Corporate Council on Africa E-Journal

Check out the Corporate Council on Africa's Monthly Newsletter!  Better yet, subscribe to it!  It contains a plethora of business oriented Africa news!  CCA is an awesome organization that also puts on some great events.  Check out their website for more information. 

Corporate Council on Africa Daily News Clips!

The Corporate Council on Africa is another stellar organization that puts out daily news clips for which you can sign up.  A little diffrent direction that ACSS which is good because between the two you get a well-rounded look at the daily news.

CCA Daily News Clips

Tuesday, March 29, 2011

China Will Increase Investment in Africa: Standard Bank

Finance Asia

According to South Africa-based Standard Bank, mainland China maintained its position as Africa’s largest trading partner in 2010. Standard Bank, in which Industrial and Commercial Bank of China has a 20% stake, estimates the value of mainland investment into Africa will increase to $50 billion by 2015. Read more>> <http://www.financeasia.com/News/252619,china-will-increase-investment-in-africa-says-standard-bank.aspx>

South African Airways Contracts Quovadis to Help Reduce Fuel Burn

Defence Web

Airbus subsidiary Quovadis has been contracted by South African Airways to design required navigation performance procedures for Cape Town International Airport in an effort to reduce fuel burn and Carbon Dioxide emissions. Read more>> <http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=14455:south-african-airways-contracts-quovadis-to-help-reduce-fuel-burn&catid=35:Aerospace&Itemid=107>

INFRASTRUCTURE

Microsoft Unveils South African Empowerment Deal

Reuters Africa

Microsoft South Africa, a unit of the world's largest software firm, will invest 475 million rand in four black-owned software firms to meet black economic empowerment rules. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE72S02A20110329>

TransCentury Set to Invest $300 Million in Kenya Rail System

Business Daily Africa

The cost of transporting goods across Kenya into Uganda could reduce significantly in the next five years following investment firm TransCentury’s plans to inject $300 million into Rift Valley Railways. Read more>> <http://www.businessdailyafrica.com/Corporate+News/TransCentury+set+to+invest+Sh24+billion+in+rail+system/-/539550/1134784/-/14ogjpq/-/index.html>

World Bank Injects $100 Million Into Kenya Slum Upgrading Plan

Africa Review

The World Bank has advanced Kenya $100 million to upgrade infrastructure in the country’s slums and improve their security of tenure. Read more>> <http://www.africareview.com/Business+++Finance/World+Banks+plan+for+Kenyan+slums/-/979184/1135028/-/7foi0jz/-/>

Dealer Deepens Presence in Heavy Equipment Sector

Business Daily Africa

Heavy equipment supplier Mantrac has expanded its operations in Kenya to tap into a construction boom triggered by the ongoing infrastructure and housing projects across the country. Read more>> <http://www.businessdailyafrica.com/Corporate+News/Dealer+deepens+presence+in+heavy+equipment+sector/-/539550/1134804/-/d8yttvz/-/index.html>  

South Africa to Meet 2013 Renewable Energy Target : Official

Reuters Africa

South Africa will accelerate its renewable energy program to meet a target of producing 10,000 gigawatt hours by 2013, an energy official said on Tuesday.

Read more>> <http://af.reuters.com/article/topNews/idAFJOE72S08020110329>

Senegal to Build ‘Seven Wonders’ Complex in Capital: Le Soleil

Bloomberg

Senegal plans to build “The Seven Wonders of Dakar,” a 27 acre zone that will include a national theater, a national library, an architectural school, a museum of African history, an art museum, an art school and a concert hall, Le Soleil reported. Read more>> <http://www.bloomberg.com/news/2011-03-29/senegal-to-build-seven-wonders-complex-in-capital-soleil-says.html>

Nigeria, Korean Firm in Talks Over Sale of Egbin Plant

The Nation

The Federal Government is discussing with a South Korean firm, Korean Electric Power Corporation, to sell Egbin power plant. Read more>> <http://thenationonlineng.net/web3/business/32012.html>

