Monthly Archives: January 2017

31 Jan

South Africa and Thailand to Sign MoU on Investment

According to the Acting Head of ISA, Mr Yunus Hoosen, the purpose of the MoU is to advance the economic agenda between South Africa and Thailand

South Africa’s national investment promotion agency, Investment South Africa (ISA) will sign a Memorandum of Understanding (MoU) with the Board of Investment Thailand in Bangkok, Thailand on Tuesday, 31 January 2017.

According to the Acting Head of ISA, Mr Yunus Hoosen, the purpose of the MoU is to advance the economic agenda between South Africa and Thailand.

“One of Invest SA’s objectives is to identify potential foreign investors and attract them to invest in the country, in an effort to grow the economy and create employment opportunities. The MoU that we will be signing with Thailand next week is aimed at promoting and facilitating cooperation between the two countries on investments in automotive, agro-processing and electronics sectors. It will also enhance our collaborative efforts to attract investments into our countries,” says Hoosen.

He adds officials from the KwaZulu-Natal-based Richards Bay Industrial Development Zone (RBIDZ) will be part of the delegation. They will be on a mission to attract Thailand automotive component manufacturers to invest in the RBIDZ.

“We are optimistic that the implementation of the MoU will see Thai investors setting up manufacturing plants in South Africa resulting in job creation,” adds Hoosen.

The latest statistics show that total trade between South Africa and Thailand in the first three quarters of 2016 reached R29.9 billion, a 24.3 % increase from R24 billion achieved in the same period of 2015.

InvestSA is South Africa’s national investment promotion agency, providing a One-Stop-Shop services to investors. This includes investment promotion, facilitation and aftercare, all of which are geared at fast-tracking projects and reducing government red-tape.

Distributed by APO on behalf of The Department of Trade and Industry, South Africa.

30 Jan

Virunga Foundation and Aera Group Launch Carbon Certification for Renewable Energy in Democratic Republic of Congo

Virunga National Park and Aera Group, Africa’s leading carbon finance group, have launched a VCS carbon certification process for Matebe hydropower plant. VCS is the world’s foremost voluntary Greenhouse Gas program and this pioneering action offers the possibility for further carbon certification in DRC. This partnership, with one of the most exceptionally biodiverse places in the world, is a first in eastern DRC for Aera Group.

Matebe hydro-plant is part of a wider investment plan, called the Virunga Alliance, initiated by the Virunga Foundation to provide access to energy for four million people who live and work in and around the Virunga National Park. Matebe will produce more than 13.6 MW, supplying 600,000 people with clean, accessible and affordable electricity, kickstarting the green economy and bringing over 12,000 sustainable employments for those in the region of Rutshuru. Matebe avoids the use of heavy, polluting, fossil fuel generators thus saving an estimated 50,000 tonnes of CO2 emissions per year.

The carbon credits awarded for the reduced CO2 emissions will become important environmental assets which can be sold to respected corporates, individuals or States dedicated to achieving carbon neutrality. The VCS carbon certification is an effective tool to transparently track and account the CO2 performance of Virunga’s clean energy projects.

Director of Virunga National Park, Emmanuel de Merode, said, “the fight against climate change is one of our key commitments. Protecting biodiversity, improving living conditions and preventing conflicts cannot be addressed without a sustainable pathway. We hope Virunga’s offering will attract those with an equal commitment to clean energy and employment based on a green economy.”

Alexandre Dunod, Advisory Manager at Aera Group: “Matebe is an outstanding ‘run-of-river’, micro-hydro project with strong impact and co-benefits. It is right in line with our portfolio policy focusing on Least Developed Countries and charismatic African stories and activities. We expect a strong demand for high quality African offsets in the years to come and we build our supply accordingly.”

Distributed by APO on behalf of Aera Group.

27 Jan

Africa expected to see moderate growth recovery in 2017 and 2018 amid challenging global environment: UN report

A moderate economic growth recovery is projected in Africa for 2017-18, even as the global economy continues to be trapped in a prolonged period of slow growth, according to
the United Nations World Economic Situation and Prospects (WESP) 2017 Report released today.

