{jcomments on} OMAR, AGNEWS, BXL, le 11 juin 2010 – Joshua French, who holds dual Norwegian-British citizenship, and Tjostolv Moland deny the charges, the BBC reports. They say Abedi Kasongo, who they had hired as a driver, was killed in an ambush by armed bandits.
BURUNDI :
Burundi Presidential Vote to Proceed Despite Opposition Boycott
Peter Clottey /www1.voanews.com/ 11 June 2010
The chairman of Burundi’s Independent Electoral Commission (CENI) said preparations are far advanced ahead of the presidential election scheduled for 28th June despite the opposition decision to boycott the vote.
Pierre Claver Ndayicariye told VOA that the electoral body has a track record of organizing elections that both local and international observers have judged to be free and fair.
“We are a technical commission and our mission is to organize technically the elections. Today, we are preparing (for) the presidential election, which are scheduled on 28th of June 2010. We are really preparing (for) this election,” he said.
This comes after the last remaining opposition presidential candidate pulled out of the upcoming vote citing concerns the elections will be rigged in favor of incumbent President Pierre Nkurunziza.
Several opposition groups have accused the electoral body of failing to prevent fraud in last month’s district elections won by the ruling CNDD-FDD party with over 60 percent of the votes. The opposition parties have also demanded a re-run of the district elections after rejecting the results.
But, electoral chairman Ndayicariye said, despite the boycotts, the presidential election will proceed as originally planned.
“In 2005, we had (only) one candidate and the election was organized and in Burundi (it) is not the first time we have had a single candidate…they (the opposition) were invited to participate, but they said it’s not good to continue to proceed participating in this election. It’s their own political will,” Ndayicariye said.
Observers say the boycott will seriously undermine the credibility of the election and weaken Burundi’s fledgling democracy.
Incumbent President Nkurunziza is expected to win by a landslide if the opposition parties continue their boycott of the presidential vote.
Chairman Ndayicariye said Burundians should expect a transparent vote.
“The Burundi people today really are very, very keen in supporting peace reconciliation and security. Burundi people have got many lessons from the past. We will like to see political party leaders to work together to support the democratic process,” Ndayicariye said.
Meanwhile, U.N. Secretary General Ban Ki-Moon, as well as other foreign diplomats, has called on the various opposition parties to reconsider their decision to boycott the 28 June election.
RWANDA
UGANDA
TANZANIA:
CONGO RDC :
Norwegians get new death sentence in DRC
June 11, 2010/UPI
KINSHASA, Democratic Republic of Congo, June 10 (UPI) — A military court in the Democratic Republic of Congo sentenced two Norwegians to death Thursday for espionage and murder.
Joshua French, who holds dual Norwegian-British citizenship, and Tjostolv Moland deny the charges, the BBC reports. They say Abedi Kasongo, who they had hired as a driver, was killed in an ambush by armed bandits.
The trial was their second. A re-trial was ordered in April after a previous tribunal convicted them last year, issued a death sentence and ordered the two men and the government of Norway to pay $500 million in damages.
The new court reduced the penalty to $65 million.
Reprieve, a non-profit legal group focused on opposition to the death penalty, called the second proceeding a “show trial.”
“This farce of a trial would be comical if the stakes weren’t so tragically high,” Tineke Harris of Reprieve said. “Each time the military prosecution changes their theory, the witnesses all obligingly change their story. It is now clear why the DRC’s own constitution forbids the military from administering justice.”
French and Moland hired Kasongo as a driver after their motorcycle broke down. The men, both ex-soldiers, were carrying Norwegian military identification, leading to the espionage charge.
KENYA :
Kenya: Man Admits to 19 Killings
By THE ASSOCIATED PRESS/ June 11, 2010
A man arrested on kidnapping charges has confessed to killing 19 people in three years and claimed his goal was to kill 100, the police said Thursday. The suspect, Richard Onyancha, 32, led officers to several murder scenes; at four, bodily remains were recovered, the police said. Mr. Onyancha was arrested last week after the police tracked him down through a cellphone he was using to send ransom demands to the family of a 9-year-old hostage, whom he had already killed.
Kenya: More Kenyans Can Now Own Homes
Mwaniki Wahome/Daily Nation/allafrica.com/11 June 2010
Nairobi — The Kenyan Government enhanced mortgage financing and opened up the insurance business to members of the East African Community.
Finance minister Uhuru Kenyatta also said the law would be amended to accommodate Islamic banking, which has been operating since 2007.
