Luanda — The World Bank will release USD 230 million for the country’s agricultural and commercial projects in the context of economic diversification.

The information was released on Friday by the World Bank’s representative in Angola, Clara de Sousa, at the end of a debate on “mechanisms to access international financing lines” in the framework of the 49th edition of First Friday Club.

This event is promoted on the first Fridays of each month by the United States – Angola Chamber of Commerce (USACC).

According to her, World Bank loans are granted through the state, which later direct the funds to business institutions and entrepreneurs who submit viable projects.

On his turn, the representative of the African Development Bank (AfDB), Martin Septime, announced that the institution has several ongoing projects with the initial value of USD 1.6 billion for funding.

Among the projects, he highlighted the projects of the productive sector, such as in the fields of energy, water and sanitation, artisanal fishing, environment and institutional capacity building.

He also said that the AfDB has the mission to promote the sustainable economic development of its member countries and since 2011 it has opened an office in Angola that has facilitated relations with the Angolan government.

In turn, the executive director of the USACC in Angola, Pedro Godinho, said that it is important that companies are more daring and able to discover sources of international financing.

“Currently to get a financing from the local banks is much more expensive and difficult due to the crisis due to the drop in the price of oil in the international market”, he said.

To the US ambassador to Angola, Helen La Lime praised the event that aimed to raise awareness of the mechanisms for accessing international financing lines.

Helen La Lime called for greater dissemination of programmes to support the various sectors of the country.

PRESS RELEASE

Department of Agriculture, Forestry and Fisheries provides much needed drought relief assistance

South Africa is battling the worst drought since 1992 which has led to seven provinces (Free State, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape and Eastern Cape) declaring a provincial state of drought disaster. The Western Cape Province has declared a local state of disaster in three municipalities (Central Karoo, Eden and the West Coast). The Gauteng Province is the only province that has not yet declared a state of drought disaster.

In responding to the situation, the Department of Agriculture, Forestry and Fisheries (DAFF) and the Provincial Departments of Agriculture (PDA). In the 2015/2016 financial year that ended on 31 March 2016, allocated R263 million towards drought relief through reprioritising the Comprehensive Agricultural Support Programme (CASP); while provinces have made R198 million available through their equitable share funding. These funds were utilised to assist affected farmers with animal feed and water reticulation for livestock.

For the 2016/2017 financial year, the DAFF further requested for drought relief assistance from the National Treasury through the National Disaster Management Centre, of which R212 million has been made available for the provision of animal feed for the remaining three months of 2016 (October, November and December 2016).

The drought’s devastating effects are quite palpable and pose a risk of social upheavals. While some parts of the country are experiencing some rain, the country in its entirety is receiving below average rainfall as compared to previous seasons due to the El Nino phenomenon. Most rivers are not flowing normally and dam levels are at their lowest in a decade.

DAFF is committed to engaging and providing the necessary support to farmers during this difficult period of drought.

Issued by: Department of Agriculture, Forestry and Fisheries

By Elita Chikwati

Government has suspended import duty on Semi-Knocked Down (SKD) kits for single and double cab trucks imported by approved local car assemblers. These regulations will be for a period of three years, a move likely to bring down the price of locally assembled light trucks.”It is hereby notified that the Minister of Finance and Economic Development has in terms of Section 235 as read with Section 120 of the Customs and Excise Act [Chapter 23:02] made the following regulations.

“Customs duty is suspended on SKD single and double cab motor vehicle kits imported by approved assemblers in terms of these regulations,” reads a notice in yesterday’s Government Gazette.

According to the regulations, an assembler means any person who is registered as an assembler of single and double-cab motor vehicles in terms of Section 6.

Semi-knocked down single and double cab motor vehicle kits mean assembly kits for motor vehicles described under tariff code 8704.2120, 8704.2130, 8704.2140., 8704.3120,8704. 3130, 8704.3140 being imported by an approved assembler entirely for completion of the process of assembling single and double cab motor vehicles.

“Subject to these regulations, a suspension of duty shall be granted on SKD single and double cab motor vehicle kits imported or taken out of bond by an assembler for use in the assembly of single and double cab motor vehicles.

