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Zambia shortlists bidders to build two large-scale solar plants

Comments (0) Africa, Business, Latest Updates from Reuters

LUSAKA (Reuters) – Zambia has shortlisted bidders to build two large-scale 50 megawatt (MW) solar power generation plants as the nation battles a power deficit which threatens industrial output.

Zambia’s power shortfall has risen to 1,000 MW from 700 MW in November due to lower hydro generation as water levels have dropped because of drought.

NEON S.A.S./First Solar Inc and Enel Green Power SpA are front-runners for the two projects, Zambia’s Industrial Development Corporation said in statement.

The two bidders put their tariffs at 6.02 cents per kilowatt hour (kWh) and 7.84 cents per kWh, respectively, and the proposed tariffs would remain fixed for 25 years, the statement said.

“The two provisional winning tariffs are both well below those typically offered under unsolicited proposals from solar developers in Zambia or elsewhere in Africa,” it said.

The two projects would be the first large-scale solar Independent Power Producers (IPPs) in Zambia developed with support from the World Bank, which acted as the lead transaction advisor.

 

(Reporting by Chris Mfula)

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IMF team in Angola for loan talks, economy diversification on agenda

Comments (0) Africa, Business, Latest Updates from Reuters

LUANDA (Reuters) – A team from the International Monetary Fund is visiting Angola to negotiate a loan facility after lower oil prices hammered the finances of Africa’s second largest crude exporter, the Ministry of Finance said on Wednesday.

The ministry said the IMF team will be in Angola from June 1 to June 14 and would discuss options on how to diversify the economy and reduce the dependence on the oil sector.

“The initial negotiations focused on recent economic developments, fiscal, monetary and exchange rate policy in the country, as well as the evaluation of the reforms that the government has been implementing,” the ministry said in a statement.

Angola said in April that it would begin loan negotiations with the IMF on a three-year loan facility.

Angola’s economy grew rapidly after a 27-year civil war ended in 2002, peaking at growth of 12 percent three years ago, but a sharp drop in oil prices has sapped dollar inflows, dented the kwanza and prompted heavy government borrowing.

Oil output represents 40 percent of Angola’s gross domestic product and more than 95 percent of foreign exchange revenue.

 

(Reporting by Herculano Coroado; Writing by Olivia Kumwenda-Mtambo; Editing by Alison Williams)

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An African first, Casablanca hosts the Smart City Expo

Comments (0) Africa, Business, Featured

smart city expo casablanca

Casablanca became the first African host to the Smart City Expo this month.

Casablanca achieved a first for Morocco and Africa when it played host to the international Smart City Expo between the 18th and 20th of May this year. While it was a new experience for one of Morocco’s most famous cities, it was also an event with a new focus. The Casablanca Smart City Expo saw a subtle shift in discussions, away from simply technology, to greater emphasis on environmental issues and sustainability.

Technology will always be at the forefront of events such as this, but it appears there is now a commitment to finding ways to use technology for more than just human convenience.

An eclectic and international event

The motto for the May 2016 event was “An open city, inclusive and innovative,” and with guests from around the world, working across multiple platforms, it appears to have lived up to its theme. Academics, researchers and business representatives attended various meetings and workshops, while several events encouraged members of the public to participate too.

Hundreds of participants from across the globe attended the 2 day event, which featured an opening speech from Casablanca’s mayor, Abdelaziz El-Omari, and was officially endorsed by Morocco’s King Mohammed VI.

Casablanca was chosen to host the event by the US Institute of Electrical and Electronic Engineering, while the various exhibitions and public events were organized by Casablanca Events & Animation.

The project saw more than 80 speakers host talks on the integration of technology into city life, and how it can be utilized to improve various aspects of urban living. The four main themes for discussion were Sustainability and Resilience, Mobility and Urban Planning, Collaborative Cities and Citizen Engagement, and Technology and Green Development.

Engaging the local citizenry was a clear priority at the Expo as four major grassroots events looked to attract public involvement. These involved free city-wide Wi-Fi for 4 days, a University showcase of public-centered smart initiatives, a public showing of a new film Human, and a 3 day event for people to try and create new apps.

Aawatif Hayar, Cluster Smart City director of Casablanca, spoke about the significance of reaching out to the people of the city, saying, “This participatory approach will allow us to build projects and interconnected sites in order to gradually develop a smart city…capable of transforming societal and economic challenges into business opportunities.”

Smart Cities aim green

Technology and environmental issues are often viewed as separate or even clashing entities. However, looking at how intelligent use of technology could help solve environmental issues was a key aspect of the Smart City Expo.

Creating technology that cleans up urban environments is intrinsically linked to human welfare, and the desired experience of living in a smart city was central to many platforms.

