Mozambique’s Gas Projects Enter Implementation Phase — Database of Press Releases related to Africa – APO-Source

With a second FID in just 2 years, Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come. The latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas. Described by His Excellency President […]

via Mozambique’s Gas Projects Enter Implementation Phase — Database of Press Releases related to Africa – APO-Source

UK aid to boost access to finance for sub-Saharan Africa — Financing for Development in Africa

New UK aid package will help mobilise £500 million in private sector investment and create 50,000 jobs across sub-Saharan Africa. UK aid to mobilise over £500 million of private sector investment, creating over 50,000 jobs in sub-Saharan Africa. The package will support financial start-ups and entrepreneurs and boost economic growth across the region. It will […]

via UK aid to boost access to finance for sub-Saharan Africa — Financing for Development in Africa

Filling the missing pieces: East and Southern Africa partners set targets for collating sustainable intensification data — Africa RISING

Participants group photo during the Africa RISING East and Southern Africa Project review and planning meeting held in Dar es Salaam, Tanzania, 10–11 September 2019 (photo credit: Eveline Massam/ IITA).Earlier this month (10–11 September 2019), the Africa RISING project in East and Southern Africa (ESA) held its annual review and planning meeting in Dar es…

via Filling the missing pieces: East and Southern Africa partners set targets for collating sustainable intensification data — Africa RISING

7th Tokyo International Conference on African Development (TICAD7): Invest in Africa’s food markets to win the war on hunger and boost nutrition – African Development Bank — Database of Press Releases related to Africa – APO-Source

By investing in Africa’s food markets, governments can win the fight against stunting and improve nutrition across the continent. And with support from institutions like the African Development Bank (www.AfDB.org), the results would be a win-win situation for all. “What a huge potential the food markets represent. “Feed Africa,” which is one of the Bank’s […]

via 7th Tokyo International Conference on African Development (TICAD7): Invest in Africa’s food markets to win the war on hunger and boost nutrition – African Development Bank — Database of Press Releases related to Africa – APO-Source

Amidst “record-breaking” production, US government shows appetite to develop industrial dialogue with Africa on LNG — Database of Press Releases related to Africa – APO-Source

With record-breaking US gas production this year, and the promotion of gas as a “cleaner, cheaper” energy source a continued priority for the current White House, the US Department of Energy is now looking towards Africa to develop opportunities in the exploration, production and monetization of LNG. In the words of Energy Secretary Rick Perry, […]

via Amidst “record-breaking” production, US government shows appetite to develop industrial dialogue with Africa on LNG — Database of Press Releases related to Africa – APO-Source

Reliable Electricity is Essential to Economic Development

No Roads and No Electricity: Why Fossil Fuels are Indispensable for Development

I live in the Silicon Valley of India, Bangalore. Except for the tech companies, there aren’t many similarities between Bangalore (now Bengaluru) and the Silicon Valley in California.

I live in the northern part of the city. Roads here remain in an unusable condition. They are worse than any bad road you would find in the U.S. The road leading to my neighborhood—frequented by thousands of cars every day—has remained dug up for more than 400 days now. In fact, reports indicate that around 30,000 roads in the city of Bengaluru remain either dug up or in worse condition.

Electricity infrastructure experiences frequent failures and inability to cope with even a slight drizzle of rain. Power blackouts—like the one that occurred in New York in early July—are an everyday event in many parts of India.

That is an appalling situation even by Third World standards, given that the city is the hub of some of the richest tech companies in the world.

Despite rapid economic development in India, some of India’s biggest cities still lack basic infrastructure and sanitation facilities. One reason is how rapidly its economy has grown—outpacing the growth of its infrastructure.

With 1.3 billion people, India’s developing economy can only achieve infrastructure progress in its major cities by achieving rapid economic progress. The economic progress in turn is primarily dependent on its energy sector. Energy is the backbone of any developing economy.

Ever since the liberalization of its economy in the 1990s, India has progressed by leaps and bounds. The manufacturing and service industries are slowly drawing people away from agriculture.

Many forget that this propulsion of India’s economy in the past three decades, and of any growing economy for that matter, was made possible because fossil fuels have provided energy and improved agricultural outputs: the two key pillars of India’s economy.

Today, India produces more electricity than required, but the transmission infrastructure is far behind the standards of developed countries. Fossil fuel provides more than three-fourths of the country’s energy. Fossil fuel-based fertilizers and pesticides have helped the country produce enough food for domestic consumption and export.

Twenty years ago, everyone I knew was aware of the fact that coal is one of the major solutions to our energy problems. We were right.

Today, coal is not only the country’s largest contributor to electricity, it is also the cheapest and most abundant source, resulting in uninterrupted power supply in places that have good grid infrastructure.

