Africa: How Important Is Rio+20?

As the customs of global environmental governance dictate, world leaders gathered in Rio de Janeiro last week to argue their way around the possibility of saving the planet. After three days of talks and political posturing the planet is no closer to being saved, raising concerns of the relevance of the United Nations climate conferences.

June 29, 2012 (AllAfrica by Khadua Patel) -- Of the nearly 100 heads of state and various government officials who travelled to Brazil for the "Rio+20" United Nations Conference on Sustainable Development, US President Barack Obama and German Chancellor Angela Merkel were notable absentees.

Environmental challenges don't appear to figure too prominently in the world's current serving of geopolitical, economic and technological challenges. Concerns about climate change, the environment and biodiversity do appear to pale against all this noise of bombs, bonds, bailouts and austerity - but then environmental threats only exacerbate these challenges.

Experts Stress Need for Sustainable Development in Africa

June 21, 2012 (AfroFutures) -- RIO DE JANEIRO, Brazil – Innovative sources of finance and resources from the private sector are key to achieving sustainable development in Africa, African leaders and world experts said Monday at the United Nations Conference on Sustainable Development (Rio+20), in Rio de Janeiro, Brazil. Speaking at the high-level panel on “Financing Sustainable Development in Africa”, African states and their partners discussed resource mobilization for sustainable development – both domestically and internationally.

The panel, representing a number of partners such as the African Development Bank (AfDB), the UN Environment Programme (UNEP), the UN Economic Commission for Africa, the Ivorian ministry of Economy and Finance and the Pan African Chamber of Commerce and Industry also addressed the divide between the managers of money (international finance institutions – development banks, donors etc.) and facilitators of development such as NGOs.

Ham: Africa Presents Opportunity, Challenges

 June 20, 2012 – (US Department of Defence) STUTTGART, Germany -- For decades, Africa was arguably the most overlooked continent on the globe, with U.S. military involvement there shared among three combatant commands and engagement activities episodic at best.

Army Gen. Carter F. Ham, commander of U.S. Africa Command during a March 9, 2011, address near Stuttgart, Germany. DOD photo by Stuart Java

But five years since the standup of U.S. Africa Command, its commander called Africa a land of great opportunity, but he also said the continent presents threats not only to the immediate region, but to the United States and its interests as well.

“There are a lot of reasons why Africa matters to the United States,” Army Gen. Carter F. Ham said during a recent interview with American Forces Press Service at his headquarters here.

Opportunity abounds on the continent, with some of the world’s fastest-growing economies and a young, vibrant and growing population that’s already topped a billion people, he noted. Meanwhile, Africa is experiencing growing democratization, with Africans increasingly choosing their own governments in a way that contributes to both regional and continental stability.

But amid these positive developments, Ham cited some negative trends he said have the potential to impact the security of America and its partners and allies.

Natural gas discoveries put East Africa on world energy map

June 20, 2012 (Somalilandpress) -- JOHANNESBURG — Massive offshore gas discoveries in East Africa are catapulting the region into a major player in the global energy arena, bringing billions in investment that could transform entire economies.

Workers near border-town Heglig, Sudan

Off the pristine beaches of Africa’s Indian Ocean coast, multinationals have struck gas — well upon well upon well.

Planned investments worth tens of billions exceed the gross domestic products of some host countries, which range from regional power Kenya to impoverished Mozambique.

East Africa’s coastal region, stretching out to Seychelles holds 441.1 trillion cubic feet of natural gas, according to the US Geological Survey. That’s about 50 percent more than in Saudi Arabia.

Egypt's Presidential Election: A Victory for Uncertainty?

Both presidential candidates campaigned on a platform of stability, but results place Egypt on course for a volatile future.

June 19, 2012 (Think Africa Press) -- In the chaos of downtown Cairo, four teenage boys began beating against the windows of an upmarket cafe, laughing and making crude and threatening gestures at the women inside. “Is this what our revolution was?” One woman asked in disgust. “Did our martyrs die so that the kids would believe they could get away with anything? Did we get rid of Mubarak so that we wouldn’t feel safe on the streets any more?”

Egyptians voting in  first round of 2012 Presidential elections

Further north in Alexandria, hotel clerk Ahmed seemed to agree. “Since the revolution, the police have lost their power – security forces are afraid of us now! If we want to cross the road, we cross the road; if we want to take their guns, we take their guns!” One policeman who I spoke to insisted he was afraid to continue doing his job, and planned to leave the country. “There is no respect for the law any more.”

Tanzania: Local Economic Growth Faces Uncertainty

June 5 2012 (allAfrica) -- Dar es Salaam — Lack of foreign reserves, an unstable Shilling, power blackout, high inflation rate, inadequate infrastructure as well as imbalance of trade are the major challenges which hinder economic growth in Tanzania.

Mr. Phumelele Mbiyo, the Regional Head of Macroeconomic Research for the East Africa region at Stanbic Bank said in Dar es Salaam last week that in order to attain economic growth, the government should maintain the 6.8% economic growth, control inflation and exchange rates, reduce power cuts as well as build strong foreign reserves that have been dropping over the years.

Mbiyo was presenting a paper on "Re-establishing macroeconomic stability; laying the foundation for sustained economic growth," during the Tanzania Economic Forum which organised by Stanbic Bank Tanzania.

Kenya: Thika Power Gets Sh3 Billion Investment Jolt

June 5, 2012 (allAfrica) -- Nairobi, Kenya — Thika Power has got a Sh3 billion investment jolt from IFC to help it develop an Independent Power Project near Nairobi.

Thika Power will sell all output to national distributor Kenya Power, increasing the supply of reliable electricity in the country.

The power plant that produces 87 Megawatts will use heavy fuel oil (HFO), which will help diversify Kenya's electricity away from hydropower.

During times of drought, when hydropower drops in supply, Kenya has had to turn to costly emergency power.

HFO plants are a quicker and viable option to address the energy deficit in Kenya, given the relatively long development period of other sources like geothermal energy and coal.

The impact oil price hikes could have on African frontier markets

June 5, 2012 (Investment Europe) -- Oil production and consumption varies across Africa, so a higher oil price will affect some economies less than others, says Frank Monkham at Alterior Research.

Commodities markets are back on the investor’s radar. The recent rebound in global economic activity and risk sentiment has lifted demand for energy-related commodities, with oil once again taking centre stage.

On the supply side, geopolitical strains in the Middle East, coupled with shrinking aggregate inventories have been supportive to price action.

Ndulu for hefty investment in mining, energy sectors

June 4 2012  (IPP Media from The Guardian by Lusekelo Philemon) -- Bank of Tanzania (BoT) governor, Prof Benno Ndulu has asked financial institutions in Africa to work hard and find serious investors in the mining and energy sector.

BoT Governor Benno Ndulu

Wrapping-up annual meeting of the Association of African Development Financial Institutions (AADFI), which was part of the just-ended African Development Bank (AfDB) meetings, Prof Ndulu said Africa is in dire needs of serious investors for the two sectors.

He said AADFI and its members have a role in ensuring that the continent gets potential investors in the said sectors, which indeed need heavy and long-term investments.

Ndulu also commended efforts by AADFI in addressing challenges facing the finance sector across the continent.