Year: 2016

Ethiopia: Expansion of Industrial Parks to Flourish Textile Sector

In the second Growth and Transformation Plan, the country is working tirelessly to boost various industries that support the journey to industrialization

For several years, a lot of cloths that are usually displayed in a number of textile shops are mostly imported products. They are often transported into the country on the expense of huge amount of money. Unlike the previous trend, it seems that Ethiopia has become aware of the existing potential that enables it to produce the products on its own instead of simply producing them. Realizing the benefits, the nation has begun investing in the textile industry.

Accordingly, in the second Growth and Transformation Plan, the country is working tirelessly to boost various industries that support the journey to industrialization. The country's suitable climate is also very supportive for animal fiber and cotton production which are believed to be significant ingredients in the textile industry. On the other hand, the plenty of young human resource will assist every engagement in the sector.
 

The nation's commitment to encompass industrial villages seems to be appropriate decision. Recently, in addition to the Bole Industry Village, similar industry village has been marked in Hawassa. Furthermore, simultaneously the construction of extra industrial villages (parks) is underway throughout the country.

Hawassa Industrial Park (HIP) construction has costed more than 5 billion Birr. The expansion of such huge industrial park is the indication of the nation's progress to the industrialization. Since the nation has high potential in the sector, the nation has big chance to meet the demands of various customers. Development in the sector also necessitates the importation of modern technological equipment and transfer of knowledge so as to strengthen the production and productivity. Moreover it paves the way for experience sharing and training from the world textile partners. However, if the country could not compete on the world market, it would be a great loss. Because competing on the international market is not a preference rather it is an obligation, according to Fasil Tadesse, Managing Director of Kebire Enterprise and African Cotton, Garment and Textiles Federation Board and Ethiopian Textile Industries Associations President.

According to him, expanding industry villages has a number of benefits including attracting various companies, involving competent national organizations and accelerating the sector's business throughout the country and the world. Nowadays, the nation is on the right track through direct foreign exchange. The world giant garment industry companies are coming to Ethiopia. Therefore, the coming of these companies might be followed by other small but critical companies that are producing string, button and other similar bolstering textile materials. This could help the nation to reduce the import cost by producing these materials at home.

On the other hand, the situation facilitates the opportunity for technological transformation. Indigenous garment fabrics will share important experience from their foreign business partners. The training opportunity will also be managed. Other foreign based Ethiopian garment industries also will come back to use the opportunity. This shows the significance of the expansion of industrial zones.

Fasil believes that simply constructing industrial villages could not be a change, it needs the involvement of sector factories and companies. Especially, the participation of indigenous textile companies will play a significant role in building nation's capacity through enabling national producers to look for their nation brand.

On the other hand, the participation of the indigenous factories is important scheme to safe the sector from the influence of fluctuation of foreign companies. Here, the role of the government is vital to encourage national companies to engage in the sphere whether the foreign companies are engaged or not.

Noticing the experience of Bangladesh's textile firm, Fasil explained that over 80 percent of companies in the Bangladesh textile industry village are national companies. These could be happen for the reason that their government has been making notable encouragements for national companies by facilitating financial and material subsidies. It also provided useful training for the companies. Ethiopian government should learn from this. Fasil also noticed that in Ethiopia there are two main problems in the garment industry sphere. The first one is that most of the individuals who have the training and knowledge of the sector have no the capital to spent for it. Contrary to this, those who have not the understanding and educational background owned the capital. Moreover, the main problem is lack of mediation to coordinate these crucial business partners to work together so that they would be profitable in the textile industry.

The government should also facilitate the assistance of finance to the middle capital industries. On the other hand, the joining of foreign companies in the Ethiopian textile industry will be the bolstering companion to the indigenous companies. The expansion of industry villages is one of the most significant measure in the development of the sector. The accumulation of these measurements may reduce the problems related to the textile sector.

"The other problem in the Ethiopian textile industry is lower capacity of native factories and companies on investment. Therefore, to reduce such chains of problems the Ethiopian Textiles Industries Association is doing its level best through building the capacity of native companies and enabling them to be competent on market. It is also facilitating market opportunities," Fasil stated. The association is also working with stakeholders to address problems that are need the support of the government and other partners, he added.

The association is incorporated of over 80 native and foreign textile private owners and these companies could create over 60 thousand jobs nationwide. Last year, the textile factories have availed some 200 million USD of foreign exchange to the nation. However, this year this number decreased to only 100 million dollar. As it is clearly illustrated in the aforementioned statements the main problem is lack of capital, trained man power and management systems. Therefore, so as to manage the problem and ensure the country's gain from the sector, all stakeholders should work together; the government also need to make a continuous monitoring work beside the infrastructural development and expansion of industrial zones.