Our infrastructure—including transport and other public utility systems—will improve only as our economy continues to use the coal reserves, the existing oil resources, and the newly discovered natural gas reserves.

India’s defiant embrace of fossil fuels, despite pressure from anti-fossil establishments, gives hope to residents like me who can dream about a future with drivable roads and uninterrupted power supply.

Featured image by John Fornander on Unsplash.

Africa Oil Week and Menas Associates release Africa Oil and Gas Outlook for 2019 — Database of Press Releases related to Africa – APO-Source

A report released by Africa Oil Week (www.Africa-OilWeek.com) and Menas Associates about what lies in store for Africa’s oil and gas industry has concluded that, on balance, the continent’s economic performance is promising, particularly as global oil markets finally recover from their 2015-2016 lows. Africa’s proven oil and gas reserves respectively account for 7.5% and […]

via Africa Oil Week and Menas Associates release Africa Oil and Gas Outlook for 2019 — Database of Press Releases related to Africa – APO-Source

Investment Opportunities in Africa

African Economic Development through Foreign Investment

Rand Merchant Bank report, “Where to Invest in Africa,” among other business information services, ranks African countries for their business environment including ease of doing business and a corruption index to help foreign and domestic investors identify good investments. Most of the data comes from UNCTAD, UN Conference on Trade and Development, or other public sources but is compiled to help potential investors. Rand Merchant Bank is an investment bank headquartered in South Africa. RMB “Where to Invest in Africa” brochure can be downloaded without charge by those seriously interested in learning about investing in Africa  at https://www.rmb.co.za/where-to-invest-in-africa-2018-edition/

African Development Bank Group is another source of economic and investment information, among other sources. You can download the brochure “African Economic Outlook 2018” for free at https://www.afdb.org/en/knowledge/publications/african-economic-outlook/. In addition to private investment and business information services, you can find financial information about any countries or regions through the International Monetary Fund, IMF, at www.imf.org, the World Bank, at www.worldbank.org and UN Conference on Trade and Development, UNCTAD, at http://unctad.org, which publishes an annual World Investment Report. Most of the information in the private investment and financial databases are summaries from one of these public sources.

Personal remittances that immigrants send back home are an important cash flow into the economy for most of the countries in Africa. Remittances to families in the impoverished areas benefit the most from it, but it helps the overall economy. Let me give you an example closer to home.  Mexico officially receives $26.1 billion in remittances sent back to families by Mexican immigrants, mostly from the United States. That’s roughly 2.5 percent of Mexico’s GDP, which is a significant contribution to the country’s economy. Generally, remittances have been on the rise since 2000 worldwide due to increased migration from poor countries to developed countries. For this reason, it is beneficial for developing countries to encourage migration.

Sampling of Top 500 Companies and Organizations that Invest in Africa

 

 

Table 1: Top Ten Recipients of Foreign Direct Investments in 2016

Country Percent of Total Foreign Direct Investments Year Over Year Percentage Change
1 Angola (US$14.4bn) 24.2% -11.2%
2 Egypt (US$8.1bn) 13.7% 17.1%
3 Nigeria (US$4.4bn) 7.5% 45.2%
4 Ghana (US$4.4bn) 7.5% 45.2%
5 Ethiopia (US$3.2bn) 5.4% 45.7%
6 Mozambique (US$3.0bn) 5.2% -20.0%
7 Morocco (US$2.3bn) 3.9% -28.7%
8 South Africa (US$2.3bn) 3.8% 31.3%
9 Congo (US$2.0bn) 3.4% 7.5%
10 Algeria (US$1.5bn) 2.6% 17.1%

77.2 percent of all FDI in Africa is included in these top ten countries. Countries suffering from violence and political unrest account for the reductions in the table above.

Source: UN Conference on Trade and Development, (UNCTAD)

 

“A number of emerging and developed markets acquired a keen eye for African assets in 2016, with capital investments from the Asia-Pacific region firmly outpacing traditional markets . . . Egypt, South Africa and Tanzania were among the largest destinations for Chinese and Japanese investors seeking strategic investments in technology, media and telecommunications (TMT), diversified industrial products (DIP), and the automotive and business services sectors.”                         — Rand Merchant Bank, Where to Invest in Africa, 2018

 Table 2: Top Ten Investors in Africa in 2016

Country Investment
1.      UK US$ 66 billion
2.      US US$ 64 billion
3.      France US$52 billion
4.      China US$32 billion
5.      S. Africa US$26 billion
6.      Italy US$19 billion
7.      Singapore US$17 billion
8.      India US$15 billion
9.      Malasia US$14 billion
10.  Germany US$13 billion

