Other households are unable to use the tablets because they do not have a suitable 20-25 litre container.
“ActionAid's response to the cholera epidemic has concentrated on awareness and prevention. In the communities where we work, awareness has improved, but there is still a desperate shortage of basic supplies which would help people to practise good hygiene,” Ms Choruma added.
"We have distributed hygiene kits consisting of soap, cotton wool and a jerry can to 1000 households, and water purifying tablets to nearly 20,000 households. Funds are now urgently needed to supply more hygiene kits and aqua tablets, while continuing our awareness work."
Since cholera broke out in Zimbabwe in August 2008 there have been more than 40,000 cases and 2200 deaths. The number of reported cases and deaths continues to rise steadily, with no sign that the epidemic is under control.
The rainy season is now under way, and the cholera hazard will increase as refuse and sewage are washed into watercourses. Working with the local authorities, ActionAid has begun a series of cleanup operations in urban areas.
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| BUSINESS NEWS - Business News |
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 15 Jan Income gap widens in SA - report
Income disparities continued to widen in South Africa last year, with the number of top earners rising by more than 52 percent while the lowest-paid majority declined by a meagre 0.8 percent, according to research from the University of SA (Unisa).
Those earning R100 000- R300 000 rose by 18 percent compared with an overall growth rate of just 11.4 percent.
The number of Africans in the next two income categories — comprising people earning R300 000-R500 000 and those earning R500 000-R750 000 — rose by more than 40 percent, outstripping the overall rise of more than 25 percent, the study showed.
However, the number of people earning less than R50, 000 barely budged and still accounted for 75.5 percent of the population.
The study by Unisa's Bureau of Market Research also showed that rapid growth in the country's emerging middle class — earning between R50 000 and R300 000 a year — was spurred mainly by rising numbers of African, Asian and coloured people in the segment.
The study carried out by researchers Carel van Aardt and Marietjie Coetzee showed that these groups posted the most rapid growth in the category of people earning between R300 000 and R500 000 a year.
"The personal income of Africans has grown more rapidly than that of whites during the past few years, while the total income of Africans was on a par with whites during 2007 to last year."
But the research also pointed out that, broadly speaking, more affluent people were getting richer while the portion of poorer people becoming affluent "was still minimal".
"Contrary to popular belief, income inequality is on the increase," the study noted.
On a more positive note, the study shows that the number of Africans earning between R50 000 and R100 000 rose by 15.3 percent last year compared with an overall increase of 10.1 percent.
"Personal income is on the increase across all income groups," the study concludes.
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| BUSINESS NEWS - Business News |
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12 Jan 22 million Africans living with AIDS - UN
An estimated 33 million people around the globe are living with HIV; with 22 million in Sub-Saharan Africa alone, according to the latest UNAIDS report.
The authors, who also estimate that around 2.7 million new HIV infections occurred worldwide in 2007, are encouraged by new data which suggests there have been significant gains in preventing new infections in several African countries with high prevalence rates.
According to the report, changes in sexual behaviour in Rwanda and Zimbabwe have led to a decline in the number of new HIV infections, while young people in countries such as Burkina Faso, Ethiopia, Ghana, Malawi, Uganda and Zambia are waiting longer to have sexual intercourse.
There is a new emphasis amongst AIDS campaigners on "knowing your epidemic", that is to say analysing the local situation in terms of the specific factors driving the epidemic and knowing precisely who is infected and then seeking the best way to act on this information.
Rwanda is classified among the ten African countries most severely affected by HIV/AIDS pandemic. But, recognising the negative development impact of the disease, the government has demonstrated strong commitment to both HIV prevention and treatment.
Among its successful initiatives is an effort to involve male partners in the prevention of mother to child transmission.
"When I look back to 2004, we just had 6 percent of male partners accompanying their wives to check up clinics," says doctor Anita Asiimwe, executive secretary of the National Aids Control Commission in Rwanda, "but today we have figures as high as 64 percent."
According to government statistics, the AIDS prevalence rate in Rwanda had fallen to three percent in 2008, down from seven percent in 2000. Almost 90 percent of children born to HIV+ mothers are virus-free; a huge gain on the less than 40 percent rate just two years ago.
The news from Kenya is not so encouraging. Two studies done on the general population indicate that HIV/AIDS is on the increase. The 2003 Kenya demographic health survey -- which is the most recent survey done -- showed an HIV/AIDS prevalence of 6.7 percent.
The Kenya AIDS Indicator Survey released in 2008 shows the prevalence rate to have risen to 7.8 percent by end of last year.
Health experts say Kenya's prevention strategy has failed to effectively target specific high risk groups that seem to be driving the epidemic.
In South Africa, an extremely high background prevalence of HIV increases the probability of new infections, particularly among young women aged 18-24, according to Quarraisha Abdool Karim, associate scientific director at the Centre for the Aids Programme of Research in South Africa (CAPRISA).
Sexual relationships with older men often put young women in a vulnerable position in terms of demanding safer sex, or knowing their partner's sexual history or status.
"We still have a standardised cookie cutter approach to prevention - ABC (Abstinence-Be faithful-Condom use)," says Quarraisha. "We are still not discussing protective effects of medical male circumcision. We are not targeting our intervention. We do not have adequate coverage of interventions that work, knowledge of HIV status and personal risk is low."
By contrast, Ethiopia's HIV prevalence stands at 2.2 percent -- for men. But according to Berhane Kelkay, an Ethiopian AIDS activist, the prevalence rate for Ethiopian women is nearly 20 percent higher.
"The reason why women are more vulnerable is due to early marriages arranged by families in various regions, violence such as abduction, rape and circumcisions. The other reason is also because prostitution is rampant in most towns of the country."
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 03 Jan Kenya introduces new media bill
Kenyan President Mwai Kibaki (pictured) has signed into law a media bill which gives authorities the power to raid media offices, tap phones and control broadcast content on grounds of national security.
Kenyan media organisations and journalists say the law will curtail press freedom.
Kibaki said he had carefully considered the journalists' concerns but added that press freedom must go hand in hand with responsibility.
In a statement, Kibaki said the bill was crucial for Kenya's economic development and that regulating the electronic media would promote and "safeguard our culture, moral values and nationhood".
Reacting to the bill Kenyan Media Owners' Association vice-chairperson Martin Kafafa told Nairobi's Kiss FM radio: "It is just paradoxical that he himself [Mr Kibaki], being a key beneficiary of press freedom, should now be signing a law that muzzles the press."
Kenya's government has insisted it is committed to press freedom but the country's media have feared for its independence since a 2006 raid on a TV station and newspaper offices.
The Standard and its sister KTN TV station were accused of inciting ethnic hatred. The raids by armed and masked police officers followed a series of exposes about official corruption.
During the violence that rocked the country after the 2007 elections, the Kenyan government banned all live broadcasts and call-in shows, citing national security.
Under the new bill, it will be illegal for an individual or company to operate broadcast stations and press publications.
Several media organisations own both TV and radio stations as well as newspapers and publications. Analysts say Kenya boasts one of the region's liveliest and most-developed media scenes.
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19 Dec Zimbabwe introduces $10bn note
Zimbabwe's central bank has introduced a $10 billion note worth less than 20 U.S. dollars, as the country battles spiralling hyperinflation.
The new note, expected to buy just 20 loaves of bread, comes just a week after Zimbabwe issued a $500 million note to ease a cash shortage.
Reserve Bank of Zimbabwe Governor Gideon Gono said the $10 billion note was being introduced for the "convenience of the public ahead of the festive season."
Shortages of most essentials such as electricity, fuel, medicine and food have become a common feature in Zimbabwe, forcing people to flee the country.
Zimbabwe has slashed zeros from the amount of its worthless currency during the past two years -- the latest being 10 zeros in August. Five million people are in need of food aid in a nation that once exported food to its neighbours, the United Nations says.
19 Dec UK PM warns on oil price volatility
Gordon Brown, UK Prime minister, has warned that volatile oil prices remain a threat to the global economy, following the sharp fall in prices in recent months.
Speaking at an energy summit in London today, Brown said the "wild fluctuations" in prices in recent months had damaged the global economy.
He called for improved regulation of oil markets to stabilise prices and investment in clean energy technology.
Oil prices have tumbled from $150 a barrel to below $40 in the past six months. Prices are now at their lowest level since the middle of 2004 after hitting record levels in July.
Brown told energy ministers that the high oil prices of recent years had stoked inflation and forced governments to keep interest rates much higher than would have otherwise been the case.
This had hurt families and businesses, particularly in developing countries dependent on oil imports.
"It is clear that our most pressing challenge is price volatility," Brown said. "Wild fluctuations in prices harm nations all around the world."
Conditions in the global economy have changed dramatically since oil prices reached $150 per barrel. The global economic downturn has forced oil producers' group Opec to cut output levels in an effort to stabilise prices.
However, Brown warned that there was still a threat of oil prices rising sharply again once the economy recovered and it was in everyone's interest to have a more stable price.
Urging a "new partnership" between oil producing and consuming nations, Brown said the "visionary internationalism" that had been displayed in dealing with the global banking crisis must be applied to the world's future energy challenges.
"It would be a huge mistake to fall back on the old ways of the past," he said.
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04 Dec Zambia, AfDB sign $24m loan pact
Zambia and the African Development Bank (AfDB) Group have signed a US$24m Loan Agreement to finance the country's Second Poverty Reduction Budget Support (PRBS) program, which aims at developing the private sector and improving public finance management.
The agreement was signed this week in Lusaka by Zambia's Minister for Finance and National Planning, Situmbeko Musokotwane and the AfDB's representative in Zambia, Vivienne Apopo.
The Zambian government also signed on to the African Legal Support Facility (ALSF), a collective fund set up to assist Regional Member Countries (RMCs) of the Bank in addressing capacity issues while dealing with the growing problem of litigation by vulture funds, as well as to enable them build the technical capacity for complex commercial negotiations.
The ASLF is particularly relevant for countries such as Zambia with natural resource-based economies that are constantly targeted by international speculators.
Musokotwane commended the Bank for spearheading the African Legal Facility, noting that many African countries had lost huge resources in contracts and negotiations mainly due to limited internal capacity to negotiate and conclude beneficial deals for their countries.
Meanwhile, the AfDB says its initiative to build up mutually beneficial links with India was well received during a collaboration with the Export-Import Bank of India in New Delhi and Mumbai, India from 25 to 27 November 2008.
The purpose of the two Business Opportunities Seminars (BOSs) was to inform the Indian Business Sectors of the AfDB's operations and pipeline projects, the current procurement rules and procedures as well as the co-investment opportunities.
Presentations were made in sectors such as Infrastructure, Agriculture, Water, Procurement Procedures and Private Sector operations.
A press releases from the AfDB says the seminar in New Delhi was attended by nearly 70 participants.
“Presentations made by the AfDB staff were greatly appreciated by the participants who testified to the fact that it was indeed informative and enlightening,” the statement said.
“They noted that this will pave the way for further increase in the participation of Indian firms/individuals in the implementation of Bank financed projects, programmes and studies. The Indian companies' share of Bank's procurement was 0.11% in 2006, which has grown to nearly 12% in 2008.”
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02 Dec Ethiopia coffee listed on Exchange
Ethiopia’s coffee producing farmers have started trading their crop on a national commodity exchange for the first time.
The move is aimed at increasing both quality and the amount farmers get paid for their beans as farmers will now be able to get direct access to current market prices. The exchange has set up a network of warehouses to collect the beans.
Trade on the Ethiopian Commodity Exchange will replace the previous, more informal, system of sales through middlemen.
Analysts said the Ethiopian government, which is backing the move, hopes it will prevent fraud, such as traders passing off beans from a lesser growing area as being those from a higher quality region.
The Ethiopian Commodity Exchange which was set up earlier this year, already trades in maize, wheat, sesame seeds and haricot beans.
Ethiopia is the birthplace of coffee cultivation and the crop continues to account for more than a third of its export earnings.
Despite earning $525m (£354m) from coffee exports in the 2007-08 financial year, Ethiopia remains one of the world's poorest nations, and is ranked 170 out of 177 on the United Nation's Human Development Index.
02 Dec Kenya reduces cost of maize
The Kenyan government has been urged to cut maize costs even more, after announcing a drastic reduction in the price of the staple food.
A 2-kg bag of maize was selling at 120 shillings (£1; $1.50) last week - up from some 48 shillings last year.
The authorities have agreed with millers a bag should now sell for between 65 and 72 shillings.
The government has said low-income consumers will be able to buy packets of government-branded flour at 52 shillings per packet under a new pricing system, which is due to come into force over the next five to 10 days.
Prices have been slashed in response to public anxiety over the rising cost of the food, amid shortages from post-election violence earlier this year. The government had already pledged to import a further 5m bags of maize to avert a food shortage caused by the unrest which destroyed fields and forced thousands of farmers to flee their homes.
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26 Nov Nigeria shuts pharmaceutical firm
Nigeria’s National Agency for Food, Drug Administration and Control says that 25 children aged between three months and four years have died after taking contaminated teething syrup.
The agency said it had shut down the Lagos-based manufacturer, Barewa Pharmaceuticals.
It said the syrup, called My Pikin, had been tainted with diethylene glycol. The substance, used in engine coolant and anti-freeze, triggered kidney failure in the children, reports said.
The children died at three hospitals in Lagos, Ibadan and Zaria and at least 10 others are reported to have been brought to hospital.
The NAFDAC said symptoms among the children who had taken the syrup included diarrhoea, vomiting, fever and convulsions, and that they had not been able to pass urine for several days.
The agency said it had first received reports of possible contamination on 19 November and had begun to confiscate the syrup two days later.
"NAFDAC officers nationwide have been directed to mop up all batches of the offending drug from circulation," the agency's head, Dora Akunyili, was quoted as saying.
26 Nov SA opposition laments huge Sangoma bill
South Africa's main opposition party, the Democratic Alliance, has accused the state intelligence services of hiring traditional healers to carry out a spiritual cleansing ceremony at a cost of more than US$70,000.
The Democratic Alliance alleges that the ceremony would be carried out by traditional healers - known as Sangomas, at an office in the capital, Pretoria.
"While we acknowledge the importance of spirituality in people's lives, these costs seem totally disproportionate," the DA's John Moodey said.
There has been no comment so far from the intelligence services.
According to the DA, the National Intelligence Agency (NIA) has asked 25 Sangomas to perform the ceremony.
Each of the sangomas is to be paid 30,000 rand ($3,000, £2,000), the party said.
"One wonders why such heavyweight cleansing ceremonies are necessary and whether this means immoral or illegal acts are being carried out there," Moodey is quoted by South Africa's Times newspaper as saying.
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 18 Nov Case of a missing Nigerian satellite
Nigeria’s House of Representatives has invited the managing director of Nigerian Communications Satellite (NigComsat), Engineer Ahmed El-Rufai, to appear before it on Tuesday to explain the state of the nation's satellite launched about two years ago.
Reports in Nigeria say the public have expressed worry over reports that the satellite launched into the orbit over 18 months ago was missing.
Abiodun Akinlade head of the House Committee on Science and Technology said at the weekend that the nation needed to know what actually happened to the project that cost tax payers about N40 billion.
Akinlade said: "The report of the missing satellite is disturbing; it is in fact a national disgrace; but we would not comment further until we get briefed by the managing director."
Recent reports said the satellite ran into a series of problems when it was discovered that it was using a technology designed for Asia and not for Africa, just as there have been fears that the materials used in the project are questionable.
The China Great Wall Industry, the firm that was commissioned to build the satellite, was said to be having problems fixing the solar panel before the managing director pressured it for the launching of the second satellite.
Before the launching of the satellite, Nigerians were told that the nation would earn over $1billion from the project. The bulk of the revenue was expected to come from the sale and leasing of transponders from NigComsat.
18 Nov Ecowas protests exclusion from G20
The Economic Community of West African States (ECOWAS) has lamented the fact that its representatives were not invited to the recent Global Economic Summit which was organised by leaders of the world's developed economies (the G20) in New York.
Speaking in Abuja, Nigeria, Director General of the West African Monetary Agency (WAMA) Professor Mohamed Ben Omar Ndiaye, said the global financial crunch came as a result of the financial mismanagement by the international community, with negative effects on the West African sub-region.
He said, "We are left out of the G20 meeting even though we bear the brunt of the crisis. The 15 member countries of WAMA are meeting here in Abuja to deliberate on the way forward. We are having financial crisis, our institution is having problem. There are problems of mistrust, fear and doubt. We hope to resolve our problems. WAMA is open for suggestion and we hope there will be honest suggestions in this meeting."
The President of the General Assembly of the United Nations, Father D'escoto Brockman, has also condemned the summit for being selective.
ECOWAS's Director for Multilateral Surveillance Dr. Lasane Kabore, in his speech, appealed to the delegates to deliberate with an open and objective mindset and put regional interests above national interests.
He said the ECOWAS' vision 2020, which sought to create ECOWAS of peoples through the creation of a single economic space in which people transact business and live in dignity and peace under the rule of law and good governance must be enhanced.
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16 Nov Bank workers want salaries in forex
Workers in the Zimbabwe financial services sector are demanding that their November salaries be paid in hard currency, prompting fears that they may down tools at a time when the sector is virtually under siege from clients who are unable to access cash.
A report in Zimbabwe’s Financial Gazette said there is a deadlock in negotiations between the Zimbabwe Bank Workers Union (ZIBAWU) and the Bankers Association of Zimbabwe (BAZ) over the issue.
Analysts said failure to break the impasse could force the two parties to refer the dispute for arbitration.
Most goods and services in Zimbabwe are now retailing in foreign currency even though the country's laws criminalise the use of foreign currency as legal tender.
Only a few companies, licensed by the central bank, are allowed to sell their goods in foreign currency.
Sources said around 7,000 bank workers in the country are demanding not less than US$1,200 per month, a similar amount that teachers are demanding from government.
BAZ chairman, John Mangudya told the press that while the negotiations were underway, it was not possible for banks to pay workers in foreign currency because "all our earnings are in local currency".
ZIBAWU has however, vowed it will only relent if the BAZ agreed to pay part of their salaries in foreign currency and the remainder in Zimbabwean dollars.
Last month, most bank employees took home between Z$15 million and Z$20 million, not enough to buy a single US dollar using the cheque rate. This has riled ZIBAWU, which claimed this week that the sector has lost more than 3,000 workers to greener pastures in the past 12 months.
Meanwhile, Zimbabwe police are reported to be stopping people on their way to the airport and taking foreign currency, cell phones and any other valuables in their possession.
Source said uniformed Zimbabwean police set up road blocks on Saturday morning specifically targeting taxis and commuter omnibuses on their way to Harare airport.
”People were being herded out of the vehicles and searched by the police,” a witness said. “Any foreign currency or cell phone in their possession was taken. Two foreigners a Malawian and a Nigerian lost US$250.00 and ZAR300.00 respectively. No reasons were given by the police for the seizures.”
With an inflation rate of 13.2 billion and an economy that is now almost completely based on the US dollar, Zimbabweans are struggling to survive.
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12 Nov UN to cut Zimbabwe food aid rations
The UN food agency will start cutting rations to four million people in Zimbabwe because of a lack of funds.
The World Food Programme said it had had no response to its October appeal for $140m (£91m) to feed Zimbabwe.
The WFP has warned that food could run out entirely in Zimbabwe by January unless fresh support is provided, as it takes six weeks for supplies to reach rural areas.
The agency said up to half the 10m Zimbabwean population may need food before the next harvest is expected in April.
The WFP said it had cut each person's monthly cereal ration to 10kg (22lb) from 12kg, and the pulse ration to 1kg from 1.8kg, to make current stocks last longer.
WFP spokesman Richard Lee has warned that the situation would become "critical" in many parts of the country in the coming months.
"We're already hearing stories about families living on at most one meal a day, children going into the bush to search for wild food and wild fruit," Lee told the BBC's Focus on Africa programme. "It's a very serious situation and we're still four-and-a-half months away from the next harvest."
The WFP fed 2m people in October, the first month of a large-scale aid project, but the figure is expected to rise to 5.1m by early 2009.
Once hailed as a model economy and a regional breadbasket, Zimbabwe's fortunes have nosedived since 2000 when Robert Mugabe seized white-owned farms. Lee said drought and inadequate farming inputs were also to blame.
"Large numbers of people in rural areas harvested little, or nothing, this year because of a drought, because of a lack of seed, because of a lack of fertiliser and other inputs," he said.
Lee said Zimbabweans in the towns as well as the countryside were experiencing problems.
"The economic collapse in Zimbabwe has affected people across the country, and also in urban areas, so we are seeing large numbers of people across the country who simply cannot access enough food for themselves and their families, and require international assistance to see them through to the next harvest in April 2009."
The country is also hit with inflation running at a staggering 231,000,000%, and a breakdown in basic services has led to deadly outbreaks of cholera in the capital Harare.
Western nations have said they are ready to release hundreds of millions of dollars in aid, but not while Mugabe retains his grip on power.
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04 Nov Missing cash in Zimbabwe malaria fight
Political corruption in Zimbabwe threatens efforts to save millions of people from malaria in the southern African country, according to aid agency officials.
The Global Fund to Fight AIDS, Tuberculosis and Malaria has demanded that Zimbabwe's government return $7.3 million placed in the country's reserve bank to pay for the distribution medicine that can cure malaria, according to the group's spokesman.
A senior western diplomat in Zimbabwe told the press he believes the money was taken by Robert Mugabe's government to fund political activities. He accused reserve bank governor Gideon Gono of involvement.
"This could put millions of people in Zimbabwe at risk of malaria in the current malaria season," said John Linden, spokesman for the group which is a leading international financing institution for those diseases.
Linden said his group has given Zimbabwe until Thursday to repay the money or else no more aid will be sent to the country.
"At this stage we do not have confidence in the reserve bank's ability to release the money when needed, so we have demanded that all the money be released immediately," Linden said.
The money was intended to train thousands of health workers to distribute the malaria cure, medicine that is already available but sits on shelves.
04 Nov Zimbabwe sells 3.5 tonnes of ivory
Zimbabwean officials say they have sold some 3.5 tonnes of ivory for over US$450,000, with the money earmarked for the country's cash-strapped wildlife authority.
Monday's sale in the Zimbabwean capital, Harare, is part of a string of elephant ivory auctions being held in the region for the first time in a decade.
Last year, the Convention on International Trade in Endangered Species ruled that Botswana, Namibia, South Africa and Zimbabwe could sell some 97 tonnes of stockpiled ivory to approved Japanese and Chinese buyers.
Once known for its natural beauty and wealth of wildlife, Zimbabwe's economic crisis has left the country's parks open to poaching by increasing hungry Zimbabweans looking for alternative sources of food.
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 23 Oct African free trade zone for 26 states
Three trading blocs in Africa on Wednesday agreed to create a free trade zone of 26 countries with a GDP of an estimated $624bn (£382.9bn).
The three blocs which struck the deal were the Southern African Development Community (SADC), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (Comesa).
Analysts say the agreement will help intra-regional trade and boost growth by easing access to markets within the region and ending problems arising from the fact that several countries belong to multiple groups.
The deal also aims to strengthen the bloc's bargaining power when negotiating international deals.
Six heads of state from 26 countries in Comesa, SADC and the EAC attended the meeting in the Ugandan capital, Kampala, to sign the agreement.
Ugandan President Yoweri Museveni said that it was a step in the right direction for a continent that suffered unfairly when it came to global trade.
"The greatest enemy of Africa, the greatest source of weakness has been disunity and a low level of political and economic integration," said Museveni at a meeting with the heads of state who chair the three trade blocs.
"By coming together, the member states will have a strong voice in advancing our interests on the international scene," said South African President Kgalema Motlanthe.
SADC was first established as the Southern African Development Coordination Conference in 1980 in order to reduce independence on apartheid South Africa. The name was changed to SADC in 1992. The bloc covers a population of some 248 million people and a zone whose cumulative GDP was $379bn in 2006. SADC's members include South Africa, Tanzania, Zambia and Zimbabwe.
Comesa was established in 1994 and replaced the Preferential Trade Area. It includes 398 million people and the area has a combined GDP of $286.7bn in 2006. Among its members are Zimbabwe, Zambia, Uganda and Sudan.
EAC is the smallest of the group in terms of GDP, and had a GDP of $46.6bn in 2006. Set up in 1967, disagreements between founding members Uganda, Kenya and Tanzania led to its collapse. A treaty was signed for its re-establishment in 1999 and the new EAC was formed in 2000.
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15 Oct Tanzania malaria pill ‘can save lives’
Researchers in Tanzania say a cherry-flavoured pill which is easy to swallow could help save the lives of children in malaria-affected areas in Africa.
According to the researchers, the tablet is not as bitter as other anti-malaria drugs and does not need to be crushed before it is ingested. This would make it easier for children to stick to the treatment, the team told the medical journal, The Lancet.
Malaria kills more than a million people every year, many of them young children in sub-Saharan Africa.
There is no vaccine for malaria but it is curable if treated promptly. However, drugs currently used to treat it are very bitter and often need to be crushed before children can swallow them, which can weaken the medicine.
Salim Abdulla of the Ifakara Health Institute in Tanzania said the new cherry-flavoured pill was easy to administer and effective.
Health experts say the pill could help to promote better outcomes from treatment and delay the development of drug resistant strains of the disease.
15 Oct SA minister urges for HIV vaccine
South Africa's new Health Minister, Barbara Hogan, has called for a renewed global effort to find a vaccine for HIV, which can lead to Aids.
Addressing an international Aids vaccine conference in Cape Town on Monday Hogan said time had been wasted in the country's battle against Aids. "We know that HIV causes Aids," Hogan said. "It was imperative to get ahead of the curve of this epidemic 10 years ago. We all have lost ground. It's even more imperative now that we make HIV prevention work. We desperately need an effective HIV vaccine."
Hogan said it was unquestionable that HIV caused Aids and conventional medicines were the best treatment. This comes in sharp contrast to her predecessor, Manto Tshabalala-Msimang, who spent years resisting the introduction of anti-retroviral drugs.
Around 5.5 million South Africans have HIV - more than in any other country.
Dr Tshabalala-Msimang earned the nickname "Dr Beetroot" for advocating healthy eating, as an alternative to ARV drugs.
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10 Oct Don’t cut aid to Africa - Kikwete
Jakaya Kikwete the president of Tanzania who is also the chairman of the African Union has appealed against any cut in aid following the global financial crisis.
Kikwete said his country and other developing states were "deeply concerned" about the crisis.
"Our appeal to our development partners is that they should not cut aid to the developing countries," Kikwete said. "Tanzania and other developing countries are deeply concerned with the current financial crisis coupled with skyrocketing oil and food prices."
Financial experts say Africa is relatively sheltered from the global financial crisis, but there could be an impact on investment, remittances and aid.
Kikwete said he hoped that the global economic meltdown would not ultimately affect aid.
"Our expectation is that the financial crisis in Europe and America, and now the huge sums of money that are being spent to bail out the banks, would not impact negatively on development assistance to Africa," Kikwete said.
10 Oct Nigeria moves to stem financial crisis
Nigeria’s President Umaru Musa Yar'Adua has called for close collaboration between the government and private sector in order to tackle the effects of the current global financial crisis.
However, the country’s Secur-ities and Exchange Comm-ission (SEC) insists that the Nigerian capital market is not suffering from any crisis.
The Council of the NSE had last Tuesday approved plans by six banks - namely First Bank of Nigeria Plc, Union Bank of Nigeria Plc, Zenith Bank Plc, Intercontinental Bank Plc, United Bank for Africa Plc and GTBank Plc - to pump N600 billion into the market. Each bank is expected to bring in N100 billion.
Analysts said with four more banks expected to join the discussions, the proposed bail-out package could increase to N1 trillion.
On Thursday, Nigeria’s stock market depressed further as the NSE All-Share Index fell to 44,638.26, while the capitalisation closed at N9.505 trillion. This indicates that the market of the NSE has lost over N3 trillion, falling from a peak of N12.6 trillion since the bears set last March.
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08 Oct Oxfam urges arms trade control
Oxfam, the UK-based charity, has condemned the lack of an international treaty to control arms trade in a report entitled: ‘The case for touch international arms control.’
Announcing the launch of the report on BBC today, Oxfam’s Debbie Hillier said there was an urgent need for such a treaty because “irresponsible arms trade transfers undermine the fight against poverty.”
