Eye On Comesa 10

COMESA RIA NEWS

Ethiopia starts coffee exchangeSource: BBC News

Ethiopia, Africa's largest coffee producer, has started trading the crop on a national commodity

exchange.

In a move aimed at both increasing quality and the amount farmers get paid for their beans,

coffee is being traded on the Ethiopian Commodity Exchange.

Replacing the previous, more informal, system of sales through middlemen, farmers will now be

able to get direct access to current market prices.

The exchange has set up a network of warehouses to collect the beans.

The Ethiopian government, which is backing the move, hopes it will prevent fraud, such as

traders passing off beans from a lesser growing area as being those from a higher quality region.

Although the largest growers and co-operatives will be able to continue to sell directly to the

global coffee firms, everyone else will have to use the electronic exchange.

CONTENTS

Page 2Latest Headlines

Page 3Country of the Month

Page 4-5latest Headlines

Page 6Events, About RIA, Quote of the day

EYE ON COMESA ISSUE 10

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09

COMESA REGIONAL INVESTMENT AGENCY

“Opportunities for Doing Business in and Through Mauritius”

The COMESA Regional Investment Agency in collaboration with Ministry of Investment in Egypt and GAFI organized a seminar on Mauritius financial services commission under the theme “Doing Business in and through Mauritius” on Wednesday 17th of December, 2008 in Cairo, Egypt.

The seminar was held under the auspices of H.E. Dr. Mahmoud Mohieldin, Minister of Investment, Egypt, in honour of the visit of the Vice Prime Minister, Minister of Finance and Economic Empowerment of the Republic of Mauritius – Dr. The Honourable Rama Sithanen. The event served as an opportunity for guests to learn more about the benefits of the Mauritius International Financial Centre which has also served as an informative source of how Egyptian businesses can benefit from the various opportunities currently prevalent in Mauritius

The Seminar began with a brief overview and introduction to the relations between Mauritius and Egypt, the Mauritius International Financial Centre and potential opportunities. Opening Remarks by H.E Mr. Rshidally Soobadar followed before the Ambassador of Mauritius to Egypt's presentation.

“We hope that you will be enlightened” exclaimed Mr. Soobdar. He continued to explain how the foreign minister could not make it and that he would hopefully be attending next year. Mr. Soobdar proceeded to explain how there existed a long standing relationship between Egypt and Mauritius.

ETHIOPIA

COMESA REGIONAL INVESTMENT AGENCY www.comesaria.org

MALAWI

Malawi: USD 200m plant for Cement

CompanySource: AfricaNews

Kanyuka. .

A USD 200 million worth cement

manufacturing plant is set to be

constructed by Malawi's cement

company, La Farge in the southern

region district of Balaka. The plant is

expected to be finished within 36

months according to the company's

chairman.

The southern African country's local

Daily Times quoted Kanyuka as saying

La Farge would also have a similar

plant as its sister company in

neighbouring Zambia which has

capacity to produce 800,000 tonnes

of cement per annum.

“The extensive and detailed limestone

exploration which commenced in

September 2007 was completed in

October this year after one year of

drilling. The explored areas included

Chenkumbi in Balaka and Nkopola hills

in Mangochi ,” sa id

Page 4...


PAGE 2 JANUARY 2009

Uganda to secure USD 1.5b from China

Africa Chambers of Commerce

meet in Addis Ababa

Ethiopia: Company expands flower farms

Ethiopia has now became the fourth addressing key African development foreign currency generating product of challenges. the country next to the top three Source: AfricaNewsproducts Coffee, oilseeds and cereals. According to a paper entitled, “Intra-

Africa trade role of chamber of The Chinese government has approved Out of the last year's total of 1.5 billion co m m e rc e ,” p re s e nte d to t h e funding of around USD 1.5 billion for USD export earnings of Ethiopia, coffee conference by Sam Cho from the United Uganda's vast trade zone plan near Lake export has the biggest share generating Nations Economic Commission for Victoria. The plans are for a free trade 500 million USD, followed by oilseeds, Africa, strengthening African chambers zone of 200 square miles, which would which generated 221 million USD and of commerce can play key role to have a major impact on country's cereals generating 141.6 million USD. promote intra-Afr ica t rade by economy.