Angola to Build 2 Million Ton a Year Cement Plant: Angola Press

Bloomberg

Nova Cimangola, Angola’s biggest cement maker, plans to build a factory to produce as much as 2 million metric tons of the building material a year, Agencia Angola Press reported. Read more>> <http://www.bloomberg.com/news/2011-03-29/angola-to-build-2-million-ton-a-year-cement-plant-angop-says.html>

EXTRACTIVE INDUSTRIES

Sidi Kerir, Egypt Government to Form $1.18 Billion Ethylene Production Company

Bloomberg

Sidi Kerir Petrochemicals Co. and two Egyptian government companies are investing $1.18 billion in an ethylene venture. Read more>> <http://www.bloomberg.com/news/2011-03-29/sidi-kerir-government-to-form-ethylene-production-company-1-.html>

Zambia to Decide this Year on Refinery's Future

Reuters Africa

Zambia will decide by the end of this year on the future of its sole refinery which may include upgrades to its units or the country opting to import products instead, an official said late on Monday. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE72S03T20110329>  

Angola’s Sonangol to Build 200 Gas Filling Stations, Export Liquefied Natural Gas in 2012

Bloomberg

Sonangol SA, Angola’s state oil company, will build another 200 gasoline filling stations by 2015, adding to the 439 it already operates. Read more>> <http://www.bloomberg.com/news/2011-03-29/angola-s-sonangol-to-build-200-gas-filling-stations-export-lng-in-2012.html>

Dominion Faces Tullow in Search for Oil in Kenya

Business Daily Africa

The scramble for oil exploration blocks in Kenya has heightened as companies make last-ditch efforts to resolve the puzzle of why the country, despite sitting on a rich vein that has yielded oil elsewhere, is yet to strike wells with tangible quantities for exploration. Read more>> <http://www.businessdailyafrica.com/Corporate+News/Dominion+faces+Tullow+in+search+for+oil+in+Kenya/-/539550/1134214/-/aeep81z/-/index.html>

Afren, Focused on Africa, Has ‘Rich Acquisition Pipeline’ After Bond Sale

Bloomberg

Afren Plc, a U.K. oil and gas explorer focused on Africa, has a “very rich acquisition pipeline” after exceeding a target for bond sales, Chief Executive Officer Osman Shahenshah said. Read more>> <http://www.bloomberg.com/news/2011-03-29/afren-focused-on-africa-has-rich-acquisition-pipeline-after-bond-sale.html>

Kenol Kobil Moves Into Non-Oil Products to Grow its Earnings

Business Daily Africa

Kenol Kobil is deepening its reach into the non-oil products market to grow revenues and reduce over-reliance on fuel revenues. Read more>> <http://www.businessdailyafrica.com/Corporate+News/Kenol+Kobil+moves+into+non+oil+products+to+grow+its+earnings/-/539550/1134816/-/7cshde/-/index.html>

BANKING & FINANCE

Tanzania Issues Tender for Consultants on Stock Exchange Demutualization

Bloomberg

The Bank of Tanzania said it’s seeking consultants to provide advice on the planned demutualization of the Dar es Salaam Stock Exchange. Read more>> <http://www.bloomberg.com/news/2011-03-29/tanzania-s-central-bank-tenders-for-consultants-on-bourse-demutualization.html>

France's BNP Paribas to Increase African Presence

Reuters Africa

French bank BNP Paribas will soon open an office in Nigeria and boost its South African investment banking presence, an official said on Tuesday. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE72S09L20110329>

Kenya Islamic Banking Deepens Financial Services Uptake

Business Daily Africa

Islamic banks now control 0.9 per cent of total accounts, indicating increased penetration of financial services to a segment of the population that was hitherto excluded from the system due to its religious beliefs. Read more>> <http://www.businessdailyafrica.com/Islamic+banking+deepens+financial+services+uptake/-/539552/1134698/-/au3o7n/-/index.html>  

RETAIL

Pick n Pay to Expand in Zambia

Business Day

The battle for a slice of the untapped African retail market continues to intensify as South Africa’s second largest supermarket announced the opening of a second store in Zambia yesterday. Read more>> <http://www.businessday.co.za/articles/Content.aspx?id=138494>