One of the opening speeches came from Uwe Seidel, a senior consultant from German VDIVDE, who highlighted his views on the cities of the future saying, “The most important thing in building smart cities is to put people first.”

Experts such as Boyd Cohen, urban climate strategist and Entrepreneurship & Sustainability professor at EADA Business School Barcelona, were among other key speakers who reiterated the desire and need for technology to create greener solutions.

Many of the most successful green urban advances have come from Scandinavian cities, and the Expo allowed examples from places such as Finland to be presented to the multinational event.

The United Nations’ Chief of Sustainable Lifestyles, Arab Hoballah, highlighted how integral technology could be for future urban life, saying that cutting edge technology can “be used for achieving sustainability and quality of life.”

Importantly for the African representation in Casablanca, this was an area that Mr. Hoballah felt African nations could make huge progress in. When asked about African nations’ ability to follow in the footsteps of Scandinavia, Hoballah said, “African cities can, and probably will, develop fast, because of digitality…because of smart phones, the kids have the world in their pockets.”

It is fitting that as technology spreads rapidly in Africa’s developing markets, an event that placed great focus on utilizing this for human well-being was held in a major African city. Africa’s first Smart City Expo has come to a close, but after such a large and successful event, it would be no surprise if the continent plays host once again in the near future.

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South Africa’s Imperial Holdings buys Britain’s Palletways

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South African logistics group Imperial Holdings will buy a British express delivery service for 3.8 billion rand ($242.26 million) to continue its expansion beyond its home market, the firm said on Wednesday.

Imperial said it will acquire all of Palletways Group, which delivers small consignments of palletised freight to 20 European countries, from private equity firm Phoenix Equity Partners Limited.

“The acquisition of Palletways is in line with Imperial’s stated strategic intent to expand its presence beyond South Africa through the acquisition of asset light logistics businesses,” Imperial said in a statement.

Imperial, which sells imported vehicles and runs a car rental agency in South Africa, has sold assets it considers non-core, including a short-term insurance unit as its aims to make the firm’s business less vulnerable to swings in the value of its home market’s volatile rand currency.

“Palletways’ business model and geographic reach will be complementary to our existing services and networks in the logistics sector,” said Chief Executive Mark Lamberti.

Palletways has annual sales of 3.1 billion rand and its management will invest alongside Imperial to acquire a 4 percent stake in the business, Imperial said.

The deal is conditional on its approval by European antitrust authorities.

Shares in Imperial were up 3.1 percent at 144.34 rand by 1038 GMT, outperforming a 0.66 percent decline in the Johannesburg Securities Exchange’s All-share index.

($1 = 15.6859 rand)

 

(Reporting by TJ Strydom; editing by Susan Thomas)

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Algerian president fires central bank governor

Comments (0) Business, Latest Updates from Reuters, Middle East

ALGIERS (Reuters) – President Abdelaziz Bouteflika on Tuesday fired Algeria’s central bank chief, who had been under pressure from ruling party critics over his management of fall-out from the global oil price drop, two government sources said.

No official declaration had been made so far about the dismissal of Mohammed Laksaci, who had been the central bank governor for more than a decade. Bouteflika had held a cabinet meeting early on Tuesday, according to state news media.

 

(Reporting by Lamine Chikhi; Writing by Patrick Markey; Editing by Mark Heinrich)

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Technip signs $500 mln deal to refurbish Libya’s Bahr Essalam oil platform

Comments (0) Business, Latest Updates from Reuters, Middle East

PARIS (Reuters) – French oil services company Technip has signed a deal worth $500 million with a consortium that includes Libya’s National Oil Company (NOC) and Italy’s oil and gas major ENI to refurbish an offshore oil platform.

A statement from the French foreign ministry where a Libyan delegation was visiting on Tuesday, said the platform is for the Libya’s Bahr Essalam oil field off Tripoli.

The deal was signed by NOC’s chief executive Mustafa Sanalla and Technip’s CEO Thierry Pilenko.

 

(Reporting by John Irish; Writing by Bate Felix; Editing by Ingrid Melander)

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StanChart launches mobile banking push in Africa as rivals retreat

Comments (0) Africa, Business, Latest Updates from Reuters

LONDON (Reuters) – Standard Chartered is to launch its mobile and online banking platform in eight African countries, its consumer banking chief for the region told Reuters, as the lender seeks to grow in Africa at a time when some European banks are retreating.

StanChart will launch the service for its 1 million customers in Botswana, Ghana, Kenya, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe in the first half of 2016, the bank’s regional head for retail banking Jaydeep Gupta said.

“Africa’s populations are moving quickly to embrace mobile banking and local banks have made material investments on the digital side, so to protect and grow our market share we are investing,” he said.

Gupta said StanChart hopes to grow long-term retail banking revenues in Africa by three to four times the pace of the region’s growth in economic output.

