BUSINESS - The African Mirror

Nov

25

2020

Malawi ready to produce cannabis for industrial and medicinal use

BUSINESS

MALAWI is ready to start commercial production and processing of cannabis for medicinal and industrial use, the southern African country's new Cannabis Regulatory Authority has announced. Malawi's parliament passed a bill in February that makes it legal to cultivate and process cannabis for medicines and hemp fibre used in industry, but stops short of decriminalising recreational use. A growing number of countries around the world are either legalising or relaxing laws on cannabis as attitudes towards the drug change. They include several in southern Africa, including Zambia, Lesotho and Zimbabwe. The board chair of Malawi's regulator, Boniface Kadzamira, said his…

Nov

24

2020

By The African Mirror

Ethiopia plans to sell 45% of telecoms monopoly Ethio

BUSINESS

ETHIOPIA plans to sell a 45% stake in its Ethio Telecom monopoly, an adviser to the state minister of finance said, as the government pursues the liberalisation of the sector despite an armed conflict in the north of the country. Ethiopia's telecoms industry is considered the big prize in a push to liberalise the African country's economy because of a huge protected market, which serves around 100 million people. Prime Minister Abiy Ahmed is attempting to energise underperforming state-run sectors with reforms. "It is 40% to all interested bidders and 5% will be dedicated to Ethiopians. The 55% will remain…

Nov

22

2020

By The African Mirror

South Africa’s ‘painful’ ratings downgrade will raise borrowing costs – minister

BUSINESS

Finance Minister Tito Mboweni. Photo: GCIS SOUTH Africa's finance ministry says the ratings downgrade by Moody's and Fitch will increase the country's borrowing costs and constrain its fiscal framework. "The decision by Fitch and Moody's... is a painful one," Tito Mboweni, Minister of Finance, said in a statement. There is an urgent need for government to implement structural economic reforms to avoid further harm to the country's sovereign rating, he said. Credit rating agencies Fitch and Moody's lowered South Africa's sovereign ratings further into junk late on Friday on rising debt and more likely weakening in the fiscal strength, while…

Nov

21

2020

By The African Mirror

Italy to pursue Africa debt relief during G20 presidency – diplomat

BUSINESS

ITALY will use its forthcoming presidency of the Group of 20 major global economies to try to secure further debt relief for African states, a senior Italian diplomat has promised. Italy takes over the annual rotating presidency of the G20 on December 1 and will look to build on a deal struck by major international creditors in April that was aimed at relieving the world's poorest nations of debt payments. "Every further move, due to the diversity of the G20 membership, is not going to be so easy, but we will work in order to achieve a good result," said…

Nov

21

2020

By The African Mirror

Zimbabwe Jan-Sept diaspora remittances up 45% y/y due to lockdowns

BUSINESS

ZIMBABWE's central bank governor says official remittances from the diaspora were up 45% during the January-September period from last year at $657.7 million as COVID-19 lockdowns forced people to send cash home via official channels. Diaspora remittances are an important source of foreign exchange for the southern African country, which is in the grip of its worst economic crisis in more than a decade that has seen worsened dollar shortages. Most of Zimbabwe's more than 2 million-strong diaspora live in South Africa, many of them illegally, and often send money via unofficial channels, including buses and trucks. When Zimbabwe and…

Nov

20

2020

By The African Mirror

As new debt crisis looms, Africa needs more than world is offering

BUSINESS

KARIN STROHECKER and JOE BAVIER AFRICAN countries face another debt crisis and will need more long-term help than the latest G20 debt plan offers them to ward off trouble ahead and keep much-needed investments coming in, according to policymakers, analysts and investors. Around 40% of sub-Saharan African countries were in or at risk of debt distress even before this year, while Zambia became the continent's first pandemic-era default last Friday. The United States, China and other G20 countries have offered the world's poorest countries - many of which are in Africa - relief until at least mid-2021 and sketched out…

Nov

19

2020

By The African Mirror

In U-turn, Kenya plans to defer $690 million in debt payments under G20 initiative

BUSINESS

DUNCAN MIRIRI KENYA has changed its mind about a G20 coronavirus debt relief initiative it declined to join earlier this year, and is now planning to defer around $690 million in debt payments, its finance minister told Reuters. Kenya had said in May that it would not seek suspension of debt payments under the G20's Debt Service Suspension Initiative (DSSI), aimed at helping poor countries weather the COVID-19 pandemic, as it found the terms too restrictive. "We have been reluctant in the past because of the attendant unintended consequences in terms of those holding private debt," Finance Minister Ukur Yatani…

Nov

19

2020

By The African Mirror

South African investment conference raises R109-billion

BUSINESS

AFRICAN MIRROR REPORTER THE South African economy, battered by COVID-19, has received a timely boost - the government has raised R100-billion at the third investment conference hosted in Johannesburg. South African president Cyril Ramaphosa has described the conference as a huge success and said focus would now be on implementing the many projects that have attracted investment funding. Ramaphosa was pleased and said the pledges at the 2020 conference showed that South Africa was on track to raise the R1.2-trillion target that was set in 2018. The R109-billion pledged this year by five companies, brought the total of pledged investments…

Nov

18

2020

By The African Mirror

Investors pour $250 mln into new Africa pharmaceuticals company

BUSINESS

A group of three founding investors is pouring $250 million into a new company to acquire and create biopharmaceuticals businesses across Africa that will improve the continent's access to affordable drugs, they said on Tuesday. Africa's pharmaceuticals industry is tiny, and African governments' struggles to procure vital products during the coronavirus pandemic have exposed their dependence upon imported drugs and medical equipment. The group's initial investment funded the acquisition and combination of Egyptian generic drugs maker Adwia Pharmaceuticals and Celon Laboratories, an Indian oncology and critical care specialist. The company aims to use manufacturing and research facilities in India to…

Nov

17

2020

By The African Mirror

Nigerian billionaire Tony Elumelo honoured

BUSINESS

AFRICAN MIRROR REPORTER NIGERIAN billionaire Tony Elumelu has assisted thousands of entrepreneurs across Africa through his empowerment programme, has been honoured. The Belgium government has conferred on him the honorary distinction of the “Officer in the Order of Leopold’, which is the country’s oldest and most important national honour. “I am humbled by this recognition of the work @TonyElumeluFDN in catalysing entrepreneurs across Africa and will continue to drive the economic empowerment of our brilliant young #Africanentrepreneurs to propel development in Africa,” Elumelu said. Elumelu’s foundation - Heirs - said the conferment was in recognition of his commitment to poverty…