The report shows that world gross product grew by just 2.2 per cent in 2016, marking its slowest pace of expansion since the Great Recession of 2009. Global growth is projected to see a moderate improvement to 2.7 per cent in 2017 and 2.9 per cent in 2018, but this is more an indication of economic stabilization than a signal of a robust revival of global demand.

Against this backdrop, Africa is expected to see a recovery in growth, with GDP expanding by 3.2 per cent in 2017 and 3.8 per cent in 2018, up from 1.7 per cent in 2016. The projected increase in global commodity prices will ease fiscal and external pressures for commodity exporters, but a strong growth rebound in these countries appears unlikely. Several other countries, such as those in the East African Community and some Western African economies, enjoy a more favourable growth outlook.

Growth prospects in five African subregions
The report notes large differences in growth prospects among the five African subregions. East Africa is positioned to remain the fastest-growing subregion, with aggregate GDP projected to expand by about 6 per cent in 2017 and 2018, helped by the rapid expansion of domestic markets and strong spending on infrastructure.

West Africa is expected to see growth rebound from 0.1 per cent in 2016 to 3.1 per cent in 2017, as the projected increase in oil prices eases severe fiscal and external pressures in Nigeria. For several other West African countries, such as Cote d’Ivoire, Ghana and Senegal, the growth outlook remains strong, underpinned by large infrastructure investments and an improved domestic business climate.

Meanwhile, growth in North Africa is projected to accelerate from 2.6 per cent in 2016 to 3.5 per cent in 2017, contingent on a gradual improvement in the security situation.

The growth outlook for Southern Africa is relatively subdued, with economic activity projected to improve modestly to 1.8 per cent in 2017 and 2.6 per cent in 2018. While South Africa is expected to benefit from a moderate recovery in the agriculture and mining sector, political uncertainty may weigh on investor sentiments.

Growth in Central Africa is projected to strengthen from 2.4 per cent in 2016 to 3.4 per cent in 2017, as higher oil prices support export revenues and growth, particularly in Congo, Equatorial Guinea and Gabon. However, ongoing domestic political unrest will restrain economic activity in the Central African Republic and Gabon.

Inflation dynamics across the region
The report also takes note of marked differences in the inflation dynamics across the region. For the commodity-dependent economies, the weakening of domestic currencies fuelled imported inflation. The adverse impact of drought conditions and rising electricity tariffs added further upward pressure on inflation. In Angola, Mozambique and Nigeria, inflation reached multi-year highs. As high inflationary pressures are expected to persist in these economies, monetary policy stances will likely remain tight.

In contrast, inflation in the region’s net oil importers stabilised or slowed in 2016 and pressures are expected to remain subdued going forward. In several of these countries, including Botswana, Kenya and Morocco, central banks reduced policy rates in 2016 in a bid to stimulate growth.

Risks and policy challenges
The report cautions that there are significant risks to the global and the regional outlook. Among other issues, the report highlights the high degree of uncertainty in the international policy environment and elevated foreign currency-denominated debt levels as key downside risks that may derail global growth.

For Africa, the report identifies renewed weakness in commodity prices and a sharper-than-expected growth moderation in China as major risks. On the domestic side, an escalation of security concerns and political unrest could deter foreign investment and severely disrupt economic activity in some countries.

The report calls for a more balanced policy approach to not only restore robust growth in the medium term, but also to achieve greater progress on sustainable development. Given that commodity prices are projected to increase only modestly, the report also underscores the need for African economies to further strengthen policy measures to tackle domestic structural weaknesses, including measures to accelerate economic diversification, rebuild policy buffers and promote stronger job creation.

Distributed by APO on behalf of UN Information Centre in Pretoria (UNIC).

27 Jan

Japanese Seminar to look at South African investment opportunities

JOHANNESBURG, South Africa, January 26, 2017/APO/ —

Brand South Africa is a partner to this initiative which aims to celebrate South Africa’s strengths and opportunities for Japanese businesses to grow and invest in the country

The Japan External Trade Organisation (JETRO), in cooperation with the Embassy of Japan in South Africa and the Japanese Chamber of Commerce and Industries in South Africa will on Tuesday 31 January 2017 host the 4th Japan Seminar under the theme “Proudly South African”.

Brand South Africa is a partner to this initiative which aims to celebrate South Africa’s strengths and opportunities for Japanese businesses to grow and invest in the country.

