African Business Opportunities Newsletter · African Business Opportunities Newsletter Environment...

Agribusiness

November 2009

In this issue:Agribusiness.

Uganda: Lira Edible Oil Plant to Create 10,200 Jobs •Tunisia:TunisianBiologicalProductionontheIncrease•Ghana:SheaIndustryNeedsAttentionNow•

Environment & RenewableTanzania:FirmBuildsOrganicFertiliserFactory•Nigeria:ShellDesignsPackageforGasFlare-Out•Project SouthAfrica:OpportunitiesSpringFromE-Waste•

Telecoms & ICTBotswana:BTCtoInvestP500Million(US75Million)•inFiberOpticCablesLinkSustainableyear-end4.6bmobilesubscriptiontickles•ITUMozambique:TenderforThirdMobileOperatortoBe•Launched

Mining & EnergyNigeria:FirstPrivateRefineryBeginsOperationJune•2010 Liberia:LiberiaMakesProgressinExtractiveIndustry•NewStandardsNamibia:Govt,IndiaSignDiamond,UraniumDeals•

New Investment & TradeNigeria:Tolao,CanadianEnergyFirm,Invests$20mIn•Bio-dieselPlantGhana:NigerianFirmSecuresU.S.$1BillionGas•Project Egypt:AfDBApproves53MillionEurosLoantoFi-•nanceWasteWaterTreatmentProject

Interview of the MonthAfrica:GovernanceIndexIsaWorkinProgress,RotbergSaysCountry Stats: Nigeria.

ThisnewsletterispublishedbyMrFrankAneke,October-FirstConsulting,POBox83,LiverpoolNSW1871,Australia. Telephone(02)97736672,[email protected]

Thispublicationissuppliedforinformationpurposes.SomearticlesinthispublicationhavebeensuppliedbythirdpartiesandOctoberFirstConsultingdoesnottakeresponsibilityforanyinaccuraciesinthesearticles.

Uganda: Lira Edible Oil Plant to Create 10,200 Jobs by Hudson Apunyo

AShs60b($30m)edibleoilplantbeingconstructedinLirabyMount

MeruMillers,willemploy10,200peopledirectlyandindirectlywhen

it’scompletedin2012,ManagingDirectorRK.Bharagavahassaid.

ThemillwhichisexpectedtobethelargestinEastandCentralAfrica

willprocess100,000metrictonsofsunflowercakeannually.

TheprojectisapartnershipbetweenMrTarsemChandAggrawal,Mr

ArvindMittaland

MrAtulMittalwho

havepetroleum

and edible oil busi-

nesses in Tanzania

andZambia.

Theplantsituated

inLiraIndus-

trialAreacancrush

sunflower,soya

beans, ground nuts

andsesame.Inthe

firstphaseofthe

project,thesolvent

extractionplanthas

startedextracting

oiloutofsunflower

cake.ThecakeisboughtfromsmallermillsfromalloverEastAfrica.

“Weextract8-12%oilfromcake,”MrBharagavasaid.“Wesetupthis

projectinLiratotakeadvantageoftheabundantoilseedsandthe

potentialtogrowmorewhileutilisingour15yearsofexperienceand

exposureintheedibleoilindustries.”

Thefactorywillalsohaveaseedcleaningandde-hullingplant,oilex-

pellingplant,solventextraction,materialhandlingsystem,100tonne

weigh-bridgeandarefineryofalfalaval.

Itwillalsohaveaboilerforsteampowergenerationthatwilluse

husksgeneratedbythede-hullingplant.

Bharagavasaidthecompanyhastopromoteoilseedgrowinginorder

tosustaintheplantwhichhascapacitytocrush300tonnesofseeds

perday.

“Wewillbringgoodseedsandgivebacktofarmers,trainthemon

goodfarmingmethodsandsigncontractswiththemtobuytheir

produce,”

African Business OpportunitiesNewsletter

2


Bharagavasaid.Hesaidsigningcontractswithfarmersreducesprice

andmarketrisk.

“Ruralfarmerswillhaveaconstant,reliablemarketfortheiroilseeds

atgoodprices,”headded.

Source: The Monitor. Image: The Monitor

Tunisia: Biological Production on the IncreaseTunis—Despiteclimaticdifficultiesandworldmarketsfluctua-

tions,Tunisiaachievedan

agricultural and commer-

cialgrowthnamelyinthe

biologicalproduction.

In2008,thetotalamount

ofexportsofbiological

productshasreached64

milliondinarscompared

to57.48milliondinarsin

2007.

AccordingtorecentAl-

Fallahnewspaper,in2008,

3025tonsofdatesworth

12.223milliondinars,

comparedto2298tonsof

9milliondinarsin2007

and9656tonsofoliveoilworth48milliondinarsin2008compared

to6160tonsofoiloliveworth28.3milliondinarsand117tonsof

thebiologicalpricklypearpowderamountingto1.116milliondinars

against105tonsamountingto1,052milliondinarsin2007,arethe

mostimportantbiologicalproductsexported.

Driedrosemaryandoilrosemaryinadditionto77tonsofcaroband

61tonsofoilandwateroforangeblossomaswellas45kilosofOil

Alnierule,wereexportedduring2007and2008.

About80tonsofcerealsand11tonsofvegetablesand24tonsof

cannedfoodwerealsoexported.

Theproductionofbiologicalplantshasgrownto170thousandtons

in2008,comparedto136thousandtonsin2007.

Asitwasexpectedin2009,theannualproductionofbiologicalplants

duringthe2007-2009periodsreached158thousandtons,accounting

nearlyfor116%.

ItisexpectedthatTunisiawillpromotetheareasdevotedtobiologi-

calframingby20thousandhectaresannuallytoreach220thousand

hectaresbytheendofthe11thdevelopmentplanin2011.

Source: Tunisia Online News. Image: naturedirect2u

Ghana: Shea industry needs attention nowTheGhanaTradeandLivelihoodsCoalition(GTLC)recentlylaunched

areportinAccratitled,“UnleashingtheSheapotential-Abaseline

dataanalysis”,which

paintsapromisingbut

neglectedpictureofthe

Sheaindustry.

AccordingtoIbrahim

Akalbilaofthecoalition,

governmenthasover

theyearsnotpaidthe

neededattentiontothe

industrywhichhasthepotentialofimprovingthelivelihoodsofpar-

ticularlynorthernwomenwhoengageinthehighlylabourintensive

workofpickingandprocessingthewildnuts.

Meanwhile,theSheanuthaslonghelpedmanyGhanaianfamilies.

Thecholesterol-freefatinthenutisanedibleoneandhasbeenused

inmanyGhanaiandishesovercenturies.

Itisagoodprotectorofthehumanskinagainsttheharmataninpar-

ticular.Thecosmeticindustrygloballyhasalsofoundagoodingredi-

entinit.Assuch,itsdemandontheinternationalmarket,although

notasmuchascocoa,isontheincrease.

TheGTLC,thus,believestheSheaindustrycouldbecomeamajor

sourceofforeignexchangeearnerforGhanaevenasitsustains

manyfamilies.Ithasthereforeproposedthat“government’sroleand

interestinthedevelopmentoftheSheasectorshouldbeproperly

defined.Targetsfortheresearch,productionandmarketingmaythen

besetbasedonawelldefinedrole.”

Thepaperdeemeditproperthatgovernmentsetstheagendafor

thetransformationoftheSheanutindustry,fromahighlylabourin-

tensivebutlessrewardingbusinessithasbeenforwomentoamore

viableone.

LiketheGTLChasnoted,thereistheneedforacomprehensivepolicy

thatwillcapturealltheconcernsoftheindustrytowardsensuringthe

attainmentofitsfullpotential.

Inlinewiththis,PublicAgendasupportstheestablishmentofasepa-

rateboardfortheSheaindustrywiththeneededresourcessothat

thoseintheindustrywillalsoseebetterresultsliketheircounter-

partsinthecocoasector.