“We are not suggesting that all arms trade is irresponsible or inappropriate,” Hillier said. “But it is incredible that there is still no international treaty over weapons. There are more trade rules in the WTO on tomatoes than there are on weapons.”
An average of US$22bn a year is spent on arms by countries in Africa, Asia, the Middle East, and Latin America – a sum that would otherwise enable those same countries to be on track to meet the Millennium Development Goals4 of achieving universal primary education (estimated at $10bn a year) as well as targets for reducing infant and maternal mortality (estimated at $12bn a year).
“The world’s most powerful governments, who are also the world’s biggest arms suppliers, have the greatest responsibility to control the global trade,” the report says.
The five permanent members of the UN Security Council – France, Russia, China, the UK, and the USA – together account for 88 per cent of the world’s conventional arms exports.
Hillier noted that since most arms trade is “shrouded in secrecy,” the movement of weapons creates corruption and undermines sustainable development in countries caught up in armed conflict.
“Oxfam and Amnesty International are witnesses to widespread abuses of human rights, which are directly and indirectly attributable to the proliferation of weapons,” the report says.
“Weapons in the wrong hands prevent access to hospitals, productive land, education, and markets, with short-term effects such as malnutrition and high rates of child mortality, as well as longer-term effects including illiteracy, higher risks of disease outbreaks, poverty, and poor governance. The culture of violence feeds upon itself."
In the Democratic Republic of the Congo (DRC) for instance, more than three million civilians have been killed or have died from hunger and disease as a consequence of the conflict in the DRC since August 1998.
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07 Oct EU opens ‘Job Centre’ in Africa
The European Union has opened its first immigration centre outside Europe, in Mali's capital, Bamako to help people find legal work in Europe and cut down on illegal migration.
Thousands of young West Africans try to make it into Europe illegally each year and many die on the way.
The EU says the new centre will offer guidance on legal migration and help with job training and the search for work abroad. It will also raise awareness about the dangers of illegal migration.
The EU has stressed that no specific job vacancies will be on offer at the centre. However, Spain is already offering seasonal contracts in Senegal for picking fruit or working in hotels to several hundred people each year.
Patrick Taran, a migration expert at the International Labour Organization, said Europe - with its ageing workforce - is increasingly realising it needs workers of different skill levels.
"It makes a lot more sense for people to come through legal channels so that their rights are protected and they can demand and receive fair pay for their work," he said.
Mali is at the centre of well-established migration routes. Thousands of young West Africans set off from the north of Mali each year across the Sahara Desert towards Europe.
Last week, the Spanish coastguards rescued a group of 230 young Africans - the largest single boatload of illegal immigrants to reach Spain.
07 Oct Zimbabwe into ‘information dark ages’
Zimbabwe's economic catastrophe is plunging the country into an "information dark age" as newspapers, radio and television become overwhelmed by multimillion percent inflation and the breakdown of infrastructure, according to media analysts.
Newspapers have become too expensive for all but a tiny minority, while the state-controlled radio and television monopoly services are stricken by
chronic power cuts, says the independent Media Monitoring Project of Zimbabwe (MMPZ).
The state-controlled and subsidised Herald newspaper, the only national daily, soared to Z$3 000 on Saturday from Z$10 on August 1, when the central bank slashed 10 zeros off the currency.
For that price, a hungry Zimbabwean can get two loaves of bread.
Zimbabwe is classified by the New York-based international Committee to Protect Journalists as among the 10 worst countries for hostility to freedom of the media.
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 02 Oct SA unveils electric car in Paris show
Optimal Energy, a privately owned South African company will today make history by unveiling Africa's first locally developed electric car at the Paris Motor Show in France.
South Africa’s Science and Technology Minister, Mosibudi Mangena, will preside over the unveiling of the car named "Joule." The car has been named after British physicist James Prescott Joule, who was best known for his research in electricity and thermodynamics.
Analysts said the ultra sleek zero-emission car is Africa's answer to climate change.
Joule is a six-seater multi-purpose vehicle (MPV) designed by Optimal Energy in association with legendary South African-born automotive designer, Keith Helfet.
Optimal Energy, which specialises in optimal solutions for urban transport, was capitalised with a R50 million investment.
In a statement, CEO of Optimal Energy Kobus Meiring said: "The world's finite energy sources are being used inefficiently and urban transport plays a major role in energy wastage and climate changing pollution."
"Joule's value proposition is made more compelling when environmental influences such as increasing pollution and global warming phenomena caused by the rapid increase in urbanisation are also considered," he said.
Using a normal 220 Volt home outlet and Joule's onboard charger, it will take approximately seven hours to recharge Joule's battery for a 200km driving range, with two packs providing 400km in total.
Joule's large battery bay is able to accommodate a number of different battery configurations from different suppliers, giving the customer the choice of performance and cost.
Electric cars only require about 20 percent of the energy that conventional cars require; meaning that the total emissions are much less, even if Eskom's coal dominated electricity is used.
With the global trend of electricity generation becoming more renewable and cleaner, total emissions caused by electric cars will continue to shrink.
Gauteng is currently being evaluated for Joule's first assembly plant as it has the biggest cities and has expressed interest in placing the first fleet orders.
Although supplier lists are not yet final, it is expected that the local content of Joule will be more than 50 percent.
Joule will be sold in all major South African cities, such as Gauteng, Cape Town and Durban, however South Africans will have to wait two years before seeing it on our roads. It will only be available towards the end of 2010.
02 Oct UN warns of Zimbabwe food crisis
About half the population of Zimbabwe could soon be in need of constant food aid and medical assistance, according to the UN.
In an interview with the BBC, John Holmes, UN’s humanitarian chief, said three million people in Zimbabwe were already reliant on aid, and that
figure could rise to five million.He said the situation was already grave and deteriorating.
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01 Oct Nigeria recovers $3.4bn govt funds
Nigeria has recovered of $3.4bn (£1.9bn) of government funds over the past year, according to President Umaru Yar'Adua.
Yar'Adua revealed the details during his address to mark Nigeria's 48 years of independence, saying it was proof his government had a zero-tolerance against corruption.
This year Nigeria was ranked the world's 60th most corrupt country out of 180, ahead of Equatorial Guinea, Iraq, Somalia, Zimbabwe and Afghanistan, amongst others.
Nigeria is the world's eighth largest exporter of crude oil, shipping millions of barrels every day. According to analysts at Standard Bank, the country has earned $1.19tr in oil revenue over the past 37 years. However, most of its 140m people live in poverty.
After he was elected last year, Yar'Adua demanded ministries return all unspent money in their budgets to the treasury. Political analysts say in past administrations, Nigerian ministries were often suspected of filing bogus contracts to steal money.
While Yar'Adua acknowledged that there were no quick-fix solutions to Nigeria's deep rooted problems of corruption, poverty and poor infrastructure, he said political stability and strong economic growth had put the country on course to become one of the world's 20 biggest economies by the year 2020.
In April two ministers, a senator and nine civil servants were charged with fraud and benefiting from the proceeds of crime. Government prosecutors said they had not returned $2.5m (£1.4m) from the health ministry budget to the treasury.
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25 Sept EU gives $14.7m to Zimbabwe
The European Union on Thursday boosted its humanitarian aid to Zimbabwe by 10 million euros (US$14.7m), largely for health care, water and sanitation.
A statement from the European Commission said the latest fund, which comes in the wake of an earlier gift of 15 million euros in food aid, is to “tackle the suffering among the most vulnerable population groups affected by displacement, epidemics and violence.”
Since 2005, the EU has allocated more than 82 million euros in aid to Zimbabwe while keeping up a raft of sanctions against the regime of Robert Mugabe.
EU foreign ministers had been set to toughen the sanctions on September 15, but the signing that day of a power-sharing deal between Mugabe and his pro-democracy challenger, Morgan Tsvangirai, led them to postpone the decision.
The bloc is keeping up its pressure on Mugabe, however, insisting that his regime give aid workers full access to the hardest-hit parts of the country.
”The EU's humanitarian assistance is neutral and impartial and not an instrument of politics. I expect all restrictions on humanitarian operations
to be totally lifted as a result of the recent political settlement,” EU Aid Commissioner Louis Michel said.
25 Sept Mujuru calls for more farmers
Zimbabwe Vice president Joyce Mujuru – allegedly opposed to President Robert Mugabe's continued stay in power - said the country should have more farmers than soldiers.
Addressing a rally in Chiredzi where she had gone to commission farming equipment to sugarcane farmers and irrigation schemes, last weekend Mujuru said: "It is surprising to see a nation with many soldiers who out-number farmers, who are the backbone of the economy. We should not have more soldiers than farmers.
“The problem is that many of our leaders only come to the people when it is election time, so they would not know what the people want...Anyway, I came to see the situation on the ground," she said.
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19 Sept Nigerian rebels ‘blow up oil pipeline’
Nigeria's main militant group, Movement for the Emancipation of the Niger Delta (Mend) claims to have blown up another pipeline in the oil-producing Niger Delta.
Mend released a press statement saying it had used explosives to attack a pipeline operated by Shell. There was no independent confirmation of the claim by Mend who declared "war" on Nigeria's oil industry on Sunday.
Meanwhile, government officials say militants have freed two South African workers kidnapped last Saturday.
Analysts said if the pipeline attack is confirmed, the sabotage would be the fifth attack since Sunday's declaration by the militants who claim to be fighting for greater control over oil wealth in the impoverished Niger Delta.
Nigeria's oil production has been cut by 20% because of unrest in the region over the past few years.
Independent reports in Nigeria say the militants have attacked gas plants, oil installations and pipelines over the last six days - part of an oil war declared after a rare but fierce military raid on one of their bases.
Reports of the attack on the pipeline in the east of the Delta came hours after the new Nigerian defence chief visited the region. Air Chief Marshal Paul Dike reportedly encouraged the troops in what was termed their "battle against criminality".
In a separate development, Mend said it had handed over two South Africans it claimed to have rescued from "sea pirates" to the Nigerian authorities in Port Harcourt on Thursday night.
South African Foreign Affairs department spokesperson Ronnie Mamoepa said the high commissioner in Nigeria had confirmed the release. The South Africans were among 27 people, including two Britons, seized from an oil services ship.
The recent fighting is some of the heaviest in the last two years.
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11 Sept Zimbabwe shops licensed to accept US$
Gideon Gono, Zimbabwe’s Reserve Bank governor and a key player in the ruling Zanu-PF party, has licensed 250 wholesalers and 1,000 retailers in the country to sell their goods in foreign currency as an 18-month "experiment".
Analysts say the move is a final humiliation for Zimbabwe's battered currency, which was
worth more than the US greenback at independence in 1980.
Even after two revaluations that have knocked a total of 13 zeros off the Zimbabwean dollar, it was trading on the black market on Wednesday at around 6,000 to the USD – or 60,000,000,000,000,000 to one in terms of the original Zimbabwe dollar.
"These reforms are essentially a pragmatic response to the realities in the economy," Gono said. "We have watched and observed with heavy hearts the suffering of fellow Zimbabweans as they wait and continue to wait in long queues at the borders as they bring in basic commodities.
"We have also seen desperate mothers, youth and the elderly spending cold nights in foreign lands as they seek for basic commodities."
Mugabe consistently blames western countries such as the USA and UK for Zimbabwe’s economic woes, while analysts lay the blame on his government’s mismanagement of the economy, typified by the unregulated seizure of white-owned farms from 2000 onwards, which destroyed commercial agriculture, the mainstay of the economy.
Since 2000, Zimbabwe’s economy has spiralled downwards, with millions leaving in search of work abroad, particularly in South Africa. Officially, inflation in Zimbabwe is now running at 11.2 million per cent – unofficial estimates put it much higher.
Banknotes are in short supply - the most recent revaluation last month was accompanied by the issue of a new currency, but prices have kept soaring and the government's standard fallback position of recent times, printing ever more currency to meet its needs, has been stymied by the German company that supplied its banknote paper stopping its shipments.
"Some of you may ask, 'are we now trying to dollarise the economy?' No, the Zimbabwe dollar remains the legal tender," Gono insisted.
Analysts say de facto dollarisation has been under way for weeks and months, as carrying ever-larger bundles of Zimbabwe dollar notes is inconvenient for shoppers, let alone businesses. The US dollar and South African rand, along with fuel coupons, are far more useful alternatives which will not lose half their value in a matter of days.
The move is also partly an attempt to bring more foreign currency into the government's own depleted coffers - by legalising the trade, it hopes to move business from the black market to official channels, where it will collect 25 per cent of private companies' export earnings and 15 per cent of
domestic traders'.
John Robertson, an independent economist in Harare, said: "They can't physically print enough Zimbabwean money, I think this is what's caught them out. They seem to have run out of other options so the use of somebody else's money seems a good idea.”
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08 Sept Kenya maize shortage forecast in 2009
Kenya is likely to face a maize shortage by mid next year, as the country's stock would have dwindled to less than a month's supply of grain, according to the Regional Agricultural Trade Intelligence Network.
The network is a USaid-funded project comprising the Famine Early Warning Systems Network Project (FEWS NET) which focuses on crop production and trade data, and the Regional Agricultural Trade Enhancement Support Program (Rates) which deals with changing trade policy to enhance regional trade in maize.
Kenya consumes around 270,000 metric tonnes a month and national stocks are expected to drop to about 163,000 metric tonnes by end of June 2009. This means Kenya will face a grain shortage estimated at 136,500 metric tonnes by mid 2009.
The Network says Kenya needs to plan to import maize to cater for the period between July and October, 2009, when the next big maize harvest will be expected.
In August, the average wholesale maize price in
Nairobi, Dar es Salaam and Kampala saw the lowest price in Dar es Salaam at $240 per metric tonne and the highest in Kigali at $362 per metric tonne. In Nairobi, it was $341 per metric tonne while in Kampala the price was $257 per metric tonne.
Economists say the drop in the wholesale maize and beans prices in Dar es Salaam was as a result of harvesting in most of the growing areas in Tanzania.
In June, prices of maize dropped by about 12 per cent in Dar es Salaam compared with January 2008, but have remained relatively stable at $240 per metric tonne and are not expected to drop much further.
The price statistics maintained by Ratin also point to the fact that wholesale prices in Kampala have also dropped since mid-June following the onset of the harvesting season.
According to information by Ratin monitors in Busia, maize supplies to the district have increased following the high demand by Kenyan traders.
Maize from Uganda through Busia is going all the way to Nairobi and parts of eastern Kenya in areas such as Meru, Machakos and Isiolo.
The increased maize supply necessitated the drop in prices at Busia from $370 per metric tonne in July to $318 per metric tonne in August.
In Nairobi, wholesale maize prices which have been rising since February 2008 are currently dropping. The estimated rise in price between February and May 2008 was 60 per cent while the drop since June has been 10 per cent.
According to some sources, Kenya is importing 4,500 metric tonnes (50,000 90-kg bags) of maize from Tanzania and another 135,000 metric tonnes (1.5 million 90-kg bag) of maize from South Africa.
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02 Sept Food aid in Zimbabwe still under leash
The lifting of a ban on food aid in Zimbabwe has not removed tight government controls, according to Aid agencies in the country.
In an interview with the BBC, Fambai Ngirande, a spokesman for Zimbabwean aid groups, said hopes that the government meant well by lifting the ban "were dashed", and that agencies have been ordered to submit information on their staffing, equipment and operations or risk being barred.
The government imposed the ban ahead of the presidential election in June, saying aid was being used politically. Aid agencies have always denied government charges that they were helping the opposition MDC in the campaign.
Ngirande told the BBC's Network Africa programme that government officials made repeated threats - to investigate aid agencies or strike them off the register - at a meeting on Monday to explain the conditions for lifting the ban.
He said police officers were present, and that all aid distribution would have to be done in conjunction with local officials. An official from the Social Welfare ministry, Lancaster Museka, told the state-owned Herald newspaper that aid agencies would have to fill in forms detailing all the money they had received and how it had been used.
The form must also list where and when they have distributed food aid, he said. The form must be signed by the agency's head, who can be prosecuted if any information is inaccurate, according to a report in the state controlled Herald newspaper.
Meanwhile, agencies have warned that Zimbabwe's maize harvest this year has been the worst on record and that by the end of the year, more than five million people- almost half the population - could be dependent on food aid. Talks to resolve Zimbabwe's economic and political crisis remain deadlocked.
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29 Aug Zimbabwe inflation to hit one billion
Inflation in Zimbabwe is predicted to reach one billion percent by the end of the year, unless a political solution is forged between Robert Mugabe's ZANU-PF and the Movement for Democratic Change (MDC) led by former trade unionist Morgan Tsvangirai, analysts said this week.
Inflation data released by the country’s Central Statistical Office (CSO) this week put year-on-year inflation for June at 11.27 million percent, the highest in the world and quite unusual for a country not at war. The previous month, the rate had reached 2.2 million, which means it accelerated by a massive 839,3 percent.
Analysts say the latest inflation figure is an indication that Zimbabwe’s economic meltdown is worsening with no signs of a respite.
Much of the inflation crisis stems from the excessive money supply growth and the funding mechanisms of the budget deficit. But economists believe the actual inflation figure is higher than the official figures.
One analyst said the core problem was that Zimbabwe's manufacturing sector had ground to a halt and that money supply was at very high levels. Critics have accused President Mugabe's government of printing money to finance an election campaign and prop up the economy, fuelling hyperinflation.
With almost 80 percent of the country’s workforce unemployed, staple foods such as maize, sugar and other basic foodstuffs are in short supply. On July 30 Zimbabwe Reserve Bank governor Gideon Gono re-denominated the Zimbabwean dollar currency by slashing 10 zeros. However, the move has had no effect on stemming the devaluation of the currency.
When it was re-denominated the Zimbabwean dollar was trading at $140 billion to the United States dollar, or $14 in the re-denominated currency.
Currently the unit trades at $100 to the greenback, or $1 trillion in the old currency. This week, the Zimbabwe Economics Society (ZES) said any delay in arriving at a solution to the political impasse that represents the will of the people might worsen the economic situation.
"We want to make a clarion dismissal of talks that build on the foundation of the June 27, 2008 presidential run-off poll results, that in fact was a one-man election," said ZES president Lovemore Kadenge.
"We as ZES want to argue that the talks should not be an issue of power but democracy, human rights, freedom, justice and economic development. The suffering we currently see was borne out of gross macroeconomic mismanagement. In as much as ZANU-PF's economic models have plundered the nation, it is necessary that they acknowledge responsibility for the economic woes and concede defeat. We expect the greatest degree of compromise from ZANU-PF. That and that alone is a litmus indicator of true patriotism," said Kadenge.
John Robertson, a Harare-based economist said the skidding exchange rate was worsening the inflation outlook.
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13 Aug Malawi traders 'hoard' maize
Malawi's traders are anticipating that maize prices will rise later in the year and are holding on to stocks, pushing up the price for consumers, according to reports in the country.
A commodity analyst in Malawi said although the government and food aid agencies have projected a food surplus, some traders have begun hoarding maize, expecting prices to go up even further during the lean season from December 2008 to March 2009. The main maize harvest in Malawi takes place between March and July.
The USAID-funded Famine Early Warning Network (FEWS-NET) projects that the harvest would be less than initially estimated.
"Heavy speculation of localised food shortages have resulted in heavy competition for maize purchases and an increase in maize prices compared to what is normally expected at this time of the season," said FEWS-NET.
Reports said the price of maize across Malawi shot up from K17 (US$0.11) per kg around early January to K45 ($0.31) per kg last month. Some private traders are paying suppliers K3,000 ($21) per 50kg bag and reselling it to the public at K3,500 ($24.55) and even K4,000 ($28).
Malawi's deputy agriculture and food security minister Frank Mwenifumbo, recently told parliament that the country would produce a maize surplus of 500,000mt.
Furthermore, Mwenifumbo said government did not have a hand in the price of maize. "We are suffering because of a liberalised economy, but we won't sit back and watch traders dictating prices to us. We are working on drastic measures that will make maize a protected produce and a property of the Malawi government," he said.
Grace Mhango, president of Malawi’s Grain Traders Association, admitted that some traders were hoarding maize with a view to selling it at a higher price when the situation worsened.
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06 Aug SA unions protest rising cost of living
A one-day strike organised by Trade unionists in South Africa to protest against the high cost of living has caused widespread disruption throughout the country, according to reports.
Unionists called for strike action in all of South Africa's nine provinces, with the Congress of South African Trade Unions (Cosatu) mobilising two million members to protest against the high cost of living.
Reports said public transport was affected across the country, with long queues forming for buses and taxis in Johannesburg. Public transport network has been severely disrupted, with a knock-on effect on schools, mines and carmakers.
A BBC video, showed thousands of demonstrators waving sticks and singing outside the Pretoria city hall. Analysts said although the march was meant to focus on the cost of electricity, the banners and chants show that for most, this is a chance to vent their anger at steep rises in the cost of food and fuel.
Patrick Craven of Cosatu told the press that the strike encompassed rising costs across the board. "It has to be seen in the context of all the other increases in prices which clearly make the electricity tariff that much more difficult to bear, particularly the food price increases, the fuel price going up and the rise in interest rates," he said.
Cosatu, an ally of the governing African National Congress (ANC), said the strike would be a warning to employers who may want to sack workers because of a downturn in profits due to a power supply crisis.
Cosatu has urged the government to subsidise essential commodities and demands higher wages for workers.
The union said it is determined to put helping the poor at the top of the political agenda.
Among the businesses that could face stoppages are carmakers, textile factories, and the construction of stadiums meant for the 2010 Soccer World Cup. Workers and students are expected to stay at home if public transport is disrupted.
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24 July East Africa faces hunger - Oxfam
Millions of people in East Africa face the risk of severe hunger and destitution, due to rising food prices, UK-based charity Oxfam has warned.
Droughts, war and poverty have put an estimated nine to 13 million people in the region in urgent need of humanitarian assistance, it says.
The situation has been made worse by rising food prices, with wheat and rice particularly expensive.
Reports say some people have started to eat animal feed.
Oxfam says many people in the remote north-eastern Afar region raise animals for a living but many camels have died and the goats are starting to succumb to hunger too.
This means it will be difficult for the people to rebuild their herds - and their lives.
The last rain fell in the area 11 months ago and this is the second serious drought in the region in three years.
Analysts say the combination of rising food prices and animals that are dying and falling sick could push peasant farmers over the edge.
Oxfam is calling on donors to increase aid levels to the region.
"The cost of food has escalated by up to 500% in some places, leaving people who have suffered drought after drought in utter destitution," says Oxfam's Rob McNeil, who has just returned from the Somali and Afar regions of Ethiopia.
"Some of the roads we travelled on were littered with dead livestock. There is little or no pasture or water for the animals that people rely upon. People are increasingly becoming desperate."
The call follows another warning on Tuesday from the UN World Food Programme, saying that more than 14 million people in the Horn of Africa needed food aid because of drought and rising food and fuel prices.
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17 July UK offer on Nigeria oil problem blasted
An offer from the UK government to provide Nigeria with military training to secure oil supplies in the Niger Delta, has been condemned in Nigeria.
British Prime Minister Gordon Brown offered military training to Nigeria's President Umaru Yar'Adua to help fight militants and oil smugglers.
But activists said more military action would result in more militant groups springing up to oppose it.
Yar'Adua says there is a cartel dealing in "blood oil" from Nigeria. He says this trade is behind much of the violence in the oil-producing Niger Delta.
Attacks on oil installations has been partly responsible for cutting Nigeria's production by about 25%.
The Delta's most publically visible group, the Movement for the Emancipation of the Niger Delta (Mend) also condemned the UK's offer. "Without justice, security and peace will be elusive. Mend will ensure that," spokesman Jomo Gbomo told the BBC.
"Mend is aware that its actions have forced the system to focus on the region and will continue our armed agitation side by side with talks until we achieve our objective."
Patrick Naagbanton, of the Centre for Environment, Human Rights and Development (CEHRD), said Mr Brown did not understand the problems of the Niger Delta.
"He's acting on the spur of the moment. He needs to have a better understanding of the situation," Naagbanton said. "It will just lead to a mushrooming of hardened armed groups."
Dimieari Von Kemedi of the Bayelsa State government said military training would not solve the problem of oil theft. "If the UK wants to help with that, Scotland Yard [police] - not the Ministry of Defence - would be the right people to do it," Kemedi said.
Oil smuggling is extremely profitable in Nigeria and involves highly placed corrupt politicians, military officers, government officials and oil company employees.
Oil is stolen by breaking into pipelines and filling barges which then rendezvous with tankers on the high seas. The illegal oil is then mixed with other legitimate cargoes and sold for an enormous profit by unscrupulous traders - who pay for the oil partly with weapons, analysts say.
Many armed groups in the Delta provide "security" for the smuggling rings, also known as "bunkerers".
Niger Delta politician Patrick Dele Cole, a minister under former President Olusegun Obasanjo, says that the trade could be cracked by chemically marking crude to trace its origin.
"We need the technology from the UK and the US and others to help us track these vessels. I know the government is interested in getting hold of drones like the UK and US are using in Afghanistan," Cole said.
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06 July Shell may pull out of Zimbabwe
OIL giant, Shell, is considering pulling out of Zimbabwe amid claims that Robert Mugabe is reserving the distribution of fuel at petrol
pumps for party supporters.
A report in The Observer said Shell was mulling a plan to halt activities in the country, which are overseen in a joint deal with BP.
One option being canvassed is for Shell to sell its stake to a third party.
Meanwhile both the UN Security Council and the European Union are drafting tougher sanctions aimed at members of Mugabe’s regime and their families. The US and the UK are calling for sanctions to be widened.
Shell and BP supply 74 independent petrol stations in Zimbabwe. Supplies are piped from Mozambique and stored at four oil terminals.
An analyst said political instability in Zimbabwe since the June 27 rigged presidential election was one factor under consideration by Shell.
In a statement, Shell said: 'We have a shareholding in a small retail joint venture which is operated by BP. We are currently reviewing our position.' BP said it had no plans to withdraw.
A study by London-based Ethical Investment Research Services shows that Britain is the largest foreign investor in Zimbabwe, with holdings in more than a quarter of the 82 companies that have their parents listed on overseas stock exchanges.'
An analyst said if Shell pulls out, it would be the fourth company to do so in the past fortnight. Tesco announced last week that it would stop sourcing products from Zimbabwe as long as the political crisis persisted.
Meanwhile, London mayor, Boris Johnson, has pledged that Oyster card supplier EDS would not renew its contract with the Munich-based company Giesecke & Devrient, after it was revealed that the company provides banknotes paper to Zimbabwe's central bank.
Barclays said it would continue operating in Zimbabwe after it was accused of providing loans to five of Mugabe's ministers via a subsidiary. Unilever, Standard Chartered Bank, British American Tobacco, and the mining corporations Anglo American and Rio Tinto, have all pledged to stay.
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29 June Germany firm cuts ties with Zimbabwe
A Germany firm supplying the Reserve Bank of Zimbabwe (RBZ) with paper for bearer cheques has been asked to halt business with Zimbabwe because of concerns it was helping prop up President Robert Mugabe's regime.
Analysts said the move could have disastrous consequences for Zimbabwe already reeling from cash shortages.
The Reserve Bank of Zimbabwe (RBZ) yesterday failed to respond to press inquiries on the issue. However, an official with the Germany embassy said he was aware of reports that the Munich-based firm, Giesecke and Devrient, had been asked to stop supplying Zimbabwe with paper.
Reports from Germany indicated that the Development Minister Heidemarie Wieczorek-Zeul reportedly wrote to the firm on Friday asking it to immediately stop the shipments of paper to Zimbabwe.
Meanwhile, PEOPLE'S shops, commissioned by President Robert Mugabe during his recent campaign, are already dividing the people: basic commodities are only sold to those connected to Zanu PF officials, according to a report in a Zimbabwe newspaper, The Standard.
Consumers, who spoke to The Standard last week, said once the goods were delivered to the shops, they were quickly bought up by Zanu PF officials, militia and war veterans.
Those without political links to the Mugabe's administration cannot buy the commodities as customers are vetted by youth militia before being allowed to enter the shops.
So far the people's shops have been commissioned in areas such as Nkayi and Tsholotsho in Matabeleland, Mashonaland East as well as Chipinge in Manicaland.
Mugabe also promised to establish two other shops at Mahuwe Business Centre in Mashonaland Central, while campaigning for the 27 June presidential election run-off, in which he was the sole contestant.
