OctoberFirst Business Opportunities Newsletter, August 2010

On August 1st, 2010, posted in: News, newsletter by
Welcome to OctoberFirst Consulting’s newsletter. Inside you’ll find articles and information on investment opportunities in Africa. Should you wish to discuss these further, do contact us.
This newsletter is published by Mr Frank Aneke, OctoberFirst Consulting, PO Box 83, Liverpool NSW 1871, Australia.
Telephone +61 (02) 9773 6672, email info@octoberfirst.com.au
This publication is supplied for information purposes. Some articles in this publication have been supplied by third parties and OctoberFirst Consulting does not take responsibility for any inaccuracies in these articles.

In this issue….Agribusiness.

Zimbabwe: Farmers Urged to Venture Into Agro-ProcessingUganda: East Goes Fish FarmingTanzania: Allow Rice Exports to Tame Glut And Enrich Farmers

Environment & Renewable

West Africa: ECOWAS Adopts Wade’s Solar Energy Initiative,Nigeria: American Company to Establish Waste-to-Energy PlantSouth Africa: Renewable Energy Key to Sugar’s Viability

Telecoms & ICT

Nigeria May Become Leading Supplier of Bandwidth in Sub-Saharan Africa Tanzania: Eassy Sub-Marine Cable Set to Go LiveAfrica: Continent in the Limelight As Mobile Phones Promise More Growth

Mining & Energy

Zimbabwe: Country to Invite Energy Sector InvestorsEthiopia Plans Power Exports to SudanZambia to Meet Rising Demand for Power from Minesd

New Investment & Trade

Germany to Execute 19 Power Projects in NigeriaAfrica: AfDB eyes doubling Africa infrastructure funding to $10 blnEgypt Planning $1 bln Tunnel under Suez Canal

Interview of the Month

After 80 years of lies, Africa did not fail – Jordaan

Country Stats: Burkina Faso


Zimbabwe: Farmers Urged to Venture Into Agro-ProcessingHarare — FARMERS have been urged to venture into agro-processing to complement proceeds from the agricultural activities.

In an interview during the first-ever Zimbabwe Adding Value to Produce and Sustainable Agriculture Produce Fair at the Exhibition Park recently, FAO assistant director in Zimbabwe Mr David Mfote said while farming provided part of the family’s needs for food, there was need for cash to cover other expenses like school fees and medical costs.

“Additional income generating opportunities are therefore needed to support thousands of families who cannot support their livelihoods from the land alone.

“The problem they all face is that opportunities for off farm employment in rural areas are limited,” Mr Mfote said.

A total of 90 smallholder farmers from UMP, Mutoko, Mudzi, Muzarabani, Chiweshe, Mbire, Goromonzi, Chinamhora and many other places in the Mashonaland East, Central and West Provinces showcased their agricultural processed products.

These included dried fruits, vegetables, herbs, peanut butter, cooking oil and honey, sweet potato juice and jam, cowpea meatballs, sorghum bread, vegetable and fruit chutneys, among many others.

Mr Mfote said agro-processing to primary agricultural produce and selling processed products offered many opportunities.

“These include an increase in productivity and crop diversification, increase in the nutritional value of the diets of farming families; generation of extra income and the stimulation of the local economy.

“Agro processing can reduce wastage, enhance food security, improve livelihoods for low-income groups and empower women,” he said.

Mr Mfote, however, said local farmers involved in processing were facing challenges in meeting the required quality and quantity at the market and were also facing stiff competition from imports. One of the organisers, Volens Africa communications facilitator, Mr Thomas Pouppez was satisfied with the turn out.

He added that there were plans to make the fair an annual event so that small holder farmers will have the opportunity to show case their produce, market and learn from their fellows from different part of the country.

Uzumba Maramba Pfungwe farmer, Mrs Cecilia Rabu trained under the Cluster Agricultural Development Services said training had enabled her to earn a living apart from preparing different nutritious dishes.

It was noted that these farmers required equipment to improve production.

ZAVSAP promotes growing of traditional and better-suited crops in the Mashonaland Provinces focussing on crops such as small grains, sweet potato, cassava and legumes.

Source: The Herald    Image: i680.photobucket.com


Uganda: East Goes Fish FarmingDavid Ssempijja

Kampala — The eastern region will be turned into a fish farming zone. The move is aimed at eradicating poverty through full utilisation the area’s water resources.

“The Government will help farmers in various regions, but each region has to concentrate on a farming activity in which it has a comparative advantage to qualify,” said Fred Mukisa, the fisheries state minister.

The east is endowed with a lot of underground water and a large number of the population in the region lives along the shores of Lake Victoria.

Mukisa was speaking at the commissioning of the Last Chance Fish Farm Project at Kigandaalo sub-county headquarters in Mayuge recently. The project is a community-based fish farmers’ group with 300 members.

“The economy will suffer if people near water bodies can no longer carry out economic fishing because of the reduced catches from the lakes and rivers. This is why we have to stimulate large-scale commercial fish farming,” the minister explained.

Mukisa disclosed that the Government would give farmers fingerlings and equipment to excavate ponds, appropriate technology and also train personnel before the programme starts early next year

Mayuge, Bugiri, Butaleja, Iganga, Sironko and Manafwa distritcs will be the project’s initial beneficiaries. Some farmers would be trained locally, while others would undergo training in Egypt, the minister added.