“No suspension of duty shall be granted on built-up single and double cab motor vehicle bodies,” reads the Gazette.

According to the Statutory Instrument, the approved assembler shall import the SKD single and double cab motor vehicle kits at a rate of duty of 10 percent ad valorem.

The major assemblers of single and double cabs on the local market are Quest Motors in Mutare, and Harare’s Willowvale Madza Motor Industries (WMMI)..

By Kwame Dankwah

Ghana has more arable land than most Western European countries yet we import agricultural products from these countries. That’s according to the General Agriculture Workers Union.

Despite the fact that agriculture contributes about 34 per cent of the Gross Domestic Product of most African countries’ economies, and shoulders the greatest part of the labour force, it is always inexplicably maligned.

A lot has been said about Ghana’s economy and the need to boost agricultural production to feed the nation, provide jobs for our people, reduce poverty and enhance the nutritional needs of our people.

However the general secretary of the General Agriculture Workers Union, Edward Kareweh has raised concerns about the need for government to put in place subsidies to enhance food production and security in the country.

According to him, it is incumbent on governments not to only provide enough financing for agricultural activities and lay down proper policies in the disbursement of these monies, but also to directly move in to help the farmer at the grassroots with subsidized seeds, fertilizers, pesticides, storage facilities, transport, machinery, and other services that will raise agricultural productivity, and render it more worthwhile both to the farmers and their governments.

He is therefore urging government to provide subsidies for agriculture. This, he argues, will increase the sector’s investment opportunities, which will then stimulate productivity.

“Nothing can be truer than this. It is now the trend the world over for governments to give subsidies to farmers to increase output”.

He also added that it is not enough for the government to expect commercial banks to fill the gap, as these institutions have their business interests to look after and will not invest in agricultural activities that might threaten their investments.

Edward concluded by calling on government to help create ready market for agricultural product to prevent post harvest losses.

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ANALYSIS

Tanzanian President John Pombe Magufuli has finally made his maiden visit to Kenya, only his third official state visit to a foreign country since he took office a year ago. All his previous visits were short trips to neighbouring countries Rwanda, twice, and Uganda.

That all his engagements have been within the East African Community seems to underline a foreign policy shift re-positioning Tanzania as a leading regional actor. His predecessor, President Jakaya Kikwete, was less enthusiastic about regional integration. Tanzania’s apparent aloofness under Kikwete gave rise to the formation of a so-called “coalition of the willing”. This saw Kenya, Uganda and Rwanda acting together to fast track regional development projects.

Magufuli’s visit to Kenya is therefore being seen as as an attempt to reaffirm Tanzania’s place within the East African Community. Just as importantly, it is also being seen as an attempt to reset bilateral relations with Kenya which, at best, have been lukewarm under his watch.

The talks between Kenyan President Uhuru Kenyatta and Magufuli appear designed to put to one side their perceived personal and ideological differences. This will not only have an impact on the two countries but also regional integration efforts.

Tetchy times

Relations got off to a rocky start early in Magufuli’s term when he disrupted Kenya’s stewardship role in the “coalition of the willing”. He did so by working with Uganda’s President Yoweri Museveni to re-route Uganda’s planned oil pipeline through Tanzania after Kenyaappeared to have secured it.

The celebrations that followed in Dar es Salaam were matched in their intensity only by the bitterness felt in Nairobi. Many commentators felt that the move undermined Kenya’s economic plans which were partly hinged on the large scale regional infrastructural projects. These also included the expansion of ports and a brand new standard gauge railway.

Diplomatic relations were brought to boiling point during negotiations to finalise a trade deal between the European Union and the East Africa Community. Kenya signed the final agreement but Tanzania flatly refused citing national interest. Many in the Kenyan government and the business sector saw this as an attempt to undermine Kenya’s economic growth and development

“Winner takes all” mentality

For a start, both countries need to avoid the “winner takes all” mentality that has defined competition between them for regional trade and infrastructure projects.

For instance, after Magufuli’s visits to Rwanda and Uganda, both countries agreed to drop earlier plans of a joint railway with Kenya connecting them to Mombasa. Instead they agreed to work with Tanzania on a railway line connecting to Tanzania’s port city of Dar as Salaam.