enhancing the supply and productive Chinese money would fund a new port and logistics centre, an airport, roads capacity. and telecoms infrastructure, facilities

Source: Africa Newsfor manufacturing companies and In 2005 Intra-Africa trade has a share of financial services, an agriculture less than 15% from the total trade,

The African chamber of commerce met training centre and residential and according to Cho’s paper. The paper entertainment areas. in Addis Ababa, Ethiopia, to form one indicated that even though intra-Africa

platform that enables them play key trade potential exists, half-hearted Paradise Investment Company of the roles in promoting trade in Africa. It is commitment to trade liberalization Chinese had signed an agreement last under the theme "private sector-a programs, small economies/market month with Ugandan partner Kagera venue for Africa's Renaissance." The size, low economies, and infrastructure Eco-cities, giving it a majority share in meeting was organized by the Ethiopian are mentioned as the major challenges the management of the zone. Paradise Chamber of commerce and the AU. that hindered the continent from using Investment has drawn up a five-year

its potential. plan to develop the area and around 40 The conference, which was the first of Chinese companies are interested in its kind in bringing together African setting up there business communities, Took place until

November 26, 2008. It focused on the

development and future prospective of

the African chambers of commerce and Source: AfricaNews strives to enhance the role of the private

sector in transforming the continent A Dutch Company engaged in flower from aid to trade. farm development is undertaking expansion project to double the size of Opening the conference, Girma Biru, its existing 250 hectares of land covered Ethiopia’s Minister of Trade and with flower in Zway area. Sher Ethiopia, Industry said: “your gathering will have started operation in 2005 has now great significance in yielding ideas all completed 50% of the expansion and African governments need for their plans to cover a total of 450 hectares of

endeavors to combating common land with flower within one year.

enemies, poverty, ignorance and Currently, a total of 1,200 hectares of

disease.” land in Ethiopia is covered with more

than 80 flower growers. More than

The organizers of the conference 90,000 jobs have been created in or

believe that a competitive and around these flower farm companies. It independent Africa, which is free of aid, is expected that green house coverage could only be realized through the will reach 2,000 hectares in the coming development of the private sector in the two to three years.continent. Ethiopia began exporting flowers in The conference is also to strengthen and 2001-02, when income totaled USD establish a vibrant network among all 159,000. Some 70 percent of the African chambers of commerce and also country's flower products are exported with their counterpart chambers to the Netherlands while 10-15 percent

is exported to Germany. globally. This will promote the active

participation and contribution of The rapidly growing flower sector in African chambers of commerce in

This project financing will represent a landmark transaction for EHC as it establishes itself as a major player in the oil and gas markets in Egypt.

In addition to the Project EHC is also developing Greenfield Ammonium Nitrate project, The Ammonia project reached financial close in 2005 and is being funded under US Exim and commercial debt structure by a syndicate of international banks and expected to achieve Completion early in 2009.

Bank steps in with huge boost for youth polysSource: Kenya Business Daily

Efforts by the Government to improve skills among the youth to levels where they can be employed by expanding youth polytechnics has got a big boost. The African Development Bank (AfDB), whose thrust is financing and promoting economic development and social progress, has agreed to fund the project. The AfDB has committed a Sh 2.8 billion three-year facility to help improve access, quality and relevance of skills

development in the institutions through Uganda, Egypt, Zambia, Zimbabwe and bursaries, training of trainers and Mauritius), with a total population of construction of more polytechnics. more than 390 million.