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24 June Kenya wheat growers fear competition
The Cereal Growers Association (CGA) of Kenya fears that falling wheat prices in the international market will spell doom for local growers under the new taxation structure announced by Finance Minister Amos Kimunya.
Kimunya revised the duty on wheat imports from 35 per cent to 10 per cent, in a bid to raise the competitiveness of local millers in the region while keeping a measure of protection for farmers.
However, cereal growers in Kenya are now sounding the alarm that the playing field would be heavily tilted against them were the international price of wheat to fall below $450 per tonne.
David Nyameino executive officer of the CGA, said it cost between Sh32,000 and Sh38,000 to plant an acre of wheat. With an average yield of 12 bags per acre, he argues that the break even point for a farmer with an average cost of Sh35,000 per acre for a 90kg bag of high grade wheat would be Sh2,750. That translates to Sh33,000 per acre or $473 per tonne).
Analysts said this means that with international wheat prices below $450 - $475 the 10 per cent duty would see imported wheat costing cheaper than locally produced wheat, sounding a death knell for farmers.
A monthly bulletin released by the Kenyan ministry of agriculture early this month indicated that on average, the prices for the 90kg bag of wheat in the local market rose from Sh4,044 in April to Sh4,335 last month.
The price of imported standard milling wheat has since risen from $175 per tonne in 2006 to $234 in January 2007 to $430 last month, due to a global shortage on supply and an increased demand.
"Every country, including China and India support their farmers and our members know the kind of difficulty they usually encounter whenever they try to export their commodities," said Nyameino.
CGA argues that with prices for inputs and transport rising, only a sustained rise in the international market could save farmers in a liberalised market.
Nyameino said the alternative, is for the government to seek a five year extension to the Comesa safeguards that block duty free wheat from entering Kenya.
24 June T-mobile cuts EU rates
T-Mobile has announced a reduction in international roaming rates for Internet access and mobile broadband within the EU, by 80% from GBP7.50 per megabyte to GBP1.50. The new rates will come into effect on July 1, 2008.
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09 June Safaricom shares shoot up 60%
Shares in Kenya’s mobile phone company, Safaricom, shot up by as much as 60% on their first day of trading, in the country’s biggest ever stock market flotation today.
The stock rose as high as 8 Kenyan shillings ($0.13 £0.06) from a sale price of 5 shillings in trade on the Nairobi Stock Exchange.
Industry analysts said the Kenyan government should raise around $833m from the sale of a 25% stake in the company. Safaricom is East Africa's most profitable company, with profits of $370m last year. It employs more than 1,000 people.
The sale was the first chance for many Kenyans to buy shares in a parastatal.
Foreign investors were required to pay 5.5 shillings, 10% more than the price offered to Kenyans. Safaricom's shares ended trading at 7 shillings.
A source in the Nairobi Stock Exchange said the sale was oversubscribed by more than 500%, a sign that investors have renewed appetite for Kenya's economy after violence in the country following elections earlier this year.
Unlike many Western countries, Kenya's mobile phone market is not saturated - only a third of Kenya's 36 million people own a mobile phone. Analysts also said Safaricom's strategy of targeting low-income Kenyans would help boost its customer base.
President Mwai Kibaki, who launched Safaricom's trading debut said: "This IPO is the most attractive in our history."
However, the share sale was not without controversy, with opposition parties trying to delay the issue because of uncertainty over Safaricom's other shareholders.
While the government insists it currently owns 60% of Safaricom with the other 40% in the hands of UK giant Vodafone, opposition groups say another firm called Mobitelea also has shares, thought to be around 10%.
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03 June UN urges more food production
Ban Ki-moon, UN Secretary General today urged nations to seize an "historic opportunity to revitalise agriculture" as a way of tackling the food crisis.
Addressing a UN-sponsored summit in Rome, Ban said that food production would have to rise by 50% by 2030 to meet demand. He suggested that export restrictions and import tariffs ought to be minimised to alleviate a food crisis which has seen food costs reached a 30-year high in real terms, causing riots in several countries.
Meanwhile, the UN's Food and Agriculture Organisation (FAO) which is hosting the conference is calling for $1.7bn of emergency funding to tackle the shortage in production. The agency has also warned industrialised countries that unless they increase yields, eliminate barriers and move food to where it is needed most, a global catastrophe could result.
An estimated 100 million people have been pushed into the verges of hunger worldwide, according to some estimates, with poorer countries facing a 40% increase in their food imports bill this year.
In his speech Ban said the instability caused by the price rises threatened progress made in countries such as Afghanistan, Liberia and Haiti.
Analysts said a taskforce created by Ban to target the food crisis is expected to present a 38-page report with measures that could cost up to $15bn (£7.5bn) to implement.
Announcing some of the report’s findings, Ban said high food prices offered a chance to finally address the ongoing problem of access to food for the world's poor.
"The threats are obvious to us all. Yet this crisis also presents us with an opportunity," he said. "While we must respond immediately to high food prices, it is important that our longer term focus is on improving world food security."
Measures to improve access to food for vulnerable people include expanding aid, boosting smallholder production and minimising export restriction and import tariffs, he added.
Earlier this month, the FAO calculated that the amount of money being spent globally on importing food was set to top $1 trillion (£528bn) in 2008, a 26% rise on the previous year.
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28 MayJapan pledges aid to Africa
The Japanese Prime Minister Yasuo Fukuda has promised to double his country's aid to Africa within five years.
Fukuda made the pledge today in front of leaders from more than 50 African countries at a conference in the Japanese city of Yokohama. He also called on Africa to work together on measures to try to combat climate change.
This is the fourth time Japan has hosted a major conference involving African leaders. Analysts said it was not surprising that Japan wants to work closely with Africa because like China and India, it is seeking access to Africa's markets and to its natural resources.
Opening the conference Fukuda pledged that by 2012 Japan would double its aid to Africa, currently $1.7bn (£850m), increasing it gradually year by year to meet the target.
However, Japan gives less to Africa compared to the United States, as well as when compared to Britain, France and Germany - three countries with smaller economies than Japan.
Fukuda promised to encourage Japanese firms to invest in Africa.
President Jakaya Kikwete of Tanzania, replying on behalf of the African Union said the Japanese government needed to work much harder to persuade businessmen that Africa was a safe place to invest.
"The perceived notion of risks about doing business with Africa or in Africa today is more a matter of the unforgotten past history than what is actually occurring on the ground in Africa today," Kikwete said.
A recent report by the Organisation for Economic Co-operation and Development (OECD) says the world's major donor nations have fallen behind on their commitment to raise the amount of money they give to developing countries.
The report says the G8 group of wealthiest nations "face a real challenge" to meet their pledge to double aid to sub-Saharan Africa by 2010. The OECD said overall aid fell by 8.4% in 2007, in line with expectations. It said the annual decline was expected as a result of the planned end of major debt relief for Iraq and Nigeria.
According to the report, the most generous nations in terms of donations as a proportion of gross national income were Denmark, Luxembourg, Netherlands, Norway and Sweden.
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21 May Nigeria to demand $2bn from oil firms
Nigeria’s President Umaru Yar'Adua has ordered the state-run oil company Nigerian National Petroleum Company (NNPC) to demand nearly $2bn in arrears from two major oil companies.
The government says Royal Dutch Shell and ExxonMobil have not paid taxes and production sharing costs they owe on two offshore oil fields. However, Dutch Shell and ExxonMobil say they have followed the law and are in discussions with the government.
"ExxonMobil affiliate fully complies with all laws and regulations and has paid taxes and royalties to Nigeria accordingly," said ExxonMobil in a statement.
"Our affiliate routinely has ongoing discussions with a number of government agencies on a variety of topics, including tax. We do not comment on ongoing discussions."
Shell Nigeria Exploration and Production Company (Snepco) refused to comment while there were "ongoing discussions" between it and the government.
Industry analysts said the production sharing contracts agreed between Nigeria and major oil companies in the deep water production fields are coming up for renegotiation and that the government may be trying to improve its negotiation position.
The price of oil has risen sharply internationally since the production sharing costs were first negotiated.
A source said NNPC has not been able to fund its share of the joint venture agreements for on-shore oil production, and is trying to find other ways of paying for them.
Meanwhile, Nigeria’s defence ministry has suggested that militant attacks which have curtailed production, could be brought under control by employing the very militants conducting the attacks to police the pipelines.
"We will engage them to police oil pipelines, but they must first form themselves into limited liability companies for us to discuss with them," Defence Minister Yayale Ahmed told a House of Representatives committee on Tuesday.
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06 May Zimbabwe issues $250m note
Zimbabwe's central bank governor, Gideon Gono, has further introduced new higher denomination bearer's cheques of $Z100 million and $Z250 million value in a desperate bid to ease the recurrent cash shortages bedeviling the country.
The new bills come into circulation today (06 May 2008).
In a press statement, Gono, said the move was implemented for "the convenience of the banking public and the corporate sector".
Since December 19 last year, Zimbabwe has seen the introduction of the Z$250 000, Z$500 000 and Z$750 000 bills which were followed by the $Z1 million, $Z5 million, $Z10 million in January.
Early last month, the Zimbabwe Reserve bank introduced $Z25 million and $Z50 million notes, whose value has since been eroded by spiraling prices of goods, amidst a galloping inflation.
Cash shortages have over the past five years been among the most tangible indicators that the country’s economy was failing dismally. Significantly, Zimbabwe has not had formal currency since the introduction of bearer cheques as a temporary measure in 2003.
Analysts say the persistent cash shortages are unlikely to end, given the general loss of confidence among Zimbabweans in their country’s formal banking system and the image of Zimbabwe as a rogue state, following Mugabe and Zanu-PF’s bid to hold on to power despite losing a general election to the Movement for Democratic Change (MDC).
Last week Gono conceded to growing pressure to liberalise Zimbabwe's exchange rate, ostensibly to cover the widening vacuum created by lucrative rates offered on the illegal but thriving black market and the official rate.
Until then, financial institutions were offering a ridiculous $Z30 000 to one US dollar against the black market rate of US$1 to $Z130 million. One pound sterling can now buy Z$400m.
The new measures have had ripple effects on the availability of cash within the formal system as banks now offer up to $Z165 million for a single US dollar.
Financial institutions have called on the Reserve Bank to lop off more zeros from Zimbabwe's multi-digit currency saying their systems are struggling to read the excess figures. Gono has said he will not dance to the tune of banking institutions which he accuses of being unscrupulous and of fueling speculative activities.
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30 Apr Kenyan taxpayers' shocking tab
Kenya’s newly installed government of national unity will come at a heavy cost to the country’s tax payers, according to data revealing the salary structure for ministers and members of parliament.
The new cabinet, with 40 ministers and 52 assistant ministers is the largest in the history of post-independence Kenya.
The former opposition leader, now the new prime minister, Raila Odinga, had pushed for a cabinet of 26, but agreed with the demands of President Mwai Kibaki and his followers for a much bigger administration.
Cabinet ministers are paid nearly (US) $18,000 (£9,000) per month, and only around $3,000 is treated as taxable income per year. Assistant ministers earn a bit less - just over $15,000 per month. The new prime minister and two new deputy prime ministers will be paid more.
The salary structure for Kenyan cabinet ministers compares favourable with UK cabinet ministers who take £118,000 per year from which they pay a much higher level of tax than their Kenyan counterparts. By contrast the average wage in Kenya is just $400 per year.
Data shows that salaries alone will cost the Kenyan taxpayer $1.5m a month. Furthermore, ministers and their assistants also get allowances - that adds another $210,000 a month to the bill.
Those in the corridors of power also enjoy a host of other benefits as well: travel allowances, health insurance, rural homes, even club membership.
A Kenyan analyst said it is impossible to put an accurate figure on the total burden to the tax payer. However, he said these extra bonuses amount to a cash value of at least $13m a year, or to put it another way, enough to build around 50 new schools in Kenya.
On top of that the Kenyan coffers will pay 40 permanent secretaries and their staff, adding hundreds of thousands of dollars more to the bill.
There are also security costs to take into account. Odinga has already been allocated 45 security staff and a fleet of cars to travel in. Cabinet ministers and their deputies get a minimum of five security personnel and a couple of shiny new cars.
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29 Apr Chicago to host African business Forum
The 2008 Agribusiness Forum, Investing in Agriculture Links in Africa will be held in Chicago, Illinois on June 25-27, under the auspices of the Corporate Council on Africa.
It is envisaged that the Forum will attract more than 300 leaders from the private and public sectors in the U.S. and Africa.
The two-day Forum will include industry-specific sessions, networking opportunities, and panels. Topics for discussion include issues such as financing, commodity trading markets, food security and infrastructure investment to connect African markets.
Other issues to be discussed include market information systems improvement, product innovation, cash crop production and investment, livestock production and investment, pharmaceutical growth, bio-fuel industry growth, carbon trading, and production technology.
Stephen Hayes, President of the Corporate Council on Africa (CCA) which promotes links between the African business sector and USA business community said he was pleased to welcome USAID as a sponsor of the 2008 U.S.-Africa Agribusiness Forum.
“Public sector support of this event is essential and USAID’s participation will provide the information and perspective needed to address agriculture and agribusiness-related opportunities and challenges in Africa,” Hayes said.
Novus International, Inc. Buchanan Renewable Energies, and All Africa Global Media are among the sponsors.
Visit www.africacncl.org for more details and registration information.
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10 Apr Sasol coal-to-fuel technology approved
Commercial airliners could increasingly switch to using synthetic jet fuel derived from coal, instead of from crude oil, following the approval of a technology used by the South African petrochemical company, Sasol.
A press statement from Sasol said aviation stakeholders including airframe and engine manufacturers, airlines, authorities such as the International Air Transport Association and the UK's defence ministry, had jointly given the approval for the use of coal-to-fuel technology by airliners.
Sasol CEO Pat Davies said: "This approval recognises the absolute need to develop aviation fuel from feedstock other than crude oil in order to meet the world's growing needs".
The move would integrate alternative fuel into the energy mix.
Davies said because the approval covered fuel produced at its Secunda synfuels facility in Mpumalanga, only airlines flying from OR Tambo International would benefit, initially.
Sasol said the approval of its coal-to-liquids jet fuel "marks a significant development in the adoption of clean-burning alternative fuels for the aviation industry."
According to Sasol, engine emissions from its jet fuel were lower than those of jet fuel derived from crude oil, because of a lower sulphur content.
Furthermore, Sasol said it had already supplied a fuel mixture made up of a coal-to-liquid component, blended with kerosene derived from crude oil, to international airlines operating from OR Tambo International Airport.
Analysts said the high cost of oil has obliged the global aviation industry to turn to alternative fuels, particularly those which are deemed to be more environmentally friendly.
Industry sources say Sasol's aim to take its unique coal-to-liquids technology international, could present South Africa and other countries with significant coal reserves, an opportunity to convert these natural resources into money.
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28 Mar Tutu urges inquiry in SA $4.8bn arms deal
Archbishop Desmond Tutu has called for a judicial inquiry into a controversial 1999 arms deal by South Africa, which was worth US$4.8bn.
Speaking at the University of the Western Cape, in a lecture commemorating the late anti-apartheid activist and Justice Minister Dullah Omar, Archbishop Tutu said: "We need to do something about the arms deal.
“We owe it to those who paid a heavy price for our freedom, we owe it to ourselves, we owe it to our future that a thorough independent judicial inquiry happens as a matter of urgency."
The 1999 deal was the first major arms purchase by the ANC government, following the lifting of an arms embargo imposed during apartheid.
At the time of the arms purchase, Jacob Zuma, who beat President Thabo Mbeki a couple of months ago in the contest for African National Congress leadership, was a provincial ANC leader.
Zuma currently faces corruption charges related to the $4.8bn purchase. His former financial advisor, Schabir Shaik, is serving a 15-year jail sentence on charges that included soliciting bribes in connection with the arms purchases.
A corruption case against Zuma collapsed in 2006. However, he is expected to go on trial again later this year, following reports that prosecutors have new evidence against him.
If acquitted, Zuma is almost certain to succeed Thabo Mbeki as South African president after elections in 2009.
Deriding the purchase of the weapons, Archbishop Tutu, a Nobel Peace Prize winner, said South Africa's real enemies were not military, but poverty, disease and homelessness.
"To buy sophisticated machines we did not need, for which we did not have the trained personnel, would be laughable if it was not so serious," Archbishop Tutu said.
In another case related to the arms deal, Tony Yengeni, a member of the ANC's national executive and a former MP, was jailed for fraud in 2006 but released after five months.
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21 Mar DRC to cancel ‘dodgy’ mining contracts
The Democratic Republic of Congo is set to cancel "many" mining contracts and renegotiate others, following the work of a commission set up in 2007 to review 60 mining contracts.
Although the commissioned report has not been published, DR Congo's Deputy Mines Minister Victor Kasongo said it was clear "that none of the contracts met international standards".
In an interview with the BBC Kasongo said: "Many of them need to be re-negotiated and some of them have to be terminated, because when you do business every partner must be remunerated proportionate to their input."
The mines review commission also recommended the cancellation of some contracts which it said had been awarded illegally in rebel-held areas in the east of the country.
21 Mar SA to import more power from Maputo
South Africa power utility, Eskom, is to increase the import of electric power from Mozambique to help it cope with severe electricity shortages.
Currently, more than 75% of the power generated from Mozambique's Cahora Bassa Dam is sold to South Africa, which is experiencing power outages which have become a nuisance in the manufacturing sector and for domestic consumers.
A shortage of power in January caused a series of blackouts in the country, forcing mines to suspend production for several days over safety concerns.
A Cahora Bassa Dam spokesman told the press that the company will be able to increase supplies to South Africa next month, following a $60m refurbishment of the facility.
Meanwhile, industry sources have revealed that electricity prices in South Africa are set to rise by more than 50%. Earlier this year South Africa was forced to cut power supply to Zimbabwe because of shortages at home.
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19 Mar Nigeria plans cassava-to-ethanol project
The Ekiti state of Nigeria is planning to produce ethanol from cassava on 12,000 hectares of farmland, according to Tunji Awoniyi, the project coordinator. Crown Green Energy Nig Ltd. is at the forefront of this activity partnered by Crown Agro-Allied Investment Ltd.
The project, which is estimated to cost about 14.4bn naira (US$115m) will initially employ around 8,000 workers. However, once it is fully developed, an extra 5,000 workers will be needed.
Nigeria is currently importing fuel ethanol from Brazil.
“Our aim is to domesticate fuel ethanol production in Nigeria.,” Awoniyi said. “The country needs about 1.3billion litres of fuel ethanol, and not a single litre is being produced in the country.
“It is an integrated project, in the sense that we have acquired 12,000 hectares of farmland mainly for cassava production in Ekiti State. We have another 10,000 hectares in Kogi State, for the same project,“ Awoniyi added.
Furthermore, Awoniyi said an additional 30,000 hectares will be purchased in Ekiti is 30,000 when the project is fully developed. He estimated that 100 tons per day of starch will be produced initially, and that the project will be waste-free as every part of the cassava will be converted into an added value and for something else.
Awoniyi estimated that the cassava-to-ethanol project will be done within 18 months from design to commissioning stage.
He said: “If the nation is serious, this is the best vehicle for rural development. Every unemployed youths, women and graduates can be brought in through mechanised farming.”
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18 Mar Botswana to open diamond plant
Botswana is set to start polishing its own diamonds when a new diamond-processing plant, opens in the country this year, according to mining industry sources.
Until now, diamonds from Botswana have been sent abroad to be polished, marketed and sold.
The $83m plant, jointly owned by the government and diamond giant De Beers, will become a processing centre for diamonds from DeBeers mines worldwide.
Botswana is the world's largest producer of diamonds and one of Africa's most stable countries.
The new venture is expected to create at least 3,000 new jobs, including in finance, security and telecommunications sectors associated with the diamond industry.
The Botswana diamond mining industry is the engine room of development. Earnings from the industry have catapulted Botswana from a poor agrarian economy in the 1960’s to one of the strongest economies in the world, affording its citizens a higher standard of living and better quality of life.
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13 Mar One pound buys 95m Zimbabwe dollars
Zimbabwe's dwindling economy has sunk to staggering new lows, with the country’s dollar currency traded on Wednesday at 95 million to the British pound and around 41 million to the US dollar in the parallel market, dealers said.
Just two days ago, the black market rate for the US dollar stood at just over 31 million Zimbabwe dollars. Last Wednesday the rate was 29 million to the US dollar.
When Zimbabwe attained independence in 1980, the local unit was roughly at parity with the pound.
With the currency in free-fall, supermarket prices are rising like never before. Reports in the country said bread in one bakery was selling at 9.5 million a loaf by Wednesday lunchtime, up from 7.5 million Tuesday afternoon.
Analysts have warned the economic crisis could prove to be President Mugabe’s downfall when Zimbabweans go to the polls on the 29th of March.
13 Mar Mozambique needs to import maize
Mozambique will need to import at least 1.25 million tonnes of maize, wheat and rice by August to cover food shortages caused by floods, according to the government.
Speaking to the press today, Fernando Songane, co-ordinator of Mozambique's National Agriculture Development Programme (PROAGRI), said at least 150,000 people in the country were in urgent need of food aid after severe floods in the centre of the country.
Songane said although Mozambican farmers produced 2.17 million tonnes of grain during the 2007 harvest, compared with 2.10 million the previous year, this would still not be enough to meet local food needs.
"We have a shortfall of 500,000 tonnes of maize, 350,000 tonnes of wheat and 400,000 tonnes of rice in 2008," Songane said. "Some 150,000 people are facing acute hunger due to flooding in central Mozambique and we need to start planting before the situation gets out hand in August."
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11 Mar Zimbabwe govt "moronic" – JSE chief
Russell Loubser, chief executive of the Johannesburg Stock Exchange has ruled out any chance of working with its Zimbabwean counterpart while President Robert Mugabe's "moronic government" is in power.
The JSE has been campaigning actively to forge links with other African stock exchanges, in recent months.
However, Loubser told the press on Monday that such ties with neighbouring Zimbabwe will not be contemplated unless Mugabe's 28-year rule is ended at elections this month.
"The Zimbabwe stock exchange would like to work much closer with us yesterday, " Loubser said at a press conference for the announcement of the JSE's annual results.
"We are just extremely apprehensive while you've got that type of government in power because anything is possible ... We are very careful about doing something there while that type of moronic government is in place," he said.
Loubser's comments come in the wake of a new law passed by President Mugabe last week which will ensure that indigenous Zimbabweans own at least 51% of companies operating in the country.
Analysts have warned that the new legislation will scare off the few foreign investors still left in Zimbabwe following an economic meltdown over the last eight years, with an inflation rate of more than 150,000%.
In 2003, Loubser said those who drew comparisons between South Africa and Zimbabwe, ignored the wide gulf between the two countries.
“The rule of law and respect for property rights apply in South Africa, human rights are defended by one of the finest constitutions in the world, economic management is in sound hands,” he said.
According to Loubser, the JSE, the largest stock exchange in Africa, recorded an increase in revenue close to 40% in 2007, despite what he called a "volatile" year.
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06 Mar 500 rioting Zambian miners sacked
AROUND 500 Zambian mine workers have been sacked after rioting and attacking a Chinese manager at the Chambishi copper smelter in the northern region.
Reports in Zambia say protest was sparked by rumours that members of the Chinese management team were about to go on holiday, which workers feared would delay negotiations to improve their conditions of service.
China has become a major investor in Zambia's run-down copper sector but workers have complained of low wages and poor conditions.
The workers apparently threw stones at the managers as they attempted to hold talks, on Tuesday before police were called in. Several buildings were burned in the violence and a protester was injured.
Chambishi company spokesman George Jambwa told the press that dismissed miners have been given three days to reapply for their jobs.
"They have all been dismissed with immediate effect," he said. "We have given three days to those who want to be re-employed to write to us and give reasons why they should join our company."
Albert Mando, general secretary of the National Union of Mining and Allied Workers (Numaw) said he was "surprised" by the dismissal, adding that the union could not negotiate when seven of its officials had been arrested.
Last year, while on an eight-country tour of Africa, China's president Hu Jintao cancelled a visit to launch the US$200m Chambishi smelter because of miners' anger at working conditions.
A blast at the copper mine killed 50 people in 2005.
Chambishi smelter, which is still under under construction, is part of a huge multi-million dollar Chinese investment in the area.
The growing Chinese presence in Zambia became an issue in last year's presidential election, with the opposition threatening to throw out of the country large numbers of Chinese traders and labourers who have become an increasing source of agitation for taking businesses and jobs.
Dipak Patel, Zambia's trade and industry minister until last September, said the government was mistaken to ignore growing resentment.
"We have a lot of Chinese traders selling in the market and displacing local people and causing a lot of friction," he said. "You have Chinese labourers here moving wheelbarrows. That's not the kind of investment we need."
Addressing university students last year South African President Thabo Mbeki warned that Africa needs to be on its guard against allowing a "colonial relationship" to develop with Beijing.
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04 Mar UK asked to track Taylor’s $650m
A Special Court in Sierra Leone has asked the UK government to help track down money believed to have been stolen by Liberia's ex-leader Charles Taylor.
Taylor is on trial in the Hague, Netherlands, accused of funding rebels in Sierra Leone while in office.
He denies the charges, but the chief prosecutor, Stephen Rapp, says if he is convicted for pillage he wants Taylor’s alleged stolen millions to be returned to Liberia.
"If we can get the money back to the victims, that's a critical part of justice," Stephen Rapp said during an interview with the BBC.
Rapp has been in London to meet UK government officials to discuss the alleged looted money which is believed to be in the region of several hundred million dollars.
"It may be even close to a billion dollars when you add together all the resources and the money that went through the government of Liberia when he was president," Rapp told the BBC's World Today programme.
"Indications are that some $650m was due to the people, due to the treasury - that money all flowed through his personal bank accounts."
Rapp said tracking down the funds was an "ongoing forensic effort", and that governments around the world have been co-operative when asked for help.
"If we obtain a conviction for him on pillage we're going to go forward and try to obtain the restitution orders," the chief prosecutor said.
During Sierra Leone's decade-long civil war, which officially ended in 2002, tens of thousands of people died and thousands more were mutilated, raped and had limbs amputated.
Taylor's war crimes case was transferred from Sierra Leone to The Hague for security reasons, although it is still being conducted by the UN-backed court.
The former Liberian president is charged with 11 counts of crimes against humanity and war crimes.
Rapp noted that the real tragedy of the war in Sierra Leone is that not enough was being done to help the victims of the war. He hopes that any recovered money would go to a victim reparation programme.
"For the thousands of people who had arms and legs and sometimes ears and other body parts chopped off cruelly during the course of the conflict - and victims of sexual violence."
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28 Feb SA in shuttle diplomacy over EU treaty
A high powered delegation from the South African ministry of foreign affairs is engaged in a series of meetings with Southern African Customs Union (Sacu) members which include, Botswana, Lesotho, Namibia and Swaziland, to agree on a common view, before a meeting with European Trade Commissioner Peter Mandelson Tuesday.
Sources said the South African team, which is led by Foreign Minister Nkosazana Dlamini-Zuma held discussions with Botswana ministers earlier this week and is in the process of consulting other member states before the meeting with Mandelson in Botswana about the nature of Economic Partnership Agreements (EPAs).
The treaty is at the centre of the relationship between the European Union (EU) and African Caribbean Pacific (ACP) countries. Thirty-five countries in seven ACP regions signed up to EPAs in December 2007, which South Africa and others feel is weighted in favour of the EU bloc.
Western based charity organisations are also critical of the EPA. Last year, Actionaid, the UK-based charity issued the following statement:
EPAs are skewed in favour of rich countries and threaten to leave 750 million poor people worse off than ever. We are concerned that unless EPAs are radically reformed, the impact in African, Caribbean and Pacific countries will be:
• job losses, government revenue losses and cuts in public services as developing countries are forced to open up their markets to the EU before they are ready
• corporate domination as African, Caribbean and Pacific governments’ ability to regulate big business is restricted
• weakened democracy as governments will be prevented from choosing their own development strategies.
Referring to the EU's demand for most favoured nation treatment, Dlamini-Zuma recently said SA could not allow a partnership agreement with the EU to restrict its relations with the rest of the world.
Under the most-favoured nation clause, EPA signatories would have to extend concessions made to other major countries in future free trade agreements, to the EU.