TheSavannahAcceleratedDevelopmentAuthorityintroducedby

governmentisalaudableinitiative.Buttheobjectivessetunderthe

authoritywillbeachievedonlywhenspecialattentionispaidtothe

traditionalmeansoflivelihoodsofthepeopleinthecatchmentarea.

Insodoing,theSheaindustryisoneofthekeyareasthatneedsuchattention.

Source Public Agenda (Accra) Imaae: loccitane.no

3

Environment and Renewable

Tanzania: Firm Builds Organic Fertiliser Factory by K. Rweyongeza

DaresSalaam—Tanzania’sagriculturesectorisexpectedtogeta

boostinthenearfutureaftertheDaresSalaambasedTigiInterna-

tionalannouncedaplantoconstructanorganicfertiliserfactory.

TheplantwillbethefirsteverorganicfertiliserfactoryinTanzania

whichwillusegroundnutresiduesandsewerageassomerawmaterials.

TigiInternationaldirectorElizabethKadumasaidinDaresSalaam

recentlythattheconstructionofafactory,tobelocatedinIringa,the

SouthEasternregion

ofTanzaniamaystart

operationsbyearly

2011.Currently,fer-

tilisersareimported

fromtheUS.

“Themarkethasre-

spondedsopositively

toourproductand

thishasinspiredustothinkofhavingourownmanufacturingfacil-

ity,”saidKadumawhopreviouslyworkedintheUSforadecade.The

constructionoftheorganicfertiliserfactoryisexpectedtoeasethe

shortagesoffarminginputsinTanzania,especiallyfertiliserswhose

priceskeepincreasing.

ThismovewillalsocomplementtheGovernmentinitiativetowards

agriculturewhichwaslaunchedbyPresidentJakayaKikweterecently.

Agricultureiscurrentlythemainsourceofexportsandemployment,

althoughitsshareisshrinkingduetolackofpoliciesrecognisingAgri-

cultureastheengineofgrowth.

Source: East African Business Week (Kampala), Image: Daily News

Nigeria: Shell Designs Package for Gas Flare-Out Projectby Mohammed Shosanya

Lagos—TheShellPetroleumDevelopmentCompanyofNigeria

Limited(SPDC)hastakendeliveryofdetailedengineeringdesignfor

aprojectthatwillputoutgasflaresinthreefieldsinWesternNiger

Delta.

TheNigerianTechnicalCompany(NETCO),theengineeringarmof

NNPC,wonthecontractinDecember2007fordesignoftheAssoci-

atedGasSolutionprojectforOtumaranode,whichcoversOtumara,

SagharaandOpuamafields.

Thecompanyinastatement,saidtheprojectinvolvesthecollec-

tionofgasfromthethreefieldstoacentralprocessingfacilityat

Otumara,whichwilltreatandsenditfordomesticusethroughthe

Escravos-LagosPipelineSystem(ELPS).Thedetaileddesignwillform

thebasisforconstructionofthecentralprocessingfacility,associated

pipelines,boosterstationsaswellasinstrumentationandcontrol.

ReceivingthedesignpackageinPortHarcourt,ProjectManager

ToyinOlagunjusaidtheawardofthecontracttoNETCOwaspartof

aplantoimprovethecapabilityofNigeriancompaniesinthisareaof

engineering.

“Wearepleasedthatthejobwasdonein-countrywithNigerianengi-

neersgainingvaluableskillsandexperience.”,hesaid.

NETCOexecutedthedetailed

designwiththesupportoftheir

technicalconsultantsIMPaC,ata

costofoverN900million.Under

thetermsofthecontract,NETCO

handledthepiping,civil,electrical,

mechanical,corrosionandHSE/

QA-QCaspectsofthejobfrom

theirofficeinLagos,whileIMPaC

workedonprocess,instrumenta-

tionandtelecommunicationinPortHarcourt.

ExecutiveDirectorofNETCO,SamuelBabatundesaid:“Thisisthefirst

timewearehandlingdesignonalargescaleforSPDC.Theskillswe

haveacquiredwillequipusbettertoservetheoilandgasindustryin

Nigeria.”

DeputyProjectManagerofIMPaC,ChristianObotcommendedSPDC

fortheconfidenceinthecollaborationbetweenNETCOandIMPaC,

“asthiswaslargelyresponsibleforthesuccessfulcompletionofthe

design.”

Thecompletionofthedetaileddesignpavesthewayforconstruction,

procurementandinstallationoffacilities.TheOtumaraprojectispart

ofSPDC’sefforttoharnessNigeria’shugegasresourcesforprofitable

use,andendflaringofgasinitsoperations.

Since2000,SPDChasinvestedsome$3billioningasgatheringproj-

ects;anadditional$3billionisneededtocompletethem.Funding

andsecuritychallengeshavedelayedimplementationoftheprojects.

Source: Daily Trust, Image: Shelltruth

South Africa: Opportunities Spring from E-Waste by Stephanie Nieuwoudt

CapeTown—TherewasanaudiblegaspwhenKirstenMcIntyretold

theaudiencethate-wasteisthethirdfastestgrowingwastestream

intheworld,withbetween40and50milliontonsofcomputers,TVs

andwashingmachinesbeing“thrownaway”eachyear.

TheeventwastheLifestyleManagementConference,whichtook

placerecentlyinCapeTown.McIntyreistheenvironmentalcompli-

4


Environment and Renew-able

Botswana: BTC to Invest P500 Million (US75 Million) in Fiber Optic Cables LinkGaborone—BotswanaTelecommunicationCorporation(BTC)will

havetopartwithUS$75million(P504million)tosecurereliable

bandwidthconnectionfromanunderseafibreopticcablethrough

theWestAfricanCableSystem(WACS).

BTCGroupCEOThapeloLippesaidrecentlythathiscompanyand

TelcomNamibiawillbothcontributeequallyassecondtierswhile

regionalgiantslikeVodacom,MTN,NeotelandZainwillcontribute

US$100million(approximatelyP672million)eachforthedevelop-

mentoftheunderseacablethatwilllinkLondonwithAfrica.

LippesaidBTCsitsontheboardoftheUS$210millionEasternAfrica

ancemanagerforEurope,MiddleEastandAfricaatthemultinational

technologycompanyHewlettPackard.

HugeamountsofthesedefunctappliancesfindtheirwaytoAfrican

countries.OftenWesterncorporationsthatwanttogetridoftheir

uselesscomputerswillshipthemofftoAfrica.Thishappensunder

thepretencethattheequipmentissuitableforre-use.Butinmost

casestheseproductsenduponlandfillsites,addingtoAfrica’swaste

problem.

TheproblemissohugethattheUnitedNationsin2007launcheda

globalcampaignaimedatsettingstandardsforrecyclinganddispos-

ingofe-waste.

SouthAfricaisthankfullynotoneofthetargetdumpingsitesof

theworld.However,therearemanyindividualswhoarestripping

computersandothere-wasteproductswithoutcarefortheirown

long-termhealthorcarefortheenvironment.

“Thesmeltingtakesplaceintheopenair,whichisnotgoodforthe

environmentorpeopleastoxicgasesarereleased,”explainedMcIn-

tyre.Smeltingreferstoaprocesswheretherelevantpartsareheated

overanopenfiretoextractmetals.

Shepointedoutthatproperlyplannedwastemanagementprojects

canleadtothegreaterutilisationofmaterialsandthecreationof

jobsthatpaywellaboveonedollaraday.

SouthAfricaproduces100,000tonsofe-wasteannually.Buta

numberoforganisationscountrywideareworkingtotryandsalvage

whatevertheycan.Computersarerecyclable,afterall.

“Therearemanyadvantagestosavingcomputersfromendingup

inlandfillsites,”SusanneDittke,founderofEnvirosense,acompany

workingtofindintegratedresourceandwastemanagementsolu-

tions,tellsIPS.

