votes Archives - African Financial & Economic Data

Mining Wins as Chile and South Africa Back Pro-Business Leaders

In Chile, the world’s largest copper producer, voters returned billionaire Sebastian Pinera to the country’s presidency, with a promise to reduce corporate taxes and cut red tape. In South Africa — the top producer of platinum and also rich in gold, coal, ferro-chrome, iron ore and other minerals — the ruling party backed Cyril Ramaphosa as its new leader, putting him on a path to replace Jacob Zuma as the country’s president.

The political shifts are good news for the likes of BHP Billiton Ltd., Rio Tinto Group, Glencore Plc and Anglo American Plc, which have billions of dollars tied in mines in South Africa or Chile — and, in some cases, in both nations.

While Pinera made his fortune in banking and an airline, he’s seen as close to the mining industry, and certainly more friendly than President Michelle Bachelet, who raised corporate taxes and empowered labor unions. Pinera has promised to keep some of the reforms of Bachelet, but also make economic growth and attracting investment his priority.

Ramaphosa, a businessman turned politician who will now have to fight national elections in 2019, was once a business partner of commodities giant Glencore, including a joint venture investing in coal. The new leader of the African National Congress, which has won each national election since the end of apartheid in 1994, plans to run on a reformist agenda.

How both politicians would deliver their pro-growth programs is far from clear, however. Hence, it may be premature for miners to cheer. And, in a worse case scenario, their business-friendly programs could backfire into the mining industry if they trigger social unrest.

For Ramaphosa, it would be a difficult balance; before his political and business career, he was a mining union leader. The new ANC head will have to deal with multiple crises, from sovereign debt downgrades and power blackouts to a local mining industry that has virtually thrown the towel in after Zuma pushed ahead with controversial reforms known as the mining charter.

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Paul Kagame re-elected president with 99% of vote in Rwanda election

Former guerrilla leader praised for bringing stability and growth after genocide but criticised as authoritarian wins third term.

Paul Kagame, the controversial president of Rwanda, has won a landslide victory in the small African state’s election, securing a third term in office and extending his 17 years in power.

The result will surprise no one, inside or outside Rwanda.

Kagame, 59, has won international praise for the stability and economic development he has brought Rwanda since the 1994 genocide, when an estimated 800,000 people were killed, but he has also been accused of running an authoritarian, one-party state. Some have dismissed the polls as a sham.

Friday’s election came after a constitutional amendment, which ended a two-term limit for presidents and theoretically permits Kagame to remain in power until 2034. The amendment was approved by 98% of voters.

In the final tally for Friday’s election, he won almost 99% of votes cast, said Kalisa Mbanda, chairman of the National Electoral Commission.

The board expects turnout in the east African country of 12 million people to have topped 90% in an election that fielded only a single opposition candidate, Frank Habineza, and an independent.

Habineza, a former journalist who leads the Green Democratic party, said last week the authorities in Rwanda were “starting to understand the opposition can play a role in running the country”.

“We are still treated as if we are enemies … but so far in this election no one in our party has been killed or imprisoned or harassed and that means at least some progress,” he said before a rally in the small southern town of Rango.

The election board disqualified another would-be opponent, Diane Rwigara, despite her insistence that she met all the requirements to run.

After results were announced, Kagame said he would work to sustain economic growth. Infant mortality and poverty levels have dropped rapidly in Rwanda in recent decades, while literacy rates and other indicators of development have soared. New roads have been built and an ambitious programme of investment launched. Kigali is perhaps the cleanest and most orderly African capital city.

“This is another seven years to take care of issues that affect Rwandans and ensure that we become real Rwandans who are [economically] developing,” he said in a speech broadcast live on television.

Kagame led rebel forces into Rwanda to end the 1994 genocide and went on to wage further wars in the region. He won the last election in 2010 with 93% of the vote, and said during this campaign that he again expected an outright victory.

Despite some discontent over joblessness and other issues, the president appears authentically popular in Rwanda, which has had some of the fastest economic growth rates in Africa and has become known for its stability in a deeply troubled region.

At a succession of rallies attended by large numbers of supporters from the ruling Rwandan Patriotic Front party, Kagame promised more schools, roads and clinics. Supporters at a rally in Burera in the north of the landlocked country said last week that they could not imagine another leader.

Reuters reported that voters celebrated the election result into the early hours of Saturday.

“Last night was fantastic. People kept coming in until my bar had more than 200 people. I usually get 100 on normal days. They were all celebrating and I left at 2am, but they were still dancing and more were coming,” said John Habimana, owner of the popular Roasty Bar in Kigali.

Other residents were less happy, the agency said. “To me I see this as a one-man race. I simply did not go to vote,” said one man in the capital who asked not to be named.

via The Guardian