Manufacturing under stress Nigeria

Nigeria
Manufacturing under stress
Nigeria may have the largest domestic market in Africa and may be attracting greater FDI than ever before, but its manufacturing sector has been going downhill rapidly. Williams Ekanem explains why the country’s producers are raising the alarm.

During the African Nations Cup football tournament in Ghana earlier in the year, Nigeria, which considers itself the ‘champion’ of Africa in most aspects of life, had to swallow the bitter pill of defeat against their arch West African rivals, Ghana.

Now it seems that it is not only in football that Ghanaians are taking over from Nigeria, it is also happening in business. In July, Dunlop Nigeria plc, which is quoted on the Nigerian Stock Exchange, announced plans to substantially scale down its activities in Nigeria. Although the tyre company did not publicly announce it at the time, industry sources say it has its eye on relocating to Ghana.

After producing tyres in Nigeria for 45 years, Dunlop said it will be closing its N8bn ($68.3m) tyre plant and will now import tyres from South Africa and other Dunlop factories around the world. The fate of at least 1,200 Nigerian workers hangs in the balance.Dunlop is not the only company considering taking this route to maximise its industrial capacity: Unilever, a household products manufacturing company with substantial investment in Nigeria, considered a similar option some months ago. Michelin, another tyre manufacturing company, has closed down its business in Nigeria after 30 years of operations in the country. When the tyre company folded its local production in the country, it took to the more lucrative option of full-scale importation of tyres and is said to be considering returning to the West Africa sub region via Ghana to stay in competition.




Ecobank's Route to the Top in 'Middle Africa'
IF IT'S July it must be Burundi. It was Gambia in January, Malawi in March and Kenya in June. And so one of the continent's fastest growing multinationals, Ecobank Transnational Incorporated (ETI) , continues its march through Africa.
"We don't have an Africa strategy. Africa is our strategy," says Arnold Ekpe, one of Africa's top businessmen and Group CEO of Ecobank.
The west African banking group's expansion has picked up pace in the past year, with six new country operations launched since January. Its latest subsidiary -- Ecobank Burundi -- opened in the central African country in July, bringing to 24 the total number of countries in which the group has banks across the continent. ETI started life as a regional bank back in 1985 with 1200 shareholders from 14 countries. It aimed to fill the gap created by the lack of commercial banks in west Africa. It was incorporated with an authorised share capital of $100m and start-up capital of $32m raised from shareholders across west Africa.
As a result it always had a regional strategy, starting with west Africa and moving to east and now southern Africa. Currently, the bank has 7000 shareholders, including institutional investors, and more than 8000 staff across 27 African nationalities, highlighting the pan-African nature of this network. The group has its headquarters in Lome, capital of the tiny west African country of Togo, which many South Africans would be hard pressed to find on a map.
Why choose one of Africa's smallest countries to base one of its largest companies? Ekpe, who hails from Nigeria, the giant down the road, says the government in Togo offered the company privileges such as tax-free status, certain exchange control exemptions and other measures to lure it to set up there.
"This suited our regional objectives at the time but now it has become a competitive edge. It's a very neutral place to be based," he says.
Ekpe talks about being the leading bank in what he calls "middle Africa" -- that large swathe of business opportunity between the Sahara Desert and SA. And it seems to include that slightly smaller area between the Atlantic Ocean in the west and the Indian ocean in the east.
Ecobank's expansion strategy is primarily one of acquisitions. For instance, it has taken majority stakes in International Bank for Africa in Chad, Loita Bank in Malawi, Bank of Commerce, Development and Industry in Rwanda, BICA in the Central African Republic, Societe Burundaise de Banque et de Financement in Burundi, and EABS Bank in Kenya.
Ekpe says acquisitions have been a preferred, but not an exclusive, strategy and where a desirable target does not exist, greenfield operations have been established. But in every case, the institution carries the Ecobank name. "We are always the major shareholder because we put the Ecobank reputation behind every subsidiary and we need to control this reputation." Ekpe is steeped in Africa's banking world with a management pedigree in banks such as Citibank and United Bank for Africa, one of Nigeria's biggest banks. He is no stranger to Ecobank, having first served as its CEO from 1996 to 2001.
He was asked to rejoin the bank in 2005. Ekpe says that the group aims to be one of the top three banks in its markets. The group's emphasis is on cross-border business as well as high street banking. The regional strategy is backed up by a strong technological component, with backroom operations harmonised across operations.
Some of the countries are tiny markets and getting ahead is not difficult. But what about a country such as Nigeria, which now has some of the biggest emerging banks on the continent? Ecobank has been in talks with one of Nigeria's biggest -- First Bank of Nigeria -- but three years down the line, a deal is yet to be signed, signalling that it may be doomed. Analysts say that the delays are about management issues rather than about mutual benefit -- Ecobank needs First Bank's market share in Nigeria and the latter would like Ecobank's regional spread.




African Business’ Annual Rankings

Africa’s banking sector, miraculously spared the fallout from the subprime disaster, continues to consolidate growth and improve performance. The total assets of the 100 banks that appear in our rankings reached $856bn – a rise of 36% over last year while aggregate Tier 1 capital rose 47% to $60.6bn. However, the continent’s 25 top banks hold almost 85% of the region’s banking assets with the ‘big five’ South African banks alone accounting for 42% of the total continental assets. Nigerian banks, as they have done for the past five years, continue to climb up the leader board and although they may still be far behind the South African behemoths, they are laying a strong challenge to North African financial institutions. But, wherever in Africa you look, the industry, once viewed as rudimentary at best, has been transformed so radically over the past decade it is now almost unrecognisable. Modern, reliable, automated banking has become a matter of fact. Institutions are fewer but stronger. Line managers are better qualified and retail and corporate clients can expect improved services as the continent’s financial systems become ever more sophisticated and complex. Over the last five years, our annual rankings have made intriguing reading — while the positions at the very top have shifted only slightly, the ‘second’ rank has shown considerable activity. What the charts will show in another five year’s time is anybody’s guess but the one set of figures you can count on to continue increasing will be in the total assets column. More...







