Hotel and leisure conglomerate Sun International [JSE:SUI] announced on Monday that it will exit Nigeria.

In its results announcement for the year to end-June 2016, Sun International said its hotel and casino complex Federal Palace continues to operate in a difficult environment with the Nigerian economy facing a number of crises including the low oil price, Boko Haram and a weakening naira. The country also has still not recovered from the significant impact the Ebola epidemic had on the business.

In addition to problems faced by the country, there are a number of issues specific to the local Nigerian partners in the Federal Palace and these have further exacerbated matters, Sun International said.

Sun International, which had invested more than $50m in its Nigerian operations, said continued setbacks in Nigeria – including the ongoing shareholder dispute – have frustrated all attempts to develop and improve the property.

It also lamented the fact that its employees at the Tourist Company of Nigeria, in which it holds a 49.3% stake, had been put at risk.

“Five of our staff members who were detained by the Economic and Financial Crimes Commission earlier in the year have still not had their passports returned to them despite no charges being laid against the individuals, the company or Sun International.

“As a result of the current environment and issues facing the company the board has taken the decision to exit our investment in Nigeria.”
Sun International, however, said it expects the exit to be a protracted process, given the challenges it faces and to ensure it receives fair value for its investment.

In the review period the occupancy of Federal Palace at 41.6% was 6.8% below last year’s figure, with the average room rate up 3.8%.

The company said that despite all efforts to keep costs as low as possible, earnings before interest, tax, depreciation and amortisation (Ebitda) declined 58%.

Sun International said the Nigerian debt has always been, and remains, ringfenced to the Federal Palace, without recourse to the group balance sheet.

Other South African companies which have pulled out or made their intentions clear to exit the country, which is battling its worst economic crisis in decades, include Woolworths, Truworths and Tiger Brands, while MTN took a knock from a massively reduced fine of $1.7bn. After months of deliberations, Nigeria agreed in June to cut the fine initially demanded by almost 70% after MTN threatened to shut down its operations in the West African nation.

Sun International shares were trading 0.63% down at R91.51 by 11:14.

Washington, DC — Corporate Council on Africa (CCA) President and CEO, Stephen Hayes will be honored by the Africa-America Institute with the AAI 2016 U.S. Business Leader Award at the AAI 2016 Annual Awards Gala.

Mr. Hayes was selected in recognition for his dedicated leadership and strategic contributions to the growth and strengthening of U.S.-Africa Business Relations. Under his direction, CCA’s work and initiatives have had a domino effect, transforming nascent policy and private sector engagement into greater and broader U.S. engagement with Africa. The award appropriately comes on the eve of President Barack Obama’s Second U.S.-Africa Business Forum.

“There is no greater honor than those from peers, especially when those peers are so highly regarded as is the Africa-America Institute, an organization that has been a leader in building US-Africa relations through education,” said Hayes. “I am deeply appreciative, genuinely surprised and humbled that they would bestow this honor on me. Of course it is really an honor for the Corporate Council on Africa as our contributions over the years have always been through a team effort of staff and board.”

In his 17-year tenure as president, Stephen Hayes has led CCA to become fully engaged in a wide range of economic and political issues affecting commerce between the U.S. and Africa. Mr. Hayes’ personal dedication to African growth, development and prosperity through business and investment is evident in his work, which has garnered several awards. To date, Mr. Hayes and CCA are the only individual and entity in the United States to have been awarded the two highest awards given by the U.S. Government for international economic leadership. In 2008, Mr. Hayes was awarded the Ron Brown Award for International Leadership, the highest individual award possible from the United States Department of Commerce; and in 2015, under Hayes’ leadership, the Corporate Council on Africa was presented with the President’s “E” Award for Excellence in Export Service.

The Award, presented by the United States Department of Commerce, was initiated by President John F. Kennedy in 1963. In addition to these awards, Mr. Hayes has also been honored by the Africa Chamber of Commerce of the U.S.; the Transnet Foundation, South Africa’s largest foundation chaired by Bishop Tutu; and the United Nations Development Programme. He has also been honored for his leadership by Senegal and Kenya.

The AAI 2016 Annual Awards Gala will take place on Tuesday, September 20, 2016 in New York City during the opening week of the 71st United Nations General Assembly and the Second U.S.-Africa Business Forum. The Africa-America Institute is the premier U.S.-based international organization that works to increase the capacity of African individuals and institutions through higher education initiatives, leadership development, professional workforce training, convening activities, program implementation and management.

