[embedyt] https://www.youtube.com/watch?v=sdHKw0Ve&#8211;8[/embedyt]





The first Starbucks in sub-Saharan Africa opened in 2016 through a partnership between South Africa&#8217;s Taste Holdings and Starbucks. In November 2018, after opening 12 stores, Taste paused the rollout of new Starbucks locations. It said Starbucks wasn&#8217;t making enough money to continue opening new locations. But Taste has a plan to get Starbucks back on track. In August 2019, the company started opening stores again with its 13th location.

Why Starbucks Is Struggling In South Africa

GABORONE, Oct 22 (Reuters) &#8211; Botswana polls opened on Wednesday for a general election that is expected to provide the first genuine challenge to the ruling Botswana Democratic Party (BDP) in its five decades of dominance over southern Africa&#8217;s wealthiest and most stable nation.



Whichever party wins will have to move swiftly to transform the economy, which since independence from Britain in 1966 has grown at 8% a year to become one of Africa&#8217;s most successful, but now risks coming unstuck because of over-reliance on a single commodity &#8211; diamonds.



Campaigning on promises to drive that economic transformation, Duma Boko, leader of the Umbrella for Democratic Change, is hoping to unseat the BDP of President Mokgweetsi Masisi. He is backed by former president Ian Khama, who handed over to Masisi last year but has since fallen into a bitter power struggle with him.



&#8220;We remain resolute and confident that we are going to win this election,&#8221; Boko told a news conference on Monday night before warning of possible fraud.



&#8220;I can only accept the result if the election is free and credible,&#8221; he added, raising the spectre that Botswana, which has only known one-sided elections, could witness its first rancorous dispute over a tight result.



Of Botswana&#8217;s population of 2.2 million people, 924,000 registered voters will elect 57 national assembly and 490 local government representatives.



The winning party&#8217;s candidate then becomes president.



Polls open at 6:30 a.m. (0430 GMT) and close at 7 p.m.



Masisi is standing on his record on tackling corruption, such as making a declaration of assets obligatory for public sector officials, and slashing bureaucracy for small businesses.



Khama, the son of founding president Seretse Khama, quarrelled with Masisi over cabinet posts and the new president&#8217;s controversial scrapping of an elephant hunting ban in May, which Khama had enforced four years earlier. Elephants, however, have not been an issue during the campaign.



The main concerns for the Batswana are unemployment hovering at around 20% and stark inequalities despite equitable state spending on health and education. To tackle either, the winner will need to do more to diversify the economy.



Mbakisi Gopolang, 25, waiting in line to cast his vote at a primary school in the capital Gaborone, said he was disappointed by the last decade under the governing BDP.



&#8220;The last ten years have been regressive, so I don&#8217;t want continuation of that. I am voting for a party that will drive economic growth, empower citizens and get rid of corruption and bring about transparency.&#8221;



Diamond mining has fallen to a fifth of GDP in 2018, compared with half in the 1990s, but it still makes up three quarters of foreign exchange earnings, even as banking and tourism grab a greater share of output. 



By Brian Benza 



(Editing by Tim Cocks, Editing by Ed Osmond &amp; Simon Cameron-Moore)

Botswana polls open in first real challenge to ruling party

JOHANNESBURG, Oct 22 (Reuters) &#8211; Crisis-hit South African power company Eskom was handed an additional 59 billion rand ($4 billion) lifeline by parliament on Tuesday, prompting criticism from opposition parties who described it as a &#8220;blank cheque&#8221;.



The special bill passed by parliament to grant the funding was first proposed by Finance Minister Tito Mboweni in July as Eskom struggled to service its ballooning 450 billion rand debt pile and keep the lights on throughout 2019 as its creaking fleet of coal-fired plants buckled.



Eskom unleashed another bout of nationwide blackouts last week following repeated power cuts in February and March, which dragged the economy into contraction.



Mboweni said in July that the bailout Eskom should adhere to strict conditions to receive the bailout, including assurance that it would be used only to service debt and not for operational costs.



The multi-party Standing Committee on Appropriation, responsible for oversight of the bill, failed to agree on the conditions and early in October opted leave the Finance Minister&#8217;s draft bill unchanged.



&#8220;The bill as it stands is a blank cheque that will blow up the deficit,&#8221; the main opposition Democratic Alliance said on Tuesday, echoing objections of other parties.



Speaking at the parliamentary debate on Tuesday Mboweni did not directly address the matter of conditions but hinted that Eskom&#8217;s management would come under closer scrutiny.



&#8220;One of the key issue we need to solve is to appoint the right people to run Eskom. Appoint the right board of directors and a competent management team,&#8221; he said.



