{jcomments on}OMAR, BXL, AGNEWS, le 07 juillet 2010 — Brazilian President Luiz Inacio Lula da Silva has commended Kenya for embracing reforms geared towards entrenching democracy and boosting the economy.
BURUNDI :
Agathon Rwasa
myafrica.allafrica.com/07/07/2010
Burundi
Agathon Rwasa is a Burundian politician. He is the former leader of National Liberation Forces (FNL), a rebel opposition group.
Professional Information
Professional Areas: Government
Working primarily in: Burundi
Biographical Information
Agathon Rwasa was born in the Ngozi region of Burundi in 1964.
Rwasa fled his native Burundi in 1998 following the events in Ntega-Marangara region of Burundi, an ethnic conflict which resulted in the killing of several hundred people. Rwasa sought aslyum in neighboring Rwanda.
At age 24, Rwasa enlisted in the military. He was a He later became a recognized political and military figure while the Papilehutu. a rebel group in Burundi, were in power.
In January of 1998, Rwasa was appointed the head of military operations in Rural Bujumbura. In February 2001, Rwasa assumed leadership of the armed wing National Liberation Forces (FNL) after outsting former leader Cossen Kabura.
In June 2010, Rwasa ran as presidental candidate for the Republic of Burundi but dropped out before the June 28, 2010 election day along with all the opposition group candidates.
Rwasa is reported to be in hiding since June 2010.
Several people arrested for election protests in Burundi
2010-07-07/ APA
APA-Bujumbura (Burundi) The president of the Association for the Protection of Human Rights and Prisoners (APRODH-Burundi), Pierre Claver Mbonimpa told APA on Tuesday that 140 people have been arrested in Burundi since the 24 May communal and 28 June presidential elections disputed by the opposition.
Those arrested are from the National Liberation Forces (FNL), the Union for Peace and Development (UPD) and the Movement for Solidarity and Democracy (MSD) while 13 others have fled the country, he said.
Mbonimpa also noted a new development with the imprisonment of some members of the defense and security forces from the former rebel group FNL, which can cause serious problems in the security forces, he said.
He gave the example of an officer arrested on Monday in the suburb of Kinama (north of the capital), saying that respect for human rights has been weakened in the country in recent days.
“Some prisoners are beaten and tortured by the secret service and are hidden in toilets when rights activists pass by. Their whereabouts also remain unknown for some time, while they are recovering from their injuries and their families believe they are missing,” he said.
“We just identified at the secret service, some prisoners whose families had no idea where they were,” Mbonimpa said to substantiate his remarks.
The APRODH president asked the government not to “chase people, but rather to consider a political solution to end the dispute arising from the elections.”
He thus deplored that the Burundian justice system has become a weapon of the executive to get rid of opponents.
The human rights defenders complain that “on the orders of the head of state, the trials of those arrested are very fast and sometimes without thorough investigation and defense.
“I do not say that we should not punish criminals who throw grenades, but I hate to see the innocent being imprisoned. This gives the impression of a justice system that is there to suppress those who challenge the executive,” said Pierre Claver Mbonimpa.
He noted that “when the justice system is working on the orders of the executive, there is a risk it would be influenced by it. This is unfortunately a reality that we experience everyday in Africa,” he pointed out.
CN/od/ad/daj/APA
RWANDA
Dutch carrier KLM opens Kigali route
7 July, 2010/By Joe Nam /www.newvision.co.ug
KLM has started operating direct flights from Amsterdam to Kigali.
“Arrangements are in advance stages to make a maiden flight from Kigali International Airport to Amsterdam Schipol Airport.
“The flights with, an intermediate stopover in Entebbe, will be operated five times weekly with Airbus330,” Lukia Otema, the sales manager, said in a statement.
She said the Kigali- Amsterdam route will offer a direct service within the Air France-KLM network.
“The new flights, in combination with the code-sharing services offered by KLM and Kenya Airways, will strengthen Air France-KLM’s presence on the African continent.”
The flight will depart from Kigali to Amsterdam Airport on Tuesdays, Wednesdays, Thursdays, Fridays and Sundays, arriving in Amsterdam the following day, Otema noted.
Otema explained that KLM’s decision to make Kigali its 64th intercontinental destination was prompted by Rwanda’s rapidly growing economy and the growing demand for passenger services to and from Kigali.
KLM transported 23.5 million passengers and 605,000 tonnes of cargo in the 2008-2009 business year, Otema added.
In Eastern Africa, KLM operates flights to Uganda, Sudan, Ethiopia, Tanzania and Kenya.
ICTR / Uwinkindi Arrested and Transferred to Arusha
pr-usa.net/07072010
Jean-Bosco Uwinkindi (59), former Pastor in charge of the Pentecostal Church at Nyamata, Kenzenze Commune, Kigali Rural prefecture who is facing charges before the Tribunal was on 2 July 2010 transferred to the UN Detention Facility in Arusha. Uwinkindi was arrested on 30 June 2010 in Kampala, Uganda.
Uwinkindi is charged with three counts of genocide, conspiracy to commit genocide and extermination as a crime against humanity. The accused is alleged to have led a group of killers to exterminate Tutsi in Kanzenze commune and at his Kayenzi church.
Uwinkindi, who was born at Rutsiro Commune in Kibuye prefecture, was arrested at the request of the Tribunal following an arrest warrant issued by the ICTR on 31 August 2001.
Arrangements are being made for the accused to make his initial appearance before the Tribunal in accordance with Rule 62 of the Rules of Procedure and Evidence of the ICTR.
Source: International Penal Tribunal for Rwanda
UGANDA
Tullow gets approval for Heritage buy
Wed 07 Jul 2010/SHARECAST
LONDON (SHARECAST) – Tullow Oil can proceed with the $1.5bn acquisition of a 50% stake in two big oil fields in Uganda from Heritage Oil after the government gave approval after months of wrangling.
Tullow exercised its first refusal rights over blocks 1 and 3A in the Albert Basin in Uganda after Heritage agreed to sell the stakes to Eni of Italy.
But the Ugandan government originally blocked the sale to Tullow fearing it would give too much control to the Irish group. There was also disagreement with Heritage over the amount of capital gains tax payable on the sale.
With the issues now resolved, Tullow will bring in China National Offshore Oil Corporation and Total to develop the Albert Basin fields. It will also pay tax as part of the agreement.
“All the due diligence on Total and CNOOC has already been done by the government, so we can move immediately on the agreement,” said Ian Springett, Tullow’s finance director.
Uganda: IPC Women Sue Police Officers Over Alleged Assault
Lydia Mukisa/The Monitor/allafrica.com/7 July 2010
Kampala — Women politicians under the Inter Party Cooperation have sued nine police officers over alleged assault and torture. The sued officers include Mr Grace Turyagumanawe (deputy Director in Charge of Operation), Mr Moses Kafeero (Kampala South Metropolitan Police Commander), Ms Grace Akulo(commissioner of police) and Ms Judith Nabakooba, the police spokesperson.
