Nyshka Chandran
Source: <a href="https://www.cnbc.com/2018/07/20/china-mediation-diplomacy-in-focus-as-xi-jinping-heads-to-africa.html">For years, China shied away from global conflicts. Not anymore</a>
<ul>
<li>Chinese President Xi Jinping will be visiting Senegal, Rwanda and South Africa in the coming days.</li>
<li>As Beijing increasingly presents itself as a mediator in political conflicts, China&#8217;s influence on the continent could grow.</li>
<li>Africa is home to massive Chinese investments and the country&#8217;s first overseas military base.</li>
</ul>
<img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/07/20080312/105342020-1532055235774gettyimages-9923602821.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="YASUYOSHI CHIBA/AFP/Getty Images"/>
As the China invests billions in continent-spanning infrastructure projects, it&#8217;s building a stronger diplomatic voice to match its ever-expanding presence on the global stage.
Across the developing world, Beijing has been engaging in mediation diplomacy — a style of conflict resolution where it&#8217;s the sole or principal moderator — to protect its assets and gain recognition as a respectable superpower.
Africa, where Chinese President Xi Jinping will be touring in the coming days, has long been a training ground for Chinese peace efforts. In 2007, Beijing appointed its first-ever special representative to genocide-hit Darfur to help achieve a political settlement. And in 2015, Chinese officials brought together 
South Sudan’s 
 warring parties for negotiations. Just this week, the communist state offered to mediate in a border dispute between Eritrea and Djibouti, the latter of which is home to 
China&#8217;s first overseas military base 
.
Assuming the role of mediator could increase Beijing&#8217;s influence in nations home to Chinese investments, such as Senegal, Rwanda and South Africa where Xi will soon be visiting.
&#8220;Being seen as a mediator in regional disputes can only help burnish China’s image,&#8221; said researchers at the China Africa Research Initiative, a program at Johns Hopkins University. And in Africa, where 
Xi&#8217;s administration has established greater military links 
, it&#8217;s essential for Beijing to protect the stability of countries where China has economic interests, they added.
In fact, many speculate that it was 
China&#8217;s concerns over its investments in Zimbabwe 
 that resulted in the coup that ousted former leader Robert Mugabe in November of last year — a charge that Xi&#8217;s administration has denied.
According to Xi&#8217;s vision of a &#8220;community of common destiny,&#8221; a phrase he repeatedly uses in speeches, &#8220;China’s growth and prosperity becomes a part of the experience of all these other countries,&#8221; the researchers said, adding that such a line of thinking &#8220;can also be interpreted as a type of foreign policy or growing political influence.&#8221;
It&#8217;s a new development in China&#8217;s traditional diplomatic protocol. Since 1954, the Asian giant has said it practices mutual non-aggression and non-interference in the internal affairs of others. But the nation&#8217;s political ambitions have swelled considerably under Xi&#8217;s reign, and that&#8217;s led to a change of approach. With Chinese commercial and economic ventures now spanning the globe under the 
Belt and Road Initiative 
, Xi&#8217;s government is intensifying efforts to secure Chinese workers and interests abroad.
In 2017, Beijing hosted a meeting with the foreign ministers of Afghanistan and Pakistan to end terrorism-related hostilities between the two as Xi sought to incorporate Kabul into his 
$57 billion economic corridor with Islamabad 
. Last year also saw Xi raise the possibility of three-way talks with Israel and Palestine. He&#8217;s also 
proposed a peace plan for ethnic cleansing in Myanmar 
, which is home to a special economic zone being built by a China-led consortium.
But China&#8217;s attempts at brokering peace may be fundamentally limited. Its primary goal is a stable atmosphere for its global investment, so it is likely unwilling to enforce outcomes or apply pressure, strategists said.
“China will actively explore a way of resolving hotspot issues with Chinese characteristics and play a bigger and more constructive role in upholding world stability,&#8221; Foreign Minister Wang Yi said at 
last October&#8217;s 19th Party Congress 
.
A willingness to provide solutions with &#8220;Chinese characteristics&#8221; is significant, Angela Stanzel, senior policy fellow at the European Council on Foreign Relations&#8217; Asia division, wrote in a brief last week: &#8220;The implication behind this offer is that China is better placed to resolve regional and global problems than other countries, particularly the U.S.&#8221;
The Asian heavyweight may be seeking to demonstrate that, unlike Western countries, it doesn&#8217;t differentiate between democracies and dictators, Stanzel suggested.

For years, China shied away from global conflicts. Not anymore

WINDHOEK (Reuters) &#8211; Namibia secured a $218 million loan from the African Development Bank, the second tranche of a quarter billion dollar facility from the development lender to help the country finance its budget deficit, the finance ministry said on Thursday.
The southern African nation’s economy contracted in the final two quarters of 2017, and by 0.1 percent in the first quarter OF 2018. Its credit rating was cut to subinvestment late last year by Fitch over concerns of a deteriorating fiscal position.
Reporting by Nyasha Nyaungwa; Writing by Mfuneko Toyana; Editing by James Macharia

African Development Bank grants $218 million loan to Namibia, what you need to know

Emmie Martin
Source: <a href="https://www.cnbc.com/2018/07/13/barack-obamas-summer-reading-list.html">6 books Barack Obama recommends reading this summer</a> 
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/07/17040219/104656161-GettyImages-688156110.1910x1000.jpg" alt="Former President of the United States of America Barack Obama " height="1000" width="1910" data-licensor-name="Getty Images"/>
For the first time since leaving office, Barack Obama is returning to Kenya and South Africa, where he’ll speak in remembrance of the 100th anniversary of Nelson Mandela’s birth, the former U.S. president wrote on Facebook on Friday.
As Obama prepares for his trip, he has compiled a list of books that celebrate the region and highlight “a number of Africa’s best writers and thinkers.” This is in addition to the list he released in June of 
five nonfiction titles he’s currently enjoying 
.
If you’re looking for a good book to dive into this weekend, here are the six books Obama recommends for summer reading.

