By Karen Mwendera and Methil Renuka from Forbes Africa
From November 7-9, Africa Inc. will convene in South Africa’s Gauteng Province, the continent’s seventh largest economy, for the inaugural Africa Investment Forum (AIF).
An initiative of the African Development Bank (AfDB), it was announced in May in Johannesburg by AfDB President Akinwumi Adesina with Gauteng premier David Makhura.
“It will be the continent’s first-ever investment market place,” said Adesina, formerly Nigeria’s minister of agriculture.
“South Africa is open for business again, and as Gauteng, we are ready to host the forum on behalf of not only South Africa, but for Africa,” said Makhura, calling the forum “the Davos of Africa”.
A platform to close the investment gap, Adesina called it a game-changing initiative.
READ MORE: The Investment Hotspot
“It cannot be business as usual, it must be business unusual,” he said.
With Africa’s population set to be two billion by 2050, its development needs will require an estimated $600-$700 billion per annum. So accelerated development will be the forum’s focus.
“The forum will be 100% transactional. There will be no political speeches. The only thing allowed will be transactions, transactions and transactions,” said Adesina. In attendance in November will also be African heads of state who will be present as the CEOs of their countries.
In a sit-down interview with FORBES AFRICA, the AfDB president shared more about new investments, and the bread baskets and Silicon Valleys of Africa:
How will AIF take Afro-optimism and the African growth story further? 
African economies have been growing relatively well in a very difficult global environment. Despite the global economic downturn, in 2016, they grew at roughly 2.2%; in 2017, they grew at 3.6%. In 2018, they are projected to grow at 4.1%. And that’s still above the global average.
So Africa’s head is above the water. But it’s more than about keeping your head above the water that matters, it is about how fast you can swim. I think Africa needs to swim fast and needs a lot of oxygen to do that. And that means a lot of firepower in terms of capital to close the infrastructure gap. To be able to drive millions of people out of poverty, Africa should be growing at double digits.
To be able to do that we have to deal with the problem of lack of electricity, make sure there is a lot more investment to allow trade to happen. Africa could contribute a lot more be it is rail, ports, national highways or aviation. It has to change lives on the ground and quiet honestly when people ask if I am an Afro-optimist, I am a very proud African. Africa is a beautiful place and has tremendous potential so we shouldn’t always just talk about the potential because nobody eats potential. We have to unlock that potential. So that is what the Africa Investment Forum is all about. Be it oil, gas, minerals or agricultural commodities, Africa is awash with rich resources.
The question is how to turn them into real dividends with significant amounts of revenue that allows a better quality of life for the people. For that, you need to deal with the infrastructure deficit. We used to say it is about $15 billion. But that has changed. The AfDB recently released the African Economic Outlook report and the deficit is anywhere between $67 billion to $107 billion every year, so which means we must do a faster job pulling capital together because the rest of the world is not waiting.
How long will it take to close that gap? 
I think within the next decade. But it’s going to take a lot of work…
What about the youth dividend; what are the future industries? 
Africa is at the very top in fintech and mobile money… but as we look at new types of industries, we have to look at them in the context of the fourth industrial revolution… I get excited when I see the youth in Africa well-educated, they are all on social media, know how to use apps, which means they already have a leg up. So the key is how to re-tool them to operate in that kind of a new economy. The AfDB is doing that in three ways already. First is we signed up a joint program with Google and Microsoft to help develop young talented Africans in computer technology. We as a bank are already investing in technology parks in Cape Verde, Angola, Kenya, Senegal, Rwanda. These are technology parks where you can have the ICT industries emerge; almost like trying to create the Silicon Valleys of Africa.
When it comes to the new economy, you have to start early. We have a program trying to create 250 coding centers in Africa where you get people with computational knowledge to do coding services that can help in this new world we are moving towards. We are also investing in universities for science and technology across Africa to create this new scientific human capital…We need to give African youth the skills they need for the jobs of the future, not for the jobs of yesterday.
What then are the new wealth generators? 
If you look at where the money is going in Africa, it’s not actually going into oil, gas and natural resources. Most of the foreign direct investment (FDI) is going into the service industry, at least 64%, and also the financial services sector; maybe about 27% goes into the manufacturing sector. So these are the big sectors where you see a lot of FDI. But there are two sectors very important for me. 
One is ICT, because this is going to be the driver of the economy. It’s very important for countries to invest heavily in the ICT industry to give their countries the platforms they need in the knowledge economy.
The second is the food and agriculture industry. Africa has a lot of oil and gas, but nobody drinks oil, nobody smokes the gas. Food is the future. The size of the food and agriculture industry in Africa is going to be $1 trillion by 2030 in Africa. This is where the wealth is supposed to come from. Unfortunately, in Africa, we always walk past gold. Just imagine you are seeing gold, and you see it as dirt and don’t recognize it. That’s the power agriculture has… The food business is the biggest business. Agriculture is not a development sector, it’s not a social sector, it’s a wealth-creating sector. Agriculture is a business and Africa needs to fully unlock that potential. If you look at the amount of arable land left to feed nine billion people in the world by 2050, it is not in Europe, Latin America, Asia, or the US, it’s in Africa – 65% is right here. What Africa does with agriculture will determine the future of food for the world.
How will Africa’s billionaires and capitalists help achieve these goals? 
If you look at the high-networth-individuals in Africa, the majority of them make their money on this continent, and that’s already a strong signal. Aliko Dangote makes his money in Africa. 
So we are going to get them involved on the Africa Investment Forum because it is trying to send a message to the world that we have African businesses that are viable businesses making money and doing well on the continent; so putting capital to help them expand can help them become global multi-national companies…
And investing in African entrepreneurs? 
The issue for entrepreneurs is finding them, nurturing them and then putting the financial backing behind them to thrive. Africa has a lot of young people. Every day, I wake up I read about a young person doing so well. So the best investment that Africa can make is to put its capital at risk on behalf of its young people. Because when you see a young person walk into a financial institution, all you see is risk, risk, risk. We have to change that and try and see creativity, innovation and entrepreneurship. So that way we can put your money at risk to make them more creative, more innovative and unleash their entrepreneurship capacity. That is why at AfDB, we have a program helping to invest in the early-stage businesses of young people. Mark Zuckerberg and Bill Gates didn’t just get there, somebody had to believe in them.
We have a program set up with the European Union called Boost Africa to invest in young people. The other thing we are doing is helping unleash entrepreneurship in the food and agriculture industry. The bank has a program targeted at getting young graduates, medical doctors, engineers… who are all going to agriculture as a business. Last year, AfDB invested over $860 million in that program for about eight countries. Going forward, we expect to invest $1.5 billion dollars every year in that program for the next 10 years. 
I really think unless we change the mindset, the labor composition of the agricultural sector and create a new dynamic group of entrepreneurs in the food industry, we only will have old people left. Every university in Africa has to make entrepreneurship compulsory.

