BUSINESS - The African Mirror

Sep

12

2020

Strategic Somaliland touts its oil and gas as opens Taiwan office

BUSINESS

BEN BLANCHARD THE strategically located, self-declared African nation of Somaliland touted potential oil, gas and tourism resources for investment as it opened a de facto embassy in Taiwan on Wednesday, a relationship that has angered China and Somalia. Taiwan signed the agreement on establishing representative offices with Somaliland in February, but did not make it public until July. Situated on the Horn of Africa, Somaliland borders Djibouti, where China maintains its first ever overseas military base. Both China, which claims Taiwan as its own, and Somalia have expressed their opposition to Taiwan and Somaliland's forging of ties. Somaliland declared independence…

Sep

11

2020

By The African Mirror

Sudan declares state of economic emergency due to fall of currency

BUSINESS

SUDAN has declared an economic state of emergency after its currency fell sharply in recent weeks due to "systematic vandalism," officials said. The transitional government, in charge of the country since the ouster of Omar al-Bashir last year, will set up special courts in the next days to fight smuggling and other illicit activities undermining the economy, officials told a televised news conference. The pound had fluctuated drastically in recent days, prompting major food suppliers to halt distribution of their products and pushing prices of food up between 50% and 100% at supermarkets and retailers, a Reuters witness said. It…

Sep

10

2020

By The African Mirror

Nigeria asks for $1.1 bln advance from Eni, Shell for damages in graft case

BUSINESS

Nigeria asked a Milan court on Wednesday to order Eni and Royal Dutch Shell to pay $1.092 billion as an immediate advance payment for damages it is claiming in one of the oil industry's biggest-ever corruption trials. At a hearing into alleged corruption linked to Eni and Shell's 2011 acquisition of the OPL 245 field, Lucio Lucia, lawyer for the Nigerian government, called for a guilty verdict and an advance payment, ahead of any broader damages package set by a court at a later date. Lucia did not specify how much Nigeria was seeking in damages overall but said the…

Sep

10

2020

By The African Mirror

South Africa’s Shoprite to quit Kenya

BUSINESS

SOUTH Africa’s Shoprite Holdings plans to sell or close its remaining two stores in Kenya by the end of December, leaving the East African country two years after entering it. The supermarket group has been reviewing its long-term options in Africa as currency devaluations, supply problems and weak consumer spending in Angola, Nigeria and Zambia have weighed on earnings. “Kenya has continued to underperform relative to our return requirements,” the company said on Tuesday as it posted a 16.6% rise in annual group earnings, adding its decision to leave had been cemented by the economic impact of the COVID-19 pandemic.…

Sep

08

2020

By The African Mirror

South African economy plunged 51% in Q2 during strict lockdown

BUSINESS

MFUNEKO TOYANA SOUTH Africa's economic output shrank 51.0% in the second quarter, its fourth quarterly contraction in a row and largest on record, as a strict lockdown to curb the spread of the coronavirus shut down most activity, data has showed Africa's most industrialised nation has been hit hard by the COVID-19 pandemic, recording the seventh-largest number of cases worldwide, although it has seen fewer deaths than some other badly affected countries. Analysts polled by Reuters had predicted a 47.3% contraction because of the lockdown restrictions, which were among the harshest in the world. "This is the first time in…

Sep

08

2020

By The African Mirror

Nigeria’s Buhari calls electricity price rise, petrol deregulation crucial decisions

BUSINESS

NIGERIA'S increase in electricity prices and the deregulation of petroleum sector were crucial decisions taken at the start of the year, a statement by President Muhammadu Buhari said on Monday. Multilateral lenders have for years urged Nigeria to remove costly fuel subsidies, change electricity tariffs which have held prices artificially low and end the country’s multiple exchange rate system. Last month sources said a much-needed $1.5 billion World Bank loan was held up due to concerns over such reforms. The government in March announced a new pricing mechanism that it said would maintain its control, but allow prices to move…

Sep

08

2020

By The African Mirror

Ethiopia to sell 5% stake of state-run telecom co to citizens

BUSINESS

ETHIOPIA plans to sell a 5% stake in its state-run telecommunications firm to its citizens as part of measures to break up the monopoly, state-affiliated Fana Broadcasting said on Monday, quoting Prime Minister Abiy Ahmed. The sale of the stakes is part of Ethiopia’s plans to open up one of the world’s last closed telecoms markets in the nation of around 110 million people. Fana said the government will retain a 55% stake in Ethio Telecom, with the remainder going to international companies. In June, the telecoms regulator said it had received 12 bids for the two telecoms licences the government…

Sep

05

2020

By The African Mirror

UK court allows Nigeria more time to appeal in $10 billion dispute

BUSINESS

LIBBY GEORGE A London court has given Nigeria more time to appeal in a $10 billion arbitration case, although Friday's Commercial Court ruling did not specify the length of the extension in the long-running dispute. Process & Industrial Developments (P&ID) won a $6.6 billion arbitration award after a 2010 deal to carry out a gas project in Nigeria collapsed. This has been accruing interest since 2013 and now totals nearly $10 billion, which if Nigeria has to payout would dent the oil-producing country's foreign reserves. Nigeria has alleged corruption in the contract and the ruling will allow the government more…

Sep

05

2020

By The African Mirror

Ethiopian Airlines in rescue talks with South African Airways – CEO

BUSINESS

ETHIOPIAN Airlines is in talks over possible involvement in the rescue of flagship carrier South African Airways (SAA), the head of the airline told Reuters on Friday. SAA hasn’t made a profit since 2011 and has been under a form of bankruptcy protection since late last year. Creditors have approved a restructuring plan, but the government needs to find at least 10 billion rand ($580 million) of funding for it to work. “Some discussion is taking place between ET and the South African Public Enterprises Ministry,” Tewolde Gebremariam said, “but it is at a very initial level and part of…

Sep

04

2020

By The African Mirror

Ghana court dismisses MTN’s challenge against market regulator

BUSINESS

A high court in Ghana has dismissed the local MTN unit’s challenge to a move by the national telecommunications regulator aimed at exposing it to greater competition, the company said on Thursday. In June, MTN appealed a decision by the National Communications Authority (NCA) to designate it a significant market power, a move that requires the regulator to take corrective action. But in a Sept. 1 decision, the court “dismissed the company’s application,” MTN said in a statement. It said it maintained its position that the NCA’s decision was unfair from a procedural standpoint and would “explore all available options…