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“Things Fall Apart” by Chinua Achebe
Achebe’s 1994 novel “Things Fall Apart” explores the beginnings of European colonialism in African villages through the perspective of Okonkwo, an Igbo warrior.
“A true classic of world literature, this novel paints a picture of traditional society wrestling with the arrival of foreign influence, from Christian missionaries to British colonialism,” Obama writes.

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“A Grain of Wheat” by Ngugi wa Thiong’o
“A Grain of Wheat” follows Kenyan families in the aftermath of the Mau Mau rebellion in the 1950’s. Although the uprising became a significant part of Kenya’s fight for independence from Britain, the years-long conflict was also one of the nation’s bloodiest.
Obama calls it “a compelling story of how the transformative events of history weigh on individual lives and relationships.”

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“Long Walk to Freedom: The Autobiography of Nelson Mandela” by Nelson Mandela
“This definitive memoir traces the arc of his life from a small village, to his years as a revolutionary, to his long imprisonment and ultimately his ascension to unifying president, leader and global icon,” Obama writes.
“Long Walk to Freedom” takes a deep dive into Mandela’s journey, detailing the events that made him instrumental in fighting racial oppression in South Africa and ultimately changing the country’s political systems.
“Essential reading for anyone who wants to understand history — and then go out and change it,” Obama says.

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“Americanah” by Chimamanda Ngozi Adichie
“Americanah” tells the stories of Ifemelu, a Nigerian woman living in the U.S., and Obinze, the man she left behind. The novel reveals the lives each have led since they last saw each other and their eventual reunion 15 years later.
“Americanah” raises “universal questions of race and belonging, the overseas experience for the African diaspora, and the search for identity and a home,” Obama says.

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“The Return: Fathers, Sons and the Land in Between” by Hisham Matar
When Matar’s father is kidnapped in 1990 by men working for Libyan dictator Muammar el-Qaddafi, Matar never hears from him again and is left to imagine his fate. So after Qaddafi is driven from power in 2011, Matar returns to Libya seeking answers.
Obama calls the Pulitzer Prize-winning biography “a beautifully-written memoir that skillfully balances a graceful guide through Libya’s recent history with the author’s dogged quest to find his father who disappeared.”

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“The World As It Is: A Memoir of the Obama White House” by Ben Rhodes
Few people have spent more time observing Obama’s time in office than Rhodes, who worked as the president’s speechwriter, deputy national security advisor and aide, and “few others so closely see the world through my eyes like he can,” Obama writes.
“Ben’s one of the few who’ve been with me since that first presidential campaign,” he continues. “His memoir is one of the smartest reflections I’ve seen as to how we approached foreign policy, and one of the most compelling stories I’ve seen about what it’s actually like to serve the American people for eight years in the White House.”
Don&#8217;t miss: 
Here are the 5 books Barack Obama is reading right now
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6 books Barack Obama recommends reading this summer

Mining projects bearing jobs and investment could be lost across South Africa through one of the well-meaning clauses in the proposed amendments to the country’s Mining Charter, warns the head of one of Africa’s biggest precious metals producers. The legislators may live to regret the idea of “free carry,” in the ownership of mining projects.
The Mining Charter – the voluntary document governing black participation in South Africa’s shrinking, yet lucrative, mining industry – is open for public comment until the end of August and should come into force by the end of October. The amended document calls for 30% black ownership, up from 26% laid down in the original document in 2004, to be achieved within five years.
The well-meaning clause to give part ownership of projects to mine employees and the communities who live with the dirt and dust of mining – so called “free carry” – has caused controversy. It says that 10% of the 30% black ownership of new mining rights be handed free to employees and communities by the mining companies.
“Free carry will cause a lot of mining investors to look elsewhere and that is sad,” says Neal Froneman, the CEO of Sibanye-Stillwater the world’s second largest platinum producer.
“A few good projects will get through but most projects won’t be able to carry the costs in an industry where capital costs are already high.”
Soria Hay, BEE expert and Head of Corporate Finance at Bravura, an independent investment banking firm specialising in corporate finance and structured solutions, warned that mining was already in retreat. She says the industry contributed 14% to GDP in 1994 and now contributes a mere 7% and “free carry” could make it worse.
“The free carry requirement that 10% of the 30% black ownership target for new mining right applicants be granted free to communities and qualifying employees, as well as the required contribution of 5% from payroll will have a major impact on the profitability and cash flow of mining entities. From an investor’s perspective, this translates into big costs, before you even reach positive cash flows in a mine,” says Hay.
“A one-month extension for token consultation is not going to help. Going back to the drawing board and starting afresh on the problematic issues may take longer, but a bad outcome is worse than a longer waiting period. We are in a booming commodity cycle globally, but South Africa is missing out because we don’t get our ducks in a row.”

Hello free carry? Goodbye mining projects, warns top South African mining boss

Kevin Sneader, global managing partner of McKinsey &amp; Company speaking at a GIBS discussion entitled: McKinsey on Eskom: Learning from the past &#8211; looking to the future said the world’s largest management consultancy is open to interest discussions with Eskom on the R1 billion it was paid for its turnaround plan, which it will repay today.
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Sneader also apologised for McKinsey&#8217;s involvement in state capture and said Mckinsey would hand over all information it had to Judge Zondo to assist in his inquiry on state capture.
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On Friday Africa’s largest electricity supplier, <a href="http://cnbc.africa/zdnl-mc/2018/07/06/mckinsey-to-pay-back-r1bn-to-eskom-trillian-not-part-of-deal/">Eskom finalised a settlement agreement</a> with McKinsey for R1 billion ($74 million).
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Eskom asked McKinsey to pay back the R1 biilion, last year after an internal inquiry found that the state power utility’s decisions to make the payments were unlawful.
McKinsey together with Trillian were paid R1.6 billion for a “Turnaround Plan” carried out at Eskom between January and July 2016.