Robben Island in troubled waters
Nelson Mandela’s world-famous prison home for 18 years is sinking under the weight of a multitude of financial and regulatory problems. Tom Nevin reports

If there is a shrine to South Africa’s liberation heroes it is Robben Island. It was on this small, 1km wide patch of arid earth in the Atlantic Ocean some 11km from Cape Town, that struggle icons led by Nelson Mandela were incarcerated for decades to keep them from leading the fight for freedom against apartheid.

Since 1994 it has assumed a virtually spiritual significance and in the last 14 years has been visited by millions from around the globe, all keen for a glimpse of what Mandela’s life for 18 years on the tiny prison island might have been like.

So it was with a sense of outrage and betrayal that South Africans learned of a raft of administrative troubles there, including alleged mismanagement, a budget crisis, and seizure, by the sheriff of the court, of the new motor launch that ferries visitors to the Table Bay island prison. The island is also infested by 4,000 rabbits that have overrun the world heritage site which is treasured for its colonies of penguins and endangered birds.

Zimbabwe’s political woes get ‘African solution,’ or have they?

Zimbabwe’s political woes get ‘African solution,’ or have they?
MKUMBWA ALLY
Daily News; Thursday,September 18, 2008 @20:02
MORGAN Tsvangirai called the agreement “the deal of our lives…hope of a new beginning” while for Prof. Arthur Mutambara it was “the result of Zimbabweans’ efforts under African guidance… an African solution to African problem.” President Mugabe dedicated the achievement to South Africa President Thabo Mbeki’s objectivity and exceptional mediation skills. “He conducted the negotiation in an insistent, persistent and extremely thorough way.”
President Mbeki, the proud SADC-appointed mediator, said the agreement was “the message Zimbabweans have been waiting for.”
The AU Chairman, President Jakaya Kikwete, described the accord as “the beginning of the end of the dark shadow that caused immense pain and suffering to the people of Zimbabwe.”
The excitement and optimism over the breakthrough in Zimbabwe’s political impasse, which was announced by Mr Mbeki on Thursday last week, was vivid among the parties to the agreement and the witnesses.
Eight of the 14 SADC heads of state and government attended the ceremony to demonstrate their endorsement. The other leaders in attendance were King Mswati III of Swaziland, Presidents Ian Khama of Botswana, Joseph Kabila of the Democratic Republic of Congo, Armando Guebuza of Mozambique, Hifikepunye Pohamba of Namibia, Zambia’s Acting President Rupiah Banda and Lesotho Prime Minister Pakalitha Mosisili.
The agreement The 30-page document providing the framework for resolution of the economic and political challenges facing Zimbabwe comprehensively covers all areas responsible for political polarization, the fall in living standards and economic decay.
Economic restoration is high on the agenda. Article III commits the parties to work together “on a full and comprehensive economic programme to resuscitate Zimbabwe’s economy, which will urgently address the issues of production, food security, poverty and unemployment and the challenges of high inflation, interest rates and the exchange rate.”
A National Economic Council comprising representatives from the manufacturing, agriculture, mining, tourism, commerce, financial, labour sectors and the academia would be established to advise the government on formulation of economic plans and programmes.
The parties acknowledge the negative impact of international isolation of Zimbabwe and denial of lines of credit in the last decade and calls in Article IV for the lifting of “all forms of measures of sanctions” to support a new drive to raise the standard of living. The new government would re-engage the international community to end Zimbabwe’s isolation.
Land question The agreement provides in Article V that the compulsory acquisition and redistribution of land under the land reform programme launched in 2000 is irreversible, but introduces measures to ensure holders use land productively and reaffirm women’s access and control over land as equal citizens.
A comprehensive land audit would be carried out in the next five years to check multiple farm ownerships.
Future land allocation will be transparent without discrimination based on race, ethnicity or political affiliation.
Land holders would have security of tenure guaranteed and the new government would ask Britain to accept responsibility to compensate former owners whose land was acquired under the reform programme as provided for in the Lancaster House Agreement. Britain has reneged on that commitment.
New constitution A parliamentary Select Committee would be formed to draft a new constitution after public hearings and consultation with all stakeholders, which would be put to a national referendum and introduced in parliament within the next 18 months.
The agreement also commits the parties to equal treatment of the citizenry, correction of historical imbalances in the development of regions and promotion of tolerance and respect among Zimbabweans to bring about national healing and cohesion.
Measures would be taken to entice Zimbabweans in the Diaspora, especially skilled personnel, to return home.
There are also clauses requiring the police, army and other state organs to operate ethically and professionally in support of the multiparty democratic system. President Mugabe was accused of using the uniformed forces and the intelligence to intimidate political opponents.
His ZANU-PF party allegedly used the traditional chiefs to canvas for votes in the areas. The agreement prohibits the traditional leaders from engaging in partisan political activities in their communities or at national level.

