Le président portugais attendu au Mozambique pour une visite officielle

APA-Maputo (Mozambique), 23/03/2008

Le président portugais, Aníbal Cavaco Silva, entame lundi une visite officielle de quatre jours au Mozambique à l’invitation de son homologue mozambicain, Armando Guebuza.

M. Silva doit rencontrer leprésident Guebuza, peu après son arrivée, pour discuter du renforcement des relations de coopération entre le Mozambique et le Portugal.

Un communiqué de la présidence indique que la visite du président portugais au Mozambique sera axée sur le renforcement de la volonté politique et des relations d’amitié entre les deux pays à travers la promotion d’un nouveau cycle de coopération économique et entrepreneurial, la valorisation de l’héritage culturel commun et la stratégique globale de la langue portugaise.

le président Silva sera accompagné au Mozambique de ses ministres des Affaires étrangères, de la Défense nationale, de l’Education et de la Culture, ainsi que du secrétaire d’Etat chargé des affaires étrangères et de la coopération et de celui du commerce.

C’est la première fois, depuis 30 ans, q’un président portugais se rend au Mozambique pour des discussions bilatérales, vue les relations intenses depuis que le Mozambique a obtenu son indépendance du Portugal, en 1975, mettant ainsi fin à 500 années de domination coloniale

Les investissements du Portugal au Mozambique ont beaucoup chuté ces dernières années. Toutefois Lisbonne reste l’un des 10 premiers investisseurs dans le Mozambique

En 2007, le Portugal était 7ème sur la liste des plus grandes sources d’investissements étrangers directs en Mozambique, derrière la Chine, l’Afrique du Sud, le Royaume-Uni, l’Ile Maurice, la Suisse et les etats-Unis.

SA and DRC to review bilateral agreements

Sapa, 04/04/2008

South Africa and the Democratic Republic of the Congo (DRC) have agreed to improve coordination to assure agreements between the two countries are implemented.

Both President Thabo Mbeki and his Congolese counterpart Joseph Kabila, who co-chaired the binational commission between the two countries on Thursday, said there were "challenges" hampering the implementation of bilateral agreements.

The two countries have over the past few years signed 27 bilateral trade, economic and social agreements, but both presidentss said there were problems in the implementation thereof.

"We'll pay particular attention of the implementation of agreements, we'll make sure that in both countries there are strong focal points that pay full time attention to do the implementation of the agreements," Mbeki said following the meeting at the Presidential Guesthouse in Pretoria.

A review of the agreements and their implementation would be done within three months by the various ministers in each country who are overseeing the agreements.

"It is very important because we have a whole range of agreements and commissions (working on those) and a very wide scope of work," Mbeki said.

There would be "strong focal points" in both countries, which would pay full time attention to the implementation of the agreements.

"(We can) fortunately also confirm the common commitment on both sides to respond to those challenges," Mbeki said earlier.

The success of the DRC was not only important for relations between the two countries but also to the rest of the continent, he said.

Earlier, in his opening remarks, Kabila also highlighted the problems of implementation, saying the meeting between himself and Mbeki was aimed at achieving "results-orientated" programmes.

“The way that is paved will help identify a very realistic timetable for concrete project implementation and also help for better control," Kabila said through a translator.

Kabila said the focus would be on energy and electricity, water projects and basic infrastructure development.

The issues of defence, security, public administration, taxation and customs and business investment also received attention, he said.

China is sixth largest investor in Mozambique

China became sixth largest foreign investor in Mozambique last year while the United States topped the list with $5-billion worth of investment, officials said on Monday.

Mozambique's Investment Promotion centre (CPI) said China invested $60-million in 11 projects in agriculture, aquaculture, public works and forestry.

Evaristo Cumbane, a senior official at the CPI, said this was China's biggest foreign investment in Mozambique so far from a $1-million investment in 2003.

China is the only country in the world to have built its own Investment Promotion Centre in Mozambique.

Hungry for natural resources to help feed its growing economy, China has looked to Africa for partnerships and has invested some $30 billion in the continent's oil and gas industries.

Secretariat Powers SACU to New Heights

By Tumelo Setshogo, Mmegi/The Reporter, Gaborone, 8 April 2008

The executive secretary of the Southern African Customs Union (SACU) Tswelelopele Moremi has said the organisation has achieved a lot since the establishment of its secretariat.

She told a media briefing on the outcome of the 14th SACU council of ministers meeting in Phakalane Golf Estates on Friday that SACU has made great strides in the development of various instruments like tariff board, national bodies, SACU single origin, mutual administration document and capacity building. "Establishment of a permanent institution which in this case is the secretariat, mobilisation of technical liaison committees and the commission and the common external tariff have been achieved to date," she said.

The Commissions and Technical Liaison Committees (CTLC) are a continuation of institutions that existed under the 1969 SACU agreement which provides a broad mandate. Moremi said the work of the Tariff Board, the Tribunal and the Common Negotiating Mechanism (CNM) will be broadened under new initiatives.

She added that SACU has facilitated trade and adopted five customs initiatives which are, one stop border post arrangement, single administrative document, joint border controls cooperation programme, electronic data interchange and capacity.

Speaking on cross membership-when members belong to other regional integration arrangement which have plans to establish a Customs Union(CU), SACU chairman Baledzi Gaolathe said each country will have to make up its mind and stick to one CU.

All SACU members belong to SADC, which has plans to form a CU next year, while Swaziland is already a member of Comesa. Comesa plans to establish a CU by the end of this year.

As a way of enhancing the five adopted customs initiatives, SACU is working with the World Customs Organisation (WCO) to develop a Custom Reform and Modernisation Program. Moremi said that they anticipate the implementation of these initiatives will reduce transaction costs and create a more predictable environment for conducting trade in SACU.

However, she lamented that the implementation pace is slower than expected and called for varying levels of capacity in member states to implement and finance programmes.

Moremi said that the debate on deepening regional integration and future revenue sharing within SACU and SADC is needed to make sure that the potential decreasing of customs revenue is prevented by identifying alternative revenue resources.

Moremi said the council of ministers encouraged member states to negotiate to preserve the integrity of SACU, specifically in Common External Tariff (CET) to achieve the fundamental aim of the 2002 agreement which is to integrate SACU into the world economy through trade negotiations.

She said that efforts, which are to ensure the integrity of CET and address member states’ interests in their trade with the EU are underway to address the challenges posed by the SADC-EU EPA negotiations. Moremi said the meeting emphasised the importance of ensuring that existing and future economic arrangements contribute to deepening of regional economic integration. The next meeting will be held in Lesotho at a date to be confirmed.

The meeting is attended by ministers of finance and trade from the five member states namely, Botswana, South Africa, Lesotho, Swaziland and Namibia.

Mozambican plant could offer competition to ArcelorMittal SA

By Carli Lourens, Business Report, April 15, 2008

South Africa may decide in September on the feasibility of helping to build a new steel plant to compete with the country's biggest steel maker, ArcelorMittal South Africa.

The government was considering "several initiatives", including a plant in Mozambique, to expand its manufacturing industry by making steel available at prices below those charged by ArcelorMittal SA, Mandisi Mpahlwa, the trade and industry minister, said yesterday.

ArcelorMittal SA is appealing a record R691.8 million fine imposed by antitrust regulators last September for "excessive pricing". The company will raise prices next month for a fourth consecutive month.

South Africa held talks with companies including Tata Steel over a plant to rival ArcelorMittal, the department said in September.

A mill in Mozambique, similar to the one investigated by Enron Corporation in 1997, was being studied by state mining research firm Mintek, together with the Mozambican government, Mpahlwa said in September.