McKinsey is open to discuss interest repayments with Eskom

JOHANNESBURG (Reuters) &#8211; South Africans are paying too much for private healthcare, the country’s antitrust watchdog said on Thursday, adding patients are sometimes prescribed treatments they don’t need by an industry with limited competition.
Presenting its findings of a four-year investigation into the sector, the Competition Commission said private health providers sometimes recommended pricey treatments unnecessarily.
“This happens, for example, if a doctor orders more tests than are absolutely necessary or conducts a Caesarean section when it is not absolutely necessary to do so,” said Sandile Ngcobo, a former chief justice who headed the Commission’s investigating panel.
The findings could boost health minister Aaron Motsoaledi’s efforts to cut costs for patients as the government works towards implementing a nationwide medical insurance plan that aims to give the poor greater access to healthcare.
South Africa spends roughly 9 percent of gross domestic product on healthcare but more than half of that is spent by about 16 percent of the population with private medical schemes, according to the health department.
The inquiry also found there was limited competition in both the healthcare insurance and the private hospital markets.
South Africa’s private hospital industry is dominated by Mediclinic International, Life Healthcare and Netcare, while the medical insurance sector counts Discovery Ltd , Liberty Holdings and MMI Holdings among the biggest players.
“One of the challenges of this, from a competition perspective, is that it affords the big-three hospital groups “must-have” status in bargaining for contracts with funders which reduces funders’ countervailing power,” Ngcobo said.
To address the concentration, the Commission proposed divestments and imposing a moratorium on issuing new licences to the three large hospital providers until such time as their national market share is no higher than 20 percent.
It also proposed setting up a regulator to set tariffs for health services after extensive consultation with stakeholders in a public forum.
South Africa already uses a regulator to set the price of electricity, the bulk of which is supplied by utility Eskom.
Stakeholders have until Sept. 7 to comment on the findings and proposed recommendations.
Ngcobo and his team will consider the comments and, if necessary, revise the report. The final report and recommendations are expected to be published by the end of November.
Reporting by Tiisetso Motsoeneng; Editing by Mark Potter

Watchdog finds that South Africans are paying too much for private healthcare, here’s why…

South Africa has become the latest country to sign the <a href="http://cnbc.africa/videos/2018/06/04/how-african-economies-will-benefit-from-the-continental-free-trade-area/">Africa Continental Free Trade Area (AfCFTA) agreement</a> as it battles with poor economic data, an emerging market selloff and trade wars galvanised by the United States.
South Africa’s President Cyril Ramaphosa signed the AfCFTA agreement during the 31st Ordinary Session of the Assembly of Heads of State and Government taking place in Nouakchott, Islamic Republic of Mauritania.
Talks to start the free trade pact began in 2015 and were finally realised in March. But among the initial holdouts were Africa’s largest economies, Nigeria and South Africa, due to legal and internal issues. Some felt that this would be a stumbling block for AfCFTA. This has changed with South Africa’s signature.
The pact aims at creating a trade bloc, which Bloomberg estimates will have a combined gross domestic product of more than $3 trillion.
According to Bloomberg, “Intra-Africa trade currently stands at about 16 percent of the continent’s total, compared with 19 percent in Latin America and 51 percent in Asia. The agreement could increase this by half, the United Nations Economic Commission for Africa estimates”.

SA has just joined Africa’s $3 trillion free-trade club

JOHANNESBURG (Reuters) &#8211; The retail price of petrol in South Africa will rise by more than 1.5 percent from July 4, while the price of wholesale diesel will rise by 1.8 percent, the energy department said on Sunday.
The price of petrol will rise by 26 cents to 16.02 rand per litre in the commercial hub of Gauteng province, while diesel will also go up by 26 cents to 14.45 rand per litre.
The Central Energy Fund said the lower crude oil prices after the Organization of the Petroleum Exporting Countries (OPEC) agreed to increase production had offset a sharp fall in the currency, which last month pushed fuel prices to record highs.
Reporting by Mfuneko Toyana. Editing by Jane Merriman

Petrol price in South Africa set to rise, what motorists can expect to pay in July

By Zandre Campos, Chairman and CEO of ABO Capital
Angola has the potential to become a major exporter, as the country has seen fairly stable intercontinental and global trade growth in the past 20 years. Africa’s top trade partners have included China, the United States, and the European Union, but with variables like politics, pricing, and availability of resources, Angola must continue to allocate the time and funds needed to keep up with supply and demand of its current exports, and start expanding into new sectors.
Africa’s dominant sources of revenue are oil and metal, which account for approximately 90 percent of the continent’s total exports. Angola is one of the few African countries that relies almost solely on these two commodities as its main exports, but the country is taking great steps to invest resources in opportunities with high manufacturing intensity, like food production. According to the <a href="https://read.oecd-ilibrary.org/development/african-economic-outlook-2017_aeo-2017-en#page1">2017 African Economic Outlook report</a>, agriculture provided jobs for more than 60 percent of Africa’s workforce, but accounted for less than a quarter of total exports.
Technological advancements, from motorized equipment to biotechnology like seed modification, have widely contributed to the worldwide growth of agriculture. However, Africa’s farming and processing capabilities are still underdeveloped, and this may be due to the continent’s low import percentage of heavy machinery and transport equipment, as well as climate change patterns. Organizations like ETG, one of the fastest growing integrated agricultural supply chain groups, and a venture that I currently support, are working to ensure the rapid growth of procurement, processing and manufacturing of finished goods, and product distribution through machinery, irrigation, warehousing, and transportation methods. Advancements in computers and the Internet also facilitate trade deals among long-distance business partners.
While technology is critical to the continued development of agricultural commodities, it’s important to note that factors like trade policy, infrastructure, and education impact Angola as an exporter. The African Continental Free Trade Area (AfCFTA), for example, is said to boost African economies by harmonizing intercontinental trade liberalization, removing tariffs on 90 percent of goods once the policy is in effect, and establish free movement of business people and investments. Through the AfCTFA, Africa will see more trade liberalization and enhanced competition with more opportunities with high manufacturing intensity. Technology will be a key driver in maintaining production and ultimately competition.
On the infrastructure side, roads, vessels and flight paths should be readily available in order to move a high volume of product across the border. Fortunately, according to the African Development Bank, the Angolan government had previously committed to allocating nearly $5.5 billion to finance private sector projects in areas with high export potential, like food and agriculture. This includes electricity projects, construction of a new international airport in Angola’s capital Luanda, and a new commercial port north of Luanda. Lastly, farmers, warehouse workers, transportation staff and others closely involved in the supply chain might require additional technical training when there are changes or advancements in equipment.
By investing resources in agricultural and technology, along with the proper infrastructure and education, Angola can become a major exporter in oil, metal and food, fostering healthy economic development in the country, and in Africa as a whole.