In reference to the Mugabe government’s restriction of distribution of humanitarian and food assistance in the run up to elections, the agreement has listed humanitarian and food assistance as a right to all Zimbabweans and provides for unfettered operation of Non-Governmental Organisations.
The opposition’s claims that election violence displaced hundreds of thousands of its supporters are mentioned in the agreement.
Article XVIII renounces promotion and use of violence and commits the parties “to ensure the safety of any displaced persons, their safety return home and their enjoyment of the full protection of the law.”
Opening air waves The agreement notes that although the law allows licensing of private broadcasters, only the Zimbabwe Broadcasting Corporation has been licensed so far and commits the parties to ensure “the opening up of the air waves and ensuring the operation of as many media houses as possible.”
This would neutralize hostile external radio stations that have been broadcasting into Zimbabwe.
the public media would be required to provide balanced coverage to activities of all political parties while the new government would ensure no medium uses abusive language against or incites hostility among political parties.
The new government President Mugabe remains the Comander-in- Chief of the armed forces.
He will formally appoint the two Vice-Presidents from ZANU-PF, Prime Minister, Two Deputy Prime Ministers, 31 Ministers and 15 Deputy Ministers constituting the new government and will chair Cabinet. Morgan Tsvangirai will be the Prime Minister, who will chair the Council of Ministers comprising all Cabinet ministers responsible for implementation of Cabinet decisions. He deputizes the President in chairing Cabinet.
Arthur Mutambara will be one of the two Deputy Prime Ministers with the second coming from Tsvangirai’s MDC formation, which will also nominate 13 ministers and six deputy ministers.
ZANU-PF will nominate 15 ministers and eight deputy ministers while Mutambara’s faction will nominate three ministers and one deputy minister.
The allocation of ministries is as yet unknown but attention is focused on who will retain the central ministries for finance, industry and trade, foreign affairs and home affairs, which would determine the new government’s international acceptance and its ability to win the confidence of development partners.
Hard work ahead Parties to the transitional inclusive government admit that signing of the agreement is the beginning of the hard work of implementing it.
Prof. Mutambara contends that the first hurdle is transforming the antagonism and divisions between them and Mugabe into amicable working environment.
There are painful decisions to be made by all parties and national healing should take place from the top to village level. “President Mugabe and Prime Minister Tsvangirai should walk the talk. We must deliver on the promise of the agreement,” he urges.
Mr Tsvangirai also realizes that it would be difficult to implement the agreement if they did not bury the hatchet. “We should turn our swords into plough shares, our enmity into friendship,” he said.
He, however, cautions that the agreement does not present instant cure to the country’s problems.
The objective is to create environment for all Zimbabweans to contribute to the solution and introduce a new way of governing committed to service and responsive to the people’s needs.
President Mugabe also believes there is more to unite than divide them and has declared that they will rest mediator Thabo Mbeki “for a good while.
We have to walk (with Tsvangirai and Mutambara) and walk the same route. In fact we have been walking the same route without knowing, without recognizing each other,” he maintains.
President Kikwete and President Mbeki have expressed optimism on behalf of the AU and SADC that the signatories to the agreement have the will and capability to implement it.
The world shares that optimism and there is an implementation mechanism agreed to providing for a Joint Monitoring and Implementation Committee.
The coming weeks and months will indicate whether the agreement is worth the ink it is written with. The ball is in the court of Mugabe, Tsvangirai, Mutambara, ZANUPF, MDC and the people of Zimbabwe.

South African ruling party mulls Mbeki's fate JOHANNESBURG, South Africa (AP) — The top decision making body of South Africa's ruling African National Congress party is meeting to decide the future of President Thabo Mbeki.
The National Executive Committee is discussing a judge's ruling that Mbeki put pressure on prosecutors to charge his rival, Jacob Zuma, with corruption. A judge threw out the charges against Zuma last week. Zuma ousted Mbeki as ANC president in December and is most likely to succeed him as national president in elections next year. But Friday's ANC meeting may decide that Mbeki must quit before then

Weekend news

Angola's ruling party, critics warn
JOHANNESBURG, SOUTH AFRICA -- Angola's first election in 16 years was seen by some analysts and observers as a halting, if not entirely free and fair, step toward democracy. But the results announced Wednesday left others worried that the African nation had tilted dangerously toward becoming a one-party state.According to official provisional results, the ruling MPLA won 81.8% of votes and the main opposition UNITA party won 10.4% in Friday's balloting, giving the ruling party well over the two-thirds parliamentary majority required to change the constitution. While the ruling party has not made clear plans for constitutional change, critics fear it could further entrench the powers of the president and the dominance of the MPLA. In the oil-rich southern African nation, which has massive Western investments, praise for the election was lukewarm. Relief that the balloting was largely peaceful and did not lead to renewed civil war was tempered by criticism that the election failed basic international standards.Angola's only previous election, held in 1992, was a botched attempt to end decades of war. UNITA rejected the results, and the country endured 10 more years of fighting.There was disappointment this week among Angola's civil society groups that the West, with huge oil interests in Angola, was not more critical of the election's shortcomings.But according to a Western diplomat who declined to be named, there was never an expectation that the vote would be free and fair. The best that could be hoped for was that the country would take a peaceful step toward democracy.Angola rivals Nigeria as Africa's biggest oil producer, and is ranked by the watchdog group Transparency International as equally corrupt. In recent years, Human Rights Watch has said that billions of dollars in oil revenue have disappeared, while Transparency International has reported the finances of the state oil company, Sonangol, to be extremely opaque.Many Western observers found the advantages of incumbency -- access to state resources and control of the media -- gave the ruling party an overwhelming advantage in the election.European Union observers said the election fell short of international standards. They were critical of the chaotic voting process, particularly in the capital, Luanda, which saw some polling stations open late and others not at all.Criticism by U.S. diplomatic observers was muted. A statement issued by the U.S. Embassy said that no cases of voter intimidation had been observed but that "state control of major media gave the ruling party an advantage."But investigative Angolan journalist Rafael Marques charged that the West's reaction to the election demonstrated a double standard, leading it to condemn the failures of democracy in Zimbabwe under President Robert Mugabe but ignore similar shortcomings in Angola because of the latter's massive oil resources. He said in a telephone interview that the election result entrenched a one-party state and legitimized a corrupt regime."With the full and unflinching support from the international community for anything this regime does, it can safely privatize the whole country without any fear of criticism. It will be a free ride in terms of awarding most of the prizes to the presidential family and government officials," he said.The MPLA has ruled Angola since independence from Portugal in 1975. President Jose Eduardo dos Santos, whose wife and daughter won seats in parliament, is widely expected to run in presidential elections planned for next year, despite a previous statement that he would not enter the race.Members of the president's family and top government officials have shares in the country's top oil, diamond, banking andtelecommunications firms. No foreign company can do business in Angola unless it teams up with an influential local company.The country's economic growth reached 24% last year largely because of high oil prices. Its oil exports in 2007 earned about $43 billion. But unemployment is more than 50%, and nearly three-quarters of the population lives on less than $2 a day, according to U.N. figures. Most homes have no running water or electricity.Despite massive foreign investment and oil production of 2 million barrels a day, the country remains firmly embedded at the bottom end of the U.N. human development index, which measures living standards and poverty, ranked 147 of 180 countries."The West has completely colluded in this [election result], not just because of oil but because Angola is a sort of a cafeteria for Western companies to do business without ethics," said Marques, in a reference to the country's high levels of corruption. "It's in the interests of the Western oil companies and many other business interests that Angola remains as it is."