The Executive Managing Director Institute for International Trade and Investment, Japan, Mr Saburo Yuzawa, will be joined by senior representatives from various organisations, including the Department of Trade and Industry, in looking at the competitive strengths of the South African Nation Brand.

The seminar aims to deepen mutual understanding and strengthen collaborative relations between the businesses and public entities of both nations.

Media is invited to attend as follows:
Date: Tuesday 31 January 2017
Time: 14h00
Venue: Sandton Convention Centre, Sandton
RSVP: Manusha Pillai, 082 389 3587, Slindokuhle Mbuyisa, +27 11 784 6084

Media is invited to please RSVP by Friday, 27 January 2017 for accreditation and logistical purposes.

Interviews can be arranged with identified spokespeople.

Distributed by APO on behalf of The Department of Trade and Industry, South Africa.

26 Jan

The 30th Ordinary Session of the African Union Executive Council kicks off in Addis Ababa

ADDIS ABABA, Ethiopia, January 25, 2017/APO/ —

The African Union (AU) Executive Council has emphasised the need for Africa to boost investment in Africa’s youth by promoting transformative and inclusive development agendas aimed at recognising the efforts by the youth in entrepreneurship and innovation.

This was stated during the opening of the 30th Ordinary Session of the AU Executive Council today 25 January 2017, at the AU Headquarters, Addis Ababa, Ethiopia, under the theme: “Harnessing the Demographic Dividend through Investments in Youth”.

The opening ceremony was attended by a high level gathering that included: H.E. Dr Nkosazana Dlamini Zuma AUC Chairperson, AU Ministers of Foreign Affairs, AU Commissioners, Dr. Abdullah Hamok, acting Executive Secretary of the UN Economic Commission for Africa (ECA), officials and invited guests.

Addressing the distinguished delegates at the opening ceremony, the Chairperson of the AU Commission, H.E. Dr. Nkosazana Dlamini Zuma said that for Africa to succeed in its integrated and inclusive development agenda“ it requires that we revive and strengthen the spirit of Pan Africanism, unity and solidarity to successfully steer our way towards agenda 2063”.

To meet the 1st target in Agenda 2063 of commencing the Continental Free Trade Area by the end of 2017, H.E. Dr. Dlamini Zuma stressed on the need to unlock the potential, the energy, the creativity and the talent of Africa’s young men and women. She said that this can be achieved only through the African Skills revolution, by creating jobs and economic opportunities, through diversification, agricultural modernisation and industrialisation so that Africa’s youth can be the drivers of agenda 2063.

Dr. Dlamini concluded her remarks by saying “whatever we do at this summit, we must ensure that we preserve the precious and principled unity of this continent and our union”.

Hon Minister of Foreign Affairs of The Republic of Chad and Chair of the Executive Council Mr. Moussa Faki Mahamat in his opening remarks noted that the 30th Executive council is being held on the back drop of significant changes happening at the African Union commission such as the AU reforms requested by Heads of States in Kigali and the pending AU elections which will be important for the organisation moving forward in meeting its obligations to the citizens of Africa.

The Minister commended the Excellent leadership of the AUC Chairperson and her Commission on championing Africa’s development agenda through the promotion of Agenda 2063. He ended his speech by officially declaring the 30th executive council open.

Dr. Abdullah Hamok, Acting Executive Secretary of the UN Economic Commission for Africa (UNECA), in his opening remarks noted that unlike other regions of the world, the proportion of youth in Africa’s total population was rising and this growth presented great opportunities as relates to the continent’s demographic dividend as well as challenges derived from the risks associated with soaring rates of youth unemployment.

The Executive Council meeting is the second of three statutory meetings to be held under the on-going 28th Summit of the African Union, holding from 22-31 January 2017. The first meeting was that of the Permanent Representatives Committee which was held from 22 to 24 January. The final meeting of the summit will be that of the Heads of State and Government to take place from 30-31 January.

For three days, the Ministers of External Affairs and other ministers or authorities designated by the governments of AU Member States will deliberate on the different reports of the Specialized Technical Committee (STCs) ministerial meetings organised by the AU Commission during the last six months. They will also adopt the report of the Permanent Representatives Committee.

