SA: End Eskom’s monopoly

SAPA, 28/01/2008

Eskom's monopoly was the main cause of South Africa's electricity problems and the solution lay in independent power producers, the Democratic Alliance said on Monday.

While provision was made for independent power producers to generate up to 30 percent of South Africa's total electricity output, it had to be sold to Eskom and not to other users, party MP Hendrik Schmidt told journalists in Cape Town.

The party was presenting its own energy solutions following the government's announcement on Friday of a plan to deal with the electricity crisis.

“We have to ensure that Eskom's monopoly as the sole purchaser is dismantled,” Schmidt said.

Eskom's low tariffs had also made other producers reluctant to step in.

South Africa's electricity was about 70 percent cheaper than Canada's, which had the world's second cheapest electricity tariffs.

SA: Expect to pay 14% to 20% more for power

By Olivia Spadavecchia, Engineering News, 25/01/2008

Another element of the power crisis currently plaguing South Africa was the reality that there would be further significant increases in electricity prices, Minister of Public Enterprises Alec Erwin said at a media briefing at the Union Buildings on Friday.

Erwin warned that after the latest confirmed increase of 14,2%, which would be implemented in April, South Africa could expect price hikes of between about 14% and 20% over the next few years.

He explained that the tariff increases, which are determined by the National Energy Regulator of South Africa, would be a permanent change.

The Minister said that the increases would be effected in a way that would soften the blow for the country's poor, essentially through the burden falling on those who could afford to pay, with larger consumers sheltering smaller ones.

"Despite the electricity price hikes, South Africa will remain the most competitive large energy system in the world," Erwin declared.

Supporting documents provided by government stated that the gap between South Africa and the next cheapest country, Canada, in terms of electricity prices, had increased to 74% in 2007, from 30% in 2006.

Current pricing was said to be one half the replacement value of a power plant, and therefore tariffs would need to increase substantially to fund the new capacity being built.

The current approved tariff by the energy regulator is 22,1c/kWh whereas the long-term average cost was significantly higher. Government noted that electricity prices would have to move in the direction of the long-term cost to be cost-reflective.

SA: Can solar power ease our energy crunch?

SAPA, 24/01/2008

Developments in solar power technology make it an economically viable energy solution for power crisis-ridden South Africa, said the University of Johannesburg (UJ) on Wednesday.

New very thin film materials have been discovered which can be used to make panels which directly convert sunlight into electricity (called the photovoltaic (PV) effect), said the university.

"A move to radically different thin-film PV materials has changed the picture entirely," said the university.

Old solar panels used silicon as the active PV material.

"[However], the import price of silicon-based solar panels still renders them far too expensive as a viable alternative to coal, gas and nuclear power.
"A new material - copper-indium-gallium-diselenide (CIGS) - offers a drastically reduced manufacturing cost."

Panels created with CIGS are extremely thin, flexible and bendable instead of the old bulky glass ones

They are also highly efficient and stable sources of power.

UJ said these solar materials could deliver any desired amount of electricity.

"Therefore, single houses, small villages, towns and cities can be equally well served by local PV installations."

Advantages of this power source were that no long-distance distribution grid was required, no greenhouse gases emitted and no hazardous wastes released into the environment.

Solar power was an attractive option for South Africa because it offered relatively quick access to an independent electricity supply, said UJ.

South Africa is currently undergoing a nationwide schedule of deliberate power cuts.

The country's electricity facilitator Eskom says this is because South Africa has run out of reserve capacity.

The situation is apparently expected to last for the next five to eight years.

Dubai's DP World buys stake in Mozambique firm

Dubai's DP World said on Monday it spent $32-million on a stake in a Mozambique company that manages the port of Maputo, the country's capital, looking to tap cargo traffic in southern Africa.

DP World, the world's fourth-largest container-port handler, bought 48,5 percent of Portus Indico-Sociedade de Servicos Portuarios.

Portus Indico owns 51 percent of Maputo Port Development Co, which manages Maputo port.

"Maputo is also one of the main corridors for the southern African hinterland," DP World CEO Mohammed Sharaf said in a statement. "We plan to invest further in container handling facilities there."

DP World already operates in Maputo, managing the container terminal at the port through Maputo International Port Services, of which it owns 60 percent.

Dubai government eyes more investment in SA

By Xolile Bhengu, 10 Jan 2008 - Inet Bridge

A company appointed to find the best investments for the Dubai government is expanding its portfolio in South Africa, and has big plans for the African region.

Dubai World, holding company of South African-based Dubai World Africa Services, which owns the V&A Waterfront in Cape Town, manages and supervises businesses and projects for the United Arab Emirates’ government.

The company said it had recruited senior managers for its African office.

Shadleigh Roscoe, marketing and public relations manager at Dubai World Africa Services, said the company had played a major role in developing Dubai into the leading centre for finance and property development in the Middle East, with landmarks such as The Palm islands and The World developments.

He said: “Our rapid expansion into Africa has necessitated a fully- fledged office.

“Our two new office blocks are in The V&A Waterfrontm including the fully restored Windermere House building. A third office will be built soon.”

Roscoe said there will be significant development at The V&A Waterfront including a luxury hotel to be named the One & Only.

“We also purchased the Pearl Valley Golf Estate in the [Cape Town] winelands.

“In Africa, we have partnered Kempinski Hotels in the development of a five-star luxury hotel and casino with restaurant, nightclub and conference facilities in Djibouti on Gulf of Aden at the southern entrance to the Red Sea. It borders on Ethiopia, Eritrea, and Somalia.

Roscoe said: “We are building 50 luxury villas, and negotiating purchases of property and assets in Rwanda, the Comores, Zanzibar and other African countries.”

The company, owned by the Dubai government, aims to invest in and actively develop eco-tourism in Africa.

Negotiations are also under way for the purchase of world- renowned game reserves in Africa.

Dubai World chairman Sultan Ahmed Bin Sulayem, on a recent visit to the new offices, said the company’s expansion into Africa was the realisation of a vision to significantly improve the growth and development of the African continent.

Bin Sulayem said the company was in partnership with key stakeholders who shared the dream of building a sustainable economy for the region, and the creation of thousands of jobs for Africans while adding value to the company’s investment portfolio.

“Our offices in Cape Town are symbolic of our long term commitment to the region,” he said.

Dubai World has more than 50000 employees in more than 100 cities.

Cape Town port upgrade begins

Source

Transnet port terminals has started work on a R4,2bn construction programme to nearly double the capacity at the Cape Town container terminal by 2012, Oscar Borchards, the executive in charge of the city’s container terminal, said last week.

Borchards said contractors moved on to the site last Monday and that dredging of the Ben Schoeman Basin, a key component of the expansion, had begun.

The plan is to increase the depth of the basin from about 10m to 15,5m to attract larger vessels to the harbour. The aim is also to increase the handling capacity of the harbour from 740000 TEUs (twenty foot equivalent units, the standard length of a container) a year to 1,4m TEUs within the next five years.

The three-part programme includes the deepening of the basin, quay refurbishment with new cranes and the reconfiguration of the terminal to increase efficiencies.

The refurbishment of the harbour will run in tandem with its reconfiguration and will include the assembly of massive ship-to-shore cranes and converting the terminal to a rubber-tyre gantry system from the straddle carriers now in use.

Nonessential infrastructure and buildings will be demolished, the terminal reconfigured to maximise the container stack capacity, and specialised equipment procured.

Borchards said part of the planning, which had “taken years” to reach this stage, was to maintain productivity at the container terminal, the country’s second largest. This would be achieved by diverting container vessels with their own ships’ gear to Cape Town’s multipurpose terminal.