Canada imposes sanctions against Zimbabwe

Rice presses African allies on terror cooperation

RABAT, Morocco (AP) — Secretary of State Condoleezza Rice on Sunday pressed U.S. allies in North Africa for greater cooperation in the face of terrorism and continued efforts at political change as she ended a visit to the region. The top U.S. diplomat said she discussed "the process of reform" in meetings with leaders in Libya, Tunisia, Algeria and Morocco. Those talks, she said at a news conference with her Moroccan counterpart, helped "look at ways in which we might help the countries of this important region to have a more unified approach to the challenges that face them.' Morocco's foreign minister, Taieb Fassi Fihri, said the meetings also addressed "relations with our brother country Algeria," and what can be done "against common threats and international terrorism." A main point of contention between Morocco and Algeria is Western Sahara, a mineral-rich region that Morocco annexed in 1975. Rice said the U.S. backed a new round of U.N. talks to solve the protracted problem through a plan for autonomy. But the pro-independence Polisario Front, supported by Algeria, wants a referendum to rule on the Western Sahara's right to self-determination.
"We believe it is extremely important" for Algeria and Morocco to resolve the question, Rice said, because it is hampering their cooperation on other issues such as security and counterterrorism. A tourism haven and a relatively liberal Muslim kingdom, Morocco is the North African nation with the closest business and diplomatic ties to the U.S., from which it recently bought a large shipment of F-16 fighter jets. The country is accused by several former U.S. detainees of having tortured suspected terrorists on behalf of the CIA. Rights groups have also often criticized other North African countries for police brutality or undue judicial process, while casting doubts about widespread electoral fraud. Rice's visit to North Africa is her first as secretary of state in this region of increasing strategic importance. The trip, with earlier stops in Libya, Tunisia and Algeria, comes as the threat posed by militants in North Africa has become "even more salient in the recent months," she said Saturday.
Her meeting with Libyan leader Moammar Gadhafi on Friday marked the end of three decades of confrontation and followed an agreement in August that settled all terrorism-related lawsuits between the countries.
Rice said that the improvement of relations with Libya now means the U.S. no longer has "a hole" in its North Africa policy, which should help improve regional cooperation. In Tunisia and Algeria, Rice praised authorities for their help in fighting terrorism and called for even tighter coordination. She also sought to boost business ties in Algeria, a large oil- and gas-producing country. Rice said she planned to follow up on these issues during talks with the foreign ministers of the Arab Maghreb Union, which groups North African states. Those discussions are expected late September in New York on the sidelines of the U.N. General Assembly. She also said the U.S. was trying to empty the military prison at Guantanamo Bay "as soon as we possibly can," while keeping in mind that "we have an obligation not to have dangerous people on the streets." Many North Africans are among the detainees held there, and Rice said she raised the issue of their transfer during all her meetings with the region's heads of state. Human rights groups worry that detainees transferred from Guantanamo back to North Africa could face mistreatment. Rice said transfers to home countries would be conducted "in a way that is rigorous, that gets the protections that we need and that the detainees need." The issue is especially sensitive in Algeria, which is battling a resurgent Islamist militancy. Most of the violence is claimed by al-Qaida in Islamic North Africa, al-Qaida's regional offshoot. Moroccan authorities also say they dismantled at least half a dozen terrorist cells this year and are holding some 1,000 suspected Islamists behind bars. Many of them trained in Algeria, and several were plotting terror attacks in Europe or against tourists in Morocco, Moroccan authorities say.