“Therearesocial,economicandenvironmentaladvantages.Ifproj-

ectsarewellrun,theygenerateincomeforacertaingroupofpeople

whichhasanumberofsocialbenefits.

“Environmentalbenefitsincludemanagingthereleaseofpoison-

ousgases.Whenacomputerlandsinalandfill,itleachescadmium,

mercury,leadandothermetalsintotheground,whichinevitablyend

upinwatersources.”

Informalscrapcollectorsanddealersbreakcomputersinorderto

easilyretrievethecopperinside.Thisisextremelydangerousas

hazardousgasesarereleased.Thebrokenpartsareleftbehind,which

resultinlitter.

DittkeisspearheadingaWesternCapeprojectwhereanumberof

peoplewithdifferentskillscreatedifferente-wasteopportunities.

OneofthemostsuccessfuloftheseprojectsisrunbyJustPCs,acom-

panyfoundedbyJustinvanderWalt.

Source: IPS, Image: CFSK

5

Environment & Renewable

SubmarineCableSystem(EASSy)tofurtherincreaseBotswana’s

bandwidthcapacity.

EASSyis90percentAfrican-owned,althoughthatownershipis

underwrittenbyasubstantialinvestmentbyDevelopmentFinancial

Institutions(DFIs),amongthemtheWorldBank/IFC,EIB,AfDB,AFD

andDfW.Thereare26telecommunicationoperatorsintotalinvested

inEASSy.

Throughaprivateoperator,anotherunderseacableprovider,SEA-

COM,recentlylaunchedinBotswana.SEACOMisaprivatelyfunded

venturewithKenya’sIndustrialPromotionServiceshavinga26.25

percentstake,VenfinLimited25percent,SouthAfrica’sShanduka

Group12.5percentandConvergencePartnerswith12.5percent.

WhentheseacablereachesBotswana,Internetspeedconnectivity

willincreaseconsiderablywhiletariffswilldropsignificantly.

Lippeacknowledgedthecomplaintoflocalbusinessesaboutthecost

ofbandwidth.”Iagreeweareexpensive,”hesaid,“butonehasto

understandthatthecostofgettingInternettoBotswanaisveryex-

pensivebecausewearelandlockedandourtele-densityisverylow.”

HehoweversaidBTCrecentlyfoundbetterratesfromaopticfibre

providerandhasalreadyslashedpricesby40percentandthatlocal

ISP’swillsoonextendthelowerpricestoconsumers.

DuringthelaunchofSEACOM,theMinisterofCommunications,

ScienceandTechnology,PelonomiVenson-Moitoi,saidthegovern-

mentplanstoexcludeBTC’scountrywidespreadbackhaulfromthe

privatisationprocess.Shesaidoneoptionistocreateanentitythat

willberesponsibleforthebackhaultoservicealltheoperatorsinthe

telecommunicationssector,includingBTCafterithasbeenprivatised.

Source:Mmegi. Image: isrl illinois

Telecom and ICT

Sustainable year-end 4.6b mobile subscription tickles ITUByAdeyemiAdepetun

THEInternationalTelecommunicationsUnion(ITU)hasprojecteda

4.6billionmobilesubscriptiondrivenbythemobilesectorbyendof

2009.

Initslateststatistics,publishedinTheWorldin2009:ICTfactsand

figures,revealedrapidInformationandCommunicationsTechnology

(ICT)growthinmanyworldregionsineverythingfrommobilecellular

subscriptionstofixedandmobilebroadband,andfromTVtocom-

puterpenetration-withmobiletechnologyactingasakeydriver.

Meanwhile,theExecutiveViceChairman(EVC)oftheNigerianTele-

communicationsCommunications(NCC),ErnestNdukwe,atthejust

concludedInternationalTelecommunicationsUnion(ITU)World2009

forumandexhibitioninGeneva,Switzerland,revealedthattelecom-

municationsinvestmentsinNigerianowstoodat$18billion(N2.7

trillion)withinthelasteightyears.

Ndukweaddedthatthecurrentinvestmentfigureismadeupof

about$12billionfromforeigndirectinvestmentwhilethebalanceis

frominvestmentsmadefromandwithinthecountrysince2001.

Hesaidthatthecountryiskeenonattractingmoreinvestmentssoas

toexpandtheneededservicesintheareasofinternetandbroad-

bandservicesacrossthecountry,havingmadearemarkableinroads

intovoicetelephonyservices,stressingthatgovernment’sinvitation

totheprivatesectorforparticipationintheindustryhaspaidoffand

ledtothecurrentsuccessindicesinthesector.

“Thistellsmethatthedecisionbygovernmenttoliberalisewasa

verygoodone,indicatingthatthisiswhythecurrent68millionac-

tivesubscriberlinesrecordedintheindustryoverjusteightyearsin

Nigeriahavebeenvariouslydescribedasarevolution.

“ThedecisionbyNigeriatoimplementatechnologically-neutral

regulationhasresultedininvestmentsinboththeGlobalSystemfor

MobileCommunications(GSM)-andCDMA-basedservicesandmade

diverseservicesavailableinNigeriawithinvestorsattractingservices

fromdifferentpoints,therebyprovidingchoicesforNigerianconsum-

ers.

“Nigeriaistodaydominatedbywirelessservicesdelivery,notjustin

themobilesub-sectorbutalsointhefixedwirelessservices”,stressed

theEVCNCC

Meanwhile,theITUreportstatedthatthebrandnewcomprehen-

sivedata,forecastsandanalysisontheglobalICTmarketshowthat

mobilegrowthiscontinuingunabated,withglobalmobilesubscrip-

tionsexpectedtoreach4.6billionbytheendoftheyear,andmobile

broadbandsubscriptionstotop600millionin2009,havingovertaken

fixedbroadbandsubscribersin2008.

6


Telecom and ICT

Itstatedthatmobiletechnologiesaremakingmajorinroadstoward

extendingICTsindevelopingcountries,withanumberofnations

launchingandcommerciallyofferingIMT2000/3Gnetworksand

services.

ButtheITU’sstatisticsalsohighlightimportantregionaldiscrepancies,

withmobilebroadbandpenetrationratesstilllowinmanyAfrican

countriesandotherdevelopingnations.

Morethanaquarteroftheworld’spopulationisonlineandusingthe

Internet,asof2009.Ever-increasingnumbersareoptingforhigh-

speedInternetaccess,withfixedbroadbandsubscribernumbers

morethantriplingfrom150millionin2004toanestimated500mil-

lionbytheendof2009.

Rapidhigh-speedInternetgrowthinthedevelopedworldcontrasts

starklywiththestateofplayinthedevelopingworld.InAfrica,for

example,thereisonlyonefixedbroadbandsubscriberforevery

1,000inhabitants,comparedwithEuropewheretherearesome200

subscribersper1,000people.TherelativepriceforICTservices(es-

peciallybroadband)ishighestinAfrica,theregionwiththelowestin-

comelevels.ThereportfindsthatChinahastheworld’slargestfixed

broadbandmarket,overtakingitsclosestrival,theUnitedStates,at

theendof2008.

ITUestimatesshowthatthreequartersofhouseholdsnowowna

televisionsetandoveraquarterofpeopleglobally-some1.9billion

-nowhaveaccesstoacomputerathome.Thisdemonstratesthe

hugemarketpotentialindevelopingcountries,whereTVpenetration

isalreadyhigh,forconvergeddevices,asthemobile,televisionand

Internetworldscollide.Dr.HamadounToure,ITUSecretary-General

says:“ICTsarevitalwithindevelopingcountriestoensurethat

ordinarypeoplecanfullyparticipateintheknowledgeeconomyof

the21stcentury.Wehaveseenapositiveimpactonservicessuchas

healthandeducationinmarketswhereICTgrowthhasbeenstrong.”