Op-Ed: Angola has the potential to become a major exporter, this is what it needs to do

HARARE, June 26 (Thomson Reuters Foundation) &#8211; With increasingly extreme weather taking a toll on farming and incomes, Zimbabwe has released a trio of climate change policies designed to make the country more resistant to climate pressures and help it meet its international carbon-cutting pledges.
The Child Friendly Climate Policy is designed to educate school children about climate change and promote climate-friendly practices, such as protection of forests and wetlands and broader use of low-emissions technologies.
A new Climate Smart Agriculture Policy, meanwhile, focuses on ensuring farmers and agricultural advisers adopt climate-hardy farming practices.
And the country’s first overall National Climate Policy aims to help Zimbabwe put in place the legal structures needed to guide businesses on becoming greener to meet its emissions-cutting promises under the international Paris Agreement, said Washington Zhakata, climate change management director in the Ministry of Environment, Climate and Water.
“The National Climate Policy is the first step towards achieving this,” he told the Thomson Reuters Foundation in an interview.
<h3>ADAPTING TO LESS WATER</h3>
Tirivanhu Muhwati, a climate scientist with the Ministry of Environment, Climate and Water, said the national policy will also focus heavily on adaptation to climate pressures, as most of the country’s communities are rural and depend on agriculture even as droughts intensify.
“The policy has a thrust towards promoting adaptation because, as a developing country, our scope for mitigation or reducing emissions is limited because we are not all that industrialised compared to the developed world,” he said.
Approximately 80 percent of Zimbabwe’s rural people depend on rainfed agriculture for a living, making them highly vulnerable to more extreme weather associated with climate change, said Environment, Water and Climate Minister Oppah Muchinguri Kashiri, at the launch of the policies this month.
According to the country’s submissions to the United Nations Framework Convention on Climate Change, most of Zimbabwe’s climate-changing emissions come from burning fossil fuels for energy, from agricultural production, and from waste handling and industrial processes.
The new climate change policy aims to help cut emissions by industry, energy producers, agriculture, and deforestation, among other sources.
Muhwati described the Child Friendly Climate Policy as a version of the national climate change policy meant to help students understand climate change issues and also to promote climate friendly practices among young people.
The policy comes on top of other recent efforts to add climate change issues into the new national school curriculum, said Muhwati.
The Climate Smart Agriculture Policy, meanwhile, aims to help university professors and agriculture extension advisers pass on up-to-date information on agricultural practices capable of standing up to climate threats, from worsening drought to flooding.
“It aims to introduce a wholesome change in the way we do our agriculture. The best way to do this is through our agricultural colleges and universities,” Muhwati said.
<h3>PUT TO WORK?</h3>
Peter Makwanya, a communications lecturer at Zimbabwe Open University and a writer on climate change communications issues, said all the three policies could help the country better deal with climate change – but only if they are actually put into practice.
“Climate smart agriculture is a noble idea if implemented sufficiently well but this is an area with lots of challenges, considering how our country manages, monitors and implements agricultural activities,” he said.
“All the three policies can take the country somewhere if implemented properly &#8211; but Zimbabwe is very good at formulating blueprints and very poor on implementation,” he stressed.
Zhakata, however, said the policy was different from past policies that may have been shelved, if only because so many people now recognise that climate change is a problem and require effective guidance to ensure they can adapt.
Shephard Zvigadza, chairman of the Climate Change Working Group-Zimbabwe, a civil society organisation, said he believes the new policies should be combined with Zimbabwe’s 2014 Climate Response Strategy into a national climate change law, with binding provisions for action.
But he said Zimbabwe will require sustained financial and technical support to help it adapt to growing climate pressures.
The national government has said it intends to establish a National Climate Fund that would use 10 percent of the national budget to finance action on adapting to climate change and curbing emissions.
The money would also support efforts to win funding from international climate funds, according to the new National Climate Policy.
The government has said it would also consider a small tax on industry profits to support green growth.
Besides worsening droughts and flooding – which have destroyed roads and schools over the past year – Zimbabwe faces climate pressures including flare-ups in malaria as temperatures rise and rainfall becomes more erratic. (Reporting by Tonderayi Mukeredzi ; editing by Laurie Goering : (Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, climate change, resilience, women&#8217;s rights, trafficking and property rights. Visit <a href="http://news.trust.org/climate">news.trust.org/climate</a>)

Hit by extreme weather, Zimbabwe takes action

JOHANNESBURG, June 25 (Reuters) &#8211; Renowned South African photojournalist David Goldblatt, who documented the impact of apartheid on the lives ordinary people, died on Monday from cancer aged 87.
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Born of Lithuanian immigrants in Johannesburg&#8217;s gold reef, Goldblatt gained international recognition in the 1960s and 70s as apartheid laws took hold in South Africa, culminating in the 1976 Soweto youth uprising.
His later work in the democratic era recorded the inner city lives of middle class residents, both black and white.
Goldblatt was awarded the Commandeur des Arts et des Lettres by the French Ministry of Culture in 2016 and a feature-length documentary on his life premiered last year.
Goldblatt&#8217;s photographs showed the &#8220;quiet, yet equally poignant features of the brutal apartheid regime,&#8221; said the Goodman Gallery in Johannesburg, which has exhibited much of his work over his 50-year career. (Reporting by Mfuneko Toyana Editing by James Macharia and Andrew Heavens)
</div>