Observes say South Africa’s bid to win over the Sacu members has so far met with resistance. Botswana is apparently angered by South Africa’s stance and is ready to break ranks with the customs union.
South Africa itself has refused to sign an EPA because of the EU's demands for the liberalisation of services and concerns about implementation.
Dlamini-Zuma wants the entire EPA process to be reopened and negotiated afresh but this is unpalatable for countries that have already signed interim EPAs.
SADC trade adviser Paul Kalenga said recently that the EU was the first major global economy to extend duty-free, quota-free access to southern African economies, excluding SA. If these countries acceded to SA's demands and backed out of the EPAs, they stood to lose this favourable market access.
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26 Feb Angola producing 1.9m bpd crude oil
Angola has raved up its oil production capacity. Since last week the country’s oil fields have been producing 1.9 million barrels per day, (bpd) of crude oil compared to the previous rate of 1.7m bpd until the end of 2007.
However, analysts estimates that by the end of this year Angola’s oil production rate could reach 2 million bpd.
Manuel Vicente the C.E.O of the Angolan National Fuel Society (Sonangol) which recently celebrated it’s 32 anniversary, told the press on Monday that increased oil production had been facilitated by a global rise in oil prices and a progressive growth in the company's workforce, which currently stands at 8,240 workers.
Vicente also revealed that Sonangol will try to enter any market that is feasible, in its bid to diversify it’s activities.
However, he said Sonangol’s priority this year is to improve the supply of fuel and its by-products.
"We are improving the supply sector, increasing the capacity of distribution and storing of our products, in an action with the government, aiming at, in a near future, opening the market in these areas and allow other actors, different from the state, to act in this domain," Vicente said.
Oil accounts for 90 per cent of Angola’s exports, 50% of its Gross Domestic Product (GDP) and 80% of its tax revenues.
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21 Feb SA budgets $7.6bn to tackle power cuts
South Africa's power utility, Eskom, will get 60bn rand (US$7.6bn) over the next five years to tackle the power cuts that have hit the economy.
The pledge was made by South Africa’s finance minister Trevor Manuel in his latest budget in which he also cut the corporate tax rate to 28% and increased social spending.
Manuel has forecast a growth of 4% in 2008, down from the 4.5% estimate made in October. However, he still predicts a budget surplus of 18bn rand for the year.
Maintaining that the economy was in good shape, despite negative signals for the short to medium term economic conditions elsewhere in the world, Manuel said: "As we present a picture of where we are now, we must also tell South Africans and the world that our ship is stronger and we are better prepared than during previous episodes of global turmoil."
He added: "It is time for neither gloom nor panic. But the course ahead would be somewhat tougher."
The main pillar of Manuel’s budget provides more money for social programmes. Spending on health services, including programs to fight HIV/Aids, will rise by 10% over the next three years.
An additional 10bn rand has been set aside for tackling crime, while 90bn rand extra has been allocated to fight chronic poverty.
21 Feb One US$ worth 16m Zimbabwean dollars
One US dollar is now worth 16m Zimbabwean dollars on an illegal but flourishing parallel or black market in the country. The exchange rate on the official market is US$1 to Z$30 000.
However, the bulk of foreign currency trade takes place on the parallel market, which even the Reserve Bank of Zimbabwe dabbles in to raise hard cash for critical imports.
Foreign currency dealers this week said the central bank had entered the market this week to
source foreign currency for electricity, food and fuel for March 29 elections and to repay exporters after raiding some accounts last month.
Shortages of food, fuel, foreign currency are all symptoms of a fast crumbling economy which economists blame on President Robert Mugabe's controversial policies, such as seizing white farms, many of which are now either producing a small percentage of their previous yields or have stopped producing altogether.
Analysts say the continued weakening of the local dollar and surging inflation, which according to latest figures obtained from the state Central Statistical Office yesterday vaulted to 100 580.2 percent in January,, was yet another sign Mugabe's government had lost the battle to end a biting economic crisis.
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18 Feb Nigeria revokes sale of telecom firm
Nigeria has revoked the sale of the state telecoms company, Nitel, to a consortium backed by the former President Olusegun Obasanjo.
A spokesperson for the Nigerian government today told the press that a new controlling stakeholder was being sought, after the new owners failed to improve the running of the company.
It is the second time President Umaru Yar'Adua has cancelled a major privatisation project granted by his predecessor. He recently reversed an oil refinery sale concluded while Obasanjo was in power.
Transnational Corporation (Transcorp), which acquired a controlling stake in Nitel in 2006 said it would contest the decision in court, according to industry sources. Transcorp was apparently established by a group of Obasanjo's business allies who bought a number of state assets, including Nitel, before Obasanjo’s tenure ended last year. There were accusations that proper privatisation rules were not followed.
The sale of Mtel, Nitel's mobile phone subsidiary, was also cancelled on Monday.
Media reports in Nigerian say Transcorp believes the revocation of their ownership came just as it was about to turn the companies around.
A company spokesman was quoted in the Lagos-based Vanguard newspaper saying: "Ironically, the purported reversal comes at a very crucial period of Transcorp's efforts at revitalising both organisations. We are certain of an amicable settlement of this challenge in our favour."
Nigeria’s Information Minister John Odey said the search for a new investor with sufficient resources to improve the telecoms company would begin immediately.
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17 Feb Nigeria state-of-the art hospital burned
A fully-equipped hospital that lay unused for two years has burned to the ground in northern Nigeria, according to newspaper reports in the country.
Ironically, the General Hospital in Maiduguri which was built in 2006 boasted of the state of the art facilities, including several surgical theatres, intensive care ward, and the clinical section which contained millions of dollars of equipment.
Reports say the reason the hospital remained unopened, even though Borno was recently hit by a measles outbreak which killed hundreds of children across three states, was because the state governor Ali Modu Sheriff refused to open the hospital, until former President Olusegun Obasanjo visited to the state.
Existing hospitals in Borno are apparently poorly equipped and overcrowded.
Obasanjo’s visit to Borno was however postponed several times, the last being just two months before the election in 2007. His successor Umaru Yar'adua was due to visit later next month.
Sheriff has blamed the fire on arsonists whom he accused of trying to damage his political reputation.
A source in Borno said angry residents of Bulunkutu, where the hospital was situated, gathered around the burned hospital and shouted abuse at the alleged arsonists.
Addressing the arsonists through the local media, Sheriff said: "There is not one hospital in the country owned by a state government that has the type of world class equipment we had in there. It is their people that would have benefited."
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15 Feb Zimbabwe inflation hits 66,212.3 pct
Zimbabwe's annualised inflation rate rose to a record 66,212.3 percent in December, scuttling President Robert Mugabe's efforts to put the once prosperous African nation's economy
on a recovery course.
Mugabe's trusted Central Bank governor Gideon Gono has made the battle against inflation the cornerstone of his policies to reverse an economic slide that many people blame on his boss's mismanagement style and his controversial policies, including seizures of white-owned farms.
"The year-on-year inflation rate for the month of December, as measured by the all items Consumer Price Index, stood at 66,212.3 percent, gaining 39,741.5 percentage points on the November rate of 26,470.8 percent," Zimbabwe's Central Statistical Office said in a statement on Thursday.
Month-on-month inflation also rose to 240.1 percent in December from 131.4
percent in November, the CSO said.
The data was another sign that a government-ordered price freeze in June had failed to halt runaway price increases. Zimbabwe is struggling with rising poverty, unemployment of about 80 percent and chronic food and fuel shortages.
Mugabe, who blames the problems on sabotage by Western nations opposed to his rule, is running for another term as president in elections on March 29.
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14 Feb UN concerned over looming food crisis
The United Nations' Food and Agriculture Organization (FAO) is concerned that the rising international price for cereals such as wheat and maize will have serious repercussions in Africa.
Poor countries could see their cereal import bill rise by more than a third. Africa as a whole is expected to see an estimated 49% increase this year, according to FAO, which notes that international wheat prices have risen 83% in the past 12 months.
Demand from fast developing countries such as China, and droughts and flooding have pushed cereal prices to record highs.
Analysts estimate that poor countries will pay a record $33.1bn (£17bn) for cereal imports in the year to July 2008. This is despite a fall in the total amount they will import.
“The rising price of wheat, maize and rice will push up the cost of basic foods and this will affect the world's vulnerable populations the most,” FAO said.
The agency warns that around 36 countries around the world are already facing a food crisis. Twenty one of those are in Africa.
Some governments have apparently lowered import tariffs, raised food subsidies and imposed duties on food exports, in an attempt to limit the impact of rising prices on their populations.
Lesotho, Somalia and Swaziland are said to be facing an "exceptional shortfall" in food supply after years of adverse weather.
This week FAO launched an appeal for $87m of emergency assistance to help flood-affected populations in Mozambique, Zimbabwe, Zambia and Malawi.
“Farmers in flooded areas are in urgent need of seeds to begin replanting, with only two months to the end of the cropping season,” FAO said.
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12 Feb SA moves to quell power shortage fears
South Africa’s Public Enterprises Minister Alec Erwin on Monday told a parliamentary media briefing that power shortages in the country will be alleviated within six months.
However, he stressed that the "tight" supply situation would persist for another four years while new generation capacity was installed.
Industry sources say Erwin remarks are calculated to allay foreign investors' concerns about the electricity supply which has affected production in many industries.
Erwin said during the next four years, new industrial projects which consumed large amounts of electricity will have to be carefully vetted by the government.
Despite government assurances that the crisis would not affect foreign investment inflows, there have been reports of uncertainty among investors as to its duration.
Sources said the government is planning a Public relations drive over the next few months, in major countries investing in South Africa, to clarify the electricity situation and reassure prospective investors of the fundamental strength of the national grid.
Erwin said the present electricity reserve margin of 8% should move quite quickly to between 10% and 15%. This would flow from the implementation of the government's emergency energy plan to reduce consumption and bring in new supplies through co-generation, initially via gas-fired turbines.
The plan involves both energy-efficiency measures such as the extensive introduction of solar water heating, and rationing of big users through quotas and price incentives should they not achieve reduction targets voluntarily.
The programme should take effect from April onwards.
Erwin said having a "tight energy supply" would put SA in "exactly the same position as other developing countries".
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11 Feb Ethiopia to host science conference
Ethiopia will host a conference titled: "Science with Africa" from 3 to 7 March this year, under the auspices of the United Nations Economic Commission for Africa (ECA) and ISC-Intelligence in Science.
The conference is part of an initiative to strengthen cooperation on science and technology programs between the EU and the AU and to promote the application of Science and technology to achieve specific Millennium Development Goals (MDGs) as well as promote the participation of the African research community into European programs.
The three day conference will examine methodologies for improving science program participation by scientists and researchers in African nations.
Speakers will include senior policy makers from Africa and around the world, eminent scientists, research project managers, experts in proposal preparation and IP and patent specialists.
Organisers said the 'Science with Africa' conference is an off-shoot of the January 2007 summit meeting of heads of African states in which the leaders declared 2007 the year of science and technology and strongly urged all member countries to allocate 1% of their gross domestic product to Research & Development by 2020.
Registration is now open for the Science with Africa conference. The conference is free of charge.
For further conference details and registration, please visit: www.sciencewithafrica.com/
11 Feb Norway pledges £4.5m to NEPAD
Norway has pledged NOK 45m (around £4.5m) to the NEPAD, Infrastructure Project Preparation Facility (NEPAD-IPPF) covering the period, 2007-2009.
According to a communiqué recently signed by the Norwegian Ambassador in Tunisia, Thorbjorn Gaustadsaether, and countersigned by AfDB Secretary-General,. Modibo Toure, the Bank agreed to a schedule of activities connected to the disbursement of the funds to be delivered by 2009.
The first of five instalments began on December 20, 2007, and the last disbursement is expected in October 2009.
In 2007 the NEPAD-IPPF Special Fund, which assists Regional Economic Communities mobilized US$22.5m. It is expecting a contribution of £6 million from DFID (UK), and € 2m from German in 2008, earmarked for Infrastructure development.
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10 Feb Nigeria orders oil firms back to Delta
Nigeria's government has ordered all oil companies which fled the Niger Delta in the wake of militant attacks to return to the area or cease operations.
The announcement comes in a week when militants kidnapped a top politician's wife and blew up a major pipeline.
The instability and violence in the southern region over the past four years have led to a significant drop in Nigeria's oil exports, with many Nigeria-based oil firms moving to the commercial capital, Lagos from Port Harcourt in the Delta.
However, Godsday Orubebe the Minister for Special Duties said it was now safe for oil companies to resume production.
"It is now time for these companies to return back and keep the productive wheel of the region busy again," Orubebe said during a meeting with representatives of about 140 oil companies. "We wish to state that there has been a great improvement in security in Port Harcourt in particular and within the Niger Delta in general."
Furthermore, Orubebe said the government will stop their operations if the orders are defied.
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07 Feb Kenya violence scares off investors
Political violence in Kenya has so damaged the country’s image that no new foreign investments are expected in the short-medium term, the Central Bank of Kenya (CBK) has warned.
Njuguna Ndung'u, governor of CBK issued a statement saying that while the world adopts a wait-and-see attitude, in the wake of the political crisis engulfing the country, the crisis has contributed to increased investor uncertainty.
He writes: "The current crisis is likely to delay investment decisions (as investors adopt) a waiting option."
Ndung'u advocates fresh government policies to change the perception by potential investors, once the full magnitude of the political crisis on the economy is established.
CBK will also monitor adverse developments in the exchange rate and the level of reserves. However, Ndung'u says the bank has sufficient foreign exchange that can be used to stabilise the market.
Furthermore, Ndung'u said Kenya has the capacity to regain its economic position in East Africa, as well as register the growth pattern witnessed in the last five years, once the political problems have subsided.
Food prices are expected to go up following poor rains in most parts of the country and the uprooting of people from areas considered food baskets.
In addition, disruption of supply will lead to increased food and energy prices, which is in turn expected to drive overall inflation and erode real incomes in the coming months, Prof Ndung'u predicts.
Due to the negative impact of political violence on tourism, manufacturing, agriculture, transport and communication, Ndung’u predicts that the projected economic growth of eight per cent for 2008, will not be achieved. Economic activity will further be affected as commercial banks restrict lending.
07 Feb UN concerns over Chad women refugees
The United Nations Population Fund (UNFPA) says pregnant women and their children fleeing violence in Chad face increased risk.
In a press statement on 6 February UNFPA says:“As tens of thousands flee the ongoing violence in Chad, concerns are being raised by the United Nations Population Fund, for the health and safety of expectant mothers and their children.”
Thousands of refugees have streamed across the border between Chad and neighbouring Cameroon to seek shelter from the fighting.
“We know that in any refugee crisis, one in five women of childbearing age may be pregnant,” said Thoraya Ahmed Obaid, UNFPA’s Executive Director. “UNFPA is working with government and NGO partners to assess the situation of Chadians who have crossed into Cameroon. We are providing support to protect maternal health and ensure that women and girls are safe from violence.”
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04 Feb Liberia seizes 2.5 tonnes of cocaine
Liberian police have seized barrels containing an estimated 2.5 tonnes of cocaine from a ship off the coast of the country.
Maritime officials said it is the single largest drug seizure in the country's history.
According to the police, the ship, the Blue Atlantic, was spotted on the high seas last Thursday by a French military vessel, which intercepted and towed it to the port.
Liberian police said all nine members of the crew arrested on board the ship were Ghanaians, who were immediately turned over to the Liberian police.
Industry sources said West Africa has increasingly been targeted by Latin American drug cartels, due to the region’s weak law enforcement agencies and a largely unmonitored coastline.
The drugs are flown or shipped across the Atlantic and then onto markets in Europe.
Last year saw large cocaine packages being seized in other countries in the region including Ghana, Guinea Bissau, Senegal and Sierra Leone.
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01 Feb Indians to build $20m hospital in Zambia
A consortium of Indian investors will build a US$20m state of the art specialist hospital in Lusaka, to be called Lifeline hospitals - centre of excellence.
Raj Kumar who leads the consortium told the press that his team was ready to commence the construction of the hospital, to be situated near the United Nations (UN) House on Alick Nkhata Road in Lusaka.
Dr Kumar said the hospital would employ local people, especially nurses and other health workers and that the team believed in partnering with local people.
Zambia President Levy Mwanawasa, who met the consortium team said the country had moved to the next stage of reforms which focused on simplifying the process of starting and running a business in Zambia.
He said while Zambia was working to develop various sectors of the economy, it was important that Zambians enjoyed good health to allow them to contribute positively.
"While we work to develop this country in various sectors it is important that our people enjoy good health at prices they can afford. Provision of quality health service in Zambia is not satisfactory and I do hope that it will not be long when you establish these facilities," Dr Mwanawasa said.
01 Feb Microsoft offers $44bn for Yahoo
Microsoft, the world leading computer company, has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.
Industry analysts said the offer, contained in a letter to Yahoo's board, is 62% above Yahoo's closing share price on Thursday. Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.
Yahoo has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.
Announcing the offer to buy Yahoo, Microsoft chief executive Steve Ballmer said: "We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market."
As yet, there has been no comment from Yahoo.
Jerry Yang, Yahoo’s chief executive, on Tuesday revealed that the company intended to lay off 1,000 staff as part of a restructuring plan.
Microsoft said that Yahoo shareholders could choose to receive either cash or shares.
Analysts said Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October.
Google's profits were up 17% to $1.21bn (£608m) for the three months to the end of December.
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30 Jan Libya threatens disinvestment in Africa
Muammar Gaddafi the Libyan leader has threatened to turn his back on Africa if the continent's leaders reject his proposals for closer unity.
Col Gaddafi made the threat at his residence yesterday, ahead of the opening of a summit of African Union leaders in Ethiopia tomorrow.
He said Libya would move its African investments, which he said amounted to more than $5bn (£2.5bn), to Arab and Mediterranean states and Europe if he was not satisfied with the commitment of his counterparts to the concept of a united Africa.
Gaddafi has long advocated the creation of a United States of Africa - with its government including a foreign minister, defence minister and minister of trade – a concept which has not found favour in many African states.
The AU, which succeeded the Organisation of African Unity in 2002, was conceived by Gaddafi as part of this vision.
Gaddafi accused the AU of failing to achieve tangible results in unity because of its endless delays in progressing towards forming a government for the continent.
"The (summit) will be decisive. It will either put an end to stalling and time wasting on the unification of Africa or prove there is a conspiracy which vetoes African unity," Gaddafi said.
30 Jan SA mines hit by power outages
Recurrent power outages are affecting production in most South African mines, which include some of the world's biggest producers of gold and platinum, according to a leading South African economist, Mike Schussler
"The mining industry is losing about R300 million [about US$42 million] a day as a result of the shutdown," said Schussler.
He warned that the stoppage had already begun to slow the economy, which would have a long-term impact on government's goal to halve unemployment and poverty by 2014.
One of the world's largest gold producers, AngloGold Ashanti, confirmed that it had stopped production and was sending workers underground only for maintenance and to ensure the workplace was kept safe.
South Africa needs a minimum 32,000MW of power, while production is around 39,000MW, according to Eskom. The power utility expects to be able to generate another 2,000 MW by 2009, when it will have refurbished two mothballed plants and a new plant will come into operation.
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29 Jan Africa 'unhappy' with EU trade deals
European Union trade commissioner Peter Mandelson has denied African countries an opportunity revise a series of Economic Partnership Agreements (EPAs) which they recently clinched, tentatively, with Brussels.
This is despite the fact that European Commission president José Manuel Barroso last month promised African leaders during a summit with the EU in Lisbon, that contentious clauses in the free trade accords signed before December 31 could be opened for further discussion at a later stage.
On Monday Mandelson said he was not in favour of a fresh dialogue on deals already secured Furthermore, he denied that his stance was contradicting the promise made by Barroso. "I don't believe Mr Barroso gave such a commitment to renegotiate," Mandelson told the press.
Speaking to members of the European Parliament (MEPs) this week, Mandelson attacked non-governmental organisations (NGOs) who have argued that the agreements would damage farmers and fledgling industries in poor countries by exposing them to competition from a deluge of European imports.
Mandelson claimed Namibia's agricultural lobby had welcomed an EPA because it was designed to safeguard the country's beef exports to Europe. Similarly, he said, the textiles industry in Lesotho would benefit from simplified rules of origin, which allow it use ingredients from other countries in its garments and then export the finished product to Europe, without having to pay duties.
However, a spokesman for Aprodev, an alliance of anti-poverty groups, said that many businesspeople in Africa had opposed the EPAs, as had family farmers and trade unions. "NGOs picked up on these concerns very early," she said.
By declining to reopen the EPAs, Mandelson is "trying to tighten the grip as much as possible" to ensure that they are not subject to democratic scrutiny.
The Paris-based International Federation for Human Rights, has urged African leaders not to implement the EPAs. A statement from the African Union has suggested that free trade can erode fundamental economic and social rights, recognised by the United Nations.
For example, the AU points out that losses in revenue resulting from a reduction in tariffs levied on imported goods could lead to cutbacks on essential services, such as health and education in African countries.
Belgian Socialist MEP Alain Hutchinson who has described Mandelson as "an inflexible and cold commissioner," took issue with his assertion that trade agreements would benefit poor countries by increasing their levels of foreign investment. He pointed out that profits from firms investing in diamonds or oil in Africa tended to leave the continent, rather than help reduce poverty and inequality.
Almost 80 countries from Africa, the Caribbean and the Pacific (ACP) have been taking part in trade talks with the European Commission, although only 35 accepted EPAs by the 2007 end-of-year deadline.
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27 Jan Zimbabwe banks in liquidity crisis
MAJOR commercial banks in Zimbabwe are facing a critical liquidity crisis largely caused by unlawful speculative investments which are now threatening to ruin the stricken institutions, according to industry sources.
Cash shortages at the banks have apparently compounded the situation as businesses and individuals are unable to access their money.
Almost all the banks -- Barclays, Stanbic, Standard Chartered, CFX Bank, Kingdom, NMB Bank, ZB Bank, MBCA, ZABG, FBC, CBZ, Agribank, ABC Corporation, Genesis, Premier, Interfin and Renaissance, as well as building societies such as CABS, Beverley, FBC BS and Intermarket -- are in dire straits.
Financial analysts said the banks are facing liquidity problems because they cannot secure cash applications from the Reserve Bank and have failed to pay their statutory reserves to the central bank. Despite the bank printing up to Z$800 trillion to alleviate the cash shortages, banks are failing to collect their cash requirements due to lack of security.
“Zimbabwean banks are facing serious liquidity problems because they have tied up a sizeable portion of their balance sheets in illiquid assets such as shares, properties and foreign currency,” an analyst in Harare said.
Under the terms of Zimbabwe’s Banking Act, it is illegal for banks to buy shares unless they are being held as security for a loan or are owned through swapping debt for equity.
A trader said Zimbabwean banks have invested an average of 22% of their total assets in securities. The bank's securities and investments in financial terms, include Z$31,1 trillion for Standard Chartered, Stanbic Z$17,2 trillion, ZB Bank Z$9,8 trillion, CBZ Z$17 trillion, Agribank Z$7,7 trillion, Barclays Z$21,6 trillion, FBC Z$17,2 trillion, Kingdom Z$23,2 trillion, ZABG Z$8,8 trillion, NMB Z$6,4 trillion, ABC Z$17,8 trillion, Premier Z$8,9 trillion, and Interfin Z$7,8 trillion or 75% of total assets.
Major building societies CABS and Beverley invested Z$17,8 trillion and Z$5,6 trillion respectively.
“Due to their failure to convert into cash stocks and other investments, the banks are currently unable to restructure their balance sheets to deal with the liquidity situation,” a trader said.
The situation has been worsened by the current poor performance of the stock market due to the liquidity crisis in the money market and the exchange rate volatility.
Furthermore, the trader said most financial institutions had exhausted their collateral instruments, making it difficult for them to borrow both in their inter-bank market and from the Reserve Bank.
Cash orders by banks and building societies as of yesterday stood at Z$37,8 trillion, but banks only collected Z$22,7 trillion even though the central bank could meet the demand.
“Banks continue reeling from liquidity problems and the Reserve Bank has urged them in confidential memos to restructure their balance sheets to address the crisis. Failure to urgently tackle the emergency could result in sector-wide bank collapses,” said an analyst.
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27 Jan Zimbabwe banks in liquidity crisis
MAJOR commercial banks in Zimbabwe are facing a critical liquidity crisis largely caused by unlawful speculative investments which are now threatening to ruin the stricken institutions, according to industry sources.
Cash shortages at the banks have apparently compounded the situation as businesses and individuals are unable to access their money.
Almost all the banks -- Barclays, Stanbic, Standard Chartered, CFX Bank, Kingdom, NMB Bank, ZB Bank, MBCA, ZABG, FBC, CBZ, Agribank, ABC Corporation, Genesis, Premier, Interfin and Renaissance, as well as building societies such as CABS, Beverley, FBC BS and Intermarket -- are in dire straits.
Financial analysts said the banks are facing liquidity problems because they cannot secure cash applications from the Reserve Bank and have failed to pay their statutory reserves to the central bank. Despite the bank printing up to Z$800 trillion to alleviate the cash shortages, banks are failing to collect their cash requirements due to lack of security.
“Zimbabwean banks are facing serious liquidity problems because they have tied up a sizeable portion of their balance sheets in illiquid assets such as shares, properties and foreign currency,” an analyst in Harare said.
Under the terms of Zimbabwe’s Banking Act, it is illegal for banks to buy shares unless they are being held as security for a loan or are owned through swapping debt for equity.
A trader said Zimbabwean banks have invested an average of 22% of their total assets in securities. The bank's securities and investments in financial terms, include Z$31,1 trillion for Standard Chartered, Stanbic Z$17,2 trillion, ZB Bank Z$9,8 trillion, CBZ Z$17 trillion, Agribank Z$7,7 trillion, Barclays Z$21,6 trillion, FBC Z$17,2 trillion, Kingdom Z$23,2 trillion, ZABG Z$8,8 trillion, NMB Z$6,4 trillion, ABC Z$17,8 trillion, Premier Z$8,9 trillion, and Interfin Z$7,8 trillion or 75% of total assets.
Major building societies CABS and Beverley invested Z$17,8 trillion and Z$5,6 trillion respectively.
“Due to their failure to convert into cash stocks and other investments, the banks are currently unable to restructure their balance sheets to deal with the liquidity situation,” a trader said.
The situation has been worsened by the current poor performance of the stock market due to the liquidity crisis in the money market and the exchange rate volatility.
Furthermore, the trader said most financial institutions had exhausted their collateral instruments, making it difficult for them to borrow both in their inter-bank market and from the Reserve Bank.
Cash orders by banks and building societies as of yesterday stood at Z$37,8 trillion, but banks only collected Z$22,7 trillion even though the central bank could meet the demand.
“Banks continue reeling from liquidity problems and the Reserve Bank has urged them in confidential memos to restructure their balance sheets to address the crisis. Failure to urgently tackle the emergency could result in sector-wide bank collapses,” said an analyst.
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24 Jan Good rains move SA to grow more maize
Heavy rains have encouraged South African maize farmers to devote more acreage to the cultivation of the crop this season, according to officials in the agricultural sector.
Wheat yields are also expected to be higher-than previously forecast, due to healthy rains throughout the southern African region.
Analysts said the increase in maize production should ease pressure on South African consumers who had seen prices of maize and wheat escalate, alarming monetary authorities and resulting in a series of interest-rate hikes to tame inflation.
According to the Crop Estimates Committee (CEC) farmers intended to plant 2.786 million hectares of maize in 2007/08, up from the 2.754 million ha.
The CEC put the white maize area at 1.71 million ha, from the 1.69 million it predicted in its second poll in November.
The yellow maize area was raised to 1.07 million ha from 1.06 million before.
"At this stage it's mostly because of the good rainfall conditions that we've had as well as the better prices," Committee member Rona Beukes said.
The CEC also raised its estimate for this season's wheat crop by 2.21 percent to 1.812 million tonnes based on higher expected yields.
"The expected yield is 2,87 T/ha as against 2,80 T/ha of the previous month," it said.
Maize prices have been volatile since last year, when expectations of a maize shortage pushed prices of both white and yellow maize above 2,000 rand a tonne.