The women led by Forum for Democratic Change Women’s league Chairperson Ingrid Turinawe, want the High Court to order the officers to compensate them for the injuries suffered and damage caused during the alleged torture.
In their petition, the women politicians say on June 14 at Buganda Road Court, they were attacked, assaulted, battered, undressed and tortured by police officers under the commander of Mr Turyagumanawe, Mr Kafeero, Ms Akulo and Ms Nabakooba. They accuse Ms Nabakooba of acting unprofessionally and in a partisan manner portraying them as rioters, criminals, who associate, assemble and demonstrate illegally.
Seriously injured
The women say they had planned to peacefully assemble and to march to the Electoral Commission headquarters in Kampala to demand the resignation the Eng. Badru Kiggundu-led electoral body.
They say two of their colleagues were seriously injured after the alleged torture and were admitted at Nsambya Hospital. The women want court to issue an injunction stopping the police officers in question from continuing to act in offices they currently occupy. They are also seeking orders directing appropriate authorities to punish the officers for the alleged criminal acts.
Court has ordered the officer to file a defence within 15 days. Daily Monitor failed to get a comment from Ms Nabakooba since her mobile phone was switched off.
Uganda: Govt Pardons Ex-Rebels in West Nile
Frank Mugabi/The New Vision/allafrica.com/7 July 2010
Kampala — An additional 2,600 ex-rebels who instigated civil strife in the West Nile region have received amnesty from the Government after denouncing rebellion.
This brings the total of ex-combatants with amnesty certificates in West Nile alone to 9,600. Previously, 7,000 had received theirs.
The head of the regional amnesty demobilisation and resettlement team, Ambassador Obitre Gama, said most of the ex-rebels belonged to the defunct West Nile Bank Front, an armed force that fought against the UPDF between 1995 and 1998. They were under the command of Juma Oris, who died of bullet wounds following a fierce battle with the UPDF.
The armed group also had two other prominent commanders: Haji Abdalatif Tiyua who now runs an ex-combatants association in Arua town, and Lt. Col. Moses Gala Yangu, who has a similar organisation in Koboko.
With bases in Sudan and the Democratic Republic of Congo, the group employed brutal tactics including the laying of landmines, kidnappings and violent raids in West Nile.
Obiter Gama said the ex-rebels had individually returned to their communities after the dissolution of the group in 1998, although they had not asked for amnesty.
Through our continued sensitisation on the importance of seeking amnesty, many came out recently to acquire certificates of amnesty, he said.
He said the certificates shield one from criminal prosecution or punishment in a national court for offences related to the insurgency.
The amnesty commission spokesman, Moses Draku, said giving out certificates started on Tuesday and is expected to go on for about three weeks.
TANZANIA:
CONGO RDC :
International Medical Corps Team Responds Immediately to Deadly Tanker Explosion
07 Jul 2010/Source: International Medical Corps (IMC) – USA/www.alertnet.org
International Medical Corps
Sange, DRC – An International Medical Corps team was immediately at the scene of a fuel tanker explosion in eastern Democratic Republic of Congo that killed some 230 people and injured at least a hundred others over the weekend. International Medical Corps medical personnel based in the area were able to provide emergency treatment at the disaster site, as well as follow-up care for burns and other injuries at nearby Uvira Hospital.
The explosion occurred approximately eight hours after a gasoline truck overturned, spilling more than 60,000 liters of fuel across the village. People in the area rushed toward the tanker in hopes of gathering fuel. The lit cigarette of one of these spectators allegedly sparked a massive fire and explosion, both of which were exacerbated by containers of cooking fuel at restaurant kitchens in the immediate vicinity of the accident. The resulting fires swept quickly through homes and commercial buildings in the area, including a caf� at which a crowd had gathered to watch the World Cup.
Plans are currently underway to bring additional wounded to Uvira and other hospitals in the region. As many of these patients will require emergency care and infection management, International Medical Corps is coordinating with local authorities and hospitals to provide ongoing medical care, vital medicines and supplies.
Since its founding in 1984, International Medical Corps has delivered more than $1 billion in life-saving medical care and training to tens of millions of people across 50 countries. International Medical Corps rehabilitates devastated health care systems and helps bring them back to self reliance.
KENYA :
Kenya tea prices dip at latest sale, volume drops
Wed Jul 7, 2010 /Reuters
NAIROBI (Reuters) – The average price of the top tea at Kenya’s auction dipped slightly to $3.32 per kg at this week’s sale from $3.45 per kg previously, traders said on Wednesday.
Africa Tea Brokers said Best BP1s fetched $3.82-$2.82 per kg, compared with $3.97-$2.92 per kg at last week’s auction.
Top Pekoe Fanning Ones (PF1s) sold at $2.80-$2.36 per kg from $2.75-$2.55 previously.
“(There was) less general demand for the… packages on offer at irregularly easier rates closely following quality with some teas receiving little interest and consequently remained unsold,” ATB said in its market report.
Out of the 126,346 packages offered, 26,200 were left unsold. At the last auction, 137,246 packages were offered, with 34,970 remaining unsold.
Kenya is the world’s leading exporter of black tea, with the commodity being the east African country’s second largest foreign exchange earner.
The government has said that tea production was expected to rise at a slower rate of between 5 and 10 percent above 2009 levels of 315 million kg, rather than the 15 percent previously anticipated, due to cold weather.
ATB said Yemen and other Middle Eastern countries bought more tea than last week, as did Pakistan and Egyptian Packers, Russia and Kazakhstan.
ANGOLA :
Angola: Over 20 Illegal Immigrants Held
7 July 2010/AngolaPress/allafrica.com
Uíge — At least 25 DR Congo foreigners who illegally jumped the border across Negage district/Dange River, northern province of Uíge, with intent to reach the Angolan capital, Luanda, were arrested over the weekend by the country’s Foreigners and Migration Services (SME).
According to a SME note that reached Angop, the group of illegal immigrants includes five children aged less than 11 years, and will be repatriated in coming days.
Another group, of 17 people coming from DR Congo, was repatriated in 15 days, accorss the Kimbele border line (Uíge).
Angola: Growers Increase Coffee Price
7 July 2010/AngolaPress/allafrica.com
Amboim — The decision, according to a note produced at the end of the meeting, aims to help growers meet charges resulting from bank interests.
Coffee producers defend the opening of commercial banks in the region, aiming to finance production as, they say, without support revenues will be insufficient.
According to Kwanza Sul provincial director of Agriculture, Afonso Mário, 6,915 grower families, plus 5,000 individual producers.
The source recalled that, in 2002 production reached 1,000 tonnes of coffee from an area of 23,762 hectares, against the current 3,000 tones out of 18,000 hectares.