Its main objective is to forge economic integration in the sub-region through strengthening investment and economic ties among the member states. Mauritius will host the COMESA

(Common Market for Eastern and Southern Africa) Fund that has been established as a vehicle to mobilize resources, PANA reported here Tuesday. One official from the Foreign Affairs, Regional Integration and International Trade Ministry told PANA that the decision to host the fund follows intensive diplomatic negotiations which Minister Arvin Boolell had during his mission to Lusaka, Zambia, for the Council Meeting of the COMESA, on 4-5 December 2008. He described the COMESA Fund as an instrument of Aid for Trade that addresses productive capacity and infrastructure needs, as well as adjustment costs associated with integration and economic reforms. The fund has an Adjustment Facility to address costs that may arise from implementing regional integration measures, including trade. ''The fund also has an Infrastructure Window intended to mobilize resources for the construction and maintenance of infrastructure, and for addressing some of the limited productive capacity of its individual member states,'' he said. The COMESA Fund has been ratified and is now in force. According to him, COMESA has identified a number of important infrastructure projects that would greatly enhance development and integration once implemented. COMESA was established in 1994 to replace the 'Preferential Trade Area'. It comprises of 19 countries (Burundi, Comoros, Democratic Republic of Congo (DRC), Djibouti, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Rwanda, Seychelles, Sudan, Swaziland,

Mauritius to host COMESA FundUnion of the Comoros

Microfinance Leader Makes Multi-m i l l i o n D o l l a r I n v e s t m e n t i n Microinsurance Companies

200 5000

1.5 2.8

525

Source: Mauritius NewsCountry Of The Month

Surface area: 2200 Km2 Capital: Moroni Population (2007): 841,000Official language: Comorian, Arabic and French

Source: PR newswire Currency: Comorian franc (KMF) GDP at market prices (2006): USD 0.40 ACCION has also announced a USD 3 billionmil l ion investment in Leapfrog Real GDP growth rate (2007): 1.24 %Investments. FDI inflows (2006): USD 0.6 million

FDI Stock (2006): USD 25.5 milliona USD 100 million microinsurance Exports of goods and services (2006): investment fund headquartered in USD 11 millionMauritius. The fund, with an expected Imports of goods and services (2006): close in the first quarter of 2009, will USD 110 millionbuild and replicate a sustainable model Main export sectors: Vanilla, Cloves and fo r d eve l o p i n g a n d m a r ket i n g Ylang-ylangmicroinsurance services to the poor, and Main destinations of exports (2006): will conduct early pilots in Africa and Netherlands, France, I ta ly and Asia. Singapore

Main origins of imports (2006): France, Leapfrog positions itself as the first United Arab Emirates, South Africa and global investment f irm focused Pakistanexclusively on businesses that meet the Your Partner in Investmentinsurance and related financial needs of Ministère des Finances, du Budget, de low-income people in developing l'Economie, du Commerce et des countries. Investissements

Moroni, ComorosTel: (+269) 730 000

A USD 200 million worth cement Cash value of the agriculture awards manufacturing plant is set to be held in Zimbabwe. constructed by Malawi’s cement company, La Farge.

The Chinese government has approved Sh 2.8 billion have been commited by funding of around USD 1.5 Billion for the AfDB three year facility to help Uganda’s vast trade zone plan near Lake improve access, quality and relevance Victoria. of skills development in the institutions

through bursaries, training of trainers and construction of more polytechnics.

Ethiopia earned 525 million from Coffee exports in the 2007-09 financial year.


PAGE 3 JANUARY 2009

NUMBERS


PAGE 4 JANUARY 2009

Oman, Libya Sign USD 500M JV Deal Source: The Tripoli Post

The Sultanate of Oman and Libya have signed a USD 500 million deal to establish a joint investment company to be based in Tripoli.

The company will invest in economic, real estate, tourism, industrial, service and energy projects and will also set up joint stock companies to undertake different projects, according to a joint statement.

The State General Reserve Fund will represent Oman in the Oman-Libya Investment Holding Company.