Canada imposes sanctions against Zimbabwe

TORONTO (AP) — Canada on Friday joined the U.S. and European Union in imposing sanctions on Zimbabwe's authoritarian regime headed by President Robert Mugabe. Foreign Affairs Minister David Emerson charged that since the African country's discredited presidential election in March and runoff in June, Mugabe's government has made no effort to promote democratic rule. "Despite efforts by international mediators, and despite calls by the international community to return democracy to Zimbabwe, the government has shown itself unwilling to negotiate in good faith, and uninterested in meaningful reform," Emerson said in a statement Friday. Zimbabwe's opposition leader Morgan Tsvangirai was first in a field of four in the first round of presidential voting in March, but did not win by the margin necessary to avoid a runoff against second-place finisher Mugabe. Tsvangirai withdrew from the June 27 runoff because of attacks on his supporters blamed on Mugabe's party militants and security forces.
Mugabe held the runoff, and was declared the overwhelming winner, though the exercise was widely denounced as a sham. The 84-year-old Zimbabwean leader, in power since independence from Britain in 1980, blames the opposition for the chaos and bloodshed. Canada announced initial sanctions in June following the runoff, mainly restricting travel, work and study of senior members of Zimbabwe's government within Canada. Emerson said the measures announced Friday "go further toward isolating and maintaining pressure on key members of the Zimbabwe regime." Canada is banning arms exports, freezing the assets of top Zimbabwean officials and banning Zimbabwean aircraft from flying over or landing in Canada. Canada's further pressure tactics follow those of the United States and Europe Union, both of which announced expanded sanctions against the regime in July. The U.S., along with Britain and France, spearheaded a U.N. Security Council drive in July for sanctions, but the initiative was vetoed by Russia and China.

Anglo Gold to up African output

AngloGold to up Africa output, keen on Congo

The world's third-largest gold miner, AngloGold Ashanti, aims to expand output from its key Africa mines to 5 million ounces a year in the next five to six years from around 4 million, a top official said. AngloGold's Africa operations currently contribute about 75-80 percent of the South African group's output. Even though the company wants to expand its footprint outside of Africa, the continent will still remain its key playground. The company sees growth in Africa despite challenges including a power crunch in South Africa, high electricity tariffs in Ghana, and plans by a number of countries to revise taxes in order to cash in on the commodities boom.
"This is a continent where we see future growth," Richard Duffy, the group's executive vice president for Africa, told Reuters in an interview on Tuesday.
"From our current output of about 4 million ounces from our Africa operations, we target to produce 5 million ounces in the next five to six years." Duffy said AngloGold was also keen to bed down a deal with the Democratic Republic of Congo on its Kilo exploration joint venture to the north east of the vast African country. Congo has said it wants its state mining company OKIMO to sign a new deal with AngloGold, and increase its stake in the project.
"The government is looking for a larger stake, and this is part of ongoing discussions," Duffy said. "We want to conclude this sooner rather than later, but we can't put a timeframe." The review commission has recommended OKIMO increase its stake in the joint venture to 45 percent from around 14 percent, and that AngloGold increase the annual fee it pays to OKIMO. Congo which is reviewing of all its mining contracts, said last week said it would finish the process this month. The review, which started last year, covers 61 contracts signed with mining firms including majors such as AngloGold, BHP Billiton and Freeport-McMoRan. Companies who have signed deals in the copper, tin and cobalt-rich central African country may have to cede much greater ownership to state-owned miners. On the gold price, Duffy said AngloGold was upbeat.
"We still see support for gold at current prices, fundamentals are still positive for gold and although we expect a lot of volatility, there is upside potential," Duffy said. Gold has lost more than 20 percent in value since spiking to all-time high of $1,030.80 in March, mainly driven by profit taking, oil's falls from record highs and a rebounding dollar.
AFRICA REVAMP Duffy said the expected jump in output from the group's Africa mines would come partly from revamped mines in Ghana and Tanzania, as well as the Siguiri mine in north east Guinea.
"We are quite excited by Siguiri's growth potential," Duffy said. The mine produces some 300,000 ounces a year and is projected to produce 500,000 ounces a year in five to six years. AngloGold sees more ounces from Geita in Tanzania, as well as Obuasi, the firm's struggling century-old mine in Ghana, both of which will add output after being revamped, Duffy added. AngloGold, which has 21 operations across four continents, in 10 countries including Argentina, the United States and Australia, hopes to maintain output in South Africa in the next five to seven years to around 2 million ounces a year. South African gold mines are faced with dwindling gold deposits, and the country has been knocked off its pedestal as the world's top producer by fast-rising China.

Nigerian police seize $630,000 in "Obama funds"

LAGOS, Aug 31 (Reuters) - Nigerian anti-graft police have seized some $630,000 raised at a gala dinner in support of Barack Obama's U.S. presidential campaign, authorities said on Sunday.
While the fund-raising was not illegal in Nigeria, it is illegal under U.S. law for foreign campaign groups to donate funds to political parties. Obama's campaign said it was in no way affiliated with "Africans for Obama" and would not accept funds from the group.
Ndi Okereke-Onyiuke, chairwoman of the "Africans for Obama" campaign group and head of the Nigerian Stock Exchange, organised the fundraiser in Lagos on Aug. 11. A "platinum" ticket for a table of eight cost 2.5 million naira ($21,226). The huge amount raised from the dinner sparked widespread public outrage in Africa's top oil producer, where the majority live on less than $2 a day, prompting the Economic and Financial Crimes Commission (EFCC) to launch an investigation.
"(The EFCC) has taken custody of the funds realised from the controversial Africa for Obama dinner/concert and will soon work out modalities on how to share the money among those who paid to participate in the event," the agency said in a statement. It said it had seized 74 million naira ($629,834) raised at the dinner and cautioned Okereke-Onyiuke to "steer clear" of such activities in the future.
"The outcome of investigations however, revealed that the sale of tickets at the event does not constitute any known offence for her prosecution under the Nigerian law," it said. Okereke-Onyiuke said in a full-page statement in Nigeria's The Guardian newspaper on Aug. 21 that the dinner had never been intended to raise funds or solicit donations for Obama, but to sensitise and mobilise Africans worldwide. The idea of a man with an African father attaining the world's most powerful political office has fuelled "Obama-mania" across Africa over the past year and Nigeria, the continent's most populous nation, is no exception. Buses and cars in the crowded streets of Lagos carry "Obama '08" bumper stickers, while militants in the oil-producing Niger Delta have even called on the U.S. Democratic presidential candidate to mediate in their conflict. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/ ) (Editing by Nick Tattersall and Mary Gabriel)