Renowned Photojournalist Goldblatt, who documented apartheid, dies aged 87

<figure><img decoding="async" src="https://images.theconversation.com/files/224034/original/file-20180620-137711-kxzb6.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="File 20180620 137711 kxzb6.jpg?ixlib=rb 1.1" /><figcaption>Rosewood is popular in China for ‘hongmu’ &#8211; antique furniture. 
Shutterstock/HelloRF Zcool</figcaption></figure>
<a href="https://theconversation.com/profiles/paolo-omar-cerutti-496591">Paolo Omar Cerutti</a>, <a href="http://theconversation.com/institutions/centre-for-international-forestry-research-1081">Centre for International Forestry Research</a> and <a href="https://theconversation.com/profiles/davison-gumbo-496595">Davison Gumbo</a>, <a href="http://theconversation.com/institutions/centre-for-international-forestry-research-1081">Centre for International Forestry Research</a>
Rosewood is the generic name for several dark-red hardwood species found in tropical regions across the globe. It fetches very high prices because it’s strong, heavy, has a beautiful red hue and takes polish very well – and because the trees are becoming increasingly scarce. On the Chinese market in 2014, for example, prices were <a href="https://www.ft.com/content/5134ca48-bd41-11e4-b523-00144feab7de">in excess</a> of USD$17,000 per ton. That’s ten times higher than the price of more standard tropical hardwood.
There’s a huge demand in China for rosewood logs to make hongmu – antique furniture. Hongmu was used historically by the imperial elite and is now <a href="https://www.forest-trends.org/publications/chinas-hongmu-consumption-boom/">coveted</a> by China’s rising middle class. Supplies of the wood from markets in Latin America and South-East Asia have dwindled in recent years, so Africa has become a key source. Within Africa, Zambia has become one of China’s main rosewood exporters in the past decade.
But the harvesting of rosewood is often not done sustainably. Several African species have already <a href="https://news.mongabay.com/2016/02/threatened-west-african-rosewood-species-gets-cites-protection/">received protection</a> under the Convention on Trade in Endangered Species.
We <a href="https://www.cifor.org/library/6826/informality-global-capital-rural-development-and-the-environment-mukula-rosewood-trade-between-china-and-zambia/">researched</a> the rosewood trade between China and Zambia in 2016 and 2017. We wanted to study the relationship between global and local sources of capital, rural development and environmental impacts. We also wanted to see whether regulations, adopted to preserve natural resources like rosewood, provide the right set of incentives and disincentives for business to be sustainable.
The most common name used to identify rosewood in Zambia is mukula. But because several different species are categorised as mukula, and because comprehensive inventories are lacking, current rosewood stocks are not known. Legal uncertainties and corruption mean that laws, regulations, or sustainable forest management plans, related to rosewood, are rarely implemented and monitored.
This means that Zambia doesn’t benefit much from rosewood trade. Its forests are being decimated, causing serious environmental degradation. And though rural Zambians and their families do profit, this is short-lived. We also found that because the trade isn’t being effectively monitored or taxed, the government loses about USD$ 3.2 million in potential revenue every year.
<h2>Monitoring challenges</h2>
A couple of big factors have allowed this situation to thrive.
The first is that mukula was only recently added to Zambia’s list of official commercial species. It was previously recorded under the general term “other”, so its trade wasn’t properly recorded or taxed appropriately. In addition, even though there’s an export ban on mukula leaving in log form, it has been allowed to leave the country almost exclusively in log form. Aside from legal considerations, this defies the purpose of the ban, which is to boost local processing and job creation in Zambia.
The second is that the government has been issuing and lifting various regulations in rapid sequence over the years, which have left enforcement agencies on the ground unclear about what rules applied where and when. This has boosted corruption, which means many officials have no incentive to ensure the trade is well regulated. About US$1.7 million is paid in rosewood-linked bribes each year. Most of which are collected along Zambian roads where trucks must make payments to proceed towards the points of export.
The results of these legal uncertainties can be seen in the graph below which shows log exports, as recorded by Zambian authorities through the Food and Agriculture Organisation of the United Nations, and log imports as recorded by Chinese authorities.
<figure class="align-center "><img decoding="async" src="https://images.theconversation.com/files/223788/original/file-20180619-126559-7e76s9.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="" /><figcaption></figcaption></figure>
The discrepancies, in volume and value, between the declarations are huge. For example, in 2016, Zambia declared exports for about 3,000 cubic metres at an approximate value of USD$900,000. China, meanwhile, declared imports of about 61,000 cubic metres for an approximate value of USD$87 million. Because Chinese customs do not recognise mukula as rosewood, we cannot determine the amount, but because Zambia exports only a few species whose volumes haven’t changed much over the years, we are sure that mukula represents the vast majority of those volumes.
It’s clear that a series of measures, in particular log-export and production bans <a href="https://af.reuters.com/article/africaTech/idAFL8N1PJ552">adopted</a> over the years, don’t work. Bans only make sense when coupled with other measures, like effective enforcement or a system of incentives. In fact, bans have contributed to keep the rosewood market underground without really affecting harvest and trade. But solutions are possible.
<h2>Focus areas</h2>
Our research suggests that four points need immediate attention.
<ol>
<li>The strategy of continuously adopting and lifting production and export bans is not working and should be abandoned. If a ban is deemed necessary, a coherent enforcement strategy must be adopted, enforced and monitored. If not, The Zambian Forestry Department should propose a revision of the legal framework and ensure logs for export are appropriately taxed.</li>
<li>The Zambian government must support the Forests Act of 2015. This aims to protect the country’s forests and people’s long-term livelihoods by implementing innovative management and monitoring measures, including community, joint and private forest management approaches.</li>
<li>The governments of Zambia and China need to engage in discussions with their respective CITES management and scientific authorities and list mukula as a species that may be threatened with extinction, should the trade not be closely controlled. This would hopefully limit international demand.</li>
<li>Countries in sub-Saharan Africa should learn from each other’s environmental challenges and work better together. While Zambian forests were emptied of rosewood – and the government was deliberating potential countermeasures – buyers and traders <a href="http://pubs.iied.org/pdfs/13603IIED.pdf">had already</a> moved into Malawi, the Democratic Republic of Congo and Mozambique. While trying to perfect domestic laws, the precious resource will already be gone.</li>
</ol>
By working together, the battle to save these fragile forests could be won.
<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/98092/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" />Valued contributions to the research leading to this article were also made by: Xiaoxue Weng, George Schoneveld, Kaala Moombe, Nils Bourland, and Robert Nasi.
<a href="https://theconversation.com/profiles/paolo-omar-cerutti-496591">Paolo Omar Cerutti</a>, Senior Scientist Centre for International Forestry Research, <a href="http://theconversation.com/institutions/centre-for-international-forestry-research-1081">Centre for International Forestry Research</a> and <a href="https://theconversation.com/profiles/davison-gumbo-496595">Davison Gumbo</a>, Scientist with the Center for International Forestry Research, <a href="http://theconversation.com/institutions/centre-for-international-forestry-research-1081">Centre for International Forestry Research</a>
This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/why-zambia-has-not-benefitted-from-its-rosewood-trade-with-china-98092">original article</a>.