The Executive Council will prepare the agenda of the AU Summit with appropriate recommendations for consideration by the Heads of State scheduled to take place from 30-31 January 2017.

The meeting of the Executive Council will officially end on Thursday 26th January 2017.

Distributed by APO on behalf of African Union Commission (AUC).

26 Jan

Loopholes in Mali’s Export Tax Regime make it a Magnet for the Illicit Trade of Gold in West Africa

Mali’s taxation practices applicable to gold exports have turned the country into West Africa’s illicit gold trading hub, Partnership Africa Canada (www.PACweb.org) said in a report published today.

The report, The West African El Dorado: Mapping the Illicit Trade of Gold in Côte d’Ivoire, Mali and Burkina Faso, investigates challenges in the governance of artisanal gold mining in the three countries—and the vulnerabilities posed by the illicit trade of gold on the region.

The investigation finds that all countries have taken important steps towards encouraging legal trade of artisanal gold—a sector which employs an estimated three million miners in Côte d’Ivoire, Mali and Burkina Faso—such as the harmonization of export taxes at 3%. Yet, Partnership Africa Canada found that Mali’s application of export taxes to only the first 50kg of gold per month is promoting smuggling, as traders bring gold over the border into Mali to get a large tax break.

“Mali’s harmful implementation of tax laws is cause for concern in the region, as it actively drives the illicit trade of gold. Mali’s neighbours are missing out on important revenue from taxes as traders smuggle gold over borders to take advantage of the tax break,” said Joanne Lebert, Partnership Africa Canada’s Executive Director.

“Importantly, export statistics from Mali are painting a worrying trend and it is up to international refiners and buyers to exercise additional due diligence on gold exported from the country to ensure the gold is clean,” added Lebert.

An analysis of gold production and trade statistics in Mali, as well as declared imports from the United Arab Emirates of Malian gold spotlighted major inconsistencies in the declared data. Over a four year period, UAE imports of Malian gold successively exceeded Mali’s entire gold production. Mali declared 40 tonnes of gold produced in 2013—while UAE declared 49.6 tonnes imported. In 2014, the figure rose with Mali declaring production at 45.8 and UAE declaring 59.9 in Malian gold imports.

Since much of Mali’s industrial production is exported to Swiss and South African refiners, Partnership Africa Canada found little explanation for the discrepancy. The extent of the illicit gold trade in Mali raises concerns about regional peace and stability and highlights the need for refining centres to exercise additional due diligence on imports.

Partnership Africa Canada calls on Mali to undertake a comprehensive review of its tax regime to address the loopholes that make it magnet for gold produced in West Africa. Additionally, the report calls on the Dubai Multi-Commodities Centre in the UAE to ban hand-carried imports of gold and demonstrate greater oversight over gold imports.

The report also calls on gold producing countries in West Africa to harmonize policies and practices in the gold sector through a Regional Approach, similar to that currently being implemented in the Mano River Union on diamond governance.

Distributed by APO on behalf of Partnership Africa Canada (PAC).

23 Jan

Equatorial Guinea Presents Offer to Join OPEC in 2017 and Agrees to Production Cuts

Gabriel Mbaga Obiang

H.E. Gabriel Mbaga Obiang, Minister of Mines and Hydrocarbons, travelled to Vienna on January 20 to meet with OPEC officials and present the Government of Equatorial Guinea’s offer to become the 14th member of the cartel

MALABO, Equatorial Guinea, January 23, 2017

The Ministry of Mines and Hydrocarbons of Equatorial Guinea (http://MMIE.gob.gq) announces that it has submitted its interest to join the Organization of Petroleum Exporting Countries (OPEC) in 2017. H.E. Gabriel Mbaga Obiang, Minister of Mines and Hydrocarbons, travelled to Vienna on January 20 to meet with OPEC officials and present the Government of Equatorial Guinea’s offer to become the 14th member of the cartel. With 32.5 million barrels per day of output projected this year, OPEC is the world’s largest organization of oil producers. The Minister’s trip to Vienna follows the Fourth Africa-Arab Summit, which hosted last November several OPEC members in Malabo, under the patronage of H.E. President Obiang Nguema Mbasogo.