Eskom has undertaken a project to significantly upgrade electricity supply to the harbour.

Oger Telecom sees rivals circling Telkom

Reuters, Engineering News, 24/01/2008

Oger Telecom, a Dubai-based operator that has made an informal offer for South Africa's largest telecoms operator Telkom, said on Thursday around three other parties were circling its target.

Oger Telecom CE Paul Doany told Reuters on the sidelines of a telecoms and emerging markets conference in London that he also would not be surprised to see MTN, sub-Sahara's largest mobile phone group, re-enter any process.

Doany declined to name any potential counter-bidders. He said only that he hoped partly state-owned Telkom, which has said there are no current negotiations with Oger, would discuss a deal.

"I wish there were talks," he said. "I hope there will be a process."

Oger Telecom, which is controlled by the family of late Lebanese prime minister Rafik al-Hariri, already controls a majority stake in South Africa's third-largest mobile phone operator Cell C.

Doany said his interest in Telkom had been triggered by the South African company's talks about selling all or some of its fixed-line assets to mobile phone compatriot MTN.

He said a deal with Oger Telecom, which has experience in running a large fixed-line and small mobile operation in booming Turkey, made more sense. But he stressed he was "not some crazy bidder coming from the Middle East".

"If you overpay, there will be consequences," he told the conference.

Telkom's talks with MTN were aborted last November after a disagreement about value, scuppering parallel talks to sell part of Telkom's 50 percent stake in cell-phone joint venture Vodacom to British-based mobile partner Vodafone Group Plc.

Vodafone has said it remains keen to take control of Vodacom, South Africa's largest mobile phone company, which it could use as a springboard for further acquisitions across the fast-growing African continent.

Can SA handle burden of regional leadership ?

The Swazi Observer

CAN South Africa really handle the burden of regional leadership and can the Southern African Customs Union (SACU) be the fulcrum of wider regional integration?

These are some of the questions Dr. Mills Soko, a senior lecturer at the University of Cape Town’s Graduate School of Business, addresses in his policy paper: The Political Economy of Regional Integration in Southern Africa.

In the past two publications of this newspaper, regionalisation in the age of globalisation and the dynamics of regional integration in southern Africa, particularly focusing on SACU and Southern African Development Community (SADC), have been discussed.
The last section, part III, deals with the contentious free trade agreement (FTA) and economic partnership agreement negotiations currently ongoing between Africa, Caribbean and Pacific (ACP) and the European Union (EU).

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FTA and EPA negotiations

In so far as the SACU countries have decided to undertake multilateral and free trade agreement (FTA) negotiations as a single entity, they will be required to develop collective policies and negotiating positions on issues such as services, intellectual property matters, investment and competition law.

In particular, SACU’s negotiations with the United States (US) have highlighted the importance of internal policy coordination among the SACU states prior to engaging in external negotiations.

In keeping with its FTA strategy of ‘competitive liberalisation’, the US wants a comprehensive FTA with SACU, encompassing liberalisation of trade in goods, services and investment, inclusion of labour and environment provisions, and tightening of intellectual property rights.

On the contrary, the SACU Agreement covers a limited set of disciplines: trade in goods, agriculture, transport and the management of the common revenue pool. The main challenge is to reconcile these narrow disciplines with the comprehensive negotiating posture of the US.

Intra-SACU expansion, combined with the unfolding global trade agenda, will increasingly necessitate an alignment of SACU policies and programmes with the demands of the contemporary global trade regime.

The ongoing sets of negotiations on EPAs between the EU and some countries in eastern and southern Africa present another challenge to SACU. Initially, South Africa was involved as an observer in the negotiations by virtue of its membership of SACU and SADC.

However, the EU Council of Ministers decided in December 2006 to include South Africa in the SADC EPA grouping. Undoubtedly, South Africa’s involvement will have an important bearing on the negotiations.

It is unclear, though, what the nature of that influence will be and how this will affect the internal dynamics of the SADC EPA grouping. The parallel process of reviewing the TDCA, negotiated by South Africa and the EU, will also have implications for SACU.

The BLNS countries have been part of the TDCA review process aimed at harmonising their EPA negotiations with the EU with the TDCA. Likewise, the EU has been engaged in a process of recasting its rules of origin in order to create a single system for ACP countries to which South Africa could accede.

A vital issue in this regard will be cumulation, particularly South Africa’s cumulation with the ACP bloc and SADC. In addition, a review of trade defence measures germane to the TDCA has been proposed with the goal of rationalising them.

The evolving SACU trade architecture will also be shaped by the manner in which issues are tackled within the Co-operation Council set up by the TDCA. These include Article 18 of the TDCA, which provides scope for further liberalisation of tariff lines - spanning industrial goods, agriculture, and fish and marine products - that are either presently excluded or subject to partial liberalisation, quotas or backloading.

One of the key objectives of the EPA negotiations is to enhance regional integration among the ACP states. Whether this goal can be accomplished in the SADC context is doubtful, in light of the regional bloc’s lukewarm commitment to deeper integration. Even so, the EPA negotiations are likely to compel SADC countries to make hard choices regarding their membership in the overlapping regional trade structures and agreements.

SACU as the fulcrum of wider regional integration?

The revised SACU Agreement provides for accession by new members. The idea of expanding SACU is not new: it was previously mooted by the then apartheid regime as part of a policy to broaden South African hegemony and to counter anti-apartheid forces in the region.

But it has gained currency in recent years, largely in response to a number of strategic developments in southern Africa, including the current EPA negotiations between the EU and several countries in the region, and the increasing political and economic presence of external powers such as China and India.

This is particularly pertinent in light of SACU’s ongoing parallel FTA and multilateral negotiations. The prospect of expanding SACU triggers a number of questions. A number of SADC countries - notably Mozambique, Zambia, Malawi and Zimbabwe - have been touted as potential contenders for extended SACU membership.

Among other things, it has been suggested that enlarging SACU could overcome the ‘spaghetti bowl’ problem of overlapping regional membership of SADC countries; to this end, it has been proposed that SACU should swallow up SADC.

Given the revised SACU’s patchy track record, coupled with the institutional difficulties that the new customs union has been experiencing since its inauguration, it is perhaps unrealistic to expect SACU to effectively and adequately cope with the consequences that would result from incorporating SADC into its structures.

It has also been mooted that SACU expansion would advance domestic investment and economies of scale, even though possible industrial relocation effects would have to be properly assessed.

In spite of its allure, the idea of enlarging SACU is fraught with potential drawbacks. One of the important reasons for SACU’s relative success has to do with the unique history of deep integration of the BLNS countries into the South African political economy.

Historically, the economies of the BLNS states have been integrally enmeshed into the South African economy. To be sure, successive apartheid governments tried without success to incorporate these countries politically too.

This is not the case with other SADC countries which - notwithstanding their significant linkages to South Africa - developed different institutional arrangements and traditions to those of the BLNS states.

Enlarging membership is also likely to run into difficulties as negotiations - in a democratised SACU setting - about the common revenue pool and the CET become bogged down by attempts to accommodate the needs and interests of countries at different levels of development. Moreover, it would spark debate about the revenue-sharing formula, especially in terms of how this should be restructured and extended to new members.

This is particularly important in respect of the reconfiguration of the development component of the revenues, which would have enormous fiscal ramifications for South Africa.

Moreover, proponents of SACU expansion have to overcome a perception among some SADC nations that SACU has been a hindrance to faster and deeper regional integration. Some SACU members are intent on clinging to, and safeguarding, their privileges within the customs union and are sceptical of the SADC-wide integration project.

Any changes to the size of the development component require the consent of all of the SACU states. Taking into account domestic constraints it is unlikely that South Africa, the only contributor to the development component, would agree to increase its contribution to make up for diminished tariff revenue, at least in the short-term.