Palabora Mining, the local copper producer owned jointly by Rio Tinto and Anglo American, said a year ago that it might develop a steel plant at the port of Maputo.

Mozambique: $8b oil refinery deal signed

In an effort to reduce the country's dependency on imported fuels, Mozambique's government has approved the construction of an oil refinery in an $8 billion deal.

The refinery in southern Maputo province will be capable of producing 350,000 barrels of refined fuel per day when it becomes operational in seven years, Mozambique's energy ministry said in a press release.

The agreement with OILMOZ, the company developing the project, was signed on Monday, it said.

Leonardo Simao, one of the founders of OILMOZ, told Reuters that the project would be financed through loans from foreign banks. He said environmental and feasibility studies would be completed within two years.

The OILMOZ development is the second oil refinery project announced by Mozambique in the past year.

The Mozambican government and U.S. firm Ayr Logistics signed a $5 billion deal last October for the construction of a refinery in Nacala-a-Velha in the northern Nampula province.

It will have an expected output capacity of 300,000 barrels per day when it starts production in 2005.

The refineries could help ease an energy crunch in Mozambique, which has enjoyed an economic boom since the end of a 17-year civil war in 1992.

The former Portuguese colony has limited energy supplies, making it reliant on foreign oil and gas. It also has faced rising petrol prices and frequent shortages at pumps, prompting fears that its economic growth could slow.

A slew of refineries have been proposed in sub-Saharan Africa but analysts say few will go ahead due to rising costs and financing difficulties.

In another development the southern African country has been ravaged by reports of exploitation and human trafficking.

The issue of exploitation and abuse of human trafficking victims, mainly taken from Mozambique to South Africa, has seen a surge in media headlines but experts warn this is just "the tip of the iceberg."

There have been 52 suspected cases of trafficking involving young women and children since the beginning of the year, according to Save the Children-United Kingdom (SC-UK) Mozambique. The latest involved the sexual enslavement of three Mozambican children, aged between 14 and 16, at a brothel in South Africa's capital, Pretoria.

SA: Out of negative trade territory

Le Roux, Mathabo; Business Day (Johannesburg) - 17/03/2008

Trade activity in the country slowed substantially towards the end of 2007, but seems now to be “clawing back, indicating a likely bottoming out of trade conditions”.

The South African Chamber of Commerce and Industry (SACCI) said on Thursday that its trade activity index, which measures trade conditions across the economy, recovered from 44 in December last year to 48 in January, and levelled at 50 last month.

December’s figure was the lowest in over four years. The index was last that low in May 2003, just prior to interest rates declining during June of that year which set in motion the favourable trade conditions that lasted well into 2007. SACCI said that although the figure remained subdued in January, trade conditions now appear to be out of negative territory.

The sub-index on current volumes improved from a remarkably low 41 in December to 47 in January, further strengthening to 55 last month. Although not as strong as sales, the new orders sub-index recovered from 49 to 52 last month.

The trade expectations index has been more volatile, increasing to 57 in December, declining to 54 in January, and then recovering to 58 last month. According to SACCI, however, this is evidence that conditions might be stabilising at a somewhat improved level. Since July last year, when the index reached 67, it declined steeply to the more recent levels.

The sub-index on sales expectations reached 64 last month, recovering from 58 in January. Expectations on the new orders index improved by two points to reach a level of 60.

SACCI economist Richard Downing, commenting on the results, said that inflationary pressures remain a problem and currently appear to be gathering momentum.

Mauritius: development through trade

Business Day, 08 April 2008
SA faces competition in the bid to attract investment, writes Phil Alves.

“WE WANT Mauritius to be the gateway for east Asia into southern and east Africa,” Mauritius’s finance minister told the Financial Times last month. No wonder Mauritius is set to host one of five of China’s planned (and Chinese-financed) “special economic zones” (SEZs) for Africa.

But we’re supposed to be China’s gateway to Africa. That’s one of the reasons Industrial and Construction Bank of China (ICBC) bought such a large chunk of Standard Bank, right?

The Mauritian SEZ will provide space for a range of companies already present or planning to operate on the continent. China will fund and direct its establishment. Mauritius is said to be attractive because of its relative stability; and its “safe” yet not-too-big distance from those sorts of instabilities on the continent. Mauritius’s preferential access to European and North America markets presumably also played a role.

SEZs played a big role in China’s economic opening after 1978. They offered a way to experiment with rapid and deep liberalisation in a fairly controllable way. Whatever worked well was transplanted to other parts of the economy; whatever didn’t was scrapped. Some argue that they are now offering these lessons to Africa.

But Mauritius is already an open economy, having realised long ago that being small and far away in today’s world demands a Dubai or Hong Kong, or indeed coastal-Chinese, approach to economic development. It is also growing well already, and has a successful history with home-grown free trade zones.

So Mauritius isn’t in this for the policy lessons; the Chinese therefore can’t market it as yet another “help Africa help itself” initiative. This suggests the Shanxi Tianli Enterprise Zone is purely about business, and will provide Mauritius with a healthy dose of foreign direct investment.

Such business and investment is needed in SA too. SA is routinely told by foreigners that it is their “gateway to Africa”, and already offers the Chinese at least as much as Mauritius does in that regard. We also offer similar levels of preferential access to rich markets, and despite recent events, we’re politically and economically stable.

Politicians have expressed disappointment at the levels of Chinese fixed investment (excluding the ICBC equity purchase) in SA at present — we in fact invest more in China than vice versa. Given the proportions our trade relationship has reached and how much Indian companies, for example, are investing in SA (in large part to serve regional markets), one wonders what stops Chinese investors doing the same. One also wonders if an SEZ would improve things.

The answer is probably yes. But it isn’t clear that SA could support one. Hence the most likely reason why the planned southern African SEZ (there’s going to be one in each region of the continent) is going to Zambia is because we simply didn’t lobby for it.

Chinese SEZs are strong on free markets and weak on regulation. Hosting one here would require departures from standard policies and would surely encounter resistance from federation Cosatu, environmentalists and domestic businessmen (if denied access to the freedoms on offer).

Indeed, we would need to rewrite the rules for our own two industrial development zones (IDZs): Coega, which opened in 2005, and the older EL-IDZ (opened in 2002). They are clearly products of compromise, eliminating taxes on assets and imported inputs and offering a range of other incentives, but maintaining most of the protection and regulation — especially labour regulation — that is prevalent in the rest of the economy.

It is still early days, but so far neither has sparked much interest — and none from China itself, as far as I can tell — despite huge amounts of marketing. According to Coega’s 2007 annual report, just three investments are operational. And eight of the EL-IDZ’s 11 investors are in automotives, which receive large incentives under the MIDP anyway.

That raises questions concerning their efficacy, and in turn whether or not their design should be reconsidered. If we’re going to spend public money on these sorts of initiatives, we should try as best as possible to make them work well.

The potential in an export-oriented industrial park backed by Chinese commitment, run on Chinese logic, by Chinese managers if needs be, and free to import whatever it needs, is tantalising. On the other hand, the investments could flop, and the growth payoff might never come (China produces plenty of false starts in among its stellar successes). But in this case there are very few actual risks involved beyond failure — we wouldn’t be committing billions of rands, because the Chinese are financing these SEZs.

Besides, whatever happens, we would learn through experience, not debate, more about what the binding constraints to growing our tradable manufacturing sector really are. At the moment, it’s impossible to tell if it is poor infrastructure, crime, excessive regulation, an unfavourable exchange rate, overpaid middle-management, high unit-labour costs, fractious industrial relations, corruption, our natural resource endowment, excessive industrial concentration, or too little trade protection (or too much).