Egypt is Africa’s role model in fish farming. It produces 0.6 million tonnes of farmed fish annually compared with Uganda’s 0.5 million tonnes of both wild and farmed fish.

The Government, the minister said, has completed the construction of 10 out of the 30 coldrooms proposed for different landing sites across the country. Each coldroom has the capacity of handling over 5.5 tonnes per day.

Samson Higenyi, the Last Chance Fish Farm director, said fish farming would eradicate household poverty and improve nutrition. Uganda’s fish industry employs over 500,000 people directly and contributes to the livelihood of nearly 1.5 million people in the country.

Source: The New Vision      Image: sarnissa.org


Tanzania: Allow Rice Exports to Tame Glut And Enrich Farmers

Editorial

There is good news emanating from one of the areas that are famous for growing paddy. Farmers in Moshi District, have produced so much rice that they cannot find a market for the surplus.

Production of rice in the area has doubled, from an average of three tons per hectares a few years back to six. Over the same period, there has also been an increase in area of land under cultivation at the Lower Moshi Rice Project, from 300ha to l,600ha presently.

Besides Moshi, there is Mbeya, where production of rice at the Kapunga Rice Irrigation Farms Project has increased from 284 tons in the 2005/06 harvesting season to 2,115 tons in 2008/09. That is an increase by a whopping 644.72 per cent. Indicators show that production will increase four-fold to reach 8,500 tons this harvesting season.

The success stories of the two rice projects is in keeping with the emphasis placed on irrigation farming in the government’s Kilimo Kwanza (Agriculture First) drive.

But then, there is a paradox in this scenario. Why, while farmers in the Moshi are now lamenting over the lack of a market for their rice, there are times when this country has had to import foodstuff, including rice, to plug shortage facing various areas.

The success of the two projects is a clear indication that the government’s emphasis on irrigation farming is sure to bring about bountiful food production.

We suggest that in situations such as that obtaining in Moshi, the government should allow – and facilitate – the export of surplus food as requested by the rice farmers.

Rice, Tanzania’s most important staple after ugali, is certain to find a ready market in Kenya where it is also a popular food, as well as other East African countries. This would, in any case, augur well with the spirit of EA Common Market that is meant to allow free movement of goods within the regional bloc, not to mention of increase in Tanzanian farmers’ incomes.

Source: The Citizen (Dar es Salaam)      Image: landcoalition.org


West Africa: ECOWAS Adopts Wade’s Solar Energy Initiative

Onyebuchi Ezigbo

Abuja — The Heads of State and Government of ECOWAS have endorsed an initiative by President Abdoulaye Wade of Senegal that will enable the region harness its solar energy potentials through the construction of solar power plants that will provide cheap energy as a complementary source for meeting West Africa’s energy needs.

The endorsement came after a presentation by Wade to the just-concluded 38th ordinary summit of regional leaders in Sal, Cape Verde in which he cited the abundance of sunshine and possession of the largest desert in the world as justification for West Africa to tap into these virtually free resources to meet its energy needs and ensure they are not wasted.

He had explained that such power plants could be constructed without huge budgetary provisions but through “financial arrangements” to be proposed to regional leaders after on-going studies.

In a “special resolution on solar energy,” released after the summit on 2nd July 2010, the Heads of State and Government acknowledged the potential of this resource in a region where fossil fuel remains the prevalent source of generating energy.

It mandated the Senegalese President to pursue the proposed solar power plants project for the region in order to ensure its self-sufficiency in clean and cheap solar energy.

A statement issued by the ECOWAS secretariat noted that the region has one of the lowest energy consumption rates in the world with only 20 per cent of households having access to electricity.

The secretariat said the region had only exploited 16 per cent of its 23,000 MW large scale hydro power potential.

As part of efforts to shore-up support for Wade’s initiative, the regional leaders urged each member state to attach technical and financial experts to Wade ‘in view of establishing the Commission on solar power that shall operate under his chairmanship and authority.’

Furthermore, they urged member states to facilitate Wade’s work by instructing all institutions involved in solar energy in the region to provide him with all the statistical information needed for the successful conclusion of the study.

The ECOWAS Commission and Wade are to work in close collaboration to ensure the success of the venture.

Source: Thisdayonline, Nigeria                Image: 4.bp.blogspot.com


Nigeria: American Company to Establish Waste-to-Energy Plant

Mustafa Abubakar

Ilorin — An American company, Power House Energy Africa has concluded arrangement with the Kwara state government to establish a waste-to-energy plant for the generation of power from household and industrial wastes.

Unveiling the plan for the plant in llorin at a formal demonstration, the President of the company Mr. Femi Ogun, said the plant would be established under the state’s Public Private Partnership Initiative Program. Ogun said the company will make use of an environment-friendly pyromex Ultra-High Temperature Gasification Process, an induction system similar to the microwave technology instead of the burning process.

“The plant would use sustainable means to generate power by making use of common household and industrial wastes such as foodstuff, plastics, human and animal excreta, tyres and sewage waste.

He assured the state government that the plant would not lead to any pollution and required low investment, operating and maintenance costs and the government can later purchase the company or enter into an agreement with it on financing it after a takeover.

