Africa Brief: Angola first daughter to enter grocery retail, Clover to milk opportunities in the rest of Africa and more …
Angola first daughter to enter grocery retail
Portugal’s biggest retailer Sonae plans to open five food hypermarkets in Angola, in partnership with Isabel dos Santos, the daughter of the country’s president, with the first scheduled for 2015, a company board member said last Thursday. Shopprite, the continents top grocer, plans to add 21 shops to its existing 17 in Angola over the next three to four years. Walmart is also planning to enter the market through it’s Massmart Unit. “We continue to believe that there are still opportunities in the market,” said Sonae board member Luis Reis
Excerpt from, Angola first daughter to enter grocery retail by Reuters, published by Business Day on 16/09/2013
Glencore studies possibility of iron-ore mine in Congo
Xstrata, the multinational commodity trader and metals producer run by billionaire Ivan Glasenberg, agreed to proceed with a study into an iron-ore mine in the Republic of Congo that may cost as much as $3bn. Glencore, which acquired the stake in the project with Zanaga through the $29bn takeover of Xstrata in May dropped 1.8% to 337.55p at the same time. Glencore is the world’s biggest exporter of power station coal. It is the third-biggest producer of mined copper, third in nickel and biggest in zinc and lead. The company this week estimated savings of $2bn next year through the takeover of Xstrata by closing 33 offices, firing workers and reducing costs at existing operations. Glencore reviewed 88 projects acquired from Xstrata and decided to suspend 44 of them, it said last Tuesday. It also raised the cost estimate for its Koniambo nickel project, inherited from Xstrata, by $1bn to $6.3bn. Bloomberg
For the full story, read Glencore studies possibility of iron-ore mine in Congo by Jesse Riseborough published by Business Day on 16/09/2013
It is time for Africa to add value to exports to China, says Davies
The value of trade between South Africa and China has increased 40 times since the established diplomatic relations 15 years ago. They are members of the most influential emerging market trade bloc, Brics (Brazil, Russia, India, China and South Africa) and their collaboration in industrializing their own economies has been notable. The two countries might not be in the same league when it comes to the important economic indicators such as market size, gross domestic product, economic growth or the level at which they participate in global venue chains. When president Jacob Zuma participated in the 5th forum on China-Africa Co-operation in July last year, he pointed out that this relationship was unsustainable in the long term and the countries agreed to increase the export of value-added products from South Africa to China.
For the full story, It is time for Africa to add value to exports to china, says Davies by Londiwe Buthelezi, published by The Star, Business Report on 16/09/2013
Judge warns on intimidation in Ruto Trial
The prosecution in the crimes against humanity case Kenyan Deputy President William Ruto called it’s first witness yesterday at the International Criminal Court (ICC) in the Hague. The woman’s identity was kept secret, her face and voice distorted, under and order by presiding Judge Chile Eboe-Osuji. She was made known only as a witness “P0536”. Her initial statements were made in a closed session. She was a victim of an arson attack in January 2008 on the Kiambaa Church in Kenya’s Rift Valley, one of the areas worst affected by the violence. At one point the judge cut off the defense counsel, Karim Khan, who started to warn the witness against giving false testimony. The prosecution has repeatedly charged that it’s witnesses have been intimidated. Several key witnesses have withdrawn from the trial, citing mental hardship. Kenyan president Uhuru Kenyatta will go on trial in November at the ICC
For the full story, read Judge warns on intimidation in Ruto Trial by Sapa-DPA, published by Business Day on 18/09/2013
South Sudan seeks loans after oil production
South Sudan is in talks with the International Monetary Fund (IMF) for a loan of up to $50m to help the two year old country recover from a halt to oil exports, central bank governor Kornelio Koriom Mayik. Foreign exchange in the East African nation dwindled after it shut crude production in a dispute that began last year with neighboring Sudan over border security, oil transit fees and citizenship issues. South Sudan already borrowed about $500m from external sources, including $100m from Qatar National Bank, to offset the dollar shortage and fund government spending, Mr Mayik said. It arranged an additional $100m credit line three months ago with CFC Stanbic Bank Holdings, a unit of Standard bank. South Sudan relies on oil to generate 98% of its foreign currency settings. It became a member of the IMF last year and is eligible for concessional lending. The Country does not have a credit rating
Excerpt from South Sudan seeks loan after oil production by Mading Ngor, published by Business Day on 18/09/2013.
Clover to milk opportunities in the rest of Africa
Clover will embark on an African expansion plan that will see the dairy heavy weight develop facilities in Nigeria, Mozambique and Angola, the firm said as it results presentation yesterday. The Economist Intelligence Unit predicts that by 2030, Africa’s top 18 cities could have a combined spending power of $1.3 trillion making the continents fastest growing economies a target for companies. Along with retailers, consumer goods manufacturers such as Nestle, Unilever and Mondelez are also growing their African Businesses. Although limited opportunities exist in most African countries for clovers fresh product range due to the lack of refrigeration and poor infrastructure, the company has a number of ambient or long-life products in it’s portfolio.
For the full story, read Clover to milk opportunities in the rest of Africa by Zeenat Moorad, published by Business day on 18/09/2013
SA and Congo have ‘great opportunity’
There is a great opportunity to improve trade and investment between South Africa and the Democratic Republic of Congo (DRC), says Deputy Minister of Trade and Industry Elizabeth Thabethe. She was speaking at the South Africa-DRC business seminar hosted by the Department of Trade and Industry in Kinshasa yesterday. The seminar was part of the first leg of the Investment and Trade Initiative (ITI) to Kinshasa and Lubumbashi where Thabethe is leading a delegation of 43 business people.
“The DRC continues to be a strategic-market and partner for South Africa. It is one of the fastest growing economies in Africa. GDP increased from 6.9% in 2011 to 7.2% in 2012, driven by vigorous performances in mining, trade, agriculture and construction. The economy is expected to continue to expand this year. There is a great opportunity to improve trade and investment between South Africa and the DRC. This calls for our business people to work hard as we as the government have created forums like these to enable them to take advantage of available opportunities.”
Thabethe said that one of the opportunities that was available for both countries was in upgrading existing or new manufacturing across a range of sectors.
Excerpt from SA and Congo have ‘great opportunity’ by TNA Reporter, published by The New Age on 18/09/2013