Essential The Africa the Media Doesn't Tell You About

[Sinnerman]

We rejected that deal again

By Franklin Alli

The Manufacturers Association of Nigeria (MAN), yesterday, hailed the Federal Government's decision not to join other West African States to endorse the Economic Partnership Agreement (EPA) between West Africa and the European Union, as this action would prevent the country from losing N208 trillion ($1.3 trillion) revenue.



The Economic Partnership Agreement is a reciprocal preferential trade Agreement being promoted by the European Union to create a Free Trade Area (FTA) between the EU and the African, Caribbean and pacific Group of States [ACP] through six regional economic communities into which the ACP is divided'



Signing the EPA in its present form, would cost Nigeria alone $1.3 trillion revenue losses from finished goods coming from the European Union while the negative effects EPA would have on local manufacturing range from shutdown of local industries and job losses due to unfair competition.



MAN, in a statement signed by its director general Remi Ogunmefun, said Our commendation is sequel to the briefing to stakeholders by the Honorable Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, July 24, 201'4, where he reiterated the determination of Nigeria to continue to pursue the implementation of the Nigeria Industrial Revolution Plan (NlRP), local content policies, and transformation in Agriculture sector amongst others.



The Minister was categorical that based on the mission of Government in these areas, it is inconceivable that the Federal Government will ignore national interest, particularly genuine concerns expressed by stakeholders in the country and go ahead to sign the Economic Partnership Agreement.




It will be recalled that the Summit of ECOWAS Heads of State and Government at their meeting in Accra, Ghana on July I0, 2014 approved the EPA and instructed the regional chief Negotiators to take steps to start the process of signing and implementing the agreement.



Nigeria, at various stages in the EPA negotiation process, had voiced strong opposition to the agreement and raised concerns that the Agreement could only lead to deindustrialisation in West Africa, with serious economic and employment consequences for Nigeria because of her 60 percent share of the regional market and Gross Domestic Product (77 per cent).



MAN opposition is also premised on the fact that from all parameters, West African States, including Nigeria are not at the same level of economic development with any European country to warrant the conclusion of a reciprocal trade relationship espoused in the trade agreement with EU.



MAN is therefore advising that notwithstanding the status of EPA and ECOWAS Common External Tariff (CET), Nigeria should continue to insist on the incorporation of the 196 tariff lines which the country had earlier recommended for reclassification in the CET regime in addition to the urgent need to design appropriate instruments that will take care of the 241tariff lines that currently enjoy various levels of levies as protective measures in Nigeria'



Earlier, Chief Kola Jamodu, President of MAN, noted "no country can develop without protecting its industries; he added that Nigeria stands the risk of having its market flooded by European goods with resultant negative effect on our industries and economy" if the EPA is approved in its present form.

http://allafrica.com/stories/201408060717.html

 

[TMNT4000]

We rejected that deal again



http://allafrica.com/stories/201408060717.html

 

[TommyHilltrigga]

We rejected that deal again



http://allafrica.com/stories/201408060717.html

Nigeria Throwing its Weight around on the world stage, i like this, don't miss with the Giant of Africa

Did you know that only 11% of African exports and Imports are with other african nations, i can see why Nigeria is rejecting this

 

[TommyHilltrigga]

August 5, 2014 |Author: ODINAKA ANUDU

Manufacturers have defied heightened insecurity across the country to invest a whopping N2 trillion in the economy in the whole of 2013. The amount represents 101 percent of N996.08 billion worth of investments in 2012, data from the Manufacturers Association of Nigeria (MAN) has shown.

MAN attributes these major internal and external investments to improved sales made possible by innovation and better packaging, especially in the food and beverage sector (notably beer and food processing firms).

Analysts say this is an indication that the Nigerian economy is becoming more diversified, even as manufacturers in the country are expanding and looking outwards to other markets across Africa, Europe and the Americas. Additionally, these investments created 1.584 million jobs by the end of 2013.

Two other key factors responsible for the increased investments are better inventory management across sectors and an increase in the number of new entrants, according to the data from MAN.

“This was in anticipation of the investment climate and the expectation of investors in the areas which government seems to direct attention, particularly in the areas of automotive and heavy industrial concerns,” says MAN.

manufacturing-plant

Investments in assets, such as land and buildings, within the year totalled N332.15 billion. This implies that manufacturers made investments worth N95.99 billion in the first half (H1 2013) and N236.17 billion in the second half of the year (H2 2013). Similarly, investments in plants and machines reached a total of N843.44 billion by end of the year as H1 2013 injections reached N159 billion, while injections in H2 2013 were worth N684.44 billion.

Furthermore, manufacturers invested N83.054 billion in H1 2013 in furniture and equipment, as well as N161.398 billion in H2 2013. Hence, total investments on furniture and equipment by year end were N244.45 billion.