WithintheUnitedNationssystem,ITUisthemainsourceofinterna-

tionallycomparabledataandstatisticsonICT.TheMarketInforma-

tionandStatisticsDivisionoftheTelecommunicationDevelopment

Bureau(BDT)collects,harmonisesanddisseminatesmorethan100

telecommunicationandICTindicatorsfromover200economies

worldwide.DataareaccessibleonlinethroughtheICTEyeportal,on

CDandinprintpublications.TheMarketInformationandStatistics

Divisionregularlypublishesanalyticalreportsillustratingthelatest

trendsinthesector.Italsomonitorsthedevelopmentofthedigital

divideandhasdevelopedwidelyusedbenchmarkingtools,suchas

theICTDevelopmentIndex(IDI).

SamiAlBasheer,Director,TelecommunicationDevelopmentBureau,

said,“weareencouragedtoseesomuchgrowthacrossdeveloped

anddevelopingregions,butthereisstillalargedigitaldivide,andan

impendingbroadbanddivide,whichneedstobeaddressedurgently.

HeadsofStateandindustryleaderswillcollaborateatITUTelecom

World2009toidentifytherightpoliciesandregulationstosup-

portandencouragefutureICTgrowthworldwide.ITU,throughits

developmentsector,isworkingwithallstakeholderstopromotethe

developmentofICTservicesforallsegmentsofsocietyinallregions

oftheworld.”

Source:guardian news.com (Lagos). Image Engineering News

Mozambique: Tender for Third Mobile Operator to Be LaunchedTheMozambiquegovernmentwilllaunchaninternationaltenderfor

athirdmobilephonelicenseinDecember.

TheprocesswasputonholdinApriltoaddresscomplaintsbyexisting

mobilewirelessoperatorsMcelandSouthAfrica’sVodacom.Trans-

portandcommunicationsministerPauloZuculasaidtheissueshave

beenresolvedandthatabiddingdocumentisnowbeingprepared.

Africa’sbiggestoperatorMTN,Kuwait’sZainandPortugal’sTelecom

haveexpressedinteresttoenterthemarket.

AccordingtoGlobalCommsdatabase,therewere4.88millionmobile

subscribersinthecountrybytheendofJune2009,upfrom3.87mil-

lionin2008.Wirelesspenetrationgrewfrom17.8%to22.4%.

ZuculasaidmanyforeigncompaniesareattractedtoMozambique

duetoitseconomicstability,availabilityofcommoditiesandsteady

grossdomesticproduct(GDP)growthrates.

Source: TradeInvest Africa (Cape Town) Image: Wired

7

Mining & Energy

Nigeria: First Private Refinery Begins Operation June 2010by Ejiofor Alike

Lagos—AnthonioOilPlc’sRefinery,a27,000barrelsperdaycapacity

facilitytoberelocatedfromCyprustoIwopinVillageinOgunWater-

sideLocalGovernmentAreaofOgunState,willbeginfulloperations

byJune2010.

Withthisdevelopment,therefinerywillbecomethefirstintheSouth

Westernpartofthecountrytobeginoperations.

Aspartofthestrategytoensurequickreturnsoninvestment,

andreducetheincubationperiodoftheprojectandthecountry’s

over-dependenceonimportedpetroleumproducts’,AnthonioOil

PlcacquiredausedrefineryinCyprus,insteadofembarkingonthe

constructionofanewonethattakesabouteightyearstobuildfrom

thescratch.

Thecompanyisembarkingontheprojectwiththeassistanceofits

technicalpartner,LohrmannInternationalGMBHofGer-many.

THISDAYgatheredthatLohrmannhadcarriedoutapre-evaluation

studyontherelocationoftheoilrefinerytoNigeria,forAnthonioOil

Plc

AccordingtotheGermanfirm,theprojectinvolvesthe“debottle-

neckingoftheexistingunitsandanupgradewithaVacuumDistilla-

tionUnit,IsomerisationUnitandaFluidCatalyticCrackerinalater

projectstage.”

Thecapacityofthedismantledrefinery,whichwasshutdownin2005

owingtolackofcrudeoilsupply,isintherangeof27,000barrelsper

day.

GroupManagingDirectorofAnthonioOilPlc,Mr.AnthonyEffedua

toldTHISDAYatthecompany’sinvestors’foruminLagosthatthe

usedrefineryhadbeendismantledinCyprusforshipmentandrelo-

cationtoNigeria.

HesaidofficialsoftheDepart-mentofPetroleumResources(DPR)

willgotoCyprusonOctober5,2009foraninspectionofthedis-

mantledrefinerybeforeshipmentintothecountry.

Thepurposeoftheinspectionhesaidistodeterminetheintegrityof

therefineryforitsrelocationtoNigeria.

THISDAYgatheredthattheDPRplannedtogivethecompany“Ap-

provaltoConstruct”(ATC),whichisthenextstageofthelicensing

processassoontheinspectionteamcomesbackfromCyprus.

PartofaletterwithreferencenumberPI/DS/PPI/NPA

F/6239/S.140/126,datedSeptember16,2009andaddressedtothe

companybyoneMr.O.AdelekeonbehalfoftheDirectorofDPR

reads:“Areviewofyourstatutoryrefineryprojectdocumentshas

beenundertakensatisfactorilyinlinewithoursubsistingguidelines

forestablishmentofrefineryinNigeria.

Weconfirmedyoursitesuitabilityandpaymentofallstatutoryfees.

Wealsocommendtheongoingactivitiesatthesite.

“Processesofissuanceofyour“ApprovaltoConstruct”thisrefinery

willbeconcludedassoonasthestatutoryinspectiontodetermineits

integrityforrelocationisestablished.”

TheFederalGovernmenthadin2001licensed18privaterefineriesin

thecountrybutlaterrevokedthelicencesfornon-performance,after

fiveyears.

However,licensesoffouroftherefinerieswerelaterrestoredand

workisnowinprogressintheprojects.

THISDAYhadreportedthatinanefforttoaddresstheperennialfuel

scarcityandbringanendtotheimportationofpetroleumproductsin

thecountry,theFederalGovernmenthadremovedthestatutoryde-

positof$1millionforevery10,000barrelsrefinerycapacityprovided

forinthelatestGuidelinesfortheEstablishmentofHydrocarbon

ProcessingPlantinNigeria.

Theexercise,accordingtotheDepartmentofPetroleumResources

(DPR)-theoilandgasregulatorybody-istoencourageprivatesec-

tor.

Nigeriaimportsalmostallitspetroleumproductsbecausethena-

tion’srefineries,withcombinedcapacityof445,000barrelsperday

havenotbeenfunctioningwell.

In2008alone,asmuchas$4billionwasspentonfuelimportation

becausealltherefineriesweredown.

Source: This Day, Image: pnchng

8


New Investment and Trade

Mining and Energy

Liberia: Liberia Makes Progress in Extractive Industry New Standards Liberiahastaken

anothergiantstepin

complyingwithnew

standardsofman-

agingitsextractive

industriesunderthe

ExtractiveIndustries

TransparencyInitiative

(EITI).TheHeadofthe

Initiativecongratu-

latedtheGovernment,

theprivatesectorin

theextractiveindus-

triesandactivistsof

civilsocietywhohavetogetheraccomplishedwhathedescribedas

anincrediblejobtobecomeoneofthebestcountriesimplementing

thenewstandardsoftheEITI.

AddressingthemediafollowingameetingwithLiberianPresidentEl-

lenJohnsonSirleaf,Dr.PeterEigenobservedthattoooftenproblems

associatedwiththeuseofnaturalresourcesarebasedonthegreed

ofpeople,wholiketogetholdofthesenaturalresources.

Dr.EigenstressedtheimportanceofLiberiatohaveinplacegood,

transparentandhonestgovernancestructurestoensurethere-

sourcesofthecountrybenefitthepeople.

EITIChairmanPeterEigenandPresidentEllenJohnsonSirleafmetat

theForeignMinistryinMonrovia.

