Frost & Sullivan Reveals Its Top Investment Opportunities in Africa for 2010

Wednesday, November 25, 2009

CAPE TOWN, South Africa, November 24 /PRNewswire/ — Africa has garnered new interest from investors over the last year as the economic slowdown in developed economies has highlighted the growth potential on the continent. Many sectors in Africa have continued to shine, despite the global economic turmoil.

“Africa is emerging as a significant frontier for growth in the current economic climate,” notes Frost & Sullivan corporate communications manager Patrick Cairns. “Frost & Sullivan has identified areas of potential we believe investors should keep an eye on over the coming year.”

Frost & Sullivan will be revealing its top investment opportunities for 2010 in an online analyst briefing on Thursday, 3 December at 2:00 pm GMT/ 4:00pm CAT. The briefing will provide insight into the industries that Frost & Sullivan projects will offer the highest returns on investment in the coming year. The markets covered will be telecommunications, business process outsourcing, renewable energy, biofuels, mining and desalination.

Highlights of the briefing will include projections on expected growth rates in each sector and information on key countries that will offer exciting returns. The discussion will benefit private equity firms, financial institutions, development finance agencies and anyone with an interest in investing on the continent, as well as those involved in the industries covered.

To participate in this briefing, please email Patrick Cairns at patrick.cairns@frost.com with the following information: your full name, company name, title, telephone number, e-mail, address, company website and country. Upon receipt of the above information, a registration link will be e-mailed to you. You may also register to receive a recorded version of the briefing at anytime by submitting the aforementioned contact details.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company’s TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit http://www.frost.com.

Contact:

Patrick Cairns. Corporate Communications

T: +27-18-464-2402

E: patrick.cairns@frost.com

http://www.frost.com

Statement by an IMF Mission to Burundi

BUJUMBURA, Burundi, November 24, 2009/ Press Release No. 09/426

A mission from the International Monetary Fund (IMF), led by Mr. Bernardin Akitoby, visited Burundi November 8-21, 2009 to conduct the third review of the government’s economic and financial program supported by an arrangement under the Poverty Reduction and Growth Facility (PRGF).

The mission met with President Pierre Nkurunziza; the First Vice-President, Dr. Yves Sahinguvu; the Second Vice-President, Gabriel Ntisezerana; the President of the National Assembly, Pie Ntavyohanyuma; the President of the Senate, Gervais Rufyikiri; the Minister of Finance, Clotilde Nizigama; other key Ministers; and the Governor of the Central Bank, Mr Gaspard Sindayigaya. The mission had constructive discussions with members of the donor community and civil society.

The mission issued the following statement in Burundi on November 23, 2009:

“Performance under the PRGF-supported program has been broadly satisfactory. All quantitative performance criteria for September 2009 were observed, and structural reforms are moving ahead, including in the coffee sector. This performance has been achieved against the backdrop of the global financial crisis. Real GDP growth in 2009 is projected to moderate to 3½ percent, from 4½ percent in 2008, mainly reflecting lower private transfers and foreign direct investment, and electricity shortages. Headline inflation (end of period) is projected to decline from about 26 percent in 2008 to below the 9 percent the program envisaged. The macroeconomic outlook in 2010 is generally positive with real GDP projected to rise by 4 percent and inflation declining further to 7.5 percent. Downside risks include mainly the uncertain external environment and electricity shortages.

“For 2010, policy discussions focused mainly on the 2010 budget and the need to preserve macroeconomic stability and revive growth in the face of the challenging economic environment. The mission was encouraged by the authorities’ efforts to consolidate progress on revenue collection and reallocate spending to priority sectors. The mission encouraged the authorities to consolidate progress in good governance and deepen structural reforms, including in the coffee sector.

“The mission confirmed that the IMF will continue to help Burundi to address these challenges. The IMF Board is expected to consider the staff report on the third review of the PRGF-supported program in January 2010. The mission would like to thank the authorities for their warm hospitality and the very close and constructive cooperation.”

SOURCE: International Monetary Fund (IMF)

Saudi-East Africa forum held in the Ethiopian capital

Monday, November 23, 2009

By Tesfa-alem Tekle

Nov16, 2009(ADDIS ABABA) – The Saudi East African forum, a new initiative that offers unique opportunity for trade, investment and to promote and exhibit products and services between Saudi Arabia and the East African countries winded up today in the Ethiopian capital, Addis Ababa.

In the joint forum, seven East African countries, Ethiopia, Djibouti, Tanzania, Kenya, Somalia, Uganda and Rwanda represent their head of states while the kingdom sent four of its ministers, government representatives, bankers and entrepreneurs.

Speaking at the opening of the forum yesterday, Ethiopian Prime Minister Meles Zenawi who lauded the initiative said that historic ties of the two sides needs to further be consolidated to a long-term economic and investment bonds.

Saudi Arabia is one of world’s biggest food importers. It has laid its eyes in the East African region not only because of it’s easily access able geographical location but also because the region offers rich fertile agricultural land, cheap labor and favorable agricultural climate, among others.