Other accepted honorees include: AAI 2016 African Business Leader Award: Mr. Aliko Dangote, President and CEO, Dangote Group; and AAI 2016 Distinguished Alumnus Award: Mr. Sunil Benimadhu, Chief Executive, Stock Exchange of Mauritius.

Nairobi, Kenya — An African Development Bank (AfDB) Group delegation led by the Bank President, Akinwumi Adesina, will attend the Sixth Tokyo International Conference on African Development (TICAD VI) in Nairobi from August 27-28, 2016. This will be the first time TICAD is being held in Africa since its inception in 1993, demonstrating the strong African ownership and deepening partnership among TICAD stakeholders.

Co-organised by the Government of Japan, the United Nations Office of the Special Advisor on Africa (UN-OSAA), the United Nations Development Programme (UNDP), African Union Commission (AUC) and the World Bank, the event will bring together over 6,000 participants, including representatives of African countries, international organizations and civil society.

Japan is a very strong supporter of the African Development Bank, and also contributes significantly to the African Development Fund. The TICAD meetings will see President Adesina hold talks with senior Japanese officials from government, the private sector, non-governmental organizations and others, during which partnerships opportunities will be discussed with the aim of increasing support for Africa’s transformation. The Bank is also organizing several side events.

Since 2005, the Government of Japan (GOJ) has provided USD 4 billion under the Enhanced Private Sector Assistance (EPSA) for Africa. Drawing on successful development experience in Asia and around the globe, EPSA is an innovative, multi-component, multi-donor partnership framework between the GOJ and the AfDB for resource mobilization and development partnership to support implementation of the AfDB’s Strategy for Private Sector Development. Under the current phase (EPSA II), projects in infrastructure, agriculture and irrigation, water and health sectors are being considered for sovereign co-financing, non-sovereign loans and technical assistance. The latter is aimed at strengthening SMEs. A third phase of EPSA is being negotiated and will be announced during TICAD VI.

The Government of Japan prioritizes cooperation with Africa and puts emphasis on Public-Private Partnership (PPP) and the role of the private sector. In 2015, the Prime Minister Shinzo Abe announced that the Government of Japan intended to promote “quality infrastructure investments” that are environmentally friendly, disaster resilient, and cost-effective in the long run. TICAD VI is an opportunity for participants to underscore the centrality of quality national and regional infrastructure development on the continent, under five pillars: Industrialization, Health, Water and Sanitation, Women and Youth, and Social Security. All pillars are aligned to the Bank’s High 5 strategic priorities: Light up and Power Africa; Feed Africa; Industrialise Africa; Integrate Africa; and Improve the quality of life for the people of Africa.

uba — South Sudan is pleading with Kenya and Uganda for economic support to avert a humanitarian crisis after a fresh conflict brought the country to its knees.

Last week, a delegation of Transitional Government of South Sudan officials led by First Vice-President Taban Deng Gai was in Kenya on a mission seeking a bailout.

Africa Review has learnt that Juba will also be reaching out to Uganda later this month to craft a bailout package that will see Kampala pay its traders the $35.2 million Juba owes them in a bid to have them resume supplies to the country.

“The vice president will go to Kampala to request the Ugandan government to pay traders who supplied cereals to Juba but haven’t been paid. The money will then be converted into a loan, for which Juba and Kampala officials will work out a repayment plan,” a diplomatic source with the knowledge of the matter said.

The delegation to Nairobi, which included four ministers, met with Kenyan President Uhuru Kenyatta, Cabinet Secretary for Foreign Affairs Amina Mohamed and a number of government officials.

A source privy to the discussions said Mr Gai implored President Kenyatta to give his country a soft loan to help it deal with its current problems.

President Kenyatta is reported to have advised the group to send their finance minister, their Central Bank Governor and agriculture minister to Nairobi with a clear proposal, including the amounts needed and the modalities for repayment.

South Sudan relies on Kenyan traders for key supplies including food, edible oils, pharmaceuticals, electronic products and manufactured goods.