This would be valuable information, but can experimentation of this nature take place in our democratic developmental state ?

Knowledge is Africa’s most valuable asset

Deirdre Blain, 18/03/2008

AFRICA is poised for economic growth from an unlikely source — exporting knowledge rather than commodities.

According to the Interna tional Trade Centre (ITC) — an agency of the UN and the World Trade Organisation — knowl edge process outsourcing (KPO) is being hailed as one of the biggest areas of potential eco nomic growth for the continent.

A global demand study, com missioned by Geneva-based ITC, estimates that by 2010 KPO will be a $10bn to $15bn a year industry, with a projected annu al growth rate of 45%.

KPO is possibly a country's most valuable asset — its intel lectual capital. It refers to the trade in services — which in turn can be defined as any busi ness that holds the expertise to deal in the application of knowl edge and sell this skill globally, through technology and pre dominantly the internet .

The service sector deals in intangibles. Intellectual capital is its product and this is more valuable than the material goods we use daily .

"KPO is the outsourcing of knowledge-intensive business processes," says Emmanuel Bar reto, ITC senior adviser on trade in services .

"It is the trade in the intel lectual capacity essential to drive services. Basically it's ev erything you can't drop on your feet. It covers more than 155 subsectors, including construc tion, IT, engineering and medicine.

"Given the structure of ser vices, it is covered by SMEs and micro organisations.

"While business process out sourcing (BPO) is more con cerned with entering records on a database, KPO analyses that data , turning it into valuable business information."

SMEs are well placed to fulfil the requirements of the KPO business model because they are largely knowledge focused and can respond quickly to requests, which makes them highly competitive players.

"Service providers must be able to differentiate niche mar kets. They are experts at selling specialist knowledge."

He says one of the biggest problems for service providers is that there are no economic incentives for them.

"It's difficult for govern ments to understand and back the intangible. People are attached to the physical — soft ware products are sal able, but the skills to produce them have a much greater market value than the end result. To unlock the KPO opportunity requires a paradigm shift in business thinking ."

He says there are three main pillars to developing a sustain able KPO industry: education, a legal framework that protects the data used in the knowledge process and, most importantly, a technology infrastructure.

In SA's case the cost of broad band yet again raises its ugly head as an economic inhibitor.

While SA boasts the most so phisticated telecoms infrastruc ture on the continent the cost of bandwidth is estimated to be 10 times that of developed nations.

Although services — ranging from transport and telecommu nications to accountancy and call centres — account for more than half of the economic out put of African countries, African states have been slow to seize the potential of outsourcing to boost exports.

SA is considered the econom ic powerhouse of the continent but its outsourcing businesses employ less than 3% of the workforce. Therefore, although this country has more educated people per capita than its African neighbours, it still lags behind other emerging markets.

"The goal of the ITC is to open the eyes of the South African government to KPO and to help the country's SMEs to engage in global markets.

"KPO is a whole new busi ness proposition with immense potential for job creation, gen erating foreign exchange that in turn contributes to economic growth, poverty alleviation and social upliftment. It also pre sents enormous opportunities across the board in any society for all sorts of professions and people. Anything that can be digitalised can be done by KPO."

Barreto says that many coun tries appreciate the value of intellectual capital.

ITC research reports indicate that the frontrunners in the sup ply side of the KPO industry are India, China, Mexico, Russia and the Philippines, while chal lengers include Brazil, the Caribbean, Eastern Europe, Malaysia, SA and Vietnam.

Demand mostly comes from developed nations for whom KPO provides a competitive cost reduction, sustained economic growth, improved efficiency lev els and helps to address existing skills shortages.

Developing countries are al so important markets for knowledge services. South African knowledge of risk as sessment could be sold to African financial institutions, for example.

Sasol va produire du carburant pour l’aviation à base de charbon

Le géant pétrochimique sud-africain va produire du carburant pour les avions à partir de son procédé unique au monde qui lui permet de produire des carburants à partir du charbon. Mise au point au temps où l’Afrique du Sud était soumise à un embargo pétrolier, cette technologie se révèle être une technologie d’avenir aujourd’hui.

Les pays grands producteurs de charbon pourraient l’adopter, et les rejets de gaz plus pauvres en sulfure que les carburants traditionnels issus du pétrole brut sont compatibles avec le respect de l’environnement. Le carburant sera produit à l’usine de Secunda dans la province du Mpumalanga et approvisionnera les avions au départ de l’aéroport OR Tambo de Johannesburg dans un premier temps.

Source: Business Day

La vie chère n’épargne pas l’Afrique du Sud

Les prix des produits alimentaires ont augmenté en moyenne de 14% en février 2008. Le maïs (un produit alimentaire de base), la viande, le lait, les œufs, les légumes deviennent de plus en plus chers.

La sécheresse dans les pays producteurs, une forte demande mondiale ont fait exploser les prix. Le Président de la Banque mondiale, Robert Zoellick a plaidé pour une réponse mondiale face à l’escalade des prix qui « aggrave la pénurie, la faim et la malnutrition ».

La crise risque de durer et il appelle les dirigeants de chaque pays à la vigilance et à des réponses plus adaptées aux protestations populaires contre la vie chère. La réponse à cette crise sans précédent doit mener à réfléchir « à une nouvelle vision de la politique alimentaire mondiale « qui doit prendre en compte les facteurs de l’énergie, des rendements, des investissements, du changement climatique, de la marginalisation des femmes et des pauvres ».

Dans l’immédiat il appelle les pays riches à donner les 500 millions de dollars qui manquent dans les caisses de la FAO pour aider les plus démunis à se nourrir.

Source: Business Day

Zimbabwe deadlock deepens, regional concern grows

Reuters, 09/04/2008

Zimbabwe's election deadlock deepened on Wednesday, increasing fears of bloodshed, and Zambia called an emergency regional summit to discuss the crisis.

Justice Minister Patrick Chinamasa said ruling ZANU-PF party tallies of the result of the March 29 presidential election showed a runoff would be necessary between President Robert Mugabe and opposition leader Morgan Tsvangirai.

"None of the candidates has been able to secure polling required by our law in order to avoid a runoff," he said.

Chinamasa added that the electoral commission had ordered five constituency recounts in a parallel election in which ZANU-PF lost control of parliament for the first time.

But the opposition Movement for Democratic Change rejected both a runoff and recounts, saying it would only accept an outright Tsvangirai victory as shown by its own tallies.

"We won these elections, Morgan Tsvangirai won this election without the need of a runoff and we will not accept any other result," said MDC Secretary-General Tendai Biti.

Official results have still not been released from the presidential poll 11 days after the vote and the MDC says Mugabe is prolonging the delay while he plans a violent response to his biggest defeat since taking power in 1980.

As government and opposition traded barbs, dashing any hope of quick action to turn around a ruined economy, concern increased among Zimbabwe's neighbours.

In the first direct regional intervention, Zambian President Levy Mwanawasa called a meeting of Southern African Development Community (SADC) leaders for Saturday to formulate a concerted response. Mwanawasa is current chairman of the body.

Mwanawasa's call came after Jacob Zuma, leader of South Africa's ruling African National Congress, said the results must be released, signalling a new, more robust reaction to the crisis than President Thabo Mbeki who favours "quiet diplomacy".

Zuma, who rivals Mbeki as the most powerful man in South Africa and is the frontrunner to succeed him in 2009, told the Star newspaper: "I think the Zimbabwe Electoral Commission should have announced results by now."