&#8220;Then we must be in a position to hold that board of directors and management team accountable. The problem at Eskom is not just financial.&#8221;



Eskom has been without a permanent chief executive since Phakamani Hadebe resigned in May, citing unbearable pressure.



Hadebe was the 10th CEO in a decade to quit the state company in what has proved something of a revolving door of top executives and board members as treasury and presidential inquiries into graft and mismanagement deepened.



The special appropriation bill will go to parliament&#8217;s second house for approval before being sent to President Cyril Ramaphosa for his signature and enactment.



(Reporting by Mfuneko Toyana and Wendell Roelf Editing by David Goodman)

What you need to know about South Africa approving $4 billion bailout for debt-laden power utility Eskom

Smart Mobility Through Integrated Transport System: The future of Gauteng’s transport system

#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019

Content supplied by Siemens 



Although
the notion of shared value, CSI and businesses giving back to the communities
in which they operate is nothing new, it is becoming more imperative for
businesses to integrate the well-being of society into their core objectives.
In many instances, contributing to society is a secondary objective for
businesses and yet without a healthy flourishing society, we cannot be
successful in business.



Currently
South Africa faces many challenges and whilst government has outlined key
priorities in the 2030 National Development Plan, businesses need to both align
and contribute to addressing these challenges. Some of the main issues we face
include unemployment, employment equity and lack of transformation, and
environmental sustainability and these areas should be translated into what we
do as businesses. We should be aligning ourselves to the agenda of government
and we should essentially start reporting on what, we as businesses, are doing
to uplift South Africa.



For
the past five years Siemens has taken this approach and translated it into a
Business to Society approach whereby we take the development of the country and
embed it into our business model. We have made an effort to report on how we
have added value to society and how we contribute to the country, by showcasing
results.



In
doing so we have seen great results in creating more than 1500 jobs, growing
our female work force to be 28,6% of the company, maintaining a B-BBEE level 2
status, and enabling our customers to lower their CO2 emission. However, over
the past few years we have taken key learnings in terms of contributing to society.



<ol class="wp-block-list"><li>If you stimulate the right growth in
society – your business grows:</li></ol>



When businesses aim to put
society at the centre of what they do, it is imperative to firstly understand
societal needs and secondly be able to link this back to your business offering.
This is the difference between development and pure philanthropy. For example,
any business should be able to manage skills development, however it will need
to consider which skills lead to employment and fills the skills gap in South
Africa.



<ul class="wp-block-list"><li>For real impact you need to look
beyond your own business:</li></ul>



It is true that business
should continue to upskill their own employees and manage their own
sustainability in terms of both the environment as well as the economic health
of the company. Having said that, for a business to have a wider impact on
society, businesses also need to enable their suppliers through enterprise and
supplier training and development, as well as provide their customers with
solutions to impact society. If we are not enabling other businesses through
the work we do as companies, then we are missing opportunities for these
businesses to grow and in turn contribute to the growth of the country.



<ul class="wp-block-list"><li>Measure, report and evaluate:</li></ul>



It is critical to not only set
goals against your efforts to uplift society, but also to measure the outcome
and report on it to track year-on-year improvements and evaluate your
programmes to ensure they remain both relevant and effective. This should be
done on a yearly basis in alignment with the social, economic and political
climate of the country with a consistent focus on the needs of the community.



As a global business, we take
key learnings from our other operations, however everything we do is localised
for impact. 



Businesses can no longer afford not
to contribute to society if we don’t uplift the communities in which we
operate, our future in South Africa will also be affected. By building the
country in line with both its potential and challenges, we are building a
destination attractive for investment, growth and development.

Op-Ed: The time is now for business to uplift society

JOHANNESBURG, Oct 16 (Reuters) &#8211; South Africa&#8217;s rand tumbled more than 1% on Wednesday to its softest level in a week after state power utility Eskom said it would implement nationwide blackouts for the first time in more than six months due to capacity shortages.



The rand was 1% weaker at 15.0550 per dollar, its lowest since Oct. 10, as of 0615 GMT.



Eskom said it will cut up to 2,000 megawatts of power from the national grid on Wednesday due to a shortage of generating capacity, starting at 0700 GMT (9 am local time) and up until 2100 GMT.



The comments pushed the rand past the crucial 15.00 mark, with deeper losses likely as the session wears on, traders said.



Struggling state power firm Eskom implemented one of the worst power cuts in several years in February, hurting small businesses without backup power generators and industrial firms that consume large volumes of power.



&#8220;There was an initial knee-jerk reaction to the announcement. And the longer it (blackouts) goes on, the worse it will be for the rand,&#8221; said currency dealer at TreasuryOne Andre Botha.