On the contrary, South Africa is more likely to put pressure on the BLNS nations to implement fiscal reforms so as to diversify their revenue base, while also revising their government expenditures.

SA and the burden of regional leadership

The southern African region constitutes a central priority in South Africa’s post-apartheid foreign economic policy. This explains why post-apartheid South Africa has made the pursuit of regional economic rejuvenation - mainly through the instruments of regional trade integration - the keystone of its foreign policy.

In this respect, the South African state has used trade policy reform as a foreign economic policy tool not only to rebuild political and economic cooperation with African countries (damaged during the apartheid era), but also to advance its leadership ambitions, particularly in the southern African region.

Yet foreign policy has not been preoccupied only with economic issues, it has also been concerned with political and security matters. As an active champion of the African Union (AU) and New Partnerships for Africa’s Development (NEPAD), South Africa has played an essential role in reshaping the security discourse on the continent.

One of the crucial challenges that confronted the emerging South African democracy was the extent to which its foreign policy would reflect the ethical and democratic values that had guided the anti-apartheid struggle. Albeit with limited success, foreign policy during the Mandela presidency strove to propound the cardinal tenets of human rights, democracy, justice and international law.

Under the leadership of Thabo Mbeki, South Africa has assiduously sought to cultivate a position as a ‘natural’ leader of the SADC region and, indeed, of the African continent. Invoking the rhetoric of ‘African renaissance’, Mbeki has set out to reaffirm South Africa’s African identity and legitimise its leadership ambitions.

Although it accounts for the bulk of Africa’s economic output, South Africa has been careful not to throw its weight around. The South African government has actively championed NEPAD and has spent enormous financial and diplomatic capital on efforts to end conflicts in several African countries.

On Mbeki’s watch, South African foreign policy assumed a strong multilateralist thrust: the emphasis was on working with other countries to fashion common solutions to global and regional concerns. South Africa sees itself as a bridge between the developed and developing worlds. And it has used multilateral diplomacy to burnish its South credentials.

Objectives

Pursuing South Africa’s national objectives through the multilateral setting has been seen as essential to providing the country with an avenue to “leverage its moral and political authority based on its democratic, non-racial and constitutional credentials”, while also reversing the African continent’s precarious position in world affairs.

As such, foreign policy became more ever geared towards shoring up South Africa’s international profile and towards using multilateral institutions to promote human rights and democratic global governance.

In this context, the apartheid-era policy of regional destabilisation made way for a policy that emphasised dialogue and mediation as the key means of conflict resolution in the region. The new policy, which South Africa has sought to export to the rest of Africa, focused on finessing political solutions to conflicts and sponsoring initiatives designed to limit regional insecurity.

This has entailed, among other things, promoting conflict prevention and conflict resolution, advancing human rights, providing assistance in monitoring and dealing with domestic issues, such as elections, that have a bearing on regional stability. It has also involved propagating regional cooperation through the evolving conflict resolution mechanisms of the AU.

Democratic South Africa’s formative experience of conflict resolution dates back to 1996, when the country tried to broker a peace deal between the president of the then Zaire (which subsequently became known as the Democratic Republic of Congo), Mobutu Sese Seko and Laurent Kabila, who marshalled the rebel forces that deposed Mobutu from power.

In recent years, South Africa has actively championed a negotiated settlement to the Congolese conflict, and its mediation efforts resulted in the conclusion of the Inter-Congolese Dialogue in 2003 (which cost the South African taxpayer about US$20m), initiated under the Lusaka Ceasefire agreement.

The emerging security doctrine was also evident when the country, backed by the United States (US), succeeded in discouraging the former Zambian president, Frederick Chiluba, from changing his country’s constitution in order to seek a third term in office.

Controversially, however, the policy suffered a setback when South Africa bungled a military intervention in Lesotho in 1998. This sparked questions about South Africa’s true intentions in the region. Beyond its ‘near abroad’, South Africa has been involved in mediating an agreement between Burundi’s warring factions in that country’s civil war.

Culminated

South Africa’s mediation efforts culminated in the conclusion of a power-sharing agreement between the rebel forces and the government of Burundi. Moreover, South Africa has committed material and human resources to bring peace and stability in Eritrea, Ethiopia, the Comoros and the Cote d’ Ivoire. And it has continued to play a role in addressing the issue of ‘conflict diamonds’ through the Kimberley process, which is designed to stamp out the use of illicit diamonds that have stoked conflict, particularly in Sierra Leone and Liberia.

Central to these activities has been a determination to foster political stability, good governance and sustainable development across the African region as a prerequisite for general prosperity. To this end, Pretoria has, among other things, invested heavily in developing the AU and its constituent structures, including the Pan African Parliament.

This is in recognition of the reality that South Africa’s destiny is inextricably tied to that of Africa. Leading the continent into an era of stability and prosperity - encapsulated in Mbeki’s ‘African renaissance’ doctrine - has thus become the leitmotif of South Africa’s external policy.

The idea of expanding SACU raises questions regarding what the attitude of South Africa, the dominant state within the current customs union, would be towards the new SACU set-up. Viewed through the conceptual lens of hegemonic powers, South Africa qualifies as a leader in the SACU region.

Capabilities

Not only does it politically and economically dominate its SACU partners, it has the requisite material capabilities to advance their economic aspirations. South Africa accounts for virtually 93 percent of SACU’s GDP and is a key supplier of manufactured goods to the SACU market. Barring some exceptions, South Africa has demonstrated its ability and willingness to provide public goods for its smaller SACU neighbours. This is manifested, for example, in the revised revenue-sharing formula, which recognises the fact that trade relations between South Africa and its SACU counterparts have continued to be skewed in favour of the former.

But whereas South Africa has skilfully legitimised its dominant role in SACU and positioned itself as the pivotal state around which the SACU integration process has revolved, such a scenario is unlikely to be replicated in an enlarged SACU arrangement. This is principally because of the historical of the ongoing regional tensions within the SADC over issues of security, leadership and democracy.

The failure of South Africa’s policy of ‘quiet diplomacy’ in Zimbabwe bears eloquent testimony to the limits of Pretoria’s regional power. It speaks to the constraints imposed on regional governance by SADC’s principle of noninterference in the internal affairs of member states.

In part, these constraints have to do with the fact that the new regional security paradigm propounded by South Africa has been challenged by some states within the region - notably Angola and Zimbabwe - which have refused to accept South Africa as the guardian of their interests.

Fundamentally, this has to do with power politics and relations among the regional states. As Mda observed: South Africa’s overwhelming economic dominance of the SADC region is a key reason why Zimbabwe opted to negotiate EPAs under the Eastern and Southern Africa configuration created by the Common Market for Eastern and Southern Africa (COMESA).

COMESA’s attraction to Zimbabwe derives partly from Harare’s calculation that it has a competitive advantage over its COMESA regional partners that it does not have within the SADC.

Considering its historical role in the political and economic destabilisation of the region, South Africa has been anxious to prove that it is a good regional citizen and has striven to ensure that it acts in a manner that does not undermine the cohesion of the SADC. Over the past few years, South African regional diplomacy has focused on fostering regional unity and consensus-building, tackling SADC’s institutional problems, and on pursuing multilateral solutions to regional conflicts.

However, South Africa’s security role has been impeded by SADC’s steadfast observance of the principle of non-interference. Bar the ill-fated invasion of Lesotho in 1998, SADC has never intervened in an intrusive fashion in the internal affairs of a member state in the same way as, for example, the Economic Community of West African States has done in West Africa.

