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Economic Freedom in Africa

13 February 2016 Comments (0) Africa, Business, Featured

Lagos (1)

According to US think tank The Heritage Foundation and the Wall Street Journal, Mauritius, Botswana and Cape Verde are the most “economically free” countries on the African continent

At the beginning of each year, the Wall Street Journal and The Heritage Foundation release their economic freedom index, ranking countries from the most economically free to least economically free. Economic freedom is defined as the fundamental right of every human to control her or his labor or property. In an economically free society, citizens are free to work, produce, consume and invest in whatever way they see fit, and labor, capital and goods are able to move freely without undue restrictions. The index is based upon a total of 10 indicators divided into four broad groups: rule of law (property rights and freedom from corruption); limited governance (government spending and fiscal freedom); regulatory efficiency (business freedom, labor freedom and monetary freedom); and open markets (trade freedom, investment freedom and financial freedom).

Africa and the Economic Freedom Index for 2016

There are no African economies ranked as “free”, but two fall into the “mostly free” category. Mauritius was ranked 15th out of 178 with a score of 74.7 out of 100. Mauritius also has the distinction of being Africa’s only full democracy, although the newly-elected government (2014) has been accused of using anti-corruption policies to unfairly target members of the former government. Property rights are respected, meaning that the government does not unfairly seize land from citizens or other property owners. The budget deficit is under control, and public debt accounts for approximately 50% of the GDP (a level comparable to Switzerland in 2011). Notable successes are open markets and regulatory efficiency while concerns are property rights and labor freedom.

Botswana ranked second in Sub Saharan Africa with a score of 71.1 and global ranking of 30. Thanks to foreign investment, Botswana’s economy has diversified and is predicted to continue to do so. Botswana is also home to a large amount of natural resources and is a prime example responsible natural resource management because it does not rely upon a single industry to support its economy. Furthermore, Botswana has the most transparent government and lowest rates of corruption in Africa, which is notable given their natural resources (compared to Nigeria, which has a huge amount of oil, but most of the potential positive externalities are absorbed through endemic corruption). Notable successes are open markets and fiscal freedom while concerns are corruption, management of public finances and regulatory efficiency.

Moderately Free

Cape Verde

Cape Verde

Coming in third for Africa is the small island nation of Cape Verde, with a ranking of 66.5, which puts it in the “moderately free” category, and global ranking of 57. With a relatively strong rule of law, Cape Verde has been able to transition to a more open and diverse economy. Property rights are highly respected and the nation has done a good job of reigning in corruption and enhancing the quality of the regulatory system. Rule of law and open markets are marked successes for Cape Verde, while management of public spending and labor freedom are areas of concern.

There are 7 other “moderately free” countries in Sub Saharan Africa: Rwanda (63.1); Ghana (63); Seychelles (62.2); South Africa (61.9); Namibia (61.9); Madagascar (61.1); and Cote d’Ivoire (60).

The most oft cited areas of success are in the expansion of trade freedom and the increase in the efficiency of regulatory systems; areas of concern are in the freedom (or lack thereof) from corruption and property rights.

“Mostly Unfree”

Fourteen of Sub-Saharan Africa’s countries are ranked as “mostly unfree”.

Swaziland is the freest of the mostly unfree with a ranking of 59.7. This tiny landlocked country rests within South Africa’s borders and is a relatively impoverished monarchy. Political parties are banned, and the most recent elections (2013) were declared not credible by international watchdogs. Economic opportunities are few, and the economy relies heavily upon the tourism sector. Reasons for this low ranking are the stagnation of the economy, ongoing civil unrest that frequently becomes violent, high levels of corruption, mismanagement of public finance and an inefficient regulatory system. Swaziland’s successes were cited as monetary freedom and trade freedom, while concerns were listed as rule of law, management of public finances and financial freedom.

Coming in behind Swaziland are Benin (59.3); Uganda (59.3); Burkina Faso (59.1); Gabon (59); Zambia (58.8); Tanzania (58.5); Senegal (58.1); Kenya (57.5); Nigeria (57.5); The Gambia (57.1); Sao Tome and Principe (56.7); Mali (56.5); Djibouti (56) and Mauritania (54.8); Niger Cameroon Burundi (53.9); Togo (53.6); Guinea (53.3); Mozambique (53.2); Comoros (52.4); Sierra Leone (52.3); Liberia (52.2); Guinea-Bissau (51.8); Malawi (51.8); Ethiopia (51.5); Lesotho (50.6);

The main concerns in these areas are rule of law, corruption, management of public finance and regulatory efficiency. These countries are moderately to severely impoverished, and economic opportunity is low for much of their populations. Pervasive corruption makes institutional change challenging, and low levels of confidence in the government and economic sector are not encouraging.