ThevisitingEITIchairmanpraisedLiberiafortheprogresswhichhe

attributedtothecommitmentofpoliticalleadershipinLiberiaand

theprofessionalismofthestakeholders’managementgroup,whose

tirelesseffortshaveacceleratedtheprogressLiberiahasmadein

transparent,predictable,andstablegovernance.Itisthisrapidprog-

ress,Dr.Eigenemphasized,thatLiberiaisaleadernotonlyinAfrica

butgloballyintheextractiveindustrytransparencysector.

TheEITIexecutivehas,disclosedthatLiberiahasbeenrecommended

totheBoardoftheInitiativetoacceptthevalidationprocessthat

hastakenplaceinthecountry.Ifapproved,Liberiawillbecomethe

firstAfricancountrytobecompliantundertheextractiveindustries

initiative.

Azerbaijan,whichhoststhenextEITIBoardmeetingintwoweeks,

istheonlycountryenjoyingtheEITIcompliantstatus.Dr.Eigen

describedastremendoustheachievementLiberiahasmadeand

congratulatedallwhohavecontributedtotheprocess.

LiberianPresidentEllenJohnsonSirleafalsocommendedtheLiberia

ExtractiveIndustriesTransparencyInitiative(LEITI)team,headed

byCllr.NegbaleeWarner,fortheprogress.ThePresidentexpressed

satisfactionthatLiberiahasperformedverywellintheprocess.

ThePresidentspokeofthecommitmentanddedicationofthe

country’sEITIteamintheimplementationofitsfunctions,making

surethatallconcessionagreements,allmajorcontractsarevetted,

“goingbeyondtheminingsectorwhereEITIstarted,buttoinclude

ourforestry.”

Shecontinued,“Iftheyhadnotbeensodiligentinmakingsurethey

getallthoseagreementsandgetthempublishedandgoafterthe

companies,forthecompaniestoreportwhatmoniestheyhavepaid,

totheGovernmentortoanybodyelse;theyhavedonesuchagood

job,thatthey’vewonLiberiaaveryhighstanding.”

ThePresidentwelcomedthevisittoLiberiaofDr.Eigenandhisdel-

egationwhich,shenoted,servesasamotivatingfactortoreviewthe

progressthatwouldhelpLiberiacontinueonthepathofprogress.

Liberia,thePresidentsaid,hasexcelledundertheEITIprogram.She

expressedhopethatasimilarprogramwithmorededicatedpeople

wouldbeabletoworkonthecountry’santi-corruptionstrategy.Gov-

ernment,thePresidentsaid,remainscommittedtodoingthat.

Dr.EigenandhisEITIteamarrivedinthecountryonOctober4to

reviewtheprogressLiberiahasmadesincethecountryjoinedthe

Initiativetwoyearsago.Liberiaisoneof22Africancountriesserving

asmembersoftheExtractiveIndustriesTransparencyInitiative(EITI),

whosemembershipconsistsof30countriesworldwide.

Source: The Analyst Image: students.umf

Namibia: Govt, India Sign Diamond, Uranium Deals by Jo-MarÉ Duddy

AGREEMENTSpavingthewayforNamibiatoshareinIndia’sUS$30

billionnuclearindustry,aswellastheirworld-classdiamondpolishing

sector,weresignedbetweenPresidentHifikepunyePohambaand

IndianPrimeMinisterManmohanSinghinNewDelhirecently.

Anagreementonco-operationinthefieldofpeacefulusesofnuclear

energyandamemorandumofunderstandingongeologyandmineral

resourcesarethefirststepstowardssellinguraniumanddiamonds

toIndia.

ItalsoensuresatraininginstitutefordiamondprocessinginWind-

hoek,MinesandEnergyMinisterErkkiNghimtinatoldTheNamibian

inaninterview.

Nghimtina,partofthe43-memberpresidentialdelegation,said

NamibiacanexporturaniumoxidetoIndianowthatthecountryisno

longersubjecttotheembargooninternationalnucleartrade.

However,thatdoesnotmeanthatIndiawillreceivespecialfavours

andbeallowedtojointhehuntforuraniumlocally,hesaid.“The

moratoriumongrantingexclusiveprospectinglicences(EPLs)for

Liberia President, Mrs. Ellen Johnson-Sirleaf

9


uraniumissomethingcompletelydifferent,”Nghimtinasaid.

ReportsintheIndianmediasuggestdifferently,though.

AccordingtoTheEconomicTimes,“sourcessaidthatdiscussionson

uraniumminingandsupplieshavebeenongoingwithNamibiafor

sometimenow”,andtheMoU“willgiveIndiatheopportunityto

tapNamibia’srichminingsector”.“Thisincludesthechancetoget

exclusiveprospectingrightsandthepossibilityofjointventuresinthe

sector,”TheEconomicTimesreportedyesterday.

India’snuclearmarketisexpectedtogrowtoUS$150billioninthe

next30years.MediareportsalsosuggestthattheMoUhassecured

anadditionalmarketforNamibia’sroughdiamonds,astatement

which,accordingtoNghimtina,“isnot100percenttrue”.

“IndiaandNamibiaareonthevergeofsigningaMoUthatwillgive

IndiaaccesstoNamibia’sdiamondriches.Suchanagreementwill

giveIndiadirectaccesstodiamonds,decreasingitsdependencyon

majorproducers,”areportonthewebsiteoftheInternationalDia-

mondExchange(Idex)saidyesterdaymorning.

NamibiarecentlytooktheunusualsteptobypasstheDiamondTrad-

ingCompany(DTC)andsellasignificantchunkofNamdeb’sstockpile

toDiamondsIndiaLimited(DIL)torelievethelocaldiamondgiant’s

cashflowproblem.

TheEconomicTimesreferredtothedeal,hailingNghimtinaforhis

“boldinitiative”,andsaidtheconsortiumof58leadingdiamondand

jewellerymanufacturers“isincontinuousneedofroughdiamonds

fortheirprocessingfactories,evenduringrecession”.

“Currently,DIL,tofulfilitscontinuousdemandofdiamonds,iswilling

toenterintocontractstopurchaseroughdiamondsoncontinuous

basisandsometimeinlargequantities,”TheEconomicTimessaid,

addingthatDILwillsetupthetraininginstitutefordiamondprocess-

inginNamibia.

ThecollapseofNamdeb’straditionalmarketsattheendoflastyear

duetotheglobalfinancialstormhasbroughtthecompanytoits

knees.Thelatestinformationshowedthatdiamondproductionfrom

JanuarytoJune

fellbymore

than60per

centcompared

tothefirstsix

monthsoflast

year.

Thespill-over

effectofits

financialwoes

isoneofthe

main reasons

thatNamibia

washitbyrecession,analystssaid.AlthoughNamdeb’sdiamonds

aresoldtotheDTC,Governmenthasleftabackdooropeninthe

DiamondActof1999.

Section58givestheMinesandEnergyMinistrytherighttoforce

producerslikeNamdebtochanneltheirroughdiamondstolocalpro-

cessingplants,whileSection59allowsGovernmenttoselluptoten

percentofaproducer’sroughdiamonddirectlytothemarket.

“It’snotallaboutNamdeb,”NghimtinatoldTheNamibian.There

areotherdiamondminesinthecountry,likeSamicor,thatcandeal

directlywithIndia.Besidesdiamondsanduranium,defenceissues

arehighonthepresidentialagendatoo.

PohambaandManmohanalsosignedamemorandumofunderstand-

ingondefencecooperationyesterday.

TheEconomicTimescontactedNamibia’sHighCommissionerto

India,MartinKapewasha,formoredetailontheagreement.Hewas

onlywillingtoconfirmthat“defencedeals”wouldbediscussed.

IndiaandNamibiafurthermoresignedabilateralagreementregard-

ingcommunication,aswellasanMoUrelatedtoexemptionfromvisa

requirementsfordiplomaticandofficialpassportholders.

