Eye On Comesa 10


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COMESA Regional Investment Agency [RIA] monthly newsletter - January 2009 edition- number 10

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Eye On Comesa 10

  1. 1. EYE ON COMESA ISSUE 10 JANUARY 2009 CONTENTS COMESA REGIONAL INVESTMENT AGENCY Page 2 “Opportunities for Doing Business in and Through Mauritius” Latest Headlines The COMESA Regional Investment Agency in collaboration with Ministry of Investment in Page 3 Egypt and GAFI organized a seminar on Mauritius financial services commission under the Country of the Month theme “Doing Business in and through Mauritius” on Wednesday 17th of December, 2008 in Cairo, Egypt. Page 4-5 latest Headlines The seminar was held under the auspices of H.E. Dr. Mahmoud Mohieldin, Minister of Investment, Egypt, in honour of the visit of the Vice Prime Minister, Minister of Finance and Page 6 Economic Empowerment of the Republic of Mauritius – Dr. The Honourable Rama Sithanen. Events, About RIA, Quote of the day The event served as an opportunity for guests to learn more about the benefits of the Mauritius International Financial Centre which has also served as an informative source of how Egyptian businesses can benefit from the various opportunities currently prevalent in MALAWI Mauritius Malawi: USD 200m plant for Cement The Seminar began with a brief overview and introduction to the relations between Mauritius Company and Egypt, the Mauritius International Financial Centre and potential opportunities. Opening Source: AfricaNews Remarks by H.E Mr. Rshidally Soobadar followed before the Ambassador of Mauritius to COMESA RIA NEWS Egypt's presentation. A USD 200 million worth cement manufacturing plant is set to be “We hope that you will be enlightened” exclaimed Mr. Soobdar. He continued to explain how constructed by Malawi's cement the foreign minister could not make it and that he would hopefully be attending next year. company, La Farge in the southern Mr. Soobdar proceeded to explain how there existed a long standing relationship between Egypt and Mauritius. region district of Balaka. The plant is expected to be finished within 36 Page 4... months according to the company's chairman. ETHIOPIA The southern African country's local Ethiopia starts coffee exchange Daily Times quoted Kanyuka as saying Source: BBC News La Farge would also have a similar Ethiopia, Africa's largest coffee producer, has started trading the crop on a national commodity plant as its sister company in exchange. neighbouring Zambia which has capacity to produce 800,000 tonnes In a move aimed at both increasing quality and the amount farmers get paid for their beans, of cement per annum. coffee is being traded on the Ethiopian Commodity Exchange. “The extensive and detailed limestone Replacing the previous, more informal, system of sales through middlemen, farmers will now be able to get direct access to current market prices. exploration which commenced in September 2007 was completed in The exchange has set up a network of warehouses to collect the beans. October this year after one year of drilling. The explored areas included The Ethiopian government, which is backing the move, hopes it will prevent fraud, such as Chenkumbi in Balaka and Nkopola hills traders passing off beans from a lesser growing area as being those from a higher quality region. i n M a n go c h i ,” s a i d Ka ny u ka . . Although the largest growers and co-operatives will be able to continue to sell directly to the global coffee firms, everyone else will have to use the electronic exchange. www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY
  2. 2. JANUARY 2009 PAGE 2 Ethiopia has now became the fourth addressing key African development Uganda to secure USD 1.5b from foreign currency generating product of challenges. China the country next to the top three Source: AfricaNews products Coffee, oilseeds and cereals. According to a paper entitled, “Intra- Africa trade role of chamber of The Chinese government has approved Out of the last year's total of 1.5 billion c o m m e r c e ,” p r e s e n t e d t o t h e funding of around USD 1.5 billion for USD export earnings of Ethiopia, coffee conference by Sam Cho from the United Uganda's vast trade zone plan near Lake export has the biggest share generating Nations Economic Commission for Victoria. The plans are for a free trade 500 million USD, followed by oilseeds, Africa, strengthening African chambers zone of 200 square miles, which would which generated 221 million USD and of commerce can play key role to have a major impact on country's cereals generating 141.6 million USD. p ro m o te i nt ra - A f r i ca t ra d e b y economy. enhancing the supply and productive Chinese money would fund a new port Africa Chambers of Commerce and logistics centre, an airport, roads capacity. meet in Addis Ababa and telecoms infrastructure, facilities Source: Africa News for manufacturing companies and In 2005 Intra-Africa trade has a share of financial services, an agriculture less than 15% from the total trade, The African chamber of commerce met training centre and residential and according to Cho’s paper. The paper entertainment areas. in Addis Ababa, Ethiopia, to form one indicated that even though intra-Africa platform that enables them play key trade potential exists, half-hearted Paradise Investment Company of the roles in promoting trade in Africa. It is commitment to