The agreement was signed on behalf of the Sultanate by Dr Qasim bin M o h a m m e d a l S a l h i , O m a n ’s Ambassador to Libya, and Abdulamir bin Mohammed bin Said, Deputy Executive Director of the State’s General Reserve Fund, while Hamid al Arabi al Hudhairi, board chairman and Director General of the Fund for Economic and Social Development, signed for the Libyan government.

Salhi said the signing of the pact was "a clear indicator that Oman-Libya relations are witnessing tangible development." He added that an Omani business team would visit Libya shortly "to have a close look at investment opportunities there."

He called upon Libyan businessmen to take the opportunity to invest in the Sultanate which, he stressed, was working to diversify sources of its income through the establishment of mega projects worth billions of dollars, including a liquefied gas project and petroleum-based industries.

Salhi said Oman's current Five-year Plan envisaged the setting up of an integrated city, with a large spectrum of services in the wilayat of Al Duqm at a cost of USD 7 billion, adding: "The government, in order to attract foreign investment, has worked to liberalise the economy and draft laws to reinforce investor confidence."

(cont’d from page 1) Further elaboration on RIA then took place with Dr. Ziad explaining how RIA

“We are writing a new chapter within was invited to join the delegation in the Economy and the financial sector” Singapore and Malaysia. His excellency claimed. He proceeded His next point revolved around the to explain how with global terror and economic crisis, of which he claimed our current climate that things were was a “reminder” that we need to not easy; “but we have to go ahead” build “bridges”. he added.

The conference concluded with a Further emphasis on the continuation series of presentations, including: Mr. of Egyptian-Mauritian relations was Milan Meetharbhan, CEO of the then put forth. Financial Services Commission; Mr.

Raju Jaddoo, Managing Director o the Mr. Ragab went on to explain how Board of Investment and Mr. Egypt commends this collaboration Mamdouh Abdel Wahab, Director of and that they needed to seize this Investor Relations from the Sawiris opportunity. Property, tourism, Orascom Group. Mr. Milan proceeded infrastructure, IT, trade and sharing to give an “overview of the Financial local talents from both ends were all Services Sector” in Mauritius. He listed as great opportunities for explained, through his presentation, collaboration between Egypt and how the Sector was composed Mauritius. primarily of Global Business and It was noted that Mauritius can be Financial Services other than Banking. perceived as a “bridge” or “gateway” Mr. Raju Jaddoo proceeded to explain to COMESA as well as India. While how Mauritius was a long term Egypt served as a “gateway” for the investment base. Doing business in Mena region. Dr. Ziad began his Mauritius was the focal point of the portion of the seminar by explaining presentation. Export of services and what COMESA is. He conveyed the fact market access were also covered. The that COMESA is “an organization that Orascom presentation explained how brings in 19 countries” and that it has OD Holding is an established integrated proven to be a player to rely on. “The town developer in Egypt and the world is paved with major crises which Middle East, with a proven business urge this kind of collaboration” he model aiming to deliver significant exclaimed before further adding the growth through the development of point that RIA in term acts as large untapped land banks. The COMESA's “investment arm”. seminar ended with a question and

answer session.

Cont... COMESA Woos European Investors


PAGE 5 JANUARY 2009

Zambian government to remove bureaucracy

analysis of a wide range of background conditions and technical aspects outlined in the existing conditions Source: The new times-RwandaSource: Lusaka timesreport.

The Kigali City Council (KCC) has Finance and National Planning Minister, The report considered environmental, unveiled its master plan to the city Situmbeko Musokotwane said the land use, infrastructural, cultural, and investors’ forum to ensure that their Government would encourage private socioeconomic factors as well as investments in line with it. The master sector participation by removing e c o n o m i c a n d d e m o g r a p h i c plan is a roadmap for the expansion of bureaucracy and making it easy for project ions , opportunit ies and Kigali city in the next 50 years.people to start doing business.constraints for the urban development.