Furthermore, South Africa’s position has been hampered by SADC’s deficiencies, typified by institutional differences over leadership, security and democracy, as well as the problem of poor managerial expertise. As such, the regional body has not been able to perform its security mandate effectively, highlighted by the failure to ensure credible, free and fair elections in the region, notably in Zimbabwe.

An expanded SACU, which includes countries intent on challenging South Africa’s leadership, is likely to be hobbled by the politics of power. And this, in turn, is likely to strain decision-making processes. Considering its long history of political and economic domination within SACU, South Africa has become accustomed to driving policy processes and wielding sway over its BLNS partners; the new democratic SACU structures notwithstanding.

As one commentator averred: “The region is characterised by the dominance of the South African economy and a long history of more than a hundred years of co-operation in a particular kind of custom union that has existed since colonial days. SACU has not known supra-nationality up till now”.

The dictates of realpolitik suggest that South Africa (especially if it continues to underwrite the bulk of regional integration costs) will continue to demand exercising prerogatives commensurate with its contribution to regional integration efforts. As such, it is unlikely to allow its power to be eroded even in a larger SACU, particularly in cases where it feels that its fundamental interests are being threatened.

To be sure, South Africa’s enduring power and ‘control’ of decision-making remains a source of concern among the small SACU states. Domestic concerns and interests are likely to impinge on South Africa’s role in an enlarged SACU. Despite its political and economic primacy in SACU, South Africa still has to contend with the pressing domestic challenges of consolidating democratic transformation and redressing apartheid-inherited social and economic inequalities.

In light of these considerations, policymakers would have to work very hard to convince anxious domestic constituencies about the wisdom of increasing South Africa’s contribution to SACU finances in order to absorb the impact of increased membership.

Already, South Africa’s Department of the Treasury has questioned the continuation of payment on customs receipts and has called for the introduction of changes. As the Treasury’s director-general, Lesetja Kganyako, warned: In sum, regional integration in southern Africa will not succeed unless South Africa, by far the biggest and most diversified economy in the region, discharges its responsibilities in accordance with its hegemonic status.

Whether South Africa can assume a hegemonic regional role will depend on three considerations: first, the extent to which the country’s political and bureaucratic elites are able to balance the country’s regional obligations against domestic pressures; second, the manner in which the country deals with the legacy of apartheid South Africa’s historical destabilisation of the region; and third, the degree to which the country’s leadership credentials are accepted by other regional states.

SA: Climate change mitigation study in ‘final stretch'

By Christy van der Merwe, Engineering News, 18/01/2008

South Africa's long-term mitigation scenario (LTMS) study, regarding climate change, which would inform future policy decisions, is now in its "final stretch", Environment and Tourism Minister Marthinus van Schalkwyk told delegates at a climate change round table discussion in Cape Town, on Friday.

Once the LTMS study is finalised, which was said to be imminent, it will be submitted to Cabinet, where it, together with work on sectoral strategies, the greenhouse-gas inventory, national communications to the United Nations, and South Africa's adaptation planning, will be used as a reference to inform the deliberations towards a legislative package, which would give effect to South Africa's policy at a mandatory level.

Norwegian Prime Minister Jens Stoltenberg, Kenyan Nobel Peace Prize Laureate Wangari Mathai, as well as various climate change scientists attended the function, and Van Schalkwyk affirmed that South Africa "stood ready to take ambitious mitigation action".

The minister said that after a period of despondency, there was a new spirit of optimism and cooperation after the Bali meeting, which took place in December.

It was decided in Bali, that by 2009, the details of a more effective and inclusive climate regime should be agreed upon, and set an agenda leading up to 2009, which would revolve around discussions on adaptation, mitigation, technology, and financing.

More stringent emission reduction targets are envisioned for developed countries, and developing countries have agreed to start negotiations on mitigation action that is measurable, reportable and verifiable.

"Adapting to climate change is a prerequisite for economic growth and development in Africa. That is why this field will have high priority in Norway's international development activities in the years to come. We are now geared to focus on the prevention of and the adapting to climate change in African countries where the need is most urgent, and where we - together with our African partners and international organisations - can really make a difference," Stoltenberg commented.

Another important outcome from the Bali roadmap, was that the US committed to join negotiations. "Developing nations demonstrated leadership in Bali, it is now over to the US to demonstrate leadership and take their fair share of responsibility," reiterated van Schalkwyk.

He would be meeting with the US in ten days at the second US-hosted Major Economies meeting on energy security and climate change, where he would once again echo the same sentiments.

The Major Economies meeting will take place two days after President George W Bush's State of the Union address on January 28, and Van Schalkwyk felt that this would be a good time for Bush to signal a turning point for real action and commitment on climate change from the US.

Following the meeting in Cape Town, Stoltenberg will travel to Norway's research station, Troll, on the Antarctic Continent.

"The Antarctic is the world's leading climate laboratory. Here we are able to see the history of climate change and changes in global emissions. Research carried out in the Antarctic may offer invaluable information on the further development of the climate situation. The expedition will provide completely new knowledge on climate change and I look forward to receiving their first reports when they arrive," Stoltenberg said.

SA: Power crisis threatens to sink major projects

Business Day, Mariam Isa, Charlotte Mathews and Mathabo le Roux - 18/01/2008

CONCERN is growing that SA’s electricity crisis could tarnish its appeal to investors, after news that several new mining projects and a ferrochrome expansion project had been put on the back burner because Eskom lacked the power needed to run them.

A R22bn aluminium smelter — the biggest foreign direct investment secured by the country to date — also may be under threat, with Eskom confirming yesterday it may be delayed by supply constraints.

Chamber of Mines assistant adviser Dick Kruger said he could not give details, but there were platinum projects for which the mining companies had been told there was no power available.

A ferrochrome expansion plan had also been halted.

He said final decisions on new mining ventures were now likely to be delayed until there was certainty on power supply in 2013 — when Medupi, the first new coal-fired plant, comes on stream.

“We are in for a very hard five years,” Kruger said.

Eskom finance director Bongani Nqwababa said the utility wanted to dissuade the government from taking on new energy-intensive projects before 2013, when its R300bn five-year expansion plan would be complete.

“It’s a question of supply and demand. It would be irresponsible now to aggressively pursue energy-intensive businesses. A balance has to be found, that is the reality,” he said.

Business Unity SA said yesterday it was alarmed at the news and a spate of power blackouts had already cost business “millions”. It was also eroding international confidence in SA as an investment destination, the group said.

“We are seeking an urgent meeting with Eskom and government in order to determine the extent of the problem and to have a clear, transparent and unequivocal plan going forward,” it said.

Minerals and Energy Minister Buyelwa Sonjica acknowledged yesterday SA was experiencing a serious problem, but moved to calm the uproar over power cuts, which have hit industries, offices and homes in the past week.

“I wish to put it to the country that we do have an acute problem of supply at the moment. I wish also to emphasise that we have a low electricity reserve margin,” she said.

But she said the government was considering a number of “interventions” to ease the crisis, which would be discussed at a cabinet meeting next week. “There’s no need to panic about future investments,” she said.

Nqwababa said projects already in the pipeline would go ahead, but construction of Rio Tinto’s Alcan aluminium smelter might be rescheduled. “We need to make sure the pace of the project and the pace of our commitments match. If we can’t meet our commitments then we’ll ask them to reschedule.”

With construction set to start in the second half of this year, the project is the biggest and most advanced in Rio Tinto’s pipeline.

Spokesman Robert Valdmanis said yesterday the smelter was going ahead. When pressed, he said: “If (the project) gets delayed its prioritisation may change and no one knows what the outcome of that may be. I don’t want to speculate beyond that.”

For projects under construction, mining firms had secured electricity supply at the outset and Eskom would stick to its agreements.