trade liberalization Chinese had signed an agreement last under the theme quot;private sector-a programs, small economies/market month with Ugandan partner Kagera venue for Africa's Renaissance.quot; The size, low economies, and infrastructure Eco-cities, giving it a majority share in meeting was organized by the Ethiopian are mentioned as the major challenges the management of the zone. Paradise Chamber of commerce and the AU. that hindered the continent from using Investment has drawn up a five-year its potential. plan to develop the area and around 40 The conference, which was the first of Chinese companies are interested in its kind in bringing together African This project financing will represent a setting up there business communities, Took place until landmark transaction for EHC as it November 26, 2008. It focused on the establishes itself as a major player in the Ethiopia: Company expands oil and gas markets in Egypt. development and future prospective of flower farms the African chambers of commerce and Source: AfricaNews In addition to the Project EHC is also strives to enhance the role of the private developing Greenfield Ammonium sector in transforming the continent A Dutch Company engaged in flower Nitrate project, The Ammonia project from aid to trade. farm development is undertaking reached financial close in 2005 and is expansion project to double the size of being funded under US Exim and Opening the conference, Girma Biru, its existing 250 hectares of land covered commercial debt structure by a Ethiopia’s Minister of Trade and with flower in Zway area. Sher Ethiopia, syndicate of international banks and Industry said: “your gathering will have started operation in 2005 has now expected to achieve Completion early in great significance in yielding ideas all completed 50% of the expansion and 2009. African governments need for their plans to cover a total of 450 hectares of endeavors to combating common land with flower within one year. Bank steps in with huge boost for enemies, poverty, ignorance and Currently, a total of 1,200 hectares of youth polys disease.” land in Ethiopia is covered with more Source: Kenya Business Daily than 80 flower growers. More than The organizers of the conference 90,000 jobs have been created in or Efforts by the Government to improve believe that a competitive and around these flower farm companies. It skills among the youth to levels where independent Africa, which is free of aid, is expected that green house coverage they can be employed by expanding could only be realized through the will reach 2,000 hectares in the coming youth polytechnics has got a big boost. development of the private sector in the two to three years. continent. The African Development Bank (AfDB), Ethiopia began exporting flowers in whose thrust is financing and promoting The conference is also to strengthen and 2001-02, when income totaled USD economic development and social establish a vibrant network among all 159,000. Some 70 percent of the progress, has agreed to fund the African chambers of commerce and also country's flower products are exported project. with their counterpart chambers to the Netherlands while 10-15 percent is exported to Germany. globally. This will promote the active The AfDB has committed a Sh 2.8 billion participation and contribution of three-year facility to help improve The rapidly growing flower sector in African chambers of commerce in access, quality and relevance of skills www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY
  3. 3. JANUARY 2009 PAGE 3 development in the institutions through Uganda, Egypt, Zambia, Zimbabwe and bursaries, training of trainers and Mauritius), with a total population of construction of more polytechnics. more than 390 million. Its main objective is to forge economic Mauritius to host COMESA Fund integration in the sub-region through Union of the Comoros Source: Mauritius News strengthening investment and economic Country Of The Month ties among the member states. Mauritius will host the COMESA Surface area: 2200 Km2 (Common Market for Eastern and Capital: Moroni Southern Africa) Fund that has been Microfinance Leader Makes Multi- Population (2007): 841,000 established as a vehicle to mobilize million Dollar Investment in Official language: Comorian, Arabic and resources, PANA reported here Tuesday. Microinsurance Companies French Source: PR newswire Currency: Comorian franc (KMF) One official from the Foreign Affairs, GDP at market prices (2006): USD 0.40 Regional Integration and International ACCION has also announced a USD 3 billion Trade Ministry told PANA that the million investment in Leapfrog Real GDP growth rate (2007): 1.24 % decision to host the fund follows Investments. FDI inflows (2006): USD 0.6 million intensive diplomatic negotiations which FDI Stock (2006): USD 25.5 million Minister Arvin Boolell had during his a USD 100 million microinsurance Exports of goods and services (2006): mission to Lusaka, Zambia, for the investment fund headquartered in USD 11 million Council Meeting of the COMESA, on 4-5 Mauritius. The fund, with an expected Imports of goods and services (2006): December 2008. close in the first quarter of 2009, will USD 110 million build and replicate a sustainable model Main export sectors: Vanilla, Cloves and He described the COMESA Fund as an fo r d e v e l o p i n g a n d m a r ke t i n g Ylang-ylang instrument of Aid for Trade that microinsurance