Africa urged to take lead in managing aid inflows

ACCRA, Sept 1 (Reuters) - Africa should "take the driver's seat" to ensure it reaps full benefit of aid flows from the rich world, including increasing funds from powerful economic players like China, a World Bank vice-president said on Monday. Speaking ahead of an international conference on aid effectiveness in Ghana, the bank's Vice-President for Africa, Obiageli Ezekwesili, said countries that receive aid must improve their capacity to use it efficiently and transparently. The Sept. 2-4 conference in Accra, which will bring together more than 100 donor and recipient states, aims to achieve more effective use of the more than $100 billion in development aid that is channeled to countries every year. More than $30 billion of this goes to Africa, the poorest continent." It is not the amount of money that matters, it is the impact ... output and outcome have become central," Ezekwesili said in an Africa-wide video news conference broadcast from the Ghanaian capital She said African governments should take responsibility for maintaining control over, and making the best use of, aid and investment flows pouring in from more developed partners, which now included fast-growing economies like China and India.
"(Recipient) countries should be in the driver's seat to set the agenda, deal with the kind of support they want," she said. The World Bank official said African states could use to their advantage China's aggressive trade and aid offensive on the continent, which has seen Beijing pump billions of dollars into projects from infrastructure to oil.
While many African leaders praise China's "no strings" approach to aid and investment, critics say it undercuts Western attempts to fight corruption and improve accountability and transparency in aid and development projects. Ezekwesili said it was up to the international community, through institutions like the World Bank, to help African states improve their negotiating capacity and safeguards to obtain the best possible benefits from aid, wherever it came from.
"Africa is the best player to determine in a lot of ways the nature of the engagement that it wants with the providers of finance," she said.
CORRUPTION RISK Three years ago in Paris, a previous international meeting of aid donors and recipients agreed on the principle that developing countries should have more control over the kind and use of the aid that they received. This week's Accra meeting aims to strengthen this principle, but British aid charity Oxfam accused some major donors, such as the United States and Japan, of "dragging their feet".
"This isn't just a food fight between bureaucrats. Until you solve the political question of who should shape development, you cannot solve the problems of poverty and inequality," Oxfam delegation head Robert Fox said. At the same time, anti-corruption campaigners like Berlin-based Transparency International said there was still a lack of sufficient local oversight and accountability in recipient countries to prevent theft or waste of aid funds.
"We see this as a major corruption risk and a serious threat to the global fight against poverty," Transparency International managing director Cobus de Swardt said.
"We need to see greater local ownership of aid programmes, a clear voice for civil society in the process and an end to purely donor-driven aid policies," he added.
While most donors and recipients agree that progress has been made since the 2005 Paris meeting to improve aid use, they say more must be done to better harmonise programmes, ensure the participation of receiving governments and guarantee that funds go to those who really need them. Experts say this improvement in aid effectivess can help make up lost ground in United Nations-backed Millennium Development Goals aiming to halve global poverty by 2015. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/) (Additional reporting and writing by Pascal Fletcher; editing by Alistair Thomson and Robert Hart)