The Bottom Eight: Repressed

Sub Saharan Africa has 8 of the world’s 24 most repressed economies: Angola (48.9); Democratic Republic of the Congo (46.4); Chad (46.3); Central African Republic (45.2); Equatorial Guinea (43.7) Republic of Congo (42.8); Eritrea (42.7) and Zimbabwe (38.2)

Angola is ranked 155th out of the world’s 178 ranked states, while Zimbabwe is a dismal 175th. These repressed countries have myriad problems that prevent development: on-going civil war, deeply embedded corruption, abuse of natural resources, mismanagement of development aid and massive rates of unemployment all prohibit economic development in these countries. While there have been a few areas of notable success (monetary freedom in the Central African Republic and Equatorial Guinea, for instance) several of these countries do not have a single notable success.

Economic Freedom: Winners and Losers

As with most global indicators, some nations simply cannot be ranked: this year, much of the Middle East that is currently mired in the ISIS conflict was considered unrankable, as were Sudan and Somalia (Africa’s notoriously failed states). It is, as always, the citizens of these countries that suffer from lack of economic development. Millions of individuals are at the whim of their too-often unfairly elected leaders, and buying into systems of corruption is the only visible way out of the swamp of poverty. For citizens of Zimbabwe, economic repression has continued for generations, and hope for change dwindles with each fraudulent election. The international community has few suggestions for these nations, as existing modes of economic development are clearly ineffective. Hopefully, as time moves slowly forward, these nations will develop their own way into the world of economic interconnectedness.

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The woman leading UAE’s drive to become an entertainment hub

12 February 2016 Comments (0) Business, Featured, Middle East

noura al kaabi

Noura Al Kaabi has brought filming of movies including “Star Wars” and “Fast and Furious 7” to Abu Dhabi as head of the free zone twofour54.

Goodbye, Hollywood. Hello Abu Dhabi. Noura Al Kaabi is leading the United Arab Emirates’ ambitious effort to become a global media and entertainment hub.

As chief executive officer of the government-owned free zone twofour54, Al Kaabi brought the high-speed car chases of the action movie “Fast and Furious 7” to Abu Dhabi and transported the “Star Wars’’ storm troopers onto the nation’s vast desert.

Other productions in the country include “Sesame Street,” the well-known children’s television show; Top Gear, a highly popular motoring show in the United Kingdom; and “Bang Bang,” a Bollywood action movie.

Zone provides infrastructure and support

It’s all part of an effort Al Kaabi is spearheading at twofour54, which aims to provide the infrastructure and support to attract foreign productions and also to grow entrepreneurship in media and entertainment within the country.

The “Star Wars” movie and other high visibility projects have put twofour54 on the map with international film companies. The project offers incentives and logistical support to attract new projects.

Bollywood has been especially interested because Abu Dhabi is only a few hours away from India.

Tax-free environment attracts foreign investment

Duraï featured in Fast & Furious 7

CNN, Sky News Arabia, and the Cartoon Network also have set up projects in the twofour54 zone.

The twofour54 zone is one of a about three dozen free zones the United Arab Emirates government has established to promote economic development and attract foreign investment. The zones provide a tax-free environment and allow foreign ownership of companies operating within it.

The twofour54 zone also offers business support services, production facilities, funding for entrepreneurs and media training.

While development of international films and programming has grabbed headlines, fostering internal talent development in media and entertainment is a key goal.

“We are enabling young skilled media professionals to learn from the world’s best producers, directors, developers and other experts in the industry,” Al Kaabi said, emphasizing the importance of bringing “fresh faces” into the industry as a way of encouraging innovation.

UAE seeks to diversify revenue base

She noted that Abu Dhabi’s emergence as an entertainment hub is contributing to the United Arab Emirates effort to diversify its revenue sources and reduce its reliance on oil revenue.

The UAE has set a goal of reducing the proportion of gross domestic product from energy products from 30 percent to 20 percent in the next 10-15 years. Other important sectors include financial services, manufacturing and tourism.

Visibility in international films can boost tourism as well, she said. “Fast and Furious,” for example, featured a scene in which the characters drove a stolen car through the Etihad Towers. That is likely to attract people who want to visit and see the structure close up, she said.