SOUTH AFRICA:
Some Zimbabweans Leaving South African Homes, Fearing Xenophobic Attacks
South African media reported that Zimbabweans and other Africans are camping at truck stops in a bid to catch rides from the Western Cape and other hot spots to Johannesburg, and from there back to Zimbabwe
Sandra Nyaira/www1.voanews.com/07 July 2010
| Washington
Some Zimbabweans living in South Africa have been leaving troubled parts of the country as threats of xenophobic attacks upon the conclusion of the World Cup of soccer proliferate, spreading fear.
South African media reported that Zimbabweans and other Africans are camping at truck stops in a bid to catch rides from the Western Cape and other hot spots to Johannesburg, eventually hoping to return to Zimbabwe.
Media reports quoted such foreigners as saying local South Africans warned them to pack their bags if they did not want trouble. Landlords were said to have refused to accept July rents, fearing for their premises.
Such accounts prompted Western Cape Premier Helen Zille to urge President Jacob Zuma to to issue a public call for tolerance. Reports said her concerns have been forwarded to an inter-ministerial committee on xenophobia.
Zille’s spokeswoman, Tracy Venter, told VOA Studio 7 reporter Sandra Nyaira that the province is working with the United Nations, churches, police and non-governmental organizations to keep threats from leading to following the finals of the World Cup, during which officials have been particularly vigilant against all crime.
In a related development, Grace Machel, wife of former President Nelson Mandela, launched a civil society coalition to fight against xenophobia in the post-World Cup period.
Zimbabwe Exiles Forum Executive Director Gabriel Shumba, present at the launch of the initiative, said a nationwide march against xenophobia is planned among other activities to encourage tolerance.
DJ Five Killed At Aquarius Platinum’s Marikana Mine – Union
Wed, 07 Jul 2010 /www.tradingmarkets.com
Symbols: AQPBF
JOHANNESBURG, Jul 07, 2010 (Dow Jones Commodities News via Comtex) —
Five mineworkers have been killed and another injured by falling ground at Aquarius Platinum Ltd.’s (AQP.AU) Marikana operation in South Africa, the country’s largest trade union said Wednesday.
The National Union of Mineworkers said two of the five dead contract workers’s bodies have been retrieved and an operation is underway to recover the others. One worker is in critical condition in hospital, while another was rescued unhurt, the union said.
AFRICA / AU :
Africa Prospects Lure Investors, but Is It Ready?
By Matthew Tostevin and Stuart Grudgings/Reuters/July 7, 2010
SAO PAULO (Reuters) – Africa offers among the world’s best investment prospects as emerging markets grow ever more important, although its economies risk being destabilized by the slew of capital they stand to attract in coming years.
Energy-producing continental giant Nigeria was identified as a top pick by some of the most influential figures in emerging markets finance who spoke to the Reuters Emerging Markets Summit in Sao Paulo last week.
Africa withstood the financial crisis better than many predicted, and the region’s economic growth is forecast at 4.75 percent in 2010. Next year, half of the world’s 10 fastest growing economies are expected to be in Africa, and it is now attracting more than just the most intrepid investors.
“The latent interest in Africa is enormous,” said Stephen Jennings, chief executive of Russian investment bank Renaissance Capital, speaking to the Reuters meeting by video link from Moscow.
“Before the crisis there were probably 40 people or groups establishing Africa funds. In 3-4 years you’ll have 100 Africa funds and the biggest one won’t be $2 billion, it’ll be $20 billion.”
Fund tracker EPFR reports 43 consecutive weeks of net inflows to Africa equities funds, reaching $484 million in the first half of 2010 — nearly double those to India over the same period.
Africa’s advocates say the inflows stand to accelerate rapidly as a dearth of attractive returns in the developed world pulls investors in while a more stable political and economic environment indicates diminishing risks.
MSCI’s index of Africa countries outside South Africa , though well off its year highs, is still up nearly 8 percent in 2010. The S&P 500 is more than 8 percent down.
BRIC LINKS
A shift of global economic power to emerging giants such as Brazil, Russia, India and China — known collectively as the BRICs — benefits Africa as surging economies seek its resources and push up commodity prices and investment.
Brazil, Russia and India still trail China, which last year became Africa’s biggest trade partner, but they have been rapidly expanding trade and putting more money into Africa.
“What’s absolutely striking is how much change there’s been between the BRIC countries and Africa,” said Jacko Maree, chief executive of South Africa’s Standard Bank, which is Africa’s biggest. “We like to think that the whole story has only just begun.”
Brazilian firms with a large African presence may soon issue bonds in South African rand to seize on growing interest, said Standard Bank’s chief executive in the Americas, Eduardo Centola.
NIGERIA TOP PICK
Nigeria’s market of about 140 million people — nearly three times bigger than South Africa’s — as well as its energy resources and bigger, more liquid markets, makes it the top choice for many eyeing Africa.
On the Goldman Sachs’ growth-environment index, which measures a mixture of economic and social development indicators, Nigeria’s score has nearly doubled over the past decade.
“If it were to show the same increase in its growth-environment score over the next decade, many investors will look back and say why the hell didn’t I invest in Nigeria,” said Goldman Sachs’ global head of economic research Jim O’Neill, who coined the term BRICs.
Ethiopia and Rwanda are among the smaller African economies seen as promising. They show how previously ignored countries scarred by war are emerging as possible investment magnets alongside those such as Ghana, a relatively stable democracy which is soon to become an oil producer.
There are risks, though, with concerns over political stability even in bigger economies such as Nigeria and Kenya.
Africa experts underline the fact that new mineral riches have rarely been shared widely, and suggest reliance on such income for national coffers could discourage establishing tax bases that would put states on a sounder footing.
“Where I think the real caution has to come in is the quality of the growth,” said Patrick Smith of the Africa Confidential newsletter. “It would be pretty silly to say success is certain.”
A big influx of investment funds could in itself pose a problem for African countries less prepared to cope than those in other rapidly growing regions that have felt the pain of such flows in the past.
“Africa has no experience of huge capital inflows,” said Renaissance’s Jennings. “Under the scenario I’m painting, the capital inflows will be way above and beyond the ability of those countries to absorb them.”
Most African countries have small, illiquid markets and little financial infrastructure, raising the chances of economic distortions and asset bubbles that could lead to currency crises and long-term damage.
“People look at how certain African economies have been getting their act together and there is a risk you will get significant capital inflows,” said Mohamed El-Erian, chief executive of PIMCO, the world’s largest bond investor.
“That will provide quite a challenge to policy makers.”
(Editing by Kieran Murray)
Africa Gold Rush May Wane for Vodafone, Bharti as Margins Slip
July 07, 2010/By Matthew Campbell and Nicky Smith/Bloomberg
July 7 (Bloomberg) — Vodafone Group Plc, France Telecom SA and Bharti Airtel Ltd., which spent at least $18 billion on deals in Africa and the Middle East in the last two years, may face lower margins in the world’s fastest-growing phone markets.