&#8220;Any improvement (in sentiment) will depend on clarity we get from now on about what is happening. But there&#8217;s definitely negative risk across the board,&#8221; Botha said.



A debilitating round of power cuts in February and March pushed first-quarter economic growth into contraction and raised the likelihood of the country losing its last investment-grade rating.



Bonds also weakened, with the yield on the benchmark government paper due in 2026 up 3.5 basis points to 8.27%. 



(Reporting by Mfuneko Toyana, Editing by Sherry Jacob-Phillips)

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

<figure>
 <img decoding="async" src="https://images.theconversation.com/files/295966/original/file-20191008-128705-1src4ws.jpg?ixlib=rb-1.1.0&#038;rect=9%2C138%2C3109%2C2546&#038;q=45&#038;auto=format&#038;w=754&#038;fit=clip" />
 <figcaption>
 Zimbabwe’s food insecurity is more complex than the headline figures suggest.
 Shutterstock
 </figcaption>
 </figure>

By <a href="https://theconversation.com/profiles/ian-scoones-117123">Ian Scoones</a>, <a href="http://theconversation.com/institutions/university-of-sussex-1218">University of Sussex</a>

Since Zimbabwe’s land reform of 2000 – when around 8 million hectares of formerly large-scale commercial farmland was distributed to about 175,000 households – debates about the <a href="https://zimbabweland.wordpress.com/2013/09/23/zimbabwes-agricultural-sector-goes-from-bread-basket-to-basket-case-or-is-it-again-a-bit-more-complicated/">consequences for food security</a> have raged.

A standard narrative has been that Zimbabwe has turned from “food basket” to “basket case”. This year, following the devastating <a href="https://www.climate.gov/enso">El Niño</a> drought combined with <a href="https://www.aljazeera.com/news/2019/03/cyclone-idai-destroys-zimbabwe-farms-deepening-food-crisis-190329142611666.html">Cyclone Idai</a>, some <a href="http://fnc.org.zw/wp-content/uploads/2019/07/ZimVAC-2019-Rural-Livelihoods-Assessment-report.pdf">5.5 million people</a> are estimated to be at risk of hunger, with international agencies issuing <a href="https://reliefweb.int/sites/reliefweb.int/files/resources/ROSEA_Zimbabwe_HumanitarianAppealRevision_06082019.pdf">crisis and emergency alerts</a>.

It is unquestionable that this season was disastrous – only 776,635 tonnes of maize was produced, more than a third below the five-year average. Nevertheless, the story of food insecurity is more complex than the headline figures suggest.

It’s true that Zimbabwe’s food economy has been transformed over the past 19 years. Aggregate <a href="https://www.indexmundi.com/agriculture/?country=zw&amp;commodity=corn&amp;graph=production">production</a> of maize has certainly declined, and <a href="https://www.indexmundi.com/agriculture/?country=zw&amp;commodity=corn&amp;graph=imports">imports</a> have become more frequent. 

But Zimbabwe suffered food shortages, often precipiated by El Niño events, before land reform. These too led to the need for more imports. And surpluses have also been produced since land reform. For example, in 2017, there was a <a href="https://theconversation.com/land-reform-is-a-zimbabwe-success-story-it-will-be-the-basis-for-economic-recovery-under-mnangagwa-88205">bumper crop</a>. Some of it was stored and has been used to keep people going. 

Getting behind the headline figures and understanding an increasingly complex food economy is essential. <a href="https://zimbabweland.wordpress.com/">Our on-going research</a> shows just how complicated the picture is.

<h2>Farming and food</h2>

Since land reform, we have been <a href="https://zimbabweland.wordpress.com/">tracking livelihood change</a> in resettlement areas in a number of sites across the country. Our research is exploring how people have fared since getting land, asking who is doing well and not so well, and why. Some of our key findings include:

<ul>
<li>Crop production is higher in the land reform areas compared to the communal lands. Larger land areas allows new settlers to produce, invest and accumulate.</li>
<li>There are substantial hidden flows of food between land reform areas and poor rural and urban areas, as successful resettlement farmers provide food for relatives, or sell food informally.</li>
<li>There is a significant growth of small-scale, <a href="https://theconversation.com/irrigating-africa-can-small-scale-farmers-lead-the-way-113692">farmer-led irrigation</a> in resettlement areas. This is often not recognised, as production occurs on disparate small plots, frequently farmed by younger people without independent homes.</li>
<li>Trade in food across regions and borders, facilitated by networks of traders, often women, is significant, but unrecorded.</li>
<li>Market networks following land reform are complex and informal, linking producers to traders and <a href="https://zimbabweland.wordpress.com/2016/05/01/small-towns-in-zimbabwe-are-booming-thanks-to-land-reform/">small urban centres</a> in new ways. Outside formal channels, the volume and flows of food through the system is difficult to trace.</li>
</ul>

Simple aggregate analyses of food deficits, estimating the numbers of people at risk of food insecurity, do not capture these new dynamics. National surveys are important, but <a href="https://zimbabweland.wordpress.com/2013/09/16/food-crisis-in-zimbabwe-2-2-million-a-risk-but-where-do-the-figures-come-from-and-what-do-they-mean/">may be misleading</a>, and local studies, such as ours, often do not match the national, aggregate picture. 