#AfricaInvestmentForum: A Marketplace Coming To Africa

By Francois Conradie – Head of Research at NKC African Economics
President Abdelaziz Bouteflika hosted Germany’s Chancellor Angela Merkel at his palace in Zeralda on Monday, September 17. The main point of the meeting was to discuss Germany’s repatriation of almost 4,000 Algerians who have been refused asylum (Germany considers Algeria a safe country and Algerians’ asylum applications are almost all turned down).
For an observer of Algerian politics, however, the meeting was most interesting because state television broadcast some video footage of it, which gives an idea of Mr Bouteflika’s health. His health is terrible.
The footage (which, it should be remembered, was carefully chosen to show him in the best light) shows the ailing president struggling to say a sentence and then sitting still in his wheelchair once he has said it, his one good hand immobile in the air, while Ms Merkel chats to his interpreter. It also shows Prime Minister Ahmed Ouyahia getting involved in the discussion from an armchair on the other side of the room.
From the footage we do not think Mr Bouteflika plays any significant role in the running of his country, which is relevant as the power structure around him prepares to put him forward as a candidate in next year’s presidential election.
The same power structure, in which a key player is Ahmed Gaid Salah (chief of staff of the army and deputy minister of defence), has been busy with a personnel shake-up in the army.
On the day of Ms Merkel’s visit, the high commander of land forces and commander of the air force were pushed into retirement; their sacking follows the sackings of a dozen generals in July and August. It was reported in the week that five of the generals were being investigated for abuse of power.
In other election-related news Nacer Boudiaf (son of the highly respected President Mohamed Boudiaf), who has expressed his intention to run for president next year and who has publicly blamed the deep state for his father’s assassination in 1992, has had his diplomatic passport taken away.
The army has been weakened and Mr Gaid Salah with it. This makes us think that the civilians around Mr Bouteflika, especially his brother Said and Mr Ouyahia, may not have been entirely convinced of Mr Gaid Salah’s loyalty and wanted to remove the risk of him using the army to prevent Mr Bouteflika’s re-election. But the army will have to play a key role in assuring his victory (as it has in past elections).
The political environment is deteriorating as the rapacious power structure delays improvements to governance in order to extend its time in government and as this network’s internal paranoia renders it more brittle and fragile.

OpEd: Algeria’s Bouteflika receives Merkel as army is shaken up

JOHANNESBURG (Reuters) &#8211; Shares in South Africa’s MTN rose 5 percent on Thursday, after Nigeria’s central bank said on Wednesday that it was reviewing information provided by the telecoms firm and four banks over a dispute on the repatriation of dividends.
“The statement suggests there are some talks going on and the market welcomed the less harsh tone by the Nigerian central bank,” said Ruhan Du Plessis, telecoms analyst at Avior Capital Markets.
“It is looking more likely that MTN will not have to pay back the for amount after all as the market feared. The market has welcomed the progress.”
The central bank on Aug. 29 said it had ordered MTN and the four banks to bring $8.1 billion back into Nigeria that it alleged the telecoms firm sent abroad in breach of foreign exchange regulations.
Reporting by Patricia Aruo; Editing by James Macharia

MTN shares rise to 5 percent after Nigeria reviews information to resolve dispute, what you need to know…

JOHANNESBURG (Reuters) &#8211; The Johannesburg Stock Exchange (JSE) wants to increase the minimum capital amount required for a primary listing and is considering stricter rules on secondary listings as it seeks to improve corporate governance.
Africa’s biggest securities exchange published its proposals in a public consultation paper circulated on Wednesday, aiming to ease investor concerns about listed companies following recent high-profile corporate scandals.
The paper proposes increasing the capital amount required for a primary listing from 500 million rand ($34 million), but did not suggest a new minimum level.
On secondary listings, the exchange could limit which jurisdictions would be suitable.
“The intention would be for the JSE to create a pre-approved list of foreign exchanges with regulatory regimes with which the JSE is comfortable,” JSE says in the consultation paper. “This approach is followed by peer global exchanges such as the Australian Stock Exchange and the Toronto Stock Exchange.”
The Johannesburg exchange is already crafting tighter disclosure rules for companies with listed debt instruments, announced in May, as part of efforts to improve corporate governance and increase transparency.
It has been hit by scandals including that of retail group Steinhoff International. Steinhoff’s shares crashed last December after the group revealed “accounting irregularities” and its CEO quit, prompting a JSE investigation into whether the group broke the exchange’s disclosure rules.
The consultation will conclude on Oct. 22.
“Depending on the nature of the comments received in response to this paper, it may be appropriate to convene a colloquium to discuss the improvement of governance,” JSE’s Chief Executive Nicky Newton-King said in a statement.
($1 = 14.6883 rand)
Reporting by Patricia Aruo; Editing by Susan Fenton

