Tag Archives: Policy

Top Finance News Africa 2017

Below is the latest Africa Finance news aggregated from top  business and news portals  for 2017.

http://www.africanbusinesscentral.com/

Kenyan President Uhuru Kenyatta recently laid the foundation stone for what will be the tallest building in Africa in the Upper Hill neighborhood of Nairobi. Construction is underway at the development site, and slated for completion by December 2019.

The ambitious project will see twin glass-facade towers rise above the city, the larger standing at 300 meters tall, far surpassing the continent’s current leader — Johannesburg’s 223-meter Carlton Centre.

Work begins on the tallest skyscraper in Africa

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This year’s G20, led by Germany’s Chancellor Angela Merkel, should be commended for prioritising African development.

Africa is home to all ten countries with the highest fertility rates in the world and this population boom will further strain governments already struggling to meet the needs of their people.

An estimated 22.5 million jobs per year will need to be created to meet the demand of this African youth explosion, a demographic with the same energy, dynamism and ambitions as their peers in developed nations.

They can show their commitment to a true partnership with Africa by delivering game-changing EU anti-money laundering regulations that prevent the criminal and corrupt from hiding behind anonymity and stealing Africa’s future from its people. Because failure to do so could undermine all their other efforts to help Africa prosper.

Op-ed: Nigeria’s Acting President Yemi Osinbajo to G20: It’s time to move beyond pledges to back Africa’s future

 

 

https://www.bloomberg.com

South Africa’s ruling party has proposed that the central bank should be wholly state-owned rather than an institution with private shareholders.

The move opens a second front challenging the central bank’s established status just two weeks after Public Protector Busisiwe Mkhwebane attempted to instigate a change in its mandate. She instructed Parliament to amend the constitution to make the Reserve Bank focus on the “socioeconomic well-being of the citizens” rather than inflation, prompting a drop in the rand as investors viewed her action as a threat to its independence.

 

https://www.bloomberg.com/news/articles/2017-07-05/south-africa-s-anc-said-to-propose-central-bank-be-state-owned-j4qwo8ka

 

Japanese investment in Africa

Japan  to increase investment in africa

According to various reputable forecasters, the African economy is expected to grow by more than five percent during 2012/13, while its total Gross Domestic Product (GDP) is expected to reach US$2.6 trillion by the year 2020.

Japan is keen to invest “billions of dollars” in minerals and infrastructure in Africa, trying to catch up to regional rivalChina for influence on the continent, a Japanese trade officials have commented.

japanese investmetn in africa

Japanese trading firms such as Mitsui & Co, Mitsubishi Corp and Itochu Corp have been in Africa for years.

Japan is currently among  the top 5 as South Africa’s trading partner, with two-way trade of nearly R90-billion recorded in 2011. The balance is also in South Africa’s favour, with exports to Japan in 2011 having been R55.6-billion as against imports of R34.3-billion.

Japan is already participating in a uranium project in Namibia and manganese and platinum projects in South Africa. (Editing by Jon Herskovitz and Keiron Henderson)

Kenya sets new law of 35 % local ownership for new mining projects

Prof Muigai’s verdict is good news to Australian mining company Base Titanium, widely regarded to have been the target of a small cabal of top government officials who have been pushing for the 35 per cent local equity participation rule. Base Resources, the Australian firm mining titanium in Kenya’s Coast, has valued 35 per cent of its local operations at $150 million (Ksh12.8 billion).

kenya mining and oil n gas laws policy emblem

Who is – Githu Muigai – from Wikipedia, the free encyclopedia

Githu Muigai (born 1960) is the Attorney General of The Republic of Kenya. He holds a bachelor’s Degree in Law degree from the University of Nairobi, a masters degree in International Law from Columbia University School of Law. Prior to becoming Attorney General Githu Muigai has served in the defunct Constitution of Kenya Review Commission and at the United Nations as Special Rapporteur on contemporary forms of racism, racial discrimination, xenophobia and related intolerance.

Prof. Githu Muigai

Prof. Githu Muigai from  http://www.softkenya.com

A gazette notice issued in September by Environment Minister Chirau Ali Mwakwere directed that mining companies cede 35 ownership to local investors. Mining firms and overseas companies have been given a grace period of between three and five years to comply.

New laws at a glance

  • The regulations were welcomed  by locals  who saw this as a way to  benefit from the mining  profits generated by the foreign mining companies , who see it as arm twisting to share their profits.
  • Mining activity has picked up in Kenya recently, however the majority of companies are still at the initial stages, having been issued only with prospective licences.
  • Prof Muigai has clarified that only licences issued after the gazette notice, will b e affected by the 35 per cent local equity participation requirement.

Referred to as the “Mwakwere rules” and introduced by Environment Minister Ali Mwakwere. The one problem that this  new law  will bring about for foreign companies is , will the locals but into their shares or have the money to buy into their shares  thus giving them the 35 % for approval.

Who is  – CHIRAU MWAKWERE

Amb. Chirau Ali Mwakwere – Kenyan Minister of Environment

Chirau Mwakwere

From : http://www.whoswho.co.ke/chirau-mwakwere

Amb. Chirau Ali Mwakwere is the Kenyan Minister of Environment. He previously served as the Kenyan Minister of Transport

In comparison , Botswana with one of the most established mining sectors — and reputed to have the most liberal mining codes — the threshold for local shareholding of mining companies is 13 per cent.

Oil and gas exploration in kenya

The oil and gas industry is also going through change , with the  Ministry of Energy hopes to introduce the regulations under the reviewed Petroleum Exploration and Production Act by mid 2013. For oil and gas exploration, Acreage will now be awarded to the highest bidder who offers the best terms to the government and agrees to pay requisite fees. This exercise will be carried out publicly, replacing the current system where exploration rights are issued on a first-come first-serve basis.

By introducing competitive bidding, Kenya will join the ranks of countries like Tanzania that already have the system. Uganda plans to have a bidding process as well.

The africa future Business boom

In Africa , Djibouti is growing fast  and has launched massive construction and development projects. It is said to become the new business and trade hub of the Horn of Africa region. Business in Africa is growing at a rapid pace

Rapidly growing buildings with modern building complexes and futuristic office buildings  are adorning the landscape in Djibouti. The Africa business landscape ifs definitely moving fast and quick which will be soon competing with Canada and Australia

Africa Future of business

africa business story future boom

Australia and Africa are vast continents of climatic extremes, from deserts to tropical rainforests. Africa has a wealth of natural resources. Africa  has 60 per cent of the world’s uncultivated, arable land and it has 12 per cent of the world’s petroleum and 30 per cent of the planet’s known mineral reserves. Africa is either first or second by share for known reserves of platinum, diamonds, cobalt, gold and bauxite.

Investment into Africa is now booming.

The lack of basic infrastructure is the biggest impediment to economic development in Africa. The lack of suitable buildings, transport links and power and water supplies in most parts of the continent makes it virtually impossible for the emergence of modern economies.

Us investing in Africa business

Wall Street-listed companies are investing more on the continent with each passing week.

Diageo (DEO:US)

(P/E Ratio: 22.8; P/B Ratio: 7.4; Dividend Yield: 2.1%)

GE (GE:US)

(P/E Ratio: 16.2; P/B Ratio: 1.8; Dividend Yield: 3.4%)

Moneygram (MGI:US)
Sanofi (SNY:US)

(P/E Ratio: 13.5; P/B Ratio: 1.4; Dividend Yield: 4.5%)

Few corporations have a longer history in Africa than Siemens. It first got down to business on the continent in 1857. In 2010, its South African sales totaled $767 million. Nigerian revenue came in at $124 million.