By Carlos Lopes – The Executive Secretary's Blog

As the world gets used to new forms of interconnectedness, Africa is not left aside. Today, more than 700 million Africans are subscribed to mobile services with many wealthy Africans proudly displaying more than one cell, a symbol of a newly acquired social status. The proliferation of mobile networks has transformed communications, businesses or banking, enabling a jump unimaginable just a few years ago. Thanks to technology we are witnessing new forms of integration.

Is aviation going to be the next big integration magnet?

Unfortunately, even though Africa is home to 15% of the world's population it only accounts for a relatively small proportion of air traffic, in fact less than 3% of the world's total.  Small as this may be, the African aviation market is growing fast.

International air passenger numbers have grown consistently year on year since 2004 except in 2011 where the numbers dipped as a result of political instability in parts of North Africa. From less than 40 million passengers carried in 2004 by African airlines, passenger numbers increased to 73.8 million in 2013. Domestic passenger numbers within the region also increased significantly reaching 28 million in 2013[1]. This growth is projected to continue. Boeing’s long term forecast for 2014-2033 indicates that, driven by a positive economic outlook, increasing trade links, and the growing middle class, traffic to, from, and within Africa is projected to grow by about 6 percent per year for the next two decades. This demand will translate into a demand for an additional 1,170 new airplanes, valued at USD 160 billion[2]. But as with all good things the proof of the pudding is in the eating.

According to the Air Transport Action Group[3], in 2014 the aviation industry in Africa supported 6.8 million jobs and contributed USD 72.5 billion to Africa's GDP. This accounted for 11% of the jobs and 3% of the GDP supported by the air transport industry worldwide.

These encouraging developments however do not reveal some of the major obstacles still faced by the aviation industry in the continent. It remains one of the most unsafe regions to fly, it has lagged behind others on skies liberalization, its airport infrastructure continues to require massive investments and the training of skilled personnel is not being properly planned.

African airlines consolidation is another challenge. During the 1970s and 1980s there were about 36 African airlines of which 26 had intercontinental flight services. Today there are only about 12 African airlines with intercontinental operations.  Over the last two decades a total of 37 new airlines were launched in Africa but almost all of them failed.  Most countries continues to act solo and motivated by choices other than economic. We continue to see attempts to create or sustain national carriers, opposing international trends. It is true that Middle East carriers and the good performance of Ethiopian Airlines contradict the doomsayers of state-owned airlines, but these are exceptions that need to be understood in their plenitude. 80% of the continent's long haul traffic is dominated by non-African carriers.

The average cost of a flight in Africa is higher than anywhere else in the world.  High landing fees, exorbitant taxes levied on airfares as well as above average aviation fuel prices, almost 30% higher than in Europe, do not help.

Funding access for the aviation industry is uneven. Dubai, Abu Dhabi and Qatar-based airlines have reportedly enjoyed a host of benefits valued at more than USD 42 billion over the past decade. That includes subsidized access to capital and sponsored first class infrastructure. American commercial aviation has also benefited from its government's support valued at USD 155 billion, since 1918. Obviously African airlines are not in the same league and have been left to fend for themselves. Without the same easy access to capital markets, export credit financing (which can cover up to 85% of the actual aircraft price), or insurance subsidies, African airlines either have to finance the difference from their own funds or opt for junior loans with punitive rates from commercial banks; or lease aircrafts at an even heavier cost. The financing options open to African carriers dwarf their chances for expansion. It is therefore hardly surprising mega carriers are doing so well, including in their operations in Africa. They have the advantage to expand quickly, with space to build a market from scratch, increase market shares and continue investing heavily in service and marketing.

Intra –African connectivity is so mediocre that any passengers have to travel thousands of miles out of the continent just to be able to make a connection to another African destination. A quarter of the intra-African routes are actually served by just one airline. Despite African states signing up for a full liberalization of the regional market at Yamoussoukro in 1999, restrictions and protectionism instead of being eliminated are becoming rather rampant.

What could constitute a good base for a turnaround? With regards to safety accidents 2014 marked a significant change. Despite aviation disasters dominating headlines that year, African airlines actually stood out for zero jet hull losses (write-offs) per 1-million flights compared to 2.22 in 2013 and 4.63 in 2012[4]. This is encouraging news, suggesting regional measures to improve safety records are working. Ethiopian Airlines is already leading the way amongst its continental competitors in terms of establishing ambitious targets meet them and turn a profit. With 93 destinations across 5 continents, including 53 in Africa its future looks promising. Having experienced a phenomenal 700% growth in its revenue since 2005, Ethiopian Airlines has demonstrated the strength to face difficult competition. However, as long as Africa fails to establish a single aviation market and countries continue to restrict African carriers while welcoming the European and Middle East competitors, the performance of Ethiopian Airlines may remain an exception.