The JSE is considering stricter rules on listings, here’s why

Press Release
➢ WITH “ROOM2RUN,” AfDB LAUNCHES SECURITIZATION MARKET FOR MULTILATERAL 
DEVELOPMENT BANK SECTOR 
➢ TRANSACTION IS IN DIRECT RESPONSE TO G20 ACTION PLAN FOR MDB BALANCE SHEET OPTIMIZATION 
➢ AfDB COMMITS TO REINVEST FREED UP CAPITAL INTO NEW AFRICAN INFRASTRUCTURE 
LENDING, MAKING ROOM2RUN ONE OF THE LARGEST IMPACT INVESTMENTS EVER 
➢ TRANSACTION IS SUPPORTED BY NEW EUROPEAN UNION GUARANTEE TOOL (EUROPEAN FUND FOR SUSTAINABLE DEVELOPMENT)
OTTAWA, Canada, 18 September 2018 — The African Development Bank (AfDB), the European Commission, Mariner Investment Group, LLC (Mariner), Africa50, and Mizuho International plc today announce the pricing of Room2Run, a US $1 billion synthetic securitization corresponding to a portfolio of seasoned pan-African credit risk. Room2Run is the first-ever portfolio synthetic securitization between a Multi-Lateral Development Bank (MDB) and private sector investors, pioneering the use of securitization and credit risk transfer technology to a new and previously unexplored segment of the financial markets.
Structured as a synthetic securitization by Mizuho International, Room2Run transfers the mezzanine credit risk on a portfolio of approximately 50 loans from among the African Development Bank’s nonsovereign lending book, including power, transportation, financial sector, and manufacturing assets. The portfolio spans the African continent, with exposure to borrowers in North Africa, West Africa, Central Africa, East Africa, and Southern Africa. Mariner, the global alternative asset manager and a majority owned subsidiary of ORIX USA, is the lead investor in the transaction through its International Infrastructure Finance Company II fund (“IIFC II”). Africa50, the pan-African infrastructure investment platform, is investing alongside Mariner in the private sector tranche. Additional credit protection is being provided by the European Commission’s European Fund for Sustainable Development in the form of a senior mezzanine guarantee.
“Room2Run gives us fresh resources to invest in the projects Africans need most,” said Akinwumi Adesina, President of the African Development Bank Group. “Africa has the most promise, the greatest natural resources, and the world’s youngest population. But we also have the world’s most persistent infrastructure deficits. The African Development Bank has the strategy to address these infrastructure finance gaps—and Room2Run gives us the capacity to make it happen.”
Structured as an impact investment, Room2Run is designed to enable the African Development Bank to increase lending in support of its mission to spur sustainable economic development and social progress. In connection with Room2Run, AfDB has committed to redeploy the freed-up capital into renewable energy projects in Sub-Saharan Africa, including projects in low income and fragile countries.
“On the Impact scale, Room2Run is off the charts,” said Dr. Andrew Hohns, Lead Portfolio Manager and head of the Mariner Infrastructure Investment Management team. “Room2Run answers the call of the G20 for private sector participants to step in and facilitate development finance, providing a template for attracting significant private sector capital into urgently needed projects in developing economies.”
Raza Hasnani, Head of Infrastructure Investment at Africa50 commented, “Room2Run provides an innovative and commercially viable solution to the African Development Bank’s risk management and lending objectives, while paving the way for commercial investors to support and benefit from the growth of infrastructure on the continent. Africa50 is very pleased to participate in this landmark transaction, which is in line with our mandate to drive increased investment in infrastructure in Africa, and to create pathways for long-term institutional capital to flow into this space.”
Room2Run enjoys the support and participation of the European Commission with an investment from the European Fund for Sustainable Development, in the form of a senior mezzanine guarantee. “Only a few days after announcing our renewed Alliance with Africa for sustainable investments and jobs, I am very happy to announce that we are, together with the African Development Bank, launching Room2Run,” commented Neven Mimica, the European Commissioner for International Cooperation and Development. “This initiative is a perfect example of what we are doing to support investments in African low income and fragile countries through the External Investment Plan. Through Room2Run we provide 
an additional protection to investments in the field of renewable energy. Through our Guarantee, investments under Room2Run will translate into extending supply to many people currently without electricity whilst creating much-needed new jobs.”
Room2Run also directly responds to calls by the G20 that MDBs use their existing resources to full capacity, as articulated in the 2015 G20 MDB Action Plan to Optimize Balance Sheets, as well as calls for greater MDB efforts to crowd-in private investment. The G20 has called on MDBs to share risk in their non-sovereign operations with private investors, including through structured finance, mezzanine financing, credit guarantee programs, and hedging structures.
The Government of Canada has been a global leader in advocating for MDBs to use their existing resources more efficiently and to mobilize private capital for global development. The goal of the G20 MDB Action Plan to Optimize Balance Sheets is to catalyze significant new development financing from the MDBs throughout the real economy in key development regions. “Attracting more private capital into global development efforts is critical to building economies that work for more and more people around the world,” said Bill Morneau, Canada’s Minister of Finance, “that’s why Canada and our G20 partners have been calling on multilateral development banks to use their existing resources as efficiently as possible, and to look for new ways to attract more private capital. We are pleased to see the African Development Bank come forward with a transaction that directly responds to both of these objectives. Room2Run is an innovative solution to a long-standing challenge.”
Juan Carlos Martorell, Co-Head of Structured Solutions at Mizuho International, adds, “Compared to other synthetic securitizations, a major achievement of Room2Run has been to ensure that ratings agencies, and in particular S&amp;P, reflect the merits of the risk transfer into their rating assessments for multilateral development banks. AfDB’s leadership through this transaction has now set the stage for broader adoption of the instrument throughout the MDB community.”