Kruger said SA faced a magnified power squeeze this week, when supply was constricted by maintenance that would help through the winter. But he believed the crisis would be worse this time next year.

Bongani said Eskom aimed to add an average of 2000MW of electricity each year, doubling capacity to 80000MW by 2025.

This assumed that the economy would grow at an average 6% a year, and supply would be threatened only if it exceeded those expectations, he said. Faster growth than expected has been one of the main reasons for the power crisis, with SA clocking up a pace of 5,4% in 2006, a 25-year peak.

The government aims to boost growth to 6% by 2010 to help create jobs, but there is concern the power supply crunch will thwart that goal.

Kruger said demand would continue to outstrip capacity. Even if the economy slowed this year, appetite from households and mines would remain robust. The biggest electricity users are redistributors — mainly municipalities — followed by heavy industry and the mining sector.

Standard Bank group economist Goolam Ballim played down the crisis, saying it was just one constraint . “I’m not sure investor confidence will be downgraded but it will temper confidence and shave off some of the earnings growth expectations for South African equities.

SA firm wins R70m contract for pilot Saudi Arabian prawn farm

By Olivia Spadavecchia, Engineering News, 21/01/2008

Local mariculture company SeaArk has been awarded a second contract for the use of its South African-developed high-tech prawn farming system.

In an agreement, worth some R 70-million, SeaArk would develop a commercial pilot plant at the existing open-pond prawn farming facility of the Saudi Arabian Al Faulk Group, in Jeddah

The pilot project would establish the commercial viability of SeaArk's advanced closed-pond technology in farming a Mediterranean brown shrimp variety known as panaeus indicus.

The biosecure technology was developed in South Africa after 15 years of research both locally and in the US. The technology to be deployed in the Al Faulk pilot project was the same used by SeaArk at its Coega facility, in the Eastern Cape.

Sea Ark Africa, which is 100% owned by the broad-based black economic-empowered Bosasa group of companies, announced its decision in December to develop a 1 200-ha giant prawn farming facility employing 11 000 people at Coega following a successful pilot phase.

"In Coega, we are successfully growing a pacific white shrimp variety known as panaeus vannemai, while in Saudi Arabia, we will be farming a species never before grown in a high-tech closed system," said SeaArk president Dave Wills.

"Together with our Saudi partners, we aim to demonstrate that our innovative mix of science and technology has the ability to grow the Mediterranean prawns they are already farming faster, with a lower food consumption rate, with greater densities, and higher barriers to infection and loss than in the in open ponds they are currently using," he explained.

SeaArk's patented technology combines closed specially designed ponds and computer-driven control systems with advanced biological science. As with the company's first international project in the Zhanjiang economic development zone in China, announced last December, many of Sea Ark's patented processes in the Jeddah pilot project would be run remotely from Coega.

The company explained that water quality and temperature, feed consistency, and plant biosecurity, among others, would be monitored on line by South African technicians working at the Coega research and development centre. It added that the Jeddah pilot plant would be built and managed by two other Bosasa companies, project management company BuildAll, and Sondolo IT.

"The agreement with the Al Faulk Group for the Saudi Arabian pilot plant is another huge vote of confidence in the technology we have brought to market maturity in our Coega plant," said SeaArk CEO Gavin Watson.

"For the second time following our partnership with the China Direct group, an international roll-out is making a huge contribution to the future of the Coega IDZ and the Eastern Cape economy, with a very direct and positive effect on the lives of thousands of families in the surrounding communities, particularly Motherwell," he continued.

Eskom gets ready to roll out solar water-heating programme

By Olivia Spadavecchia, Engineering News, 22/01/2008

State-owned power utility Eskom's solar-powered water heater incentive programme, which was due to be rolled out soon, would only be launched on a national basis once there was registered suppliers in all main centres, it said on Tuesday.

Eskom was currently working on the programme and, although the timing was dependent on the suppliers providing all the necessary information, it was expected that the programme would be rolled out soon.

Since December, over 80 potential suppliers were asked to express interest in registering, Eskom said, adding that interest had also been seen from new entrants in the market, both locally and internationally.

The utility said that it was carefully managing the awareness around the programme so as to ensure that it was not creating a demand in the solar industry that could not be supplied.

Some R2-billion would be made available through the programme, which was managed by financial services firm Deloitte & Touche, over the next five years.

The incentive assistance was provided directly to the customer through a "discounted price" through a supplier registered with Eskom.

It explained that a customer who used a registered supplier and installer would pay the rebated amount, the supplier, in turn, would then be able claim back the incentive amount from Eskom's facilitating auditors.

The utility's objective was to replace about 900 000 electrical geysers, including new homes being built, with solar systems, thereby creating an energy saving of 578 MW.

The utility said that the energy savings created by using solar power, rather than electricity, would decrease a consumer's electricity bill by between 20% and 40%, and being a renewable source would contribute to greater environmental objectives.

The programme formed part of Eskom's demand-side management programme which aimed to save some 3 000 MW of electricity by 2012 and up to 8 000 MW by 2025.

All solar heaters must undergo South African Bureau of Standards (SABS) testing, the cost of which was said to be "prohibitive" for small businesses in the industry. However, Eskom explained that its aim with the SABS testing was to minimise risk for consumers, adding that testing would ensure a successful and sustainable programme as the equipment had to be safe and of a high quality.

The company said that the solar-power systems must be high pressure, and that it would have to be installed in conjunction with a timer (or load management device) to optimise energy savings and regulate usage.

Further criteria for the programme stipulated that registered suppliers and installers would only be able to claim the discounted amount once the electrical and plumbing certificate of compliance had been issued; suppliers must also be registered with the Sustainable Energy Society of South Africa's solar water-heating division.

Investment gloom as SAfrica enters the 'dark ages'

AFP, 21 January 2008

South Africa was set Monday to ration electricity in a bid to stem a spiralling crisis which has dealt a severe blow to its status as the continent's economic powerhouse.

After mounting anger over daily blackouts which have cost business hundreds of millions of dollars, the government said it was drawing up plans which could see consumers fined if they exceed set quotas.

Nelisiwe Makubane, deputy director general of the minerals and energy department, said the regulations being worked on with the state power utility Eskom could be implemented within three months.

"Once we have received public comments, then the regulator and Eskom will implement those regulations which will include among other things, incentives for people to move to power rationing and also penalties to make sure that people stick to what they are committed to," Makubane told public radio.

Her comments came after Eskom's chief executive was quoted as saying that rationing was being considered and anyone who breached his or her quota could have their power disconnected.

South African President Thabo Mbeki held talks with Eskom's management late Sunday to discuss the crisis, which analysts warn will scare off foreign investors.

Although the blackouts have affected the whole country, the commercial capital Johannesburg has been worst hit and Eskom says it would be foolhardy to attract major industrial projects until the situation has been resolved by the middle of the next decade.

"It's a question of supply and demand. It would be irresponsible now to aggressively pursue energy-intensive businesses," Eskom's finance director Bongani Nqwababa was quoted as saying by the Business Day newspaper.

The blackouts have affected everything from factory production to traffic lights with some estimates putting the overall cost so far at beyond two billion rand (280 million dollars, 200 million euros).

"This situation inevitably reduces the country's global competitiveness as an investment destination, especially since it diminishes South Africa's competitive advantage as a low-cost electricity country," Business Unity of South Africa's chief executive Jerry Vilakazi said.

BUSA's concerns are shared by the main labour federation COSATU, a junior partner in the governing coalition, "It has become a serious national embarrassment and could have a major
impact on economic growth and job creation," said COSATU spokesman Patrick Craven.