Africa must move towards embracing a conducive and smart regulatory framework that liberalises its skies in order to realise a profitable and globally competent airline industry. A truly competitive sector will need to be innovative and prioritise the continent's interests over national flags. An open skies policy would drive the cost of tickets down and increase substantially the number of flyers.  According to IATA by just deregulating and liberating African air services in 12 key markets, an extra 155,000 jobs and USD 1.3 billion could be generated[5].

Evidence shows that open skies agreements have worked in other regions. For example in Europe, it increased exponentially the number of routes and provoked a 34% decline in ticket fares. Indeed where African nations have liberalised their air markets, either within Africa or with the rest of the world, positive benefits have resulted. For example the agreement of a more liberal air market between South Africa and Kenya in the early 2000s led to a 69% rise in passenger traffic. The 2006 Morocco-EU open skies agreement led to 160% rise in traffic with the number of routes operating between the two multiplying four fold[6]. Just allowing the operation of a low cost carrier service between South Africa and Zambia (Johannesburg-Lusaka) resulted in a 38% reduction in fares and 38% increase in passenger traffic. The continent has to create more space for low cost flying.  As of 2013 the penetration of low-cost airlines in Africa was the lowest in the world, representing less than 10% of the continent's total.

In an interconnected world, air travel is no longer a luxury, it is a necessity for a prosperous continent.

Published as an op-ed in the East African on 12 September 2016

[1] Chingosho, E. (2014). 46th AFRAA Annual General Assembly. Report of the Secretary General. 10 November 2014, Algiers, Algeria

[2] Boeing Commercial Airplanes (2015). Current market outlook

[3] Air Transport Action Group (2016), Aviation: Benefits Beyond Borders  report

[4] http://mg.co.za/article/2015-03-11-think-african-jets-are-flying-coffins-these-numbers-will-prove-you-wrong

[5] IATA (2014), Press release on the Significant Benefits of Liberalized African Air Marketshttp://www.iata.org/pressroom/pr/Pages/2014-07-07-01.aspx

[6] InterVISTAS Consulting ltd (2014).Transforming Intra-African Air Connectivity: The Economic Benefits of Implementing the Yamoussoukro Decision. Prepared for IATA in partnership with AFCAC and AFRAA

President Museveni has asked ambassadors, in France, to market Africa to Europe. "Africa's purchasing power is now at $8 trillion with a population of 1.2 billion.

Remind Europeans that Africa is a growing market and they should, therefore, take interest in it," Mr Museveni said.

The president made these remarks at the start of a two-day visit to France, on which he has been accompanied by Education minister, Janet Museveni, also his wife.

The two were received by French ambassador to Uganda, Ms Sophie Makame, Uganda's Minister of State for International Affairs, Mr Okello Oryem and Uganda's Ambassador to France, Ms. Nimisha Madhvani. A host of other African ambassadors accredited to France representing Kenya, Ghana, Sudan, Ivory Coast, Rwanda, Ethiopia, Zambia, Zimbabwe, Algeria, the Central African Republic, Gambia, Tanzania, Niger and Togo, among others were present when Mr Museveni touched down at Le Bourget Airport.

Museveni also told the ambassadors that East Africa is discussing a policy "where investors would only sell their products if they are manufacturing in the region".

"… .If you don't manufacture here, then you don't sell here. Ethiopia is already doing it," the statement quotes Mr Museveni as saying.

The president is in France for a two-day working visit meant to foster trade and investments between the two countries.

Later today, President Museveni is expected to address the Movement of the Enterprises of France (MEDEF), the largest employer federation in France with a membership of over 880,000 firms.

He will later hold bilateral talks with the French President Francois Hollande at his official residence, the Elysee Palace.

Meanwhile, the Minister for Education and Sports, Janet Museveni, will meet officials of Campus France, the public agency overseen by the French Ministries of Foreign Affairs and Higher Education, responsible for coordinating services for international students in France.