Another project to come out of the “coalition of the willing” was a Uganda oil pipeline that would pass through Kenya to Lamu. After intense diplomatic lobbying by Tanzania, Uganda opted to pump its crude exports to the small port of Tanga north of Dar es Salaam.

Mistrust between the two countries has also revolved around bilateral and regional trade negotiations and agreements. At the bilateral level,Kenya has regularly complained about non-tariff barriers on its exports to Tanzania. It has also accused Tanzanian officials of being complicit in the mistreatment of Kenyan business owners through punitive measures such as cancellation of work permits.

In return Kenya has at times reciprocated with debilitating consequences. An example was Nairobi’s decision to bar Tanzanian tour vans from accessing Jomo Kenyatta airport.

Towards a common agenda

Magufuli’s grand posturing has positioned Tanzania as an alternative regional economic powerhouse. This has been seen by some in Kenya as a threat to Kenya’s traditional geostrategic advantage as the gateway to the region.

The result has been Kenya’s attempts to strengthen its trade and diplomatic engagements with its northern neighbours. Just hours before Magufuli’s visit, President Kenyatta was in Sudan on an official trip in what was seen as an effort to strengthen bilateral trade agreements. Diplomatic and trade ties have also been stepped up with Ethiopia and South Sudan.

The strained relationship is unproductive and unnecessary given the significant trade relations between the two countries. This is explained by the fact that Tanzania is currently one of Kenya’s largest export markets within the region. For its part Tanzania relies heavily on Kenyan industries and businesses companies for foreign investments. These provide revenue and employment opportunities as was reiterated by Magufuli during his two day state visit.

In addition to close trade relations, both countries are also partners within the common East Africa Community market, with a set of economic growth and development policies as their priorities. It would therefore be expected that they should jointly try and create a conducive environment for regional and foreign investment.

The two countries should take a common stand in pushing to end the political instability in Burundi and South Sudan. Both are East Africa Community member states. They should also cooperate on strengthening regional trade agreements to ensure sharing of regional public goods. These include the European Union Economic Partnership Agreement with the regional common market countries.

Closer cooperation between Kenya and Tanzania will have two major likely outcomes. The first is bringing to an end divisions among East Africa Community members. The second is to invigorate collective efforts aimed at deepening integration as well as the protection of common interests.

The first example of this is the decision by Tanzania and other regional member states to endorse the candidature of Amina Mohamed for the African Union chairperson.

The renewed commitment to speed up a planned joint commission between Kenya and Tanzania is another. This forum is expected to formulate future areas of cooperation between the two states. It would also provide a framework for avoiding diplomatic tensions that have at times characterised relations between the two countries.

Disclosure statement

Sekou Toure Otondi does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

ANALYSISBy Maka Angola

Employees at the Angolan oil giant have flushed out some startling news about Sonangol’s continued decline. Since President José Eduardo dos Santos put his daughter, Isabel (Africa’s first female billionaire), in charge the oil giant’s fortunes “are in the toilet”.

At the company’s headquarters, in a custom luxury US $400 million building, in which over-invoicing reached hallucinatory levels, officials are confronted with a stark reality. Apparently, Angola’s most important enterprise can’t afford to supply its own washrooms.

“Every worker has to bring their own toilet paper from home because Sonangol has been unable to pay its suppliers and we have a toilet paper crisis,” one official resignedly told Maka Angola.

Staff fear they’ll become the butt of jokes. They say the situation is out of hand. Only the denizens of the 18th, 19th and 20th floors – where Isabel and her coterie of expatriate ‘consultants’ have their dens – are spared the embarrassment.

Sonangol has been the primary support for the regime of President José Eduardo dos Santos and the mono-product economy of a state wholly dependent on oil. Angola rivals Nigeria as Africa’s largest oil-producing nation. You would think, that even with the plummeting price of crude, there’d be enough loose change to ensure their employees can wipe their backsides.