A LinkedIn Global Influencer

Al Kaabi regularly appears on power lists in the region.

She was the first woman from the region to be chosen for LinkedIn’s Global Influencer Program, which designates leaders to share perspectives on the professional network. LinkedIn has selected about 500 influencers, including U.S. president Barak Obama and Dubai vice president Sheikh Mohammed bin Rashid, since the program began in 2013.

Al Kaabi sits on several boards including United Arab Emirates University, the National Media Council, Abu Dhabi Media, and Image. She chairs in the Emirates Media Measurement Company.

She was one of Forbes Middle East’s 30 Most Influential Women in Government in 2014 and was awarded Business Woman of the Year at the Gulf Business Industry Awards.

Technology, metrics pose challenges

In spite of the progress of twofour54, she sees challenges ahead, particularly on the technology and metrics fronts.

She said the entertainment and media industry in the region needs a technology update. Another important next step is to figure out how to measure reach of the content the project produces.

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ArcelorMittal South Africa seeks power producer to build new plant

12 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – ArcelorMittal South Africa is looking for an independent power producer to build an 800 megawatt gas-fired power station on land at its Saldanha steel works to help ensure its survival, Chief Executive Paul O’Flaherty said.

ArcelorMittal, which is reviewing its Saldanha operation partly due to high electricity costs, is willing to take as much as 220 MW of the plant’s capacity and the company is in talks with other industrial users and the government to sign long- term contracts for the rest.

Building an independent power plant is vital for the survival of Saldanha, O’Flaherty told Reuters, adding that state-owned utility Eskom’s rising electricity prices were unaffordable.

Electricity accounts for nearly a third of costs at Saldanha, the company’s newest and only export-focused plant, compared with less than 10 percent for the rest of the company.

“An environmental impact study is underway on our land,” O’Flaherty said adding that ArcelorMittal South Africa would not own the project.

On Friday, the company reported a slightly narrower loss than expected, sending its shares soaring.

There are also expectations that the government will give local steelmakers further protection beyond the 10 percent steel import tariff agreed in August.

Shares in ArcelorMittal South Africa were up a further 12.74 percent at 6.99 rand by 1200 GMT on Friday.

 

(Reporting by TJ Strydom and Thekiso Lefifi; Editing by Greg Mahlich)

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South Africa’s Woolworths to conserve cash as growth slows

11 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – South African retailer Woolworths Holdings Ltd will aim to conserve cash as growth slows in its home market, Chief Executive Ian Moir said on Thursday.

Shares in the retailer slid to a two-month low despite posting a 30.6 percent jump in first-half profit.

Woolworths, which sells upmarket food and clothing, warned rising interest rates in South Africa would further pressure consumers in Africa’s most advanced economy, where it makes nearly 60 percent of its sales.

“It would be more conservative, in what is a volatile environment, to offer scrip rather than cash,” said Woolworths Chief Executive Ian Moir, referring to dividends paid in shares rather than cash.

Shareholders will have a choice between a scrip and a cash dividend, the company said.

If all shareholders chose scrip, Woolworths would have 1.5-1.6 billion rand more for investment and to pay off debt, Moir said.

The company is committing capital to its expansion plans in Australia, said Moir, where it last year bought department store chain David Jones.

South Africa’s retailers are battling to boost sales as consumers check spending, though Woolworths has done better than rivals due to its appeal to high-income customers.

But a severe drought in southern Africa and the weaker rand is expected to stoke food price inflation, and though higher maize prices should not have a direct impact on higher income shoppers, their spending could sag.

“When we see food inflation coming through, our customers, even at the upper end, tend to buy less items,” said Moir.

Sasfin Securities analyst Alec Abraham said though Woolworths posted good operational results, Moir’s downbeat comments on South Africa’s growth outlook might have contributed to the share price fall on Thursday.

Earnings per share were affected by costs to acquire David Jones and the dilutive effects of share issues to finance the transaction and a black empowerment deal.

Headline earnings per share, the most widely watched profit measure in South Africa, which strips out certain one-off items, were up 30.6 percent at 253.5 cents for the six months ended Dec. 31.

Shares in Woolworths were down 7.5 percent at 86.37 rand by 1050 GMT, compared with a 2.1 slide in the JSE’s benchmark Top-40 index.