So, what is going on?

<h2>Access to food: complex relationships</h2>

Food insecurity is not just about production, it is also about access. This is affected by the value of assets when sold, the ease with which things can be bought and sold in markets, the value of cash as influenced by currency fluctuations and inflation, local and cross-border trade opportunities, and all the social, institutional and cultural dimensions that go into exchange. 

When these dimensions change, so does food security. And this is particularly true for certain groups.

Take the case of Zvishavane district, in Midlands province of Zimbabwe. In the communal area of Mazvihwa, there was effectively no production this season. Some got a little if they had access to wetlands, and a few had stores. But compared to 30 years ago, production is focused on maize, which stores poorly, rather than small grains that can be kept for years. 

How are people surviving? Some seek piecework in the nearby resettlement areas; others have taken up seasonal gold panning; others migrate to town, or further afield; others get help from relatives through remittances; while others are in receipt of cash transfers or food hand-outs from NGOs. 

With small amounts of cash, people must buy food. It’s available in shops, but expensive. So a vibrant trade has emerged, with exchanges of maize grain for sugar or other products. And it’s especially people from the land reform areas who are selling their surpluses. Many have relatives who got land, and some travel there to get food, but there is also a network of women traders who come and sell in the communal areas.

Aggregate surveys almost always <a href="https://zimbabweland.wordpress.com/2016/09/19/food-security-in-zimbabwe-why-a-more-sophisticated-response-is-needed/">miss this complexity</a>. There are sampling biases, as the importance of the resettlements as sites of production and exchange are missed. 

There are data problems too, as it is difficult to pick up informal exchanges, and income-earning activities on the margins. The result is that each year there are big food insecurity figures proclaimed, fund-raising campaigns launched, but meanwhile people get on with surviving. 

This is not to say that there is not a problem this year. Far from it. But it may be a different one to that diagnosed.

<h2>Economic collapse is causing a humanitarian crisis</h2>

As the <a href="https://www.businesslive.co.za/bd/world/africa/2019-09-26-zimbabwes-economy-in-steep-contraction-as-inflation-hits-300/">Zimbabwean economy</a> continues to deteriorate, with rapidly-rising inflation, parallel currency rates, and declining service provision, whether electricity, fuel or water, the challenges of market exchange and trade become more acute. Barter trade is more common, as prices fluctuate wildly and the value of physical and electronic money diverge. With poor mobile phone networks due to electricity outages, electronic exchange becomes more difficult too.

Collapsing infrastructure has an effect on production also. Fuel price hikes make transport prohibitive and irrigation pumps expensive to run. Desperate measures by government often make matters worse. The <a href="https://www.herald.co.zw/private-grain-imports-now-legal-govt/">now-rescinded</a> edict that all grain must be supplied to the state grain marketing board undermined vital informal trade. Meanwhile, the notoriously corrupt <a href="https://www.theindependent.co.zw/2019/07/26/missing-us3bn-an-indictment-on-mnangagwas-government/">“command agriculture”</a> subsidy scheme directs support to some, while excluding others from the provision of favourable loans for government-supplied seed, fertiliser, fuel or equipment. 

Economic and infrastructural collapse is threatening food security in Zimbabwe. Even if there is good rainfall this season, the crisis will persist. Farmers will plant, produce and market less this year. While food imports are needed for targeted areas and population groups for sure, this may not be the biggest challenge. 

Stabilising Zimbabwe’s economy is the top priority, as economic chaos is causing a humanitarian crisis.<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/124791/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

<a href="https://theconversation.com/profiles/ian-scoones-117123">Ian Scoones</a>, Professorial Fellow, Institute of Development Studies, <a href="http://theconversation.com/institutions/university-of-sussex-1218">University of Sussex</a>

This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/economic-chaos-is-causing-a-food-security-and-humanitarian-crisis-in-zimbabwe-124791">original article</a>.

What is causing Zimbabwe’s food security and humanitarian crisis ?