Countries with as many as 11 operators, falling tariffs, a shrinking pool of new customers who can pay the bills and unpredictable government regulation are weighing on profit for companies operating in Africa.
“The next round of growth in Africa is not as profitable as the first stage, and the difference is quite dramatic,” said Mike Dunning, a managing director at Fitch Ratings in London. “You hit a certain point where you’ve got all the juicy subscribers covered, and you have to mine the people who can’t really afford the service.”
Nigeria, Africa’s most populous country, had 11 mobile operators at the end of 2009, compared with about four in European countries. In Tanzania, tariffs fell by 80 percent in the 18 months to May, according to Vodafone’s South African unit, Vodacom Group Ltd.
European companies haven’t been deterred because revenue gains in Africa are still faster than stagnant or slowing growth at home. France Telecom Chief Executive Officer Stephane Richard said in April the Paris-based company may spend as much as 7 billion euros ($8.8 billion) on deals in Africa and the Middle East in the next five years.
Still Growing
Vodafone is targeting sub-Saharan Africa as one of three “priority areas” for expansion, and Vivendi SA has built up its Maroc Telecom unit with deals in Mali and Burkina Faso.
“Five years ago, it took half a year to recover investments in infrastructure for new clients,” said Marc Rennard, the head of France Telecom’s African and Middle Eastern operations. “Now it’s more than two years, but that’s still pretty good.”
Services revenue in Africa, which grew 3.4 percent to $48.7 billion last year, will rise 2.9 percent this year and 7.9 percent next year, according to market researcher Gartner Inc. The region is still one of the largest untapped mobile-phone markets with about 300 million unsigned subscribers as of last year. Still, operators expanding with those growth rates in sight may be less willing to pay rich premiums for assets.
Bharti paid $9 billion, or about 10 times annual earnings before interest, taxes, depreciation and amortization, for Zain’s African assets. The assets had also had been considered by Vivendi before it balked at the price.
‘Gold Rush’
“Except in a truly special case, we wouldn’t be prepared to pay 10 times Ebitda for a target,” France Telecom CEO Richard said on July 5.
Vodacom had also been in talks with Zain “long before Bharti,” said Pieter Uys, Vodacom’s CEO. It walked away from the price “knowing the businesses, knowing the countries, knowing the opportunities,” he said. Vodacom would pay as much as six or seven times earnings for the right assets, Chief Financial Officer Rob Shuter said.
“The glory days and gold rush are over to some extent,” said Dave Hagedorn, a former mergers and acquisitions executive at Zain’s Celtel unit.
Few large deals remain on the continent. MTN Group Ltd., Africa’s largest mobile-phone company, last month halted talks to purchase $10 billion of assets from Orascom Telecom Holding SAE after Algeria’s government blocked a sale of the company’s local unit, the most profitable in the portfolio.
Shortage of Assets
Africa has “a serious shortage of available assets,” with multinational companies already controlling many operators, said David Lerche, an analyst at Avior Research in Cape Town. “There is no country that stands out with a high GDP and a high population to be a big, exciting, worthwhile acquisition.”
Kinnevik Investment AB’s Millicom International Cellular SA, with operations from Chad to Tanzania, may be “the only real possibility to buy something that is more or less worthwhile,” Lerche said.
Millicom Chief Executive Officer Mikael Grahne said in an interview in May that Africa has too many licenses and that the Luxembourg-based company may sell units that can’t be among the top two operators in their countries.
With multiple companies in markets, profit margins have been sliding. In Sierra Leone, the margins of Mobile Telecommunications Co., known as Zain, tumbled to 7 percent in the nine months to September 2009 from 26 percent in the year- earlier period. MTN’s Ebitda margins slipped to 41 percent last year from about 44 percent in 2007.
“We do not want to deteriorate our Ebitda ratio, but we need growth,” France Telecom’s Rennard said. Margins in Africa are higher than those in Europe, according to CEO Richard.
In addition, mobile companies are grappling with the operational challenges in some of the world’s poorest countries.
Governments, Regulations
Operators also face mercurial governments and partners. In October, a government-commissioned body in Ghana recommended renegotiating the sale in 2008 of a 70 percent stake in Ghana Telecommunications Co. to Vodafone. The U.K. company in April said it will begin arbitration proceedings after shareholders in its Democratic Republic of Congo venture failed to reach agreement on issues including a capital restructuring.
Tanzania last month told Bharti it needs to hold a second round of talks with the government over its purchase of Zain ’s unit in the country. Countries from South Africa to Nigeria are also pushing for registration of mobile users and slashing interconnection rates, both weighing on profit margins.
At the same time operators are rarely able to build a loyal customer base.
Switching Operators
More than 95 percent of African mobile subscribers pre-paid for their service last year, the highest proportion of any region in the world. With no penalty for switching operators, between four and six percent do so every month, costing the African mobile industry about $11.4 billion annually, according to consulting firm Green Giraffe.
To lower churn, operators could try to sell African consumers long-term data plans, analysts say. Doing so will mean selling higher-end phones and subscriptions to consumers accustomed to cheap, pre-paid voice and text service.
“Mobile data is the next area, and that’s yet to be tested,” Nick Jotischky, an analyst at Informa Telecoms & Media, said by phone. While the most promising value-added service is mobile banking like that offered by Safaricom Ltd in Kenya, “no one’s been able to replicate it entirely,” he said.
Value-added services will be marginal for the foreseeable future as underserved rural areas are connected, said Rosalind Craven, an analyst at Business Monitor International in London.
“All growth is at the bottom of the market,” making cost control critical for operators, she said. “Previously, this was ignored in a mad scramble to expand.”
–Editors: Simon Thiel, Vidya Root.
Nile Basin initiative deadlock
Source: WaterLink International /www.environmental-expert.com/Jul. 7, 2010
Water ministers from five Nile basin countries could not settle their differences on the language of a new river treaty when meeting last weekend, but said they will uphold a one-year deadline for other basin members to enter the agreement. Government officials from Egypt and Sudan have said they will only sign a
n agreement if it protects their current use.
After more than a decade of negotiations, five upstream countries (Ethiopia, Kenya, Rwanda, Tanzania and Uganda) decided in May to move forward and sign the new treaty without the consent of basin heavyweights Egypt and Sudan. The Cooperative Framework Agreement would establish laws and institutions to govern the development of the Nile River.
‘The way the treaty is explained in the media is that they are allocating all the water and there will be impacts in Egypt and Sudan and this is not true,’ said Ana Cascao of the Stockholm International Water Institute. ‘If Egypt and Sudan do not sign they will not be bound by the treaty. And there are no allocations in the agreement, not a single number. It’s basically about principles.’