DEEPENING PROBLEMS

Mwanawasa told journalists in Lusaka: "Because of the deepening problems in the country, I felt that this matter should be dealt with at presidential level".

SADC has been criticised in the past for failing to pressure Mugabe despite the collapse of his country's once prosperous economy, which has sent millions of refugees fleeing into South Africa and other neighbours.

Mwanawasa briefly broke ranks with other leaders last year when he called Zimbabwe a "sinking Titanic" before getting back in line under pressure from other SADC leaders.

The MDC has called on African states to prevent a slide into bloodshed. It urged the SADC summit to ask Mugabe to step down.

Chinamasa told reporters ZANU-PF was gearing up for a Mugabe-Tsvangirai runoff. He rejected MDC victory claims and said there was no need for international intervention.

"Nothing has transpired during and after the election to disturb international peace and security," he said, accusing the MDC of echoing calls by its "allies" in Washington and London.

Chinamasa said the electoral commission had rejected ZANU-PF appeals in seven other parliamentary constituencies but was still considering nine others. The combined opposition has a 12 seat majority in parliament with an independent holding one.

Mugabe's critics blame him for reducing the population to misery by mismanagement that has wrecked the Zimbabwean economy, now suffering the world's highest hyper-inflation, chronic shortages of food and fuel and a near worthless currency.

He says Western sanctions are to blame.

Authorities showed little sign of buckling under the pressure to release the outcome of the election.

A lawyer for Zimbabwe's electoral commission said it would be "dangerous" for the High Court to order the release of presidential results as demanded by the MDC.

The judge in the case said on Wednesday the case was urgent and he would "exert himself" to make a ruling next Monday.

South Africa: Tricky Trade Negotiations Need More Discussion

Business Day (Johannesburg), 8 April 2008

EUROPEAN Union (EU) trade commissioner Peter Mandelson was in the region last month to attend a meeting of Southern African Development Community (SADC) trade ministers. Mathabo le Roux quizzed him about the economic partnership agreements (EPA).

There has been much acrimony between the EU and SA over the EPA and it seems to be at the expense of the region. Can you comment?

There are issues of concern for SA on the interim EPA (IEPA), but my impression is that there are also broader issues for SA: its own economic interests, its wider regional role, its south-south interests and its interests in the EU. Some of these may be conflicting and it will take time to work out these wider issues. It's important to keep the discussions going, though. SA is our main trading partner on the continent.

We agreed to keep each other informed to see how best to deal with regional integration concerns SA has, but not at the expense of development-friendly aspects of the IEPA, which I feel a sense of responsibility to SA's neighbours to maintain. If we all act in good faith I am confident we can succeed despite the complexities.

The SADC configuration is artificial as not all of SADC is represented. There's also a concern that the Southern African Customs Union (Sacu) is obscured in that configuration, putting regional integration processes at risk. Do you see Sacu in crisis?

I would not wittingly do anything to jeopardise the existence of Sacu, but the tensions and fragility of the union have not been created by the EPA negotiations. If anything we've moved through three overlapping trade regimes -- EBA (Everything but Arms), Cotonou and the TDCA (Trade, Development and Co-operation Agreement) -- to two: the EPA and the TDCA. And we're trying to, as far as we can, retrofit the terms of our EPA into the TDCA to make the two as smooth and harmonious as possible. But it does require everyone rowing in the same direction. I think we can repair the grave relations of the recent past and act together in a way that serves the cause of regional integration and Sacu's future, but it requires goodwill, give-and-take and recognition that the development needs of the region's most needy members must be paramount.

Can you comment on the intra-regional dynamic?

I think there's a genuine desire against the backcloth of SA's economic interests to pursue development strategies and ideas friendly to the region as a whole. I think president Mbeki is a man of genuine conviction in his development ideas and goals. But there are these wider issues about SA's economic interests, its desire to see greater regional integration, its development goals as well as its desire to see greater south-south integration, that SA needs to resolve as it approaches the next step to deepen the EPA so it gives more to the countries that need it most.

The whole idea of the EPA is to harness trade to the cause of development, to create opportunities for trade linked to capacity building and development cooperation, which offers a much better deal than the old-style tariff preferences of Cotonou.

I was struck by President Mbeki's real concern about the need to see greater foreign direct investment in its neighbours. The point is, that too is my concern. I would like to see greater investment in the region because that's the basis for future development, employment and economic growth.

That's why I've placed such an emphasis on services. They will put in place conditions of rules concerning investment that offer predictability and stability for investors in the region. To exclude services and investment and those rules is tantamount to saying the development of those countries would be slower and more haphazard. When ministers from these countries say this to me I have to pay attention. They want to address these issues for the sake of their development. If SA doesn't want to enter these negotiations I also have to respect that.

I don't think SA is pursuing its interests at the region's expense, but there will be a multiplicity of interests and how you reconcile them and tie them together to move forward as part of one strategy, one agreement, is challenging.

There are some concerns about the EC's insistence on treating SA differently from the region on market access. The argument is that Sacu does not discriminate between individual EU countries and because it is a customs union it should enjoy the same uniform treatment from the EU. Can you comment?

First, SA already has a privileged and preferential trade agreement with the EU. I think it would be wrong to try and use the EPA as a way of renegotiating that agreement, or as an opportunity for SA to pursue its own designs and ambitions either unilaterally or at the expense of others in Sacu.

Having said that, if we could re-engage SA in the negotiations for a wider and deeper EPA I hope it would be possible to build on the terms and find ways to increase SA's access to Europe's markets. I don't underestimate the sensitivity of this to some (EU members) but we would like to look for instance at some agricultural areas, or fisheries or industrial goods in which SA felt it would benefit directly and commercially from engaging in the EPA and help us to take that forward.

There were benefits and advantages for SA agreed to in the IEPA. I would hope those could be improved for SA in further negotiations. I am not sure that those were always recognised by SA and the business community as a whole. Frankly, I was surprised by the lack of recognition by some in the business community of the advantages for SA of entering the IEPA, even more so in the case of the wider EPA. I for instance don't understand, although I respect the decision, why SA should remove itself from the services negotiations.

In the WTO SA has taken a relatively ambitious position. Why should it want to deny itself the benefits of opening services in the EPA context?

On some of the contentious issues in the text -- why did you ask for the MFN clause?In denying ourselves access in the short term we were worried we would disadvantage ourselves permanently when countries engage negotiating partners with whom we are direct competitors, giving them benefits we had denied ourselves, and would lead to a permanent discrimination against us in local markets. That's why we asked for the MFN clause. Even then, the offer I made to SA was only to ask them to consult the EU in the context of these trade negotiations. It was a concession that went beyond my negotiating brief: I softened the request to bring SA on board and I gave SA's negotiators plenty of time to reflect and consult on this, but they chose to reject what was a very accommodating offer on my part.

The terms of services liberalisation are also controversial, because it seems the EC would have to approve sectors the region suggests to open. Isn't this interventionist?

The first sector to be liberalised is more likely to be one that is ready, where you can build up some experience. It's not a question of us trying to impose our will driven by our interests. You have to be sensitive and careful about the sectors you open: how you do it, how quickly and in what order. The whole point of services liberalisation is to be development-friendly, to underpin the development of the economy as a whole. It cannot be comprehensive, it cannot be overnight. My whole approach to services liberalisation is a progressive one in two senses of the term: progressive in the sense that it is in the interests of the majority of the people, but progressive also that it is incremental. The demand (for services liberalisation) is not a mercantilist one. I can't emphasise this enough. If I had really pursued Europe's interests I would have negotiated very differently. If it was a classic trade deal the outcome would have been different.