AfDB, Mariner Investment Group, and Africa50 price landmark $1 billion impact securitization

JOHANNESBURG (Reuters) &#8211; South Africa’s headline consumer inflation slowed to 4.9 percent year-on-year in August from 5.1 percent in July, data from Statistics South Africa showed on Wednesday.
On a month-on-month basis, inflation contracted 0.1 percent in August after rising from 0.8 percent in July.
Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, fell to 4.2 percent year-on-year in August from 4.3 percent in July, while on a month-on-month basis was flat at 0.0 percent from 0.6 percent.
Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia

SA’s headline consumer inflation slowed to 4.9 percent year-on-year in August, what you need to know…

FREETOWN, Sierra Leone (Reuters) &#8211; Sierra Leone face the prospect of a ban from international competition by FIFA after the country’s Anti-Corruption Commission (ACC) followed through on a threat to raid the offices of its football association on Tuesday.
The ACC had threatened the move last week after sending a letter to Sierra Leone Football Association (SLFA) president Isha Johansen, telling her to step down over allegations of match-fixing involving the national team.
Johansen and her secretary general Chris Kamara have been banned from the SLFA offices by ACC officials, but the remainder of the staff have been allowed to continue their work.
Both deny they have done anything wrong.
“Staff at the SLFA offices have been warned not to have any business with Johansen and Kamara and not to allow them into the secretariat,” ACC official Alhassan Kargbo told BBC Sport.
“Anyone who goes against the orders will face the law.”
FIFA said earlier this week that they were monitoring the situation in the country and are likely to view the forced removal of Johansen as government interference in football affairs, especially as they are conducting their own investigation into the match-fixing allegations.
FIFA are looking at matches as far back as a World Cup qualifier against South Africa in 2008, while they are also chairing negotiations between the Sierra Leone sports ministry, SLFA officials and various other stakeholders over delays to football association elections.
The delays have been caused by a number of factors, including a resistance to integrity checks that FIFA wants carried out on those who intend to stand for positions.
Johansen, who intends to stand for re-election, was briefly detained in 2016 over alleged graft but was released without charge and also survived being ousted by the SLFA executive committee last year as FIFA refused to recognise the move.
She claims to have received numerous death threats in recent years but is determined to stand again for the post of president when elections eventually take place.
“I have been called all kinds of vulgar names &#8230; received so many death threats &#8230; but I haven’t entertained such abuse,” Johansen told Reuters last year.
“I want to be a pioneer for good governance, gender equality and inclusivity in football, to make a difference in a man’s game.”
Reporting by Nick Said; Editing by Hugh Lawson

Why Sierra Leone could be banned by FIFA from international competition

<div id="attachment_318536" style="width: 810px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-318536" class="wp-image-318536 size-full" src="http://cnbc.africa/wp-content/uploads/2018/09/800px-Silicon_Valley_facing_southward_towards_Downtown_San_Jose_20141.jpg" alt="" width="800" height="580" />Picture by Coolcaesar &#8211; Own work, CC BY-SA 3.0 &#8211; Wikimedia Commons</div>
Does anyone know if Silicon Valley costs us more than it gains us?
By Nnamdi Oranye
Does having Silicon Valley-based companies, like Uber or Amazon or Google, functioning and conducting business in our country cost us? Does anyone know? Or are we just guessing and assuming that the jobs created satisfactorily offset whatever it might cost?
Think about it. When you use an Uber your credit card is deducted instantly after your ride, and that money goes straight to the bank account of a Silicon Valley company far, far away from our borders. The driver gets paid out his percentage, fair enough, and that money goes into their account (I wonder how many charges the banks put on that process) but the bulk of it remains in Silicon Valley, does it not?
Or what happens when you buy an app from Google for your phone? Or from Apple? Or you buy a book on Amazon? How much of that money enriches our economies? Or is all this ultimately making us a mere conduit to enrich Silicon Valley?
<h4>Has anyone done a proper cost analysis?</h4>
I don’t think anyone really has done a proper and thoughtful cost analysis &#8211; at least not over the long term. I’m sure our governments are certainly thinking about these things, but I also get the general sense that we’re not having the right conversations with the right people at the right time. We’re certainly, as the public, not getting a sense of how this is all working.
How much money is actually leaving our African countries through these innovations &#8211; and through the continent as a whole &#8211; and ending up in Uber’s and Amazon’s and Facebook’s bank accounts, never to make its way back here? And can we compare that against the jobs created and the families empowered and come to the conclusion that it’s a good thing?
I’m not saying it isn’t a good thing. I’ve used Uber many times, and the discussions I’ve had with practically every Uber driver has been a positive one. They were retrenched but can now be their own boss. They are earning well and can work their own hours. Some never had work at all until now.
While I know there are many arguments around how drivers feel manipulated or used by Uber, and of course there are the dangers of violence, there are an equal amount of stories saying it’s been a good thing for them. Innovations that disrupt will always come with a mass of differing opinions, and it’s only over time that the truth will emerge. Uber, by way of an example, is in big trouble right now, and it’s “move fast and break things” attitude reflecting Silicon Valley is one that we all need to deal with.
<h4>Excited to see African-based competition in the market</h4>
So I’m neither for nor against Uber itself, although I think as an innovation it has done brilliantly and I am excited to see the African-based competition that is rising in that market. The taxi industry has needed a disruptor to get it to also deal with its own issues &#8211; some of which are still not being dealt with.
Perhaps it’s easier to see how the likes of Uber creates jobs. But what about Facebook? What about Google? How are they creating work for the previously unemployed?
We need to have this conversation about whether it costs us to have Silicon Valley functioning on our continent here, or whether it benefits us. And this conversation must be a Pan-African one. The question is whether the number of jobs being created on the continent; the amount of revenue being invested; and what profitability looks like for them and for us, is mutually beneficial.
We would need to look at the long-term and the long tail. An Uber driver might now have work that he might not have had before, which makes him now able to put his kids through school and educate them and build a life for his family. That’s all a good thing.
<h4>Weigh that against the revenue leaving the continent</h4>
And is that long-term change something that makes us be happy with the amount of revenue leaving our continent? Or could we have done that in other ways? And is this all sustainable in the long term? Decisions for people here are being made by a bunch of executives in California. Is that a good idea or not? Is Uber simply using our tax money and our roads to run its business practically cost-free? At what point are they contributing in other ways?
Of course, one might accuse me of siding with the likes of Multichoice or Vodacom and MTN, who have both publicly complained about how these overseas innovations are taking advantage of their infrastructure but not paying a cent for it. Multichoice feels misled by the like of Netflix (but surely they saw it coming?) and MTN and Vodacom feel that Whatsapp is getting a free ride.
There is some sense in their arguments, but not complete sense. They have actually each had a long time to see these days coming and they could have developed their own products long before Silicon Valley came here. That’s for another discussion. But all I’m saying here is that we need to have a good, long, even public discussion with Silicon Valley about this &#8211; much like America is having with the big boys now.
<h4>Silicon Valley companies think Pan-African</h4>
It’s not good enough to just have a per-country strategy, because clearly, Silicon Valley companies don’t see it that way. They think Pan-African, and so should we. And the conversation needs to include central banks and regulatory bodies, politicians and even our own innovators. Because, ultimately, I still believe that Africans need to have space and support to create African innovations for Africa’s people. They need to be involved in how innovations are implemented or localised on our continent. They need to benefit as well and be a part of the process.
If Silicon Valley is good for us, then great; but if it isn’t… well, we better know that now before it’s too late. Because this can just be another colonialism in disguise if we’re not careful.