Source:The Namibian. Image: bidorbuy

Nigeria: Tolao, Canadian Energy Firm, Invests $20m In Bio-diesel Plant• Acquires3,000AcresInCrossRiverForFeedstock

• Targets80mLitresIn2010

By Mbamalu Marcel

ASthecontroversyoverplansbytheFederalGovernmenttoderegulate

thedownstreamsectoroftheoilandgasindustrysubsists,theprivate

sectorisgearinguptoprovideanalternativetotheuseofconventional

diesel.Inlinewiththecountry’sevolvingpoliciesonrenewableenergy

andtheKyotoProtocol-aninternationalagreementlinkedtotheUnited

NationsFrameworkConventiononClimateChange-allissetforthe

smoothtake-offofthefirstbio-dieselplantinNigeria.Thepioneerplant,

10



whichisexpectedtocommenceproductionbythelastquarterof

2010,isbilledtotakeofwithaninitialcapacityof37.5millionand

willtargetanoutputof80millionlitreswithinthefirstyearofopera-

tion.

TolaoEnergy,aCanada-basedcompanyfocusingontheproductionof

renewableandenvironment-friendlybio-diesel,withfundingsupport

fromGoryeoEnterprises,duringtheweek,disclosedthatabout3,000

acresoflandhadbeenacquiredinCrossRiverStateforthepurpose

ofgrowingthefeedstockrequiredfortheproductionofbio-dieselin

Nigeria.Itsaidtherawmaterialwouldbedueforharvestingwithin

18to20months.

BriefingjournalistsrecentlyinLagos,ChiefExecutiveOfficerofTolao

Energy(Nigeria),Mr.AdewaleJonathan,saidthecompanywaspio-

neeringrenewablefuelandcleanerenergyrevolutioninthecountry

basedonthepromptingsofthefederalgovernment,asevidencedby

thenewregulatoryguidelinesfortheprocess;aswellastheuniversal

supportofferedbytheKyotoProtocol.

Palmoildistillate,henoted,wouldbeusedasthefeedstockinthe

firstyear,pendingthematurationoftheplant-Jatropha-,which,

hesaid,isthefirm’sdesignatedrawmaterialforthebio-diesel.He

saidtheproblemsofbio-fuelsworldwidehadbeenthatofhighcost

ofproductionarisingfromscarcityofthefeedstockthatwereoften

tradedonthefloorofthecommoditymarket;hence,thecompetition

withfooddemands.

Sheddinglightonthechoiceofthefeedstock,theTolaoboss,how-

ever,explainedthatJatropha,thoughrichinoil,isnotedibleandcan

growinanyclimaticorsoilcondition.

Adewalealsohintedthatthecosteffectivemeasuresemployedby

thefirmwouldreduceproductioncoststhatwouldleadtoprice

competitivenessinthesector.

Hesaidthefundpartners,Goryeo,wouldbecomingupwith,at

least,40percentofthefundingrequiredfordifferentphasesofthe

project.

Meanwhile,asafollow-uptotheMemorandumofUnderstanding

(MOU)alreadysignedbybothparties,thefirm,attheweekend,

signedafinalagreementwiththeCrossRiverStategovernment.

“WewanttobevisiblehereinNigeria;anditisaboutresults;about

gettingitdone;andaboutbringingchangetothecountry,”said

Adewale.

Accordingtohim,thebio-dieselprojectwouldaffordthecountryan

opportunitytonotonlydiversifyitsenergysources,butalsofriendly

totheenvironment.“Ifwecanchangeourattitudetoconventional

diesel,lifeexpectancywouldimprove,“saidAdewale.

Adewaleaffirmedthatboththeagriculturalandproductionmodels

oftheprojectwouldguaranteemassiveemploymentforNigerians,as

wellasinstituteenduringmechanismforskillacquisitionandtransfer.

PresidentandChiefExecutiveOfficerofGoryeo,Mr.CharlesKwon,

saidthereisahugepotentialforbio-dieselinNigeria,asthecountry

consumesoverfivebillionbarrelsofdieselannually.Accordingto

him,thecountryneedstofocusonotherself-sufficientways,asabso-

lutedependenceoncrudehadaggravatedtheimpactofthecurrent

economicmeltdownonmanycountries,especiallyNigeria.

ACanada-basedaccountancyandfinancialservicesfirm,Wollydee

Associates,ispartneringwithTolaoEnergyintheareaoffinancial

analysisandconsultancy.SeniorConsultant,AlaniOluwoleIdowu,

toldTheGuardianthatthesecondphaseoftherollout,billedtobe

completedwithinthenextfiveyears,wouldseetheTolao,running

bio-dieselplantsinthesixgeo-politicalzonesofthecountry.

Source: Guardian Newspapers, Nigeria, Image: envirofuel.com.au

Ghana: Nigerian Firm Secures U.S.$1 Billion Gas ProjectDanielNonor

TheGhanaNationalPetroleumCorporation(GNPC)hasawarded

Oando,Nigeria’sleadingintegratedenergysolutionsprovider,a$1bn

projecttoStrategicallyPartnertheCorporationtodevelopassets

andinfrastructuretoharnessthegasthatwillbeproducedfromthe

offshoreJubileeoilfield.

ThejubileefieldisratedasWestAfrica’scurrentlargestoffshore

deepwaterdiscoveryinoveradecade,withprovenreservesinexcess

of300millionbarrelsofrecoverableoilandapotentialfor1.8billion

barrels.

TheChroniclegatheredthatGNPChadshortlistedcompaniesfollow-

ingahighlycompetitivebidprocess,involvingoverfiftyreputable

local,regionalandinternationalcorporations.Fromtheinitialfifty,

fivecompaniesmadethefinalselectionfromwhichOando(Lead

Developer)andSaipem(agloballyrenownedOil&Gasengineering,

procurementandconstructionfirm)andModec-Itochu(aJapanese

oil&gasconsortium)werechosentoformajointconsortiumwith

GNPC.

11


AccordingtoastatementissuedbyOandorecently,thescopeof

theprojectincludesthedevelopmentofoffshoreandonshorehigh

pressuregastransmissionpipelines,ProcessingFacility,Liquefied

PetroleumGasandCondensatestoragetanks,aswellasotherancil-

larystructures.TheUS$1billionultra-modernfacilityisplannedto

commenceoperationsinthenearfuture.

TheGovernmentofGhanahasexpresseditscommitmenttodevelop

aworld-classinfrastructurethatwillprocessnaturalgasasfuelfor

existingpowerplantsatEffasuandTakoradibothintheWestern

Regionofthecountry.Thedevelopmentisalsoplannedtoenablethe

saleofnaturalgasandderivativestobothdomesticandinternational

markets.

InaproactivesteptoeliminategasflaringfromtheJubileeField,the

completiondateoftheprojecthasbeenscheduledtocoincidewith

theplannedFirstOilforJubilee.Thiswillformamodelforthedevel-

opmentoffutureoilandgasfieldsinthecountry.

Mr.BolajiOsunsanya,ChiefExecutiveOfficer,OandoGas&Power

notedthatthedealwas“atestamentofOando’shighcompetence

intheexecutionofgasprojectsandoperations.With100kmofgas

pipelineinfrastructurealreadybuiltinLagos,another128kmunder

constructionintheSouthEastofNigeriaandaplanned100kmyearly

expansion,thisnewpartnershipwithGNPCtodevelopGhana’s

firstgasinfrastructure,broadensourleadershipfrontiersinthegas

transportationanddistributionbusinesswithintheWestAfricansub-

region.”

Mr.WaleTinubu,ChiefExecutiveOfficerandManagingDirectorof

OandoPlcalsosaid,“Weareveryproudtobepartofthishistoric

milestoneinGhana’soilandgasexploration.TheJubileeoilfieldisset

tofurthertransformtheGhanaianeconomyandpositionthecountry

asakeyplayerintheGulfofGuinea.