Mr Kenyatta increased the threshold of core capital that banks are allowed to invest in mortgage finance from 25 per cent to 40 per cent to enable more Kenyans to own homes.
He said the Microfinance Act will be amended to deepen agency banking by facilitating third party agents by deposit-taking MFIs.
The Banking Act, the minister said, will also be amended to allow the Central Bank of Kenya to reveal information on tax evasion, fraud, and criminal activity that they encounter in their surveillance of foreign exchange bureaus.
He also directed the CBK and the Kenya Revenue Authority to carry out a comprehensive audit of all bureaus in the country and submit a report by the end of September.
The Insurance Act will be amended to hold the directors of insurance companies liable for failure to submit members’ dues in statutory contributions.
A structured compensation scheme similar to that under the Workers Injury Benefit Act, capped at Sh3 million, will be introduced for motor vehicle third party risks.
The Deposit Protection Fund Board will be allowed to hold and sell unrealised securities after the winding up of an institution, while the Central Bank will be mandated to take prompt action to enhance stability in the banking sector.
In last year’s Budget, the minister introduced reforms in banking to accommodate agent banking through other financial institutions to increase the banked population that is currently estimated at 38 per cent.
However, savings and credit cooperative societies (saccos), rejected the move, fearing that this model would adversely affect their businesses.
Last week, Sacco Savings Regulatory Authority chairman Peter Gakunu said the concerns were accommodated in the regulations to be gazetted by the AG soon.
Banks were concerned about the high cost of collateral and had approached the government to find ways of having it contained.
Another MP bites the dust in Kenya
BY CORRESPONDENT/www.capitalfm.co.ke/ Jun 11
KISII, Kenya, Jun 11- Ford People has sprung a surprise in South Mugirango after Manson Nyamweya garnered 14,099 votes against 8,885 polled by his closets rival, former Member of Parliament Omingo Magara.
Ibrahim Ochoi of the Orange Democratic Party came third with 7,638 votes while Kenya African National Union candidate Joshua Ondora got 1,231 votes.
The MP-elect has pledge to work towards uniting the people of South Mugirango.
In his acceptance speech, Mr Nyamweya said he was ready to bring development to the region.
He said he would use public resources to improve the livelihood of the locals amid song and dance as soon as he was declared the winner.
The results were announced at 6am on Friday by returning officer Boniventure Obongoya after a night of intrigues that saw ODM concede early defeat even before the final tally.
The party led by Lands Minister James Orengo, Paul Otuoma of the Fisheries Ministry and nominated MP Rachael Shebesh convened an impromptu press conference at 2am outside tallying hall to announce their stand.
Mr Orengo said that local politics dominated the by-elections but noted that ODM still remained the most popular party in the region.
He said that the party was not disappointed with the results given the trend of vote counting as it prepares for 2012 general election.
Mr Orengo said that even though there were massive voter malpractices, they would not challenge the results in court.
Mr Ochoi said he would still popularise the party in the constituency.
ANGOLA :
SOUTH AFRICA:
World Cup in South Africa Bypassed ‘Plan B’: Pravin Gordhan
June 11, 2010/Commentary by Pravin Gordhan/Bloomberg
June 11 (Bloomberg) — The 2010 World Cup soccer tournament that kicks off today represents much more than just a sporting spectacular for South Africa.
The multibillion-rand investment in the upgrading and building stadiums and in transport infrastructure underpinned economic activity during the six years of intense preparation, but most especially during the past two years when our economy slowed and even went into a brief recession.
Being chosen as the first African country to host the World Cup since the inception of this international event in 1930 meant we had high expectations to fulfill. Critics and pessimists cast doubt on our ability to pull it off, suggesting a “Plan B” should be put in place.
Some said that construction deadlines wouldn’t be met — they were wrong.
There were concerns that costs would skyrocket — in fact, we contained them.
To suggestions that crime would deter fans from coming — the tourists who are pouring in to the country show otherwise.
The detailed planning and meticulous management that went into this project have put to rest doubts that our country couldn’t handle an event of this magnitude.
Final Whistle
South Africa has always viewed the hosting of the World Cup not as an end in itself, but as a catalyst for development whose benefits will be felt long after the referee blows the whistle marking the end of the last game. That’s why the national government has spent almost 30 billion rand ($3.9 billion) on transportation (roads, airports, and ports of entry), telecommunications infrastructure, as well as stadiums (building six new ones and upgrading another four).