‘Half the articles are about principles of international water law, half are about institutions; who is going to be president, who will manage the organisation, and so on,’ Cascao added.
The river’s current legal regime favours downstream users. That treaty, signed in 1959, divided two-thirds of the annual flow of the Nile between Egypt and a newly-independent Sudan with a veto over upstream development projects allocated to Egypt.
With the assistance of the World Bank and the United Nations, basin countries established the Nile Basin Initiative in 1999 to increase dialogue. One of the primary goals of the organisation was to sign a treaty creating a permanent Nile Basin Commission with legal authority over the development of the river. Four countries (Burundi, Democratic Republic of Congo, Egypt and Sudan) did not sign and were given one year to decide at a June meeting of the Nile Basin Initiative in Ethiopia. The treaty needs one more ratification to be legally binding for its members.
The point of contention is Article 14(b) which addresses water security. Government officials from Egypt and Sudan have said they will only sign an agreement if it protects their current use. The Nile is Egypt’s only perennial river and nearly 100% of its flow originates outside the country’s borders. ‘Egypt’s share of the Nile’s water is a historic right that Egypt has defended throughout its history,’ Mohammed Allam (minister of water resources and irrigation) told parliament after a round of failed negotiations in May. ‘Egypt reserves the right to take whatever course it sees suitable to safeguard its share.’
A major benefit to the commission is the exchange of information about planned projects. According to Cascao, ‘The alternative, and I would say worst case scenario, is unilateral construction of infrastructure, not taking care to inform downstream countries and just building. The world has changed a little bit recently and the World Bank and bilateral donors are not the only donors available any more. The case of China shows this very well. China is supporting a lot of projects – roads, dams, irrigation schemes – in these countries already.’
The Nile Basin Initiative will meet again in autumn to reconsider the treaty.
UN /ONU :
Sudan – UN officials meet in Al Fashir to discuss Darfur peace
www.isria.com/07072010
The United Nations is organizing a retreat as a continuation of the Kigali conference in Al Fashir town of Northern Darfur State, on Monday.
The Joint Special Representative (JSR) of the United Nations/African Union Mission in Darfur (UNAMID), Ibrahim Gambari, the special representative of the UN Mission in Sudan (UNMIS), Haile Menkerios.
In addition to the Special Envoys of the permanent members of the United Nations Security Council and the European Union to the Sudan will participate in the conference. The retreat is aimed at reviewing the current situation and developing a common, agreed understanding on the Darfur political process. It will also look for a way forward to help Darfuris and all the people of the Sudan achieve lasting peace.
Speaking to Radio Miraya, the spokesman of the UNAMID, Kemal Saiki, said that the retreat focuses on supporting peace efforts in the region and means to deliver humanitarian assistance.
Meanwhile, some international envoys have started arriving in Al-Fashir to attend the one day event.
USA :
CANADA :
Congo’s Government Says First Quantum `Smear Campaign’ Hurting Investment
By Michael J. Kavanagh /www.bloomberg.com/Jul 7, 2010
Congo’s government accused First Quantum Minerals Ltd. of conducting a “smear campaign” that is discouraging foreign investment in the Central African nation.
The Vancouver-based miner is fighting efforts by the Congolese state and courts to close one of its copper and cobalt projects in the country and take away the rights to two others. First Quantum in a statement on May 24 described the actions as an “orchestrated attack” on its more than $1 billion worth of investments in Congo and said the government’s objectives were “questionable.”
“I have never seen a company going against a host government in a smear campaign like this,” Bene M’Poko, Congo’s ambassador to South Africa, said by phone from Johannesburg on July 5. The company is “giving a bad name to the country in which it wants to operate,” he said.
Congolese President Joseph Kabila has charged M’Poko with coordinating the government’s response to the First Quantum case, the ambassador said.
First Quantum President Clive Newall said in an e-mail late yesterday he wasn’t immediately able to respond to M’Poko’s comments because he is traveling.
The uncertainty caused by the First Quantum dispute has resulted in a 40 percent increase in political risk insurance in Congo, according to the African Trade Insurance Agency. It’s also earned the country criticism by the Group of Eight nations about Congo’s business climate and a moratorium on new investment by the World Bank’s International Finance Corp. The IFC is a minority investor in First Quantum’s $750 million Kingamyambo Musonoi Tailings Sarl copper and cobalt project.
Debt Relief
The dispute with First Quantum also threatened a decision on Congo’s request for debt relief at the World Bank and International Monetary Fund last week, after Canada asked for a delay in the vote and tried to link Congo’s debt relief to improvements in governance and the management of its resource sector. The $8 billion debt relief package eventually passed on July 1, with Canada abstaining.
The conflict between First Quantum and the government began during Congo’s two-and-a-half year revision of all of its mining contracts, M’Poko said. The review was meant to “level the playing field” so that all projects adhered to a new mining code and benefited the country, he said. Many of Congo’s mining contracts were signed while the country was at war or under a transitional government.
“The KMT people are the only ones who refused to renegotiate,” M’Poko said. “They refused with a lot of arrogance.”
Negotiated Settlement
The government canceled the KMT contract in August. On Feb. 1, First Quantum, IFC and a third partner, South Africa’s Industrial Development Corp., took the case to international arbitration in Paris. The group continues to call for a negotiated settlement.
First Quantum and its partners will be paid for the investments they’ve already made in developing the site, M’Poko said.
“My government is not in the business of expropriating private assets,” he said. “They’ll be properly compensated, but we haven’t reached that stage yet.”
Canada Should Partner With China to Build Vaccine and Manufacturing Capacity, New CIC Paper Argues
by mincho2008 /pr-canada.net/Wednesday, 07 July 2010
Over the past decade, public health issues have come to be recognized as among the most pressing and difficult challenges to global security and international relations. They have the potential to destabilize governments, create havoc for national economies and disrupt international trade.
A new paper released today by the Canadian International Council (CIC), China’s Capacity to Respond to the H1N1 Pandemic Alert and Future Global Public Health Crises: A Policy Window For Canada, argues that Canada should support China in strengthening the vaccine development and production dimension of its national public health capacity.
“There are at least two significant indicators that China is interested in developing its vaccine export capacity, which have relevance to the role Canada could play in a global partnership with China,” says Lesley Jacobs, author of the paper.
Dr. Jacobs’ paper argues that the first indicator is that China’s leading pharmaceutical company, SINOVAC, has indicated its interest in joining the International Federation of Pharmaceutical Manufacturers & Associations and, in particular, becoming involved in it Influenza Vaccine Supply International Task Force. The other indicator revolves around the WHO’s recognition of international vaccine producers. The Minister of Health has indicated that China will apply to the WHO for approval of its H1N1 vaccine. This approval will make it easier for China to donate vaccines to other countries, presumably some of the countries in Africa with which it has close ties.