Source: UN Conference on Trade and Development, UNCTAD

 

Table 3: Top Ten Most and Least Corrupt Countries in Sub-Saharan Africa

Rank worldwide Most Corrupt Score Rank worldwide Least Corrupt Score
176 Somalia 10 35 Botswana 60
175 South Sudan 11 38 Cape Verde 59
170 Sudan 14 50 Rwanda 54
168 Guinea-Bissau 16 50 Mauritius 54
164 Eritrea 18 53 Namibia 52
164 Angola 18 62 São Tomé and Principe 46
159 Republic of Congo 20 64 Senegal 45
159 Chad 20 64 South Africa 45
159 CAR 20 70 Ghana 43
159 Burundi 20 72 Burkina Faso 42

Source: Transparency International, Corruption Perceptions Index 2016

 

Table 4: Leading Mineral Production in Africa

Material Percent of world production Countries
Diamonds 73% Botswana 35%, Congo (Kinshasa) 34%, South Africa 17%, Angola, 8%
Gold 89% South Africa 56%, Ghana, 13%, Tanzania, 10%, and Mali, 8%
Uranium 16% Namibia 46%, Niger 44%, South Africa less than 10%
Bauxite (for aluminum) 9% Guinea 95%, Ghana 5%
Steel 2% South Africa 54%, Egypt 32%, Libya 7%, Algeria 6%
Aluminum 5% South Africa 48%, Mozambique 32%, Egypt 14%
Copper 5% Zambia 65%/77%, South Africa 15%/19%, Congo (Kinshasa) 13%/0%, Egypt 0%/3%
Platinum/Palladium 92% South Africa 97% / 96%
Coal 5% South Africa 99%

Source: Wikipedia “Mineral Industry in Africa”

 

Figure 5: Top Five of the Twenty-nine Stock Exchanges in Africa

Exchange Market Capitalizations Number of Listings
1. Johannesburg Stock Exchange (JSE) $987 billion 388
2. Nigerian Stock Exchange (NSE) $44 billion 176
3. Egyptian Stock Exchange (EGX) $46 billion 222
4. Casablanca Stock Exchange (Casa SE) $48 billion 75
5. Namibian Stock Exchange (NSX) $76 billion 36

Source: © Copyright 2018| Nairametrics

 

Table 6: Intended use of selected sovereign bond issues in selected African countries

Country, Year Value

(M US$)

Intended Use
Côte d’Ivoire, 2014 750 Public investment, especially in health care and education
Côte d’Ivoire, 2015 1,000 National Development Plan (NDP), which focuses on infrastructure, education, health care, and poverty reduction
Ethiopia, 2014 1,000 Infrastructure, notably the Renaissance Dam
Ghana, 2013 750 Capital expenditure and refinancing of public debt to reduce the cost of borrowing
Kenya, 2014 2,000 Infrastructure projects and repayment of a $600 million loan that matured in August 2014
Nigeria, 2013 1,000 Projects in the electricity sector, which is undergoing privatization, and support of the shift from domestic borrowing toward cheaper foreign credit
Rwanda, 2013 400 Construction of a 28-megawatt hydropower plant, construction of a hotel, and payment of some state-owned RwandAir debt
Senegal, 2014 500 Construction of a major highway and the upgrading and repair of energy infrastructure

Source: AfDB compilation, based on various sources.

“African Economic Outlook 2018,” African Development Bank

The new hope for Africa involves improving infrastructure, attracting foreign and domestic investment, and ending internationally funded government corruption that discourages investment and permits interference by international programs that keep populations low and the rural poor isolated, ignorant, sick and helpless. Governments that rely on taxes from a growing economy are more accountable to the people, so that they will be prompted to develop infrastructure, such as roads and electricity, and maintain political and economic stability, all of which will encourage increased investments and grow the economy. Corruption is the number one deterrent to global investment, so it is important to end foreign aid that props up corrupt politicians, clean up the government and stabilize the economy.

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Focus on achieving wider impacts and building resilience for larger populations, Africa RISING urged — Africa RISING

The Africa RISING program should keep working towards achieving wider impacts and building resilience for larger populations, USAID Bureau for Food Security program leader for sustainable intensification, Jerry Glover, has said.

via Focus on achieving wider impacts and building resilience for larger populations, Africa RISING urged — Africa RISING

Adopting good agricultural practises was the game changer I needed! — Africa RISING (Research in Sustainable Intensification for the Next Generation)

Embracing good agricultural practices in lessons from the project has turned around the fortunes of Method Magoda, a 39-year-old farmer from Utengule Village in Kilolo District, Tanzania.

via Adopting good agricultural practises was the game changer I needed! — Africa RISING