Kraft Foods 'Double in Five' Plan Looks to Africa

Business Day

Kraft Foods SA on Monday said it had invested 160 million rand in a pilot skills program in its sub-Saharan African operations as it positioned itself to double its revenue in five years in an increasingly competitive fast moving consumer goods market. Kraft Foods SA is part of US-listed Kraft Foods. Read more>> <http://www.businessday.co.za/articles/Content.aspx?id=138445>

AGRICULTURE

Tanzania Investment Bank to Lend $13.3 Million: The Guardian

Bloomberg

Tanzania Investment Bank Limited plans to lend $13.3 million to agricultural businesses, The Guardian reported, citing Eric Hamisi, a zone manager at the fund.  Read more>> <http://www.bloomberg.com/news/2011-03-29/tanzania-investment-bank-to-lend-13-3-million-guardian-says.html>

Rwanda Plans Weather Early Warning System to Boost Farm Revenue

Bloomberg

Rwanda plans to establish an early- warning system for extreme weather to help boost revenue from farming, said John Ntaganda Semafara, director of meteorology at the Infrastructure Ministry. Read more>> <http://www.bloomberg.com/news/2011-03-29/rwanda-plans-weather-early-warning-system-to-boost-farm-revenue.html>  

BEVERAGE

Heineken Submits Highest Bids for Ethiopian State-Owned Brewing Companies

Bloomberg

Heineken NV, the world’s third- largest brewer, submitted the highest offer for an Ethiopian brewery being sold by the government and is the only bidder for a second one, the country’s privatization agency said. Read more>> <http://www.bloomberg.com/news/2011-03-29/heineken-submits-highest-bids-for-ethiopian-state-owned-brewing-companies.html>

MEDIA

Kenya Media Sector New Frontier for Global Firms

Business Daily Africa

Kenya’s media sector is set to become a new frontier for investment as global giants move to cash in on increased demand for specialized services. Read more>> <http://www.businessdailyafrica.com/Corporate+News/Media+new+frontier+for+global+firms/-/539550/1134830/-/iu4as8z/-/index.html>

EBCAM

Click here <http://www.africacncl.org/ps4d/EBCAM-MEMORANDUM_N%C2%BA_53-2011.pdf>  for English and French news articles on the continuing conflict in Libya, and more.

Why you should subscribe to the Corporate Council on Africa Daily Newsletter

Because it's a compendium of great information!  I pasted todays email below! 

http://africacncl.org/

                 

CCA MEMBER NEWS

Tenke-Fungurume (Freeport-McMoRan) November 2010 Newsletter

Freeport-McMoRan

Click here <http://www.africacncl.org/ps4d/E-News_11_EN_2010.pdf>  for the Tenke-Fungurume (Freeport-McMoRan) November 2010 Newsletter. 

INFRASTRUCTURE

African Development Bank Invests Over $1 Billion in African Energy Projects 

African Development Bank

In line with its strategy to boost energy infrastructure to accelerate Africa’s development, the African Development Bank Group approved over $1 billion in energy projects across the continent during the last few weeks of 2010. Read more>> <http://www.afdb.org/en/news-events/article/afdb-invests-over-usd-1-billion-in-african-energy-projects-7623/>

African Development Bank Invests $806 Million in African Transport Sector

African Development Bank

The African Development Bank board of directors approved $806.1 million loans and grants to finance a number of national and multinational transport infrastructure and related projects on the continent in the past two months. Read more>> <http://www.afdb.org/en/news-events/article/afdb-invests-usd-806-million-in-african-transport-sector-7630/>

African Development Bank Invests $100 Million African in Water Sector

African Development Bank

The African Development Bank Group has approved 3 projects in the water sector in the last few weeks amounting to $114.35 million. The Bank strongly believes supporting the sector is important to enhancing economic growth, improving living conditions as well as the health and education sectors of beneficiary countries.  Read more>> <http://www.afdb.org/en/news-events/article/afdb-invests-usd-100-million-african-in-water-sector-7626/>

Ethiopia Gets $224.3 Million Funding for Power Lines

Businessweek

Ethiopia secured $224.3 million from the African Development Bank to fund the construction of four electricity transmission lines to improve its own power supply and help development in neighboring countries, the lender said. Read more>> <http://www.businessweek.com/news/2010-12-21/ethiopia-gets-224-3-million-funding-for-power-lines.html>