According to Aisa Kirabo Kacyira, the P r i v a t e S e c t o r D e v e l o p m e n t The plan also outlines the designs, KCC Mayor, the unveiling of the plan is Association (PSDA) chairperson, Yusuf strategies and actions that will guide also intended to speed-up the Dodia urged the Government to avoid Kigali planners and citizens into future implementation of the city master plan. borrowing from banks next year so as more detailed district plans and This was during the Kigali Investors’ not to create more pressure on the implementation.Forum (KIF) meeting on Tuesday, at the financial sector.

Prime Holding.Mr Dodia said the Citizens Economic The plan contains renewable five year Empowerment Commission (CEEC) and detailed physical plans that will serve as KIF brings together heads of private the Development Bank of Zambia (DBZ) benchmarks for the city planners businesses and parastatals, security should be merged so that they could depending on the infrastructure and o r g a n s , d e v e l o p m e n t p a r t n e r assist Zambians in starting up type of activity to be set up.institutions, districts and government businesses.

institutions to discuss challenges and Since its approval by cabinet, the plan opportunities around the city.has been unveiled to different stakeholders including the youth and The plan’s presentation highlighted

Source: AME info university studies.investment opportunities in and around Plans for new USD 40m five-star hotel the city. Some of the opportunities

Marking a first for Africa and the Arab unveiledinclude hotels, shopping malls, and world, Intel Corporation Chairman Craig

recreation centres. Some of the places B a r re tt a n n o u n c e d t h at I nte l

in Kigali have already been designed for motherboards, a key component for

some specific economic activities computers, will be assembled in Egypt

according to the plan.for shipment across Africa

For example, the proposed Nakumatt New Century Development Limited, a He also opened a research lab for complex and Kigali Convention Centre in Hong Kong registered company developing micro-electronics and for K i m i h u r u ra , a re s o m e o f t h e yesterday unveiled a plan for a Five Star teaching new generations of engineers infrastructures supported by the new Hotel they will construct in the heart of and designers. plan. Against this background, Kacyira Kigali City. called upon investors to take-up the

The arrangement with a local hardware opportunities and make the dream The Hotel, which will be located at the manufacturer is part of Intel's ongoing reality. current Jali Club and the Headquarters effort to advance Egypt's technological,

of both Rwanda Television and industrial and economic development. “Lets your plans align with the city plans Nyarugenge District premises, will be The Egyptian government gave the plan a s we a l s o wo r k to ge t h e r i n constructed at a cost of USD 40m its full support in an agreement signed implementing it,” she lamented. The (approx. Frw22bn).today between Intel, Boraq for city plan also provides centres for

Electronics and Industries and Egypt's administration, residential areas, “The construction begins in January Information Technology Industry technology and other centres. next year and will take two years for the development Authority (ITIDA).

hotel to be fully finished,” said Billy Y.T Faustin Mbundu, the Private Sector Cheung, the Chief Executive Officer of Boraq for Electronics and Industries is Federation (PSF) Vice Chairman, said African Star Limited, a subsidiary of New the first company in Africa to assemble that it is our responsibility to raise funds Century Development.Intel motherboards. Shipping is a n d t a k e - u p t h e i n v e s t m e n t

expected to begin in the second quarter opportunities. According to Cheung, the hotel, which of 2009, with initial distribution

will have over 200 luxury rooms, is the intended for Africa.“We should also merge our plans with first investment the company, which those the city,” he said. The conceptual mainly deals in real estate development, master plan is based on research and is sinking on the African continent.

City master plan unveiled to investors

Intel extends its World Ahead Initiatives in Egypt

New Five Star Hotel Being ConstructedSource: The new times Rwanda


PAGE 7 JANUARY 2009

A business has to be involving, it has to be fun, and it has to exercise your creative instincts.Richard Branson

Ridiculous yachts and private planes and big limousines won’t make people enjoy life more, and it sends out terrible messages to the people who work for them. It would be so much better if that money was spent in Africa – and it’s about getting a balance.Richard Branson

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