The benchmark March maize contract fell by the maximum 45 rand daily limit on Thursday. White maize futures for that month ended 2.58 percent down at 1,701 rand a tonne.
March yellow fell 2.37 percent to 1,857 rand a tonne.
July white maize was also down 2.72 percent to 1,431 rand a tonne and yellow fell 1.89 percent to 1,507 rand.
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21 Jan SA leaves neighbours in the dark
ESKOM, South Africa's state-owned electricity company has stopped supplying power to neighbouring countries because of acute domestic shortages.
Zimbabwe and Mozambique are thought to be the worst affected countries after Eskom pulled the plug, leading to a shut down of basic services across Zambia and Zimbabwe for hours on Saturday and Sunday.
Although power was restored in Zambia about eight hours later, Zimbabwe remained without electricity, water, telephones and traffic signals for much of Sunday.
A source in South Africa said recent daily power cuts in South Africa had prompted Eskom to cut supplies to its neighbours as power outages at home are having a major impact on the country’s economy.
On Friday, enraged commuters set fire to trains in Pretoria after power cuts caused two-hour train delays.
President Thabo Mbeki on Sunday met Eskom's executives to discuss the power shortages. Last month Mbeki admitted the government had been wrong to refuse Eskom's request for more investment in power generation several years ago.
The governing African National Congress has now recommended the urgent development of a national response plan, to keep the electricity flowing.
Zimbabwe imports around 40% of its electricity but lack of foreign currency means that it is often late in paying its bills. Power and water failures occur daily in Zimbabwe's crumbling economy, but not on a national scale. Zimbabwe state radio, running on generators, reported the failure was caused by a major breakdown but did not elaborate.
South Africa is experiencing its own power shortages, with large parts of the country often going without electricity for several hours. Eskom says demand is simply too high for it to keep up with, but there is mounting fury that the power cuts are unpredictable and causing unnecessary economic losses and personal misery.
South Africa’s Business Report on Sunday said Eskom has been forced to slash power supplies to neighbouring countries in a desperate bid to meet local demand. The beleaguered utility, which generates 95% of its electricity for local use, exports surplus power to Botswana, Namibia and Zimbabwe -- countries that will now no longer be fed from South Africa's troubled grid, the report said.
The opposition Democratic Alliance said on Sunday that Eskom should cancel supply contracts with its neighbours while its domestic market is in such turmoil.
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17 Jan Zimbabwe firms hit by water shortages
Zimbabwe business leaders are lamenting an acute shortage of water which they say is crippling production in the manufacturing sector, already handicapped by the shortage of foreign currency with which to source raw materials.
The Confederation of Zimbabwe Industries (CZI) on Tuesday said beverage manufacturers, milk producers and foundry makers are hardest hit by the water shortages.
"The water crisis is very serious because water is a significant input to raw materials and shortage stops the whole production. Without water nothing will be produced," said CZI President Callisto Jokonya.
Jokonya did not say how much industries in Harare could have lost directly as result of the severe water shortage that began last week after a power failure at the capital's main water treatment plant.
The water crisis has seen industries and residents in Harare and its dormitory town of Chitungwiza go without treated water. Reports said hospitals, hotels and other business have had to resort to boreholes, -- and even swimming pool water, in the case of hotels, - to keep operations going.
A spokesman for The Zimbabwe Doctors for Human Rights (ZDHR) told the press that water shortage was a violation of residents' rights and could lead to serious outbreaks of diseases in a city where abject poverty and hunger are on the increase.
"It is a clear violation of people's rights. The health delivery system is severely compromised by the lack of water, " said the ZDHR spokesman.
The water crisis is only one on a long list of economic woes besetting Zimbabwe, including shortages of food, power, medicines and hard cash.
Meanwhile, Zimbabwean schools, hit by severe food shortages, are demanding that children bring along their own supplies. Furthermore, a teachers' union has said no learning will take place at most schools that opened for the new term yesterday because of a serious shortage of teachers.
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16 Jan Gono to explain Zimbabwe cash crisis
A parliamentary committee in Zimbabwe has summoned the country's central bank chief, Gideon Gono, to explain current nationwide cash shortages, according to a report in the state controlled newspaper, The Herald.
"We have agreed as a committee that we should give the governor the opportunity to talk to us next Monday," Daniel Mackenzie-Ncube, chairman of the parliamentary committee on budget and finance, was quoted as saying in the newspaper. "There is also the issue of current cash crunch that is deepening on the transacting public, we want to know what the central bank is doing about that."
Last month Gono threatened to expose high-ranking politicians and top business executives who he said were hoarding cash to buy scarce foreign currency on the burgeoning parallel market.
A Zimbabwe radio bulletin said police investigating cash hoarders in the capital Harare have arrested a 26-year-old man who had stashed 36 billion Zimbabwe dollars in boxes and bags at his home.
The arrest comes amid worsening cash shortages across the country with thousands of Zimbabweans forced to queue for hours outside banks to access often only small sums of cash.
According to the report, the money was found at the man's home in the plush Greendale suburb during a police raid. Officially that the sum is worth US$1.2m but at black market rates it is worth around US$14,000.
The cash seizure is the second in a month, following the arrest of a young illegal foreign currency dealer in late December. Dorothy Mutekede was arrested in possession of 10 billion dollars worth of brand new banknotes. She was detained but later released after paying a fine.
Mutekede implicated a former central bank advisor in her dealings but police have not been able to pursue their investigations because of lack of evidence.
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14 Jan Nigeria sues tobacco firms for $44bn
Nigeria is suing three international tobacco firms for $44bn (£22bn) - the first such case in the developing world - due to start in the capital, Abuja.
The Nigerian government says tobacco manufacturers are putting unacceptable pressure on the country's health services, and companies are targeting young people in an attempt to replace former smokers in Europe and America.
British American Tobacco (BAT), Philip Morris and International Tobacco Ltd, deny the claims and say they are socially responsible companies who do not target children.
They question the massive sums demanded by the Nigerian government and say the case "has no merit".
But Nigerian government lawyers insist they have a strong case.
Sources said E-mails between tobacco firm employees reveal deliberate attempts to increase the number of "young and underage" smokers and attempts to influence lawmakers to keep tobacco sales unregulated.
Four Nigerian state governments also plan to go to court early in 2008 to argue similar cases.
Cigarette smoking is widespread in Nigeria and BAT recently set up a factory in the West African country.
Anti smoking campaigners in Nigeria say children are exposed to positive messages about smoking all the time.
Furthermore, young people across Nigeria can buy cigarettes from vendors in single "sticks", which campaigners say makes it easier for young people to pick up the habit.
The World Health Organization estimates that 18% of young Nigerians smoke - storing up huge potential health problems in a country of 140 million people, most of whom are under 20.
Sources said a dossier of evidence that runs to 3,000 pages, consisting of internal company e-mails discussing how to target children and influence lawmakers in Nigeria exists.
The e-mails come from a public depository of evidence uncovered during a series of class-action lawsuits across the US.
Many of those cases have been initially successful, but litigants have seen payouts slashed or kicked out on appeal. In 2000 a Florida court awarded $145bn damages to hundreds of thousands of smokers, but the case was thrown out on appeal.
The Florida supreme court said making such an award would "result in an unlawful crippling of the defendant companies".
However, anti-smoking campaigners say children are definitely the targets of marketing campaigns.
Cigarette companies sponsor fashion shows and music concerts, said Eze Eluchie of People Against Drug Dependence and Ignorance (Paddi), a Lagos-based organisation.
"They have something called an 18-plus programme, which they say tries to prevent young people from taking up smoking. But when 16- and 17-year-olds see that, it makes them think smoking is grown-up. It's counter-productive," he said.
The Nigerian government is already trying to curb the spread of smoking. Cigarette adverts in the country have been restricted - only allowed on radio and TV after 2200 and billboards have been scrapped. The authorities in the capital, Abuja, are also considering a smoking ban in public places.
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10 Jan Nigeria Bank on London Stock Exchange
Diamond Bank Plc of Nigeria made history yesterday when it became the first West African Bank to be listed on the Professional Securities Market (PSM) of the London Stock Exchange (LSE).
Commenting on the admission to the LSE, Diamond Bank CEO said: "The listing is an important step in the evolution of the Bank's strategy and is aimed at raising stronger capital base, attracting new shareholders, raising its international profile, enhancing the leadership position of Diamond Bank in the middle market and developing the Bank into a reputable financial conglomerate".
The Professional Securities Market is the cream of the London Stock Exchange and members must pass through a rigorous process before they are listed in this market.
Analysts said membership will enabled Diamond to raise US$500m through 37.6 million newly issued GDRs, each representing 100 ordinary Diamond shares. The settlement price per GDR has been set at $13.30 and will be traded on PSM.
Diamond will also be able expand its footprint through traditional and electronic channels in order to seize the growing Nigerian retail market, enter new business segments like Mortgages, Insurance, Investment Banking and also strengthen its Francophone West Africa expansion.
Diamond Bank's market capitalisation post-offering is now N263.2billion (US$2.3 billion as of January 02, 2008), while its shareholders' fund is in excess of N100billion.
Morgan Stanley is the Global Coordinator and Sole Book-runner for the offering.
The Bank had its first major foreign equity capital injection in April 2007 when an international consortium led by Actis Capital LLP, as strategic investor, injected $134 million into the Bank. The investment gave Actis a 19.1 per cent stake in the Bank. Actis is a leading private equity investor in emerging markets, having significant investments across Africa, China, India, South East Asia and Latin America.
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08 Jan Pay rise for civil servants with HIV
Malawi’s Health Minister Marjorie Ngaunje has announced that the country’s civil servants affected by the HIV virus will receive an extra US$35 a month to help them buy more food.
"We thought [it] would go a long way in improving their nutritional requirements which are essential to their wellbeing," Ngaunje told the press. The government is the country's largest employer with around 120,000 civil servants. Their monthly salaries average about US$70.
Tens of thousands of Malawians die of Aids every year with about 7% of the 13m population infected. Another government official said that the extra money should help those with HIV prolong their lives.
Malawi has lost thousands of trained staff through the prevalence of worst HIV/Aids. After years of silence, the authorities spoke out about the crisis in 2004, when a programme to tackle HIV/Aids was launched. Last year, the government called on all sexually active people in the country to take an Aids test.
The UN estimates that 80% of people with HIV in sub-Saharan Africa do not know they have the virus.
08 Jan Nigeria militants blow up oil pipe
Militants in Nigeria’s Delta State, blew up the Beniboye flow station pipeline, owned by the Nigerian Agip Oil Company (NAOC) and a water disposal pipeline, belonging to the Shell Petroleum Development Company (SPDC) last Sunday.
Sources said the militants claimed their actions were justified because NOAC and SPDC have been polluting the oil communities in the area and failing to do clean ups.
There were no reports of any casualties in both incidents. Community leaders in the Delta have in the past accused the NAOC of polluting their environment and given the company an ultimatum to clean up the affected areas.
The SPDC has always denied polluting the communities from the crude oil platform but the Ministry of Environment, Asaba in a letter to the General Manager of the company in October 2002, confirmed that six of the 13 valve heads along the waste water disposal line from the Forcados Terminal to the road leading to the Odimodi town were "leaking profusely."
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07 Jan Nigeria telecoms subscribers at 46m
Growth in the Nigerian telecoms sector peaked at 46.2 million subscribers at the end of third quarter of 2007. The nation's teledensity, considered the number of phones to 100 people, is 27.42, according to recent statistics released by the Nigerian Communications Commission (NCC).
Total connected lines at the end of Q3 2007 is pegged at 46,228,173 lines with GSM users dominating with 43,593,310 lines (94%). Growth in fixed wired/wireless services went up by 5% to 2,235,257 of total connected lines, while mobile CDMA accounts for 399,606 lines (1%) during the same period.
Total active lines now stands at 38,393,624 lines with fixed wired/wireless service accounting for 1,391,648 lines; GSM mobiles stand at 36,692,806 and mobile CDMA stands at 309,170 lines.
Analysts said the growth was achieved despite the NCC ban on promotional activities by the "big three" GSM operators, MTN Nigeria, Glo mobile and Celtel Nigeria, due to widespread congestion on their networks.
Intercellular spokesman, Fidel Otuya, told the press recently that the company will decide on a planned acquisition of 70 per cent stake by Sudan Telecommunications Company (Sudatel), the national telecoms company of Sudan.
If the acquisition is approved by Intercellular shareholders it will mark the Sudanese operator's initial foray into Nigeria and inject some funds to drive the Nigerian operator's network expansion.
According to the latest NCC statistics, quarter-on-quarter growth in the mobile GSM sector has been appreciable peaking at 34,240,613 lines and 38,062,353 lines at the end of first and second quarters of this year respectively.
Within the same period, fixed wired/wireless service growth rate is marginal compared to the exponentially growing GSM sector with increase from 1,697,567 lines at Q1, 2007 to 1,722,507 lines at Q2, 2007.
Significantly, the figure shows that Nigerian telecoms market has witnessed a phenomenon common to most telecoms market that have hitherto been faced by pent up demand: explosive uptake of mobile services followed by tapering growth in the market as the curve flattens.
In 2001, the year that three GSM operators, MTN Nigeria, Econet Wireless Nigeria (now Celtel Nigeria) and Mtel went live with their service in August that year, the total subscriber base was 866,782 connected lines and teledensity was 0.73. Of that number, the fixed line services, like NITEL and other PTOs like Multi-Links (now Multi-Links Telkom), Intercellular among others accounted for 600,321 while GSM operators had 266,461 lines.
By 2002 total connected lines had nearly quadrupled to 2,271,050 lines and teledensity of 1.89. The fixed line market segment was then 702,000 lines, a marginal increase over the previous year's 600,321 lines.
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03 Jan WHO warns southern Africa of malaria
The World Health Organization (WHO) has warned that Southern Africa could be facing a heightened risk of malaria this year.
The WHO statement comes in the wake of the climate phenomenon known as La Nina which has caused unusually wet conditions in the region, which could in turn raise malaria infection levels.
Malaria is one of the most lethal diseases in sub-Saharan Africa—responsible for 9 percent of deaths annually. It is also the leading killer of African children under age 5, causing around 18 percent of all deaths (803,000 per year) in that age group.
Analysts say the rapid spread of resistance to anti-malarial drugs, widespread poverty, and weak health infrastructure throughout Africa means that the burden from malaria on the continent continues to rise.
Urging southern African countries to raise awareness and distribute anti-malaria drugs and insecticide-treated nets, Joaquim Da Silva, WHO's Malaria Epidemics & Emergency Officer in the region said:"Malaria is a climate sensitive disease and for this time of the year we have experienced uncommonly heavy rainfall and flooding in parts of southern Africa."
Further heavy rainfall in the region has been forecast until February. La Nina originates in the eastern Pacific Ocean, but its effects reach around the globe, making wet regions wetter and dry ones drier.
Da Silva said the phenomenon could also raise the risk of flooding in river systems in Angola, Zambia, Zimbabwe, Mozambique, Namibia, Botswana and South Africa.
A recent study on the cost-effectiveness of malaria control found that in a very-low-income country, for insecticide treatment of existing nets, the cost-effectiveness range was US$4-10 per DALY averted; for provision of nets and insecticide treatment $19-85; for residual spraying (two rounds per year) $32-58; for chemoprophylaxis for children $3-12 (assuming an existing delivery system); for intermittent treatment of pregnant women $4-29; and for improvement in case management $1-8.
A package of interventions to decrease the bulk of the malaria burden is not, however, affordable in very-low-income countries. Coverage of the most vulnerable groups in Africa will require substantial assistance from external donors, according to the study, according to the researchers.
Results also showed that in a very-low-income country, the cost-effectiveness range of insecticide-treated nets was US$19-85. If only insecticide treatment was required, the range would be decreased to US$4-10 per DALY averted. Cost effectiveness was $32-58 for residual spraying (two rounds per year), $3-12 for children's chemoprophylaxis, $4-29 for intermittent treatment of pregnant women, and $1-8 for improvement in case management.
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02 Jan Counterfeit goods hit Tanzania
Growth in the importing of counterfeit goods into Tanzania has alerted the authorities to the possibility that powerful drug barons in the country have switched track.
Tanzania’s Deputy Minister for Trade, Industry and Marketing Hezekiah Chibulunje says the government is monitoring the trend closely and is poised to come up with new measures to stop the illegal business.
Chibulunje said the drug dealers have changed tack after stringent measures were introduced to curb drug trafficking. They have abandoned drugs for fake goods because the risks involved are minimal.
Of late, Tanzania has seen an unprecedented upsurge in sales of counterfeit products. Since March, the Fair Competition Commission (FCC) has destroyed counterfeit goods worth over Tsh200m (US$180,000).
The goods, which were impounded at the port of Dar es Salaam, included electrical items, tube lights, energy savers, extension cables, bulbs and shoe polish. There were also 240 cartons of TV sets and 404 cartons of loudspeakers.
Industry sources said in most cases, the importers of fake goods do not pay taxes. Tanzania acknowledges that the fight against counterfeits is a war against very powerful individuals with a lot of money who once engaged in illegal drug trafficking.
A new law is expected to make the importation of fake goods more difficult.
The head of the anti-counterfeit department at the Fair Competition Commission, John Esau Mponela, recently told the press that trade in counterfeits, which includes electronic and electrical goods, medicines, batteries, matches, tyres, motor vehicle spares, shoe polish and toothpaste has been expanding.
"In some areas such as electric goods, it is feared that counterfeits account for between 30 and 40 per cent of the total value of imported goods. The trade liberalisation of the late 1980s and globalisation have opened the doors for such goods in Tanzania," he said.
A recent survey by ICR Corporate Research estimated that Tanzania Cigarette Company Ltd is losing approximately 40 per cent of its income due to counterfeits. The company also estimates that East African Community member states lose around US$20m annually in taxes due to counterfeits.
An analyst said African countries are increasingly becoming victims of counterfeits with huge negative effects in terms of lives and health; destruction of property and value for money losses.
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27 Dec Cashless Xmas for Zimbabweans
Zimbabweans celebrated Christmas lamenting the lack of cash as banks failed to heed pleas to remain open for shoppers desperate for cash, according to media reports in the country.
Banks had been ordered by Central Bank Governor Gideon Gono to extend their hours in the weeks leading up to Christmas. However, as a result of a run on banknotes, banks were closed on
Christmas Day contrary, to earlier announcements.
Witnesses said scores of customers were left empty handed in long, winding queues at the few automated cash machines dispensing banknotes in Harare and other towns.
Zimbabwe is grappling with a deep economic crisis, marked by inflation pegged around 8 000 percent, high unemployment and poverty, and chronic shortages of food, fuel, foreign exchange and power cuts.
The country’s central bank has responded to the cash crunch by issuing high-value notes in ZIM$750 000 (about $6 or R42 at the official exchange rate but just $0.12 on the black market), ZIM$500 000 and ZIM$250 000 denominations.
State media reported on Christmas Eve that the central bank had injected an additional ZIM$20-trillion ($667-million at the official exchange rate and about $10-million on the black market) into circulation.
Before introducing the new notes, Gono said Zimbabwe had ZIM$$67-trillion in circulation, although only ZIM$2-trillion was in the formal economy.
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20 Dec Starbucks's $1m investment in Africa
Starbucks, the US coffee retailer, is to invest more than $1m in two farmer support centres tasked with improving the quality of East African coffees.
The company said it wants to double its purchasing of East African coffee by 2009 and needs to help growers to improve their yields of high quality beans.
Starbucks senior vice president, Dub Hay, of the group's global coffee procurement, says it is currently tough for coffee growers to meet Starbucks' exacting standards.The company has requirements on quality and price transparency but also evaluates its suppliers based on the social conditions and environmental impact of their farms.
"We're very difficult. It's hard [for growers] because we buy the best of the best, from the top of the mountain," Hay said.
Hay revealed that in the last two years, coffee from East Africa has only accounted for six per cent of Starbucks' total coffee supply. Most of the 300 pounds it buys each year are sourced in Latin America, although it has seen a 400 per cent rise in purchasing in Ethiopia between 2002-2006.
The new farmer support centres will be based in Addis Ababa and Kigali, Rwanda. They will work with current Starbucks suppliers as well as growers who are aiming to become suppliers. The Kigali centre will provide support for the whole East Africa region, including Kenya.
Agronomists at the centres will work with local growers on field practices like pruning and fertilising as well as processing techniques.
Starbucks says those who manage to meet its high standards will earn more for their beans than selling them on the world market.
Last year, Starbucks paid an average $1.42 per pound of green beans (across all coffees) significantly higher than the average commodity price of $1.04 per pound. Starbucks is striving to become the world's biggest global coffee brand and has more than tripled its revenues over the past five years to US$9bn in 2007. The company now has more than 15,000 stores worldwide.
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17 Dec Zimbabwe in “new” crude oil deal
Zimbabwe has struck a deal to import crude oil from Equatorial Guinea and is planning to reopen a refinery to process fuel and ease acute shortages, according to reports in the state media.
Zimbabwe is experiencing acute shortages of fuel, foreign currency and food, which critics blame on President Robert Mugabe's skewed policies. The country is also marked by the highest inflation rate in the world at nearly 8,000 percent.
A report in the official Herald newspaper today said Zimbabwe had signed a deal to buy crude oil from Equatorial Guinea, with which it has forged close
ties after it helped foil an alleged coup in the oil-rich west African country in 2005.
"Following our engagement with Equatorial Guinea ... Zimbabwe can now even
get crude oil and arrange for its refinement through third parties," the Herald quoted Industry and International Trade Minister Obert Mpofu saying.
The report did not give further details and Mpofu was not immediately available for comment.
The Zimbabwe government has in the past touted fuel deals which remained unfulfilled. In 2005 Zimbabwe signed a past with Iran to revive an oil refinery built using Iranian technology in the 1960s. Work at the refinery has not started to date.
Mpofu said Zimbabwe was also looking at possible crude oil imports from Angola, one of the continent's leading producers.
Last month, Mugabe officially launched a $6-million bio-fuel plant with a capacity to produce 100 million litres of diesel per year, saying the country was moving to resolve shortages that continue to grip the economy.
Critics blame Mugabe, in power since independence from Britain in 1980, for ruining one of Africa's brightest economic prospects through policies such as the seizure of farms from whites to resettle landless blacks.
Mugabe denies the charge and accuses western nations of sabotaging the economy as punishment for his land reforms.
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13 Dec From Kenya slum to MSc degree
A Kenyan man who grew up in the crime-ridden Mathare slum in the capital, Nairobi, has been awarded a MSc degree in International Development Project Management by the University of Manchester, after completing the course.
Sammy Gitau (35) says he was inspired to apply for the course after finding a prospectus in a rubbish bin in Nairobi. He was initially refused a visa to attend the UK university as he had only two years of formal education.
From the age of 13 he was the family breadwinner after his father's murder. He sold drugs and battled addiction before turning his life around.
"It feels wonderful; it feels wonderful," Gitau told the BBC's Network Africa after receiving his MSc degree. "It makes me look back and see myself, see those difficult times, and also, importantly, realise we have potential people in the slums. We have other people who are just like me."
The University of Manchester describes Gitau's achievement in winning a master's degree as "a miraculous journey".
Gitau, 35, says he once came close to death after a drugs overdose. "After the drugs put me in a coma, I remember hearing hospital staff telling me I was going to die and when you are dying, you make a deal with God," he said.
Once out of hospital he began a project in Mathare to help children in the slum where he grew up. His community resource centre used donated containers as classrooms and with three volunteers taught children skills like carpentry, tailoring, computer skills and baking.
The project cost $100 a month to run and is estimated to have helped some 20,000 slum children. This work brought Gitau, to the attention of European Union officials working in Kenya, who, on hearing of his dream, helped him apply to the University of Manchester's School of Environment and Development.
The university decided his vast experience on the ground made him eligible to study and paid his course fees; his living costs were funded by charitable donations.
"I found it humbling to teach Sammy - it really is a remarkable achievement," the University of Manchester's programme director Pete Mann said. Gitau says he will continue to direct his education and his energies at improving life for others in Mathare slum.
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12 Dec Zimbabwe hit by cash shortages
Cash shortages in Zimbabweans is forcing people to sleep in bank queues in a desperate bid to get cash, according to a report by a state news agency, New Ziana.
Others join the queues as early as dawn but sometimes go home empty handed or with a paltry withdrawal.
Zimbabwe banks have set withdrawal limits of Z$20m (R120) for individuals and Z$40m (R240) for companies amid shortages of money in circulation.
Meanwhile, the country's central bank says it is planning a currency changeover in the near future. Central bank chief Gideon Gono says he is deliberately starving the market of cash to fight illegal foreign currency dealers.
But analysts say foreign currency dealers have already found a way around the cash problem - they pay a better rate electronically and make out an invoice to avoid trouble with the banks
Investigations by a local newspaper, Financial Gazette last month revealed that since the cash shortages started, a number of individuals have been buying cash after banks imposed limits.
After the central bank imposed limits on cash withdrawals last year, individuals and firms have been courting cash-rich individuals and firms for
instant cash at a premium.
Fast foods operators and mobile air-time dealers are the main "cash barons" raking in vast profits from the public and companies desperate for cash.
Zimbabwe is in the throes of an economic crisis underpinned by high inflation now hovering around 15 000%. Critics blame President Robert Mugabe for the country's economic crisis.
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11 Dec Nigeria sets $70m scheme for the poor
Nigerian is set to launch a welfare scheme aimed at helping poor families. The government says it has set aside US$70m from which poor families will get monthly payments for one year, on condition that they send their children to school and get them immunised against childhood illnesses.
The programme will be administered by the National Poverty Eradication Programme.
NAPEP national coordinator Magnus Kpakol emphasised that this is a conditional social safety-net scheme, dependent on the recipient's "good behaviour and engagement in some kind of social good".
Initially the scheme will help some 12,000 households and will be limited to 12 states and the federal capital, Abuja.
NAPEP acknowledges that previous micro-credit schemes - small loans from the government repayable only when the client feels able - also failed, largely because people felt less compelled to repay the government than private institutions.
The difference with this scheme is that it involves a monthly grant, alongside a microcredit element of a one-off start-up loan, and most importantly, that it will be delivered through community groups who will make sure it is repaid.
In an interview with the BBC Kpakol said: "It is un-Nigerian for any person to be left in misery."
Furthermore, Kpakol said the government aimed to ensure "that any Nigerian who is so disadvantaged or in such extreme poverty or misery, is given a helping hand to be able to fend for themselves."
He added that once the reciepients had established a small business, or were able to get by, they would be asked to repay their start-up grant so that this money can be "revolved" into helping others.
Despite Nigeria's oil wealth, most of its 140 million people live in poverty.
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06 Dec SA, Zambia cut off power to Zimbabwe
Zimbabwe’s economic woes have worsened with news that South Africa and Zambia have stopped power supplies to their cash-strapped neighbour over an outstanding US$42m debt.
Sources said only Mozambique and the Democratic Republic of the Congo continue to supply Zimbabwe "out of goodwill" despite also being owed huge sums of money by the virtually bankrupt Zimbabwe Electricity Supply Authority (ZESA).
"The Reserve Bank of Zimbabwe (RBZ) has been unable to pay this debt because of the unavailability and cost of foreign currency. As a result, South Africa and Zambia have discontinued supplies," said a Zimbabwe parliamentary report.
South Africa, Zambia, Mozambique and DRC power firms have previously supplied a combined 600 megawatts to Zimbabwe or about 35% of total
consumption.
However, the foreign power firms that are struggling to meet own domestic demand as an energy crisis long predicted to hit the region begins to bite, this year reduced exports to Zimbabwe to only 150 megawatts.
Sources said ZESA's inability to boost generation capacity at its ageing power stations and a critical shortage of foreign currency to import electricity
from neighbouring countries has left Zimbabwe grappling with severe power shortages.
It is estimated that Zimbabwe’s manufacturing sector is currently operating at less than 30 percent
of capacity. Mines are operational for only four hours out of the 24-hour schedule, according to the Parliamentary report which has urged the government to pay the Mozambican government US$20 million to avoid further disconnections.
However, President Robert Mugabe told supporters of his ruling ZANU PF last week that the shortage of electricity would soon be a thing of the past, saying his government planned to build more hydro-power stations. He did not say how the government would raise funding for the power stations.
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04 Dec SA miners strike over safety issues
South African mine workers today went on a one-day strike in protest at poor safety in the country's mines.