Morocco Wins 300 Million Euro Loan for Rail Project

Reuters Africa

The African Development Bank has granted Morocco a 300 million euro loan to finance a rail project, the bank said on Tuesday. Read more>> <http://af.reuters.com/article/moroccoNews/idAFLDE6BK1WN20101221>

Vodacom to Explore Options for Congo Unit

Reuters Africa

South Africa's Vodacom said on Wednesday it has appointed investment bank Rothschild to explore options for its troubled unit in the Democratic Republic of Congo, signaling it may sell the business. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE6BL08220101222>

EXTRACTIVE INDUSTRIES

India to Seek Coal Mines in Africa to Plug Shortfalls in Domestic Supplies

Bloomberg

India’s Coal Minister Sriprakash Jaiswal said state-run companies will seek deals to buy mines in South Africa, Botswana and Mozambique when he visits the continent next month in a bid to plug a domestic shortfall. Read more>> <http://www.bloomberg.com/news/2010-12-21/india-to-seek-coal-mines-in-africa-to-plug-shortfall-in-domestic-supplies.html>

Angola OKs 7 Gem Projects, Is Satisfied With Prices, Angop Says

Businessweek

Angola approved seven new diamond- mining projects this year and is satisfied with a rebound in the price of the stones, the chairman of the national gem company said, according to state news agency Angop. Read more>> <http://www.businessweek.com/news/2010-12-21/angola-oks-7-gem-projects-is-satisfied-with-prices-angop-says.html>

Sasol Looks for Gas to Boost Synfuels, Chemicals Operations

Reuters Africa

South Africa's Sasol is looking for more gas across Africa and beyond to boost its production of chemicals and synthetic fuels, but may also feed it into power plants if the economics make sense. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE6BL07W20101222>

Sasol's Gas and Oil Projects

Reuters Africa

South African petrochemicals group Sasol is looking for more gas across Africa and beyond to boost its chemical and synthetic fuel production, but may opt to use gas for power if the economics make sense. Below is a list of the main projects at Sasol Petroleum International, its upstream unit. Read more>> <http://af.reuters.com/article/mozambiqueNews/idAFLDE6B81H420101222>

 ECONOMY

Burkina Faso’s Compaore Plans Mining, Cotton Boost in New Term

Bloomberg

Burkina Faso President Blaise Compaore wants to lure investment in gold mining and boost cotton production during his new five-year term as leader of one of the world’s poorest counties. Read more>> <http://www.bloomberg.com/news/2010-12-20/burkina-faso-s-president-compaore-plans-mining-cotton-boost-in-new-term.html>

Egypt's Economy to Grow Steadily Over Next 2 Years

Reuters Africa

Egypt's economy will grow steadily over the next two years thanks to growing private investment but the expansion will be slower than that forecast by government officials, a Reuters poll showed on Tuesday. Read more>> <http://af.reuters.com/article/investingNews/idAFJOE6BK0DV20101221>

Gulf Firms Wary of Investing in Southern Sudan

Reuters Africa

The semi-autonomous south -- due to vote on its future on Jan. 9 -- suffers from an almost total lack of infrastructure, but concerns over the region's stability will overshadow huge investment opportunities there, executives from major Gulf companies said. Read more>> <http://af.reuters.com/article/sudanNews/idAFLDE6BI04Y20101220>

AGRICULTURE

Mozambique Aims to Raise $645 Million to Fund Its National Irrigation Plan

Bloomberg

Mozambique’s government plans to raise $645 million by 2019 to finance a national irrigation project, according to a statement issued after a Cabinet meeting yesterday. Read more>> <http://www.bloomberg.com/news/2010-12-22/mozambique-aims-to-raise-645-million-to-fund-its-national-irrigation-plan.html>

African Farmers Displaced as Investors Move In

The New York Times

Across Africa and the developing world, a new global land rush is gobbling up large expanses of arable land. Despite their ageless traditions, stunned villagers are discovering that African governments typically own their land and have been leasing it, often at bargain prices, to private investors and foreign governments for decades to come. Read more>> <http://www.nytimes.com/2010/12/22/world/africa/22mali.html?pagewanted=1&_r=1&ref=africa>

EBCAM

Click here <http://www.africacncl.org/ps4d/EBCAM_MEMORANDUM_N_162-2010.pdf>  for English and French news articles on: strengthening food safety systems in African countries, the volume of EU development finance, an EU plan to lure African minerals, and more.