 

(Reporting by TJ Strydom; Editing by Subhranshu Sahu and Mark Potter)

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Mauritius business confidence bounces back in last quarter of 2015

11 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

PORT LOUIS (Reuters) – Higher sales volumes boosted business confidence in Mauritius during the last quarter of 2015 after a decline in the previous quarter, a survey of leading private-sector companies showed on Thursday.

The Mauritius Chamber of Commerce and Industry’s quarterly confidence index climbed 6 percent to 93.4 points. However, the index remained well below the long-term average of 100 points since the third quarter of 2012.

The Indian Ocean island’s economy grew by an estimated 3.4 percent in 2015, down from a forecast of 3.6 percent issued in September. Statistics Mauritius forecast growth at 3.9 percent this year with an expected rebound in the construction sector.

Chamber economist Renganaden Padayachy said 49.1 percent of business leaders interviewed in the survey said expansion and diversification prospects into new markets were the main growth drivers in the last quarter of 2015.

“A majority of enterprises are confident for 2016 and expect an improvement in their business this year,” he told a news conference.

 

(Reporting by Jean Paul Arouff; Editing by Drazen Jorgic and Dale Hudson)

 

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Ivory Coast 2015 cashew output hits record 702,000 T

11 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

ABIDJAN (Reuters) – Ivory Coast’s 2015 cashew nut crop rose 24 percent to a record 702,000 tonnes and marketing of the crop will begin on Feb. 15, the West Africa nation’s government said on Wednesday.

The government has set a minimum farmgate price of 350 CFA francs ($0.5988) per kilogram, compared with 275 CFA francs the previous year, said government spokesman Bruno Kone. He said farmers have received a total 119 billion CFA francs in 2015.

In addition to being the world’s top cocoa producer, Ivory Coast is also Africa’s biggest cashew grower. The increase in cashew output has been boosted by government reform and investment, the statement said. A decade ago, Ivory Coast produced around 80,000 tonnes of raw nuts per year.

With output growing by over 10 percent annually amid strong demand from Asia, the cashew sector has attracted the attention of a government keen to kickstart the economy after a decade of war and political chaos that ended in a brief 2011 civil war.

($1 = 584.5300 CFA francs)

 

(Reporting by Loucoumane Coulibaly; Editing by Matthew Mpoke Bigg)

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Slumping oil prices, political unrest prompt risk rating downgrades

10 February 2016 Comments (0) Africa, Business, Featured

The credit insurer Coface says only four African countries offer an “acceptable” average probability of corporate default.

Seven African countries have seen increased risk of default while only one has improved in the past year, according to a new report by the credit insurer Coface.

Only four African countries – Botswana, Mauritius, Morocco and Namibia – received an A rating from Coface, signifying an “acceptable” average probability of corporate default.

Seven countries were rated B with a “significant” average probability of default. The remaining 32 countries rated a C or a D, reflecting high or very high probability.

Ivory Coast was the only African country rated as improving, although Coface put it on a positive watch rather than a full upgrade. Coface downgraded risk ratings for Algeria, Gabon, Madagascar, South Africa, and Tanzania, while Zambia and Namibia were placed on a negative watch.

Oil-dependent economies see increased risk

The oil glut figured heavily in Coface’s downgrades for Algeria and Gabon.

Algeria’s rating went from A4 or a “quite acceptable” probability of default, which denotes some economic weakness, to B, a “significant” probability reflecting an uncertain economic and financial outlook.

Algeria’s oil and gas revenue dropped 40 percent last year, forcing the government to cut spending, raise fuel prices and halt major projects. The government, which draws 60 percent of its funding from energy revenues, recently turned to China to finance several infrastructure projects, including a new port.

Algerian economy will expected to slow

algeria oilCoface said weak oil and gas prices would continue to slow the Algerian economy.

“Algeria remains highly dependent on the energy sector which accounts for 30 percent of its GDP. The problems faced by the hydrocarbon sector due to its lack of competitiveness and the obsolescence of its production equipment lead to the conclusion that if the oil market remains low Algerian energy production performance will stay weak in 2016.”

Gabon’s rating dropped from B to C, denoting a “high” average probability of default.

Like Algeria, the country has seen its oil revenue drop dramatically and its economic growth decline sharply. The report said economic activity was expected to “pick up as of 2016 thanks to election spending, the natural resources sector (agri-business, gold and manganese mines, wood processing) and the services sector.”

Global oil prices may drop further

Oil-dependent economies face more challenges in the coming year.