LONDON, Oct 14 (Reuters) &#8211; The quality of education and training provided by African countries has worsened since 2014, leaving many of the continent&#8217;s growing population of young people ill-prepared to enter the job market, an influential report said on Tuesday.



The Ibrahim Index of African Governance (IIAG), the most comprehensive survey of its kind on the continent, found that on average enrolment and access to education was particularly low in the tertiary sector.



&#8220;This has resulted in the burgeoning youth population being faced with increasing struggles when entering the job market,&#8221; researchers at the Mo Ibrahim Foundation wrote in an interim update ahead of the full biennial report due to be published next year.



&#8220;The current pace of progress is going to fall behind demographic needs as the majority age group in Africa now is under-15.&#8221;



The report rates 54 African nations against criteria such as security, human rights, economic stability, just laws, free elections, corruption, infrastructure, poverty, health and education.



Demographic developments are a hot topic in Africa, which, according to United Nations data, is expected to account for more than half of the world’s population growth between 2015 and 2050. The continent&#8217;s population is projected to double by 2050, and could double again by 2100, the U.N. has said.



The IIAG interim report said that while African governments have made some progress in improving infrastructure since 2014, on average they were lagging well behind their ambitions to revamp their economies.



&#8220;African governments have on average not managed to translate GDP growth into economic opportunities for citizens,&#8221; it said. &#8220;Progress since 2014 runs behind the rapidly growing working age population.&#8221;



The report noted more progress in health and nutrition, saying countries were making strong strides in combating communicable diseases and child and maternal mortality rates.



However, providing affordable quality healthcare for all citizens was still far off and the rising spread of undernourishment was a major area of concern, it added.



Researchers also criticised the widespread lack of key data across the continent, which impedes the ability of policymakers to monitor progress and adapt accordingly, saying vital population statistics had deteriorated significantly in recent years.



The report said just eight African countries had a birth registration system that covered 90% or more of the population over the last decade, and only three countries had a corresponding death registration system.



&#8220;Africa&#8217;s &#8216;data gap&#8217; needs to be urgently addressed,&#8221; the report said. &#8220;This will create an environment conducive to sustainable and equitable development, ensuring no one is left behind.” 



(Reporting by Karin Strohecker in London; editing by Jane Wardell)

Young Africans are ill-prepared to enter the job market as education worsens

30 ministries are taking part this
year, with over 20 presenting. This is the best chance to get insider knowledge
on key opportunities, legislation changes, bidding rounds and more – direct
from the companies and government intimately involved in leading them.



Here are some highlights of the
National Roadshows and Bidding Rounds happening this year at Africa Oil Week: 



Sierra
Leone



Sierra Leone will be announcing
details of a new bidding round at Africa Oil Week 2019.



Led by the Minister of Mineral
Resources Hon. Foday Rado Yokie and Timothy Kabba, Director General of the
Petroleum Commission of Sierra Leone, and supported by Jonathan Copus, CEO of
Getech, the nation’s delegation will be announcing the opening of a fresh round
of exploration rights.



Only eight wells have been drilled
there since 1982, with the latest coming from Lukoil in 2013, following three
wells drilled by Anadarko (now Occidental) in 2009, 2010 and 2012.



Cameroon



The world of African oil &amp; gas
legislation requires closer scrutiny as new changes emerge. Cameroon is one
nation that has recently made changes to its Petroleum Code.



Jean-Jacques Koum, Advisor for SNH
will present on how these changes will provide greater scope for operators,
investors and the wider finance community to find new ground in Cameroon.



One of the key changes is tax
holiday for oil and condensate development, and a further seven years for gas
development. What’s more, production sharing contracts (PSCs), can be modified
to allow companies to recuperate “exploration expenses” from production based
on Cameroonian on or offshore acreages.



Somalia



The Horn of Africa is open for
business. Somalia’s Petroleum Law and Revenue Sharing Agreement entered force
in May 2019. The nation also unveiled its inaugural offshore licensing round.



Keynote speaker Hon. Abdirashid
Mohamed Ahmed, Somali Minister of Petroleum and Mineral Resources, will lay out
the future of Somali oil &amp; gas for an international audience of financiers
and operators this November.



“This year is a landmark year in the
development of Somalia’s natural resources,” Minister Ahmed said. “The Ministry
has worked successfully with the federal member states to create and equitable
and transparent framework to develop natural resources for the greater good of
Somalia.”



Nigeria



No continental hydrocarbons summit
would be complete without representatives from Africa’s largest oil producer.
Hon. Timipre Marlin Sylva and Melee Kolo Kyari, GMD, NNPC will be leading the
Nigerian delegation, and Bala Wunti, Group General Manager, Corporate Planning
and Strategy, NNPC, is on hand to give the latest updates and opportunities
from Nigeria.