Analysts said the action, spearheaded by South Africa's National Union of Mineworkers (NUM) - is expected to halt work at more than 60 mining companies, including AngloGold Ashanti, Gold Fields and Harmony.
Around 240,000 people were expected to take part in the first countrywide stoppage by miners over safety issues. South Africa is the continent's biggest gold exporter and a large producer of platinum. The country also possesses some of the deepest mines in the world and one of the worst reputations for mine safety.
Erick Gcilitshana, the NUM health and safety head said the union wants to put pressure on firms to spend more on safety and force the government to prosecute negligent mine owners.
He said with the gold price at its highest level in a quarter of a century, the number one priority for the employers has become production.
"Workers are saying enough is enough. Safety is needed now," said Gcilitshana. "The industry made a lot of empty commitments and the fatality rates are forever rising to the stars... employers need to take a leadership role and invest in safety in the same way they invest in production," he added.
The strike comes as a safety audit into mining - ordered by President Thabo Mbeki - is due to start later this month. In October 2007, more than 3,000 miners were trapped a mile (1.6km) underground at a Harmony Gold mine, some for as long as 40 hours before they were rescued. South Africa's mining sector accounts for arouind 16% of the country's GDP.
04 Dec Air Zimbabwe doubles fares
Air Zimbabwe, the state airline, has doubled its fares since Monday this week and the cost of a new Zimbabwe passport went up thirtyfold.
In a statement to travel agents, Air Zimbabwe said a round trip to London doubled to Z$804m, around US$400 at the dominant black market exchange rate or a massive US$27,000 at the obsolete official exchange rate of 30,000-1.
Notices in the Harare passport office on Monday showed a range of higher costs from immediate effect in local currency for passports and other documents.
A regular passport went up thirtyfold and passports were also being issued in a ''fast track'' service over several days for $220 in American bills.
Last month the nation's chief statistician said Zimbabwe was so short on bread, meat and other goods, the government couldn't calculate inflation.
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03 Dec Algeria, France on verge of $4bn pact
Algeria and France are expected to finalise a series of big business deals worth around US$4bn during French President Nicolas Sarkozy’s pending visit to the north African country.
The contracts include billion-dollar investments in the Algerian oil and gas business by the French energy companies Total and Gaz de France.
France is already Algeria’ s biggest investor.
However, analyst say Sarkozy's refusal to apologise for the deaths of thousands of Algerians during French colonial rule could scuttle the deals.
Sarkozy will be leading a large delegation of businessmen to Algiers, where they are expected to seal the deals.
Political analysts say there is still deep anger left over from years of colonial rule by France that makes the relationship between the two countries uneasy and complex.
Many current Algerian political leaders spent their youth in the revolutionary struggle; and some say a relationship of equals is not possible until France accepts that its persecution of Algerians who were fighting for independence was unjust, cruel and racially motivated.
The war between Algeria and France started in 1954, and cost hundreds of thousands of Algerian and French lives before independence was finally granted in 1962.
President Sarkozy has defended his refusal to apologise, telling Algeria's leaders they should focus on the future and not "beat their breasts".
"We must not ignore [the past] but come to terms with it," Sarkozy said in an interview this weekend. "That will require a bit more time for both of us, because there are wounds on both sides that have not yet healed."
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29 Nov Nigerian Bank hits record profit
The United Bank for Africa in Nigeria has recorded a profit after tax of N21bn in the year ended September 30, 2007, according to a press statement.
This represents an increase of 86 per cent over UBA's 2006 performance when it posted N11.55bn PAT. Its profit before tax, however, grew by 115 per cent, from N12.8bn to N29.5bn.
The result also showed an unprecedented increase in UBA’s balance sheet size, which rose to N1.64tn, representing an increase of 56 per cent from its 2006 figure of N1.05tn.
The bank’s audited accounts presented to the Nigerian Stock Exchange showed that its balance sheet and its deposit base grew from N776bn to N905bn during the same period.
In all, the bank ended the year with a gross earnings of N109.512bn, which is 21 per cent above the N109.512bn reported in 2006.
By this result, UBA has successfully surpassed its profit projections of N20bn for 2007 made during the bank’s hybrid offer in April.
UBA’s attributed the impressive performance to a marked improvement in the operational efficiency of the company that saw the cost to income ratio improve from 80 per cent in 2006 to 69 per cent in 2007.
Based on this result, the directors of the bank are proposing a dividend of N13.79bn to be distributed to the shareholders of the bank at N1.20 for every share held.
This is 20 per cent higher than the N1.00 dividend the bank promised during its just concluded public offer. The bank said this gesture underscored the management’s objective of enhancing value and returns to shareholders. UBA has a market capitalisation of N650.79bn as at November 26, 2007. It serves its six million Nigerian customers from a network of over 700 branches and 900 ATMs.
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27 Nov Uganda-China in vehicle assembly pact
Uganda will start assembling vehicles and motorcycles in 2008 in a joint venture with the Chinese automobile manufacturer, Geely International.
The Chinese government is part of the MFK Corporation which has been formed to run the project. Uganda will be the third country in East Africa to have an automobile assembly plant after Kenya and Tanzania.
MFK Corporation manager, Juuko Lukanga told the press that the company will initially assembly small vehicles before venturing into truck assembling. Production capacity for 2008 is pegged at 1,000 units of vehicles and 5,000 units of motorcycles.
Lukanga said the plant will enable Ugandans to buy new vehicles at a greatly reduced price of Ush17 million ($10,000). Such vehicles currently cost Ush25 million ($14,700).
MFK Corporation has an initial capital outlay of $10 million but will eventually raise this to $300 million to implement its programmes. Lukanga said the company will need up to 3,000 acres of land which the Ugandan government has agreed to provide.
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26 Nov World cup draw fever hits SA
The draw ceremony for Fifa’s 2010 World Cup, hosted by Durban on Sunday has pitted the host team South Africa, against Nigeria in a tough group including Equatorial Guinea and Sierra Leone.
Host South Africa automatically qualifies for the World Cup, the first ever to be hosted by an African nation; however its name still appeared because Sunday’s draw combined the World Cup with the African Cup of Nations of the same year, to be organized by Angola.
For the World Cup, a total of six African countries will be in the final roster, up from four in the last tournament.
No changes were made to the African Cup of Nations, which lines up 16 teams.
Below is the final listing after Sunday’s draw:
Group 1: Cameroon, Cape Verde, Tanzania, Mauritius;
Group 2: Guinea, Zimbabwe, Namibia, Kenya;
Group 3: Angola (*), Benin, Uganda, Niger;
Group 4: Nigeria, South Africa (**), Equatorial Guinea, Sierra Leone;
Group 5: Ghana (+), Libya, Gabon, Lesotho;
Group 6: Liberia, Algeria, Senegal, Gambia;
Group 7: Côte d’Ivoire, Mozambique, Botswana, Madagascar;
Group 8: Morocco, Rwanda, Ethiopia, Mauritania;
Group 9: Burkina Faso, Tunisia, Burundi, Seychelles;
Group 10: Mali, Congo, Sudan, Chad;
Group 11: Togo, Eritrea, Zambia, Swaziland;
Group 12: Egypt (++), DR Congo, Malawi, Djibouti.
(*) Angola is automatically qualified for the 2010 African cup of nations as host.
(**) South Africa is automatically qualified for the 2010 World Cup as host
(+) Ghana will host the upcoming 2008 African Cup of Nations.
(++) Egypt won the last African Cup of Nations
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22 Nov Bromide cited in mystery Angola disease
A mystery disease which has killed at least four people and affected nearly 400 Angolans, is associated with very high levels of the chemical bromide, according to UN health experts.
More than half the patients are under 15. The first case of the disease was reported in October in the capital, Luanda. Symptoms include fever and extreme drowsiness.
The World Health Organization (WHO) is sending extra staff to Angola to treat people and investigate the outbreak. They include doctors and experts in food safety, logistics, and laboratory work.
In a statement, WHO said initial tests done in Germany found "extremely high" levels of bromide in five of six blood samples taken. The results are due to be checked at a laboratory in the UK.
Last week WHO officials said they were mystified by the disease.
Experts said if bromide is indeed the cause of the outbreak, it is not clear how patients were exposed to it. Bromide is sometimes found naturally - such as in sea water - but in other forms can be toxic or even fatal.
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20 Nov AfDB approves $325m loan to Egypt
The African Development Bank (AfDB) will support Egypt's Abu Qir 1300 MW Steam Power Project following the approval of a loan of around US$325m by the Bank's Board of Directors last Wednesday in Tunis.
The objective of the project is to increase the generation capacity of the Unified Power System (UPS) by about 4% in the year 2012, to meet the electricity demand on the system in the short-to-medium term.
The project involves the construction of a 1300 MW (2x650 MW) steam turbine power plant adjacent to the existing Abu Qir Power Station about 33 km to the east of Alexandria.
It is envisaged the project will supply power to the various consumers including households, agriculture, business and industries.
Power system studies have indicated an emerging shortfall in Egypt’s electricity supply by 2011/12 unless new capacity is installed.
The project is estimated to cost US$1,322.73m. The ADB loan will cover 24.5% of the total cost.
Other financiers are the Islamic Development Bank (IDB), the Arab Fund (AFESD), the Kuwait Fund (KFAED), and the Egyptian Electricity Holding Company (EEHC).
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19 Nov Mbeki urges Africans on development
South Africa’s President Thabo Mbeki has urged Africa and Africans in the Diaspora to share knowledge and economic cooperation, in order to boost development on the continent.
Addressing the African Diaspora Ministerial Conference last Friday in Johannesburg, Mbeki said: "There is an urgent need for knowledge sharing and economic cooperation between Africa and the Diaspora."
Delegates from Africa, Latin America, North America, the United Kingdom, Europe and the Caribbean attended the conference, opened by Foreign Affairs Minister Nkosazana Dlamini Zuma, to produce a framework, programme of action and draft declaration.
President Mbeki cited one of NEPAD's important projects, the Eastern Africa Submarine Cable System (EASSy) as an example of what can be achieved through collaborative efforts.
The 9 900km-long submarine cable between Durban and Port Sudan, is set to transform the telecommunication sector in Africa, cut telecommunication costs and is expected to be in operation by the end of 2008.
"There are indeed other projects in different sectors and I am confident that through these projects some of which are in collaboration with partners from the developed north, the vision of the African Renaissance will, in time, become a living reality," Mbeki said.
Furthermore, Mbeki said he fully endorsed the need for collaboration between the private sectors in Africa and the Diaspora to increase access to capital, to business expertise and markets to accelerate development both on the Continent and the African Diaspora.
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15 Nov Africa economy improving – WB report
The economic outlook for Africa is improving after a decade of growth of 5.4% for the continent that matches global rates, according to the World Bank.
The report entitled: Africa Development Indicators 2007 (ADI), says the trend indicates that a fundamental change is occurring in Africa.
However, it also notes that ongoing investment is needed to sustain long-term development on the continent.
The report looked at more than 1,000 indicators covering economic, human and private-sector development, governance, the environment and aid.
It notes that growth in many African countries appears to be fast and steady enough "to put a dent on the region's high poverty rate and attract global investment".
Commenting on the report the World Bank's chief economist for Africa, John Page, said: "For the first time in about almost 30 years we've seen a large number of African countries that have begun to show sustained economic growth at rates that are similar to those in the rest of the developing world and actually today exceed the rate of growth in most of the advanced economies."
The key, said Mr Page, was that "Africa has learnt to trade more effectively with the rest of the world, to rely more on the private sector, and to avoid the very serious collapses in economic growth that characterized the 1970s, 1980s and even the early 1990s."
Poor infrastructure and the high cost of exporting from Africa compared to other regions of the world has been holding the continent back rather than any failures of African enterprise or workers, according to the report.
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14 Nov Poverty rises in South Africa - report
More South Africans are living on less than $1 a day than was the case a decade ago, according to a report by the South African Institute of Race Relations (SAIRR).
An SAIRR survey revealed that 4.2m people were living on $1 a day in 2005 up from 1.9m in 1996, two years after the first all-race elections.
"Poverty has increased both in absolute numbers and proportionally," SAIRR said in a statement, blaming the rise on unemployment and HIV/Aids.
Despite good economic growth in recent years, unemployment has remained consistently high at about 26%. SAIRR says poverty is also increasing among the white population while inequality was growing among the black population.
SAIRR is sceptical about President Thabo Mbeki’s government's plan to halve poverty and unemployment by 2014 and notes: "It is going to take a long time to get rid of the poverty."
The governing African National Congress chooses a possible successor to President Thabo Mbeki in December, with trade unions backing the former deputy president Jacob Zuma.
He has criticised Mbeki's government for not doing more to reduce poverty. A government-backed report on unemployment released last month warned that a reliance on growth alone will not achieve the target of halving joblessness by 2014.
It also concluded that even if the government did meet this target, it would not go very far to relieving poverty. Analysts say the most likely areas of job growth are in domestic service, restaurants and the informal sector - none of which are well paid.
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14 Nov Poverty rises in South Africa - report
More South Africans are living on less than $1 a day than was the case a decade ago, according to a report by the South African Institute of Race Relations (SAIRR).
An SAIRR survey revealed that 4.2m people were living on $1 a day in 2005 up from 1.9m in 1996, two years after the first all-race elections.
"Poverty has increased both in absolute numbers and proportionally," SAIRR said in a statement, blaming the rise on unemployment and HIV/Aids.
Despite good economic growth in recent years, unemployment has remained consistently high at about 26%. SAIRR says poverty is also increasing among the white population while inequality was growing among the black population.
SAIRR is sceptical about President Thabo Mbeki’s government's plan to halve poverty and unemployment by 2014 and notes: "It is going to take a long time to get rid of the poverty."
The governing African National Congress chooses a possible successor to President Thabo Mbeki in December, with trade unions backing the former deputy president Jacob Zuma.
He has criticised Mbeki's government for not doing more to reduce poverty. A government-backed report on unemployment released last month warned that a reliance on growth alone will not achieve the target of halving joblessness by 2014.
It also concluded that even if the government did meet this target, it would not go very far to relieving poverty. Analysts say the most likely areas of job growth are in domestic service, restaurants and the informal sector - none of which are well paid.
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12 Nov UN launches $8m fund for Lesotho
The United Nations International Fund for Agricultural Development (IFAD) has launched a $8.7 million programme aimed at helping around 37,000 poor rural people in Lesotho have better access to financial services.
The project aims to enable beneficiaries to invest in on-farm or off-farm microenterprises and build their financial and household assets, IFAD said in a news release.
The $10.7 million Rural Financial Intermediation Programme is supported by a $4.35 million loan and $4.35 million grant from IFAD.
"This new programme will help poor rural people access financial services that respond to their specific needs," said Fumiko Nakai, IFAD's country programme manager for Lesotho.
"Poor people who are capable of engaging in income-generating activities will have better access to capital for investment," she said. "And very poor people with meagre incomes will also benefit because they, too, will be able to gradually accumulate savings and have places in which to safely deposit those savings.”
The Fund has supported agricultural and rural development in Lesotho since 1980 by investing in seven programmes and projects to reduce poverty in the country's rural areas. With the new initiative, IFAD's support to Lesotho now totals over $50 million.
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09 Nov Nigeria sues for $40bn over smokers
Nigeria says it has begun legal action against three leading international cigarette companies, British American Tobacco (BAT), Philip Morris and International Tobacco Ltd.
It is demanding more than $40bn in compensation over the alleged role of the cigarette manufacturers in promoting underage smoking. The Nigerian authorities are also seeking an injunction compelling the companies to stop the marketing, distribution and sale of cigarettes to minors.
A BAT spokesperson in London said children are not and never will be their audience and it believes the action is flawed and lacks merit.
Cigarette smoking is widespread in Nigeria and BAT recently set up a factory in the West African country.
Analysts say that over the past 20 years, tobacco companies have aggressively marketed their products in Africa and other developing regions to compensate for the loss of sales in developed countries that have imposed smoking restrictions. The World Health Organization estimates that 18% of young Nigerians smoke.
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05 Nov “Fragile” African states top world league
Twelve out of 25 countries in the world listed in a recent World Bank report as “fragile states” are in Africa. The African states include Angola, Burundi, Guinea-Bissau, Nigeria, Congo, Democratic Republic of Congo, Central African Republic, Liberia, Somalia, Sudan, Togo and Zimbabwe.
Other countries on the list are Papua New Guinea, Sao Tome and Principe, Tajikistan Timor-Lest, Uzbekistan, Afghanistan, Haiti, Myanmar and Solomon.
Fragile states, the report said, are: "Home to almost 500 million people, roughly half of whom earn less than a dollar a day, fragile states, until recently known in the World Bank as low-income countries under stress (LICUS), have attracted increasing attention.
"Concern is growing about the ability of these countries to reach development goals as well as about the adverse economic effects they have on neighbouring countries and the global spill-overs that may follow,” the report said."With their multiplicity of chronic problems, these countries pose some of the toughest development challenges.”
According to the report poor governance and extended internal conflicts are common among these countries, which all face similar hurdles: weak security, fractured societal relations, corruption, breakdown in the rule of law, and lack of mechanisms for generating legitimate power and authority.
As low-income countries, LICUS also have a huge backlog of investment needs and limited government resources to meet them. "Past international engagement with these countries has failed to yield significant improvements, and donors and others continue to struggle with how best to assist fragile states. LICUS are characterised by weak policies, institutions, and governance,” the report said.
Furthermore, the bank noted that fragile states have a number of similarities: their infant mortality rate is a third higher than that of other low-income countries, life expectancy is 12 years lower, and their maternal mortality rate is about 20 percent higher.
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31 Oct AfDB in pact to expand ITC in Africa
The African Development Bank (AfDB) will work jointly with the International Telecommunication Union (ITU) in interconnecting all African capitals and major cities with ICT broadband infrastructure.
The deal was reached on Monday in Kigali, Rwanda, where hundreds of top government and business leaders gathered at Serena Hotel to chart the future of ICT on the African continent. Under the deal, the ITU and AfDB will actively mobilize partners and financing to close ICT broadband infrastructure gaps between major centres in Africa.
"To support new ICT infrastructure investments and fill in remaining gaps, ITU and AfDB will jointly undertake feasibility studies and develop project proposals in consultation with Member States and other stakeholders in the region," the AfDB said in a statement.
AfDB President Dr Donald Kaberuka said: "The Bank aims to stimulate economic growth and climate and facilitate economic integration. We want to make the economies of Africa more competitive, and therefore AfDB is committing to the development of information and communication technology across the continent."
Meanwhile, Microsoft has pledged to support the Africa's initiative to connect the continent with a backbone broadband infrastructure.
Michael Rawding, Microsift’s vice president said the company will mobilise human, financial and technical resources required to expand the development of the ICT, infrastructure and connectivity.
"We view 'Connect Africa' as an important form of to have a dialogue about a new way of thinking about the problem of ICT and economic development in Africa," Rawding said.
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25 Oct China buys 20% stake in SA bank
China's state-owned Industrial & Commercial Bank is to buy a 20% stake in South Africa's Standard Bank for $5.5bn (£2.7bn).
Analysts said the move underlines China's growing international economic might, and interest in Africa, as it increasingly sees the continent as a source of raw materials and a place to invest.
China's banks are cash-rich on the back of the country's economic boom.
A spokesman for Standard Bank said the deal with Industrial & Commercial will put the two firms "at the crossroads of economic interaction between China and the African continent.”
Analysts said it was important to notice that the Chinese bank was only buying a minority stake, adding that Beijing wanted to avoid the kind of political frictions that a full takeover might cause.
In 2005, Chinese state-owned oil company CNOOC was forced to abandon a takeover bid for US energy giant Unocal, following strong opposition in Washington. A number of US politicians objected on security grounds.
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23 Oct Air Zim bid to charge foreign currency
Air Zimbabwe is considering plans to charge passengers in foreign currency for specific routes in a bid to correct the mismatch between its revenue and cost streams, a parliamentary portfolio committee heard yesterday.
Sources said Air Zimbabwe chairman Mike Bimha told the parliamentary portfolio committee on transport that this was one of the avenues the embattled airline could take to remain afloat.
"Passengers that go on board British Airways and South African Airways pay in forex. Why can't they give that forex to Air Zimbabwe?" Bimha asked. "We can't ask the Reserve Bank of Zimbabwe (RBZ) to give us forex when we can generate our own," he added.
Furthermore, Bimha told the committee that if approved, the proposal would give Air Zimbabwe wings to survive "some of the challenges" the airline was facing. More than 70 percent of the airline's costs are in hard currency while only 10 percent of its revenue is in foreign currency.
However, Bimha said the proposal to charge airfares in hard currency would exclude vulnerable groups such as students or those going out of the country for medical attention.
Air Zimbabwe chief executive Peter Chikumba confirmed that the airline's management and board have had several meetings with RBZ governor Gideon Gono, adding that the airline had "support from that front".
Air Zimbabwe fares are the lowest in the region. It charges around $90 000 000 (£45) for a return ticket to Johannesburg. South African Airways charges R2 120 (£200) inclusive of airport taxes.
Analysts say Air Zimbabwe has lost its position as one of the best airlines in Africa to one of the worst, due to mismanagement and interference from the parent Ministry of Transport and Communications since the country’s economic crisis started in 2000.
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20 Oct One million Zimbabwe $ worth US$1
Zimbabwe's currency has fallen to record levels, with one million Zimbabwean dollars buying a single US dollar (48p) and inflation reaching 8,000 percent.
The bleak data was announced as people in the capital Harare struggled to cope without electricity for the third day. "We closed our business today,"
said a woman who helps to run a major petrol supplier. "We just can't operate like this."
The National Blood Transfusion Services said that it had been unable to test blood since Tuesday. "We are in serious trouble," said a doctor.
At independence in 1980, the Zimbabwean dollar held parity with the US dollar but the currency has suffered from the recent economic policies of
President Mugabe; at the beginning of this year it was $Z2,800 to one US dollar and ten days ago $Z500,000.
President Mugabe has struggled to keep inflation under control and in July ordered businesses to halve their prices to alleviate the country's woes.
The order resulted in the arrest of about 10,000 business people as thousands of police officers raided companies, shopping malls and markets to
take goods marked above price control levels. Now the supermarkets are bare and it is almost impossible to buy food.
Although the inflation rate slowed marginally in August it rose to 7,982 last month, according to official statistics, which are regarded as highly
conservative. "It shows the lunacy of their belief they can legislate against inflation and bring it down at the barrel of a gun," said Rob Davies, an economist.
Officials in Mugabe's ruling party reportedly expect him to sign a law that will force all foreign-owned companies, including local subsidiaries of
Barclays and Standard Chartered, to sell 51 per cent of their equity to black Zimbabweans.
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18 Oct UK pledges £100m to UN agency
The British government today pledged £100 million to the United Nations Population Fund (UNFPA) to help the agency reduce unwanted pregnancies and maternal deaths, especially in developing nations
UNFPA Executive Director Thoraya Ahmed Obaid said the monies will help achieve universal access for reproductive health. “The United Kingdom’s generous investment in women will enable UNFPA to provide urgent, coordinated and sustained action to save mother’s lives. There can be no safe future without safe motherhood -- no woman should die giving life,” Obaid said
The UK grant, to be spread over five years, was announced by Douglas Alexander, the UK’s Secretary of State for International Development on the opening day of Women Deliver, a three-day global conference in London aimed at reducing maternal mortality.
Urging leaders of the world’s poorest countries, especially in Africa, to make women’s health a priority, Alexander said: “The death of a mother deprives a child, a family, a community and ultimately a county of one of its most valuable sources of health, happiness and prosperity. Every minute a woman dies from complications during pregnancy or childbirth. More than 10 million women have died in the last 20 years. This is a tragedy but so is the fact these deaths could have been prevented.”
Earlier this month the UN General Assembly endorsed a new target to achieve universal access to reproductive health as part of the Millennium Development Goal 5, which calls for the reduction maternal mortality by three quarters by 2015.
Experts said although progress has been made in countries suc as Egypt, Honduras, Sri Lanka and Thailand, maternal deaths remain high, particularly in sub-Saharan Africa and South Asia. A woman in Africa faces a 1 in 26 lifetime risk of maternal death compared to 1 in 8,200 in the UK.
According to Alexander an estimated 720,000 unwanted pregnancies could be averted, 300,000 abortions could be prevented and the lives of 1,600 mothers and 22,000 infants could be saved for every £1 million invested in family planning.
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17 Oct Zimbabwe Foreign investment slumps
Foreign direct investment (FDI) inflows into Zimbabwe slumped by 61.1 percent in 2006 after peaking at US$103 million the previous year,
according to the latest World Investment Report released by the United Nations yesterday.
The report - titled ‘Transnational Corporations, Extractive Industries and Development’ and released by the United Nations Conference on Trade and Development (UNCTAD) - showed FDI inflows into Zimbabwe plunging to US$40m in 2006 from US$103 million in 2005.
The average FDI inflow into Zimbabwe between 1990 and 2000 was US$88 million.
The UNCTAD report attributed the slump in investment to Zimbabwe's economic climate, characterised by a government assault on property rights and the recent crackdown on money transfer agencies.
The Harare authorities have compulsorily acquired farmland from former white owners under a controversial and often violent land reform programme that resulted in an unprecedented flight of foreign investors since 2000.
"In some countries, however, governments adopted policies that were less favourable to foreign investment ... Swaziland closed its retail sector to
foreign investors and Zimbabwe prohibited money transfer operations by foreign or domestic agencies and main banking institutions," read part of
the UNCTAD report.
Zimbabwe's legislators recently railed through parliament a controversial Economic Empowerment and Indigenisation Bill that forces foreign investors
to cede 51 percent of their shareholding to blacks.
The government says the controversial legislation is meant to give control of the country's natural resources to the majority blacks.
But the legislation has drawn criticism from economic analysts and central bank governor Gideon Gono who fear it would scare away foreign investors at a time Harare desperately needs support from the international community.
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16 Oct HIV treatment ‘failing in Africa’
More than a third of patients on HIV medication in sub-Saharan Africa die or discontinue their treatment within two years of starting it, according to a new study.
The research, carried out by the Boston University School of Public Health, found that many were too late taking up anti-retroviral (ARV) drugs, while for some it was impractical to travel to distant clinics.
The study also found evidence that in cases where patients had to pay for ARVs, some stopped treatment. But it showed success rates vary depending on the programme and country.
The researchers looked at antiretroviral programmes for HIV patients in 13 sub-Saharan countries. They established that two years on from the commencement of treatment, only 61.6% of all patients were still receiving medication.
Many patients were too late in taking up ARVs in the first place and died within a few months of commencing treatment. Other patients dropped out because of problems with accessing the drugs - they may live some distance, for example, from the clinic which provided the medication.
There was also evidence, the researchers say, of patients discontinuing treatment because of the cost of the drugs in those cases where patients were charged for their ARVs.
Roland Gomol Lenya the director of the Association of People with Aids in Kenya, said a lack of education and an element of stigma are all part of the problem.
The study also shows that retention rates between individual ARV programmes vary widely across Africa. One programme in South Africa retained as many as 85% of their patients after two years while another in Uganda retained only 46% of patients after the same period of time.
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14 Oct Zimbabwe platinum mine to import power
Impala Platinum (Implats) says it has reached a tentative agreement with Mozambique to import power from Cahora Bassa to cushion its Zimbabwean operations against rolling blackouts.
An article in Zim Online says the South African-based mining giant - majority shareholders in Zimbabwe's largest platinum producer Zimplats Holdings - reported an agreement had been reached in principle with Mozambique to import power directly from Hidroelectrica de Cahora Bassa (HCB).
"Internal power sources (are) projected to be inadequate for Zimplats' expansion plans," Implats said in a presentation posted on its website.
The group, which runs platinum mining operations at Selous, Ngezi and Mimosa near Bulawayo, also announced plans to build a 330-kilovolt sub-station near Selous to power its operations. Mimosa is jointly owned by Implats and Aquarius.
Zimplats is currently being supplied power from a Zimbabwe Electricity Authority (ZESA) sub-station in Norton. Zimbabwean companies have been subjected to rolling blackouts blamed on an
eight-year economic crisis that has seen ZESA failing to keep pace with demand for electricity.
Large electricity consumers such as mining companies have in recent years been forced to pay for their power needs in foreign currency in a move meant to assist power utility raise hard cash for imports.