Also, a total of N283 billion worth of investments were made in motor vehicles within the year as H1 2013 injections totalled N126.11 billion while they were worth N156.88 billion in H2 2013.

Similarly, the value of total assets under construction was N297.72 billion by the end of the year. This implies that the value of investments in assets under construction in H1 2013 was N102.18 billion, while that for H2 2013 totalled N195.54 billion.

On sectoral basis, total investments by the 10 sectors of MAN in H1 2013 were worth N566.33 billion, while those of H2 2013 were N1.43 trillion. Players in the food, beverage and tobacco sector made total investments of N82.47 billion by the end of 2013, while those in the troubled textile, apparel and footwear sector made investments of N5.29 billion. This indicates that with more support and control of influx from Asia, the sector will attract more investors.

Similarly, wood and wood products investments totalled N363.63 million. This is an indication that the sector is still under-exploited, say analysts.

Investments by players in the pulp, paper, printing and publishing segment were worth N118.92 billion, while those of the chemical and pharmaceutical sector reached N223.30 billion by year-end 2013. In the same vein, investments in the non-metallic products sector reached N328.70 billion, while those of motor vehicle and miscellaneous assembly were worth just N1.33 billion. Basic metal, iron and steel reported the highest investments of N1.07 trillion, while those of electrical and electronics reached N9.45 billion.

“Manufacturing is a much bigger, faster growing sector under the new series (9 percent of GDP vs 4 percent previously). In 2013, it recorded substantial growth of 22 percent (vs 14 percent in 2012), comprising one-third of total growth,” said Renaissance Capital (RenCap) analysts, led by David Nangle, in a July report.

The Business Confidence Index (BCI) just released by the Lagos Chamber of Commerce and Industry (LCCI) shows that the manufacturing sector posted a positive confidence level of 4 percent for the second time over the last seven quarters. This was a sector that often reported negative confidence levels and was consequently at the bottom of BCI league table. But the report points out some of the lingering issues.

“The most disturbing factors for manufacturers include power supply challenges, logistics challenges, the influx of imported and substandard products, preference for imported goods by Nigerians, poor access to credit, high cost of doing business, infrastructure shortcomings and inhibitive activities of government regulatory/monitoring agencies,” said LCCI in a research report released last weekend.

 

[Dreamestorical]

Departure Of Supermajors From Nigeria's Oil Sector Prompts Local Financing Shift

By Davide Barbuscia & Katie McQue

For major international oil companies, like Chevron, ConocoPhillips and Shell, the Nigerian black market for crude oil has become unbearable. They’ve had enough. And for the US firms, bigger fortunes with less risk lie at home with the shale boom. So their Nigerian onshore licenses, where most oil is stolen, are progressively being put up for sale.

Some 100,000 barrels of oil are stolen from Nigerian pipelines each day, equating to daily losses of $35 million to the market. Onshore pipelines are not buried very deep, making it easy for enterprising criminals to puncture and siphon off their contents.

“If you, as a buyer, do a cash flow analysis, the banks look to discount 20 percent just for theft,” says Joe Attueyi, who runs an oil and gas services company on the Niger Delta.

The exit of the majors is clearing the path for indigenous companies to bid on these oil fields.
As a result Nigeria’s local banks, such as Access Bank, Diamond Bank, First City Monument Bank, First Bank of Nigeria, Guaranty Trust Bank and United Bank for Africa, have been stepping up as competitors to international banks in the financing landscape of the country’s oil sector.

“Some Nigerian banks issued bonds recently, and the proceeds raised from that will be channeled into these assets,” says Miguel Azevedo, Head of Africa Investment Banking at Citi.

Over the last two months banks such as Access Bank and First Bank of Nigeria have tapped the international debt markets. First City Monument Bank has also considered issuing a Eurobond, and Ecobank Nigeria is currently in the market for a subordinated Eurobond.

“Local banks have become more aggressive and competitive and their lending capacity should not be underestimated,” said Simon Ashby-Rudd, Head of Oil and Gas at Standard Bank.

Financial institutions such as Standard Bank, Standard Chartered and Citi – among the main international banks with a traditionally strong presence in Nigeria’s oil sector – must now compete with local banks, deeply rooted in the market and comfortable with Nigeria’s political risks.

The sale of significant oil blocks from Chevron and Shell has led to a number of high bids from local players, such as Brittania-U, Seplat, Aiteo and Taleveras, who are able to tap into local banks’ risky approach and their bond-boosted balance sheets.

These companies have placed bids of up to USD 1.6bn, backed by reserve-based lending (RBL) facilities guaranteed against the assets.

All the loans will mature before 2019, notes Ashby-Rudd, since the licenses on sale all expire in 2019.