The bank’s strategy stands in contrast to European rivals who have beat a rapid retreat from Africa in recent years, stung by plunging commodities prices and weaknesses in African currencies.

Barclays said on March 1 it was seeking to sell its African business as part of a plan by new Chief Executive Jes Staley to simplify the bank’s structure.

The International Monetary Fund on May 3 cut its 2016 growth forecast for sub-Saharan Africa by 1 percentage point to 3 percent, the lowest level in 15 years and half the average over the last decade.

The tough environment has seen bank stocks in Africa plunge and lenders in countries such as Kenya and Zambia fail.

StanChart is nonetheless expanding its physical presence in the region, adding 10 branches in the Nigerian capital of Lagos as part of a strategy to focus on Africa’s capital and top-tier cities which Gupta said account for roughly 80 percent of consumer banking revenues.

Gupta declined to put a figure on the bank’s Africa investment. Africa accounts for 10 percent or around 8400 of the lender’s total employees, and StanChart made a net loss in the region of $32 million in 2015 on rising bad loans, according to company data.

Former Barclays chief executive Bob Diamond is also optimistic about the region and is bidding on his former employer’s African unit, even as his investment vehicle Atlas Mara reported a $2 million loss for the first quarter as its African banking investments struggled. [nL5N18N0XB]

StanChart’s Gupta, like Diamond, advocate looking beyond Africa’s short term economic woes.

“Africa is a multi-speed market with some countries such as Kenya bounding ahead while others like Zimbabwe and Nigeria remain challenging, but we see attractive long-term growth opportunities for the continent,” Gupta said.

 

(By Lawrence White. Editing by John O’Donnell, Greg Mahlich)

 

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Bidvest foods spin-off Bidcorp valued at $5 bil in market debut

Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South Africa’s Bidvest listed its food services business as Bid Corporation (Bidcorp) on the Johannesburg Securities Exchange on Monday, with the shares opening trade at 270 rand to value the company at around 90 billion rand ($5 billion).

Bidcorp, which supplies pubs, restaurants and hotels in Europe, South America and Asia, is the largest primary listing on the JSE since Vodacom in 2009, the stock exchange said.

Bidvest, whose business also spans pharmaceuticals, car showrooms and shipping, announced in February it planned to spin off and separately list its food business, its biggest division, in South Africa. It had previously said the business should be separated because its value was not reflected in the company’s share price.

Plans to list the food business in London were abandoned in 2014 and private equity buyout bids for it were rejected three years earlier

The separation will position the food business for a new phase of both internal and acquisitive growth, said Bidcorp Chief Executive Bernard Berson before he opened trading in Johannesburg by blowing a ceremonial kudu horn.

Bidvest shares dropped 68 percent as Bidcorp started trading, settling around 118.42 rand by 1213 GMT to value what remains of Bidvest at around 38 billion rand, while Bidcorp had risen to 280.84 rand.

The listing splits the group into what is more or less a South African corporation in Bidvest and global food player in Bidcorp, Cratos Capital senior trader Ron Klipin told Reuters.

“It’s certainly unlocking some short-term value for Bidvest shareholders,” said Avior Capital Market analyst Mark Hodgson.

($1 = 15.7968 rand)

 

(Reporting by Zimasa Mpemnyama and TJ Strydom; Editing by Greg Mahlich)

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Botswana’s economy to return to growth this year

Comments (0) Africa, Business, Latest Updates from Reuters

GABORONE (Reuters) – Botswana’s economy will return to growth this year after contracting in 2015 as water and electricity supply stabilise, the central bank said on Monday.

Consumer prices in the southern African country will remain within the bank’s target of between 3 and 6 percent, the Bank of Botswana’s Kealeboga Masalila said at a conference.

Botswana’s economy contracted 0.3 percent in 2015 due to a sharp fall in mining output as global demand for commodities sank and a severe drought pushed up inflation.

 

(Writing by Mfuneko Toyana; Editing by Joe Brock)

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South Africa needs to “reduce noise” in its political system: Treasury official

Comments (0) Africa, Latest Updates from Reuters, Politics

JOHANNESBURG (Reuters) – South Africa has to reduce the “noise” in its politics in order to attract investment and improve confidence, a senior Treasury official said on Friday.

“We have got to reduce the amount of noise in our political system, especially as it pertains to various policies that are under consideration so that we can improve confidence and make our country an attractive investment destination,” Director General Lungisa Fuzile said at a conference in Johannesburg.

Africa’s most industrialised country has been gripped by political upheavals ranging from a failed impeachment attempt against President Jacob Zuma for breaching the constitution to media reports that he is at “war” with Finance Minister Pravin Gordhan in the past few weeks.

 

(Reporting by Mfuneko Toyana; Writing by Nqobile Dludla; Editing by James Macharia)

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