Nigeria: CBN Bars Nine Banks From Forex Transactions

The Central Bank of Nigeria has barred nine deposit money banks from all foreign exchange transactions and operations, pending the remittance of $2.12 billion dollars belonging to the Nigeria National Petroleum Corporations to the Treasury Single Account. Sources confirmed to Daily Trust that the nine banks comprise of three tier-one lenders and another six tier-two deposit money banks.

The affected banks are: Diamond Bank, First Bank of Nigeria, First City Monument Bank, Fidelity Bank, Heritage Bank, Keystone Bank, Sky Bank, Sterling Bank and United Bank for Africa.

“The affected banks remain barred from foreign exchange operations until they fully remit the NNPC funds into government coffers via the Treasury Single Account,” a source in the apex bank said.

When contacted, the spokesperson of the NNPC Mallam Garba Deen Muhammed told Daily Trust yesterday that when the corporation informed the presidency on the non-remittance of the fund to the TSA by the banks.

Meanwhile the United Bank for Africa (UBA), in a statement from its Head, Corporate Communications, Charles Aigbe, said that it has completely remitted all NNPC/NLNG dollar deposits to TSA.

Botswana: Abi Commends Benevolent Debswana

Lotlhakane East — Permanent Secretary in the Ministry of Minerals, Energy and Water Resources, Mr Kgomotso Abi, has commended Debswana for the spirit of benevolence.

Mr Abi said this when officially opening Olorato Children Care Centre and English medium, which was donated by Debswana in Lotlhakane East on August 18.

He reminded the community that the gesture by the mining company was not enough and implored residents to come on board and assist in children welfare.

Olorato Children Care Centre and English Medium board chairman, Ms Gloria Ramogola said the school aimed at accommodating orphans and vulnerable children.

She therefore called on residents to enrol many children at the centre; something she said would help the school raise the much needed finance for the day to day running of the school.

According to Ms Ramogola, the school, which has a capacity of 97 children, was built by Debswana mines with a budget of 1.3 million.

The American embassy also donated the furniture worth over P90 000 to the school.

For his part, Kanye South MP, Mr Abram Kesupile thanked all who contributed towards the success of the project.

Tanzania: NHC Rolls Out Big Dodoma Housing Plan

Civil servants and employees from the private sector have been assured of adequate accommodation in the designated administrative city of Dodoma, as the National Housing Corporation (NHC) seeks to raise 60bn/- to put up between 300 and 500 houses in the capital.

Even with the envisaged development in Dodoma, the corporation maintained that it will continue undertaking projects in Dar es Salaam, given its strategic location, commercial influence and the fact that 70 per cent of NHC’s property are in the commercial city.

NHC Director General, Mr Nehemiah Mchechu, said the corporation has so far acquired 236 acres of land at Iyumbu area,

adjacent to the University of Dodoma (UDOM), where it plans to establish a satellite centre. “In the first phase, we plan to build between 300 and 500 houses in the next twelve months. Apart from Iyumba we also have plots in Chamwino, Bahi and Chemba,” Mr Mchechu told a press conference in Dar es Salaam yesterday.

According to the DG, the stateowned real estate developer aims to raise 15bn/- from the sale of 97 units at Medeli Housing Estate in Dodoma and an additional 30bn/- from the sale of plots at its satellite centres across the country such as Safari City in Arusha and Kawe in Dar es Salaam.

“We have a total of 153 units at Medeli, out of which 97 are leased while the rest were sold out. Tenants occupying the 97 units will be given first priority in the sale but if they fail the houses will be sold to other Tanzanians,” he stated.

The NHC as well seeks to raise 15bn/- in outstanding rent fee by tenants in Dar es Salaam, while the funds will be channelled to the housing projects in Dodoma, he explained.

Mr Mchechu mentioned other possible sources of financing as loans from financial institutions and engagement of local and foreign investors. The construction industry currently contributes 24 per cent to the Gross Domestic Product (GDP), but Mr Mchechu was optimistic that the development of the designated capital will boost the industry’s contribution to 30 per cent.

“More still, as the country faces a shortage of 3.5 million housing units, with the demand increasing at an average of 200,000 units per annum, we hope the housing projects in Dodoma will help to ease the shortage,” Mr Mchechu noted.

The NHC boss was as well positive that the development of Dodoma will create more jobs, attract new investments, increase government revenues and eventually boost the economy.

President John Magufuli has lately stressed that he will make sure that the long dream of the founding Father of Tanzania, the late Mwalimu Julius Nyerere, of transferring the capital city from Dar es Salaam to Dodoma is fulfilled before 2020.