Dr. Lesley Jacobs (BA, MA, Political Science, UWO; PhD, Politics, Oxford) is Professor of Law and Society and Political Science and Director of the York Centre for Public Policy & Law at York University in Toronto, Canada. China’s Capacity to Respond to the H1N1 Pandemic Alert and Future Global Public Health Crises: A Policy Window For Canada is part of the CIC’s 2010 China Paper series.
The Canadian International Council (CIC) is an independent, member-based council established to strengthen Canada’s role in international affairs. The CIC reflects the ideas and interests of a broad constituency of Canadians who believe that a country’s foreign policy is not an esoteric concern of experts but directly affects the lives and prosperity of its citizens. The CIC uses its deep historical roots, its cross-country network and its active research program to advance debate on international issues across academic disciplines, policy areas and economic sectors. The CIC’s research program is managed by the national office in Toronto. Its 15 branches across Canada offer CIC members speakers’ programs, study groups, conferences and seminars.
PM announces funds for science education — here and in Africa
By Adrian Humphreys, Canwest News Service /www.montrealgazette.com/National Post/July 7, 2010
WATERLOO, Ont. — For Prime Minister Stephen Harper, Tuesday might have been the sort of dynamic day he imagined when seeking the country’s highest elected office: Waving goodbye to Her Majesty and then taking the podium beside another global icon — a frail Stephen Hawking, the world’s best-known living scientist.
After a Toronto sendoff for the Queen and the Duke of Edinburgh at the conclusion of a nine-day Royal visit, the prime minister scooted 100 kilometres west to Waterloo, Ont. — home of the Perimeter Institute for Theoretical Physics — to announce government money for post-doctoral research fellowships in Canada and support for the Next Einstein Initiative, a program to develop the top young minds in Africa.
Against a cliched, but nonetheless effective, backdrop of a blackboard with complicated-looking scientific equations scrawled on it in chalk — the sort of thing seen in films such as Good Will Hunting and A Beautiful Mind — the audience waited patiently as a microphone was placed against the speaker of the computer speech synthesizer Hawking uses to communicate.
After a full two minutes of silence that was broken only by a series of quiet beeps, the famed British physicist’s remarks were reproduced through his computer.
Hawking — who is almost entirely paralyzed by Lou Gehrig’s disease — praised the Canadian government’s “exciting announcement.”
“Science is a powerful unifier of people from all countries and cultures. I believe that connecting Africans to each other and to the world through science is one of the best investments one can make in Africa’s future,” he said.
“I am also delighted that the government of Canada is supporting a major new program of post-doctoral fellowships. By investing in young scientists it is setting an example that other countries would do well to follow.”
It was in the presence of Hawking and inside the sparkling, beautiful and still-under-construction home of the Perimeter Institute — established in 2001 by Mike Lazaridis, the founder and co-CEO of Research in Motion — that Harper announced the science and technology initiatives.
The circumstances were not by accident.
Harper pointed to the “stunning commercial success” of the BlackBerry as proof that “science powers commerce” and it can make life better in Canada and around the world.
The government funding will include money for 70 annual research fellowships, at a cost of $45 million over five years.
The fellowships are named in honour of Frederick Banting, the Canadian Nobel laureate famed as a co-discoverer of insulin, with family members of the Alliston, Ont.-born doctor, who died in 1945, in attendance.
The fellowships are designed to invest in the people and technologies that will “produce tomorrow’s breakthroughs,” said Harper.
“If there is . . . a universal constant in human affairs, it is that the expansion of knowledge and technology has continuously made life better for more people. That is why our government is supporting scientific, technological research as well as development at home and abroad,” Harper said.
Harper also pledged $20 million for the African Institute for Mathematical Sciences Next Einstein Initiative, designed to speed the growth of science and technology capacity in Africa by developing the talent of its brightest young minds.
He said the initiative helps ensure a “balanced distribution” of scientific knowledge.
Last month, Hawking started a six-week visit as a distinguished research chair at the Perimeter Institute.
Neil Turok, the institute’s director and founder of AIMS, said: “Canada is famous as a country with a big heart. It is fast becoming famous as a country which is smart.”
He praised Harper for his “belief in a future for Africa every bit as bright as Canada’s.”
AUSTRALIA :
Aspen Makes Reduced Bid for Sigma Pharmaceuticals
By NEIL SANDS /online.wsj.com/JULY 7, 2010
MELBOURNE — Sigma Pharmaceuticals Ltd. Wednesday said South Africa’s Aspen Pharmacare Holdings Ltd. has made a formal takeover offer but lowered the bid to 55 Australian cents a share.
The revised bid for the debt-laden Australian generic drug maker, down from 60 cents a share, came with a list of more than 10 conditions, which analysts said raised questions about whether Aspen was serious about the acquisition.
Sigma said Aspen was continuing due diligence following the offer, which reduces the suitor’s valuation of the company to 648 million Australian dollars (US$551 milion) from A$707 million.
“The Sigma board is considering the proposal and recommends that shareholders take no action at this stage,” it said in a statement.
Aspen’s new bid came with a shopping list of conditions, including a conditional break fee, no material decline in Sigma’s position and continuation of the company’s existing major contracts and credit arrangements.
It also demanded that Sigma extend exclusive due diligence to Aug. 2 and agree not to seek out rival bids.
Sigma shares rose as much as 19% to 47 Australian cents but failed to reach the 55 cent offer. Recently, the company was trading up 11% or 4.5 cents at 44 cents.
Shaw Stockbroking healthcare analyst Matthijs Smith said the rise in Sigma’s share price Wednesday probably indicates that investors had expected Aspen to either walk away from the bid or submit an even lower offer than 55 cents a share.
He said the list of Aspen’s conditions “suggests it doesn’t have a hearty appetite” for the deal.
Since Aspen made its original offer in May, Sigma has said its generics business continues to struggle, making the company unlikely to meet its full-year budget, including forecast net profit of about A$80 million.
Sigma shares have been in the doldrums since March 31, when it reported a A$389 million full-year net loss, including a huge goodwill write-down on its A$2.2 billion merger with Arrow Pharmaceuticals in 2005.
It may need to sell assets in order to pay creditors A$100 million by March 31 next year, and has been hit by government cuts to generic drug subsidies.
The company last month recruited former chief financial officer Mark Hooper as its new chief executive.
EUROPE :
Romania-Egypt trade could hit 500 mln dollars
Date: 07-07-2010 /www.actmedia.eu
The trade between Romania and Egypt could hit 500 million dollars a year, said chairman of the Egypt-Romania Business Council Hassan El Shafei.Raising the volume of the Romanian-Egyptian commercial exchanges to 500 million dollars is part of the goals set in the Cooperation Agreement signed in Cairo by the Bucharest Chamber of Commerce and Industry (BCCI), the Egypt-Romania Business Council and the Egyptian Businessmen’s Association (EBA), a BCCI release to Agerpres on Tuesday quotes El Shafei as saying.