Rosewood fetches in excess of USD$17,000 per ton but Zambia is failing to benefit, here’s why

Both Zimbabwe&#8217;s President Emmerson Mnangagwa and Ethiopia’s new Prime Minister Abiy Ahmed are safe after explosions rocked rallies where they were present in their respective countries.
Mnangagwa escaped unhurt after an explosion rocked a stadium where he was addressing a political rally on Saturday, a month before the country is due to hold its presidential elections.
However, vice presidents Constantino Chiwenga and Kembo Mohadi and a minister sustained minor injuries following the blast at the White City Stadium in the second city of Bulawayo.
Ahmed escaped a grenade attack on Saturday at a rally in the capital that killed one person and left scores wounded, officials and witnesses said.
The attack was launched by an unidentified assailant moments after 41-year-old prime minister, a former soldier who took office in April, finished his speech to tens of thousands of people gathered in the centre of Addis Ababa.
A witness saw Abiy whisked away by guards. Another witness told Reuters the assailant with the grenade had been wrestled to the ground by police before it exploded.
Health Minister Amir Aman said one person was killed and 154 were wounded, with 10 of them in critical condition.
Zimbabwe 
“There has been an incident at Bulawayo where the president was addressing a rally. This is now a police issue but the president is safe at Bulawayo State House,” spokesman George Charamba told Reuters.
“We are still to get information on what exactly happened as we understand that some people could have been injured as this happened in the VIP tent.”
National Police spokeswoman Charity Charamba said she did not have details on the incident.
Several security personnel were also injured, the state-owned Herald newspaper said.
Footage from Zimbabwe state television showed the explosion took place near Mnangagwa as he waved to supporters. He was later seen in pictures circulating on social media visiting Chiwenga’s wife in hospital.
Mnangagwa was speaking at his first rally in Bulawayo, an opposition stronghold where the ruling ZANU-PF has not won in national elections since 2000.
Zimbabwe holds its presidential election on July 30, with 75-year-old Mnangagwa and 40-year-old Nelson Chamisa, the leader of the opposition Movement for Democratic Change, the main contenders.
The vote next month is the first since Robert Mugabe’s downfall after a de facto military coup last November.
Unlike previous elections which were marred by violence, mostly against opposition members by ZANU-PF supporters, the run up to this year’s vote has been relatively peaceful.
Mnangagwa has promised a free and fair vote and if it is endorsed by international observers who are in the country for the first time since 2000, it could help Zimbabwe secure funding from international institutions for the first time in two decades.
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<div class="container_2dHIN dp-slot-inline_eUPBt">Mnangagwa said last August, then the vice president, that he had been poisoned at a rally outside Bulawayo and spent weeks receiving medical treatment in neighbouring South Africa.</div>
</div>
Zimbabwe last had blasts at rallies in the 1980s, which had targeted Mugabe.
Ethiopia 