According to the report, global oil prices may decline by another $5 to $15 per barrel in the coming year. Non-OPEC production will decline, particularly U.S. shale oil, the report said. However, with economic sanctions lifted, Iran will bring additional oil to market – it has 30 million barrels in reserve and could increase production to 700,000 barrels a day.

South Africa risk “significant”

In South Africa, the report cites the nation’s recent financial crisis, higher interest rates, government deficits and political instability as factors. South Africa’s rating went from A4 or a “quite acceptable” average probability of default, which denotes some economic weakness, to B, “significant.”

South Africa’s worsening economic was thrown into an uproar late in 2015 when President Jacob Zuma abruptly fired a respected finance minister and then fired the replacement amid public protests.

With the value of the rand plummeting, South Africa worst drought in decades is putting even more pressure on the nation’s economy. The report said “agriculture, which was badly hit by drought in 2015, could again suffer as a result of El Niño in 2016.”

Tanzania, Madagascar also downgraded

Tanzania was downgraded from B to C, or “high” probability of default.

The east African nation has in the midst of a political standoff that has disrupted trade for several months. It began after the mainland government annulled an election in semi-autonomous Zanzibar, which the opposition party claimed to have won. New elections are planned in February but the opposition has threatened a boycott.

Madagascar has also suffered political unrest since a coup in 2009. Its rating went from C to the lowest possible grade, D, signifying a “very high” average probability.

The report said Hery Rajaonarimampianina, who took power in the coup and was democratically elected president in 2013, “lacks the support for implementing reforms, with popular discontent taking the form of increasing numbers of protest movements and strikes.”

Most African countries draw poor ratings

Twelve other African countries are rated D. They are: Burundi, Central African Republic, Chad, the Democratic Republic of Congo, Eritrea, Guinea, Liberia, Malawi, Mali, Sudan and Zimbabwe.

In addition to Tanzania and Gabon, 17 countries are rated C: Angola, Burkina Faso, Cameroon, Congo, Djibouti, Ethiopia, Ghana, Ivory Coast, Mauritania, Mozambique, Niger, Nigeria, Rwanda, Sao Tome, Togo, Uganda and Zambia.

In addition to Algeria and South Africa, five countries are rated B: Benin, Cape Verde, Kenya, Senegal, and Tunisia.

Four nations offer “acceptable” risk

Of the four countries that received an A rating, Morocco and Botswana were rated A4 – “quite acceptable” probability – while Namibia and Mauritius got a higher A3 rating – “acceptable” probability.

In the Middle East, Israel, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates received A ratings while Bahrain and Jordan were rated B. Coface gave C ratings to Egypt and Lebanon. Iran, Iraq, Libya, Syria and Yemen were rated D.

Globally, Coface forecasts a gradual continuing economic recovery in the euro zone.

“However, cheap oil, the weak euro, ad the slow decline in unemployment should not detract from the many sources of possible risk this year, with political risk foremost among them,” the report said.

While advanced economies should experience moderate growth this year, “it will not be enough to restart global growth this year.”

The report underscores the risks as more investors turn their attention to the continent. Despite the challenges, investor interest in Africa has grown in the past decade, with an estimated $4 billion raised in 2014. Private equity investment in Africa amounts to about 1 percent of the global total.

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Lonmin will not shy away from merger or takeover

10 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

CAPE TOWN (Reuters) – Platinum producer Lonmin will not “shy away” from any merger or takeover but for now the company is focused on its plan to survive tough market conditions, its chief executive said on Tuesday.

Like its peers, Lonmin is battling sharp falls in commodities prices amid a supply glut and slowing demand growth in top consumer China. Its share price has tumbled by more than 95 percent since the start of 2015.

This has led to market speculation about a possible takeover of the 107-year old company and some analysts have said efforts so far to turn the company around were not enough despite cost cuts and a deeply discounted rights issue in December.

However, no concrete news has emerged.

“We are continuously looking at options to maximise value for our shareholders and all other stakeholders. Should it be of benefit to our shareholders and stakeholders it’s not something we would shy away from,” CEO Ben Magara told Reuters at a mining conference in Cape Town when asked if he would consider takeover offers.

He declined to say if Lonmin was in any talks with any potential parties.

The price of platinum has fallen about 30 percent year-on-year, forcing miners to sell assets and cut production and jobs. Around two-thirds of the industry, whose mines were damaged by the five-month strike in 2014, are making losses.