The 11.7 billion rand investment in 10 world-class stadiums alone created 66,000 new construction jobs, generating 7.4 billion rand in wages, with 2.2 billion rand going to low-income households and therefore contributing to reduction in poverty.
Though stadiums have been the most visible part of the World Cup-related expenditure, the lion’s share of the expenditure has gone into transportation and telecommunications infrastructure, and the renovations of our ports of entry for visitors. The government spent 13 billion rand to upgrade train stations near stadiums, improve roads and undertake the massive facelift of our country’s airports. Ports of entry received 3.5 billion rand for renovations, including improved information technology infrastructure equipment at border crossings.
Some 1.5 billion rand has been invested in broadcast technology, much of which was used for broadband Internet access. This technology will remain an asset to this country for years to come.
Fighting Crime
The fight against crime has also received a fortifying boost, with 1.3 billion rand being spent on safety and security. This has resulted in 40,000 new, well-trained police officers on our country’s streets. These recruits will remain on the force, leading to a permanently safer South Africa.
South Africa has comfortably financed all of this investment out of current expenditure because of our fiscal prudence, as well as the high levels of tax compliance over the years.
As high-profile an event as this is, at no stage was the national government budget process compromised. All World Cup funding proposals went through the same budgeting and prioritization processes as those that weren’t part of the tournament. This process also threw out those projects that had limited legacy value. The National Treasury’s World Cup Unit oversaw all building expenditures, ensuring that any cost escalations were justified and controlled.
Credit-Crunch Fallout
We had initially estimated that the World Cup would add 0.5 percent to economic growth this year, expecting around 400,000 fans. The financial difficulties in much of the world, however, left many would-be travelers out of pocket. Nonetheless, FIFA expects about 350,000 soccer fans to visit South Africa. The National Treasury estimates that tourists will contribute about 15 billion rand to our economy through spending on hotels, meals, transport and so on. This money will circulate throughout the economy, spreading benefits much wider than just the hospitality and transport industries.
The additions we see to economic growth will also not be limited to this year alone, with spin-off benefits well into the future.
What is certain is that the World Cup will be the best possible advertisement for South Africa and the region, showcasing the endless variety and opportunities on offer.
The 2006 World Cup in Germany was watched by almost 6 billion people, and we expect to at least match, and probably exceed, that figure. Many people may never have considered South Africa as a travel destination. A month-long look at how beautiful and varied our country is could change this. These benefits are likely to spill over to our neighbors, as visitors seize the opportunity to see more of Africa.
Test Passed
The World Cup has been an important test for our country. All preparations for the tournament have been completed on schedule, proving our ability to pull off such an event. We have changed perceptions about South Africa, and indeed the African continent. We look forward to more trade, more investment and more tourists. The World Cup will be an immense celebration, but it will also be a milestone to a more developed, cohesive South Africa.
(Pravin Gordhan is South Africa’s minister of finance. The view expressed are his own.)
–Editors: James Greiff, Antony Sguazzin
South Africa warns visitors against crime
Xinhua /juin 11, 2010
JOHANNESBURG,
After a spate of robberies targeting foreign journalists and players before the opener kicks off, South Africa on Thursday urged World Cup visitors to exercise caution against crime.
“We appeal to citizens and visitors to also exercise care of their personal safety and those around them,” government spokesman Themba Maseko said in a statement.
“Of the country’s 190,000 police officers, only 40,000 have been allocated to World Cup operations. These officers will be supported by their counterparts from the 32 participating teams,” he said.
According to media reports, four Chinese journalists were mugged in the centre of Johannesburg on Wednesday, the same day armed men robbed three foreign journalists in the country’s northwest. Three members of the Greek team said money was stolen from their hotel rooms.
“Policing of the country and ensuring the safety and security of all within it remains a 24-hour operation,” said Themba Maseko, a government spokesman. “Those in distress are requested to report to relevant authorities and the appropriate assistance will be rendered.”
AFRICA / AU :
Opening day for South Africa 2010
A monthlong soccer extravaganza will send fans streaming into taverns around the globe, prompt plenty of good-natured and not-so-friendly arguments, and bring the annoying sound of South Africa’s vuvuzela to millions of homes.
By Seattle Times news services/June 11, 2010
JOHANNESBURG — It all starts Friday when World Cup host South Africa plays Mexico.
A monthlong soccer extravaganza will send fans streaming into taverns around the globe, prompt plenty of good-natured and not-so-friendly arguments, and bring the annoying sound of South Africa’s vuvuzela to millions of homes.