Nigeria continues to attract
significant international attention. According to the NNPC, China is emerging
as one of its key partners. Data from the NOC reveals that Chinese investments
in Nigeria’s oil sector have reached $16bn.



Even so, the nation is aiming at 70%
indigenous participation in oil &amp; gas projects by 2027, so there’s a lot of
interest in how Nigeria’s hydrocarbons sector will develop in the coming years.



Mozambique



Mozambique represents 23% of all
future African capEx, making it the second largest recipient of investment
anywhere in the continent going forward. In particular, natural gas projects
are set to receive a major boost – up to a potential $50bn in capital
expenditure.



Following on the from the success of
significant large-scale projects like Anadarko’s $20bn Mozambique LNG project,
players from across the globe are turning towards Mozambique with great
interest. A proposed $5bn EXIM bank loan to fuel further development is only
making the nation more attractive for investors.



Forming part of the Africa Oil Week
2019 National Roadshow programme is a look at Mozambique and the promise it
holds for international players.



Two of the key players helping
transform Mozambique’s oil &amp; gas industry into something truly world class
are speaking at Africa Oil Week this year. Chairman of the INP, the National
Petroleum Institute, Carlos Zacharias will be there to discuss his country’s
ongoing development, alongside NOC ENH’s CEO Omar Mithá.



23
nations presenting at Africa Oil Week



This is just a handful of the
African countries showcasing their latest news, investment opportunities, and
more at the continent’s leading summit.



Be sure to check out the Prospect Forum, which features additional governmental presentations, as well as our Ministerial Panels on the Tuesday and Wednesday on our Main Plenary Stage. To find out more, see the full Africa Oil Week agenda.



Content provided by Africa Oil Week

Why Africa Oil Week is the place for major national roadshows in the oil & gas sphere

JOHANNESBURG (Reuters) &#8211; South Africa&#8217;s rand inched slightly up in early trade on Monday, holding near a 3-week high it hit in the previous session, as risk sentiment strengthened following signs of progress in U.S.-China trade talks and a Brexit breakthrough.



At 0610 GMT, the rand was 0.05% firmer at 14.7470 per dollar, not far from Friday&#8217;s rally to 14.7100. 



On Friday, U.S. President Donald Trump said the United States and China had reached a &#8220;Phase 1&#8221; trade deal and suspended a threatened tariff hike, spurring a rally of emerging market currencies led by the rand.



In South Africa, with no local data due in the session, positioning will continue to be influenced to by offshore developments, traders said.



&#8220;The current levels of the local unit likely to attract some dollar buying interest, technically an attempt on 14.6000 remains a likely scenario,&#8221; traders at Nedbank said in a note.



Reports on Friday that European Union and Britain would hold intense talks over the next few days to secure a deal for Britain&#8217;s departure from the bloc as the Oct. 31 deadline looms large, also helped demand for currencies. 



Bonds were slightly firmer, with the yield on the benchmark paper due in 2026 down 0.5 basis points to 8.23%. 



(Reporting by Mfuneko Toyana; Editing by Rashmi Aich)

South Africa’s rand steady following signs of progress in U.S. – China trade talks

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<script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script>
The Household Wealth Index shows that South African households’ net wealth has increased over the first six months of 2019. This is according to the Momentum/Unisa Household Net Wealth Index. Professor Bernadene de Clercq joins CNBC Africa for more.

SA households’ real net wealth up R300bn in H1 2019

By Gary van Staden, Head of Research, NKC African Economics. 



Mozambique goes to the polls next Tuesday, October 15, against a backdrop of new investment plans that would significantly improve the country’s economic growth outlook, but also some concern over the possibility of conflict in what is guaranteed to be a disputed outcome.



Presidential,
regional, and national elections are likely to see incumbent President Filipe
Nyusi returned to office, while his ruling Mozambique Liberation Front
(Frelimo) is expected to gain a majority in the national assembly. Some
regional governors, however, may well fall to the opposition Mozambique
National Resistance (Renamo). 



The
presidential race requires an absolute majority, or a second round of voting
will be needed. As things stand, Mr Nyusi may narrowly avoid a run-off given
that Frelimo managed close to 52% of the vote in last year’s local authority
elections, although comparisons between presidential preferences and local
polls would be a stretch.



The
only guaranteed outcome is that Renamo will dispute the results as they have
done for every election since 1994 – usually without any substantive evidence
of misconduct. The problem is that the continuous allegations of rigging and
fraud increase the political temperature, and violence is always a potential
consequence. 



The
other issue is that Renamo has a social media network that works to generate
expectations of misconduct even before the elections are held. 