Responding , the Commissioner for Energy, Alhaji Mohammed Zakari lauded the firm for its initiative and expressed the government’s commitment to the evolution of solutions to the state’s energy problems.

Source: Daily Trust Nigeria   Image: img99.imageshack.us


South Africa: Renewable Energy Key to Sugar’s ViabilityEdward West

Johannesburg — THE sugar industry views expansion into renewable energy, such as through power co-generation and the production of ethanol, as essential for the long-term viability of its growers and millers.

Given SA’s increasing power requirements, the National Energy Regulator of SA’s recent price determination for three years is aimed at sparking co-generation projects. Eskom will have R2,3bn to buy private power this year, R4,3bn next year and R5,8bn in 2012.

The white paper on renewable energy sets a target for 2013 of about 4% of the projected electricity demand for that year.

Energy generation accounts for about 60% of global carbon dioxide emissions from human activity, and many states are trying to diminish its effect on the environment by trying to reduce emissions and limit their effect on climate.

Other big sugar producers such as Brazil and India have made big investments to produce more ethanol, which can be made from sugar cane and is deemed more environmentally friendly than petroleum fuels.

All fuel for cars in Brazil requires a minimum 20%-25% blend of ethanol, while the Indian government has given loans to sugar mills over the past three years to increase ethanol production.

A South African Sugar Association spokesman says the domestic sugar industry has done most of the research required into biofuel production from sugar but no new developments are taking place, principally because the policy environment is still being developed. SA’s biofuels industrial strategy aims for an average liquid fuels penetration of 2% by 2013, a reduction from an earlier target of 4,5% as food security concerns led to the banning of maize for biofuels. Crops under consideration include sugar cane, sorghum, sunflowers and soybeans.

Tongaat Hulett CEO Peter Staude says in the sugar, starch and property development group’s annual report, SA has limited agricultural potential to supply a significant portion of its petrol from ethanol. Many other Southern African Development Community countries have good agricultural potential but limited markets. The full community has the market and agricultural potential to emulate the proven business model of supplying ethanol to the fuel market.

Mr Staude says every 10% of the South African fuel market supplied by ethanol would be equivalent to a new sugar industry requiring 2,2- million tons of sugar a year, creating 110000 additional jobs and producing sufficient electricity to replace the supply from a third of a big coal-fired power station.

Tongaat Hulett Sugar co- generates electricity to supply the national grid at the Felixton, Amatikulu and Maidstone mills.

The group’s sugar mills in southern Africa, operating at full capacity, have the potential to generate 660MW of electricity if they were to utilise all the bagasse – the crushed residue of sugar cane, after juice extraction – and two-thirds of the tops and trash from cane supplied to the mills.

This would have the benefit of saving 2-million tons of coal a year and reducing carbon dioxide emissions by 4,25-million tons in a season, says Mr Staude.

A focus of ethanol production at Tongaat’s expanded Moamba operations in southern Mozambique will be on its sale in Southern African Development Community states as part of an emerging biofuels strategy.

And an expansion at Tongaat’s Felixton mill, about 160km north of Durban, is dependent on a decision by the energy regulator to determine tariffs for electricity generation from bagasse.

Illovo spokesman Chris Fitz- Gerald says the group, SA’s biggest sugar producer, has been an interested applicant in Eskom’s independent power producer schemes, but the terms fall short of the group’s investment parameters.

Illovo chairman Robbie Williams said at the annual meeting recently that it planned to commission its Ubombo factory expansion and co- generation project in Swaziland at the start of the 2011-12 season. The project increases sugar production and power generation capacity.

It would enable the factory and estates to become self-sufficient in electricity. There is an agreement with the Swaziland Electricity Company to supply power into the national grid for 48 weeks a year.

Pre-project activities are at an advanced stage in Mali for Illovo to produce sugar, ethanol and generate electricity for its own operations, with additional capacity to export power into the national grid. Co-generation is also being assessed in Malawi and Tanzania.

Source: Businessday South Africa      Image: greencon.co.za


Nigeria May Become Leading Supplier of Bandwidth in Sub-Saharan Africa by Frankline SundayBen Uzor

Etisalat goes live on MainOne

Nigeria may indeed be positioning herself to becoming the most important supplier of critical international bandwidth in sub-Saharan Africa, analysts have said. Given the number of submarine cables expected to berth on the country’s shores in 2011, industry experts say that Nigeria could provide the broadband capacity needed to expand internet access in the region. According to them, Nigeria’s imminent bandwidth boom has created a viable opportunity for telecommunications companies (telcos) operating in the country to generate significant revenue from supplying bandwidth to other countries in the sub-Saharan region that are heavily dependent on expensive satellite (VSAT) communications.

Meanwhile, MainOne Cable has announced Etisalat as the first telecommunications company to switch on its network on the strength of the cutting-edge technology recently launched in the country by MainOne. Etisalat also announced that new and existing customers on Etisalat network are set to enjoy enhanced service as the innovative telecommunications company is now live on the submarine fibre optic cable system. Etisalat CEO, Steven Evans said that with the latest technology, customers on Etisalat network will have the benefit of increased broadband and enhanced data services.

BusinessDay gathered that over 11.2 terabits of bandwidth would be available to the Nigerian market by 2011. The bandwidth boom is being powered by West African Cable System (WACS) – an initiative operated by nine countries (including Nigeria’s MTN Group), which comes with a high capacity submarine cable system linking Europe, West Africa and South Africa, and will provide over 3.8 terabits per second of bandwidth.