Magara said the company was for now focused on turning cash positive in a low price environment – which involves closing high-cost shafts and cutting jobs.

“That’s what I am worrying about. The investors have given us money and we must deliver. Investors are asking if we are going to deliver on this,” Magara said.

Hurt by a prolonged 2014 strike, rising costs and the plunging platinum price, Lonmin raised $400 million through a cash call in December.

The rights issue was undersubscribed even though it was deeply discounted, forcing the company’s underwriters to buy shares in the company and showed that investors were losing faith in the beleaguered mining sector.

The shares were priced at just a penny each on Nov. 9, a 94 percent discount to the stock’s previous session closing price of 16.25 pence on the London Stock Exchange

“I have no doubt that there will be pressure on us when we finally start making money. Will we go and put it in a project first or will we pay investors?” Magara said.

“I think it’s important that investors will get their money back first. They deserve it.”

Lonmin has said it will continue to review its services and reduce costs, mainly through job reduction, as the slide in the price of its main commodity bites further.

“We have seen cycles come and go and I suppose this shall pass but I have to admit, it’s one of the worst I have seen,” Magara said.

 

(By Olivia Kumwenda-Mtambo, Editing by James Macharia and David Evans)

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Harsh winds, lack of rain to hit Ghana cocoa output

9 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

ACCRA (Reuters) – Ghana could lose as much as 25 percent of its projected cocoa output this season as harsh winds and a lack of rain confound efforts to boost yields in the world’s second-largest producer, a government source said.

The Harmattan wind, which blows off the Sahara, sapping soil moisture and spoiling seeds, came early this season and has intensified in recent weeks, stunting pod growth more than usual and stifling government plans for expansion.

The West African country had hoped to produce 850,000-900,000 tonnes of cocoa in the 2015/16 crop year, up from the previous season’s 740,000 tonnes.

But a government source with knowledge of crop estimates said full-year production might not exceed 750,000 tonnes, and could fall as much as 25 percent short of initial estimates.

In addition to the impact of the weather, some cocoa farms have been destroyed by seasonal bushfire, the source said.

Regulator Cocobod, which had provided free early-maturing hybrid seedlings and fertilisers to boost the crop, said it was too early to know the effect of the weather on its output target and declined to give an estimate.

“Our technical men are just about to go to the field and until they come out with their findings, it will be too early to estimate the damage caused by the Harmattan,” Cocobod spokesman Noah Amenyah said.

In major western and eastern growing regions, farmers told Reuters that they are struggling to even meet last year’s quota.

“We started the year with high hopes because they (Cocobod) gave us all the inputs we needed, but we don’t have the same level of hope now,” 59-year-old farmer Stingo Arthur said, pointing at the withered pods clustered on the trees of his 20-acre farm.

“It is severe now because there is no rain.”

Arthur had expected to harvest more than thirty 64-kilogram (141-lb) bags this season, up from 20 bags last year after boosting his farm with 516 hybrid seedlings and fertiliser last June. So far, he has harvested only 18 bags.

Chief cocoa farmer for the Eastern region, Nana Obeng Akrofi, said he had revised down his original harvest target of 200 bags to “not more than 160” from his 45-acre cocoa cultivation at Bonsu, due to the devastating effects of the Harmattan.

Ghana produces 70 percent of its output in its main crop harvest between October and January. A July-September light crop is discounted to local processing companies.

The bad weather means farmers did not see the volume of beans that normally come at the tail end of the main crop.

Weather forecasters predict rain in mid February or early March but many farmers say that will be too late for light crop beans.

“My fear is that the light crop may be worse,” Akrofi said.

 

(Reporting by Kwasi Kpodo; Editing by Makini Brice, Edward McAllister and Jan Harvey)

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Zambia scraps 73rise in electricity tariffs

9 February 2016 Comments (0) Africa, Business, Latest Updates from Reuters

LUSAKA (Reuters) – Zambia has scrapped a nearly 73 percent hike in electricity tariffs for industrial and commercial users following an outcry from consumers, a spokesman for state power firm Zesco said on Tuesday.

The country’s power regulator last December approved an increase in electricity charges to 10.35 U.S. cents per kilowatt hour (KWh) from six cents.

“We have withdrawn the application we made to the Energy Regulation Board for higher electricity tariff. We had a lot of complaints and want to consult further,” Zesco spokesman Henry Kapata said.

 

 

(Reporting by Chris Mfula; Writing by Stella Mapenzauswa; Editing by James Macharia)

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