Addressing the nation on television shortly after the blast and still wearing a green t-shirt he was handed at the rally, Abiy said the attack was an “attempt by forces who do not want to see Ethiopia united.”
Abiy had promised the crowd in his speech in Addis Ababa’s Meskel Square that he would bring more transparency to government and reconciliation to a nation of 100 million people that has been torn by protests since 2015.
Eritrea, which has long been at loggerheads with Ethiopia over a border row that Abiy has sought to resolve, condemned the incident, as did the European Union and the United States.
Abiy took office after his predecessor, Hailemariam Desalegn, resigned in February following protests in which hundreds of people were killed between 2015 and 2017.
Emergency law was temporarily imposed to quell the unrest and was lifted this month.
Despite boasting one of Africa’s fastest growing economies, opponents say the benefits have not been shared fairly between ethnic groups and regions in the country, which has been run by the same ruling coalition for more than quarter of a century.
Abiy has travelled around the nation, promising to address grievances and address political and civil rights.
After Saturday’s blast, the prime minister’s chief of staff wrote on Twitter: “Some whose heart is filled with hate attempted a grenade attack.”
“All the casualties are martyrs of love &amp; peace. HE PM sends his condolences to the victims. The perpetrators will be brought to justice,” Fitsum Arega wrote.
The U.S. embassy in Addis Ababa said: “Violence has no place as Ethiopia pursues meaningful political and economic reforms.”
<h3>PEACE INITIATIVE</h3>
Rally organiser Seyoum Teshome told Reuters he saw five people injured in the blast. “It was a grenade. Someone tried to hurl it to the stage where the prime minister was,” Seyoum said.
As well as promising economic reforms, Abiy stunned Ethiopians this month by saying he was ready to fully implement a peace deal with Eritrea that was signed in 2000 after a two-year war. For years, Ethiopia refused to implement the deal, saying it wanted more talks.
The stalemate led to a military build up and sporadic clashes on the border between Ethiopia and Eritrea, which seceded from Ethiopia in 1991 after a long war of independence.
Under the 2000 peace deal, Ethiopia is required to cede the border town of Badme to Eritrea. But war veterans in Badme and ethnic Tigrayans along the border oppose the peace initiative, with some town residents saying they will not leave the town.
Eritrea’s ambassador to Japan, Estifanos Afeworki, wrote on Twitter that his nation “strongly condemns the attempt to incite violence” in Addis Ababa, calling the rally a “demonstration for peace”.
Ethiopia’s ruling EPRDF is made up of parties representing the country’s four major ethnic groups. Abiy hails from the Oromo ethnic group, making up roughly a third of the population.
Oromos, along with the Amhara ethnic group, led street demonstrations against the government since 2015 that began as protests against a development plan around the capital and which opponents said the state was using to grab land. Protests broadened to cover other political and economic demands.
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</div>
In another of Abiy’s major policy shifts, the prime minister has said Ethiopia would open its state-run telecoms monopoly and state-owned Ethiopian Airlines to private domestic and foreign investment, both moves would loosen the state’s grip.

Zimbabwe’s President Mnangagwa, Ethiopian prime minister escape unhurt after blasts at rallies

Forget about the World Cup African Business News – the company that owns CNBC Africa and Forbes Africa – scored a satisfying hat trick in journalism at a glittering gathering of the finest financial journalists on the continent.
For the third year in-a-row ABN won the best newcomer award at the Sanlam Awards in South Africa.
This feat is a tribute to the academy of journalism that ABN is becoming; that idea of bringing up talent, mentoring the fire of youth and passing on skills. This has turned our proud operation here in Stella Street, Sandton, into a seed bed for future journalists.
This was a modus operandi I pioneered, as editor, at the birth of Forbes Africa way back in 2011 and I continue to this day at CNBC Africa. It always gives me a swell of pride to hear some of those I trained, training others. At this company we believe not in giving the hungry a fish, but teaching them how to fish. There is a lot of nonsense talked about inspiring the youth, but success boils down to the simple inculcation of hard work and effort.
The young hopefuls themselves, play a full part in pouring their youth and idealism into the career in journalism that lies at their feet – if they can apply themselves.
One factor that unites our young talent is that they had to make a concerted leap off the bottom rung of the ladder.
This tale is told by the way into the newsroom at ABN made by our hat trick of winners.  Our first winner, in 2016, was Ancillar Mangena a determined young woman who will win many more awards yet. She cut her teeth on a free community newspaper in Johannesburg writing about pot holes and school sports days. One morning I opened her newspaper and saw her many by-lines and wondered what wonders she could do on a magazine like Forbes Africa. I telephoned her and the next morning she came in, with a thumbed copy of the magazine in hand, and put her case. There followed years of intense journalism.
In 2017, it was the turn of Aviwe Mtila to accept the best newcomer award. In the last three years he has come a long way in more ways than one. His route to the ABN newsroom was overnight, on a bus, from East London, merely for an interview for an internship. Later that day, he went back overnight home. Within a year, Aviwe had got the hang of TV reporting and was soon dodging bricks at university riots and covering the chaos at the South Africa-Zimbabwe border. Mentorship and opportunity are his best friend.
This year it was Melitta Ngolonkulu who picked up the award with a trio of well executed and written stories on Ponzi schemes, the death of retail and the coffee industry. Her sacrifice was door knocking in search of scarce jobs for young journalists. For a year, she rang me every month, or so, from Port Elizabeth as part of her long and soul destroying search for a job. I eventually came to appreciate her tenacity and gave her an internship.
Three young African journalists to watch in a great African newsroom.

ABN: A seed bed for future journalists

PRETORIA (Reuters) &#8211; South Africa’s current account deficit widened more than expected in the first quarter to register its largest shortfall in two years as the trade balance swung to a deficit after a steep decline in exports, the central bank said on Thursday.
Investor sentiment in South Africa picked up after President Cyril Ramaphosa pledged to clean up poor governance that critics say beset the administration of his predecessor Jacob Zuma.
But a string of poor data, including the worst quarterly GDP contraction in nine years in the first quarter, has raised concerns over the recovery in the economy.
In response to news of the widening deficit, the rand extended its losses to the dollar, trading at 13.7575 at 0822 GMT from 13.6875.
The South African Reserve Bank said in its quarterly bulletin the current account deficit widened to 4.8 percent of gross domestic product in the first quarter from 2.9 percent in the fourth quarter of last year.
The deficit was the largest since the first quarter of 2016 and wider than the average forecast by economists surveyed by Reuters, who had expected it at 3.8 percent of GDP.
The quarterly trade balance swung to a deficit of 25 billion rand ($2 billion) from a surplus of 74 billion rand as the value of exports fell sharply, the central bank said.
“The value of merchandise exports was affected by both lower export volumes and lower rand prices as the external value of the rand strengthened,” the bank said.
($1 = 13.7177 rand)
Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia

What you need to know about the widening of South Africa’s Q1 current account deficit

