African Briefs

SA backtracks on Eskom
JOHANNESBURG – A planned R20 billion equity injection into South African utility Eskom will be funded by the nation’s budget, not an asset sale, the government has said.

South Africa said in a cabinet statement on Thursday it would sell ‘non-strategic’ and ‘non-core’ assets to fund the injection. However, a government spokesman, Themba Maseko, then said in an e-mailed statement the announcement was incorrect. ‘The correct position is that the R20 billion equity injection to Eskom will be funded through the minister’s committee on the budget as part of the budgeting process,’ he said.Zambia watching stronger kwachaLIVINGSTONE – Zambia is closely watching its strengthening currency and economic growth in Africa’s biggest copper producer could exceed the current 6,6 per cent forecast for 2010, Finance Minister Situmbeko Musokotwane has said. The kwacha has gained nearly 12 per cent against the dollar since its weakest point in the second quarter of the year, mainly driven by a higher copper price. It was trading at 4 640 against the greenback on Thursday. ‘The kwacha strengthening definitely does cause problems. I’m not saying that especially for now but in the past it has created problems,’ Musokotwane said.SA manufacturing slowsJOHANNESBURG – Growth in South Africa’s manufacturing output slowed sharply in September, weighed down by strikes during the month and backing the case for interest rates to go lower next week.Factory production contributes about 15 per cent to gross domestic product in Africa’s biggest economy, but remains depressed after last year’s contraction. Output expanded by a less than expected 1,4 per cent year-on-year in volume terms in September compared with 5,3 per cent expansion in August, Statistics South Africa has said.Afreximbank to boost assetsCAIRO – Egypt-based African Export Import Bank (Afreximbank) aims to boost its assets by ten per cent in 2010 to US$1,6 billion with increased lending to African firms involved in agriculture, the bank’s president said. Jean-Louis Ekra said agriculture in Africa was being given a boost because of global concerns about food security that was pushing investment into the sector, and cited opportunities in countries such as Malawi.He also said business risks in Africa were often overstated by investors, and said he expected sturdy growth given the continent’s 1 billion people, foreign exchange reserves in excess of US$450 billion and agricultural potential. ‘Historical data will show that less than one per cent of the money that they [banks] lent in Africa was lost,’ he said.Nigeria vehicle imports slideLAGOS – Nigerian automobile imports fell by more than a quarter in the first ten months of 2010 compared to the same period last year as cash-strapped consumers shied away from big-ticket purchases, industry officials have said.Vehicle sales in Africa’s most populous nation are a proxy measure for private purchasing power, a leading economic indicator which is not formally available in Nigeria.Nigerian port figures showed new vehicle imports in the first ten months tumbled 26 per cent, according to Mohan Sethi, general manager at Nigeria’s Dana Motors, which imports Kia cars and vans. Banks in sub-Saharan Africa’s second-biggest economy tightened lending in the wake of last year’s US$4 billion bailout of nine lenders and credit flows are yet to recover.SABMiller doubles earningsHARARE – SABMiller’s Zimbabwe unit has more than doubled its first-half earnings, as an economic recovery in the southern African nation spurred demand for beer and soft drinks.Operations at Zimbabwe’s largest beverages firm, Delta Corporation, in which SABMiller has a 36,8 per cent stake, have been improving in the past year after a unity government ended a decade of hyperinflation and economic crisis.Delta said headline earnings per share for the six months to end-September rose 1,71 cents from 0,83 cents a year earlier.Orascom not to list in ZimCAPE TOWN – Egypt’s Orascom Telecom will not list its Zimbabwean arm until after the outcome of a deal between between an Orascom and Russia’s Vimpelcom, an executive for the Zimbabwe unit has said. Anwar Soussa, chief commercial officer at Telecel Zimbabwe, also said on the sidelines of a telecoms conference the company expects a 20 per cent increase in customers by 2011, from about 1,5 million now. Telecel Zimbabwe said in June it may issue new shares and list its stock in order to meet regulations on local black ownership.Sierra Leone ups sendingFREETOWN – Sierra Leone announced capital and development outlays up over one third on Friday in a 2011 budget that will drive its deficit up to 5,7 per cent of GDP, but the finance minister said borrowing was under control.In a move aimed at encouraging further private investment, the West African country – which sees growth accelerating from 4,5 per cent this year to six per cent in 2012 – announced cuts to mining sector taxes and levies on imported raw materials.Finance Minister Samura Kamara forecast the 2011 deficit at 492,1 billion leones, up from a deficit of 334,5 billion leones registered at the end of September.Of that amount, 271 billion leones or 53 per cent of the total will by funded by foreign financing, Kamara said.

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