Since then, the Prime Minister, Mr Kassim Majaliwa, said he will be the first to have his office transferred to Dodoma next month and instructed cabinet ministers to follow suit.

South African Academics Ask Zuma to ‘Stop the War’ On Finance Minister

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South Africa’s minister of finance Pravin Gordhan is again on a collision course with the country’s Directorate for Priority Crime Investigations. The row has unsettled the country’s already shaky currency, the rand. It’s also prompted a group of senior academics from nine universities to pen an open letter. The letter, which first appeared on local news site the Rand Daily Mail, is republished below.

“In December 2015 the shocking decision by President Jacob Zuma to fire Finance Minister Nhlanhla Nene led about 70 senior academic economists from across South African universities to write an open letter to the Business Day to express our outrage at the capriciousness of that decision. We also warned of the likely consequences for the country’s fragile economy.

That that decision was politically motivated has been borne out by subsequent events. Significantly, Mr Nene’s redeployment to the Brics Bank, ostensibly the reason for his removal, has not materialised. The President continues to use every platform to sing the praises of the little known backbencher he appointed in Nene’s place. He also frequently expresses bitterness at the role of (so called) white monopoly capitalists whom he claims forced a reversal of his decision to appoint Desmond van Rooyen.
At the time and in the circumstances, some commentators thought that the new Minister Pravin Gordhan would be safe from similar politically motivated attacks. How wrong they were. Since earlier this year, Minister Gordhan has been subjected to an unrelenting attack from the Hawks. They have been investigating the Minister’s alleged role in the establishment of the so-called “rogue” spy unit when he was the South African Revenue Services’ (SARS) Commissioner. A few days ago the Daily Maverick reported that the Hawks were “circling” the Minister again.

These events have once again compelled us to put pen to paper to express our outrage and warn of the dangers to our still very fragile economy. There are predictions of zero growth in 2016; stubbornly high unemployment; persistent poverty and inequality and a volatile currency. This is not the time – if there ever was – to be playing such dangerous games with the lives and well-being of all sectors of our economy and society, especially the poor and the vulnerable.

We say all this with the same qualifiers we employed in our December 2015 letter. These include our recognition that Ministers of Finance do not enjoy any special privileges or protection. Everyone is subject to the rule of law and the Constitution. Finally, our stance does not mean that all of us share with equal enthusiasm the Treasury and government’s fiscal framework.

We urge the President, the Cabinet and the African National Congress’ National Executive Committee (NEC) to assist in bringing this dangerous set of events to an end in the best way possible in the interests of our country and our economy. It is time for real leaders in the NEC, the Cabinet and in governing alliance partners the SA Communist Party and the Congress of South African Trade Unions to stand up to the tyrannical and despotic behaviour on display here. Yet again we stand on the edge of an economic precipice.

We end expressing by similar sentiments to those used in our December 2015 letter: As senior academics in Economics and related disciplines we express our unambiguous and urgent concern both about these events in general, about the unseemly attacks on the Minister of Finance and about the general lack of progress in tackling the massive and growing crisis of low growth, poverty, unemployment and inequality as well as the crisis of governance at our state owned enterprises.”

Ethiopia: East Africa Metals Requests Gold Mining License

East African Metals, a Canadian mine development company with an interest in exploration projects, has requested a license from the Ministry of Mines, Petroleum & Natural Gas, to start the large scale extraction of gold and silver in Ethiopia.

The company has submitted its application to produce the minerals, in Tigray regional state, Terakimti locality.

The company has been active in the exploration of gold in Ethiopia since 2011. East Africa owns 70pc of the Harvest Tigrai Gold project, near Shire town, 1,065km north of the capital. Back then, the company discovered 17,000 ounces of gold and 812,000 ounces of silver.

East announced on August 11, 2016, that the total amount of mineral resources in the licensed area is estimated to be 1.12 million tonnes.

A local company hired by East, Beles Engineering plc, has already completed its environmental impact and socio-economic assessment study for the project.

As far as gold mining is concerned, MIDROC is the only company involved in the sector on a large scale. It extracts gold in the Oromia region, at the Legedembi Gold Mine. Moreover, two companies, KEFI Minerals and Ezana Mining, have a large scale gold mining license.

The Ministry is now reviewing the application by the mining company.