Equatorial Guinea is the third largest oil and gas producer in sub-Saharan Africa

“For decades, Equatorial Guinea has achieved a sterling track record as a dependable supplier of petroleum to consumers in all corners of the world. We firmly believe that Equatorial Guinea’s interests are fully aligned with those of OPEC in serving the best interests of the industry, Africa and the global economy,” said H.E. the Minister.

On December 10, 2016, Equatorial Guinea agreed to join 10 other non-OPEC countries to reduce 558,000 barrels per day of total oil production in 2017. Equatorial Guinea’s share of the cut is 12,000 barrels per day. Even through a two-year sustained slump in oil prices, Equatorial Guinea has maintained liquid output levels at a competitive level.

“There is a consensus amongst producers that an oversupply of oil has been dragging down the price of the barrel,” the Minister said. “Equatorial Guinea is doing its part to ensure stability in the market and that the industry continues to invest in exploring and developing our resources.”

Equatorial Guinea is the third largest oil and gas producer in sub-Saharan Africa. Its $10.6 billion of annual oil and gas exports account for 95 percent of the country’s total exports, with shipments sold every day to China, India, Japan, Korea and many other countries. The country has remained committed to investing in the entire energy supply chain through landmark projects such as the Bioko Oil Terminal, the Fortuna Floating Liquefied Natural Gas project, the Riaba Fertilizers plant, compressed natural gas and LNG. Equatorial Guinea is currently hosting its latest oil and gas licensing round, EG Ronda, putting on offer all of open acreage not currently operated or under direct negotiation. Equatorial Guinea has made 114 oil and gas discoveries to date with a drilling success rate of 42 percent.

17 Jan

Hong Kong bans import of poultry meat and products from Uganda and areas in Germany, India and Japan

HONG KONG, The People’s Republic of China, January 17, 2017

The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department announced today (January 17) that in view of notifications from the World Organisation for Animal Health (OIE) about outbreaks of highly pathogenic H5N8 avian influenza in the State of Bavaria in Germany and Kottayam District in Kerala State of India, and an outbreak of highly pathogenic H5 avian influenza in Uganda and a notification from the Japanese authorities about an outbreak of highly pathogenic avian influenza in Gifu Prefecture, the CFS has banned the import of poultry meat and products (including poultry eggs) from the above places with immediate effect to protect public health in Hong Kong.

A CFS spokesman said that in the first 11 months of last year, Hong Kong imported about 9 300 tonnes of frozen poultry meat and 2 million poultry eggs from Germany, and about 6 800 tonnes of frozen poultry meat and 45 million poultry eggs from Japan. Hong Kong at present has established a protocol with India for the import of poultry eggs but not for poultry meat, and no poultry eggs were imported into Hong Kong from India in the same period. In addition, as Hong Kong has not established any protocol with Uganda for imports of poultry meat and eggs, there is no import of such commodities from Uganda.

“The CFS has contacted the German, Indian, Japanese and Ugandan authorities over the issues and will closely monitor information issued by the OIE on avian influenza outbreaks in the countries concerned. Appropriate action will be taken in response to the development of the situation,” the spokesman said.

17 Jan

The European Union gives 270 million Rupees to the Republic of Mauritius to improve the business and investment climate

The objective of the project, which will be implemented by the Board of Investment (BOI) over a period of four years, is to enhance Mauritius’ business and investment climate in line with Government priority

PORT LOUIS, Mauritius, January 17, 2017

The Ambassador of the European Union to the Republic of Mauritius, Marjaana Sall and the Minister of Finance and Economic Development, the Honourable Pravind Jugnauth signed a new financing agreement of 270 million rupees to facilitate trade and investment.

The Ambassador of the European Union to the Republic of Mauritius, H.E. Marjaana Sall said: “Today’s event bears testimony to the solid and broad partnership between the European Union and The Republic of Mauritius. Improving the investment and business climate is essential to build competitiveness and is key to economic growth. The EU is keen to support Mauritius in its endeavours to unlock the full potential of the Economic Partnership Agreement.”

The funds will support Mauritius in the implementation of the Economic Partnership Agreement signed between the European Union and 4 ESA countries Mauritius, Madagascar, Seychelles and Zimbabwe.