Yes, it’s the 2010 World Cup, futbol’s grandest stage and the place for the game’s greatest stars to earn a place in history.
Argentina’s Lionel Messi, England’s Wayne Rooney, Spain’s Andres Iniesta and Xavi Hernandez, and Brazil’s Kaka and Robinho all will be trying to kick their way toward the ultimate goal: the FIFA World Cup Trophy.
But soccer at the highest level is more than a star search. It’s the ultimate team game and requires a well-functioning 11-man unit, savvy coaching and tactics, and certainly a bit of luck to bring a successful result.
Italy found those qualities four years ago as it played a disciplined defensive style that led to the World Cup title after victories over host Germany in the semifinals and France in the championship match.
The Italian team has aged since 2006 and still relies on many of the key players from that squad, including 36-year-old defender Fabio Cannavaro.
But it belongs to an elite group of countries with something former U.S. coach Bob Gansler calls “soccer heritage, countries beyond tradition.”
Gansler puts Italy, Germany, Brazil and Argentina in that exclusive category.
Spain and England are just below that top group, in Gansler’s estimation. But Spain is coming off a 2008 European championship and hopes to erase the memories of previous World Cup failures with its golden generation of stars.
Note
• FIFA president Sepp Blatter, 74, said he will seek re-election to another four-year term, drawing applause when he told soccer officials from 207 nations he’d run again.
UN /ONU :
10 mln fear worst as Sahel faces new food crisis
By Boureima Hama (AFP)/110610
NIAMEY — Only five years after a severe food shortage north-central Africa is again fearing the worst before the September harvest, with 10 million people threatened in this arid region known as the Sahel.
In Niger alone, the country hardest hit, more than seven million residents — nearly half the population — are in need of food, and both Niger and neighboring Chad have declared states of emergency.
Niger’s south-central Maradi region is a testament to things again gone wrong: villages and schools lie deserted after hundreds of people fled drought and hunger, some moving to the cities while others headed south to Nigeria. Animals are dying from lack of fodder and water.
“This is the worst crisis in 30 years”, worse than 1984 or 2005, Alio Mahamane, a member of Niger’s farmers organisation, told AFP.
Burkina Faso, Cameroon, Chad and Mali are similarly affected, after last year’s insufficient or irregular rains left poor crops and a desperate shortage of cattle feed in a region already suffering endemic malnutrition.
The situation has triggered appeals for international aid for this belt spanning the southern flank of the Sahara Desert.
While the main planting season for regional staples — millet, sorghum and notably maize — starts in June, the coming months up to harvest time will be the most difficult, as people try to cope with already sparse food supplies for themselves and their animals.
In hard-hit Niger, the situation continues to worsen. EU Commissioner Kristalina Georgieva warned last week that more than three of the country’s seven million hungry suffered from “severe” food insecurity, as the EU allocated an extra 24 million euros (29 million dollars) for the Sahel.
Georgieva, who is in charge of the bloc’s humanitarian aid, said Niger’s hungry include 139,000 children with acute signs of malnutrition.
Overall, the UN Children’s Fund (UNICEF) estimates that 300,000 children under five die in the Sahel each year directly or indirectly from malnutrition.
The EU’s extra 24 million will go towards diagnosing and treating malnutrition along with other food and health projects, including mobile health units for pastoral communities. It brings total EU aid to the Sahel to 44 million euros this year, up from 33 million in 2009.
Regional food prices meanwhile have soared amid speculation linked to the shortage of staple goods.
After accusations of not anticipating the food crisis five years ago, UN agencies and non-governmental organisations have reacted more quickly this time around.
International aid for Niger started flowing in last month, with 21,000 tonnes of free cereals distributed to 1.5 million people with government assistance.
“Without this aid, I would no doubt already be buried,” said a farmer in Tahoua in western Niger, as he loaded his cart with sacks of cereal distributed by aid workers.
But the World Food Programme’s (WFP) deputy director for Niger, Gianluca Ferrera, warned of a shortfall of up to 40 million dollars (33 million euros) for Niger alone to make ends meet until September.
In Chad, where up to two million people need assistance, the United Nations is working to avert “disaster” and the WFP has launched an emergency operation for more than 700,000 people.
“We estimate our needs at 100,000 tonnes of cereals,” said Chadian Agriculture Minister Albert Pahimi Padacke. “So far, we have received 55,000.”
At Mao, capital of Chad’s worst-hit western Kanem region, Mayor Mallah Adji said the situation was becoming “more and more critical” as no rain had been reported yet.