The blame has been largely put on the government, with Mbeki acknowledging last month that Eskom's appeals for investment several years back had been rejected.

Newspaper headlines have made uncomfortable reading, with The Times bemoaning "Power Cuts Are a National Disgrace" while The Star -- whose printing presses have been halted several times -- proclaimed: "Welcome to the Dark Ages."

Hendrik Schmidt, a spokesman for the main opposition Democratic Alliance, said a shelving of major industrial projects would be a disaster.

"Such a moratorium could derail a number of huge projects, such as BHP Billiton's expansion of two aluminium smelters in Richards Bay" in KwaZulu Natal province, he said.

"Our economy simply cannot afford to chase away investment of this size as it not only undermines our growth potential but also stymies the much needed ability to create jobs."

Even the ruling ANC party is adding to the pressure, with its national executive committee recommending at the weekend that "government urgently develop a national response plan, whose single-minded focus is to keep the electricity flowing."

But amid the frustration, retailers of rechargeable lights, gas cylinders and generators have been enjoying a sales boom.

"They sell like hot cakes. We have nothing left in the store room, except what you see on the floor," said McLaren Magwaza, a salesman at the Mica Hardware shop in Johannesburg.

Rising food costs raise concerns for hungry families

Labour federation Cosatu has warned of widespread hunger among poor families and the unemployed who can no longer cope with the soaring food prices.

"The increases are bound to lead to poor families going hungry as they lack the means to put food on the table because of the high prices" Cosatu spokesman Patrick Craven said.

Last Wednesday Finance Minister Trevor Manuel said the 80% increase in the price of bread over the last 12 months was worrying, adding that a public discussion on the matter was urgently needed.

The already grave situation could be worsened by mass retrenchments linked to the interest rate hikes and characterised by the inability of the economy to create new jobs and risks to existing jobs.

"Employers would try to offset the cost of servicing their loans by retrenching workers and cutting their wages," the labour federation said.

Elsewhere, discontent over food prices has led to riots, demands for higher wages and calls for governments to resign, the United Nations' Food and Agriculture Organisation (FAO) said this week.

The food watchdog has also warned of the possibility of serious social unrest and food shortages in countries like South Africa and other third world nations should the situation remain unchanged.

Cosatu said the situation was certain to create a demand for higher wages which could force unions to embark on countrywide strikes again this year.

President of the National Union of Mineworkers (NUM) Senzeni Zokwana said "the union would ensure this year's wage demands fully compensate workers for the drop in their real standards of living over the past year", adding that "the skyrocketing prices spell disaster for millions of the poorest South Africans".

Another Cosatu union, the Food and Allied Workers Union (Fawu), has observed "none of the increases in food prices find their way into the pockets of the farm and food-processing workers, who remain the worst paid and most exploited of the working class."

Indigent households would be compelled to dig even deeper into their pockets as food prices soar after one of the country's major bakery, Tiger Brands, raised the price of bread by 40 cents a loaf.

In some places people have to buy bread at R6,75.

Two other large bakeries, Pioneer Foods and Premier, were expected to raise the price of its Sasko and Blue Ribbon bread soon.

The situation is exacerbated by government's no longer regulating the price of food.

SACP spokesman Malesela Maleka said it was outrageous the government said and did nothing about depriving people of their staple food, bread, while the white capitalist class and a tiny black majority continued to enrich themselves.

SACP has urged the government to urgently step in and stop the price increase.

Meanwhile, South African Municipal Workers Union (Samwu) general secretary Roger Ronnie said government's macro-economic policy, the Growth, Employment and Redistribution (Gear), had resulted in the dramatic decline in living standards of the poor, which were worse than those that prevailed during the apartheid era.

Food prices were not expected to drop significantly this year, said Andre Jooste, an economist in the Agricultural Marketing Council.

Source: Labour Correspondent, The Herald, 21 January 2008

L'Afrique minée par ses dirigeants

"Nos problèmes sont dus à l'incompétence des leaders du continent", affirme le Zimbabwe Standard.

GHANA for now serves as a strong island of peace in West Africa, as you know that Liberia is enjoying relative peace. Cote d’Ivoire is in a rotational state of collapse and promise as rebels are always threatening President Laurent Gbagbo, day-in-day-out. We all know that the rebels rejected President Thabo Mbeki as a dishonest arbiter.

I am not sure whether today Mbeki will be an honest one in the Zimbabwe’s Sadc-initiated talks. And also given Jacob Zuma’s challenge, Mbeki might emerge as a seriously bruised arbiter. The other compounding factor now being that he has lost the ANC presidency to Jacob Zuma. Only time will tell! Cote d’Ivoire, another interesting African country is a place where you see French soldiers roaming around the streets in their armoured tanks. You only get to be reminded by the black market women that you are still in Africa. Such is the state of shadow colonialism in most Francophone countries, maybe with the exception of Algeria.

Nigeria is quite peaceful as well. But it depends on one’s understanding of peace, as crime rate is soaring and gangs continue to kidnap any white face around them and start phoning mining companies hunting for ransom. At least, President Yar’Adua has pledged to handle the situation once and for all. His record for the last eight months in office, after a disputed election, is proving to be impressive. With the situation in Nigeria, a regional political competitor to Ghana it means that the latter is comparatively peaceful and helping her economy as most countries are no longer trade routes.

Having discussed the West African situation and generally some situations elsewhere, I wish to conclude with a critical analysis of one major factor which forms a serious oversight on our African democracy. It seems as if in Africa as long as one political party stays in power and there is leadership renewal that is democracy. Due to the nature of our leaders, people end up being forced to vote for individuals being placed at the helm of the party, instead of critically engaging political party policies.

Examples include countries like Botswana; whose ruling party to this day, Botswana Democratic Party (BDP) was first elected in 1965, and has continued being elected at five-yearly intervals. Then Tanzania forms another interesting case of TANU which got into power in 1961, then merged with Zanzibar’s ruling party, Afro-Shirazi Party (ASP) in 1964, to form Chama-cha-Mapinduzi (CCM). Since then they have stayed put and that is considered a great mark of democracy. What a shame to democracy!

In Mozambique and South Africa, there are similar cases of liberation winning political parties in power, Frelimo and ANC, respectively. These parties undergo constant leadership renewal only at the apex with all the structures remaining unchanged.

Zimbabwe also has Zanu PF, another case of a liberation winning party. They claim to be civilian here and there, but are quick to engage their liberation mode when seriously challenged. This also forms a major feature of most of these liberation winning political parties in Africa. Be that as it may, an array of questions arises: what has gone wrong with the African leaders? Are we supposed to blame the leaders or the opposition political parties in Africa that seem to fail to understand the same power game and political tactics used now and again? Where is Africa going? Mad men are at the helm of the AU and driving it wild.

Sadly, the recent developments in Kenya, a once promising democracy are a serious cause for concern. The government has gone all out in full military force and massacred innocent civilians who are complaining about a stolen vote. Indeed, the vote has been stolen in the same African ludicrous fashion, with the government showing no tinge of shame. Their only response — instead of saving life — is to accuse Odinga of causing a genocide. Most African scholars and social actionists have blamed Africa’s problems on her colonial legacy. Much as this narrative is plausible what of the actions of the third generational leaders like Mwai Kibaki of Kenya? Can we also blame it on the fact Mwai Kibaki has in the past years been rubbing shoulders with the old tired first generation leaders in the African Union gallery? If it is that contagious then shame be on the future of Africa.

Following these observations one can glean that Africa’s cause for leadership and political change hangs in the balance. The most saddening thing is that very few lessons are there for the aspiring leaders to learn from. One can even speculate that following the actions of our leaders even the young and promising have nothing to build on; as a result the likelihood is that people’s rights will be trampled on even more. At least our prayers now are that the African ancestors save the almost imminent crisis in South Africa.