“It’s really hard. We are totally out of it. Is it a strategy to force a switch of suppliers? Surely it can’t be a lack of money?” says our source (who for obvious reasons wishes their identity to remain concealed).

“The former administration ‘ate’ well. Now I suppose it’s the turn of the new administration.”

Smarting from the humiliation of being denied the wherewithal to clean up, a group of Sonangol employees has been using the Whatsapp social media platform to discuss the mess. The group named itself “There is no toilet paper” and is using the site to examine the company’s state of health, with at least one wag noting drily: “there isn’t enough toilet paper in the whole country to wipe the regime’s arse clean.”

By Habel Chidawali

Dodoma — The government on Thursday failed to say exactly when the General Tyre factory that was closed in 2009 will resume operations. The minister for Trade, Industries and Investments Charles Mwijage told the Parliament that the government still acknowledges the importance of the factory, which is located in Arusha, but he could not say when it would resume production.

The Member of Parliament for Arusha Urban Godbless Lema (Chadema) had asked a question wanting to know when the government would fulfil its promise of re-opening the factory. Mr Lema whose question was asked on his behalf by Cecilia Paresso (Chadema-Special seats) also wanted to know the fate of hundreds of workers who have not been paid salary arrears.

The factory was closed in after serious operational problems caused by loss-making and a mounting debts. By the time it was shut down in 2009, the government, which is the main shareholder (74 per cent), was feuding with the minor shareholder, Continental AG, which has had 26 per cent ownership. In August 2015 the government acquired 100 per cent shares in the factory after buying back the shares in an undisclosed amount.

The closure of the factory left about 400 workers stranded and a $20 million (Sh42 billion) debt.

Responding to Mr Lema’s question the minister said all workers who have not been paid salaries should forward their claims to the Treasury.

The General Tyre was established in 1969 as a joint venture capacity with an annual production capacity of 320000 tyres. It started operation in 1971. It changed ownership several times before the German-based Continental AG company came in.

The National Development Corporation, which holds the General Tyre shares on behalf of the government, is said to be looking for a potential strategic investor or consortium of investors to partner and revive and resume tyres manufacturing operations at the factory.

“The partnership would also include including carry out plant expansion. The partner will be required to come up with the Tyre Brand that has an international,” a document prepared by NDC says.

Naama — A solar power plant has been commissioned Tuesday in the locality of Sedret-Leghzal (west of Naama), as part of the festivities marking the 62nd anniversary of the outbreak of the Liberation War of 1 November 1954.

The 20 MW solar plant, which was commissioned by the province’s authorities, comes under the Electricity and Renewable Energy Company.

The new solar plant, part of the ambitious National Renewable Energy Development Programme, will contribute to the strengthening of the national electricity production network.

Stretching over 40 hectares, the DZD4-billion solar plant was built by a German firm and it is expected to generate 40 permanent jobs.

By Collins Mwai

Rwanda has officially become part of a global universal energy initiative, dubbed “Sustainable Energy For All,” a United Nations-led initiative geared toward actions and commitments to positively transform the world’s energy systems.

The decision was made, yesterday, during the third annual iPAD Rwanda Energy Infrastructure Forum in Kigali.

The initiative was launched globally in 2012 by outgoing UN Secretary-General Ban Ki Moon in recognition of the growing importance of energy for economic development and climate change mitigation.

At the local level, the initiative aims at scaling up access to energy, promoting the use of clean cooking technologies, increasing use of renewable sources of energy for electricity production as well as efficient use of energy.

Giving highlights of the initiative’s implementation, Robert Nyamvumba, the energy division manager at the Ministry of Infrastructure, said, by implementing the global initiative, Rwanda would seek to address issues in gender, health and energy access.

He said its implementation is also in line with the national rural electrification strategy that was approved by Cabinet this year.

The initiative will attempt to address the high dependence on biomass fuels in the country and reduce from the current 85 per cent use to about 50 per cent by 2020 while the target is under 30 per cent by 2030, Nyamvumba added.

This will largely lead to the promotion of clean cooking technologies which are increasingly cheaper due to tax reliefs.

According to the Minister for Infrastructure, James Musoni, the Government will promote the use of liquefied petroleum gas, which is currently cheaper than charcoal.