We want to see this region develop, not go backwards. It is in the interest of the region, it is in the interest of our partnership with this region and it is in our own long-term interest. To focus on some short-term market access instead of the longer term development of the economy as a whole would make no sense at all.

Secondly, we have our pride. We are the most development friendly set of developed countries in the world. Our markets are more open than any others in the world; we give more development assistance than the rest of the developed world put together ... our value system is on a par with our economic interests.

I'm not saying we are selfless. What I am saying, however, is that you have to see us and avow for the fact that everyone is going to judge us against a wider value system than simply our short-term interests.

Power to the workers: South Africa's largest black empowerment deal

From the Economist Intelligence Unit, Apr 7th 2008

South Africa's largest black empowerment deal to date has received a broad welcome. The Sasol transaction has set a new benchmark for future arrangements.

South Africa’s biggest ever Black Economic Empowerment (BEE) transaction, involving the transfer of R25.9bn (US$3.2bn) of assets by synthetic fuel maker Sasol, is set to start in May and be completed by the end of June. Under the deal, dubbed “Inzalo” (new beginning), Sasol plans to allocate 63m shares—10% of issued capital—in four portions: 4% to workers, 3% to ordinary black South Africans, 1.5% to Sasol’s black business partners and 1.5% to the Sasol Inzalo Foundation, which is being set up to boost education and skills. The shares are valued at R366 (US$46.5) each, representing a 10% discount on the recent market rate. When originally unveiled last year the transaction was valued at R18bn, but has since risen by nearly R8bn thanks to the improvement in Sasol’s share price. All told, the transaction will result in black ownership of 8.3%, and an effective black ownership of 19.7% of Sasol's South African business.

Sasol’s 27,000-strong workforce will gain the most: this includes the firm’s 10,000 white employees, although their portion will not earn Sasol any empowerment credits. The 3% share allotted to black South Africans will take the form of a public offering (managed by the state-run National Empowerment Fund). Some shares will be subsidised by Sasol, while others will be sold at the full cash price; in both cases, investors will be locked-in for two to three years before the shares can be re-sold, while a new black-based trading system is subsequently planned to try to keep the shares in black ownership for as long as possible. Bids for small volumes will be given priority if the offer is oversubscribed. The 1.5% allocated to Sasol’s black partners will be spread among numerous entities and individuals, including suppliers and customers, and broad-based BEE groups that focus on skills development. Notably, Sasol will fund approximately 80% of the entire deal, with most of the remainder coming from the public share offering.

Not the usual suspects

Apart from being the most valuable BEE deal to date, the Sasol transaction is notable for being very broad-based—the firm envisages 1m potential beneficiaries—while the high-profile BEE "personalities" that have played a dominant role in past deals (leading to accusations that BEE has benefited only a select few) are largely absent in this case. As a result, the deal has won widespread support, from the public as well as the government and trade unions. The Sasol transaction confirms the trend towards greater use of both employee share ownership plans (which are seen as boosting productivity) and targeted public share offerings in BEE packages, and this is likely to be reflected in coming deals by other firms: Sasol has set a new benchmark. The costs to Sasol’s existing shareholders are relatively high and they could still block the deal, but there is a perception the price is worth paying to ensure the company’s future.

Le Mozambique va représenter la SADC à l`OIT

Lundi 7 Avril 2008
Le Mozambique a été choisi pour représenter la région SADC (Communauté de développement d'Afrique australe) au Conseil d'administration de l'Organisation internationale du travail (OIT) basée à Genève, en Suisse.

D'après un communiqué de presse du ministère du Travail, la décision a été prise unanimement et par acclamation, jeudi 3 avril, lors de la réunion des ministres du Travail et de l'Emploi de la SADC à Maseru, capitale du Lesotho.

La ministre du Travail du Mozambique, Helena Taipo, a remercié les autres participants pour leur confiance envers le Mozambique.

Mme Taipo a promis que le Mozambique ferait de son mieux pour représenter la région avec succès "mais avec votre aide, car c'est un devoir ! pour nous tous de faire en sorte que cette région soit forte et mieux représentée au plus important forum mondial ayant trait à l'emploi, au travail et à la sécurité sociale".

"Le choix du Mozambique une fois de plus place ce pays dans une posture de prestige sur la scène internationale", a ajouté Mme.Taipo.

Le Mozambique a déjà un représentant résident à Genève, qui agit comme un lien entre son pays et le siège de l`OIT.

Le Mozambique est devenu membre adjoint du conseil d`administration de l'OIT en 2006 et maintenant il remplace l`Afrique du Sud en tant que membre titulaire, représentant la région SADC.

Les pays de la SADC en conclave sur la reforme agraire

04-04-2008

Les pays de la Communauté pour le développement de l'Afrique australe (SADC) ont tenu jeudi une réunion à Johannesburg sur la réforme agraire de la région.

Objectif, examiner les progrès enregistrés dans l'établissement d'un mécanisme sur la réforme agraire régionale. La réunion a été présidée par le ministre zambien des Terres, Bradford Machila.

La Zambie passe le témoin au Lesotho pour la présidence du Secteur de l’Emploi et du Travail de la SADC

APA News, 05/04/2008

Lesotho a été élu vendredi pour présider au Secteur de l’Emploi et du Travail de la Communauté de Développement de l’Afrique Australe (SADC-ELS), prenant le relais à la Zambie qui avait pris la direction du secteur l’année dernière.

En passant le témoin au Lesotho pour la présidence du SADC-ELS à la fin de la rencontre de cinq jours, le Ministre zambien du travail et de Sécurité Sociale, Ronald Mukuma, a averti que le Lesotho fera face à beaucoup de défis au cours de son mandat.

Mukuma a lancé un appel au Lesotho à maintenir le dynamisme en assurant le suivi des programmes approuvés sur l’Emploi et le Travail au sein de la SADC en 2008-2009 et qui ont fait l’objet de la facilitation de la Zambie.

Il a déclaré que la Zambie avait accompli un certain nombre de réalisations l’année dernière au cours de son mandat telle que l’approbation du code de la SADC sur les questions liées à la sécurité sociale et à l’emploi qui ont à présent un impact sur les revenus et la qualité de vie des personnes.

« J’exhorte les pays membres à envisager le développement possible d’un cadre global sur la migration des travailleurs pour faciliter un développement économique durable. Cela devrait inclure l’élaboration et l’adoption d’un protocole régional sur la migration des travailleurs », a-t-il ajouté.

Par ailleurs, Mukuma a indiqué que la SADC-ELS a besoin de parvenir à une position commune sur les questions importantes du continent au niveau de l’Organisation Internationale du Travail, lors de la préparation de la rencontre de l’Union Africaine prévue en fin avril.

Le Ministre lesothan du travail et de l’emploi, Refiloe Masemene, a déclaré que le Lesotho est prêt à commencer là où la Zambie s’est arrêtée lors de son mandat d’une année à la tête du secteur.

Il a par conséquent lancé un appel à un soutien régional des pays membres pour la facilitation de la productivité et de l’amélioration du travail et de l’emploi dans la région.

Le but de la rencontre de la SADC-ELS était de discuter des questions du travail et de l’emploi en Afrique Australe.

La lutte contre le chômage endémique devrait également aider à lutter contre la pauvreté qui concerne 40 pour cent des 233 millions d’habitant que compte la zone.

Les Etats membres de la SADC sont : Afrique du sud, Angola, Botswana, Ile Maurice, Lesotho, Madagascar, Malawi, Mozambique, Namibie, RDC, Swaziland, Tanzanie, Zambie et Zimbabwe.