Botswana: Expedite India-Africa Diamond Institute – Minister

Visiting Indian Minister of Tribal Affairs Shri Jual Oram has called on Botswana and Indian government to work together to implement the project for establishment of India-Africa Diamond Institute. Speaking at the reception hosted by the Indian Commission Oram said that the early establishment of the IADI will be mutually beneficial to Botswana and India with Botswana now being the Diamond Hub. Indian Diamond Institute (IDI) is all set to support the government of Botswana in setting up a state-of-the-art diamond institute in the country

According to the IDI, the courses to be taught at the institute in Botswana would include diamond cutting, polishing and grading along with jewellery manufacturing. A team from India will be in Botswana for three months to provide training to the professionals. Another area which Botswana can benefit from India, according to Minister Oram, is in the area of solar energy. "There is great potential for bilateral cooperation in the solar energy sector, with International Solar Alliance in place," he said, adding that India has skills and resources which can be beneficial to Botswana.

Nigeria: Oil Exploration in Benue Trough

President Muhammadu Buhari’s mandate to the Nigerian National Petroleum Corporation (NNPC) to commence the search for crude oil in the Benue Trough is a welcome development. The Group Managing Director of the NNPC, Mr. Maikaniti Baru, who disclosed this recently, said the president’s directive came days after a similar assignment was given to the NNPC to intensify crude oil exploration in the Chad Basin. On their part, northern state governors have already hired a British firm through the Northern Nigeria Development Company (NNDC) to embark on oil exploration activities.

We note that over the years, geologists and experts in the oil and gas industry have raised the hypothesis that there could be crude oil in commercial quantities in that geographical space. They claimed that hydrocarbon deposits are believed to be heavily present in the Lake Chad Basin and the Benue Trough, but this has been treated with complacency by successive governments.

Benue Trough comprises the states in the Central and North-Eastern parts of Nigeria, among them Kogi, Gombe, Adamawa, Bauchi, Benue, Plateau, Gombe and even parts of Anambra States. In 2012 Professor Agbaji Ogezi, who headed a research team on mineral resources in Benue Trough, had argued that “[from] a comprehensive review of the literature, results of preliminary on-going integrated remote sensing, geological and exploration studies and comparison with other related basins within the WCARS (West and Central Africa Rift System) suggest that the Benue Trough may be a favourably area for oil and gas, as well as for strata-bound and structurally-controlled mineral deposits. With respect to petroleum, there are good prospects, especially in the formations which are thicker and structurally and stratigraphically-related to the Niger Delta as well as to the Chad/Borno, Niger, Sudan and Cameroon basins within the same trend.” It is good that this is being followed up by this administration.
As the NNPC launches into this project, we are of the opinion that political considerations should be clearly separated in order to allow for purely economic and technical expediency to govern the process of the exploration. It will not be wise economically for the country to go into oil exploration unless it is very clear that the oil deposits in the Benue Trough are in commercial quantities. It is not enough to launch into such an expensive project as a desperate scheme to signal to militants in the Niger Delta that there is an alternative to the oil and gas deposits in that part of Nigeria.

Furthermore, the idea of engaging in oil exploration in the Benue Trough should be done in the context of the country’s efforts to diversify its means of income. In that sense, the Ministry of Solid Minerals Development should also be involved in the exploration of other mineral deposits, an activity that has been neglected because of incomes from the oil and gas sector over the years.

In spite of this positive development, we call on government to engage stakeholders in the Niger Delta to bring an end to the militancy which has disrupted the oil sector and led to the current economic recession. The militants must be made to realize that their activities do not hurt only the Federal Government, but affect even states in the Niger Delta who benefit from the constitutional 13% derivation. Some states in the region have been unable to pay workers’ salaries in full in the last few months. The insecurity in the South-South has crippled crude oil production to a 30-year low. No section of the country can be proud of such a negative development at a time when other countries take pride in the growth of the Gross Domestic Product (GDP) and the Foreign Direct Investment (FDI) they attract.

The Federal Government, while searching for crude oil in other parts of Nigeria, should not ignore the Petroleum Industry Bill (PIB) that is still pending before the National Assembly. Experts have said the bill, if passed, would enhance the modernization and growth of the sector.

Nigeria: Economic Crisis – Buhari Yet to Request Emergency Powers – Presidency

The presidency on Monday denied news reports that President Muhammadu Buhari was seeking emergency powers from the National Assembly in order to tackle the lingering economic crisis in the country.

In a statement by the Special Assistant to the Vice President on Public Affairs, Laolu Akande, said an economic management team set up to propose solutions to the economic crisis had only recently concluded its assignment but had not passed the recommendations to Mr. Buhari for actions.

But he admitted the team’s recommendations may require “legislative amendments and presidential orders”.

“The Economic Management Team has indeed been considering several policy options and measures to urgently reform and revitalize the economy. Some of these measures may well require legislative amendments and presidential orders that will enable the Executive arm of government move quickly in implementing the economic reform plans,” Mr. Akande said.