Zimbabwe imports more than 40 percent of her power from neighbouring countries. Implats also announced it had assisted ZESA with the purchase of two transformers for the Norton sub-station.
Besides the constant power cuts, Zimbabwe's mining sector has to come to grips with a proposed law that would see foreign players in the industry ceding 51 percent of their shareholding to indigenous blacks.
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12 Oct Kenya awards $82m contract to France
Kenya has awarded an $82m undersea internet cable project to the French company, Alcatel-Lucent. The fibre-optic cable will be the region's first submarine telecoms link to the rest of the world and should cut costs and provide high-speed access.
A Kenyan information ministry spokesman said the contract for The East African Marine Systems (Teams) will be signed by the end of the month. The cable will run from Mombasa port to Fujairah in the United Arab Emirates.
However, a spokesman for Alcatel-Lucent said the company was "not in a position to comment on the Kenyan announcement until the contract is signed".
But Kenya Information ministry spokesman Bitange Ndemo said Alcatel-Lucent had landed the contract after beating four competitors (Fujistu, NEC, Tyco Telecommunication and Huawei Technologies) on price and time-scale.
Ndemo told a news conference in Nairobi that Alcatel-Lucent had indicated it could "complete the construction of the undersea cable seven months ahead of others.”
Work on Teams is expected to start as soon as the deal is signed and the high-capacity fibre-optic cable should be in place within 16 months, before the end of the second quarter of 2009.
Earlier this year, Alcatel-Lucent won the contract to lay the long-delayed East African Submarine Cable System (Eassy), which is set to run from South Africa to Sudan. This scheme was originally expected to be operational at the beginning of 2008.
12 Oct Childbirth death rates ‘appaling’
Experts have condemned the "appalling" lack of progress made in reducing the number of women worldwide dying during pregnancy and childbirth. Analysis in The Lancet medical journal shows half a million women die every year - little change from 20 years ago. And 20 million unsafe abortions - a major factor in maternal deaths and illness - are done annually.
A key global target of a 75% reduction in maternal deaths by 2015 will not be met without urgent action, they warned. Half of maternal deaths occur in sub-Saharan Africa where there has been a particularly small drop over the past two decades.
Dr Richard Horton, editor of the Lancet, said women were too often seen as "containers" for babies and nothing more.
He said there should be no more excuses or delay in attempts to dramatically cut the number of deaths by three-quarters, as was set out in the Millennium Development Goals. To meet the Millennium Development Goal £3 billion ($6.1 billion) was needed by 2015, according to expert opinion.
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11 Oct Armed conflict cost Africa $300bn
Armed conflict in Africa has the cost to the continent nearly $300bn (£146bn) over a 15-year period and impeded development, according to research undertaken by a number of non-governmental organisations, including Oxfam.
The report, entitled: ‘Africa’s missing billions: International Arms flows and the cost of conflict,’ compares the economies of countries at war with those of countries experiencing peace. According to the report, an average "war, civil war, or insurgency shrinks an African economy by 15 percent," and the continent loses about 18 billion U.S. dollars a year to conflict.
The report says the cost of conflict was equal to the amount of money received by African countries in aid during the same period. This is the first time analysts have calculated the overall effects of armed violence on development.
Between 1990 and 2005, the report notes, 23 African nations were involved in conflict which cost an average of $18bn a year on African economies.
The report concludes that African governments have taken encouraging steps at a regional level to control arms transfers, but that what is needed is a global, legally-binding arms trade treaty.
Ellen Johnson-Sirleaf the president of Liberia, which is just starting to recover from a long civil war and also wrote the preface to the report emphasized the impact of conflict beyond combat:
She said: "In my own country, conflict has led to the squandering of rich mineral, agricultural, and human resources that should have benefited Liberia and its people. Although economic recovery has begun, it will take many years to recover from the destruction of infrastructure, the damage to businesses, and the loss of life and livelihood."
Joseph Dube, an Africa coordinator with IANSA, called the statement for all African governments and other weapons-producing governments to support a strong and effective Arms Trade Treaty (ATT).
"The government whose factory produces the rifle is as responsible as the government who permits its ships to transport them… Without… regulation, the cost and suffering borne by Africans will continue to be immense," he added.
The First Committee of the UN General Assembly is discussing the Arms Trade Treaty this week.
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09 Oct UK refreezes Nigerian man’s assets
The London High Court has ordered the refreezing of former Nigerian governor James Ibori's $35m (£17m) assets that police think are the proceeds of crime.
The assets, believed to include a Bombardier private jet, were the subject of a restraint order in August. It was lifted last week in the wake of a letter from Nigeria's attorney general saying Ibori had not been "charged, tried or convicted".
Sources said Ibori, one of several former Nigerian state governors who remain wanted for questioning in London on money-laundering charges, cannot use his assets while the police case is pending.
London's Metropolitan Police Service first obtained a freeze on Ibori’s worldwide assets under Britain's Proceeds of Crime Act, in August this year
The $35m is said to include a Bombardier private jet and property in London as well as money in bank accounts. The law permits police in Britain to apply for suspect monies to be frozen in the pre-trial stage of a criminal investigation.
Ibori's London-based lawyers, Speechly Bircham, obtained a letter from Nigerian Attorney General Michael Aondoakaa stating that Ibori had been investigated but not charged, tried or convicted in Nigeria "relating to money laundering or any other offences".
This persuaded the Judge at Southwark Crown Court that there was insufficient proof the assets were the proceeds of crime and he vacated the August order last week.
But the Met told the press that they have been granted leave to appeal against Judge Goymer's ruling. "Leave to appeal the discharge was granted at the High Court on Monday 8 October, and pending a full appeal by the Crown the Application of Restraint has been reinstated," a Met spokesman said.
No date has been set for that appeal hearing, so in effect there is no time limit imposed on the police who confirm that the investigation by their Police Proceeds of Corruption Unit into Ibori's affairs continues.
Another former Nigerian state governor wanted for questioning in London is Joshua Dariye of Plateau State. In May this year the Nigerian government obtained a judgement granting the country the $850,000 proceeds from the sale of a London property he owned, and in June they also obtained a judgement in their favour of the $5.7m (including accumulated interest) seized from Mr Dariye's UK bank accounts.
Observers say that Nigeria still has to overcome a culture in which political office is seen as bringing huge rewards and where political allegiances matter more than honour or honesty.
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08 Oct Uganda to produce HIV/Aids drugs
Uganda is opening a factory that will produce treatments for HIV/Aids the first of its kind in the country. It aims to reduce the cost of the vital medication by cutting import costs.
Stephen Malinga Uganda's health minister told the press that locally produced anti-retroviral HIV drugs and anti-malaria drugs should be available by January 2008.
President Yoweri Museveni, who has won praise for Uganda’s vigorous campaign against HIV/Aids, will open the plant in the capital, Kampala.
A factory in Kenya has been manufacturing exactly the same three-in-one pill for several years and is providing the tablets to the East African region. Malinga told the press the aim was to reduce Uganda's reliance on expensive imports of vital HIV/Aids and malaria treatments from foreign countries.
Sub-Saharan Africa has the world's highest rates of HIV/Aids and malaria. Ugandan drugs importer Quality Chemicals will produce the medicines locally with Indian pharmaceutical company Cipla, one of the world's largest producers of generic drugs. It hopes to sell them in Uganda and other African countries.
"[Ugandans] will have access to a regular supply of medication and also we hope it will be cheaper, because we will be eliminating the element of transportation and manufacture in foreign countries," Dr Malinga said.
Leonard Okello, from aid group ActionAid International, told the press that distributing the treatment was the biggest hurdle to overcome.
"The important thing is for the tablet to get on to the table..." Okello said. "The challenge is to make sure that the production is followed by a good distribution system that makes sure that the drug can reach all corners of the country."
Finding affordable and effective medicines, which is already a huge challenge, is increasingly unreliable in Africa. Many countries turned to Indian pharmaceutical companies that produce generic copies of drugs designed in the West at much lower prices.
But India tightened its patent laws in 2005, restricting its companies' ability to copy newer foreign drugs. In South Africa, some companies are already producing the treatments locally. Other sub-Saharan African countries including Ghana, Tanzania, the Democratic Republic of Congo and Ethiopia are working to start local production of the drugs.
According to World Health Organization figures, only 41% of Ugandans who need anti-retroviral therapy receive the treatment. After reaching a peak of 30% in the 1990s, Uganda has cut its HIV/Aids figures to single digits.
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04 Oct Rescue for trapped SA miners underway
Rescuers are slowly bringing to the surface thousands of workers trapped for hours in a South African gold mine, according to various media reports.
Officials at the Elandsrand mine, 80km (50 miles) west of Johannesburg, said more than 3,000 men became trapped 2.2km (1.4 miles) underground when a broken pipe severed power cables to a lift early on Wednesday.
By midday (1000GMT) some 2,000 had been freed from the Elandsrand mine, 80km (50 miles) west of Johannesburg. Some workers have been underground for 36 hours, since starting night shifts on Tuesday evening.
The miners are being brought out through a small shaft normally used for mining equipment, and only 75 can be hauled clear at a time: no more than 300 in an hour.
Minerals and Energy Minister Buyelwa Sonjica who visited the mine, as the miners emerged said the government wanted to "tighten up" mine safety laws.
"I wouldn't call it a crisis given that mining is risky in its nature, so incidents of this kind will occur, but I still think there is room for improvement and to reduce accidents in the mines," Ms Sonjica said. No serious injuries have been reported.
The Elandsrand mine is in the Witwatersrand Basin, which holds the world's largest gold deposit. Gold is important to South Africa's economy, says the BBC's Peter Biles in Johannesburg, although the industry has been in decline in recent years.
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02 Oct Zimbabwe Bank promises full shelves
Zimbabwe’s Central Bank Governor, Gideon Gono, has announced measures which he said would help to restock empty store shelves by the end of the month.
Among Gono’s planned programs were cheap loans to manufacturers to restore productivity, and hard currency payments to farmers to keep them in business.
"I leave you with a promise most basic goods should and will return to the shelves in the next three weeks," Reserve Bank Governor Gideon Gono said on state television on Monday. Gono said the bank also planned to change the nation's currency, striking more zeros off bank notes for the second time since August of last year.
In June, the government issued an edict to slash prices on all goods and services by about half. This included a crackdown on overcharging in which more than 7,000 corporate executives, business managers, traders and bus drivers were arrested, jailed and fined for price violations.
The price cuts were meant to tame the world's highest official inflation of nearly 7,000 percent. Instead, the effect was to worsen already acute shortages of food and basic goods in the crumbling economy.
Under a new central bank loan program, producers and rural stores hard hit by supply shortages would be able to borrow funds to restore their businesses at the country's lowest interest rate of 25 percent over nine months.
To boost production of staple foods, the bank would help the government pay the world parity price of around US$200 a ton for corn and wheat, half in local currency and half in hard currency that could be used by farmers to buy their own gasoline, fertilizer and imported materials, Gono said.
He said the price crackdown had caused fear and mistrust between the government and businesses and called for what he called for "a spirit of reconciliation and healing" in the economy. Gono acknowledged that many of Zimbabwe’s economic difficulties were self-inflicted, including the price cuts and a program to seize control of white and foreign-owned businesses.
In August last year, the central bank slashed three zeros from the currency and issued new denominations of notes after basic transactions became unmanageable and calculators and accounting systems could no longer cope with amounts traded.
Independent estimates put real inflation closer to 25,000 percent and the International Monetary Fund has forecast it reaching 100,000 percent by the end of the year. Bundles of bank notes are again common in basic purchases. Gono said the zeros had now returned, again making transactions unwieldy. He said a new currency would be issued possibly in the next two weeks but gave no further details.
"It's a process that could turn into a hurricane for those who keep cash outside the banking system," Gono said. In the rampant black market, "cash barons and dealers are in the habit of creating mini central banks in their homes."
Gono said the printing of extra money, now a routine practice, contributed to inflation and was against "basic textbook economics."
"We are living in extraordinary times and extraordinary measures are needed. Once we are out of the corner, we will have no problem formulating policy playing by the book. But for now, the game is one of survival," he said.
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27 Sept UK returns graft monies to Nigeria
The UK has returned to Nigeria some of the money seized by London police from the former governor of Plateau State, Joshua Dariye who was arrested in London in September 2004 but later skipped bail and fled back to Nigeria.
The Acting British High Commissioner to Nigeria, James Tansley, handed a cheque for 29.3 million Naira ($235,000) to the Nigerian Solicitor General. Dariye faces charges of stealing some $128 million (N36 billion) from Plateau State.
Analysts said Dariye’s persecution illustrates Nigeria’s determination to clamp down on corrupt practices by politicians and those in positions of power.
Under Umaru Yar'Adua presidency tackling corruption has become an obsession and Nigeria has seen some recent success in trying to minimise corruption.
The country is now 18 places above Haiti on Transparency International's global corruption index after occupying last place for years.
Many analysts are still sceptical whether President Yar'Adua, a reclusive and mild-mannered Muslim from the conservative north-western Katsina State will have the political will to take on Nigeria's corrupt but very powerful political class.
Yar'Adua has however promised that there will be no sacred cows in his administration's anti-corruption fight. "If my son or my father is found to be corrupt, they will not be spared," Yar'Adua, a former Chemistry teacher, told the press recently. "We are determined to intensify the war against corruption, more so because corruption is itself central to the spread of poverty."
However, there are allegations that as governor of Katsina, Yar'Adua awarded fat contracts to a company working as a front for his family. Yar'Adua denies the allegations.
Others who claim to know Yar'Adua well say he will surprise Nigerians with his astuteness. "He is going to be his own man and take even harder decisions than Obasanjo took," Mohammed Haruna, a public affairs analyst and Yar'Adua's former classmate told the BBC News website.
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25 Sept Rwanda ‘most improved African nation’
Rwanda is the most improved sub-Saharan nation according to a survey looking at performances over the past five years. The Ibrahim Index, financed by Sudanese mobile phone magnate Mo Ibrahim, names Mauritius as the best-governed and Somalia as the worst-governed state.
Harvard University academics analysed the criteria used to rank countries. The Mo Ibrahim Foundation is next month due to award over $5m - to the former African head of state who is judged to have demonstrated exemplary leadership.
The presidential prize is also aimed at encouraging best practice. They assembled data from various sources including the United Nations, the anti-corruption watchdog Transparency International, and thinktanks such as Freedom House.
Countries are measured under categories like "Safety and Security" and "Human Development". When these categories are put together an overall ranking is reached.
Two island nations top the list of the best governed, Mauritius (Number 1) and Seychelles (2). Both are stable, relatively wealthy states which have little in common with mainland Africa except for the fact that they are members of the African Union.
Mauritius is a sugar-exporting tourist destination which has also developed a clothing industry. It has a prominent Hindu community which looks to India as much as it does to Africa for trade and cultural ties.
Seychelles is a luxury tourist destination. The next batch of countries on the best-governed list are more typical of the bulk of African states. Botswana, at Number 3, is a stable democracy that earns its money from diamonds and agriculture.
Cape Verde (4) is a former Portuguese colony which survives economically from remittances by expatriate Cape Verdeans - there are said to be more Cape Verdeans in Boston, Massachusetts, than there are on the islands themselves!
South Africa (5), Ghana (8) and Senegal (9) are all vibrant democracies that are proud to have politically well-informed populations. Worst-governed, according to the list - at Number 48 out of 48 - is Somalia, a country which has not had a functioning government since the overthrow of the dictator Siad Barre in 1991.
Other countries scoring badly include Zimbabwe (31) Democratic Republic of Congo (47), Chad (46) and Mo Ibrahim's home state of Sudan (45). A spokesman for the Mo Ibrahim foundation said there was no automatic link between the "best governed country" index and the "best former president".
Sources said it appears that the $5m prize which will be awarded on 22 October, will be given to an ex-president as a personal retirement gift to be paid in annual tranches, because the Mo Ibrahim foundation also states that a further sum of $200,000 per annum "may be granted" by the Foundation for "good causes espoused by the winner".
Critics say granting such a large sum of money to an individual was "scandalous" and that all of it should go to causes such as ending poverty on the continent. Others said the prize had to be substantial to have any realistic prospect of actually encouraging good governance while in office - and that the $5m would spark a valuable debate in civil society about what it means to run a country well.
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20 Sept Kenya deficit eased by tourist revenue
Kenya's current account deficit is set to ease on the back of a faster than expected rise in tourism earnings and remittances, according to a Country Report for August 2007 by the Economic Intelligence Unit.
EIU analysts lowered their current-account deficit projections for Kenya down to 4.2 per cent of Gross Domestic Product (from 4.7 per cent of GDP), and in 2008 to 3.4per cent of GDP (from 4.1 per cent of GDP).
A current account deficit occurs when a country's total imports of goods, services and transfers are greater than the country's total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world.
But while the projections by the EIU may imply that Kenya is importing less and exporting more, available data suggests otherwise, pointing to other factors that have led to a projection of a lower current account deficit.
Kenya's current-account deficit increased to $398 million in the year to May 2006 to $650 million in the year to May 2007 following $1,075 million widening in the trade deficit.
Reflecting increased imports of machinery and transport equipment, Kenya's trade deficit therefore widened from $3.billion in the year to May 2006 to $4.1billion in the year to May 2007.
But the shortfall was much lower than had been provisionally anticipated by the authorities, owing mainly to better than expected invisible earnings from tourism and private remittances.
Data from the Central Bank of Kenya indicates that remittances through formal channels hit $53million in July this year compared to $41million registered in the same period in 2006.
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18 Sept China pledges $5bn loan to DRC
China has pledged a US$5bn loan to the Democratic Republic of Congo in a deal which will grant the Chinese rights to extensive natural resources, including timber, cobalt and copper.
DRC Infrastructure Minister Pierre Lumbi said the money will be spent on building roads, hospitals, health centres, housing and universities. This is the largest single loan to any African country of the $20bn that China has pledged to finance trade and investment in the continent over the next few years.
A first phase of $3bn will finance big transport infrastructure projects in the DRC, including a 3,400km (2,125 mile) highway between the northeast city of Kisangani and Kasumbalesa on the border with Zambia.
There will also be a 3,200 km (2,000 mile) railway to link the country's southern mining heartland to the main Atlantic port of Matadi in the west. Additional plans provide for the construction of some 30 hospitals, more than 100 health centres and two universities. A further $2bn is earmarked for rehabilitating the crumbling mining infrastructure and setting up joint ventures in the mines sector.
The official Xinhua press agency recently estimated there are at least 750,000 Chinese working or living for extended periods on the continent, a reflection of burgeoning economic ties that reached $55bn in trade in 2006.
Chinese trade and investment has galvanised mineral production from South Africa (manganese) to Niger (uranium), and from Sudan to Angola (oil). Much of that activity reflects an intense appetite for the African resources needed to fuel China's manufacturing sector, but big Chinese companies have quickly become formidable competitors in other sectors as well, particularly for big-ticket public works contracts, like the ones now proposed for DR Congo. China is building major new railroad lines in Nigeria and Angola, large dams in Sudan, airports in several countries, and new roads almost everywhere.
One of the largest road builders, China Road and Bridge Construction, owned by the Chinese government, has 29 projects in Africa (many financed by the World Bank or other lenders) and offices in 22 African countries.
18 Sept US moves in Gulf of Guinea nags Nigeria
Plans by the Federal Government of Nigeria to frustrate moves by the United States to establish a military base in the Gulf of Guinea, estimated to contain oil and gas deposits of around 10 billion barrels are now in jeopardy, according to a report in one of the country’s publications, THISDAY.
The report says the US has completed all the ground work and has moved into the offshore of Sao Tome and Principe, Angola and Guinea to secure position for their submarines and other security facilities.
“Nigeria is the only country that has the minimum requirement and the financial capacity to provide those facilities (vessels for the Navy and satellite communication facilities amongst others for the Air Force) because these other African countries cannot afford to put down even one per cent of what is required, “the report says.
THISDAY had reported last week about moves by the Nigerian government to checkmate the military adventure of the United States in the oil-rich region.
But in a subsequent report, the newspaper said Nigeria cannot ward off the US because the country "has not shown enough commitment in securing the region".
Furthermore, the report says Nigeria was expected to have invested $1 billion from excess crude account into the coastal security and safety arrangement in the last two years but had failed.
"The former President, Chief Olusegun Obasanjo, had seen the wisdom as a former military head of state to secure the area and immediately ordered strategic surveillance of the costal zone and the Niger Delta,” the report says.
Defence sources said the Federal Government was already discussing with heads of government of the African Union and leaders of the sub-regional body, the Economic Community of West African State, on how to block any move by US to establish a base in the gulf.
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14 Sept UN calls emergence talks on Africa
UN chief Ban Ki-moon has called an emergency meeting to try to address Africa's failure to make progress on the Millennium Development Goals.
The eight internationally-declared goals, on reducing poverty and improving life chances, were set in 2000 for achievement by 2015. But the UN says that halfway to the deadline, sub-Saharan Africa is unlikely to meet a single goal.
UN officials say this meeting on a single focused topic is unprecedented. Ban has invited the heads of some of the world's top development finance agencies.
The president of the World Bank, leaders from the IMF, the European Union and the African Union are being invited, as well as the heads of the African and Islamic Development Banks.
On current form, the UN says, sub-Saharan Africa as a region will not meet any of the poverty-busting goals set to be achieved by the year 2015 - nor the benchmarks on education, health, and women's empowerment. According to the UN, development assistance to Africa from rich countries actually fell between 2005 and 2006.
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13 Sept Zimbabwe revenue workers go on strike
Zimbabwe Revenue Authority (ZIMRA) workers went on strike on Wednesday to press for a 5
700 percent salary increase, a move which analyst say will plunge the country into a deeper financial crisis.
Work stoppage by ZIMRA workers, some of whom collect revenue at the country’s points of entry, could have cost at least $1 trillion in revenue alone on the first day of the strike, according to some estimates. Furthermore, their downing of tools has affected thousands of cross-border travellers who need to clear imports into the country.
Sources said all non-managerial employees at ZIMRA, estimated at over 2 000, had joined the work stoppage, which comes at a time when government has imposed a blanket freeze on salary adjustments to rein in rampant inflation, currently topping 7 600 percent.
Negotiations between workers and management are believed to have collapsed on Tuesday after the authority refused to grant the 5 700 percent salary increase, arguing this was beyond the revenue authority's budget.
A 5 700 percent pay rise would have lifted the ZIMRA salaries to around $87 million per month, from $1.5 million per month they currently earn. ZIMRA management had offered the workers a 400 percent increment to be implemented this month. This would have taken the salary of a revenue officer to $10 million $5m short of the poverty datum line estimate of around $15 million for Zimbabwean families.
Sources said industrial action had started at the Beitbridge border post, one of Africa's busiest ports, at midnight Tuesday, before spreading to Chirundu, Nyamapanda and other border posts causing serious confusion among travellers and investors seeking to clear their goods. The Beitbridge border post clears a number of vehicles daily, some of which are in transit to Zambia, Tanzania, Malawi and the Democratic Republic of the Congo.
Analysts said the disruption in Harare will be a big blow to revenue collection because at this time of the month, about 85 percent of ZIMRA's revenue collections comes from the capital through
corporate tax payments as well as Value Added Tax.
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09 Sept Virgin boss hit by SA land claim
A community in South Africa is making a land restitution claim involving a luxury game lodge owned by British tycoon Sir Richard Branson. The claim invokes laws designed to compensate black South Africans who lost land under apartheid.
The Ulusaba reserve, bordering the Kruger National Park, is in one of the country's top game viewing regions. The Nxumalo community's lawyer said he expects to reach a negotiated deal with the company Virgin Limited Edition.
The Ulusaba site, owned by Sir Richard's company, is part of the larger Sabie Sands reserve, all of which is being claimed by the Nxumalo community.
Lawyer Jurgens Bekker told the press that the claim involved 70,000 hectares of "prime nature reserve" land. Bekker said a joint venture between the claimants and the current owners was possible.
"I have no contact with Richard Branson or his representatives, but I have heard through the grapevine they are amenable to talk, which I think is the right approach," Bekker said.
Virgin Limited Edition's managing director Jon Brown was quoted in the Independent newspaper as saying: "Sir Richard is aware of the claim and fully supports a co-operative approach".
South African land restitution laws allow for various kinds of settlement to be made, including compensation with cash or alternative land, or joint business ventures with existing owners.
After the end of apartheid in 1994, South Africa introduced laws designed to compensate black communities who had lost land under racially discriminatory legislation since 1913.
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04 Sep Zimbabwe takes control of Heinz
The Zimbabwean government has taken control of one of the country's leading food processors by buying out US firm HJ Heinz. The state will buy Heinz's 49% stake in Olivine Industries, which makes cooking oils, fats and soaps, for $6.8m.
Rampant annual inflation of more than 7,600% has crippled the Zimbabwean economy and firms failing to reduce prices face the threat of possible nationalization. Heinz has been operating in Zimbabwe for more than 25 years.
The firm, best known for its baked beans and tomato ketchup, was one of the first foreign businesses to invest in the country after its independence in 1980.
Zimbabwe's ever-spiralling inflation, the highest in the world, has put basic goods beyond the reach of much of the population and made life perilous for foreign investors.
In an effort to try and get to grips with the economic crisis, the government intervened last month to prohibit any future price rises and freeze public sector pay.
The change in Olivine's ownership will see Cottco, the state-controlled cotton buying and processing enterprise, take control of the business. "This acquisition will add critical mass to the company while allowing the company to diversify from its traditional revenue streams and operating risks," said Pius Manamike, Cottco's company secretary.
A report in the government-controlled Herald newspaper said Heinz had been scaling back production over the past year to comply with US economic sanctions against Zimbabwe. However, company executives said it had been forced to reduce its output and focus on exports because of Zimbabwe's worsening domestic situation.
New laws which would force foreign-owned businesses to sell a majority stake in their operations to black-owned Zimbabwean firms are set to come into force within months.
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31 Aug Mugabe bans pay and price increases
Zimbabwean President Robert Mugabe has banned all pay rises and price increases with immediate effect in a desperate move to curb the country's runaway inflation.
A report in the state-controlled Herald newspaper said anyone who breaks the freeze, which applies for six months, will get a jail sentence of up to the same length.
"No one in private or public sectors can now raise salaries, wages, rents, service charges, prices and school fees..." said the Herald.
Analysts said, with Zimbabwe's annual inflation now at more than 7,600% - the move was not unexpected. Nevertheless, they see little prospect of the freeze alleviating the sinking economy.The changes have been made by Mugabe without recourse to the Zimbabwean parliament.
Independent Harare-based economist John Robertson said the latest move was a result of plummeting government revenues. "I just wonder when they will try and reverse the laws of gravity, because this does not work," he said. Robertson also questioned whether the country's armed forces - which have so far been loyal to Mugabe - would accept the pay freeze.
Meanwhile, a report in the Zimbabwe Independent newspaper says over 3 000 orphans, other vulnerable children and elderly people in Harare who were benefiting from a food voucher scheme run by a non-governmental organisation Action Aid, face starvation after the supermarket that supplied the food is unable to do so anymore.
Sources said the supermarket was emptied of basic commodities following a government blitz on businesses for overcharging last month. Action Aid has since 2004 been providing food to over 3 000 vulnerable persons in Harare through a food voucher scheme. The UN World Food Programme says around 2.1 million Zimbabweans will face serious food shortages by the third quarter of this year.
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29 Aug Chinese goods ‘destroy Zimbabwe firms’
Professor John Makumbe from the University of Zimbabwe has said the entry of cheap and low-quality Chinese goods into the Zimbabwe market "devastated the Zimbabwean economy." .
Speaking at a conference in Namibia under the theme: 'G 8 Countries and Africa - Partnership and mutual Responsibility', organised by the Konrad Adenauer Foundation, Makumbe noted that while China was exporting quality goods to the European Union, it dumped its "cheapest and lowest quality"
products in Africa, including Zimbabwe.
"The flood of Chinese goods destroyed the textile industry in Zimbabwe, which contributed to unemployment and poverty," Makumbe said. "Zimbabwe used to have its own factories to manufacture clothes, shoes and electrical appliances, but these industries collapsed totally since the arrival of these Chinese products."
Makumbe cited the decline of textile factories that used to produce school uniforms for millions of schoolchildren in the country and also manufactured blankets as evidence of the negativity of Chinese imports into the country. He said those factories are now standing idle.. "The Chinese impact on Zimbabwe escalated unemployment," Makumbe added..