Make
no mistake, elections in Mozambique are far from perfect. While flawed and
often disorganised, the outcome of elections tends to reflect the will of the
people and usually qualifies for the ‘substantially free and fair’ verdict from
observers. That does not always quell the anger of the losers.



A
more significant problem for Renamo is the potential for infighting to cost it
at the polls. The internal squabbles over leadership and other issues preceded
the death of long-time leader Afonso Dhlakama but have escalated dramatically
since his demise, even resulting in a breakaway by some Renamo fighters who
rejected the leadership of Ossufo Momade and the recently signed peace deal
with the Frelimo government. 



While
the renegade bandits are not regarded as a serious threat, they remain capable
of disruption. A more serious threat comes from a larger body of discontent in
Renamo over the same leadership and policy issues as well as electoral
disagreements. All this plays into Frelimo’s hands.



Recent
announcements by Exxon Mobil highlighting plans to invest more than $500m in
the initial construction phase of its liquefied natural gas (LNG) project has
provided a welcome boost for Mr Nyusi and Frelimo, with the project expected to
pump much-needed cash into the economy. 



Media
reports this week stated that the US oil company’s $30bn Rovuma LNG project,
jointly operated with Italy’s Eni, has a capacity of more than 15 million
tonnes a year (mtpa). The Exxon project, along with Total’s $20bn 13 mtpa
facility and Eni’s $8bn 3.4 mtpa floating plant, means Mozambique will have the
ability to export 31 mtpa of natural gas – about 10% of today’s global market,
Reuters reports. 



The
massive investments into northern Mozambique will fundamentally alter the
socio-economic and political environment of the often-troubled northern
provinces, but at the same time provide an incentive to grapple for a slice of
the pie. Violence by Islamic extremists in the northern province of Cabo
Delgado has resulted in some 200 deaths over the past two years, prompting
Maputo to enlist the assistance of Russian para-military to help quell the
problem.



These
issues – along with the renegade Renamo bandits, the alarming killing of an
electoral official (allegedly by members of a police unit in the
Frelimo-stronghold Gaza province), and the spread of allegations of voter
numbers being inflated – are creating tensions and concern over conflict before
and after the polls. We expect at least some measure of conflict over the next
few days and weeks, mainly because the environment is once again being primed
for such conflict from several quarters – including media. 



Once
again, Mozambique goes to the polls next week amid the same concerns,
allegations, expectations, and predictions that have accompanied the polls for
the past two decades. We expect nothing different this time. Frelimo and Mr
Nyusi are expected to retain power, with a worst-case scenario for the
president of a run-off. If the run-off is avoided, then whatever sporadic and
limited conflict that may get sparked should die down. 



Frelimo
has not always covered itself in glory, but the massive investment and
opportunity for growth and development now afforded in the north must not be
squandered, and this election could be a new beginning.

Op-Ed: While Mozambique’s Frelimo is the favourite it will be no cakewalk

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As South Africa grapples with high unemployment, business, labour and civil society are coming together to find solutions. CNBC Africa&#8217;a Kopano Gumbi spoke to the Minister of Labour Thulas Nxesi on the back of the Harambee Solutions Exchange conference.

Minister Nxesi on how to solve SA’s youth unemployment crisis

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The United States Treasury has added Atul, Ajay and Tony Gupta to its sanctions list as “members of a significant corruption network in South Africa” that looted state coffers. The family has been accused of state capture as a consequence of their close relationship with former President Jacob Zuma. CNBC Africa&#8217;s Karabo Letlhatlha spoke to the Acting Ambassador to South Africa, David Young.

U.S places Gupta brothers on sanction list

HARARE (Reuters) &#8211; Zimbabwe has increased the average electricity tariff by 320% to let the state power utility ramp up production and improve supplies at a time of daily rolling power cuts, the national energy regulator said on Wednesday.



Power cuts lasting up to 18 hours have hit mines, industry and homes and, together with a devastating drought, have been cited by the treasury as among the main reasons why the economy is set to contract by up to 6% this year. 



However, the jump in power costs will further anger Zimbabwean citizens who have in the last week seen sharp rises in fuel and basic goods prices. Salaries have not kept pace, prompting citizens to blame President Emmerson Mnangagwa&#8217;s policies for the worst economic crisis in a decade.



The Zimbabwe Energy Regulatory Authority (ZERA) said it had approved an application by Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to raise the tariff to 162.16 cents (10.61 U.S. cents) from 38.61 cents.



This was the second increase in three months, following one in August.



ZERA said the tariff hike was necessary after inflation soared &#8211; the IMF says it was about 300% in August &#8211; and due to a plummeting Zimbabwe dollar currency, which was re-introduced in June.