Licenses, however, are likely to be renewed, and the chunky loans backing the acquisitions will most likely be refinanced after two or three years from their launch. “This means we’ll see a new wave of refis of initial deals,” says Ashby-Rudd. “Ultimately the buying companies will access the bond markets, though this will only occur once they have a clear demonstrated history of operating the assets they have acquired.”

A fresh raft of divestitures from the majors are expected to take place in the next 12 months, and this will enable more bidders to secure five-year loan facilities.

However, it is thought that the five-year licenses, factored in the structure of the financing packages proposed to bidding companies, are a technicality that will be easily overcome if the assets are producing, according to Azevedo.

“The licenses technically expire in 2019, but this won’t really happen,” he says. “In blocks that are producing there are no examples in the past where the license is not renewed. As long as you’re producing and paying taxes it is ok.”

Over time, said Azevedo, the majors will totally divest their onshore assets in Nigeria – we can expect to see more acquisitions, the launch of high number of syndicated loans, stronger local banks, and a potential flurry of banks’ and buying companies’ bond issues.

What started as a criminal phenomenon, pushing investments away from the country, is finally resulting in a boost not just for local energy companies, but also for new market players in the international bond arena.

http://www.forbes.com/sites/mergerm...ias-oil-sector-prompts-local-financing-shift/

 

[Dreamestorical]

Lagos, Nigeria

 

[Sinnerman]

Tanzania

http://allafrica.com/stories/201408070465.html

By Paul Kibuuka

President Jakaya Kikwete shakes hands with MCC's new Chief Executive Officer, Dana Hyde and her delegation at the Ritz Carlton hotel in George Town Washington DC on the sidelines of the ongoing US-Africa Summit. Focus is also on the role of the private sector as an engine for growth.



TANZANIA is a natural resource-endowed country with a young and enterprising population. The country's vast resources, particularly natural gas, are yet to be fully developed and exploited.



Nevertheless, Government efforts continue to tackle the challenge of poverty that still confronts the country. But it is self-evident that such efforts will yield no results if the challenge to economic growth and human development is not confronted directly.



It's been proven that there's a strong connection between economic growth and poverty reduction. Positive efforts in fighting poverty depend largely on the extent to which success is recorded in attaining high levels of sustainable economic growth and human development, which is practically impossible without substantial private sector engagement.



Moreover, in today's economic environment characterized by the need for finance, it is obvious that development aid from western industrialised nations alone is not enough to address all of Tanzania's emerging and new development challenges. Consequently, additional innovative financing techniques are urgently needed to marshal extra investments in the country.



Thus, the private sector has a key role to play. One way through which extra funds could be leveraged from the private sector could be through combining grants with loans and equity. With a more lively, active, and competitive private sector playing a dominant role in creating growth, employment and wealth, I believe development stakeholders can influence effective poverty reduction in Tanzania.




In general, as a proactive partner in the country's development, the private sector can help conquer the core challenges in alleviating poverty.



"Big Results, Now"(an initiative introduced in 2013 and inspired by a similar Malaysian programme) and the Tanzania Development Vision 2025 recognize this and also support greater engagement with the private sector to boost sustainable economic growth and human development. The challenges are hard, but achievable.



Consider employment creation, for example. This remains a huge challenge not only in Tanzania but all across the world. Young people are facing a far more arduous path to finding jobs, and many of the available jobs are in the informal sector that's characterized by low productivity, minimal incomes, and a lack of economic and social security.



In response, the Tanzanian government must take action on two fronts; namely, supporting the growth of a modern, strong, vibrant and competitive private sector, and confronting the impediments to employment creation and income generation faced by young people, whose only hope remains in the informal sector.



Also, the African Union, the United Nations and the World Bank should help member countries like Tanzania adapt guidelines and standards that embrace informal enterprises and workers, strengthen those guidelines and standards, and offer more young people access to skills development and social and economic protection.



A lack of sustainable energy supplies and inadequate food security is holding back growth and development in Tanzania, yet both the energy and agricultural sectors can do a lot to drive economic growth and human development. To reduce poverty effectively and sustainably, there's need for more public-private cooperation and even a bigger role for the private sector in agriculture, energy and infrastructure.

 

[Sinnerman]

Pretoria — South Africa and Botswana have signed a Memorandum of Agreement (MoA) that will see the two countries improve cooperation to stimulate economic growth and advance regional integration.



"Key to our agreement is that it will enhance regional integration as well as economic development. It will also enhance the free movement of people across our two countries," Transport Minister Dipuo Peters said on Monday, before signing the MoA.



"We are very excited about this because it shows that our engagement over the years has started to bear fruits."



Part of the MoA includes the Upgrade of the Road and Bridges Infrastructure Development Initiatives between South Africa and Botswana, which entails cooperation in all designs, construction, financing, rehabilitation and maintenance.