Makumbe was scheduled to give a lecture at the University of Namibia on Wednesday night, but authorities cancelled it a few hours before it was supposed to start.
Makumbe also talked about poverty engulfing Zimbabwe and the daily trudge of life in the country amid the social crisis unfolding there. Zimbabwe now has an annual inflation rate of 7 634,8 per cent, the highest in the world, and is plagued by food and fuel shortages.
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28 Aug ‘Mother’ of all diamonds found in SA
A small South African mining company claims to have discovered the world's biggest-ever diamond. A shareholder in the unnamed mine told the press that the stone had been unearthed at their operation in the north-west province on Monday afternoon.
He said the giant gem was about 7,000 carats - which would be twice the size of the Cullinan Diamond, centre-piece of the British crown jewels. But industry experts are sceptical about the unconfirmed claim.
Brett Jolly, a shareholder at the mine, said the stone had been taken to a bank vault in Johannesburg. Jolly said he hoped tests on Tuesday would prove its worth. In a photograph emailed to press offices, the 'stone' appears to be about the size of a coconut, and has a greenish tinge.
But a spokesman for De Beers, the world's biggest diamond mining company, said the north-west province was not known for producing gems and greenish stones were even rarer. The firm also said that if the find were genuine it would be the stone of the century.
28 Aug Uganda floriculture business growth
Uganda has emerged as a global power in the floricultural world and is now Africa's fifth largest exporter of cut flowers. With an investment of US$60m and a growth rate of 14 percent, Uganda's cut flower industry now boasts 20 commercial flower farms producing 35 varieties exported mainly to Europe.
While Kenya, Zimbabwe, Tanzania and Ethiopia dominate Africa's cut flower export market, the Ugandan floriculture sector is close behind. It seeks to double production area by 2010 and boost profits from $30m in 2006 to $80m annually.
According to the United Nations' International Labour Organisation (ILO) the growth has raised rural incomes through job creation, widened the tax base and contributed to rural stability.
"The floricultural industry has played a major role in poverty eradication and bringing in much needed foreign exchange revenue," Uganda Investment Authority (UIA) executive director Maggie Kigozi told the press. "Investments in these opportunities will also bring into the country more revenue to develop the sector and other areas of the economy."
The industry currently employs about 6,000 Ugandans, with each person's income supporting up to six dependants.
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22 Aug Zimbabwe July inflation hits 7,638%
Zimbabwe's annual rate of inflation jumped to 7,638% in July according to the first official figures to be published for three months. It is the first time that the Central Statistical Office (CSO) has released official inflation rate figures since May, when it stood at 3,714%.
The Zimbabwean government has called inflation its number one enemy. Last week, the International Monetary Fund warned annual inflation could reach 100,000% by the end of the year. The Consumer Council of Zimbabwe has said the real year-on-year inflation is far higher than the official rate - 13,000% in June.
Meanwhile, the Zimbabwe's government has tabled a proposal in parliament to give majority control of foreign-owned firms to locals.
If passed, the bill could tighten Mugabe's grip on power as frustrations grow over an economic crisis and Western powers increase pressure on the 83-year-old to enact political reforms.
Mugabe's ruling party has a technical two-thirds majority in parliament, which gives it room to pass bills without support from the main opposition Movement for Democratic Change (MDC).
Around 35 foreign-owned companies, including Barclays Plc {BARC.L} and Anglo American {AAL.L}, still operate in Zimbabwe. Company officials have said many firms present in the country have written off their Zimbabwe assets because they need to balance the risk of losing further income against future business prospects if a new government came to power.
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17 Aug China recalls malaria drug from Kenya
A Chinese pharmaceutical company Holley-Cotec Pharmaceuticals plans to recall thousands of anti-malarial drugs supplied to Kenya after discovering a counterfeit syndicate.
The vice-president of Holley-Cotec said 20,000 doses of Duo-cotecxin will be removed from sale. He told the press that an analysis of the counterfeit product showed it had very low active ingredients and patients taking it would not be cured.
An estimated 35,000 people die of malaria in Kenya each year. Duo-cotecxin is one of the artemisinin-based combination therapy drugs highly recommended by World Health Organization to treat malaria and is widely supplied in government and private hospitals in Kenya.
The Ministry of Health has been spearheading a campaign to crack down on counterfeit drugs that are readily available in the Kenyan market. Dr Willy Akwale, who heads the government anti-malaria control unit, said this is the first case of a counterfeit supply of artemisinin combination therapy drugs.
"There have been many counterfeits on the sulphur-based anti-malaria drugs before, forcing us to have difficulties in countering the disease," Dr Akwale told the press.
Sophisticated trans-national gangs are thought to be behind the counterfeit drugs, a fast-growing multibillion dollar business. Meanwhile, the Kenyan government has revealed that there has been a dramatic rise in the number of children sleeping under insecticide treated mosquito nets. It said that a two-year campaign to provide nets at subsidised prices has resulted in more than two-thirds of under five-year-olds sleeping under them.
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16 Aug Uganda, DRC to survey disputed site
Uganda and the Democratic Republic of Congo (DRC) have agreed to re-survey their common border through Lake Albert. Chrispus Kiyonga the Ugandan Defence Minister told the press that a joint commission will begin surveying within the next four weeks.
The exact position of the border has been under increased dispute, with both countries laying claim to an island in the lake called Rukwanzi. It is a strategic site for oil and exploration is currently under way.
Kiyonga said Uganda continued to consider Rukwanzi Island to be within it’s territory. The border dispute was put under the spotlight earlier this month after two people were killed during a clash between men in Congolese army uniforms and security guards working on an oil exploration barge.
The Congolese said the barge was in their waters; the Canadian oil company Heritage said it was anchored in Ugandan waters. In a separate incident this month, four Ugandan army soldiers were taken into custody for allegedly trespassing on Congolese territory. They were later released.
Uganda's Foreign Minister Sam Kutesa flew to DR Congo's capital, Kinshasa, this week to discuss the issue and diffuse the tension.
Oil companies have been working in the region for many years, and in 2006 Heritage and Australia's Hardman Resources announced that they had found substantial deposits in western Uganda. They believe that more oil may lie beneath the waters of Lake Albert.
Uganda invaded eastern DRC during its neighbour's civil war in 1998, claiming it was pursuing Ugandan rebels. Some of its soldiers were accused of human rights abuses and of plundering Congolese gold and diamonds.
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14 Aug Mugabe price crackdown futile - UN
The United States-based Famine Early Warning System (FEWSNET) says the Zimbabwe government crackdown on prices that began last June has worsened the food security situation in Zimbabwe.
In its latest assessment report, FEWSNET said the Zimbabwean government's controversial price controls was further worsening household food security in a country where the majority of the people can barely make ends meet.
FEWSNET noted that the poor have been left more vulnerable to food insecurity following the disappearance of basic commodities from Zimbabwean shop shelves after President Robert Mugabe ordered a freeze on prices of goods and services in June.
Mugabe, who has aroused international condemnation because of his shoddy economic policies which have destroyed a formerly diversified and buoyant economy, pegged all prices at mid-June levels and arrested more than 7 000 businesspersons who defied the order.
The effect of the price freeze was to drive most producers underground where they now supply their goods on a thriving black market.
"The run on commodities is having the biggest impact on the poor, who are forced to make frequent purchases in smaller amounts and are not able to buy in bulk when commodities become available," FewsNet noted in its report.
The plight of Zimbabwe's poor has been underlined by tightening economic conditions, marked by runaway inflation estimated at more than 4 500 percent in May. The cost of a household's monthly basket of goods monitored by the state-controlled Consumer Council of Zimbabwe was pegged at $12.6 million for June before price controls lowered the cost to $8.3 million.
FewsNet said besides the impact of price controls, Zimbabwe's overall food security situation this year was poor compared to previous years, largely due to the protracted economic decline and the poor 2006/07 harvest.
The United Nations' Food and Agriculture Organisation and World Food Programme estimates have estimated that Zimbabwe's cereal production for this year will meet only 55 percent of the country's requirements.
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13 Aug Childbirth deaths summit set for October
A landmark global conference in London this October aims to halt the needless deaths of 10 million women and girls who die in each generation during pregnancy and childbirth, and four million newborn babies who die every year.
Thoraya Ahmed Obaid Executive Director of UNFPA the United Nations Population Fund and a speaker at Women Deliver, scheduled for 18-20 October said the conference “will call attention to a tragedy that is not often registered, and will push all concerned to take unified action.”
Analysts said these tragic deaths are a major contributor to poverty around the world, and can be easily prevented with effective, low-cost investments.
More than 2,000 participants will look at new and proven ways to save these lives. In addition to looking at strategies to change the ways how health information and services are provided and funded, the conference will tackle other key issues, including poverty reduction, women’s human rights, and economic development.
A press statement from the UN said delegates from more than 75 countries will include cabinet ministers, heads of United Nations and other multilateral agencies, senior government officials, health professionals, researchers, economists, and reproductive health advocates.
“Every minute of every day a woman dies needlessly during pregnancy and childbirth,” said conference Honorary Chair Mary Robinson President of Realizing Rights and former President of Ireland. “That’s ten million women in every generation. Most of these deaths are in the developing world, and most are preventable.”
Huge disparities exist between rich and poor countries and between the rich and poor in all countries. One in six women in their reproductive age die from pregnancy-related causes in Afghanistan, one in 2,500 in the United States and one in 29,800 in Sweden, according to UN statistics from 2000. An updated country scorecard will be released just before the opening of the Women Deliver conference in October.
Deliberations at Women Deliver will outline new ways that investing in women will make pregnancy safer and enable women to reach their fullest potential.
Serious investment in women’s health and rights enables women to deliver – not just the next generation, but also everything development communities work to achieve: economic progress, rising rates of literacy and productivity, better health, and well-being for families, communities and nations.
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07 Aug Yar’Adua suspends $145m contract
Nigerian President Umaru Yar'Adua has ordered the suspension of a multi-million dollar contract awarded by his predecessor Olusegun Obasanjo.
Sources in Nigeria said the 18bn naira ($145m) contract to build health clinics across the country was awarded to a company believed to be owned by a former aide to Obasanjo.
Last month, Yar'Adua reversed the controversial sale of two refineries to a business group linked to Obasanjo. Analysts say both moves underline Yar'Adua’s intention to improve Nigeria’s image as one of the world's most corrupt countries.
The contract, awarded last year, was to build a primary healthcare centre in each of Nigeria's 774 local council areas. It was funded by compulsory deductions from each of the local councils' share of monthly oil revenue.
Explaining to the press why President Yar'Adua had suspended the contract, his spokesman Olusegun Adeniyi said: "There's no law backing it. It was being funded with illegal local government funds."
This is the second time in less than three weeks that President Yar'Adua would be reversing a major decision taken by his predecessor and political benefactor.
However, Adeniyi denied that President Yar'Adua was trying to prove his independence from his predecessor, who had been instrumental in his landslide win in last April's presidential polls. "For President Yar'Adua, everything is about the rule of law and this contract was found to be illegal." Adeniyi said.
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06 Aug Mozambique bans counterfeit toothpaste
Mozambique authorities have seized thousands of boxes of counterfeit toothpaste, which they fear may contain a potentially deadly chemical. The seizures follow a ban on all sales of Colgate Maximum Cavity Protection toothpaste issued last week.
Colgate has denied any link with the products found in the capital, Maputo and around the country. The boxes are labelled "Made in South Africa" but industry sources say the true origin of the counterfeit products is not clear.
In June, some Chinese-made toothpaste, which also contained dangerous levels of diethylene glycol (DEG), normally used in anti-freeze and solvents was found in Canada and the US. The chemical can cause abdominal pains, nausea, vomiting, damage to kidneys and liver and, if ingested in large amounts can be fatal.
Radio Mozambique reported that the highest number of seizures occurred in the southern province of Gaza, where more than 13,000 boxes were removed from the shops. Some tubes apparently have expiry dates given as the 34th or 32nd day of the month.
Like many developing countries, Mozambique lacks the sophisticated consumer protection mechanisms of Western countries to ensure trading standards. Many people buy toothpaste and other goods from informal traders who sell their wares in markets or on the streets.
06 Aug Burundi Bank governor on graft charge
Police in Burundi have arrested central bank governor Isaac Bizimana for allegedly embezzling state funds. Prosecutors said he had authorised a payment of $21m (£10.3m) to Interpetrol, an oil importing firm. The monies were several times what was due to the company.
The payment was to reimburse Interpetrol, for losses it incurred prior to 2002 when Burundi was under blockade because of a military coup. Bizimana's lawyer could not immediately be reached to comment on his arrest. A former finance minister, Denise Sinankwa, is also under investigation. She has denied any wrongdoing.
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03 Aug Uganda nets $5m GTV football deal
The Federation of Uganda Football Associations (Fufa) has announced a US$5m five-year sponsorship deal with Africa's new pay television, Gateway TV (GTV).
The deal is the biggest in Ugandan football, being higher than the US$500,000 paid by mobile phone company MTN in June to sponsor the national team over three years.
The deal is a major boost for the country's league which has been hampered by the failure to secure a sponsor for the past two years. The sponsorship includes an annual cash contribution as well as ownership of the media and commercial rights to the Uganda Super League, Uganda Kakangulu Cup and country's national teams.
Fufa will set up a development fund from the deal to support five regional teams and they will also work together to improve playing conditions, including in the country's stadia.
Fufa president Lawrence Mulindwa said: "Fufa believes that the same growth in live football that pay TV has driven elsewhere on the world is also possible in Uganda."
Uganda matches never before seen on television will now be accessible to football fans not just in Uganda but elsewhere. The British firm secured 80 per cent of the television rights to the English Premiership for sub-Saharan Africa for the next three seasons, edging out South Africa's Multichoice, who took 20 per cent.
"When we started, we knew football was crucial. We asked football fans what they wanted - first they asked for the English Premiership and we gave it to them," Julian McIntyre, founder and managing director of GTV said. "Next, they asked us to support football at home. We are pleased to say we are partnering with national associations and local clubs to do just that. "
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02 Aug UN seeks $118m to feed Zimbabweans
The United Nations World Food Programme (WFP) is asking donor countries to fund an expanded aid operation in Zimbabwe. The WFP says a poor harvest and the country's worsening economic situation means hundreds of thousands of Zimbabweans are running out of food.
The WFP says it will have to provide assistance to more than three million people over the coming months. Without additional funds, UN food stocks will be completely exhausted by the end of 2007, the agency says. Furthermore, the WFP has estimated that 3.3 million people will need assistance during the peak hunger period between November and March.
The WFP is appealing for $118 million dollars (£58 million) in aid from international donors. "WFP plans to feed more than 10 times the current number of beneficiaries over the next eight months to avert the threat of widespread hunger, but to do this we need more donations and we need them immediately," the agency's regional director, Amir Abdulla, said.
Some of the communities worst-affected are in Zimbabwe's drought-hit southern provinces. But the UN says the situation has been made worse by soaring poverty, hyper-inflation and the impact of HIV/Aids.
Analysts said the economic crisis in Zimbabwe is causing increasing hardship, and government price controls have led to panic buying and severe shortages of many basic food items in the shops.
The WFP fears that Zimbabweans would be forced to take desperate measures if no additional help was given.
"Vulnerable families will be forced to adopt risky survival measures, including eating potentially poisonous wild foods, selling their remaining household assets, exchanging sex for food and crossing illegally into South Africa," the agency said.
Meanwhile, the International Monetary Fund this week projected that Zimbabwe's inflation could hit 100,000 percent by the end of 2007 as a result of the government order to roll back prices to mid-June levels.
Products have since disappeared from shelves and only available on a thriving black market following the order. University of Zimbabwe political scientist John Makumbe said that prospects of higher inflation further dented any chances of recovery of the comatose manufacturing and agricultural sectors.
He said the next few months could witness the emergence of a market where the Zimbabwe dollar would no longer be accepted as legal tender. "There is a high likelihood that everybody will move into the black market where they will trade in other currencies," Makumbe said.
A Harare-based economist has projected that the rate of inflation could rise beyond 300 000 percent by year-end on the back of continued money printing by the Reserve Bank of Zimbabwe.
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30 Jul Zimbabwe to print Z$500,000 note
Zimbabwe is mulling the introduction of a Z$500 000 bearer cheque note as the country's currency continues on its free-fall, according to sources within the central bank. They source said that the new note together with another new Z$200 000 bearer cheque, could be introduced any time soon.
"The $200 000 note could be introduced anytime from now, although the idea was to have the two new notes launched together," a source said. "The problem is that some senior officials within government are not keen to have the Z$500 000 note insisting this would be an admission that things are not well in the country," he added.
Currently, Zimbabwe’s highest denomination is the Z$100 000 bearer cheque, which, on the official foreign currency market, can only buy four loaves of bread. Zimbabwe is battling a severe economic crisis that has manifested itself in the world's highest inflation rate of nearly 5 000 percent. In addition to rampant inflation, the country is also grappling with unemployment of around 80 percent, food, fuel and electricity shortages and just about every other basic commodity.
Industry analysts said the shortage of sugar in the country will soon be exacerbated Zimbabwe after
at least a thousand workers at the giant sugar estates in the southern low-veld quit their jobs last week in protest over poor pay and working conditions.
The secretary general of the Zimbabwe Sugar Milling Workers Union (ZISMWU), Admore Hwarare told the press that at least 1 000 workers had abruptly left their sugar cane cutting jobs at Triangle and Hippo Valley Estates last week.
Cane cutters are among the lowest paid workers in Zimbabwe with lowest worker taking home about Z$800 000 per month, just enough to buy two litres of cooking oil.
Around 300 hectares of sugar cane crop went up in smoke earlier this year following an arson attack during protests by workers for better pay and working conditions.
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27 Jul Zimbabwe June inflation over 13 000%
The Consumer Council of Zimbabwe (CCZ) says its recent calculations for the monthly expenditure for an urban family of six shows that inflation for the month of June was more than 13 000%.
The Central Statistical Office (CSO), the official source of Consumer Price Index numbers, has not released its figures since February when it reported annual inflation at 1 729%.
Two months ago business digest revealed that Finance minister Samuel Mumbengegwi, had directed the CSO to stop releasing the figures. The March figures were kept under wraps until central bank governor Gideon Gono revealed them during his interim monetary policy review.
The market has come to accept 4 530% as the inflation figure for May although the numbers were never confirmed by the CSO. According CCZ's bread basket for June, a family of six now requires Z$8,2 million to live an average life.
Families that live below this amount are regarded as poor. The figure shows an increase of 13 445% in year-on-year inflation from $61 097 (revalued) which was required by the same size of family last June.
27 Jul Drought, Aids hit southern Africa
Drought, AIDS and chronic poverty in the landlocked southern African states of Lesotho, Swaziland and Zimbabwe are putting hundreds of thousands at risk of hunger, a U.N. official said this week.
"You have got very severe drought in three countries, some of the worst harvests on record in Swaziland and an incredibly high levels of HIV/AIDS in Lesotho," John Holmes, the U.N. humanitarian coordinator, told the press. "This is occurring on the basis of very vulnerable populations to start with," he said.
In Swaziland, with only one million people, a third of all people between 15 and 49 are afflicted with HIV/AIDS. The harvest is the worst ever, prompting the government in June to declare a national disaster.
Holmes said that more than 400,000 people in Swaziland will require humanitarian assistance, and requested $15.6 million in emergency
assistance. Lesotho earlier this month declared a food emergency and an appeal will be issued shortly, Holmes said.
The tiny country has experienced the most severe drought in the last 30 years, which slashed the corn harvest by more than 40 percent. More than 400,000 people, or a fifth of the population, need emergency food aid. In Zimbabwe, where diplomats blame some of the disaster on the policies of its leader, Robert Mugabe, about half of the financial appeals have been fulfilled. An earlier appeal for $253 million has drawn a response of $123 million with nearly $100 million donated by the United States, Holmes said.
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23 Jul $100 laptop ready for production
The so-called $100 laptop is poised to go into mass production, five years after the concept was first proposed. Hardware suppliers have been given the green light to ramp-up production of all of the components needed to build millions of the low-cost machines.
Previously, the organisation behind the scheme said that it required orders for 3m laptops to make production viable. The first machines should be ready to put into the hands of children in developing countries in October 2007.
"There's still some software to write, but this is a big step for us," Walter Bender, head of software development at One Laptop per Child (OLPC), told the press.
The organisation has not said which countries have bought the first machines but it is believed that several African countries will be among the first recipients of the laptop..
Getting the $100 laptop to this stage has been a turbulent journey for the organisation and its founder Nicholas Negroponte. Since the idea was first put forward in 2002, the low-cost laptop has been both lauded and ridiculed.
Intel chairman Craig Barret famously described it as a "$100 gadget" whilst Microsoft founder Bill Gates questioned its design, particularly the lack of hard drive and its "tiny screen".
Other critics asked whether there was a need for a laptop in countries which, they said, had more pressing needs such as sanitation, water and health care. Professor Negroponte's response has always been the same: "It's an education project, not a laptop project."
Kofi Annan, ex-secretary General of the UN has described the laptop as an "expression of global solidarity" that would "open up new fronts" for children's education.
Some of the critics have changed their stance. Earlier this month, Intel, which manufactures what was considered a rival machine, the Classmate PC, joined forces with OLPC. The innovative design of the XO machine has also drawn praise from the technical community.
Using open source software, OLPC have developed a stripped-down operating system which fits comfortably on the machine's 1GB of memory.
"We made a set of trade-offs which may not be an office worker's needs but are more than adequate for what kids need for learning, exploring and having fun," said Professor Bender.
The XO is built to cope with the harsh and remote conditions found in areas where it may be used, such as the deserts of Libya or the mountains of Peru. It has a rugged waterproof case and is as energy efficient as possible.
"The laptop needs an order of magnitude less power than a typical laptop," said Professor Bender. "That means you can power it by solar or human power."
Governments that sign up for the scheme can purchase solar, foot-pump or pull-string powered chargers for the laptop. And because it may be used in villages without access to a classroom, it has also been designed to work outside. In particular, the green and white machines feature a sunlight-readable display.
The XO will be produced in Taiwan by Quanta, the world's largest laptop manufacturer. Field testing is also being done in countries such as Nigeria and Brazil. The XO currently costs $176 (£90) although the eventual aim is to sell the machines to governments for $100 (£50).
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22 Jul Zimbabwe food crisis looms
The food crisis in Zimbabwe will shortly hit desperate levels amidst reports by Famine Early Warning System Network (FEWSNET), that the country is facing its worst food shortages yet, with this year’s harvest having only met just above 30% of national requirements.
In its latest food outlook report on Zimbabwe covering the period from March to July, the network said widespread crop failure caused by poor rainfall and a long-running economic crisis had combined to drastically slash food production in Zimbabwe.
The UN World Food Programme (UNFP) says because of crop failures in the southern provinces and escalating poverty in both rural and urban areas, around 2.1 million people will face serious food shortages by the third quarter of this year.
It says the number of people at risk will peak at 4.1 million in the first three months of 2008 - more than a third of Zimbabwe's estimated population of 12 million people.
The world body also notes in its report that an estimated 352 000 tonnes of cereals and 90 000 tonnes of food assistance will be required to meet their basic food needs. The most affected provinces include Masvingo, Midlands and Matabeleland North and South. Three districts in Matabeleland South last week said the response by donors for urgent food assistance had been disappointing, sparking fears of a major crisis.
Angeline Masuku, the Matabeleland South governor, who early this year appealed to the government to declare her province a disaster area to help mobilise urgent food aid refused to comment on the worsening situation, referring questions to the Grain Marketing Board (GMB). The government is yet to declare the province a disaster area making it difficult for potential donors to mobilise international support.
GMB, acting chief executive officer, Samuel Muvuti, contends that the parastatal has enough maize stocks to feed the whole nation and attributes shortages to transport problems. He said the parastatal is moving grain from the northern parts of the country because in the south, crops were almost a write-off. "There is a lot
of maize in the country," Muvuti said.
In Matabeleland South, the San community who still survive as hunter gatherers, are reportedly the most affected by the crisis. Acting Tsholotsho District Administrator, Lydia Ndethi-Banda, warned recently that the San would die of hunger if donors did not intervene urgently.
Meanwhile, the government scoffed at food aid pledges by the United States and Canada last week, saying it was meant for opposition parties. Sikhanyiso Ndlovu, the Minister of Information and Publicity, told the state media that the two countries were "trying to turn the people against the government" by making the pledges.
Canada donated US$3.3 million to the WFP, which will help the agency scale up its operations in response to the food crisis. On Tuesday, the US also announced that it would provide 47 000 tonnes of food assistance to the country. Zimbabwe requires about two million tonnes of maize for annual consumption but estimates show that this year Zimbabwe harvested a mere 400 000 tonnes of maize, the country's main staple.
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21 Jul Kenyan film to go international
A Kenyan film about two people stuck in a toilet has secured a deal for international release. The film, Malooned, is a romantic drama about two people from different tribes who have to resolve their prejudices when they become locked in a washroom.
The title is a play on the word marooned, with "loo" inserted to highlight the film's main location. The deal for international release was secured after the film won two awards at the Zanzibar film festival.
Producer Bob Nyanja says he was inspired by a true story about a university professor who was locked in a toilet for several hours. The film was produced for less than a third of the $2.5m deal signed with Pretty Pictures International.
"This is a fantastic opportunity through Pretty Pictures International to showcase what Kenyans with limited resources can do," Nyanja said. The producer says that to surmount the challenges of logistics and limited budgets, Kenyan film makers have to be more creative in seeking out fresh ideas and talent.
In the film, a married man and a young woman are locked in a toilet. They develop a relationship through their enforced enclosure.
"People always love to watch movies about love stories and I used this inclination to set my film," Nyanja explained.
Malooned highlights the prejudices and stereotypes that exist between different ethnic groups in Kenya. The prejudices depicted in the movie also touch on the ethnic nature of Kenyan politics.
Nyanja hopes that the movie will foster a spirit of reconciliation among Kenyans.
"Let's get out of our prejudiced toilets and work as a nation," he says. "By talking, we will discover we like one another even more than we know."
Funding and distribution are some of the major challenges facing the country's fledgling movie industry. The producers are hoping that by making the Malooned available in all major film outlets and supermarkets, that they will overcome the logistics of distribution.
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17 Jul Zimbabwe ‘needs US$10bn to recover’
A report in the Economist Intelligence Unit (EIU) says Zimbabwe will need a cash injection of between US$5-10bn over the next five years to set its stalled economy back on track.
The report argues that Zimbabwe’s neighbours within the SADC bloc, which has been mulling strategies to rescue the comatose economy, would be unable to shoulder the burden alone.
The EIU report comes in the wake of reports that Zimbabwe's southern African neighbours had hatched a plan to extend the monetary union covered by the stronger South African rand so that it also included Harare.
The reports were denied by the South African and Zimbabwean governments as well as by the Southern African Development Community (SADC) under whose aegis the rand rescue package was supposed to be implemented.
"It is also questionable whether South Africa, currently running a current-account deficit of six percent of GDP (Gross Domestic Product) and faced with very high levels of poverty and unemployment, could take on the financial burden of bailing out Zimbabwe," the EIU said.
The think-tank noted that the reported rand bail-out package would have required convergence of macroeconomic indicators such as inflation.
"Bringing Zimbabwe into the rand monetary area, shared by South Africa, Lesotho, Namibia and Swaziland, would involve harmonising currencies from countries where the inflation rate ranges average around six percent (South
Africa) and 5 000 percent (Zimbabwe)," the think-tank said.
The EIU said any SADC rescue plan for Zimbabwe was bound to fail unless there was a major change in policies in Harare.
It cited the ongoing campaign against businesses by the authorities in which more than 2 000 businesspeople have been arrested for failing to comply with the government's "price rollback" order as a stopgap measure that would have to be backed by more solid policies.
President Robert Mugabe has during the past three weeks ordered prices to be rolled back to mid-June levels in a move targeted at reining in runaway inflation now estimated at more than 5 000 percent.
Manufacturers have responded by stopping production, prompting Mugabe to threaten to nationalise any companies that close down or retrench staff.
"As the supermarket shelves empty, goods disappear from the warehouses and fuel becomes increasingly unobtainable, the government will have to think again," the EIU s | | | | |