By Dorothy Nakaweesi

Kampala — The East African Community (EAC) member countries' decision to extend the signing of the Economic Partnership Agreement (EPA) with the European Union may have consequences in the due course, the EU has said.

The EU head of delegation to Uganda, Ambassador Kristian Schmidt, in a statement issued to this newspaper last week, said: "There are no immediate effects but there may be consequences in due course that only the EPA can prevent."

EAC heads of State during their 17th Summit that sat in Dar-es-Salaam, Tanzania recently agreed to push the signing of the EPAs with the EU for another three-months (January 2017) until a harmonised regional position has been arrived at.

Tanzania's President John Magufuli, the chairman of the EAC summit, said they need more time to discuss the EPA agreement.

So far, Kenya and Rwanda have already signed the agreement. Uganda has also expressed strong interest to sign while Tanzania and Burundi are still skeptical.

But the EAC heads of State during the negotiations expressed a willingness to move ahead as a region.

Mr Schmidt said the EU understands that the EAC partners need some time to continue their internal process.

"This is why we pursue a situation in which the EAC EPA is implemented by all EAC countries as a bloc, in order to provide a predictable and uniform trade scheme for all EAC members that respects their customs union and preserves duty-free quota-free access to the EU market for all of them, regardless of their income status, in the long term," he said.

Unilaterally, the EU already offers full free access to its market to Uganda, Rwanda, Tanzania and Burundi because of their low income status and does so to another 44 countries in the world. This is aimed at improving the incomes of the Low Developed Countries.

Kenya already has higher income levels compared to the lowest average worldwide.

"Pending entry into force of the EPA, Kenya can still benefit from unilateral preferences that the EU offers but stands to lose free access for some of its main export products if there is no EPA," Mr Schmidt said.

He said for all the EAC countries to benefit from full free access to the EU in the long term regardless of their income, the EPA concluded between the EU and the EAC must enter into force.

He added: "For this to happen, all five EAC countries shall sign, ratify and implement the agreement."

Mr Schmidt welcomed South Sudan a new member of the EAC but urged the other members to help it find peace and security, and start improving the living standards of its population.

-Exports to the EU from East African Community are dominated by coffee, cut flowers, tea, tobacco, fish and vegetables.

-Imports from the EU into the region are dominated by machinery and mechanical appliances, equipment and parts, vehicles and pharmaceutical products.

By Kennedy Senelwa

Base Resources Ltd of Australia expects prices of titanium oxide mined in Kwale county on Kenya's Coast to improve in the months leading to 2017.

The firm, which started production at the Kwale mineral sands project late 2013 has in the past one year been affected by depressed titanium oxide prices due to oversupply on the global market and reduced demand in China.

Base managing director Tim Carstens said there are indications of the market improving as global mineral sands stockpiles decline.

"Ilmenite is holding at around $90 per tonne above the $60 per tonne floor of the past 18 months, but shy of the $300 peaks of 2011 to 2012," said Mr Carstens.

Feed stock for pigment

Rutile and ilmenite are feed stock for production of titanium dioxide pigment with small percentages utilised to make titanium metal, fluxes for welding rods and wire.

Pigment account for 90 per cent of titanium minerals demand and is the main driver of prices. Pigment prices have recently declined due to weak demand.

Titanium dioxide is the most widely used white pigment because of its non-toxicity, brightness and very high refractive index. It is an essential component of consumer products such as paint, plastics and paper.

The firm's strategy for securing the Chinese market entails offering product for immediate delivery and in smaller volumes through the warehouse based in China instead of direct shipments from Kenya.

By Allan Olingo

Kenya will spend $20 million more to modify the Nairobi-Naivasha standard gauge railway route and avoid interfering with wildlife movement within the Nairobi National Park as demanded by conservationists.

Kenya Railways has now said that it will not take part of the park's land as previously designed but will have the six kilometres of the SGR cross the park on a single line bridge so that wildlife can move beneath it.

Kenya Railways managing director Atanas Maina said that the new elevated track will cost $543 million, up from $523 million. The entire Nairobi-Naivasha route will cost U$1.483 billion.

"Though costly, this extra amount will go to adjusting the section running through the Nairobi National Park. We are going to see several improvements to make it 400 metres shorter than the initial route, which was to run through the park for 6.4 kilometres," Mr Maina said.

A commercial contract with China Communications and Construction Company was signed in December last year, secured through a financial facility with the Chinese Exim bank.