Op-Ed: Who is Monitoring the Economic Impact of Silicon Valley in Africa?

HARARE (Reuters) &#8211; Zimbabwean opposition lawmakers walked out of President Emmerson Mnangagwa’s state of the nation address to parliament on Tuesday, signalling their lingering bitterness after losing a disputed July 30 presidential and parliamentary election.
Members of Parliament from the Movement for Democratic Change (MDC) that is led by Nelson Chamisa heckled Mnangagwa when he started reading his speech before filing out.
Chamisa &#8211; who is not a member of parliament and lost a court challenge to Mnangagwa’s win last month &#8211; maintains that he was cheated of victory by the electoral board and says the 76-year-old president lack legitimacy.
After leaving parliament, the MDC lawmakers broke into song denouncing the ruling ZANU-PF party. “As the MDC we cannot sit there and be addressed by a person who does not even respect the rule of law,” MDC national chairperson Tabitha Khumalo told Reuters.
ZANU-PF’s chief whip in parliament Pupurai Togarepi described the lawmakers’ conduct as unfortunate, adding: “We hope that over time they will come to their senses, it’s not about grandstanding but building the country together.”
Mnangagwa, who has previously called for unity among political parties to help rebuild the shattered economy, said the elections were now in the past.
“The election period is decisively behind us. It is now time for us as members of parliament and political leaders to exert our efforts towards delivering promises we made to the electorate,” Mnangagwa said in his speech.
The president promised to bring a series of bills to parliament, including on giving more power to Zimbabwe’s 10 regions, revamping the process of registering companies and creating a one-stop investment agency.
A mining amendment bill passed by parliament in June, which removed clauses requiring foreign mines to list their shares on the local stock market, would be brought back to the assembly to fix “inadequacies” and provide for online registration of mining rights and titles.
Mnangagwa, who came to power in November after Robert Mugabe was removed in a coup, faces the huge task of ending Zimbabwe’s international pariah status and fixing an economy afflicted by high unemployment and foreign currency shortages.
He told lawmakers that his government had negotiated $500 million in foreign credit facilities, some of which would be disbursed to companies this week.
Mnangagwa, however, said the country would not immediately re-introduce its own currency that was dumped in 2009 after it was made worthless by hyperinflation of 500 billion percent.
Editing by James Macharia and David Stamp

Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

JOHANNESBURG (Reuters) &#8211; South Africa’s highest court on Tuesday allowed the private use of marijuana, upholding a lower court’s ruling that found the criminalisation of cannabis was unconstitutional.
Activists who include members of the Rastafarian movement and traditional healers greeted the ruling with loud applause. They have held marches over the years to demand that the law be changed to allow people to smoke ‘weed’, which is called ‘dagga’ in South Africa.
Several government departments, including the health and justice ministries, oppose its legalisation and warn of harmful effects.
But in a unanimous judgment read by Deputy Chief Justice Raymond Zondo, the Constitutional Court decriminalised home consumption, saying “the use of cannabis must be for the personal consumption of the adult”. The ruling also approved growing marijuana for personal consumption.
Rastafarian Garreth Prince and former Dagga Party leader Jeremy Acton brought the case asking the High Court to allow for the home use of marijuana.
Jules Stobbs and Myrtle Clarke‚ known as the “Dagga Couple”, joined the case, and asked the court to strike down laws banning the use‚ cultivation and sale of marijuana.
He added that it would not be a criminal offence for an adult person to use or be in possession of cannabis in private for their personal consumption in private.
However, the judgement did not specify the amount that can be used by an adult in private use.
“This must be determined by parliament,” he said.
Parliament is now expected to amend the laws that criminalise cannabis following the court ruling.
Activists had argued that the criminalisation of dagga use and possession is a violation of the right to equality, dignity, and freedom of religion.
There was no immediate comment from the departments over the country’s top court ruling on Tuesday.
Reporting by James Macharia; Editing by Matthew Mpoke Bigg