Canary Islands: Gateway to Africa?

Interesting article on the possibilities that lie within the Canary Islands...I need to research this a little more.

U.S. Firms Should Invest in Canary Islands to Reach Africa, President Says

Washington, DC — In Europe, the Canary Islands may be best known as a nearby vacation spot with idyllic climate. Americans may have heard in history class that the Italian explorer Christopher Columbus provisioned and repaired his three ships in the Canaries before setting off on the journey that led him to Cuba. In Africa, the islands have been a popular transition point for those trying to enter Europe clandestinely to better their economic standing. The strategic location and its classification as an autonomous region of Spain, as well as an 'outermost region' of the European Union, are advantages. These attributes can be leveraged to boost engagement with Africa and with the United States, according to Paulino Rivero Baute, who has been president of the Canary Islands since 2007. During an interview at the offices of the Corporate Council on Africa following an address to CCA members, President Rivero outlined how U.S. companies that might be reluctant to tackle Africa's infrastructural and legal framework challenges can instead invest through his homeland.

Most of our readers probably know little about your home territory. Give us a snapshot.

The Canary Islands are situated 100 kilometers from the [west] African coast and 1,500 kilometers from Europe. I would also point out that it is the last territory between Europe and Africa to have access to the United States - and that's why the Canary Islands was so very important to Columbus's discovery of America.

allAfrica.com

President Paulino Rivero of the Canary Islands with Ambassador Robert Perry, vice president of the Corporate Council on Africa.

Because we are part of Spain, we have special status in Europe, along with other islands such as La Reunion, Martinique, Guadeloupe, Madeira and others. We have made great strides with regard to the wellbeing of our people, a population of two million. In the last 15 years the standard of living has made great strides. We have reached approximately the average income per capita of Spain, and we are getting close to the average income in Europe. We have wonderful infrastructure with regard to ports and airports, and we offer the services that are needed in the 21st century.

You are here speaking to U.S. companies. What are the opportunities for doing business in the Canary Islands?

The Canary Islands during the last 25 years have developed a very solid tourism sector. We welcome 12 million tourists a year. We are one of the most important tourism destinations in the world. There are other business opportunities in the local market. However, the real potential lies in Africa; in other words, using the Canary Islands as a safe platform to invest and do business in Africa.

How does that work?

The archipelago is geographically located in Africa even though its population may have European roots and has always oriented towards Europe. The Canary Islands enjoy a preferential relationship, a privileged relationship, with western Africa. Currently we have 200 companies doing business on the western coast of Africa, and also those of us from the Canary Islands are very well looked upon by Africans.

The U.S. government invests its own resources on the African continent and invests in co-operation and development because it is a way to generate security. Why is it that U.S. companies have not aligned their objectives with this co-operation and development policy? If we ask U.S. business people why they are not investing in Africa currently, they will tell you, first of all, there is legal uncertainty on the African continent and that the African continent does not offer the necessary airport and port infrastructures for easy transportation. They will also mention that human capital is severely limited and that health services, for example, are either non-existent or deficient. These obstacles are hindering U.S business people from investing in Africa. That's where the Canary Islands come in: we have an advantageous geographic position and we are looked kindly upon in Africa.

So you would like to see more partnerships between U.S companies and Canary Islands companies engaging in Africa?

Yes, we see this in two ways actually. First of all, we believe that U.S companies will take advantage of the tax benefits and incentives that the Canary Islands offer, so that they can actually establish a base there, for example preparing their products or preparing technology in order to invest in Africa.

It's also possible that U.S. businesses could establish partnerships with businesses from the Canary Islands that are already operating in Africa, although it may be too presumptuous to think that a large multinational company would want to have a partnership with a small business from the Canary Islands. They probably would be most interested in using the Canary Islands for the tax incentives and the legal certainties of our system.