“Gas use is already cheaper than use of charcoal though most people are unaware. Going forward, we will seek ways to have it in more different sizes and packages of cylinders to make it affordable for more people as well as improved cooking stoves,” the minister said.

On electricity generation and production, Nyamvumba reiterated that they aim at increasing production by 2018 as well as step up contribution of renewable energy such as geothermal and solar through off grid and mini grid.

The share that is non-renewable will be from peat and methane gas with the two constituting around 30 per cent.

“On energy efficiency, we want to reduce energy losses and step up efficient use through measures such as energy reduction lamps as well as address concern such as aspects of indoor pollution from cooking,” he said.

Rwanda has an electricity penetration rate of about 27 per cent with grid solutions contributing a majority of 25 per cent, while non-grid solutions contribute 2 per cent.

With the government targetting 563 megawatts by 2018, the country is currently generating about 190 megawatts.

Rwanda Energy Group chief executive Jean Bosco Mugiraneza said the agency targets to reach 70 per cent of the population and 100 per cent of government institutions by 2018.

This, he said, creates a huge room for private public partnership to boost local capacities and make necessary investments towards the ambitions.

Mugiraneza added that they plan to continue working with off-grid power solutions to continuously ensure access to power.

Already, there are more than 10 players in the off-grid power solutions provision operating in the country.

Kipyego Cheluget, the assistant secretary-general for the Common Market for Eastern and Southern Africa, said Rwanda is likely to achieve the targets given the huge resource allocations by the government to the sector, the existing policies to attract investments as well as participation in regional integration initiatives.

The Nigerian Senate should approve President Muhammadu Buhari’s request for authorisation to borrow $30 billion (about N9.61 trillion), and should do so quickly, the Director General, Debt Management Office, Abraham Nwankwo, has said.

The Senate turned down the president’s request on Tuesday, asking for all relevant documents to be submitted.

But, Mr. Nwankwo, who spoke on a Channels TV guest programme, said the loan was so important and the government needed to take advantage of the soft terms of the loans covering three years, to help address the huge infrastructure deficit in the country.

The DG said the $30 billion was actually for a three year-period, running from 2016 to 2018, to be repaid in 20-30 years’ time.

With this arrangement, he said it would not be difficult for the country to repay.

Although the DMO boss said he had earlier advised the Federal Government not to exceed $22 billion limit in its loans from 2017, he said the $30 billion was comparatively lower.

“When you are in the kind of economic situation the country has found itself, you have to decide where you want to start addressing the problem. The most critical point to start is to deal with infrastructure problem.

“If you deal with infrastructure problem, the cost of power, transportation and most other goods and services will be forced down on the long run. The development will have a significant impact on the price level in the economy,” he said.

Highlighting some of the other attractive components of the proposed loans, Mr. Nwankwo said that the low concessionary interest rate, at about 1.5 per cent, was different from previous loan arrangements (under previous administrations) with the Paris Club of creditors, which came with floating interest rates as high as 18 per cent.

In his request to the National Assembly, President Buhari had said the loans, which also include a $575 million World Bank facility, would be for projects cutting across key sectors of the economy.

On how the $30 billion would be spent, Mr. Nwankwo said $10 billion would be spent per annum for three years, targeted at building infrastructure in all states of the federation, with the main focus on power generation, rail and road renovation and construction.

The projects, with special emphasis on infrastructure development, were in the agriculture, health, education, water supply sectors as well as those to facilitate growth in the economy and employment generation, poverty reduction through social safety net programmes and governance and financial management reforms.

Mr. Nwankwo also said that the facility would help revive strategic infrastructure like railways, to smoothen movement of heavy goods across the country.

With adequate infrastructure, he said the impact on the economy would be felt by all Nigerians, as the general price level (the consumer price index measuring price level and the rate of inflation) would be brought down.

“The way to go is to have adequate infrastructure, power road, transportation ICT. All these would make the cost of production in the economy much lower, while the cost of goods and services will be lower and inflation forced down. When inflation is down, monetary policy rate will be lower, translating to a lower lending rate,” Mr. Nwankwo explained.