Uganda is South Sudan’s biggest trading partner and exports maize, vegetables, sugar, iron and steel, cement, beer, motor lubricants and detergents. However, following fresh fighting in the country in July, most foreign traders have returned to their countries for security reasons.

In an interview, South Sudan Finance minister Stephen Dhieu Dau declined to provide details on how the proposal would be structured.

“I am yet to get a briefing on the discussions in Nairobi and any other that will take place. However, we are pursuing fiscal, monetary and diplomatic routes in a bid to unlock the economic challenge the country is facing,” Mr Dau said.

The country is also yet to pass a new budget for the 2016/17 financial year.

Africa Review is a Nation Media Group initiative to tell untold African stories

Windhoek — Not knowing how to swim has for many years prevented some young people from applying for employment as an Air Namibia cabin crewmember, because swimming well is actually a requirement for the job.

But the national airline says this is now something of the past, as more and more people know how to swim these days, which is one of the reasons the airline recently received approximately 3 000 applications to fill 23 vacancies for the latest intake of cabin crew members.

Of course unemployment, particularly amongst the youth, is also a major contributor to the large number of applications received.

Air Namibia’s latest cabin crew recruits completed their eight weeks of intensive training on Friday, August 12, and started with their observation flights the very next day.

Besides testing their swimming abilities, part of the evaluation process included an intensive screening process, where amongst others applicants’ body mass index (BMI) and height measurements were recorded.

The required BMI for women is between 19 and 24 and between 20 and 26 for men. The required length for both males and females is 1.60 m.

According to Air Namibia spokesperson Paul Nakawa the new intake is part of the airline’s strategy, as per the Harambee Prosperity Plan, to ensure no one is left out.

Nakawa noted that the new intake represents Namibia’s cultural diversity and background.

“Time has evolved and young people are keen to know how to swim. This skill has for many years prevented many Namibians, who aspired to be cabin crew to qualify. “It is an industry requirement and we ensure whoever wants to be a cabin crew knows how to swim,” he said.

“Air Namibia will work closely with the Ministry of Education, especially the National Institute for Educational Development (NIED), to ensure that swimming is part of the vocational subjects taught at all schools in Namibia.

“We will further ensure that topics on the aviation industry are incorporated in the guidance and life-skills textbooks to introduce the learners, who want to pursue their studies in aviation later in life.

“Knowledge is power and it’s only when such information is disseminated to learners that they will make informed decisions on their career plans or choices.

“This is the beginning of a long journey ahead and management wants to ensure that opportunities are available to all who meet the industry requirements,” Nakawa noted.

Zambia’s close-run presidential election means President Edgar Lungu must now balance uniting the nation with the spending cuts needed to stay competitive.

A closely contested and unpredictable election saw Zambia’s incumbent President Edgar Lungu of the Patriotic Front (PF) emerge victorious – but with just 50.35 per cent of the vote, protesters clashing with the police in the streets, and support mostly concentrated in the north and east of the country, much needs to be done to unite a politically divided nation.

Lungu is now charged with creating that unity while also steering Zambia from its current economic downturn; this will require political will and careful control of government spending.

China’s economic downturn and the subsequent fall in copper prices greatly impacted Zambia, where copper accounts for over three-quarters of export earnings and 16 per cent of GDP. Its copper-belt region has seen thousands of miners made redundant and mining companies reduce output with investors unsettled by falling commodity prices and the political uncertainty.

【Economic woes broader than copper alone】

The decline in copper prices coincided with an energy crisis as reduced rainfall, antiquated machinery and a surge in consumer demand led to more frequent power shortages. The Kariba and Kafue hydroelectric plants cannot fully service demand, forcing government to source emergency power regionally (at an annual cost of US$660m) and its attempt to recoup costs through a 70 per cent increase in power tariffs led to public protests which forced the government to back down.

Zambia’s once buoyant growth has slowed – from 10 per cent at the start of the decade to around three per cent now – but despite this financial squeeze, the PF government has been heavily investing in infrastructure, especially social infrastructure, with 650 clinics, 32 district hospitals, 68 primary schools and more than 100 secondary schools built in the last five years. Hundreds of miles of tarred roads are now in place, with more promised, and the Social Protection Safety Net social welfare scheme has assisted thousands of households.