South Africa’s ConCourt decriminalises the private use of marijuana, here’s why…

JOHANNESBURG (Reuters) &#8211; South Africa’s President Cyril Ramaphosa said on Monday there would be no mass layoffs of public sector workers as his government considers various ways to pull the economy out of a recession that has rattled the rand and investor confidence.
The economy slipped into recession in the second quarter for the first time since 2009, data showed in August, a stinging blow to Ramaphosa’s pledge to revive the economy and reduce record-high unemployment after a decade of stagnation.
In June, the National Treasury said it was considering layoffs and early retirement packages for staff in the public sector to avoid breaking its pledge to cut spending after unions clinched above-inflation wage increases.
“The mass retrenchment of public sector workers is not under consideration,” Ramaphosa said at trade union federation Cosatu’s electoral conference in Johannesburg.
“The context of slow economic growth and weak revenue collection means that expenditure on other critical things will suffer &#8230; but we need to address this in a way that does not put the livelihoods of public sector workers at risk.”
The contraction in the economy sent the rand tumbling and triggered warnings from ratings agency Moody’s that the country would struggle to increase revenue and deliver on a promise to cut spending and public debt.
South Africa needs faster economic growth to reduce its 27 percent unemployment rate and alleviate poverty and inequality, both of which stoke instability.
The ruling African National Congress has made repeated pledges to improve the economy. Unemployment is a key concern for voters ahead of elections next year.
Reporting by Mfuneko Toyana; Editing by James Macharia

Is South Africa planning mass layoffs in the public sector to deal with recession? Here’s what president Ramaphosa has to say…

Naspers Media Release
Naspers to separately list and unbundle its Video Entertainment business as MultiChoice Group on the JSE Creates an empowered, standalone Africa-wide entertainment business 
Unlocks value for Naspers shareholders Increases Phuthuma Nathi shareholding in MultiChoice South Africa by 25%.
Naspers today announced its intention to list its Video Entertainment business separately on the Johannesburg Stock Exchange (JSE) and simultaneously to unbundle the shares in this business to its shareholders. The new company will be named MultiChoice Group and will include MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto.
Commenting on the transaction, Naspers CEO Bob van Dijk said: “This marks a significant step for the Naspers Group as we continue our evolution into a global consumer internet company. Listing MultiChoice Group via an unbundling aims to unlock value for Naspers shareholders and at the same time create an empowered, top 40 JSE-listed African entertainment company.”
The transaction is expected to create further value for Phuthuma Nathi (PN) broad-based black economic empowerment (BBBEE) shareholders who have participated in one of the most successful BBBEE schemes in South Africa, already creating around ZAR12 billion in value for BBBEE shareholders. In recognition of PN’s support over the years, and to underline its commitment to transformation in South Africa, Naspers intends to allocate – for no consideration – an additional 5% stake in MultiChoice South Africa to PN shareholders, prior to the unbundling, to increase MultiChoice Group’s BBBEE shareholding. This means that the PN shareholders’ interest in MCSA and its dividend flows is expected to increase by 25%.
The additional 5% stake in MultiChoice South Africa to PN shareholders is designed to reinforce MultiChoice Group’s commitment to broad-based black economic empowerment, increase PN’s upside in future value creation, and ensure continued compliance with regulatory requirements post unbundling.
Further, post-listing and subject to obtaining the necessary PN board and shareholder approvals, it is the ambition of MultiChoice Group to enable 25% of the PN shareholders’ original shareholding (i.e. before the allocation of the additional 5%) to be exchanged for MultiChoice Group shares that will be freely tradeable, thereby unlocking incremental value for PN shareholders.
Video Entertainment CEO Imtiaz Patel said: “Listing and unbundling MultiChoice Group is intended to create a leading entertainment business listed on the JSE that is profitable and cash generative. We offer an unmatched selection of local and original content, as well as a world-class sports offering. Our leadership team is diverse, experienced and well-positioned to take the company forward. I am particularly pleased that this transaction will further enhance the value for Phuthuma Nathi shareholders.”
Naspers’ Video Entertainment business is one of the fastest growing pay-TV operators globally and its multi-platform business entertains 13.5 million households across Africa. In the last financial year, the business added 1.5 million subscribers, and generated revenue of ZAR47.1 billion and trading profit of ZAR6.1 billion. It employs more than 9,000 people in Africa and indirectly creates economic prosperity for over 20,000 more who are employed by its various partners and suppliers across the continent.
MultiChoice Group is expected to be unbundled with limited leverage, providing it with the necessary financial flexibility to pursue growth opportunities in African video entertainment. Africa is one of the fastest-growing continents by both GDP and population, its middle-class is rapidly expanding and the penetration of video entertainment is still relatively low. The business is also positioning itself for the future by offering online streaming services, including Showmax and DStv Now.
Looking ahead, Patel said: “There are significant growth opportunities for MultiChoice Group in Africa. The combination of MultiChoice’s reach, Showmax and DStv Now’s cutting-edge internet television service, alongside Irdeto’s 360 security suite will provide a unique offering.” van Dijk concluded: “The Video Entertainment business is an African success story. This unbundling and listing is expected to deliver value to the South African economy as well as to Naspers and Phuthuma Nathi shareholders. Naspers will continue to invest in South Africa through our interests in ecommerce businesses such as Takealot, Mr D Food, PayU, OLX, Property24, and AutoTrader SA, among others.”
Naspers will retain its primary listing on the JSE as well as its interests in Media24. MultiChoice Group is anticipated to list on the JSE and simultaneously unbundle in the first half of 2019, subject to the approval of the requisite regulatory authorities.
For more information, and to watch an interview with Naspers CEO Bob van Dijk and Video 
Entertainment CEO Imtiaz Patel on today’s announcement please visit: 
http://enhancingaccess.com/