The new tariff would allow ZETDC to raise money to repair its generators, as well as pay for imports from South Africa&#8217;s Eskom and Mozambique which cost U.S. $19.5 million every month, the regulator said.



Hopes that Zimbabwe&#8217;s economy would quickly rebound under Mnangagwa, who took over after the late Robert Mugabe was deposed in a coup in November 2017, have faded fast as ordinary people grapple with soaring inflation which has eroded earnings and savings.



(Reporting by MacDonald Dzirutwe; Editing by Toby Chopra)

Here’s why Zimbabwe has quadrupled its electricity prices

SAVE
THE DATE



All set for
second Africa Investment Forum 



What: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2019 Africa Investment Forum 



Who:
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
African Development Bank, Partners



When: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11-13 November 2019



Where: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sandton Convention Centre, Johannesburg,&nbsp;South Africa 



The second edition of the Africa Investment Forum, a game-changer to tilt capital flow into the continent, will take place from 11-13 November 2019 at the Sandton Convention Centre in Johannesburg,&nbsp;South Africa.



The forum, organized by the African Development Bank and its partners,
is the largest multi-stakeholder and multi-disciplinary marketplace aimed at raising
capital, advancing projects to bankable stage and accelerating financial
closure of deals.



There is an urgent need to bridge
the gap between Africa’s available capital and bankable projects. Although
brimming with investment opportunities, financing Africa’s development needs
will require between $200 billion and $1.2 trillion yearly. Of this, about
$130-$170 billion a year is needed for infrastructure, according to data by the
African Development Bank.



The Bank is working with other
multilateral development partners and stakeholders to ensure that the Africa
Investment Forum becomes the continent’s key springboard for investment to meet
the massive infrastructure and development needs.



Like the previous edition, the 2019
Forum will bring together project sponsors, pension funds, sovereign wealth
funds, private investors, policy makers, private equity firms, and heads of
government to advance Africa’s economic transformation agenda.



The inaugural
edition broke the mold for investment in Africa. It featured some 63 projects
from across 24 countries and seven sectors valued at $46.9 billion.
&nbsp;&nbsp;



Save the date now to avoid missing out on the biggest transactional gathering of global and pan-African investors on the continent. We look forward to meeting you in Johannesburg.



Content provided by the African Development Bank

Southern Africa

Why Starbucks Is Struggling In South Africa

Botswana polls open in first real challenge to ruling party

What you need to know about South Africa approving $4 billion bailout for debt-laden power utility Eskom

Smart Mobility Through Integrated Transport System: The future of Gauteng’s transport system

#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019

Op-Ed: The time is now for business to uplift society

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

What is causing Zimbabwe’s food security and humanitarian crisis ?

Young Africans are ill-prepared to enter the job market as education worsens

Why Africa Oil Week is the place for major national roadshows in the oil & gas sphere

South Africa’s rand steady following signs of progress in U.S. – China trade talks

SA households’ real net wealth up R300bn in H1 2019

Op-Ed: While Mozambique’s Frelimo is the favourite it will be no cakewalk

Minister Nxesi on how to solve SA’s youth unemployment crisis

U.S places Gupta brothers on sanction list

Here’s why Zimbabwe has quadrupled its electricity prices

The second edition of the #AfricaInvestmentForum, a game-changer to tilt capital flow into the continent

News Tips

Advertise With Us

Southern Africa

Why Starbucks Is Struggling In South Africa

Botswana polls open in first real challenge to ruling party

What you need to know about South Africa approving $4 billion bailout for debt-laden power utility Eskom

Smart Mobility Through Integrated Transport System: The future of Gauteng’s transport system

#TheHashtag: Billionaire Mark Cuban’s lessons for entrepreneurs & SA vs. Japan at #RWC2019

Op-Ed: The time is now for business to uplift society

South Africa’s rand takes a tumble as Eskom plans nationwide power cuts

What is causing Zimbabwe’s food security and humanitarian crisis ?

Young Africans are ill-prepared to enter the job market as education worsens

Why Africa Oil Week is the place for major national roadshows in the oil & gas sphere

South Africa’s rand steady following signs of progress in U.S. – China trade talks

SA households’ real net wealth up R300bn in H1 2019

Op-Ed: While Mozambique’s Frelimo is the favourite it will be no cakewalk

Minister Nxesi on how to solve SA’s youth unemployment crisis

U.S places Gupta brothers on sanction list

Here’s why Zimbabwe has quadrupled its electricity prices

The second edition of the #AfricaInvestmentForum, a game-changer to tilt capital flow into the continent

News Tips

Advertise With Us

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