Weekend top news

Tension as Nigeria, Iran sign nuclear deal

Following a nuclear deal the federal government signed with Iran yesterday, Nigeria may engage the United States in a diplomatic face-off.
Although the deal was signed to shore up Nigeria's domestic and industrial power supply, the US is thinking otherwise.
Washington believes that the deal is a ploy by Iran to extend its nuclear capability to Nigeria, the most populous black nation, using electricity generation as a decoy to manufacture atomic bomb.
The most powerful country has consistently maintained that Iran's nuclear policy is not designed for peaceful purposes but rather, to advance its military prowess. Iran has denied this.
The Abuja-Tehran deal, sealed at the end of a four-hour parley between Nigerian and Iranian officials in Abuja, is to increase electricity generation in the country. The Middle-East country agreed to share nuclear technology with Nigeria.
Minister of State, Foreign Affairs, Alhaji Tijjani Kaura, explained that the technology was not intended for any military use.
Kaura said that the move was directed at boosting the country's economic development - which has been hamstrung by lack of adequate electricity supply.
Nigeria currently generates only 3,300 megawatts of electricity, a far cry from the 20,000 megawatts local demand.
"There shouldn't be a misunderstanding between exploration or uses of energy to provide power and the uses of energy for weapons," Kaura said.
Iranian junior trade minister, Mohammad-Ali Zeyghami, confirmed the agreement. "We not only consider it Iran's inalienable right but also Nigerians' so that they could use this clean source of energy and nobody can limit the use of knowledge anywhere in the world," Zeyghami said.
Despite Nigeria's status as Africa's biggest petroleum producer, epileptic power supply has triggered poor infrastructure, forcing up production cost and sky-rocketing prices
President Umaru Yar' Adua has never hidden his determination to improve power supply.
In fact, he promised to announce emergency in the power sector early this month.
Details of the deal have not been announced, making it difficult to know what technology would be offered by the Iranian government. It is believed this is the fear of the Americans.
It was gathered that the US may use diplomatic channel to persuade Nigeria to reject the, according to a source, "dangerous deal" with Iran. Iran is presently under United Nations (UN) sanctions for defying Security Council's demands to halt uranium enrichment.
The country has insisted that its nuclear programme is peaceful and that it has a right to continue uranium enrichment.
Iran, also a major oil producer, is due to bring on stream its first nuclear energy station at Bushehr early in 2009.
It was gathered that frantic efforts were made yesterday by American officials to persuade Nigeria to ditch the deal with the Iranians.
It is not known if the Americans will resort to force if Nigeria insists on going ahead with the deal.
An information officer at the United States embassy in Abuja, Mohammed Sani, said he was not competent to speak on such a sensitive security issue.
Iran already has Russia on its side in the face-off with the US. A source said the fear of the Americans is that Iran may persuade Nigeria to use its influence to garner African support for the Middle-East country against America in the United Nations.
As builders of Iran's $800 million nuclear power reactor, Russia has long resisted imposing sanctions to halt Iran's programme, which the US says is a cover to make an atomic bomb, but has no corroborative evidence to substantiate it. Washington has convinced Moscow to support three previous sets of Security Council sanctions, although Russia showed much reluctance in following suit.
Iran is the last serious issue" where the George Bush administration has decisions to make in terms of policy of high national security interest to the United States. "Washington and its Western allies accuse Iran of trying to develop nuclear weapons under the cover of a civilian nuclear programme, while they have never presented any corroborative document to substantiate their allegations. Iran denies the charges and insists that its nuclear programme is for peaceful purposes only.
Tehran stresses that the country has always pursued a civilian path to provide power to the growing number of Iranian population, whose fossil fuel would eventually run dry.
Despite the rules enshrined in the Non-Proliferation Treaty (NPT) entitling every member state, including Iran, to the right of uranium enrichment, Tehran is now under three rounds of UN Security Council sanctions for turning down West's calls to give up its right of uranium enrichment.
Tehran has dismissed West's demands as "politically tainted and illogical", stressing that sanctions and pressures merely consolidate Iranians' national resolve to continue the path.
Iran has also insisted that it would continue enriching uranium because it needs to provide fuel to a 300-megawatt light-water reactor it is building in the southwestern town of Darkhoveyn as well as its first nuclear power plant in the southern port city of Bushehr.
The Islamic Republic says that it considers its nuclear case closed as it has come clean of IAEA's questions and suspicions about its past nuclear activities.
Yet, the United States has remained at loggerheads with Iran over the independent and home-grown nature of Tehran's nuclear technology, which gives the Islamic Republic the potential to turn into a world power and a role model for other third-world countries.


Morocco 'breaks terror network'

The Moroccan authorities say they have broken up a militant cell operating in several towns in the kingdom.
The group allegedly had links with al- Qaeda and police described the 15 people arrested as "dangerous".
They had electronic and chemical materials used to make explosives, reports the state press agency, MAP.
It is the fourth such network Morocco says it has broken up this year. An al-Qaeda-inspired group has said it was behind recent attacks in Algeria.
"The members of this structure, known as "Fath al-Andalous" [Conquest of Andalusia], planned to carry out attacks in Morocco and had formed operational links with foreign extremists who have pledged allegiance to the al-Qaeda organisation," MAP says.
The BBC's James Copnall in Morocco says this is almost certainly a reference to al-Qaeda in the Islamic Maghreb (QIM), an organisation largely based in neighbouring Algeria which has ties with Osama bin Laden's movement.
QIM says it has carried out attacks in several other North African countries, as well as the Algeria bombings which left 70 dead.
However, some analysts believe there is little real regional co-ordination between extremist groups.
Our correspondent says Morocco has been accused of over-dramatising the threat it faces from extremists, to benefit from support from the US and Europe.
Nevertheless, he notes that there have been attacks in Morocco: the most dramatic example occurred five years ago, when suicide bombers killed 45 people in Casablanca


Angola reaps oil wealth but many remain poor


LOBITO, Angola (Reuters) - On a recent Friday night, men in SUVs and others on mopeds line up outside one of the few gas stations in Angola's port city of Lobito to fill up for the weekend. As car horns begin to sound, it becomes clear that the gas pumps have once again run dry.
"We provide millions of barrels of oil each month to China and the United States but don't have enough to fill up our own tanks," said David Boio, a local businessmen, as he stepped down from his truck. Since Angola's 27-year civil war ended in 2002, foreign companies have rushed in to tap its oil reserves, making it one of the world's big suppliers. But Angola has failed to provide fuel for its own drivers, one of many paradoxes that overshadow elections set for September 5. Another is that the country earned an estimated record $41 billion (22 billion pounds) in oil exports last year, up from $30 billion in 2006, according to estimates by JP Morgan, but almost 70 percent of its population still lives on less than $2 a day. Analysts blame corruption for the government's inability to improve the lives of its people. Billions of dollars in oil revenue have disappeared from state coffers, according to human rights groups, although a World Bank official said in July that transparency has improved. The ruling MPLA party, a mix of former Marxists and Western-leaning technocrats, has been in power since it declared independence from Portugal in 1975. It is widely expected to win the election. The main opposition party, UNITA, which lost the civil war against the government, has promised to end poverty by using oil revenues to invest in the country's once-prosperous farm sector. The other 12 parties in the race are small and have barely enough funds to be heard. While Angolans may wonder whether the elections -- the first national vote since the end of the civil war -- will bring more accountability in government, oil companies are widely seen as having little interest in a change of government.
"The oil industry wants stability and access to oil reserves and therefore an expected victory from the MPLA party will be good news for them," said Alex Vines, the head of the Africa program at London-based think-tank Chatham House.
Local analysts agree. "The oil industry is not bound by ethical or moral constraints but by principles of profitability," said Justino Pinto de Andrade, the head of the economics department at the Catholic University of Luanda. "All they want is for things to remain as they are."
Vikea Cambulo, a professor of sociology at the Agostinho Neto University, noted that the oil companies are finally reaping the rewards of billions of dollars of investment in Angola's deepwater resources. "Why should these oil companies want a change in government?" Cambulo asked.
WORLD STAGE Producing almost 2 million barrels of oil per day, Angola now rivals Nigeria as Africa's biggest oil producer. It is the biggest supplier of oil to China and the sixth biggest to the United States. Oil accounts for about 90 percent of Angola's exports.
Angola's status as a rising star in the oil world allowed it to join the Organization of Petroleum Exporting Countries, raising its profile on the international stage. Its mostly off-shore reserves stand at about 11.4 billion proven barrels of oil, about the same reserves as Algeria, according to estimates by Edinburgh-based energy consulting firm Wood Mackenzie. Despite such wealth, about five million people live in shanty towns around Luanda, the capital city, without clean water or electricity.
The government says it is working on a 200,000 bpd refinery in Lobito to replace the country's struggling 39,000 bpd refinery and provide gasoline for the local market. But the $3.5 billion project has been stalled for years as state-owned oil firm Sonangol struggles to find foreign investors. Analysts say such concerns do not matter much for investors, who are happy to continue to deal with a business-friendly government keen to grant access to one of the world's biggest untapped oil reserves.
"Assuming no unrest is associated with the elections, the expectation is that the MPLA will again dominate parliament and the process will pass peacefully. I don't think much will change," said Graham Stock, executive director at JP Morgan Research on Emerging Markets. "The main driver for investor interest in Angola is geological rather than political," he said. While oil companies like Chevron, Angola's biggest producer, decline to comment on the election, western oil executives openly favour of the ruling party."The MPLA has to win," said an oil executive at a bar of a $300 a night hotel in Luanda. He identified himself only as Joe, because of his company's policy of not commenting on the elections.