A standoff between conservationists, Kenya Wildlife Service (KWS) and KRC has forced the latter into several forums to work out an amicable solution after the preliminary designs were rejected.
 

Friends of Nairobi National Park, a conservation group that has been opposed to the project, says it will cut off acres of prime rhino habitat. They had also demanded that KWS disclose all details on ongoing infrastructure developments inside parks and its effects on the wildlife with some raising fears of land grabbing and poaching within the park.

KWS chairman Dr Richard Leakey said that allowing an elevated bridge through the park was the only viable choice.

"Bearing in mind the costs involved and the implications to our economy and the taxpayer, we have the best deal now," Dr Leakey said, adding that the assessment of the project will take two and a half months once the construction begins.

With the construction of the section expected to start immediately, after President Uhuru Kenyatta launches the Nairobi-Naivasha leg of the SGR on September 26, Kenya Railways predicts that it will take up to 18 months to complete the bridge.

"Had we been allowed to do the construction continuously, we would have completed this bridge section in under six months, but with our promise of minimal interruptions, and having divided it into three sections, it will take much longer," Mr Maina said.
 

Specifications

According to the new proposals, the bridge will be 18 metres above the ground, starting from 8 metres at the entrance into the northern side of the park and 41 metres at the exit southern end of the park so as to ensure that the wildlife is protected.

The bridge will also have abutments to be outside the park to prevent human trespass and wildlife escaping. Its pillars to be at least 32 metres apart for unrestricted movement of wildlife in the park

To address the issues raised by conservationists, Kenya Railways and KWS have reached consensus on how the construction will be done, under tight points of mitigations.

Unlike the previous Nairobi-Mombasa SGR construction, where the excavated soil has been dumped elsewhere, at the national park stage it will be levelled within the right of way or disposal will strictly adhere to KWS and National Environment Management Authority guidelines.

"There shall be no construction activity after 6pm and the slurry waste from drilling will be disposed of timely by the contractor to the satisfaction of KWS. At completion of constructions, the sites shall be restored to the satisfaction of KWS," the agreement reads.

ANNOUNCEMENT

goAfrica Holdings Pte. Ltd. today launches goAfrica.io, its online African marketplace.

Multi-faceted, multi-lingual B2B eCommerce and Social Media platforms with leading-edge technology provide powerful online commerce, business intelligence, data analytics, and advertising for those with interests in Africa.

goAfrica's operations support African economies diversifying away from dependency on commodity exports and toward increased local industrialization, food production, services, and job creation – and worldwide companies exporting to or importing from Africa or providing services to it.  Their platforms will provide a high quality experience on all mobile devices – smartphones, feature phones, tablets and laptops –  even if the user encounters low-bandwidth conditions.

"goAfrica is providing a paradigm shift tool for the understanding of, and the fuller participation in, the rapidly evolving and dynamic world of Africa", said Michael Dobbs-Higginson, Chairman of goAfrica.

goAfrica has an international management team and advisory board with decades of on-the-ground experience in Africa, multiple competencies, and longstanding personal and professional relationships in commerce, finance and politics throughout the continent.

goAfrica's mission is to facilitate and simplify the methods of doing business in Africa. It will donate 10% of pre-tax revenues to development and welfare initiatives throughout Africa.

AllAfrica Global Media, goAfrica's media partner, operates one of the Internet's largest public content sites – allAfrica.com, serving an audience of policymakers, leaders of business and industry, international investors, analysts, diplomats and activists – decision takers and thought leaders in Africa and around the world. With over 10 million monthly page views, more people visit AllAfrica than any other site for African news and information.  New content in English and French is added at a rate of 1,000 articles and documents per day to a searchable archive that surpasses four million items.  AllAfrica also distributes to 130 African news organizations and via commercial services, which collectively reach tens of millions of viewers worldwide, and disseminates Africa-related video to hundreds of news-producing television affiliates and publications for seamless viewing by end-users on mobile devices, tablets and desktops worldwide.

Clarity Ventures, goAfrica's eCommerce partner, is building goAfrica's platforms with built-in integration to a robust content management system, a complete set of administrative tools, SEO friendly architecture, reporting and analytics, and backend integration to a line of business applications like Dynamics ERP and Dynamics CRM.

The department of energy was tight-lipped on Friday over the awarding of a tender for the controversial nuclear build programme to the son of a close friend of President Jacob Zuma.