But this high expenditure has put additional stress on the finances with Zambia’s budget deficit now almost 10 per cent of GDP, spurred by heavy government borrowing. There have been liquidity shortages in Zambia’s banking sector – partly caused by government borrowing crowding out the private sector – servicing international debt is getting more expensive as confidence wobbles, and the currency is in decline. Discussions between Zambia and the IMF on an extended credit facility are ongoing, but a substantive deal will probably have to wait until 2017.

And this spending has not had an immediately transformative effect with almost 60 per cent of Zambia’s population classified as poor, and 42 per cent in absolute poverty. Urban unemployment and underemployment remain prevalent despite a large informal sector, and the PF has been criticised for politicising infrastructure development and being lax on corruption.

【Reasons for optimism in the medium-term】

Despite these problems, and even though copper remains king, there has been economic diversification. Zambia remains a net maize exporter to a drought- blighted region, is a major tourism hub, and is helping drive the regional economic integration process.

It is also ironic that a country which was famous for exporting labour to its southern neighbours is now a destination of choice for professionals in the region. The small but growing middle class in Zambia supports a consumer economy attractive to international investors, and the government must now develop a policy environment that allows domestic businesses to flourish.

In addition, companies that made efficiency savings during the copper ‘crash’ are now well-placed to capitalise if the global price of copper strengthens, and a broad consensus between government and mining multinationals regarding royalties – a toxic issue just a few years ago – will bolster this rebound. Zambia’s strong legal framework and investment guarantee system are competitive advantages and its partnership with the IOM (international Organization for Migration)means Zambia is actively engaging with its global diaspora to help its own development.

Zambia still faces major challenges, most immediately in reducing profligate spending. Popular policies of subsidised fuel and government-underwritten maize pricing will now come under scrutiny, and increased power tariffs may be back on the cards. But changes could generate protest, particularly if the government is perceived to be favouring its supporters.

Opposition leaders, notably the defeated United Party for National Development (UPND) leader Haikande Hichilema, will have a key role to play in uniting the nation and overcoming the political cleavages exposed in both this election, and the snap presidential election of 2015 following the death of former President Michael Sata (which also resulted in a narrow victory for Lunga).

A higher turnout (56 per cent of registered voters, compared with just 32 per cent in 2015) does give Lungu a stronger mandate than he had previously, but he will be expected to deliver on electoral promises of completing infrastructure projects, pursuing agricultural diversification, and job creation – all within a tough economic environment. But, as economic headwinds abate, Zambia should be well placed to retain its status as a regional hotspot for international investment.

The status of Lagos State as an oil producing state was affirmed by the federal government yesterday with the approval of four oil wells discovered in the state.

It, however, disapproved the state’s ownership of one oil well.

With the development, the federal government will begin the disbursement of the 13 per cent derivation fund to the state, in line with constitution of Nigeria.

The chairman, Indices and Disbursement Committee, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Aliyu Mohammed, made this known when he led members of the committee on a visit to the Lagos state governor, Akinwunmi Ambode at the State House, Ikeja.

Mohammed said the committee was in Lagos to verify the crude oil and gas production from Aje oil wells for the purpose of disbursement of the 13 per cent derivation fund to the state.

LEADERSHIP reports that the 13 per cent derivation fund is money paid to oil producing states by the federal government. Akwa Ibom, Rivers, Bayelsa, Delta, Cross River, Edo, Ondo, Imo, and Abia States constitute the oil producing states in the country, with Lagos as the latest to join the league.

He explained that the federal government’s disapproval of the fifth oil well was hinged on the fact that it fell beyond 200 metres isobaths and did not legitimately belong to the state.

The committee chairman further stated that as part of procedure and in pursuant of its constitutional mandate, the commission had set up an Inter-agency Technical Committee which comprised the commission, the Department of Petroleum Resources (DPR), Office of the Surveyor General of the Federation and the National Boundary Commission to determine the location of the Aje oil wells.

“The technical committee recommended that for the purpose of derivation as spelt out under Section 162 (2) of the 1999 constitution (as amended) as well as the provision of the Allocation of Revenue Act 2004, Aje oil wells 1, 2, 4 and 5 fall within the 200m isobaths and therefore should be attributed to Lagos State.

“As a result, the commission and members of the Inter-agency Committee had to embark on this working visit to conclude the process. Please, note that Aje 3 oil well falls beyond the 200m isobaths and therefore cannot be legitimately attributed to Lagos State,” he said.