Sixty kilometres (40 miles) from Mao, at Nokou, people make do with whatever dates they can find near dry river beds to survive, said a member of the Action contre la faim (Action against Hunger) NGO.
Younger people also leave for oil-rich Libya hoping for a better life.
In Cameroon a health ministry official called the food situation extremely critical in the north, where some 339,000 people were being assisted by the United Nations.
And in northern Mali, more than 250,000 people are receiving emergency aid from the international community and the central government after scarce rainfall over the last two years.
The food situation has been aggravated by a pastoral crisis that has compelled increased nomads’ migration southward and increased conflicts between them and farmers, a statement by the Economic Community of West African States (ECOWAS) said in May before a special meeting on the food crisis.
Local representatives meanwhile cite global warming as a cause for the encroaching desert.
But in neighbouring Burkina Faso where authorities have started selling cereals at lower prices the NGO Afrique Verte’s (Green Africa) Philippe Ki said the crisis was “contained” even though “pockets of drought” still existed.
UN lauds commitment of Central African nations to halt use of child soldiers
www.un.org/11 June 2010
10 June 2010 – Six countries in Central Africa have committed to end the recruitment of child soldiers, a move welcomed by the United Nations Children’s Fund (UNICEF) as a step forward in giving all young people in the region a better life.
In the N’Djamena Declaration adopted yesterday, the six – Cameroon, Chad, the Central African Republic (CAR), Niger, Nigeria and Sudan – outlined their commitments to child protection in line with global standards, including those in the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict.
“This is a new beginning in Africa, a firm step towards giving all children in the region the dignity of a childhood they’ve so often been deprived of by decades of conflict. It is now time to translate these powerful words into concrete actions,” said Marzio Babille, UNICEF Representative in Chad.
The declaration also seeks to enhance opportunities for children – including in education and employment – once they have left armed groups. In addition, it establishes a committee to monitor implementation of the outcome.
It marks the culmination of a three-day event, organized in the Chadian capital by the Government and UNICEF, that brought together government representatives, UN officials, child rights experts and former child soldiers to help find ways to end this terrible scourge.
Chad and Sudan have signed and ratified the Optional Protocol on the Involvement of Children in Armed Conflict, while Cameroon and Nigeria have signed the pact, but have not yet ratified it. Niger and the CAR have neither signed nor ratified.
Last month, the UN launched a major campaign for the universal adoption of treaty protocols that outlaw the sale of children, child prostitution and pornography, and protect youngsters in armed conflict, with Secretary-General Ban Ki-moon calling for full ratification by 2012.
USA :
CANADA :
AUSTRALIA :
Australia urges fans to stay safe
supersport.com/11/06/2010
Australia on Friday launched an unprecedented safety campaign for their citizens visiting South Africa for the 2010 World Cup, warning of a “high level of violent crime”.
Foreign Minister Stephen Smith said the World Cup would be Australia’s largest-ever consular exercise, with mobile embassies to be set up at all Socceroos games and updates via social networking sites Facebook and Twitter.
“We are expecting over 10,000 Australians to visit South Africa during the tournament, with over 43,000 tickets sold to Australians,” Smith said on Friday.
A special foreign affairs travel bulletin for the World Cup urged Australians to exercise a high level of caution in South Africa.
“Muggings, rape, armed robbery and other forms of theft are common,” it warned. “Murders and carjackings involving foreign tourists have also been reported. Travellers have been robbed and assaulted after having their food or drinks spiked.” Smith urged Australians to register their t ravel plans with the department, subscribe to free email updates on security and take out comprehensive travel insurance.
Mobile embassies will be established at all Australia games and a 24-hour hotline was in operation, with updates also available at AUSConsular2010 on Twitter or the Australia High Commission South Africa Facebook site.
South Africa has hired tens of thousands of extra police for the tournament in a bid to counter its reputation as one of the world’s most crime-ridden countries.
But they have been unable to prevent a series of robberies against World Cup visitors, with journalists from China, Portugal and Spain all falling victim to robberies.
The Greece and Colombia teams have also been hit by theft, with cash stolen from their hotel bases in the lead-up to the Cup, which kicks off Friday.
EUROPE :
CHINA :
4 Chinese reporters robbed in South Africa
Fri, Jun 11, 2010/China Daily/Asia News Network
Four reporters from China were robbed of their cameras as well as cash on a street in Johannesburg in South Africa on June 9, Beijing News reported.