Mozambique signs $8 bln oil refinery deal

By Charles Mangwiro, Reuters, 03/04/2008

Mozambique's government has approved the construction of an oil refinery in an $8 billion deal designed to reduce the energy-hungry southern African nation's dependency on imported fuels.

The refinery in southern Maputo province will be capable of producing 350,000 barrels of refined fuel per day when it becomes operational in seven years, Mozambique's energy ministry said in a press release.

The agreement with OILMOZ, the company developing the project, was signed on Monday, it said.

Leonardo Simao, one of the founders of OILMOZ, told Reuters that the project would be financed through loans from foreign banks. He said environmental and feasibility studies would be completed within two years.

The OILMOZ development is the second oil refinery project announced by Mozambique in the past year.

The Mozambican government and U.S. firm Ayr Logistics signed a $5 billion deal last October for the construction of a refinery in Nacala-a-Velha in the northern Nampula province.

It will have an expected output capacity of 300,000 barrels per day when it starts production in 2005.

The refineries could help ease an energy crunch in Mozambique, which has enjoyed an economic boom since the end of a 17-year civil war in 1992.

The former Portuguese colony has limited energy supplies, making it reliant on foreign oil and gas. It also has faced rising petrol prices and frequent shortages at pumps, prompting fears that its economic growth could slow.

A slew of refineries have been proposed in sub-Saharan Africa but analysts say few will go ahead due to rising costs and financing difficulties.

ZIMBABWE: War veterans threaten violence

4 April 2008 (IRIN)

Veterans of Zimbabwe's liberation war vowed to seize the remaining white-owned commercial farms if President Robert Mugabe loses the expected second round of a presidential ballot.

Opposition parties have taken control of parliament for the first time since Zimbabwe won its independence from Britain in 1980, but the results of the 29 March presidential ballot have not yet been officially released by the Zimbabwe Electoral Commission (ZEC).

The reappearance of the war veterans on the political scene, who led the invasions of white farms in 2000 soon after Mugabe lost a referendum on a new constitution, has heightened fears that the ruling ZANU-PF will unleash state violence to coerce the electorate to ensure Mugabe wins the run off ballot.

According to independent assessments, Morgan Tsvangirai, leader of opposition Movement for Democratic Change (MDC), received 49 percent of the presidential vote, Mugabe, who has been in power for 28 years, secured 42 percent of the ballot.

The MDC on 4 April filed a High Court application in the capital Harare, to force the ZEC, whose executive committee are appointed by Mugabe, to immediately release the results of the presidential vote.

At the same time ZANU-PF's politbureau, the party's most powerful decision making body, held a five-hour meeting and decided that Mugabe should contest a run off vote for president should none of the candidates attain the 50 percent plus one vote required for an outright win.

The return of British settlers

War veterans chairman, Jabulani Sibanda told IRIN the recent poll was an attempt to take the country back to 1890 when British settlers first occupied the territory.

Sibanda said: "It has come to our realisation that the elections were used as another war front to prepare for the re-invasion of our country. A large number of the remaining white commercial farmers were seen celebrating the alleged victory of Morgan Tsvangirai.

"Results are just figures but an invasion is physical. We will deal with that which is tangible."

Sibanda told IRIN the announcement by the MDC, who claimed Tsvangirai had won the presidential ballot without the neeed for a second round of voting, and before the ZEC - who has yet to announce the results - was provocative.

"As freedom fighters, we feel compelled to repel the invasion. We can not just sit back when there are all these provocations," he said. In 2000 Mugabe turned to former guerillas to save his political career after he had just lost a referendum.

The MDC leadership was not available for comment and were engaged in meetings, apparently concerned with taking over the reigns of government.

In the parliamentary elections Mugabe's ZANU-PF won 97 seats, compared to 99 seats secured by the MDC led by Tsvangirai, while an MDC breakway faction won 11 seats.

Zimbabwe Civil Society Organisations, an umbrella body, warned ZANU-PF against embarking on violence as an alternative."We have it on good and reliable authority that there are plans to embark on a retributive and violent campaign before and after the final senate and presidential results are announced.

A second round of voting, according to the constitution, should be held within 21 days, but ZANU-PF has warned that this might be delayed to 90 days because there was not enough money to hold the run off ballot.

"This excuse would not be acceptable given the anxiety that is gripping the nation and given that in essence, such a move would be undemocratic and could create a serious constitutional crisis," said the umbrella group.

Le temps de l’énergie bon marché semble fini pour l’Afrique du Sud

Les syndicats et le patronat ont sévèrement critiqué la demande d’Eskom d’augmenter les tarifs de l’électricité de près de 60%.

Eskom avait déjà obtenu de l’organisme de régulation, National Electricity Regulator of South Africa, l’autorisation d’augmenter les tarifs de 14% en décembre 2007. Pour le Cosatu, cette demande d’augmentation est « monstrueuse et sera dévastatrice pour les plus ". Le patronat trouve la proposition d’Eskom mal venue au moment où la compagnie n’arrive plus à fournir l’énergie nécessaire à l’industrie. Le temps de l’énergie bon marché semble bien fini, ce qui peut faire craindre des répercussions négatives sur les investissements étrangers.

Source: Cosatu Media Monitor

Afrique du Sud : embellie sur le chômage

Selon les dernières statistiques, le taux de chômage est passé de 30,5 % en septembre 2006 à 26,8% % en septembre 2007. Cette amélioration varie selon l’âge et le sexe des demandeurs d’emplois. Les femmes sont plus touchées par le chômage que les hommes et les femmes noires restent les plus vulnérables, avec un taux de chômage qui atteint 31,2 %

Deux demandeurs d’emplois sur trois sont des femmes noires.

Si le taux de chômage des jeunes de 15 à 24 ans est passé sous la barre des 50% , les jeunes ont encore bien du mal à trouver un emploi. Le chômage frappe toujours au même endroit : les provinces rurales les plus pauvres, le Kwazulu-Natal et le Limpopo.

Les secteurs d’activité créateurs d’emplois sont l’agriculture, les services et les emplois de domestiques qui sont passés de 886 000 à 1,1 million. L’amélioration du marché du travail est sensible, toutefois il reste encore près de 4 millions de chômeurs et ce marché porte encore les caractéristiques du système d’apartheid.

Source: Cosatu Media Monitor

Samroc to buy DRC oil firm for R516,9m as its ditches mining focus

JSE-listed Samroc, which is ditching mining for Democratic Republic of Congo (DRC) oil concessions, said on Wednesday that it had agreed to buy South Africa Congo Oil Company (SacOil) in a R516,9-million cash and share reverse takeover.

It said in February that it was planning to buy SacOil, also taking up its name.

Samroc would now conduct a due diligence on the DRC firm's assets, and put the takeover to shareholders, it said in a note to the JSE.

"The objective of the transaction is to reverse SacOil into a listed vehicle, so as to enable SacOil and its partners to effectively fund an exploration and development programme in the Albertine Graben area," the firm stated.

The company would sell its mineral assets into a dormant subsidiary Bushveld Pioneer, which it would list separately on the Johannesburg bourse. It said that it was in advanced talks to this end.

In terms of further agreements, Samroc advanced a total amount of some $3,5-million, payable direct to the DRC government "in lieu of signature bonus obligations for the oil concessions".

"The loans advanced are secured by pledges and sureties normal for a transaction of this nature. On the conclusion of the acquisition, the amounts advanced will be extinguished," Samroc said.

The agreement to buy SacOil was dependent on a list of conditions being fulfilled by the end of May, including the due diligence, approvals for listing new shares on the JSE, and the assignment to SacOil of all rights in respect of the oil concessions.