According to Mohammed, the commencement of oil production from the Aje oil field by Yinka Folawiyo Petroleum Company Ltd was the first time oil was being produced outside the Niger Delta basin and therefore, of a major significance in diversifying the source of crude oil and gas production in the country.

In his response, Lagos State governor, Mr Ambode, described the visit as historic and one that would go down in the annals of the history of Lagos State.

He noted that the visit was the official step that would take Lagos to that final destination as an oil-producing state.

“We are very glad to receive this delegation. We also want to thank the federal government, especially President Muhammadu Buhari, for making this to happen very promptly. I want to say that this has been the promptest action that has been taken by RMAFC since I have known the commission. I used to be a former accountant general so I had a lot of transactions and relationship with the institution called RMAFC. Within a span of about 60 days of when we wrote our letter, and even before we wrote the letter, this technical committee was actually set up,” he said.

Ambode, who lauded the DPR and the Boundary Commission, said it was significant that the discovery of oil wells in Lagos was going to be the first time oil would be produced outside the Niger Delta.

“It’s significant for Nigeria; it’s significant for Lagos. It means that the whole path to diversification is what we are now witnessing. We would also encourage other states, in terms of other mineral resources, not necessarily to depend on crude oil, whatever it is that can actually allow states to start activating their mineral deposits, it would allow us expand the Internally Generated Revenue.

“It would also give us revenue dependence in a manner that there would be equal growth from all every nook and cranny of Nigeria. One is happy that RMAFC has taken this step and also to say that they should also encourage other states to engage in such activities that would allow them to be able to activate whatever mineral deposit that we have in the various states in conjunction with the federal government, so that we can start to diversify revenue and growth and then create a balanced growth and development for the whole country,” he said.

LEADERSHIP reports that oil prospecting in Lagos was ongoing for 25 years, by Yinka Folawiyo Petroleum Company Limited, before the state officially joined the League of Oil Producing States in Nigeria, in May this year.

According to the Group Managing Director, Tunde Folawiyo, the company spent about $400 million to achieve the feat.

He said the current status of the oil well has the capacity to produce at least 12,000 barrels per day, with a possibility increase to 25,000 to 50,000 barrels per day in the nearest future.

The government has reiterated that it won’t back down on its decision to ban the use of plastic bags effective January next year.

Owners of plastic bags manufacturing factories have been advised to take steps towards easing production before the deadline and invest in production of alternative bags and plastic waste recycling facilities.

This assertion is contained in an advertisement posted on various media outlets yesterday by the Vice President’s Office.

In April this year, the minister of State in the Vice President’s Office (Union Affairs and Environment), Mr January Makamba, told the National Assembly that the government would impose a total of ban on the use of plastic bags.

“We are warning industries that stern action, including closure will be taken against those who will be caught manufacturing plastic bags,” said the minister.

He said that in instituting the plastics ban plan, the government revisited the 2006 regulations on the production, importation, sale and use of plastic bags which, among other things, disallows the use of bags that are below 30 microns.

According to the advert, the government wants relevant authorities and industries to take steps to ensure that by January next year the production, importation, sale and use of plastic bags in the country ceases.

Plastic bags affect environment by, for instance, blocking sewerage and water drainage infrastructure, causing floods during rain. The bags damage ecosystems and biodiversity due to plastic bags, endangering human health when used for packing food in particular hot food.

Zimbabwe’s central bank chief has admitted that people will be paid partly in bond notes, despite earlier claims the notes were to be an incentive for exporters.

“If you are getting a $400 salary, you will still get $400 in United States dollars, bond notes, rand or euros. If you don’t want them then you use plastic money,” central bank chief John Mangudya said in quotes carried by the official Herald daily.

The bond notes are likely to be introduced around October. They are supposed to be at 1:1 parity with the US dollar.

Mangudya’s announcement in May that bond notes were to be introduced followed months of cash shortages.

His claim that they would be backed by a $200m loan form the African Export-Import Bank has not reassured Zimbabweans who fear a return to the overprinting of the pre-2008 hyper-inflation era.

An opposition Movement for Democratic Change (MDC) official told News24 earlier this week that the authorities could be stacking up as much as $2.5bn in bond notes, but that figure will be hotly contested by the central bank.