The four, sent by an Anhui media group for World Cup coverage, were on their way to do interviews in Johannesburg when they encountered the robbers.
As they pulled up in their car along a street, the robbers came up and intimidated them into opening the window and door.
They took money and a camera worth 10,000 yuan (S$2069) before fleeing.
None of the reporters was hurt, according to the report.
The incident is among a number of worrying concerns about the South African government’s ability of curbing crimes as many fans have already decided to quit their tour in the country during the World Cup.
-China Daily/Asia News Network
INDIA :
Zain acquisition poses African challenge for Mittal
By Paul Betts and Andrew Hill /www.ft.com/June 11 2010
For Bharti Airtel’s controlling shareholder, Indian billionaire Sunil Mittal, the hard work has just begun.
Mr Mittal, chairman of India’s largest mobile operator, this week closed the company’s $10.7bn acquisition of most of the African networks of Zain of Kuwait.
The deal has gone relatively smoothly given the terrain – the company had to win the approval of regulators across 15 markets. But an early sign of the challenges awaiting him in turning round these underperforming networks came when Standard & Poor’s immediately downgraded Bharti’s credit rating to “BB+” from “BBB-” after the closure of the largely debt-funded deal.
The rating agency said Bharti’s leverage and cash flow ratios would “deteriorate significantly” following the deal and it would be exposed to Africa’s high political risk.
On the other hand, the agency said the deal enlarged Bharti’s subscriber base by more than 30 per cent to 170m users and revenue by nearly 50 per cent to $12.5bn.
S&P warned if Bharti’s debt following the deal consistently exceeds three times earnings before interest, taxation, depreciation and amortisation, the rating could be downgraded further. But if it falls below two times ebitda, it could be upgraded. Bharti’s debt was 1.4 times ebitda at the end of last year.
Brokerages have similar concerns. HSBC analyst Rajiv Sharma said in a research note that earnings accretion from the deal could be nearly four years off and even then will not be significant.
Mr Mittal rose from small beginnings to conquer India’s telecoms industry. Replicating this in Africa could prove an even greater challenge.
Franco-German dogfight
The World Cup kicks off today in South Africa and German football fans believe their team stands a far better chance of winning the trophy than their French neighbours. French supporters no doubt reluctantly agree given the recent dismal performance of their national squad. That said, this rivalry is hardly helping to ease the growing tensions between the two countries, further undermining the so-called historic Franco-German relationship.
The two countries have been openly at odds on how to rescue the euro. As for corporate relations, there seems to be fiercer competition between German and French companies than cosy partnerships.
Admittedly, Renault has recently forged an alliance with Daimler to develop small cars. But in most cases, industrial and business partnerships have ended in tears. The proposal to merge the Paris and Frankfurt bourses collapsed with the French combining with the New York Stock Exchange instead.
Siemens is still irritated by the French government’s decision to prevent it taking over large bits of Alstom. Paris is equally peeved by the German move to co-operate more closely with Russia in the nuclear sphere than with France. Now the two countries are fighting for dominance of the African skies.
Lufthansa and its various affiliates (Brussels Airlines and Swiss) are stepping up the pressure on Air France-KLM by directly challenging the Franco-Dutch airline in its most profitable market. For the African continent has not only proved to be a safe haven for the airline industry during the current crisis, but has also become a big moneymaker for Air France-KLM. The Franco-Dutch carrier commands a 30 per cent share of the passenger market between Europe and Africa. The substantial profits it makes on these African routes have in part helped offset the losses in its American, Asian and European operations.
But the competition is heating up. Not only from US and Middle East airlines increasingly targeting the promising African air travel market, but mainly from its biggest continental European rival, Lufthansa. The German flag-carrier has been steadily expanding its presence in Africa. It is also expected to enlist soon into its Star Alliance group Ethiopian Airlines with the idea of turning Addis Ababa into a new African hub.
With African air travel expected to grow by about 3.7 per cent this year rising to 5 per cent next year and 5.5 per cent in 2012, the Franco-German dogfight over African skies is bound to intensify. And unlike the other skirmishes between the two countries that, among other things, risk undermining the euro and the eurozone economy, this particular competition is likely to have beneficial results for consumers. It is bound to help reduce the current inflated cost of air travel to Africa. After all, this is exactly what happened when Virgin decided to break the old British Airways and South African Airways duopoly on the exorbitantly expensive London to Cape Town and Johannesburg routes.
BRASIL:
EN BREF, CE 11 juin 2010 … AGNEWS / OMAR, BXL,11/06/2010