When approached for comment, departmental spokesperson Thandiwe Maimane said by email: "For now the department of energy will not be commenting further on the matter.

The Mail & Guardian reported that Shantan Reddy, the son of flamboyant businessman Vivan Reddy, was the recipient of a R171m contract by the department of energy. The contract appears to be the first transaction in the multi-billion rand nuclear deal, despite earlier assertions Energy Minister Tina Joemat-Pettersson that South Africa has not yet entered into any such a deal. The tender was published on the DoE's website under the category "Awarded Bids". The bid number BAC-10/16 appeared under the heading as well as the company name Central Lake Trading 149, which trades as Empire Technology.

According to the Mail & Guardian, Empire Technology can be traced back to the Edison Power Group – a company owned by Vivian Reddy of which Reddy Jnr is the deputy chairperson.

The DA's spokesperson on energy Gordon Mackay told Fin24 by phone that the tender awarded to Shantan Reddy appears to be for a "system" that will manage the nuclear build project.

Besides the fact that the said contract is highly irregular, as the minister and Deputy President Cyril Ramaphosa maintain there is no nuclear deal yet, it begs the question why the department of energy is getting involved with the build programme, Mackay said.

According to him, the proposed nuclear deal consists of two parts – the transaction itself, including requests for proposals and the preparation of the contracts; and the build programme for which Eskom is responsible.

"If it's not the department's mandate to get involved in the build programme, then why are they awarding a contract for project managing the build programme in the first place?"

Mackay said the contract to Shantan Reddy is also irregular because no money has been allocated for this purpose in Finance Minister Pravin Gordhan's budget. "In the budget this year R200m was allocated to the department of energy specifically for costs around the transaction and preparation for it. A lot of work was done for the request for proposals, but no money was allocated for the build programme. Where does this R171m to Reddy come from?" Mackay said.

Enquiries that the Mail & Guardian submitted to the department of energy revealed that the tender hadn't been advertised, as it formed part of "the Free State tender". It's however unclear why the department would use the Free State tender to issue preparation contracts for such an expensive project, such as the nuclear programme.

Meanwhile, South Africa's nuclear procurement programme would officially kick off on 30 September, which will pave the way for interested parties to submit their tender documents for participation.

Source: Fin24

On September 14, 2016, in Abidjan, the Board of Directors of the African Development Bank (AfDB) approved the Country Strategy Paper for Senegal for the next five years (2016-2020). The new strategy has two pillars: support to agricultural transformation and strengthening of production and competitiveness support infrastructure (energy and transport). The AfDB has pledged an estimated 1.4 million USD in funding for 2016-2020. There are also additional funding possibilities offered throughAfrica50, the Africa Growing Together Fund, and trust funds such as the Global Environment Fund and the Fund for African Private Sector Assistance.

This funding follows on from the AfDB’s operations since 1972. Since then the AfDB has approved a total of 95 operations in Senegal amounting to a total of 1,200 billion CFA francs. The scale of the Bank’s commitment is an example of the robust partnership formed between Senegal and the Bank thanks to more than four decades of cooperation.

The new strategy is aligned with the Emerging Senegal Plan (Plan Sénégal Emergent, PSE), the country’s Development Strategy (2014-2035) and its Priority Action Plan 2014-2018. It is also aligned with the AfDB’s Ten Year Strategy, especially inclusive and green growth with a particular focus on the High 5s: Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve quality of life for the people of Africa. It will support several of the PSE’s flagship projects in the sectors of "agriculture, agro-industry and fishing products", "regional logistics and industrial hub" and "energy and transport". It will also support agro-hubs, the Emergency Community Development Programme, the Regional Express Train, the promotion and modernisation of towns, and the "strategic implementation, monitoring and assessment of the PSE".

Furthermore, as part of the US $1.4-billion pledge, the Board has approved a budget support of US $48.4 million for 2016, aimed at helping the efforts of Senegalese authorities in implementing the Emerging Senegal Plan (PSE), especially the programme to assist local development reform in the country in support of the Emergency Community Development Programme.

By Dorothy Pomerantz

It’s not often that you hear about the virtues of carbon dioxide. CO2 is a gas whose surfeit has turned it into one of the main contributors to global warming. But this October, on the windswept west coast of Norway, one refinery will use some of that CO2 to feed fish.

How does a greenhouse gas turn into something that fish can eat? Through algae.