Other measures set in the Council’s action plan that its chairman cited include the achievement of annual investments of 10 million euros, with Romania to provide the know-how and the production lines. The two business communities can together enter third markets, with stress on Ethiopia and Tunisia and they can address such priority cooperation areas as research and education.
The existence of systems characterised by stability in the political and legislative area and of competitive privatisation opportunities are as many arguments for the achievement of Egyptian investments in Romania, BCCI chairman Sorin Dimitriu said. To these adds the fact that Romania, in its capacity of a European Union member, can provide Egypt access to the EU area and to the ex-Soviet states, he stressed.
Other possible attractions for the Egyptian investors, Dimitriu said, include the existence of the EU research funds Romania also benefits from as well as the opportunities in aerospace and aviation, as Romania cooperates on these sectors with Germany, the Czech Republic and France.
‘Egypt could be a partner in the opening of a representative office of the Bucharest Chamber in northern Africa and even for Central and North Africa’, the second of its kind in the Middle East, after the one opened in Sharjah, the United Arab Emirates, Dimitriu said.
CHINA :
INDIA :
Dreaded’ fault in undersea cable stymies internet
THABISO MOCHIKO/www.businessday.co.za/Published: 2010/07/07
A FAULT in the Seacom undersea cable which runs along Africa’s east coast has interrupted internet access for millions, including local users.
Seacom said yesterday that its undersea cable system had collapsed, disrupting services from Kenya to India and Europe.
“This is the one thing we have been dreading,” said Suveer Ramdhani, Seacom’s spokesman.
The undersea cable has been in operation for a year and provides broadband internet access. Internet Solutions and MWeb subscribers appear to be worst hit.
Mr Ramdhani said initial investigations had revealed that there was a fault on the component that amplified the signal.
“We had to get a ship to get it out and it is 4700m deep. We will repair it and also determine the cause of the fault,” he said.
He warned that the repairs could take up to a week.
“The actual duration is unpredictable due to external factors such as transit time of the ship, weather conditions and time to locate the cable,” he said.
The outage affects all internet service providers which use Seacom for international bandwidth.
But users can still gain access to internet sites located in SA and in the rest of Africa.
Internet traffic from Africa to sites in Europe and India was disrupted. Mr Ramdhani said Seacom was trying to find alternatives for its clients while the repairs were done.
Internet traffic would be routed on to other cables such as the East African Marine System and Telkom ’s SAT3/SAFE cable system, he said. Sean Nourse, an executive in charge of connectivity services at Internet Solutions, said that company’s international clients on consumer DSL and Velocity packages were affected, but business DSL clients were not experiencing any problems because the company used Telkom’s SAT3 cable as a backup.
MWeb uses Seacom as its primary provider of international bandwidth, with a limited amount of backup on Telkom’s SAT3/SAFE cable.
MWeb was able to secure alternative capacity on Telkom’s South African Internet Exchange network on Monday evening. But that lasted only until yesterday afternoon because the exchange withdrew the capacity due to concerns over its bandwidth commitments to Fifa for the World Cup, said Derek Hershaw, CEO of MWeb ISP.
“MWeb is in urgent and ongoing discussions with a number of providers to obtain alternative bandwidth until the Seacom capacity has been fully restored,” he said.
He said MWeb’s local internet traffic was unaffected.
mochikot@bdfm.co.za
Bajaj Auto Seeks 70% of Sales From Overseas, Challenging Honda
July 07, 2010/By Vipin V. Nair and Arijit Ghosh/Bloomberg
July 7 (Bloomberg) — Bajaj Auto Ltd., India’s second- largest motorcycle maker, plans to win 70 percent of sales from overseas, challenging Honda Motor Co. in Latin America, Asia and Africa.
“It will take us several years, but it only shows how much headroom there is for Bajaj even if we only focus on motorcycles,” Managing Director Rajiv Bajaj, who has asked all employees to carry a note with the company’s vision statement in their pockets, said in an interview. Bajaj earned about 30 percent of sales overseas last year.
The motorcycle-maker also eventually aims to roughly triple global market share to 30 percent, either using partnerships with KTM Power Sports AG and Kawasaki Heavy Industries Ltd., or building new networks to win market share from Honda and Chinese rivals. Indian companies including Bajaj Auto and Bharti Airtel Ltd. are expanding in countries such as Indonesia, Brazil and Nigeria as economic growth boosts demand for products from motorcycles to mobile-phone services.
“It will be easy for Bajaj to compete with Chinese products in overseas markets,” said Umesh Karne, a Mumbai-based analyst at Brics Securities Ltd., who has an ‘outperform’ rating on the stock. “The challenge will be to compete with Honda, which has a bigger brand and wider distribution networks around the world.”
Bajaj Auto, the best performing stock in the MSCI India Index this year, gained 0.4 percent to 2,446.85 rupees in Mumbai at 9:24 a.m.
5 Million Sales
Bajaj Auto, which sold a record 2.8 million vehicles in the year ended March 31, is targeting sales of 5 million by 2012, according to the company’s vision statement. The company makes Pulsar and Discover motorcycles as well as three-wheelers.
“The whole of the southern hemisphere is relevant for Bajaj Auto,” Bajaj, 43, who practices yoga every morning to keep fit, said on July 5. “There’s always a chance in the market for a strong number 2.”
Honda sold 9.63 million motorcycles last year, including sales at Hero Honda Motors Ltd., India’s largest motorcycle- maker. Honda owns 26 percent of Hero Honda.
Bharti Airtel, India’s biggest mobile-phone company, last month acquired the African assets of Kuwait’s Mobile Telecommunications Co. to enter the continent’s market. Nigeria’s economy, the second-largest in sub-Saharan Africa after South Africa, grew 7.2 percent in the first quarter and 7.4 percent in the previous three months.
Brazil, Latin America’s biggest economy, expanded 9 percent in the first quarter, its fastest pace in more than two decades, while Indonesia’s central bank forecasts gross domestic product to expand as much as 6.5 percent in 2011.
Using Partnerships
Bajaj Auto, which owns about 36 percent of Austria’s KTM Power and has had a technical partnership with Kawasaki since 1984, may use these tie-ups to enter new markets. Bajaj Auto partnered with Kobe, Japan-based Kawasaki to sell motorcycles in the Philippines and it assembles Kawasaki Ninja motorcycles in India.
The world’s biggest maker of three-wheelers also plans to spend about 5 billion rupees ($107 million) on developing a small car in India to supply to Renault SA, Bajaj said.
The automaker may use the low-cost car’s platform to develop more products in future, Bajaj said. The company is aiming to develop a car that will cost owners about 5,000 rupees a month in financing, fuel and other expenses, compared with about 3,000 rupees for a motorcycle.