“As far as I know, this has not been passed on to the President, the Federal Executive Council or the Legislative arm of government.”

Different news reports had on Monday quoted presidential sources as saying that the Buhari administration was seeking, among other requests, the suspension of extant laws governing some aspects of the economy from the National Assembly.

The government has come under increasing pressure as Nigerians struggle daily with hardship inflicted on them by a raging economic crisis.

Out of the Darkroom, Into the Light: Going Digital in Nairobi

Nairobi, Kenya — Having clothes ruined by ink and inhaling chemicals for hours in the hospital darkroom used to bother Margaret Njuwe and other radiographers at East Africa's largest referral hospital in Kenya's capital Nairobi.But when ink runs rendered X-rays unusable or mammograms came out too soft to see suspected lumps, Njuwe's heart would sink as she climbed Kenyatta National Hospital's (KNH) stairs to the radiology department's constantly packed waiting room.

"Patients would wait for hours, and then maybe when you go to the darkroom you have to repeat [the scan] and call the patient back and it might take another day," she said.

Some patients in the 2,000-bed hospital would come back. Others, especially referrals from other centers, would disappear, regardless of how sick they were.

But for the past three months, KNH staff have switched from analogue to digital machines and been able to scan and sometimes diagnose patients within minutes.

"It has reduced those delays. Patients can be referred instantly, because you can take an image, you print it instantly and the patient can take it with them to the referring doctor instantly," said radiographer Clifford Ike.

In total, 98 hospitals in Kenya will benefit from a program being led by the Ministry of Health to modernize core healthcare services at key government facilities across the country. It is the first Government-led program of its kind in Kenya — and one of the largest undertaken to date in Africa to support sustainable healthcare development.

Selected by the Ministry as the technology provider for the radiology modernization tranche of the Kenya mega tender – GE, a committed partner in the development of healthcare in Africa, is providing a comprehensive program that includes the installation of 585 new machines across all 47 counties – and over the next seven years will provide the medical staff using them training and technical support to ensure the optimal operation of the equipment.

After years of studying health models, "without a doubt the ones that have proven to be successful when serving populations is collaboration between the public and private sectors," said Terri Bresenham, CEO of GE Healthcare's Sustainable Healthcare Solutions business.

"As a company what we do know how to do well is set up a structure and capital investment."

GE's plan differs from "this huge capital investment up front and then nothing left for maintenance and for training," she added.

KNH's basement has just some of the many abandoned or broken down machines that litter health centers nationwide as parts or know-how to use them were missing.

The first 44 hospitals to go digital – one of Kenya's healthcare focuses for its 2030 Vision plan – using the new machines increased monthly examinations from 1,500 to over 28,800.

At Mbagathi hospital in downtown Nairobi, staff using one of GE's temporary x-ray machines until their equipment is installed is now doing up to 100 scans a day, almost double what the old machine did.

"They are doing it quickly-just some minutes", said Frida Ngute,  whose baby Agnes has had chest problems for three months.

Mbgaathi Hospital Radiographer Irene Githinji is looking forward to switching from expensive film rolls to digital machines for ultrasound, x-ray and surgery, especially as the hospital is next to Kibera – a slum where millions of people live.

"We are hoping that eventually it will help us make it even cheaper for them," she said.

To ensure quality, standardized and continued training for Kenyan health workers and as part of GE's plan to train 10,000 by 2020, on June 16, GE Healthcare's CEO John Flannery opened its "first dedicated center in Africa for training on technology".

"Demand for quality healthcare is increasing", said Cleopa Mailu, Kenya's Cabinet Secretary for the Ministry of Health, at the inauguration of the center in Nairobi's Karen neighborhood.

"This dedicated training center will bring people together"

"The GE Healthcare Training Center will play a critical role in supporting the capacity development of biomedical engineers, radiologists and technicians, helping to reduce the skills gap, improve job prospects and build a solid national healthcare system," he added.

"This dedicated training center will bring people together", help build networks of specialists and bridges with health workers in different tiers or sectors of the health care system, said Bresenham.

Many communicable diseases like HIV, malaria and TB are still set up and funded separately, whereas more needs to be done to build "a better, more robust primary care system," said Bresenham.

At KNH's radiology department, where Njuwe scans people who have been in road traffic accidents, people suspected of having pneumonia and surgical patients, the system is already more joined up.

Ike says that the scanners have improved diagnosis times as they are "easier to work with" and have a greater range of exposures.

"People are really appreciating these machines", he said.

Hannah McNeish is a freelance journalist based in East, Central and Southern Africa and wrote this story on assignment for The Pulse.