JOHANNESBURG (Reuters) &#8211; South Africa’s economy is expected to recover from a poor start this year, rescued by stronger growth in the rest of the world, a Reuters poll found on Wednesday.
South African gross domestic product shrank 2.2 percent in the first quarter, led by a slowdown in agriculture and mining, after expanding 3.1 percent in the final three months of last year.
However, the survey of 24 economists taken in the past week forecast the economy would grow 1.7 percent this year. That was only 0.1 percentage point lower than predicted last month and up from a 1.3 percent forecast at the start of the year.
“The rest of the world is doing very, very well, so on the export side of things we will actually start doing better,” said Busisiwe Radebe, an economist at Nedbank. “That is why you see that lift that we are expecting.”
Last Friday, Fitch affirmed South Africa’s sub-investment- grade credit rating but noted signs of improvement in governance and prospects of a mild cyclical upturn.
However, it doubts new President Cyril Ramaphosa’s efforts will make a significant difference to the 1.7 percent growth it expects for this year.
South Africa needs growth levels multiple times faster than the forecast to make any meaningful reduction in unemployment. About a quarter of the labour force is currently out of work.
Employment prospects were made worse by a poor showing from South Africa’s mines in April. Output fell 4.3 percent year-on-year in the industry, which employs large swathes of the country’s largely unskilled labour force.
A United States-China trade conflict has escalated further and economists are wary of its effect on emerging market currencies.
Still, Miyelani Maluleke, an economist at Absa Capital,said domestic demand still had enough momentum to deliver GDP growth of 1.7 percent this year.
“There were some one-off factors that contributed to the first-quarter GDP contraction and the effect of those will likely wear off,” Maluleke said.
The South African Reserve Bank is expected to keep its repo rate unchanged at 6.5 percent until 2020. It cut its main interest rate by 50 basis points to 6.50 percent in March.
Inflation is projected to average 4.9 percent this year and 5.2 percent next.
Editing by Larry King

Here’s the projected growth rate for South Africa’s economy

So that is it then. There’ll be a summit on July 7, followed by a few last minute tweaks, then, the South African government will have fulfilled its obligations to the people for the next five years. For the country’s hard pressed mining houses the hard work will have only just begun.
The third version of the Mining Charter – a voluntary agreement between state and industry to promote black ownership – is a well-meaning document that seeks long stability by giving the majority a stake in one of Africa’s most lucrative industries. In a nutshell it promises to increase black ownership from 26% to 30%; give a slice of mining right ownership to communities living with the dust of the mines and the workers who dig them. All has to be complete in five years.
The Mining Charter plans to transform the image of the industry for so long seen as an exploitative colonial operation where poorly paid black workers risk their neck deep underground for the wealth that Johannesburg was built on. It will not only benefit the workers, but also ensure that 50% of all mining boards are black so change has a chance to trickle down from the top.
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In many ways this document is a compromise. It fights shy of the 51% black ownership beloved of many other independent African countries further north. It also concedes to the “once empowered, always empowered” principle that the mining companies have fought for. This means that previous transactions on the way to 26% will be recognised even if the black shareholder sells his stake back into white hands at the end of the lock in period.
Yet mining companies are going to find it very difficult and expensive to comply with all of the above in five years at a time when the mines are struggling against rising costs and falling productivity. The empowerment transactions will carry a heavy cost.
Foreign investors are likely to look at the new mining regulations with caution. Capital is coward and it will always go where there is least risk. Long-term stability and righting the wrongs of the past ring hollow to the investors of New York and Moscow who merely want to do business. They just want to do business as quickly and cheaply as they can. If they can’t navigate the mining codes of South Africa they are likely to look elsewhere. Spending on capital projects in South Africa have been falling for the last five years.
&nbsp;
&#8220;We hope the changes from the summit will not be too massive,&#8221; the new mining minister Gwede Mantashe said on the release of the new regulations in Pretoria.
&#8220;This amended mining charter will bring no new investment, nor jobs, to the industry in South Africa,&#8221; says Peter Major, a mining analyst with Cadiz Corporate Solutions in Cape Town.
&#8220;If this goes ahead South Africa risks becoming like struggling mining nations like the Democratic Republic of Congo, Zambia and Zimbabwe for the next 30 years.&#8221;
Food for thought ahead of the last minute changes on July 7.

Southern Africa

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Hit by extreme weather, Zimbabwe takes action

Renowned Photojournalist Goldblatt, who documented apartheid, dies aged 87

Rosewood fetches in excess of USD$17,000 per ton but Zambia is failing to benefit, here’s why

Zimbabwe’s President Mnangagwa, Ethiopian prime minister escape unhurt after blasts at rallies

ABN: A seed bed for future journalists

What you need to know about the widening of South Africa’s Q1 current account deficit

Here’s the projected growth rate for South Africa’s economy

Op:Ed: SA’s new Mining Charter too radical or good for investment?

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Southern Africa

For years, China shied away from global conflicts. Not anymore

African Development Bank grants $218 million loan to Namibia, what you need to know

6 books Barack Obama recommends reading this summer

Hello free carry? Goodbye mining projects, warns top South African mining boss

McKinsey is open to discuss interest repayments with Eskom

Watchdog finds that South Africans are paying too much for private healthcare, here’s why…

SA has just joined Africa’s $3 trillion free-trade club

Petrol price in South Africa set to rise, what motorists can expect to pay in July

Op-Ed: Angola has the potential to become a major exporter, this is what it needs to do

Hit by extreme weather, Zimbabwe takes action

Renowned Photojournalist Goldblatt, who documented apartheid, dies aged 87

Rosewood fetches in excess of USD$17,000 per ton but Zambia is failing to benefit, here’s why

Zimbabwe’s President Mnangagwa, Ethiopian prime minister escape unhurt after blasts at rallies

ABN: A seed bed for future journalists

What you need to know about the widening of South Africa’s Q1 current account deficit

Here’s the projected growth rate for South Africa’s economy

Op:Ed: SA’s new Mining Charter too radical or good for investment?

News Tips

Advertise With Us

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