–Editors: Abhay Singh, Neil Denslow
Bharti Airtel to invest $600 mn in Nigerian operations
7 Jul 2010/economictimes.indiatimes.com
ABUJA: India’s largest cellular service company Bharti Airtel will invest USD 600 million in Nigeria’s mobile market following its take over of Zain
Telecom’s African business for around SUD 10.7 billion.
Manoj Kohli, the CEO international and joint managing director, told reporters in the country’s commercial capital, Lagos, yesterday that Bharti will also invest in rural telephony and introduce a corporate social responsibility programme that includes setting up of schools that would offer free quality education to underprivileged children in rural communities.
“We are very delighted to be in Nigeria and at the outset like to express our deep gratitude and than the government of Nigeria for their overwhelming support. We want to be a partner in Nigeria’s growth and will work with the government to take the telecom network deep into all corners of the country to touch the common man,” Kohli said.
The company will also bring its ecosystem of global partners to Nigeria and this will increase employment opportunity in the country with teeming number of unemployed school leavers.
Kohli said Bharti will embark on an aggressive expansion in Nigeria in order to boost the profile of the country with a population of 150 million people as an emerging market powerhouse.
He noted that mobile phone customers in Nigeria use only 50 minutes of airtime a month whereas 450 minutes is obtainable in India and promised to make an improvement.
He sounded optimistic about the future of Africa stating: “If a company hopes to grow, they have to be in Africa and the jewel of Africa is Nigeria.”
Zain’s Nigeria CEO Rajan Swaroop said: “In Nigeria we will continue to build on the momentum …introduce innovative products and services for our customers in Nigeria.”
Mobile telephony was introduced in Nigeria in the early 2000 and South African-based MTN controls half of the market despite the presence of some other companies like Globacom and Etisalat.
However, lowering of call tariff may give Bharti an edge as most Nigerians complain of high cost of making calls.
Bharti Airtel embarked on the largest ever telecom takeover by an Indian firm on June 8, 2010, when it completed a transaction to buy Kuwait-based Zain Telecom’s businesses in 15 African countries for USD 10.7 billion.
The Africa holdings include Burkina Faso, Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Sierra Leone, Tanzania, Uganda, Chad and Zambia.
BRASIL:
Brazilian President commends Kenya for embracing reforms
By:PPS/www.kbc.co.ke/Wed, Jul 07, 2010
Brazilian President Luiz Inacio Lula da Silva has commended Kenya for embracing reforms geared towards entrenching democracy and boosting the economy.
Referring to the Proposed Constitution, the Brazilian President said the forthcoming referendum offers Kenyans an opportunity to participate in the decision to adopt a new constitution that reflects their aspirations.
“Your country is a symbol of the new Africa that is built on democracy and respect for human dignity,” President Lula da Silva said.
The Brazilian President was speaking on Tuesday at the Intercontinental Hotel during a luncheon hosted in his honour by his host President Mwai Kibaki.
The visiting Head of State also lauded Kenya’s role in regional peace, noting that the country has continued to play a pivot role in the search for lasting peace in the Sudan and Somalia.
On trade, President Lula da Silva said time has come for Kenya to diversify its export base and encourage more foreign investment.
“That is why I came visiting with Brazilian business people. We are committed to developing strong trade partnerships with Kenya,” President Lula da Silva said.
The Brazilian President said his Government was also keen on building partnerships with the Kenyan Government and business community.
Trade Fair
Speaking at the luncheon, President Kibaki encouraged Brazilian businesses to invest in Kenya, which is the entry point to the East Africa and the Great Lakes region.
The President said the two countries should conclude the ongoing negotiations on mutual trade supporting mechanisms particularly the extension of credit lines for export trade and investment.
The President noted that President Da Silva’s visit comes at a time of great significance to both Kenya and the region, pointing out that only 5 days ago, the East African Community member states of Kenya, Uganda, Tanzania, Rwanda and Burundi started the implementation of the common market protocol.
He observed that the most important outcome of the protocol is a Common Market of 126 million people, with free movement of goods, capital, labour and services.
Noting that Brazilian and Kenyan businessmen Tuesday morning held a business symposium, the President said the meeting has laid the foundation and framework that will guide future interactions between Kenya, East Africa and Brazil.
Toward this end, President Kibaki said he was happy that Kenya will host the first Brazil – East Africa International Conference and Trade Fair in March next year, with a reciprocal conference and trade fair in Brazil to promote East Africa thereafter.
Saying Brazil has a demonstrated global competence and capacity in the pharmaceutical sector, sports and agriculture, the President welcomed Brazilian technology and expertise for the establishment of a pharmaceutical plant in Kenya to produce Anti-Retro Viral drugs for the region.
To further boost trade relations between the two countries, President Kibaki expressed optimism that the resumption of direct flights between Kenya and Brazil will provide the stimulus to boost trade and investments.
“Nairobi, as a regional hub, stands out as the most strategic location linking Brazil to the emerging economies in Asia and Middle East,” President Kibaki said.
In this regard, the President said the conclusion of Bilateral Air Services Agreement to facilitate faster movement of people, capital, goods and services was of paramount importance.
Said the President: “This becomes even more urgent considering that Brazil will be hosting the World Cup in TWENTY-FOURTEEN and the Olympics in TWENTY-SIXTEEN.”
Diplomatic presence
On bilateral relations, President Kibaki noted that the relationship between the two countries has been growing rapidly since Kenya located its very first diplomatic presence in South America in the Brazilian capital of Brasilia four years ago.
“Allow me to express my satisfaction with our existing good ties that have existed between our two countries during this period,” the Head of State said.
The President said it was also notable that Brazil was among the first countries to establish its diplomatic presence in Kenya and expressed confidence that the historic visit by the Brazilian President will further cement existing friendship between the two countries.
At the international level, President Kibaki observed that Brazil has ably voiced and articulated the two countries’ common positions as developing countries thereby creating a balance that has been lacking in multilateral fora.
The President, particularly, commended Brazil for mobilizing North-South partnerships to promote equity, shared prosperity, better international understanding and fair trade.
“It is imperative that the common voices of developing countries continue to be heard on issues that touch on human survival and social advancement. You can count on our partnership and solidarity in these endeavours,” President Kibaki said.
The luncheon was also attended by Vice-President Kalonzo Musyoka, several ministers, assistant ministers, members of parliament, senior Government officials of both Kenya and Brazil among other invited guests.
Meanwhile, the Brazilian President concluded his two-day official visit to Kenya on Tuesday evening.
The plane carrying the visiting President departed Jomo Kenyatta International Airport shortly before 5.00 p.m. and was seen off at the airport by his host President Kibaki.
EN BREF, CE 07 juillet 2010… AGNEWS /OMAR, BXL,07/07/2010