"The current initiative is intended to pursue a strategy that will translate Samroc into a pan African controlled oil and gas focused company with exploration and, in time, oil and gas producing assets in Africa," said the company.

Samroc said previously that it had applied to the JSE that its listing be shifted to the bourse's Oil & Gas sector, where it would join Oando and Sasol.

South Africa: Private sector to participate in govt's undersea cable

By Christy van der Merwe, Engineering News, 27/03/2008

State-owned broadband infrastructure company Broadband Infraco has secured private sector participation from companies for its submarine cable project from South Africa along the West Coast of Africa to the UK.

The companies expected to sign a shareholders' agreement on April 15 were Telkom, Neotel, Tenet, Tata Communications, Multichoice, Vox Telecom, Internet Solutions, Gateway Communications, Equator Telecom Nigeria, and British Telecom.

Broadband Infraco, through the Department of Public Enterprises, would hold a 26% stake in the cable and its capacity, and 74% of the total capacity was earmarked for the private sector.

A memorandum of understanding outlining the principles of operation of the system was signed at the end of February between Broadband Infraco and the private sector participants. The shareholders' agreement would be signed on April 15, with financial close on the same day.

Described as an atypical private equity project, the percentage of the total capital input invested by a company would translate into the percentage of the broadband capacity that the company would get once the cable was operational.

It was understood that the principles agreed allow each participant to determine their own market pricing of bandwidth on the system.

Bids from suppliers to construct the system were already under evaluation by the consortium members, and supply contracts were scheduled to be signed before end April.

The 3,8-Terabit cable, which was expected to enter service during the first half of 2010, would either run from the existing SAT-3 landing station in Melkbosstrand, or from a new landing site adjacent to Koeberg power station in the Western Cape, up along the West Coast of Africa to the UK.

The system made provision for about 12 landing stations along the African West coast, which could be built at a later stage.

Lowering the cost of broadband was viewed as important in stimulating investment in the country, and an undersea cable would rapidly broaden the international bandwidth supply base in South Africa, which could lead to more competitive pricing.

Foreign investors cautiously eye Zimbabwe with new interest

By Peter Apps, Business Report, 03/04/2008

Having long written Zimbabwe off as one of the least appealing investment destinations, international investors are starting to show interest as they suspect the end of President Robert Mugabe's rule is approaching.

After iron-fisted farm seizures and slum clearances raised fears over the safety of outside holdings, even risk-hungry investors avoided an economy with 100 586 percent inflation.

But sentiment is starting to shift after Mugabe failed to win a clear majority in elections on Saturday, paving the way for a likely run-off with Movement for Democratic Change (MDC) leader Morgan Tsvangirai.

"It looks like the endgame is very close," said Renaissance Capital strategist Richard Segal. "There is certainly more interest. Hopefully we'll have a unity government, with a reasonable stance on property rights. That could work out quite well for foreign investors."

Renaissance, a Russian investment bank aiming to become Africa's market leader, says it has been pushing Zimbabwe as a good opportunity for six months, with interest rising in the run-up to the polls.

Renaissance snapped up a stake in CBZ Holdings sold by Absa last year, while African Banking Corporation says Citigroup has approved a $25 million (R195 million) purchase of a 20 percent stake.

Segal said the end of Mugabe's 28-year rule could see a donor conference bringing in about $1.5 billion of foreign aid.

And two-thirds of the 3 million Zimbabweans who had left during the economic crisis could return over time, he said, potentially bringing home between $2 billion and $3 billion.

China invested $1.6 billion in Zimbabwe last year, it says, and analysts say this may increase.

Zimbabwean equities already look cheap, according to analysts, and there is enthusiasm for stocks such as cellular operator Econet and retail and hotel chain Meikles Africa.

African equities rose 60 percent last year and the continent expects ongoing growth of 7 percent, but Zimbabwe has long bucked the trend. Its gross domestic product (GDP) has contracted each year since 2000, bottoming out at 10.4 percent in 2003. The International Monetary Fund expects GDP to fall 4.5 percent this year.

Bond brokerage Exotix said it had received new inquiries for prices of Zimbabwean traded debt, although as far as it knew none existed. The nation had outstanding medium- and short-term debt of $4.3 billion, it said, 95 percent of it official debt with multilateral lenders.

Given the scale of the slump, most are cautious. Some say it would take much more than Mugabe's exit to tempt them in. The presence of Zanu-PF names in a unity government could further spook investors.

With Kenya's debacle fresh in the mind, one Africa fund said it was refusing to comment on Zimbabwe, while another major bank said it would not talk for fears over staff safety.

"It's not a place we will rush to take a look at," said Aberdeen Asset Management emerging equities fund manager Andrew Brown. "You'd have to see inflation come under control and the business environment improve. Political change might be the catalyst, but we want to stand back. It's more the sort of place you would find private equity."

Others have taken a dip. London-listed Mwana, which has a nickel mining project in Zimbabwe, climbed 20 percent in early trade on Tuesday on talk of an MDC victory.

"Once [Mugabe] goes, there will be a rush to get in," said one South African analyst. "People who are already positioned will make a lot of money."

UK-based Lonrho last month unveiled plans to raise $140 million to expand in Zimbabwe.

With its gold, nickel, platinum, palladium and ferrochrome reserves, Zimbabwe could benefit from continued high global commodity prices, but huge constraints remain.

Analysts warn that the electricity system is failing to supply a manufacturing sector that has shrunk by 70 percent, ruling out a sudden spike in production.

Even with high global food prices, the devastated agricultural sector would also be difficult to resuscitate.

"There are questions over property rights," said analyst Mike Davies at risk consultancy Eurasia Group. "People are going to be cautious given the history of land grabs. It will take time to clear that sentiment."

Khama's roadmap for Botswana

Mmegi, 2 April 2008
Let me from the outset pay tribute to Rre Mogae as he begins his retirement after years of exemplary service to our nation.

When looking back at his lifelong commitment to national service, it is hardlysurprising to anyone that he eventually ascended to the highest office in the land. Rre Mogae's achievements and the legacy he will bequeath us are well documented, as indeed outlined in his last State of the Nation Address in November last year. Immense strides in areas such as economic management, gender equality, HIV/AIDS, infrastructure development and social transformation, to mention but a few, have been made under his stewardship of our country. As president, Rre Mogae was recognised locally and abroad for these achievements. He can boast an admirable track record that serves as an example for future leaders of this country and elsewhere in the international community.

*An example of Rre Mogae's wise leadership is best re-stated by his own words during his last State of the Nation Address when he said and I quote "I have not allowed political expediency and the pursuit of populism to cloud my judgement and service to the nation. For the road to political expediency and populism may be lined with cheering crowds, but in the end we cannot escape the cold hard facts of our limitations as a developing country. Harsh punishment awaits a nation that spends unwisely in pursuit of immediate gratification rather than sustainable development", end quote. These are indeed wise words, and words I wish to identify myself with. On behalf of the nation, Rre Mogae, I wish to thank you Rraetsho for all you have done, and we wish you all the best in your retirement. Please feel free to call on me at anytime to render advice on any issue, and I hope I too can call on you for the same.

*A change of leadership does not mean radical changes in the way we have been setting out our objectives as agreed upon by the ruling party and government for this nation. Our party has a manifesto that I signed on to and the government has a national development plan that I am also a party to. However, in the course of the incoming administration, you may detect a change in style and special emphasis on a number of issues. This should not cause any alarm or uncertainty.

Afterall, changes should be seen in the context that no two people are the same. However, the overall objectives remain the same and not least because we, Rre Mogae and I, have been working together for quite some years to achieve them.