The Ethiopian prime minister at the occasion explained availability of market, suitable climate condition and good investment policy in his country. He called on Saudis to invest in Ethiopia and in the region as a whole further reassuring his government’s commitment to provide every support to willing investors.

Saudi Arabia commerce and industry minister to his part said that Saudis are keen to boost economic partnership with countries of the region.

“Saudi Arabia is committed to combating hunger, to provide support for the host country but also to generate exports. We are not to impose our needs above the needs of local population” Minister Abdullah Bin Ahmed Zainal Ali reza said.

“We will engage in various developmental activities in the continent in general and in the east African region in particular for the reason of geographical ties to Saudi” He added.

The seven east African representatives to their side have assured Saudi officials their readiness to boost all rounded ties with the Arab nation further guarantying that their doors are open to Saudi investors.

The new initiative is believed to open a new era in promoting partnership and cooperation between Saudi Arabia and the sub continent.

According to organizers in Addis Ababa, the forum will be backed by a Saudi exhibition in which more than 50 leading companies will showcase their products and know-how and network with officials and investors from East African countries.

“The groundbreaking gathering is a watershed in Saudi-East African relations and a stepping stone toward an economic alliance that will combine the huge natural resources and economic potentials of these countries with the vast financial resources and vast experience of economic development of Saudi Arabia.” Arab news quoted an official from Saudi ministry of commerce as saying.

The East African nations have a market base of 130 million consumers. The Kingdom is also a member of the G20 and is able, through its standing as a world economic power, to assist East African nations by channeling substantive support and assistance to these countries and their future economic planning, the official added.

Saudi Arabia goes at the right time to present the five East African nations with an ideal partner as it is one of the most stable countries in the Middle East as well as one of the largest food importers in the region. Saudi Arabia is also a large market with a GDP of $400 billion.

Ethiopia will become net power exporter in the region within 10 years

Addis Ababa, November 17, 2009 (Addis Ababa)

Ethiopia will become a net power exporter within ten years, exporting to Kenya, Sudan and Djibouti, Reuters and African Press Agency reported.

Some six hydropower dam projects funded by bilateral government agreements and other financial institutions are under construction in Ethiopia. When the hydro power projects go into completion, the nation will begin power export to neighboring countries including Sudan, Djibouti and Kenya, according to the report Reuters and the Agency dispatched in connection with inauguration of the Tekeze Dam.

The Tekeze Dam has started producing 80 MW and that will rise to 300 MW. At 185 meters, the Tekeze dam is the tallest hydroelectric dam in Africa.

The report said the dam is on the country's Tekeze River and its 356 million USDs cost was fully covered by the government.

Ethiopia in September agreed deals with another two Chinese firms, China Gezhouba Group Company and Sinohydro Corporation, to build two huge hydropower projects.

According to the report EEPCo has also signed a preliminary agreement with the Hydrochina Company for the construction of two wind farms to be reserved for emergency power shortages.

Landlocked Ethiopia is a country with mainly high mountainous landscape which provides a vast hydroelectric potential up to an estimated 40, 000 MW.

The report said Ethiopia will spend 12 billion USDs over 25 years to improve its power supply.

Source

Gaddafi asks food summit to stop Africa "landgrab"

ROME (Reuters) Mon Nov 16, 2009 - Libya's Muammar Gaddafi called for an end to the purchase of African farmland by food-importing nations at a U.N. hunger summit on Monday, describing it as "new feudalism" which could spread to Latin America as well.

"Rich countries are now buying the land in Africa. They are cheating African people out of their rights. This is also going to happen in Latin America ... ," he told the summit, which was mostly attended by African and Latin American leaders.

"Small farmers are being bereft of their own land thanks to new feudal powers coming from outside of Africa and buying up land very cheaply," Gaddafi told the meeting at the headquarters of the U.N. Food and Agriculture Organisation in Rome.

"We should fight against this new feudalism, we should put an end to this land grab in African countries," he said.

High food prices which sparked a food supply scare in 2008 prompted countries like Saudi Arabia, China and South Korea to seek farmland abroad.

The FAO plans to draw up guidelines to try to safeguard the sometimes conflicting interests of local farmers and investors for the governance of land and other natural resources, and is consulting companies, farmers and independent experts.

French Farm Minister Bruno Le Maire said on the sidelines of the U.N. summit that "predatory" farmland acquisitions in poor countries should be halted.

But U.N. officials said investments in land could also benefit small farmers in the developing world.

"It is a wrong language to call them land grabs. Those are investments in farmland like investments in oil exploration," said Kanayo Nwanze, who heads the U.N. International Fund for Agricultural Development. "We can have win-win situations."

Earlier this year the International Food Policy Research Institute, a Washington-based think-tank, said that since 2006 15-20 million hectares of land in poor countries had been sold or were under negotiations for sale to foreign buyers.

Supporters of such deals say they provide new seeds, technology and money for agriculture in economies that have suffered from under-investment for decades.

FAO Director-General Jacques Diouf told the summit "private investment should be encouraged," both domestic and foreign, but rules were required "preferably within the spirit of a code of conduct on agricultural investment in developing countries."