Scientists at the Technology Centre Mongstad—the world’s largest facility for testing and improving CO2 capture—are trying to use excess CO2 to grow a few key strains of the tiny green organism, which also happens to be a rich source of omega-3, a vital ingredient for feeding farmed fish.

Carbon capture typically involves trapping CO2 underground after it is released from gas and coal-fired plants to stop it from escaping into the atmosphere and warming up the planet. The idea has been around for years, but now scientists are trying to put that CO2 to some use, a bit like turning your leftover food into compost for a thriving garden, instead of throwing it in the garbage.

Experts predict the world’s food production will have to rise 70 percent by 2050 to keep up with a growing population. Fish farming is a great way to grow more protein, but the practice requires omega-3 to feed and produce healthy fish, and omega-3 typically comes from fish oil and by capturing krill. That puts pressure on the marine food chain and is ultimately unsustainable. Scientists hope this new method of recycling CO2 will lead to another, large-scale way of mining the crucial, fatty oil.

The process of growing micro-algae with captured CO2 is essentially photosynthesis on steroids. “The CO2 goes into a tank with seawater and algae mass, and it’s mixed with a bioreactor system,” explains Svein M. Nordvik of CO2Bio, the company set up to run the public- and privately-funded algae-production project in Norway. “There’s a little bit of light and after 10 days, approximately, we have a biomass which we can use for [fish] food.”

Nordvik has been working on this project for six years together with scientists at the University of Bergen located nearby. They have been testing the most promising strains of algae at their lab. “There are 1,000 types of algae, and there are only a few producing omega-3,” he says.

Capturing carbon and using it for things like fish farming might sound like an ideal way to tackle climate change, and the practice is still in its infancy. Scientist from GE Global Research in Niskayuna, New York, are competing to take one their own carbon-capture designs to Mongstad soon. The lab’s chemists Phil DiPietro and Bob Perry have been experimenting with a family of materials called amino silicones, commonly found in bathrooms and laundry rooms in hair conditioners and textile softeners. “Although they are in the same family, I wouldn’t recommend washing your hair or your laundry with the amino silicones we’ve developed,” Perry told GE Reports. “They’re specially formulated to scrub carbon.”

GE Power also just joined the MIT Energy Initiative (MITEI), the school’s hub for energy research, education and outreach. MITEI, pronounced “mighty,” runs eight low-carbon energy centers. Among other things, the centers are “trying to understand the cleanest ways and the cheapest ways to capture carbon dioxide from power plants,” says Robert Armstrong, the MITEI director.

Algae isn’t the only way CO2 can be used for the better. In Norway’s Mongstad Center, scientists are also looking at ways of using carbon dioxide to enhance the production of fertilizers and other chemical production.

By Emmanuel Kendemeh

The Constitutional Court ordered him to pay back the money to the public treasury he spent to refurbish his Nkandla private residence.

South Africa's President, Jacob Zuma has paid back to the State treasury the 542,000 U.S. Dollars he spent to renovate his traditional homestead in Nkanla in the rural eastern province of KwaZulu-Natal, NDTV reports.

The country's highest court, the Constitutional Court found him guilty of siphoning the money from the public treasury and ordered him to pay back to the said treasury 7,814,155 million rand local currency which is the equivalent of 542,000 U.S. Dollars. The money was used to refurbish a swimming pool, a chicken run, a cattle enclosure, an amphitheatre and a visitors' centre. "President Zuma has paid over the amount… to the South African Reserve Bank as ordered by the Constitutional Court of South Africa," NDTV quoted a statement from the presidency. The statement added that the president raised the money through a home loan. Reports say the treasury confirmed separately that the payment had been received. What has come to be known as the "House Scandal" started in 2014 when a report made by the public ombudswoman, Thuli Madonsela, found that Zuma and his family had "unduly benefited" from the upgrade work — valued in 2014 at 216 million rand (then 24 million U.S. Dollars) and ordered him to pay back some of the money. President Zuma reacted by ordering two government investigations that cleared his name, including a report by the police minister which concluded that the swimming pool was a fire-fighting precaution.

In March 2014, the Constitutional Court ruled Zuma had "failed to uphold, defend and respect the constitution as the supreme law of the land". The scandal was well exploited by the opposition leaders who earlier called for the impeachment of President Zuma. It greatly affected the ruling African National Congress (ANC) in the recent local elections as it suffered historic losses, garnering less than 54 per cent in ballot casts and losing councils in major cities.