In March 2007, the Regional Action Agenda Report was developed with the intention of identifying gaps, prioritising projects and thereby promoting regional integration and development.



The document is a practical action agenda, which identifies projects that should be undertaken to ensure regional economic development and integration.



This will improve the competiveness of the region through reduced transport costs and minimised delays in the movement of goods and commuters.



Rammotswa Bridge



Rammotswa Bridge is one of the projects that are being implemented as part of the programme to upgrade bridges and river crossings connecting the two countries.



The project scope entails reconstruction of the bridge and preliminary designs have been completed.



According to Minister Peters, South Africa has already demonstrated its commitment by setting aside, R20 million for completion of the project.




She also announced that the South African National Roads Agency Limited (Sanral) has a dedicated project manager based in the Northern Region managing the process on the ground.



Botswana Transport and Communications Minister Nonofo Molefhi said: "As South Africa is an economic hub in the region, it remains an attractive trade partner for most of our products and services.



"The road and bridges project will go a long way in terms of strengthening regional integration as envisioned in the Southern African Development Community (SADC) protocols.



"This agreement will be received in ululations by Botswana, who has been eagerly waiting for this project to be executed and we must implement the project with speed."



Swartkopfontein Commercial Border



Swartkopfontein is a non-commercial border post, which caters mainly for light vehicles, passengers and pedestrians.



Currently, 250 vehicles and 460 people pass through the Swartkopfontein Border Post in both directions on a daily basis. Official concessions are required for the transport of commercial goods across the border.



The border post serves as a convenient, economic route between South Africa and Botswana, particularly to Zeerust in South Africa and Gaborone, Lobatse and Ramotswa in Botswana.



The border post is closed for periods during the rainy season when the existing concrete drift river crossing through the Notwane River is submerged.



This border is ideally positioned between the commercial border posts of Kopfontein and Ramatlabama, and will relieve the pressure of traffic on these border posts if it can be upgraded to be usable on a regular basis.



The border post is to be upgraded to allow for the uninterrupted use of the facility and to provide safe conditions for pedestrians and non-motorised vehicles while crossing the border.

 

[Dreamestorical]

Lagos, Nigeria

 

[Sinnerman]

By Zerihun Getachew

Ethiopian Prime Minister Hailemariam Dessalegn calls on African leaders to launch climate smart agricultural initiatives to combat effects of climate change that affect agricultural productivity.



The Premier spoke on a panel discussion held in Washington D.C as part of the US Africa leaders' summit, representing Africa for the country's success.



The discussion focused building resilience to climate change and its effects on food security and how United States and Africa could cooperate for the cause.



Prime Minister Hailemariam Dessalegn reiterated that this is the time for Africa to formulate what is called 'climate smart' agricultural initiatives which focus on averting climate shocks.



He indicated that because of the adverse effects of climate change on agriculture, the contribution of the sector for the GDP of every nation declined by 4 percent recently.



According to Hailemariam this also needs immediate coordinated response of the governments.



The premier attended the panel on behalf of the continent as Ethiopia has been recognized as one of the successful African countries in fighting climate change and increasing agricultural productivity.




US secretary of State John Kerry who opened the panel said the Malabo agreement and climate smart agriculture programs can be implemented through partnership among governments, civil society, and business community.



He also said US is committed to launch programs to ensure food security in Africa and combat ill effects of climate change.



African leaders have long been implementing various programs to improve agricultural productivity which is the backbone of their economy.



The launch of Comprehensive Africa Agricultural Development Program (CAADP) is one among the programs formulated for the same reason 10 years back.



African leaders, during their ordinary session in Equatorial Guinea last December, agreed in Malabo declaration for the activities to continue for the following decade to increase productivity.



It is stated that Ethiopia has shown better strides towards implementation of the plan, increasing Agricultural Productivity as well as combat climate change that affects agricultural productivity one way or the other.



Reporter: Rahel Tekleyohanes

 

[Sinnerman]

Good to see Lagos, I still prefer Abuja doe

Departure Of Supermajors From Nigeria's Oil Sector Prompts Local Financing Shift




http://www.forbes.com/sites/mergerm...ias-oil-sector-prompts-local-financing-shift/

:steph: I hope I can get some of that oil money before it's too late. my mothers side is from Rivers State, maybe I can play that card to my adv

 

[Sinnerman]

Oh a growing african vacation spot, if you'd like to invest early

Mauritius

 

[TMNT4000]

Lagos, Nigeria

What sport is that?(the two first pics)

 

[Dreamestorical]

What sport is that?(the two first pics)

Its a martial art called dambe boxing.

 

[TMNT4000]

Its a martial art called dambe boxing.

Cool.

Hey, what do you think of the young African leaders initiative funded by the U.S.?