Furthermore, Glo-1 which is ready for commissioning and has customised services to address the requirements of a wide segment of clients – including telecommunications operators, oil and gas companies, manufacturers, education and medical institutions, will provide 2.5 terabits of bandwidth.

In addition, Main One’s commercial director, Bernard Logan, has announced plans for the provision of outstanding 4.92 terabits per second of bandwidth. The outstanding provision will push well above the broadband capacity of existing competitors. Lanre Ajayi, president, Nigerian Internet Group (NIG), who spoke to BusinessDay on telephone, said Nigeria could become the number one supplier of international capacity in Africa if more competition is encouraged in the cable market.

“We already have two cables now. We are expecting more, WACS and ACE cables are expected to berth in the country in 2011. With this, I can say that Nigeria will become one of the leading suppliers of bandwidth in Africa, outside South Africa. Presently, South Africa has an advantage over us because they have a number of cables coming in from the east and west coast. I think we still need to encourage more competition in the industry for us to achieve that pinnacle of success”, he explained.

Echoing the same view, Kenneth Omeruo, an internet analyst, stated: “If more cables continue to land in the country, then Nigeria will attain that height. You see, most of these cables coming into Nigeria will provide wholesale bandwidth to neighbouring African retail carriers who will buy a portion of bandwidth and also sell this capacity to end-users. These end-users will, in turn, be able to access the internet at international broadband speeds and at more affordable prices, creating a wealth of opportunities for important sectors such as education, healthcare and government services”.

Giving further isight into the complexities inherent in the submarine cable market, Emmanuel Ekuwem, former president of the Association of Telecommunications Companies of Nigeria (ATCON), pointed out that the possibility of Nigeria reaching that position would depend strongly on sound business plan and heightened investments in fibre optic cable infrastructure. “Nigeria can only supply countries on the coastline. But for countries in land-locked areas like Burkina Faso, Cameroon, Niger and Chad, the question will be how to push the bandwidth to the hinterlands. Glo 1 and Main One will definitely be looking at doing business with telecom companies (telcos) in these countries. But this will also imply that huge investments will be made in VSAT technology and cross-national terrestrial fibre backbone. I know most telcos will want to stick with fibre than satellite technology, therein lies the problem.

“Telecommunications companies in Nigeria will have to get licenses to offer these services. They will have to partner strategically with the telecom companies in these African countries. Besides, it will be cost effective for these countries to leverage on these emerging cable systems like Main One and Glo -1 than to make huge investment in laying a cable from Europe to their respective countries. It all boils down to proper business plan and further investment in cable infrastructure”, he explained.

Muhammed Rudman, chief executive officer, Internet Exchange Point of Nigeria (IXPN) who spoke to BusinessDay was stoutly in support of Ekuwem’s view that Nigeria’s prospect of becoming a leading supplier of international bandwidth capacity in sub-Saharan Africa will depend on investments in cross-border fibre networks. “This could be possible if Nigeria becomes more proactive and starts to invest in terrestrial transmission cables that can service landlocked countries in the region. This is very critical because most of these cables will have landing points in some of the countries on the region.”

Source: Businessday Nigeria                Image: nation-branding.info


Tanzania: Eassy Sub-Marine Cable Set to Go Live

Austin Beyadi

Dar Es Salaam — CONSTRUCTION of the East Africa Sub marine cable system (EASSy) has been complete and the facility will go live soon, Zantel Wholesale and Roaming Director Nahaat Mahfoudh told the ‘Daily News’ on recently.

He said construction started in Maputo, Mozambique in December 2009 and landed in Dar es Salaam in April 2010. EASSy becomes the second undersea fibre optic cable to land in Tanzania after SEACOM which is currently operational.

The cable has been formally handed over to the West Indian Ocean Cable Company (WIOCC) board by the Alcatel sub-marine networks — the sub-contractors. WIOCC is the largest investor in EASSy with 29 per cent shareholding.

The cable constructed by a consortium of telecommunications companies offers a direct route to Europe, Asia and the Middle East and is the largest cable system in sub Sahara Africa. Zantel is the local investor through its shareholding in WIOCC.

Experts say EASSy would increase competition for internet connectivity in the country and region with the possibility of reducing tariffs. Mr Mahfoudh explained that all was now in place to go LIVE. “All the testing had been done and we are fully operational.

We also held a pre-sale symposium to local network operators to explain to them advantages of the cable,” he said.

The EASSy cable has the capacity to deliver 1.4 terabytes per second, making it the largest submarine cable system serving the continent. He said that the cable which is in nine countries will offer transit connection through backhaul networks to at least 12 landlocked countries roviding the greatest area coverage.

“‘EASSy will be the first east coast system to connect a direct route to Europe, making it the lowest latency system for traffic to key internet peering points in Europe and North America,” explained Mr Mahfoudh.

Other cable systems have to connect through either India or UAE to reach Europe, he said. EASSy is owned by 16 commercial telecom entities with 92 per cent owned by African operators and eight per cent by international operators.

The investing parties include: Bharti Airtel, Botswana Telecom Corporation, British Telecom, Comoros Telecom, Etisalat, France Telecom, Mauritius Telecom, MTN International Group, Neotel, Saudi Telecom Corporation, Sudatel, TTCL, Telma, Vodacom, Telkom South Africa, WIOCC and Zambia Telecom.