*Leadership changes can be a time of unease. I can only allay any disquiet by once more evoking President Mogae's words in his State of the Nation Address and I quote "Let us therefore face the future with confidence and determination: to lift our nation to greater heights, and determination to use our current achievements as stepping-stones towards prosperity and greater success" end Quote. I certainly intend to carry out my duties within the spirit and intent of those words.

*I am confident in the future, and I am determined to build upon the solid foundation that has already been laid since independence by my predecessors. For me to succeed, we must all be growing in success. No one can achieve anything on his or her own. This is our country, the only country we have. Botswana can achieve greater success, only if we show a collective will and when we all participate fully in her affairs.

Therefore whatever we do or whatever we say must be done and said in the best interests of this country.

*We have a clear vision of what we want Botswana's future to be. The successful implementation of our economic diversification policies and all this implies, will require focused and a single-minded pursuit of our goals and objectives. I am confident that with the right leadership at all levels and the appropriate mindset, we can, together, secure that success.

*Batswana have every right to reflect with pride on four decades of independence, stability and major economic and social development. But we cannot bask in past glory forever as has been the tendency. We need to think of the coming decades and about the prosperity and welfare of future generations. Botswana has become a middle-income country by prudently managing and investing the proceeds from her natural resources. This, in turn, has provided a stable and fulfilling environment for its citizens and business. Today, the country faces challenges that require further responses and initiatives. Areas that I feel need special emphasis are employment creation and poverty alleviation, programmes for the youth, health, housing and the fight against crime, to mention a few.

*But we also face new challenges such as environmental protection, and changing social values, brought about by rapid urbanisation. The external perceptions about Botswana have also changed: Botswana is no longer seen as the only beacon of success in Africa. A growing number of countries on our continent have become stable, democratic and increasingly attractive for investors, tourists and like-spirited people.

*These are some of the issues I am mindful of as I take the oath of office. Hence my roadmap for the nation will be underpinned and characterised by the principles of Democracy, Development, Dignity and Discipline. That they all start with the letter D is purely by coincidence.

*The first D, Democracy, has served our country and its people well. It is an important cornerstone of good governance and prudent economic management. Only democracy guarantees human rights, the rule of law, accountability and basic freedoms that we have enjoyed over the years. Yet again it is President Mogae who said "we are a country with a rich democratic political tradition and something positive to demonstrate and contribute to the rest of the world", end Quote.

*All the success we have registered is on account of our adherence to democratic ideals. Nothing should be allowed to detract us from this path. There is no substitute for it. I believe that Batswana recognise that only democracy can create the most favourable conditions to ensure that our aspirations can be fulfilled.

*I am a democrat. I have always believed in democratic ideals, and joined the military to defend this democracy. I consider myself an integral part of this system of governance that has become entrenched in
the life of Batswana.

*The second D, Development, refers to improving the standard of living of Batswana. This will manifest itself through the continued provision of national infrastructure such as roads, hospitals, electricity, schools, stadia and other life-affirming opportunities, most importantly jobs.

For this to happen, we have to create an enabling environment for the private sector, and to actively encourage it to become the driving force of and the main investor in our economy.

Government cannot alone bring about change. I also expect the private sector to do much more in support of the change process, especially in areas such as innovation, staff training and skills development.

l We need to change the mindset among Batswana by encouraging and helping them to fully develop their talents, and through stimulating creativity and hard work, so they can contribute to the economic development of our country. This must include a change in the way in which we see ourselves relative to non-Batswana stakeholders in different spheres of life, and the absolute need to embrace the realities of the internationalisation and globalisation processes. It will also demand an acceptance that Government's empowerment policies will increasingly be based on ability, effective delivery, wealth creation and capacity building through skill development and hard work, rather than on entitlement.

*With reference to the third D, Dignity, no one should need to live an undignified life as a result of poor shelter or health and abuse in a domestic environment. Anything in life that brings you suffering affects your dignity as a person and we shall seek to address and overcome some of these challenges.

*Living in dignity must go hand in hand with being treated with dignity. In this regard, I call upon all of us, politicians, the public service, and the private sector to ensure that our interaction with the public must at all times be underpinned by dignity. Botho is an integral part of our culture. Every citizen must (especially the political leadership) strive to maintain our culture of modesty and avoid extravagance at all costs.

*Last, but not least, the fourth D, is the principle of Discipline. Nothing can be achieved successfully without discipline in any society. May I quote President Mogae again when he said, "As I prepare to leave office, let me ask that we take a firm stand against all the negative tendencies that are creeping into our society and defacing our image.", end Quote.

*Allow me to highlight some of the social problems in our society that we need to address as a nation. These range from alcohol abuse, reckless driving on our roads, disrespect for elders, vandalising of school property, wastage of scarce resources such as water, the use of abusive language in public discourse and defamation, slander and false statements in the media. The examples I have cited reflect a lack of discipline by some sections of our community.

*Batswana must be reminded that in a democracy, the rights and freedoms of one individual end where those of other citizens begin. Freedoms go hand in hand with responsibility.

*The 4 Ds, I believe will help guide us towards our National Vision 2016. As Batswana, we have formulated a clear roadmap of our future. We can only realise this noble vision through focused actions, by government, business and citizenry. Two major strategies have recently been developed to help realise Vision 2016. They are the Business Economic Advisory Council's Economic Strategy designed to drive our country's much needed economic diversification, and a Brand Strategy - to inform ourselves and the world what Botswana holds in store for investors, visitors, traders and foreign residents.

*To actualise the contribution these two strategies will make towards realising Vision 2016, it will be necessary to make some changes in the way our country operates. This requires decisive and inspirational leadership in both government and business to instil self-confidence in the workforce and inculcate a results-oriented culture. It also necessitates better organisational skills and capacities to effect the changes required. Our young people need jobs-ready training and education to obtain the skills business requires. They need to be equipped with the abilities and mindsets to excel in their jobs and to start and grow their own enterprises.

*Accelerating globalisation and the rapidly changing international economic environment and related competitive pressures will continue to have a dramatic impact on Botswana. This change process also fuels the international fight to attract scarce and often highly sophisticated skills and know-how, and the Foreign Direct Investment which can commercialise such skills and thus help achieve longer term economic success.

*These developments dictate that Botswana must reposition itself.
Botswana must learn to benchmark itself internationally, and we, collectively and individually, must develop the capacity to compete internationally on equal terms. This is the basis for our policy "Citizen Empowerment through Excellence".

*I shall set up a special Committee of Cabinet responsible for economic issues and employment that will report to Cabinet monthly on progress made with regards to these various initiatives. This committee will be headed by the Vice President.

*Finally, I intend to try and find ways to phase out any excessive or counter-productive bureaucracy. Our public service, at both central and local level, must become optimally efficient, transparent, motivated and disciplined. Within Government I will continue to attach importance to team work, accountability, effective co-ordination and providing staff with clear objectives and targets.

*To this end I shall start by laying out to the Cabinet and the entire senior management of government in a meeting later this week and with local authorities next week, my expectations of them with respect to making good on the pledges we have made to Batswana. As part of a team charged with delivering services and development to the nation, I hope they are all up to the task because those unable to deliver cannot be kept on the team.

*Bagaetsho, "Success starts with a vision, but nothing will come of it unless the follow-through is swift and only single minded pursuit of goals brings success"
"We cannot stand still - we must improve further on our past gains. With the support of the nation I will do my best to lift Botswana to the next level of development"

*Let me conclude by thanking all of you for your attention, and to all those who have sent messages of goodwill to me, and to those who have travelled from afar to be here for this occasion.