The angling and framing of my contribution might be accused by some overzealous Pan Africanists as some form of Afro-pessimism. It is not. In fact, it is informed by the fact that too many mistakes continue to be made wantonly by our leaders, as a result this has tended to far out weigh their contributions to our lives. This forms the basis of my contribution and will continue for as long as Africa’s leaders continue to hold the masses at ransom. Otherwise failure to do that is tantamount to dressing oneself on borrowed robes. Africa can not afford sweet talking anymore. All odds are against us. Seemingly, the African ancestors are angry as well.

Entrée en vigueur de la Zone de libre échange de la SADC

Journal Chretien, 9 janvier 2008

La Zone de libre échange (ZLE) de la Communauté pour le développement de l’Afrique australe (SADC) est entrée en vigueur au début de cette année dans beaucoup de pays — sauf en Angola et en République démocratique du Congo, a annoncé ce mercredi un responsable du secrétariat de la Communauté.

Cela signifie que la plupart des marchandises produites dans la région peuvent désormais entrer dans les pays membres sans taxes douanières et peuvent circuler librement entre les Etats membres même si certains pays vont continuer à exiger des tarifs qu’ils estiment susceptibles de les aider à protéger certaines de leurs industries naissantes.

Le responsable de programme au secrétariat de la SADC en charge du Commerce, de l’Industrie, des Finances et des Investissements (TIFI), Willem Goeiemann, a déclaré dans un entretien à APA, que la Zone sera officiellement lancée par le sommet des chefs d’Etat prévue dans le courant de l’année en Afrique du Sud.

Goeiemann a indiqué que les Etats membres de la Communauté, exceptés l’Angola et la RDC, sont en train de mettre en œuvre la ZLE. « La Zone est devenue une réalité et 85 pour cent des marchandises et produits s’échangeront librement dans la région », a t-il précisé.

« La ZLE élimine les taxes prélevées sur les marchandises et produits vendus et encourage les échanges au sein de la SADC », a-t-il ajouté.

Des craintes subsistent toutefois sur le risque que ce ne soit que la puissance économique régionale, l’Afrique du Sud, qui tire véritablement le meilleur parti de cette nouvelle donne étant donné qu’elle exporte plus qu’elle importe des pays de la SADC.

Les observateurs estiment que les marchandises en provenance des grands pays exportateurs tels que l’Afrique du Sud risquent au bout du compte d’inonder les plus petits marchés.

Boom in cement marketing throughout the SADC region

African Review of Business and Technology • July, 2007

Demand cements business prospects: Humphrey Nkonde reports on the boom in cement marketing throughout the SADC region. It's not just stadium construction in South Africa that is attracting new developments in Lusaka and Ndola.

The increased number of construction projects in the Southern African Development Community (SADC) has swelled the demand for cement. In terms of cross-border infrastructure development the SADC region seems to be championing one of the tenets of the New Partnership for Africa's Development (NEPAD) blueprint.

Shortly after the Katima Mulilo Bridge has been completed across the Zambezi River to connect Zambia to Namibia, attention has shifted downstream to Kazungula, where a proposed bridge would link Zambia to Botswana. Although the bridge will connect the two countries, its construction will cover a portion of land in Zimbabwe. To this end, Presidents Levy Mwanawasa, Festus Mogae and Robert Mugabe of Zambia, Botswana and Zimbabwe respectively have signed a Memorandum of Understanding (MoU) regarding construction of the bridge at Kazungula.

On the other hand, the Zambian government has engaged China Henan, a Chinese construction company, to erect a bridge across the Luapula River at Chembe. The Luapula River forms part of the boundary between Zambia and the Democratic Republic of Congo (DRC). Chembe is on the Pedicle Road, a shorter route through the DRC linking Zambia's Copperbelt and Luapula Province. Like at Kazungula, crossing of the Luapula River is done using a ferry.

Cement plant in Lusaka

It could have been these cross-border infrastructure developments that inspired Chilanga Cement Plc in Zambia to embark on a US$120mn project in which it is constructing a new cement plant in the capital Lusaka. The new plant is being constructed adjacent to the almost obsolete one that has been in existence since 1948. The old plant would be dismantled and the site on which it stands turned into a golf course. It is estimated that the new plant would produce 2,000 tonnes of cement per day--double the current production--when it is commissioned next year. During laying of the foundation stone at the site of the new plant on 22 November last year President Mwanawasa said there was a growing demand for cement in Zambia and other countries in the SADC region. President Mwanawasa gave an example of South Africa that would require 600,000 tonnes per annum in the next three years for construction projects as it prepares to host the soccer World Cup in 2010.

For instance, second and third multi-storey parking spaces are being developed at the Johannesburg International Airport. These are some of the fast-track projects earmarked for completion next year. On the other hand, by the end of this year Durban Airport will have an additional 4,000 parking bays. The South African government has reserved R5.2bn for infrastructure development next year.

And describing the multi-billion rand project regarding the football event in Traders African Business Journal, David Jackson wrote: "Projects include building of new soccer stadiums as well as the upgrading and enlarging of a number of others to meet the minimum requirements of FIFA, the world's governing body. One of these criteria is that soccer stadiums must be able to seat a minimum of 50,000 spectators."

Outside South Africa, the other project in relation to sports that would require a lot of cement is the construction of the 70,000-seater Dag Hammarskjold Stadium in Ndola, Zambia's third city. The Chinese government has pledged to construct a modern stadium in Ndola on behalf of the Zambian government. The earlier Dag Hammarskjold Stadium was rased in 1988 purposefully to allow for the construction of a modern stadium so that Zambia could host that year's Africa Cup of Nations. But Zambia was disqualified due to lack of adequate sporting facilities and other supporting infrastructure such as hotels. The stadium was named after Dag Hammarskjold, the second UN Secretary General and prominent Swedish civil servant who died in a plane crash in 1961 some 13km west of Ndola. He was to be in Ndola to broker peace between Congolese government officials and Moise Tshombe, the governor of Katanga Province after the mineral-rich region seceded from the rest of the Congo.

Sports infrastructure

German sports expert Markus Mulfinger from the Germany Sports Development Cooperation Athletics Association who visited Botswana in November last year said there was need for the SADC-member country to construct sports infrastructure. It has been suggested that the gold mining town of Francistown on the border with Zimbabwe should have a modern stadium. Botswana Athletics Association development officer Bobby Gaseitsiwe is reported in the local Mmegi newspaper of 24 November 2006 as saying that there were no sporting events in the northern part of Botswana due to lack of sports infrastructure.

Besides, construction projects contained in Zambia's Fifth National Development Plan would increase the requirement for cement. The Plan, released early this year, seeks to transform Zambia from a low-income country into a middle one by 2030. In terms of construction, the Plan is aiming at increasing the number of hostels at institutions of learning.

Addressing University of Zambia (UNZA) students on 19 January President Mwanawasa said his government was committed to constructing students' hostels as contained in the Fifth National Development Plan. About USS 525,000 (K2.1bn) from the donor community would be spent on constructing a students' hostel within the UNZA campus. Development plans were instituted by first President Dr Kenneth Kaunda's government during which time most of the country's buildings were constructed. These plans were dropped after the government of second President Dr Frederick Chiluba took office in 1991. Today, about 59 per cent of the students at UNZA are not accommodated.

Cement not only contributes to the construction industry but other sectors of the economy as well. As a result of increased local demand for cement in Zambia exports to the Great Lakes countries of Burundi, DRC and Rwanda have gone down. This has affected operations of Mpulungu Habour Management Ltd in Mpulungu, Zambia's only port at the southern tip of Lake Tanganyika. Operations manager Whiteson Mubanga is reported in the Business Post of 23 January as saying that the high demand for cement in Zambia has led to the reduced amount of the building material passing through Mpulungu Port.