Source: Tanzania Daily News     Image: appfrica.net


Africa: Continent in the Limelight As Mobile Phones Promise More Growth

Cosmas Butunyi

Nairobi — As the world celebrates the signing up of the five-billionth mobile phone subscriber, Africa is stepping forward to claim credit as one of the regions that have driven the phenomenal growth over the past decade.

This has been accompanied by economic growth with experts foreseeing even greater development in different sectors, buoyed by the mobile phone technology over the next decade.

From only 16 million subscribers in 2000, the continent now boasts about half a billion subscribers, according to telecommunications firm Ericsson.

The mobile phone has also evolved to take up more roles beyond just making calls and exchanging text messages.

Studies have shown that mobile phone companies are raking in more revenue through data services than voice calls.

The increasing popularity of social networking sites such as Facebook is cited as a contributing factor.

According to a December 2009 study by Ericsson, though the use of data services has grown by 280 per cent over the past two years, the figure is projected to double annually over the next five years.

With the addition of a billion new subscribers in just 18 months, resulting in four out of five people being connected, Ericsson is now forecasting an even rapid growth over the next decade. This time it is not just mobile phones but also other devices such as computers.

Phenomenal increase

Coupled with the development in mobile phone technology such as the 3G network which will enable deployment of advanced applications such as video conferencing, mobile TV services and tele-medicine that require high speed connections, the uptake of mobile phone technology is expected to increase exponentially.

Ericsson expects the number of connected devices to hit the 50 billion mark over the next decade.

According to Ericsson country manager Craig Hosken, mobile broadband subscriptions will stand at more than 3.4 billion by 2015, with over 100 million coming from sub-Saharan Africa — an almost tenfold increase of the 360 million recorded in 2009.

This is expected to increase even further, considering up to 80 per cent of people accessing the Internet will be doing so using their mobile devices.

“This is already the case in Africa,” Mr Hosken said, adding that machine-to-machine communications, also referred to as M2M, will be a key component in the future growth of the mobile industry.

M2M includes medical applications such as remote medical diagnostics which would facilitate the collection, monitoring, and analysis of patient data from rural or isolated locations; or energy companies using smart meters that increase business efficiency and cut operational expenses.

Other beneficiaries

The technological advancement will see the transport sector enjoy tracking solutions that would improve route optimisation and safety for vehicles on the road.

Other applications include digital signs that can be updated remotely, cameras that can send pictures halfway around the world are other examples that machine-to-machine technologies make possible.

All this increased deployment of information and communications technology (ICT) is expected to contribute significantly towards the economic development of the continent.

Source: East African     Image: watblog.com


Zimbabwe: Country to Invite Energy Sector Investors

Harare — ZIMBABWE will soon open its doors to investors in the energy sector to come in as independent power producers (IPP) or as public-private partnership arrangements for larger power projects.

The energy sector, which produces about 1 100 megawatts of electricity on average vis-a-vis a peak demand of about 2 100 megawatts, imports between 300-500 megawatts, mostly from Mozambique and Zambia.

Speaking at the official opening of the Third Session of the Seventh Parliament of Zimbabwe recently, President Mugabe said erratic power supplies were affecting economic development.

Government was working on a number of initiatives aimed at easing the situation that has negatively affected capacity utilisation in industries.

“Persistent erratic power supply remains a potent threat to the successful turnaround of the economy. However, Government is working on initiatives which would see a gradual easing of the situation,” said the President.

Government is currently working on the refurbishment of the coal-fired Hwange Power Station, where five out of the six units are expected to become operational by end of year.

Power generation at Hwange will be expanded by 600 megawatts and the Kariba hydropower station by about 300 megawatts. However, there is huge potential to expand power generation capacity through hydropower projects, which could deliver an additional 5 000 megawatts.

Other smaller hydropower projects that can be constructed near small rivers and dams could add more than 200 megawatts to the country’s generation capacity. Government had earlier indicated that they are looking for IPPs to help develop or to set up these projects, saying that producers did not necessarily have to export the power to the national grid.

IPPs would also be allowed to sell their power to other electricity users in the country.

Other options for expanding the power generation capacity of Zimbabwe included the country’s coal-bed methane reserves of about 1,1 trillion cubic feet, as well as its 11,8-billion metric tonnes of coal.

The Bulawayo Thermal Power Station, which has not produced electricity for nearly a decade will soon be resuscitated in a deal with the Botswana Power Corporation. BPC has agreed to inject US$8 million into the project.

President Mugabe also noted that the use of renewable energy sources such as ethanol blending would also be promoted to ease power demands.

He said the measures need to be complemented by implementing demand-side management measures and the promotion of efficient use of energy.

In line with these measures, the Zimbabwe Electricity Supply Authority is working on the installation of prepayment metres to help in billing and revenue collection. During this session, the Energy Regulatory Bill, which seeks to establish an Energy Regulatory Authority to regulate the energy supply industry would be tabled in Parliament.

The engagement of IPPs comes at a time when RioZim Limited is failing to secure a serious investor to develop the Sengwa Power Project, with a possible capacity of 2 400 megawatts, targeted to start generating power by no later than 2014, all things being equal. The country has suffered acute power shortages due to falling generation capacity over the years and has had to rely from ever declining imports from regional neighbours.

