Africa Brief: Zimbabwe wildlife conservancies, Chinese Coal of Africa deal, and more
Germany takes issue with Zimbabwe over wildlife conservancies invasions
Germany and Zimbabwe will be co-hosting the United Nations World Tourism Organisation’s general assembly in August. Germany is concerned regarding Zimbabwe’s ability to do this as there is continued invasion of protected wildlife conservancies by Zanu (PF).
The European Union has threatened to withdraw aid to Zimbabwe over the issue. Wildlife conversationalist Jonny Rodrigues, who chairs the Zimbabwe Conservation Task claims that top military officials as well as Zanu (PF) youth mobs, are heavily involved in the invasions. Political commentators expect this trend to increase ahead of the elections this year.
For the full story, read Germany takes issue with Zimbabwe over wildlife conservancies invasions by Tawanda Karombo, published in Business Day on 10/01/2013.
Chinese deal boosts CoAL growth plans
Chinese authorities have granted regulatory approval; which is valid for 2 years, for a $100m investment by Beijing Haohua Energy Resources, which will help Coal of Africa (CoAL) to develop metallurgical coal mines in Limpopo. The share price rose by 10.7% after news that the Chinese company will acquire a 23.6% shareholding in CoAL.
With the help of this funding, CoAL plans to produce 7 million tons of coal. CoAL has received $20m of the investment, and the remaining $80m will be for the conditional placement of shares, on which the shareholders are yet to vote.
The deal requires at least 50% approval by the shareholders. The mine is under review after a difficult year, where coal prices and labour unrest pushed CoAL to adopt cost-cutting measure. CEO of CoAL expects another tough year but is considering the possibility of forming a partnership with its neighbouring operations.
For the full story, read Chinese deal boosts CoAL growth plans by Monde Maoto, published in Business Day on 10/01/2013.
Share grab ‘not behind Barclays’ exclusion’
Analysts believe that the indigenisation policy is the main reason for the exclusion of Barclays Zimbabwe from the Absa Group merger. Corporate Affairs manager Dennis Mambure does not anticipate any negative effect due to this exclusion.
Foreign banks in Zimbabwe are facing immense pressure from the government to lower interest rates, which could lead to a decline in foreign banks making investments in Zimbabwe.
For the full story, read Share grab ‘not behind Barclays’ exclusion’ by Tawanda Karombo and Ray Ndlovu, published in Business Day on 10/01/2013.
Tongaat deal in Zimbabwe ‘may be near’
Tongaat Hulett’s Zimbabwean unit shave started negotiations for the indigenisation plan, from which a deal will be struck soon. A compliance plan had been submitted by Tongaat this week but nothing has yet been confirmed.
The Zimbabwean units contributed to more than 19% to Tongaat’s total interim revenue. The government can cancel the land leases for its sugar plantations if a compliance plan is not submitted.
For the full story, read Tongaat deal in Zimbabwe ‘may be near’ by Tawanda Karombo, published in Business Day on 10/01/2013.
Sudan secures $1.5bn Chinese loan as it battles currency slide
As Sudan faces its worst economic crisis, Sudan has secured a $1.bn loan from a unidentified Chinese bank, which is guaranteed by China National Petroleum Corporation (CNPC). The CNPC is the biggest investor in the oil industry in Sudan and South Sudan.
The loan is said to help stabilise the Sudanese pound which is presently facing a currency slide. Beijing has an interest in Sudan overcoming its crisis with South Sudan, as it is the biggest buyer of South Sudanese oil.
For the full story, read Sudan secures $1.5bn Chinese loan as it battles currency slide by Reuters, published in Business Day on 10/01/2013.