Mr Mubanga said this has affected operations of Mpulungu Habour Management whose 65 per cent cargo when operations are normal is cement. Previously the harbour handled 14 to 20 trucks a day but now a truck comes after several days. It therefore means that the road transport sector has also been affected by the reduced cement exports to the Great Lakes region.

Increased production of cement by Chilanga Cement would not only stimulate the road transport but the railway transport as well. Coal for firing limestone and phyllite in kilns would be sourced from a coal mine in Hwange, Zimbabwe to supplement the local supply by Maamba Collieries. Trains will deliver the coal from Hwange to Lusaka using the railway line linking Zambia and Zimbabwe.

Although Chilanga Cement has decided to construct a state-of-the-art plant, it would not satisfy the growing demand for cement in Zambia. With the economic growth projected at seven per cent, there is need for cement for airport development, house construction, food storage sheds, hydro power stations and infrastructure at the newly-opened mines in the North Western Province dubbed as the "New Copperbelt"

As a result, a new entrant Portland Cement has decided to construct a cement plant in Ndola where Chilanga Cement constructed its second plant in 1968. Commerce and Industry Minister Ken Konga said on the Zambia National Broadcasting Corporation television station recently that Portland will spend US$150mn to construct the plant in Ndola. The city lies on the plateau of rocks and minerals stretching from Katanga Province to the gold and diamond mines of South Africa. Outcrops of limestone, one of the raw materials for making cement, could be seen on the outskirts of the city near where Chilanga Cement and Ndola Lime Co have established their plants.

Unlike the old plant that uses the wet process to produce cement from limestone, phyllite and gypsum, Chilanga's new plant would use a more dry process, a technology that it has acquired from CBMI of China. LaFarge, a French multinational company has a controlling share of 50.1 per cent in Chilanga Cement.

Even after Portland starts producing cement, there will still need for more cement in Zambia and surrounding countries. However, investors need to have enough capital as cement production is capital intensive. Chilanga Cement has raised part of the capital through the Lusaka Stock Exchange (LuSE). The cement-producing company has not only shown that some companies that have been in existence for a long time need new technology, it was the first company to be listed on the LuSE, established in 1994.

Le transfert de l'argent par voie électronique bientôt possible dans les pays de la SADC

Les citoyens des pays membres de la Communauté pour le développement de l'Afrique australe (SADC) pourront à partir du mois de février 2008 transférer de l'argent plus facilement par voie électronique à travers la communauté.

Lors d'un point de presse donné jeudi à la direction générale de la poste à Port Louis, le président de l'Association des opérateurs de poste de l'Afrique australe (SAPOA), également directeur général de la société mauricienne des postes, M. Giandev Moteea, a expliqué que sa structure souhaitait atteindre tous les coins et recoins de la SADC.

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Inhabitants of the Southern African Development Community (SADC) member countries will as from February next year have the opportunity to transfer money electronically throughout SADC, APA learns here Thursday.

At a press briefing Thursday at the General Post Office in Port Louis, the capital, Giandev Moteea, President of the Southern African Postal Operators Association (SAPOA) and Chief Executive Officer (CEO) of the Mauritius Posts Limited explained that SAPOA wishes to reach every nook and corner of SADC which will allow the inhabitants to receive their money directly from post offices. Moteea indicated that the project will later integrate into the world system of electronic money transfer.

The CEO added that SAPOA is working on other projects; the main important one concerns the improvement of the international postal services within the SADC countries. He said SAPOA also plans to reduce postal density in some SADC countries; that is the number of inhabitants that are served by a post office. Moteea pointed out that the density is of 11, 300 inhabitants per post office in Mauritius whereas in some SADC countries, it is from 50, 000 to 60, 000 inhabitants.

Speaking of the future projects of the Mauritius Postal Limited for 2008, the CEO explained that the construction of a postal tower in Ebene, 15 km from Port Louis will start in February 2008. He said the company is also envisaging moving the Postal Musuem in Port Louis to a new and modern building in Port Louis.

SADC countries have 4254 post offices, including 103 in Mauritius and employs some 31, 754 persons. Last year, 1.8 million letters and 4.6 million parcels were delivered by SADC postmen.

Podcast a feature on the South Africa’s Department of Trade and Industry

From Engineering News in Johannesburg, 05/12/2007

South Africa’s Department of Trade and Industry has lifted the veil on the country’s new motor industry support policy.

The Motor Industry Development Programme, which is currently under a government review, now seems to no longer focus as heavily on export incentives as the State attempts to bring the policy in greater alignment with Word Trade Organisation rules.

Trade and Industry industrial policy chief director Nimrod Zalk says any subsidies linked directly to exports or local content are viewed as so-called "red-light subsidies" by the World Trade Organisation, and that they can be subject to a fast-track complaint mechanism.

He says this is making the Motor Industry Development Programme “vulnerable”.

The programme is an import/export complementary arrangement, whereby the local content value of components or built-up vehicles exported, earn credits that can be used to rebate import duties on components and vehicles.

The framework of the replacement scheme should be released before Christmas.

Independent power plant developer Ipsa has unveiled plans to fast track the first 250 MW of a 500-MW power station being built in the Eastern Cape.

The rapid development comes as the owner of the coal mine, which will feed the plant, confirmed that the coal reserves will justify an on-site power station.

Ipsa says the fast-track approach is reflecting the national need for South Africa to bring new power capacity on line “as swiftly as possible”.

The Council for Scientific and Industrial Research, or CSIR, and the North West University will jointly establish what will be South Africa’s first hydrogen research centre.

The centre will focus on hydrogen production, storage, delivery and distribution and is expected to greatly reduce South Africa’s dependency on oil and gas and reduce carbon dioxide emissions.

The CSIR says that hydrogen and fuel cells are globally seen as energy solutions that enable clean and efficient production of power and heat from a range of key natural resources, such as platinum.

South Africa has more than 75% of the world’s known platinum reserves.

Fuel pipeline operator Transnet Pipelines says it anticipates that work on its R11,2-billion multiproduct fuel pipeline, from Durban to Gauteng, should start during the first quarter of 2008.

This will be crucial for the company to complete the 24-inch pipeline by the third quarter of 2010.

The company is now only awaiting final licence conditions from the National Energy Regulator of South Africa and a record of decision signalling environmental sanction.

Also in this week’s Engineering News Online:

Automotive fastener companies CBC Fasteners and Nedschroef will have to pay administrative fines after the South African Competition Commission have found them guilty of fixing trade conditions.

Technology group Altron will be going "back to the drawing board", after the Public Investment Corporation blocked its planned buy-out of subsidiary Altech, arguing that the company lacked transformation and representivity of its board.

South Africa’s new vehicle sales have slipped by 13,8%, to 47 707 units in November to its weakest level in the last two and a half years. The National Association of Automobile Manufacturers of South Africa says trading conditions generally, and particularly in the new car market remained "under severe pressure".

South African Civil Aviation Authority has announced that CEO Zakes Myeza will be stepping down. This comes after concerns have been raised about the separate roles of the CEO of civil aviation authority and the commissioner for Civil Aviation.

And in this week’s Engineering News magazine, out on Friday, read our cover story, on new bus rapid transport (BRT) systems.

We also report on the crucial relationship between mature and novice engineers, and look into how private power production can be fostered despite the unattractive price environment.

Finally, don’t miss our features on the Coega development in the Eastern Cape, and the Berg Water Project in the Western Cape.