Source: The Herald     Image: english.globalarabnetwork.com


Ethiopia Plans Power Exports to Sudan
Ethiopia will begin exporting hydropower-generated electricity to neighbouring Sudan in September, after improved rains boosted dam levels and the repaired Gilgel Gibe II power plant resumes output, Bloomberg reported recently.

Supplies to Sudan will total about 200 megawatts, while 150 megawatts may also be sold to Djibouti should there be sufficient supplies, said Mr. Mekuria Lemma, head of strategic management and programming at the state-owned Ethiopian Electric Power Corporation.

Gilgel Gibe II, which halted production in January following a tunnel collapse, is expected to resume output by the end of July. Production at Tana Beles, the country‘s largest plant, and Tekeze is also expected to be at full capacity following recent rains. The three plants produce a combined 1,180 megawatts of power.

Mekuria said, ”We have lots of water in all our reservoirs. We are in a good position now.”

Ethiopia has Africa‘s second-biggest potential hydropower capacity of 45,000 megawatts, according to the World Bank. Congo has the largest. Rainfall in Ethiopia was average or above average in April and May in most parts of the country, according to the National Meteorological Agency.

In June, when the main rainy season starts, average or above average precipitation was recorded in central and western areas, it said on wednesday.

Kenya is in talks with Ethiopia to import 500 megawatts of electricity and a feasibility study has been completed on a transmission line to the East African country, Mekuria said.

The African Development Bank provided a $1m loan for the design of the line, which is expected to be built by 2014, Solomon Asfaw, an Ethiopia-based energy specialist at the bank, said in an interview.

In addition, the bank is co-funding the construction of a 283-kilometer (176-mile) 230 kilovolt transmission line from the eastern Ethiopian city of Dire Dawa to Djibouti. The network, which will be able to supply 260 megawatts of power, will be completed within two months, Solomon said.

Ethiopia‘s current generating capacity is about 2,000 megawatts, including the 420 megawatts from Gilgel Gibe II, EEPCO spokesman Misiker Negash said in an interview. There are plans to increase that to 8,000 megawatts, Mekuria said.

Source: The Punch Nigeria              Image: thediasporanews.com


Zambia to Meet Rising Demand for Power from Mines

By Chris Mfula

LUSAKA (Reuters) – Zambia, Africa’s top copper producer, is confident new power supply projects would be on stream in time to meet rising demand from its mines, energy minister Kenneth Konga said on Wednesday.

Konga told Reuters in an interview Zambia planned to build new power stations, including the 218 megawatt (MW) Kalungwishi hydropower plant. Construction of Kalungwishi will begin next year in northern Zambia.

Demand for electricity by the mines is estimated to rise to 1,000 megawatts (MW) within five years from about 800 MW following a rally in copper prices that encouraged mining companies to invest in new copper projects in Zambia.

Zambia is likely to achieve its production target of about 1 million tonnes by 2011, from just below 700,000 tonnes in 2009, Chibamba Kanyama, economist at the Economics Association of Zambia, said this month.

“The attorney-general finally approved the Kalungwishi power project and now we are actually in the process of signing the implementation agreement so that the developer can organise the financing and start building early next year,” Konga said.

Zambia generates 1,400 MW of electricity and consumes about 800 MW but demand rises to 1,500 MW at peak times.

Konga said Zambia, Tanzania and Kenya would start raising funds next month for a $780 million power line linking the three countries with a power transfer capacity of 400 MW which was planned for completion in 2015.

Konga said energy ministers from the three countries should have signed the heads of agreement for the power project in May but that was delayed.

“We are on the verge of going out to announce that the project is available for investment. We are just waiting for experts to tell us how the Tanzanian system fits with the rest of the system,” Konga said.

Konga said Zambia’s main distributor of power to the mines, Copperbelt Energy Corp.(CEC), had started building another 220 kilovolt dual circuit interconnector between Zambia and the Democratic Republic of Congo.

“CEC is doing the Zambian side and SNEL is doing the DRC portion with World Bank funding and we expect the line to be commissioned by mid 2011,” Konga said.

Konga said a Chinese bank had offered to cover a large portion of the cost of building a 600 MW power plant, which would significantly raise Zambia’s power output when commissioned in 2017.

Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, London-listed Vedanta Resources PlcL, Equinox Minerals and Glencore International AG of Switzerland.

Source: Reuters   Image: Reuters


Germany to Execute 19 Power Projects in Nigeria

Emeka Anuforo

GERMANY has concluded plans to intervene in the lingering power supply crisis in Nigeria, through direct participation in 19 electricity projects in the country.

The initiative is being planked on a Memorandum of Understanding (MoU) signed between the two countries in 2007.

The sites of the projects were not immediately disclosed, but sources at the Ministry of Power told The Guardian that they would have national spread.

Under the MoU, Nigeria would supply gas to Germany, in return for the European country’s investment in the country’s energy sector, which also includes technical support for development of local capacity for the industry.

Vice President, Alhaji Namadi Sambo, said at a joint partnership meeting in Abuja that the projects under the pact were selected to increase the energy mix; provide generation assets in areas without power generation assets; as well as utilise available feedstock such as coal, wind, solar and hydro to produce power.

