Health:
Botswana's efforts in combating the HIV/AIDS epidemic received a World Bank boost of US$ 50 million that includes a "buy-down" design being implemented for the first time in Africa. Japan provided US$ 2.9 million in Sierra Leone for prevention and control of infectious diseases. USAID provided US$ 200,000 in emergency funding, matched with £ 200,000 from the UK's Department for International Development (DFID) to Zimbabwe's health sector. The Islamic Development Bank (IDB) provided US$ 350,000 for the expansion of Tawfiq Hospital, Malindi, Kenya.
General Business:
Developing countries are seen growing up to 5% in 2009, while industrialised countries will shrink due to the global financial crisis, the World Bank's chief economist has predicted. The World Bank has urged developed countries to start a fund to ensure more resources were available for African countries to develop the infrastructure they need to sustain economic growth. The African Development Bank said it would triple its lending to African countries to help the world's poorest continent fight the impact of the global financial crisis. Continuing economic growth in China allied to a demand for African resources, spells the best hope for the continent's recovery.
South Africa, with its mixture of first and third world, provides a bellweather for the impact of the global recession on African economies. South African manufacturing production recorded the lowest annual growth in 5 years while South Africa's index of total mining production was 7,5% lower in 2008 compared with 2007 and South Africa is now only the third largest gold producer after China and the USA. Government spending of R 787 billion on public infrastructure over the next three years will push South Africa's budget deficit to 3.8% in 2009. The currency has weakened, the motor industry has been particularly badly hit with January vehicle sales down 35,4% and retrenchments abound across many sectors.
Nigeria's central bank said all foreign exchange purchases from its window and from other sources are only to be used for customers and not on the interbank market.
Investment and Projects:
South Africa's JSE will launch the Africa Board, a new trading segment on the exchange's main board featuring top companies from across the continent, in a bid to increase interest and investment. JSE is to license the benchmark corn futures settlement prices of the CME Group, the world's largest and most diverse derivatives exchange. Nigeria plans to launch its first international naira-denominated bond within six months. Senegal, under pressure to settle millions of dollars' worth of debts to local businesses, put the country's biggest hotel complex, the 5-star King Fahd, up for sale. The South African National Roads Agency is to raise a further R 25 billion in debt finance for upgrades and freeway construction projects over the next two years.
Trade:
Safmarine announced the new SAECS Reefer Express Service, operated by three vessels and specifically focused on accommodating the seasonal demands of reefer cargo during 2009. Iran is holding an exhibition of goods produced by its manufacturers in Rwanda in order to interest Rwandans in the idea of investing in and trading with Iran in the future. Nigeria is seeking closer trade relationships with India, Sweden and the Netherlands. South Africa has lifted the ban on the importation of pork from Ireland, imposed because of a dioxin contamination scare in December. South Africa's trade deficit has dropped from R 88 billion to R 64.5 billion. The government of Zimbabwe has de-regulated exchange controls, thus allowing exporters to retain 92.5% of their export proceeds and keep foreign currency in their accounts.
Mining:
Corporate / M&A:
Central Rand Gold updated its production guidance to 100,000 oz pa by 4Q09 and is fully funded to reach this. PMI Gold Corporation announced a Trafalgar bridge loan update. Pamodzi Gold announced amendments to its Industrial Development Corporation of South Africa (IDC) loan agreements. Pan African Resources announced that it has acquired an exclusive, non-refundable option to purchase 100% of the shares in Phoenix Platinum Mining. SEMAFO plans to produce up to 240,000 ounces of gold in 2009. Anglo Platinum plans to cut 10,000 jobs in 2009. Homeland Energy and GMR Energy are in discussion to sell South African assets. Banro announced financing to further advance projects in the Democratic Republic of the Congo.
Other:
Ghana's gold output rose 4% to 2.6 million ounces in 2008, and higher prices pushed overall mining revenues to US$ 2.3 billion, up 28% on 2007. Indian imports of South African coal are likely to grow to 9 to 10 million in 2009 from 8 million tonnes in 2008 due to strong demand and lower coal prices. International Gold Resources entered into an agreement with UltraGold Holdings to form a joint venture to explore in Guinea. Africo reached agreement with Gecamines and DRC Government in respect of Kalukundi in DRC. Coal of Africa has secured both the rail and port capacity to export one million tons of coal per year from the Vele and Makhado coking coal projects through the Matola dry-bulk terminal. Ethiopia's Ministry of Mines and Energy has licensed 29 companies to be engaged in lime stone exploration and development. South African mines scored 66% in a government-commissioned safety audit. VIPR Industries acquired a gold property consisting of 10 licenses in Singida region, Tanzania. Mintek and the SA Diamond and Precious Metals Regulator launched a diamond fingerprinting project. DiamondCorp gained mining rights for the Lace the diamond mine, South Africa. Rocmec obtained a patent for its thermal fragmentation mining method for Tanzania. In the Business Opportunities section of our website, US-based M.C. LaBarr Mining Machinery is offering a +-35,000 MTPD Au/Cu grinding circuit and other mining equipment.