ThechoiceofOandoisanaffirmationofourtrackrecordatproject

deliveryandcreatesanopportunityforustoextendthesuccess

recordedinbuildingNigeria’sgasdistributionpipelinesystemto

otherpartsofWestAfrica.Thisisafilliptowardourdrivetobecome

theforemostenergycompanyinsub-SaharanAfrica,leveragingour

traditionforexecutionexcellence,capacitytoundertaketechnical-

intensiveventuresandaccesstolong-termfinancing.

Source: The Chronicle, Image: oil&gasjobsnigeria

Egypt: AfDB Approves 53 Million Euros Loan to Finance Waste Water Treatment Project

PRESSRELEASE:

TheBoardofDirec-

torsoftheAfrican

DevelopmentBank

(AfDB)Groupre-

centlyapproveda

loanofEuro53.33

million,equivalent

to48.56million

UnitsofAccount(UA)tofinancetheGabalElAsfarWaste-waterTreat-

mentPlant(GAWWTP)ProjectinCairo,Egypt.

Theprojectobjectiveisexpectedtoimprovethequalityofwaste-

waterdischargedintothedrainagesysteminCairoEast,therebycon-

tributingtoimprovedsanitationandacleanenvironmentfornearly8

millionpeoplelivinginthearea.

Thisphasewillprovideanadditionalwaste-watertreatmentcapacity

of500,000cubicmetersperday.Thewaste-waterwillundergofull

treatment,includingpreliminary,primaryandsecondarytreatment.

Provisionsarealsomadetochlorinatetheeffluentwhenallthe

waste-waterreachingthedrainsisadequatelytreated.Theproposed

extensionwillbringthetotaltreatmentcapacityattheGabalElAsfar

plantto2.5millioncubicmetersperday.

TheGabalElAsfarWaste-waterTreatmentPlantcatchmentarea

occupiesthegreaterpartoftheeasternpartofthecity,andserves

approximately8millionpeople.Whencompleted,theproposedad-

ditionaltreatmentcapacityof500,000cubicmetersperdaywillserve

anadditional2.5millionpeopleinCairoEast.Theprojectwillprovide

acleanenvironmentthroughsafewastewaterdisposal.Otherbenefi-

ciariesoftheprojectincludepeoplelivinginvillagesdownstreamof

theplantandalongthesystemdrainingtheeffluentfromtheplant

intoLakeManzala,withanestimated785,800people,whowillalso

benefitfromanimprovedenvironmentandreductionofdiseasesas-

sociatedwithuntreatedwaste-water.

TheprojectisinlinewiththeBank’s2008-2012Medium-Term

Strategy,whichhighlightstheneedforselectivitybygivingparticular

operationalfocusoninfrastructuredevelopmentandgovernance,

inordertopromoteamorerobustprivatesector.Itwillbeimple-

mentedinlinewiththeBankGroup’sIntegratedWaterResources

Management(IWRM)policy.

Source: African Development Bank (Tunis), Image: PULPANDERPAPER

12


Interview of the monthAfrica: Governance Index Is a Work in Progress, Rotberg Saysby Margaret McElligott

Washington, DC — Dr. Robert Rotberg, professor at Harvard’s Ken-

nedy School of Government, told AllAfrica about the index he is work-

ing on that will be used, among other purposes, to guide the selection

committee of the Mo Ibrahim Prize for Achievement in African Leader-

ship. Excerpts:

Beginningin1999,maybe1998,IbeganworkingwithmyKennedy

Schoolgraduatestudentsincreatingthegovernanceindexbyusing

proxymeasurestodevelopanindex,notonlyforAfrica,butforthe

entireworld.Allofthosewerestudenteffortsguidedbyme,and

noneofthemhadtheprofessionalstatusnortheprofessionaltime

thatwouldenableallthestatisticalissuesaswellastheevidence

issuestobeworkedout.Nowwewillhaveanopportunity–begin-

ningthefirstofnextmonth–tospendseveralyears,maybelonger,

perfectingtheindexmethodologyandapplyingitdirectlytothe48

sub-SaharanAfricancountries.

Because the Mo Ibrahim Foundation is going to provide the

resources.

That’spartone.ParttwoisthatMoIbrahimwantstousetheresults

ofourrigorouseffortstoprovideacredibleunderpinningforthe

IbrahimAfricanleadershipprize.

What statistics will you be looking at?

Theeightindicatorsare:security,ruleoflaw,economicopportu-

nity,politicalfreedom–thosearetheimportantfourandthey’re

weightedmoreheavilythanthesecondfour,whichare:educational

services,healthservices,arteriesofcommerce,thatis,infrastructure,

andfinally,empoweringcivilsociety.Thoseeightmeasurementscom-

prisehowwemeasuregovernancebecausethat’showpoliticalgoods

aredeliveredtousascitizens.Wecanapplythissamemethodology

toacity’sgovernmentaswellastoanAfricanstate.

How would you compare this to other measures of governance that

are out there?

Therearen’tany.Thisistheonlyone.There’saWorldBankthing,

butitdoesn’trankcountriesanditdoesn’tusethesequiteclear

andtransparentmeasuresofgovernance.Itdoesn’tusethepolitical

goodsmethodology.Itusessomeothermethod,andthebigdiffer-

encethatpeopleattheBankandIhavediscussedatgreatlengthis

we’retryingtouseobjectivemeasures,sothere’snoselectionbias.

BythatImeanwewon’tusesubjectivemeasures,[suchas]people’s

opinions.

WhatabouttheMillennium

ChallengeAccount?

TheMillenniumChallengeAc-

countisgoodasfarasitgoes,

butthey’llbebetteroffusing

ourmeasureswhenthey’re

perfected.TheMillennium

ChallengeAccountusesFree-

domHouseinpart.Freedom

Houseisbasedoninterviews

andopinions,includingmyown,aboutcountries.There’saselection

bias.TransparencyInternational,whichIrevereandthinkisfabulous,

alsoisbasedoninterviewsandpublicopinion.IndexofFreedom

donebytheCatoInstitute,again,itbaseseverythingonopinion.

Whatwe’retryingtodoisgotoobjectivemeasures.

What are some of the objective measures for things like rule of law

or empowering civil society?

Let’stakesomeeasyonesfirst.Therearetwoimportantthings:one

isthatwe’remeasuringoutputsoroutcomes,notinputs.Totake

infrastructure,youdosomethingverysimple.Youcomparemilesof

pavedroadwayatTimeXversusTimeY.That’sstraightforward.That’s

aquantitativemethod.Itdoesn’tdependonanyone’sopinion.That’s

thesimplestofall,becauseyoucanseeBotswanahas1,000times

theroadnetworkthatithadatindependence,andCongohas1,000

timesless.Youcanusethoseastwobenchmarks.

Inhealth,youcanusethingslikeinfantmortalityandlifeexpectancy.

YouknowthatAfricahasHIV/Aids,soyoucansay,let’sdothisagainst

healthoutcomes15yearsagobeforetherewasAids.Youcandoall

kindsofcomparisons.Ineducation,youcanlookatpersistencein

school,thatis,howmanykidsgofromprimaryschooltosecondary

school,andhowmanystayinschool.Thoseareallmeasuresthatare,

inasense,proxymeasures.Ineconomicopportunity,youcanuse

GDPgrowth.YoucanuserawGDP.YoucanuseGinicoefficients.You

canuseallkindsofmeasures.There’ssomethingtheIMFuseswhich

showshowmuchmoneyinthesystemisactuallyinthesystemoris

actuallyinmattresses.It’scalled“contracteffectiveness.”Youcanuse

that.

Butyougettosecurity,youprobablywanttolookatthenumberof

violentincidentsperyear.Ifyouwanttolookattheruleoflaw,you

probablywanttoseethenumberofpoliticalprisoners.ButImust

cautionyouthatthesemeasuresarenotfinalyet.They’reonesthat

mystudentsandIhaveworkedon,butwe’renowgoingtogofrom

thealphatesttothebetatest,andwemaycomeupwithevenbetter

measures,andrejectsomeoftheonesI’vejustmentioned.

How will you measure political freedom and empowering civil

society?