Naspers to unbundle Multichoice

ABUJA (Reuters) &#8211; Nigeria has accused HSBC of laundering money for one of the country’s former rulers, hitting back at a research note by the global bank that suggested a second term for President Muhammadu Buhari risked prolonging economic stagnation.
HSBC declined to comment on the allegation late on Saturday by the Nigerian presidency that the bank had laundered more than $100 million for former military dictator Sani Abacha.
Buhari plans to seek a second term in office at an election next February, which has created a rift within his ruling party, as some of his supporters quit to join the opposition.
An HSBC research note dated July 18 said a second Buhari term “raises the risk of limited economic progress and further fiscal deterioration, prolonging the stagnation of his first term, particularly if there is no move towards completing reform of the exchange rate system or fiscal adjustments that diversify government revenues away from oil.”
In response, the presidency said what had “killed” the economy in the past was “unbridled looting of state resources by leaders, the type which was actively supported by HSBC.”
The presidency said the bank had “no moral right whatsoever” to assert that another Buhari term risked limited economic progress.
Abacha stole as much as $5 billion of public money during his five years running Africa’s top oil producing country from 1993 until his death in 1998, according to the corruption watchdog Transparency International.
In 2016, Buhari urged the World Bank to assist in the repatriation of $320 million stolen by the former military leader, which is being held by authorities in Switzerland.
Growth in Nigeria has returned after the economy entered into its worst recession in a quarter of century in 2016. However, the economy is still fragile, with high unemployment and weak infrastructure.
Inflation started to rise in August, the statistics office said after slowing for 18 months.
Buhari took office in 2015 after an election campaign largely fought on his vow to fight corruption, but his detractors have accused him of failing to investigate allies accused of wrongdoing.
The presidency said on Saturday the entities that aided corruption were under investigation for various offences.
Two former allies of Buhari now in opposition, including Senate leader Bukola Saraki, and several others have declared their intention to challenge the president in next year’s vote.
Additional reporting and writing by Chijioke Ohuocha, and Lawrence White in London, Editing by William Maclean

Why Nigeria is hitting back at HSBC, accuses bank of laundering money

JOHANNESBURG (Reuters) &#8211; South African union Solidarity said it will sign a three-year gold sector wage deal with AngloGold Ashanti on Monday along with Association of Mineworkers and Construction Union (AMCU), without providing further details of the agreement.
Gold producers have argued that above-inflation wage hikes have been adding to the cost burden in the bullion industry, which has been hit by depressed prices and labour unrest.
Solidarity, AMCU and UASA have previously declared a dispute with the remaining firms involved in the negotiations, Harmony Gold, Sibanye-Stillwater and smaller producer Village Main Reef, after talks deadlocked. [nL8N1VK5N8]
The National Union of Mineworkers (NUM), the largest union in the bullion sector and also involved in negotiations, declared a dispute last month with Minerals Council, which is representing gold producers in the wage talks. [nL8N1VC3XL]
When unions declare a dispute, they usually have to go through conciliation talks with the companies concerned mediated by an authority such as the Commission for Conciliation, Mediation and Arbitration (CCMA).
Negotiations with the remaining companies under the auspices of the CCMA will continue on Thursday, Solidarity added.
Reporting by Tanisha Heiberg; Editing by Sunil Nair and Sherry Jacob-Phillips

What you need to know about SA unions’ three-year wage deal with AngloGold Ashanti 

WASHINGTON (Reuters) &#8211; The United States is concerned that increased currency swap agreements between China and African nations will reduce visibility into financial transactions and will make it harder to prevent money laundering, a senior U.S. sanctions official said on Thursday.
Marshall Billingslea, the U.S. Treasury Department’s assistant secretary for terrorist financing, told a congressional hearing that while there was greater interest in using the yuan, most African countries still found it necessary to ultimately clear trade in U.S. dollars.
He was responding to questions by Republican Representative Chris Smith, who cited a $2.5 billion currency swap agreement between China and Nigeria to facilitate trade between the two countries, and a meeting of African finance leaders in June that sought to discuss using China’s yuan as a reserve currency for the region.
Nigeria is the third African nation to agree a currency swap deal with China.
“You are very much onto something of great concern to us as well,” Billingslea replied, referring to increased currency swap agreements between China and African governments.
“That said, there remains a great desire among most of the countries in Africa to maintain correspondent banking relationships with U.S. banks. At the end of the day they still are finding it necessary to ultimately clear trade in U.S. dollars,” he said.
He said maintaining those correspondent banking ties was “our best line of defense to ensure we maintain not just a degree of transparency and visibility into the transactions in Africa but &#8230; further to ensure that anti-money laundering standards are being applied.”
Reporting by Lesley Wroughton; Editing by Leslie Adler

Why U.S is concerned about increased currency swap agreements between African nations and China