Represented by the Minister of State for Power, Nuhu Wya, Sambo said “the partnership’s power projects are diverse and focus on a balanced mix of power generation. The projects are sited in areas closest to where the power is to be consumed, thus helping to stabilise the grid and reduce technical losses.

“When you think that the National Integrated Power Projects (NIPP) and the PHCH alone have increased installed capacity by 3,000MW in the last five years, and we require over 2,000MW installed capacity per year to achieve 20,000MW by year 2020, then you can begin to see the immense technical capacity we require.”

Head of Division, International Energy Policy of the German Foreign Office and Head of the German delegation, Dr. Robert Klinke said at the fifth yearly conference of the Nigerian-German Energy Partnership, in Abuja, that about 19 projects that had been identified on both sides would be of mutual benefits to both countries.

Klinke explained that Germany is offering to help rehabilitate the Nigerian power infrastructure and hopes to have access to natural gas from Nigeria, to diversify its energy base, as well as ensure energy security for Germany.

“It is a win-win situation. We have many German companies coming into Nigeria with state of the art technology and we have also developed a comprehensive approach to rehabilitate the Nigerian power sector, which is the added value we are bringing”, he said.
This, he stressed, would include elements of power infrastructure rehabilitation, renewable energy and energy efficiency.

“It is a complete package we are offering, and I am confident that our Nigerian partners would embrace the spirit of the partnership and do their part in bringing about the full benefits for both countries. I am sure that Nigeria would benefit tremendously from this partnership.

“This partnership is one of the cornerstones of our bilateral economic relations. We are all in some form of crises, and it is during times of crises that major decisions are taken. That is why we are looking at which projects we can begin immediately “We have done enough talking over the past three years. What remains now is to begin implementation. We hope our Nigerian partners would come in because we are really ready to begin implementation.”

Source: The Guardian Newspapers    Images: lowcarboneconomy.com


AfDB Eyes Doubling Africa Infrastructure to $10Bn
KAMPALA (Reuters) – The African Development Bank (AfDB) is expected to nearly double its infrastructure funding on the continent in five years’ time to $10 billion to accelerate economic growth, a senior official told Reuters on Monday.

Alex Rugamba, the bank’s director for regional integration and trade, said in an interview on the sidelines of the African Union summit a recent increase in the bank’s core capital had allowed it to allocate more funds for infrastructural projects.

“We want to double our infrastructure funding,” he said.

“There’s a big interest in projects that can transform economies… for instance there’s big talk about railways. We want to revamp our railways. So if the trends continue as they are now, I would say within five years’ time we’ll be committing up to $10 billion per year on infrastructure.”

The Bank, a key source of cheap credit for some of Africa’s poorest economies, spends between $5-6 billion annually in infrastructure funding, he said.

Uganda’s President Yoweri Museveni and other African leaders have decried the slow expansion of the continent’s economic and social infrastructure as a primary obstacle to ending poverty.

Rugamba said the AfDB was keen on cross-border infrastructure ventures to promote trade within and between African countries and drive economic growth.

He indentified some of them as regional power grids, highways that link neighbouring countries and submarine cables.

Rugamba said Africa’s potential to absorb large injections of infrastructure funding was always there, but the AfDB’s low capital was limiting its capacity to meet demand for credit.

Countries such as South Africa, Morocco, Egypt and Tunisia were taking in enormous amounts of credit annually, he said.

“South Africa last year took a loan of over $2 billion, which is almost about half our annual infrastructure budget and Egypt now takes in $400 million worth of credit for its energy sector per year,” he said.

Source: Reuters   Image: Reuters


Egypt planning $1Bn tunnel under Suez Canal
CAIRO (Reuters) – Egypt plans to build a $1 billion tunnel under the Suez Canal at Port Said and will begin seeking finance as soon as the designs are completed, Al-Akhbar newspaper on Monday quoted the investment minister as saying.The tunnel, to be built 19 km (12 miles) south of the Canal’s northern entrance, will have 3 passageways, one for rail and two for cars, the newspaper quoted Mahmoud Mohieldin as telling a conference in Dahab in the eastern Sinai Peninsula.

The conference was called to discuss investment in the cities along the canal and in the Sinai, which the government is keen to develop following a number of clashes between security forces and impoverished Bedouin tribes.

“There is good cooperation with international investment funds to finance the project, which will be entirely financed outside the state budget,” Mohieldin said.

Egypt now has two points for cars to cross the waterway — a tunnel near the city of Suez and a bridge near Ismailia. Once the Port Said tunnel is finished, another tunnel is planned for Ismailia, Mohieldin told the conference.

Source: Reuters   Image: Reuters


After 80 Years of Lies, Africa did not fail – JordaanBy Adekunle Salami

At the Michelangelo Towers in Johannesburg, the Chief Executive Officer of the South Africa 2010 World Cup, Danny Jordaan, spoke on the problems, challenges and gains of the global event.

What is your assessment of the 19th FIFA World Cup?

Chief Executive Officer of the South Africa 2010 World Cup, Mr. Danny Jordaan.

How do I answer that? I was involved in the organisation at the highest level. In my estimation, the event went well. There were great results recorded in many centres and the visiting participants enjoyed themselves from the reports we got from all the centres. It was an African show and we were able to avoid issues on logistics and general organisation.