13

Politicalfreedomisfreedomofexpression,soyoucandothatvery

easily:howmanyjournalistshavebeenkilled?Howmanyareinjail?

What’scensorshiplike?Youcandothatwithaprettystraightforward

measure.Ifyoulookatthewayelectionsareheldornotheld,you

canlookatfreedomofassemblytoo,thosekeypoliticalfreedoms.

[Weneveruse]theword“democracy,”becausewedon’twanttobias

thesamplebysayingsomethingismoredemocraticthannot.We

rejecttheFreedomHousesimplicityof“free,”“partlyfree,”and“not

free,”becausethat’stoocrude.Weultimatelywanttosuggestthat

inBotswanathere’smorepoliticalfreedomthanin,say,SouthAfrica.

Wecanshowthosequantitativelybecauseeachoftheseeightindica-

torshas,say,fourtosixsub-indicators.Youmightget50numbers

floatingaroundforanycountry.

Regardless, the real point is to quantify or make things objective as

much as possible as opposed to relying on interviews.

Yes.Thisisn’tquantificationforquantification’ssake.Thisisquanti-

ficationsothatpeoplecanfollowthetrailsoit’stotallytransparent,

and–secondbigpoint--sothatit’sdiagnostic.Malawicansay,“We

thoughtwewerebetterthanZambia,butwe’rerankedlowerthan

Zambia.Howcome?”Andtheycouldjustgodownthechartandthey

couldseethatZambia,say,wasbetterateducationalpersistence.

[Then]civilsocietyinMalawicanbeatuponthegovernmentandsay,

“Let’simproveoureducationalstanding.”

Since the index is looking at the country level, have you talked with

Mo Ibrahim or others at the foundation about how that will be ap-

plied to individual leaders?

ThewayIlookatit,andit’sstillunderdiscussion,isthatgoodleaders

producegoodoutcomes.Ifyouhavebadleaders,yournumbersare

goingdownhill.Ifyouhavegoodleaders,yournumbersaregoing

uphill.Thismeansevenifacountryisatnumber24,butifitwasat

number28,itmeansthatleadershipisdoingsomething,evenifit’s

notatthetopofthetotalheap.It’smuchimproved.Theleadermay

bestuckwithacountrythatisreallybadlyendowedorhashadsome

nationalcatastrophes,butyoucanseeitsprogressovertheleader’s

eight-yearperiodinoffice.

How will it work if a leader has good health or economic outcomes,

but is very authoritarian in office?

You’llbeabletoseeit.Let’ssay[acountry]showsupwellineduca-

tion,health,civilsociety,roadnetworkandeconomicopportunity.

Itmaybethatsecuritywillshowlowernumbers.Ruleoflawmight

showlowernumbersandruleoflawmightshowthelowestpossible

numbers.

How much will your choices of indicator be based on how solid you

think those numbers are?

Howsolidthenumbersareisaverybigissue.Therearestatistical

waysofsaying,ok,wehavereally[poor]numbersinthisarea,butthe

othernumbersareok,soyoucanfigureoutawaytodothat.Inmany

ofthesecases,alotofthenumberswillbesuspect,sowe’llhaveto

maybegointothesecountriesandtrytogetsomenumbers.

You’ll have a staff for that?

Acouplestaffpeopleandmyself.Notabigoperation,becausewe

don’tthinkweneedabigteam.Wemaybewrong.Wemayhaveto

gooutandrecruit.

But you’ll continue teaching?

Oh,yes.Themethodologyisdown.There’saWashingtonQuarterly

articleof2004.There’sawebsiteandanotherreportthatspellsit

outatgreaterlength.That’showIbrahimfoundme.Heactuallyread

mystuffandcametome.

When will the index be ready?

Thehope,butnotthepromise,

isJuneorJuly.

What insights have you gained

from the process so far in terms

of measuring governance?

WhatI’mtryingtodoisanalogoustowhatTransparencyInterna-

tionaldidbrilliantly.TransparencyInternationalinthe‘90sbrought

corruptionoutofthecloset.Corruptionwasnotevenmentioned

bytheWorldBankinthe‘80s.Peoplewereafraidtocallacountry

corrupt.TransparencyInternationalpulledthatoutoftheclosetand

wehopetodoexactlythesamething:bringgovernanceoutofthe

closet.Intermsofwhatwe’velearned,we’velearnedthatthereare

somehugeinformationalissues,butwethinkit’scapableofproduc-

ingagoodindexandthenabetteronethefollowingyearandsoon.

Do you hope it will be used, not only by the Mo Ibrahim Founda-

tion, but also by governments and donors?

Myhopeisthatthiswouldbeamodelfordrivinginvestors’decisions,

drivingdonordecisions,drivingtheMillenniumChallengeAccount,

drivingallkindsofpolicydecisions:that’swhyIinventedit.And,ulti-

mately,ifitworksforadifficultplacelikeAfrica,weoughttohavethe

samethingforAsia,thesamethingforLatinAmerica,andultimately

fortheentireworld.Thereoughttoberankingsthatshow,say,Fin-

landandIcelandontopandsomeofthebasketcasesonthebottom.

IthinktheindexwillprovideAfricansanddonorsandinvestorsand

civilsocietyandsoonwithatooltostrengthenAfricangovernance.

That’sthemainhope.Thesecondhopeisthatitwillmakeitpossible,

togetherwiththeIbrahimprize,tostrengthenAfricanleadership,

whichbadlyneedsstrengthening.

What do you hope will make this different from previous indices in

the sense that perhaps it measures governance marginally better,

but could still be dismissed, because people say the numbers aren’t

good or the methodology is flawed?

Youcan’tsoeasilydismissanobjectiveindexasyoucanasubjective

14


Capital Abuja

Area 924,000 sq km

Total Population 2008 151.5 Million

Urban Population 2008 48.43%

Female Population 2008 50.00%

GDP 2008 US$ 216.8 Billion

GNI Per Capita 2007 US$ 930

Inflation Rate 2008 7.05%

Crude Birth Rate (per 1000) 2008 39.24%

Human Development Index (scale 0 to 1) 2006: 0.499

ADB Membership Date: 10/09/1964

Cumulative Approvals (1967-2008): UA 2.6 Billion

Country Stats - Nigeria

Source: Africa Development Bank.

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index.Asubjectiveindex,youcansay,“Oh,it’sjustpeople’sopin-

ions.”Thiswillhavenobody’sopinions.

But, say you’re measuring health, education and infrastructure in

Cote d’Ivoire. As objective as you try to be, those numbers could

certainly be argued in terms of whether they’re accurate.

Theycanbearguedaboutwhetherthey’reaccurate,butpeoplecan

onlysay,“Youdidn’tgettherightnumbers.”And,yes,thatmaybe

true,sowe’lldothemoveragain.Buttheycan’tsaythenotionof

countingeducationalpersistencedoesn’tmakeanysense,because

they’dhavetothenmakeanargumentthatthefutureoftheIvory

Coastdoesn’tdependoneducation.Ithinkwewillatleastestablish

adialoguebetweenpeoplein-countrywhoareratedlowandpeople

outsidewhoareratingthemlow,astowhyandhow,andwhatthe

bestmeasuresare.Andthat’sgreatbecausemaybethesemeasures

canbeimprovedupon.Idon’tdoubtthattheycanbeandthrough

gettingeverythingouttherewe’llhavewhatintellectualsliketodo,

whichistohaveafulldialogue.

What will the African input into the index be?

Wedon’tknowthisyet,buttherecouldbeAfricanresearchersactu-

allycompilingtheindex.Aswemovealong,wewillcertainlyhave

criticsandfriendsinAfrica,andwewilldrawontheirwork.Iwould

lovethistospawnawholeseriesofcompetingwaysofdoingthe

samething,becauseoutofthatwouldcomeanimprovedmethodof

strengtheningAfricangovernance.Theultimateaimisimprovinglife

inAfricaontheground.

Image sources: Freshfiction and Photo Essay

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