The objective of the project, which will be implemented by the Board of Investment (BOI) over a period of four years, is to enhance Mauritius’ business and investment climate in line with Government priority.

The EU is keen to support Mauritius in its endeavours to unlock the full potential of the Economic Partnership Agreement

Under this programme, Mauritius will be able to process permit applications through an electronic platform which will be a single point of entry for business permits and licences. The project will facilitate the business and investment environment by reducing the number of business permit applications and the time taken to obtain business licences and permits. This will considerably reduce administrative burdens for businesses and will offer the opportunity for reduced business transaction costs and more efficient allocation of resources.

It will also improve regulatory compliance by businesses through better understanding of the investment requirements and improved accountability.

This modern and efficient practice will not only reduce the time and cost to the private sector, but will improve transparency and decrease possibilities for red-tape and corruption. The project targets all businesses including Small and Medium Enterprises, women and young entrepreneurs. The European Union and the Republic of Mauritius have a longstanding partnership. This partnership covers a wide range of policy areas, including maritime security, environmental protection, climate change mitigation, migration, culture, trade and investment opportunities.

EU support to Mauritius in the area of trade

Mauritius, Madagascar, Seychelles Zimbabwe and the European Union signed an Economic Partnership Agreement in 2009. The agreement has been applied since 2012. EPA is a generous agreement, it is reciprocal and goes beyond conventional free-trade deals. It opens EU markets fully and immediately, imposes no tariffs, no quotas, and allows for long transition periods for partner countries to open up partially to EU imports while providing protection for sensitive sectors. EPAs strive towards bigger regional integration and coherence, they are also ‘development instruments’, comprising the political, economic, social, cultural and environmental aspects of sustainable development. Under the 10th European Development Fund, Mauritius benefited from EU support to the amount of 950,000 euros to implement the agreement. The funds have been used to enhance the capacity at the Mauritius Standards Bureau (MSB) to remove technical barriers to trade and to the Mauritian Revenue Authority (MRA), with the aim to enhance its risk management framework.

The European Union  

The European Union is a unique economic and political union between 28 European countries that together cover much of the continent. Today, the EU has a total population of more than 500 million. Within the EU market, people, goods, services and capital move without any barriers. Euro, which is the single currency adopted by 19 Member States, is used each day by over 300 million people. Main institutions include the European Parliament, the Council of Ministers, and the European Commission. Since the adoption of the Lisbon Treaty in 2009, the EU has a High Representative for Foreign Affairs and Security who heads the European External Action Service. With 139 delegations and offices, the European External Action Service is one of the world’s largest diplomatic services. Ms Federica Mogherini is the EU High Representative of the Union for Foreign Affairs and Security Policy.

16 Jan

Hong Kong bans import of poultry meat and products from Egypt and areas in Poland and Ukraine

The CFS has contacted the Polish, Ukrainian and Egyptian authorities over the issues and will closely monitor information issued by the OIE on avian influenza outbreaks in the countries concerned

HONG KONG, The People’s Republic of China, January 16, 2017

The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department announced today (January 16) that in view of notifications from the World Organisation for Animal Health (OIE) about outbreaks of highly pathogenic H5N8 avian influenza in Egypt and Odessa and Chernovtsy Oblasts in Ukraine, and a notification from the Polish authorities about outbreaks of H5N8 avian influenza in Klodzki and Krakowski Districts in Poland, the CFS has banned the import of poultry meat and products (including poultry eggs) from the above places with immediate effect to protect public health in Hong Kong.
A CFS spokesman said that in the first 11 months of last year, Hong Kong imported about 18 700 tonnes of frozen poultry meat and 4.8 million poultry eggs from Poland. Hong Kong at present has established a protocol with Ukraine for the import of poultry eggs but not for poultry meat. About 2.98 million poultry eggs were imported into Hong Kong from Ukraine in the same period. In addition, as Hong Kong has not established any protocol with Egypt for imports of poultry meat and eggs, there is no import of such commodities from Egypt.

“The CFS has contacted the Polish, Ukrainian and Egyptian authorities over the issues and will closely monitor information issued by the OIE on avian influenza outbreaks in the countries concerned. Appropriate action will be taken in response to the development of the situation,” the spokesman said.