Does it mean you are satisfied with the hosting of the event?

Certainly, yes. As I said earlier, it is the first World Cup in Africa and many people from other parts of the world never believed we could do what we did. They came with the mindset that there would be issues at the competition. They believed we did not have the capacity to host the world. Everything worked well during the competition. FIFA made a success of this event in marketing. Tickets were sold out well before the competition while the stadia were full all through the competition. I am proud and satisfied with this event. I know we did well. We recorded many first in the competition including the FIFA Fans Park. Fans from various parts of the world were watching the matches together at the FIFA Viewing centres where they also enjoyed the excitement that is similar to the stadia.

Who were those that doubted Africa or South Africa‘s capability to stage a good show?

That was no secret. There were heavy criticisms against our rights to host. We chose not to bother ourselves and decided to be focused. They told the world many lies. In our first attempt to host, they told the world it was not possible. For over 80 years, the campaign against Africa went on and on and so we felt we had an opportunity to prove them all wrong. I am happy we were able to achieve that. After 80 years of lies, Africa did not fail. Africans should be proud of this event and I believe, honestly, that with what we did at South Africa 2010, it won‘t be long again before Africa takes the centre stage when it comes to hosting the world.

What were the biggest challenges of staging the event?

We had tough challenges. I was a member of the parliament in 1994 when the first journey began. On July 6, 2000, we missed the opportunity of staging the FIFA World Cup in 2006, in a ridiculous way because one member (Australia’s Charles Dempsey) deliberately abstained from voting to give Germany an advantage. In South Africa, the opposition against the Africa National Congress believed we were embarking on an impossible task. And so together with Nelson Mandela, we started intensifying our efforts, especially when FIFA decided it had to be Africa. It was a big disappointment when we lost the right to Germany and so on May 15, 2004, we got the hosting rights and it was a fantastic feeling. So we started with the plan B of staging a good event. Even till the event started, people were still in doubt of what we could do. The greatest challenge were the enemies within, because they did everything to slow us down. We tried our best to use the World Cup to give the country a positive image and to bring the people of South Africa together. People said that sponsors would not embrace the World Cup because it would not be marketable in Africa but eventually, FIFA made $3.2bn in the competition as marketing profit. This is a World Cup record and we are happy with that achievement.

South Africa is noted for baseball and cricket and so It was a surprise that South Africa 2010 recorded a huge turnout at all the stadia. What was the magic?

We embarked on a mobilisation programme in many ways and I am glad that the people embraced all our programmes. South Africans took the World Cup issue as a matter of national pride. We also used Mandela to appeal to the people to come all out for the games. The national team, Bafana Bafana, were also used to bring out the people. Our people supported Bafana Bafana and all other African teams. When the African teams crashed out, our people supported Ghana and when Black Stars went out, they supported Brazil, Argentina. When these teams crashed out, they also embraced Holland and Spain. Luckily, these two teams qualified for the final. Good enough, we are also third in terms of attendance in history.

The facilities for the event are good but how do you intend to maintain them?

We have done all we needed to do to stage a spectacular show. We did everything to make the stadia what they were for the World Cup and the next target is for the South Africa Football Association to work on how to utilise the facilities. We have held meetings with them on why it was important to keep the stadia busy. We have a domestic league and we just have to draw a good plan to keep the facilities in great shape.

The issue of security was a big one during the event ….

(Cuts in) Yes. Some people exaggerated it and tried to use it against us. We did our best to address to. We set up World Cup courts to deal with crime immediately. We also had more policemen on the streets during the period. We did our best but sad enough some participants fell victims to touts.

So what are the other gains of the World Cup to the people?

I have mentioned the gains of FIFA, and SAFA will also have ten quality stadia. The youths of South Africa have been empowered with the facilities we have and they also have enough exposure since we hosted the world for a whole month. The business people made so much profit during the competition. Our youths were involved as volunteer jobs and so they were part of the project. With the events of South Africa 2010, the country will continue to count the gains in the next 10 years to come.

What has been the role of government in the hosting of the competition?

Government gave us a hundred percent support. The Local Organising Committee was allowed to run like an independent body but we relied on the government for many of our projects in terms of logistics. Government made sure the roads were all good while other social amenities were taken care of to boost the hosting. Government is happy with us because the hosting gives a sense of pride, especially, because everything went well, not only for us but for Africa.

Now that the World Cup is over, is South Africa ready to stage the Olympics?

The country has hosted many global events – rugby, tennis, athletics, swimming, boxing, among others. After staging the World Cup, Olympics is not out of place. Our good show with South Africa 2010 has given us a good template to stage any event in the future, including the Olympic Games.

Source: Punch Newspapers Nigeria     Image: sabcsport.co.za


Country Stats: Burkina Faso

Capital: Ouagadougou
Area: 274,000 sq km
Total Population 2009: 15.8 Million
Urban Population 2009: 19.95%
Female Population 2009: 50.05%
GDP 2009: US$ 8.4 Billion
GNI Per Capita 2008: US$ 480
Inflation Rate 2009: 6.4%
Crude Birth Rate (per 1000) 2009: 46.93%
Human Development Index (scale 0 to 1) 2007: 0.389
Membership Date: 22/09/1964
Cumulative Approvals (1967-2009): UA 741.3Million

Source: Africa Development Bank

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