You said 200 Canary Islands companies are operating in Africa. Can you give some examples?

Currently the Canary Island businesses that are most involved in Africa are those that have to do with tourism, construction and services, specifically. Other sectors also offer great opportunities, such as the water sector – anything to do with desalination, purification, the use of water – and the clean energy and technology sectors.

Tourism dominates your economy?

Heretofore, the most important economic sectors have been construction and tourism. However, we understand that we need to diversify. We have very limited physical territory on the islands, and so the construction sector cannot really continue as it did in the past. We are betting on the water sector, the clean energy sector and also trying to develop the Canary Islands as this logistical platform towards Africa.

We are considered a benchmark in these sectors in all of Europe because of the need we have had for desalination plants on the island since the 1970s and the need for clean energy. Interestingly enough, water and clean energy are two of the most important policies that need to be developed in Africa.

With your proximity to Africa, do you get involved in political issues affecting nearby states – ongoing tension between Morocco and Western Sahara, for example?

We try to manage with tact, prudence and responsibility. We have positive relationships with both parties, the Moroccans and the Polisario Front. We believe that managing with responsibility means compliance with UN resolutions.

How are you affected by problems in your region such as piracy and drug trafficking?

What has really impacted us in recent years is human trafficking, which, of course, is a tragic problem, clandestine human trafficking conducted by mafias. The problem of illegal immigration reached its peak some three or four years ago, with all these people dying at sea. It was, in my opinion, these deaths which finally coalesced European attention and brought it towards Africa.

Relevant Links

• Europe and Africa
• U.S., Canada and Africa
• Business

First of all, the European Union deployed controls throughout the mid-Atlantic – that was very helpful – and then furthermore the EU (European Union) attempted to seek commitments from the African countries of origin of the majority of these illegal immigrants, and they got a commitment that these countries would put into place stricter border controls. I frankly believe that the policy with regard to illegal immigration is development, co-operation and well-being. We can't just use law enforcement to staunch this human flow, so we need to develop Africa and also offer a standard of living to Africans whereby they will want to stay in their own countries.

With regard to piracy, our region is actually calm in that regard. There is a problem in drug trafficking. We are at a crossroads because of our geographical position and, of course, we pay a great deal of attention towards this.

ACOTA Corporate Council on Africa Meeting

I went to the monthly (ish) security working group breakfast hosted by the Corporate Council on Africa (CCA) this morning.   The general topic was ACOTA (Africa Contingency Operations Training and Assistance).  Here are a couple of links if you aren't familiar.

http://www.africom.mil/getArticle.asp?art=1886

http://www.state.gov/p/af/rt/acota/index.htm

http://en.wikipedia.org/wiki/African_Contingency_Operations_Training_and_Assistance

http://www.disam.dsca.mil/pubs/Indexes/Vol%2030_4/U.S.%20Africa%20Command%20Public%20Affairs.pdf

www.nps.edu/.../2007/Jan/piomboJan07.html

The guest speaker was Michael Bittrick, Deputy Director, Office of Regional and Security Affairs, Africa Bureau at the State Department.  He didn't really discuss ACOTA much, instead he spent most of the time speaking to State Department priorities in Africa and general goals which proved to be an interesting topic.

Here's my beef.  ACOTA is a relative success story for the State Department but it has gotten lackluster no media coverage.  Go ahead, open up another tab on your computer and bring up 'google news' and put in "ACOTA" or the full spelling of the acronym.  You won't find a single news article on it (You will find a ton of spanish articles having NOTHING to do with it).  I think it would behoove State (or AFRICOM) to get an embedded reporter out there for a month or two. 

 There is no success in Africa if no one writes about it. 

Website of the Week: Corporate Council on Africa

This week I'd like to highlight the Corporate Council on Africa's website:  http://africacncl.org/

The CCA is one of those organizations that does something.  They engage with businesses/investors and facilitate the dialogue necessary to develop Africa. 

Please check out their events (to include their frequent Working Group Breakfasts) and get involved.