Delighted Sudanese home after hijacking ordeal

Overjoyed passengers from a hijacked Sudanese jet returned home to delighted families on Thursday, having feared they would die at the hands of gunmen who threatened to blow up the plane. Two hijackers of the passenger plane surrendered to Libyan authorities at a remote desert airport on Wednesday after freeing all passengers on board, almost 24 hours after the drama began in Darfur.
"The hijackers surrendered without any violence and the crew are safe and sound," said a Libyan official from the World War II-era military airport in Kufra, an oasis in the southeast of the north African country. Around 150 loved ones gathered at the airport in Khartoum, ululating and whistling across the festive beat of sufi music to greet the freed passengers who landed at the ill-fated flight's original destination.
"I'm very happy, thank God, I'm very happy," said Ishaq Abdallah Yahiya, a slightly dazed 25-year-old student from South Darfur. Passengers said the hijackers, armed with two small guns, claimed there explosives on board and threatened to blow up the Boeing 737.
"He (one of the hijackers) said no one should move from their place. 'If anybody moves, we'll blow the plane, your all become nothing, we become nothing, everything becomes nothing'," said Yahiya.
The two attackers, who claimed to be from Sudan's conflict-ridden region of Darfur, hijacked the plane on Tuesday shortly after takeoff from Darfur's biggest city of Nyala. They surrendered several hours after negotiations led to the release of all 87 passengers from the Sun Air plane which was forced to land in Kufra on Tuesday evening after it ran short of fuel.
But they initially refused to release the eight-member crew, demanding that the plane be refuelled for a flight to Paris, an official said. One passenger said conditions in the searing heat became unbearable after the air conditioning broke down, as people vomited and children urinated, with a stench of rotting meat from passengers' luggage overwhelming.
"We couldn't move. We couldn't even scratch our heads, we couldn't go to the toilet, no water, nothing," said another passenger.
"I was afraid... They said they had explosives,'" he added. The hijackers, who had refused to talk directly with Libyan officials, said they belong to the Sudanese Liberation Army, whose exiled leader Abdel Wahid Mohammed Nur lives in Paris, according to airport director Khaled Saseya. Libyan authorities have still not been able to confirm the identities of the hijackers and an investigation was being launched, an official said, adding that a 20-strong Sudanese delegation was in Kufra. Sudan foreign ministry spokesman Ali al-Sadiq condemned the hijacking and called on the Libyan authorities to deport the "terrorists" to Khartoum.
"I was so hysterical. I thought it was a disaster," said Diana Adam, the 15-year-old daughter of one official from a former Darfur rebel movement that signed a 2006 peace agreement with the Khartoum government in 2006.
"Now I'm very happy," she said, smiling and being hugged by her father. Libya's civil aviation director Mohammed Shlibaq said that two Egyptian members of the UN-led Darfur peacekeeping force, two Ethiopians and a Ugandan were among the passengers, the official JANA news agency reported. Several Sudanese officials were on board, including the tribal affairs adviser at the Provisional Authority in Darfur, Yaqub al-Malik Mohamed Yaqub.
No Darfur movement has publicly claimed responsibility for the hijacking. Abdel Wahid Mohammed Nur denied the hijacking was the work of his Sudanese Liberation Army faction, one of two Darfur movements that first rose up against the Arab-dominated government in 2003.
SLA commander Ibrahim al-Hillo suggested the hijackers could be Nur sympathisers. The SLA has fractured into multiple groups over the more than five years of war in Sudan's western Darfur region. The United Nations says up to 300,000 people have died and more than 2.2 million fled their homes since war in Darfur erupted in February 2003. Sudan says 10,000 have been killed. Ethnic minority rebels took up arms against the Arab-dominated Khartoum regime and state-backed Arab militias, fighting for resources and power.