WASHINGTON (Reuters) &#8211; The U.S. government will not lift sanctions against Zimbabwe until the new government of President Emmerson Mnangagwa demonstrates it is “changing its ways,” a senior U.S. economic official told a congressional panel on Thursday.
Manisha Singh, the U.S. Assistant Secretary of State for Economic and Business Affairs, told a House of Representatives hearing there were 141 entities and individuals in Zimbabwe, including Mnangagwa and former president Robert Mugabe, that are currently under U.S. sanctions.
“Our pressure on Zimbabwe remains in place. We are trying to use this pressure to leverage political and economic reforms, human rights observations,” Singh said.
“We want to see fundamental changes in Zimbabwe and only then will we resume normal relations with them,” she added.
Mnangagwa was sworn in as Zimbabwe’s new president on Aug. 26 after the Constitutional Court confirmed his July 30 election victory, dismissing a challenge by opposition leader Nelson Chamisa.
Mnangagwa has called for the lifting of U.S. sanctions against officials from the ZANU-PF ruling party, top military figures and some government-owned firms, which were imposed during Mugabe’s rule for it called violations of human rights and democracy.
The EU lifted most of its sanctions in 2014, but has maintained those against Mugabe and his wife Grace.
The July ballot was touted as a crucial step toward shedding the pariah reputation that Zimbabwe gained under Mugabe as well as securing international donor funding.
Rep. Karen Bass, a Democrat from California, said Zimbabwe was “trying to reach out to us now and I want to know where we are with that.”
“We are always open to conversations. We are open to a demonstration from the government that it is changing its ways, that it is observing human rights,” Singh added.
Reporting by Lesley Wroughton, editing by G Crosse

U.S. will not lift sanctions against Zimbabwe until the African country does this…

JOHANNESBURG (Reuters) &#8211; Moody’s stable outlook on South Africa’s credit rating means there is little chance of a downgrade this year, the ratings agency said on Thursday, but warned that a commitment to fiscal consolidation would be key to maintaining its rating.
The agency, the last of the top three ratings firms to have Pretoria’s long-term foreign-currency debt in investment grade, however said a recovery in South Africa’s economic growth will be slow and less than the Treasury’s estimate of 1.5 percent for 2018 after a surprise contraction in the first two quarters.
South Africa entered recession for the first time since 2009, data showed last week, undermining President Cyril Ramaphosa’s efforts to revive the economy after years of stagnation under former president Jacob Zuma.
Lucie Villa, Moody’s lead analyst for South Africa, said the rising share of government revenue that South Africa spends on debt servicing was a concern for Moody’s, but that she expected some fiscal adjustment in the October budget statement.
“Growth is going to be below 1 percent, to what extent it’s difficult to say,” Villa told the agency’s annual Sub-Saharan Africa conference, referring to this calendar year.
“South Africa has a stable outlook, &#8230; there is little chance of a rating action,” Villa said, in response to a question about whether Moody’s would downgrade the country’s sovereign rating at a review scheduled for next month.
Moody’s has previously said the slide into recession would exacerbate fiscal and monetary challenges. It said weaker-than-expected economic data was “credit negative”.
Villa said two ratings strengths for South Africa was that its government debt had a long maturity and that relatively little of the debt was foreign-currency denominated.
“It’s very important what announcement will be made (at the October budget statement), &#8230; what we think is going to be critical is the wage bill, tax revenues,” she said.
Villa said plans by the ruling African National Congress (ANC) to nationalise the Reserve Bank were not “rating-relevant,” assuming that the bank’s mandate would not be affected.
The central bank has said any change of ownership would not affect its mandate or independence.
Africa’s most developed economy needs faster economic growth if it is to reduce high unemployment &#8211; currently at 27 percent &#8211; and alleviate poverty, analysts say.
Unemployment is a hot-button issue ahead of national elections in 2019, and the ANC has made repeated pledges that things will improve.
($1 = 14.8287 rand)
Writing by James Macharia

Special Report

#AfricaInvestmentForum: A Marketplace Coming To Africa

OpEd: Algeria’s Bouteflika receives Merkel as army is shaken up

MTN shares rise to 5 percent after Nigeria reviews information to resolve dispute, what you need to know…

The JSE is considering stricter rules on listings, here’s why

AfDB, Mariner Investment Group, and Africa50 price landmark $1 billion impact securitization

SA’s headline consumer inflation slowed to 4.9 percent year-on-year in August, what you need to know…

Why Sierra Leone could be banned by FIFA from international competition

Op-Ed: Who is Monitoring the Economic Impact of Silicon Valley in Africa?

Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

South Africa’s ConCourt decriminalises the private use of marijuana, here’s why…

Is South Africa planning mass layoffs in the public sector to deal with recession? Here’s what president Ramaphosa has to say…

Naspers to unbundle Multichoice

Why Nigeria is hitting back at HSBC, accuses bank of laundering money

What you need to know about SA unions’ three-year wage deal with AngloGold Ashanti

Why U.S is concerned about increased currency swap agreements between African nations and China

U.S. will not lift sanctions against Zimbabwe until the African country does this…

What are the chances of a downgrade for South Africa’s credit rating? Here’s what Moody’s has to say…

News Tips

Advertise With Us

Special Report

#AfricaInvestmentForum: A Marketplace Coming To Africa

OpEd: Algeria’s Bouteflika receives Merkel as army is shaken up

MTN shares rise to 5 percent after Nigeria reviews information to resolve dispute, what you need to know…

The JSE is considering stricter rules on listings, here’s why

AfDB, Mariner Investment Group, and Africa50 price landmark $1 billion impact securitization

SA’s headline consumer inflation slowed to 4.9 percent year-on-year in August, what you need to know…

Why Sierra Leone could be banned by FIFA from international competition

Op-Ed: Who is Monitoring the Economic Impact of Silicon Valley in Africa?

Here’s why Zimbabwean opposition lawmakers walked out of President Mnangagwa’s #SONA

South Africa’s ConCourt decriminalises the private use of marijuana, here’s why…

Is South Africa planning mass layoffs in the public sector to deal with recession? Here’s what president Ramaphosa has to say…

Naspers to unbundle Multichoice

Why Nigeria is hitting back at HSBC, accuses bank of laundering money

What you need to know about SA unions’ three-year wage deal with AngloGold Ashanti

Why U.S is concerned about increased currency swap agreements between African nations and China

U.S. will not lift sanctions against Zimbabwe until the African country does this…

What are the chances of a downgrade for South Africa’s credit rating? Here’s what Moody’s has to say…

News Tips

Advertise With Us

Newsletters