services to the poor, and Main destinations of exports (2006): addresses productive capacity and will conduct early pilots in Africa and Netherlands, France, Italy and infrastructure needs, as well as Asia. Singapore adjustment costs associated with Main origins of imports (2006): France, integration and economic reforms. Leapfrog positions itself as the first United Arab Emirates, South Africa and global investment firm focused Pakistan The fund has an Adjustment Facility to exclusively on businesses that meet the Your Partner in Investment address costs that may arise from insurance and related financial needs of Ministère des Finances, du Budget, de implementing regional integration low-income people in developing l'Economie, du Commerce et des measures, including trade. countries. Investissements ''The fund also has an Infrastructure Moroni, Comoros Window intended to mobilize resources Tel: (+269) 730 000 for the construction and maintenance of infrastructure, and for addressing some of the limited productive capacity NUMBERS of its individual member states,'' he 200 5000 said. A USD 200 million worth cement Cash value of the agriculture awards The COMESA Fund has been ratified and manufacturing plant is set to be held in Zimbabwe. is now in force. constructed by Malawi’s cement company, La Farge. According to him, COMESA has identified a number of important 1.5 2.8 infrastructure projects that would greatly enhance development and The Chinese government has approved Sh 2.8 billion have been commited by integration once implemented. funding of around USD 1.5 Billion for the AfDB three year facility to help Uganda’s vast trade zone plan near Lake improve access, quality and relevance COMESA was established in 1994 to Victoria. of skills development in the institutions replace the 'Preferential Trade Area'. through bursaries, training of trainers 525 and construction of more polytechnics. It comprises of 19 countries (Burundi, Comoros, Democratic Republic of Ethiopia earned 525 million from Coffee Congo (DRC), Djibouti, Eritrea, Ethiopia, exports in the 2007-09 financial year. Kenya, Libya, Madagascar, Malawi, Rwanda, Seychelles, Sudan, Swaziland, www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY
  4. 4. JANUARY 2009 PAGE 4 Oman, Libya Sign USD 500M JV Deal Source: The Tripoli Post The Sultanate of Oman and Libya have signed a USD 500 million deal to establish a joint investment company to be based in Tripoli. The company will invest in economic, real estate, tourism, industrial, service and energy projects and will also set up joint stock companies to undertake different projects, according to a joint statement. The State General Reserve Fund will represent Oman in the Oman-Libya Investment Holding Company. The agreement was signed on behalf of Cont... COMESA Woos European Investors the Sultanate by Dr Qasim bin M o h a m m e d a l S a l h i , O m a n ’s (cont’d from page 1) Further elaboration on RIA then took Ambassador to Libya, and Abdulamir place with Dr. Ziad explaining how RIA bin Mohammed bin Said, Deputy “We are writing a new chapter within was invited to join the delegation in Executive Director of the State’s the Economy and the financial sector” Singapore and Malaysia. General Reserve Fund, while Hamid al His excellency claimed. He proceeded His next point revolved around the Arabi al Hudhairi, board chairman and to explain how with global terror and economic crisis, of which he claimed Director General of the Fund for our current climate that things were was a “reminder” that we need to Economic and Social Development, not easy; “but we have to go ahead” build “bridges”. signed for the Libyan government. he added. The conference concluded with a Salhi said the signing of the pact was quot;a Further emphasis on the continuation series of presentations, including: Mr. clear indicator that Oman-Libya of Egyptian-Mauritian relations was Milan Meetharbhan, CEO of the relations are witnessing tangible then put forth. Financial Services Commission; Mr. development.quot; He added that an Omani Raju Jaddoo, Managing Director o the business team would visit Libya shortly Mr. Ragab went on to explain how Board of Investment and Mr. quot;to have a close look at investment Egypt commends this collaboration Mamdouh Abdel Wahab, Director of opportunities there.quot; and that they needed to seize this Investor Relations from the Sawiris opportunity. Property, tourism, Orascom Group. Mr. Milan proceeded He called upon Libyan businessmen to infrastructure, IT, trade and sharing to give an “overview of the Financial take the opportunity to invest in the local talents from both ends were all Services Sector” in Mauritius. He Sultanate which, he stressed, was listed as great opportunities for explained, through his presentation, working to diversify sources of its collaboration between Egypt and how the Sector was composed income through the establishment of Mauritius. primarily of Global Business and mega projects worth billions of dollars, It was noted that Mauritius can be Financial Services other than Banking. including a liquefied gas project and perceived as a “bridge” or “gateway” Mr. Raju Jaddoo proceeded to explain petroleum-based industries. to COMESA as well as India. While how Mauritius was a long term Egypt served as a “gateway” for the investment base. Doing business in Salhi said Oman's current Five-year Plan Mena region. Dr. Ziad began his Mauritius was the focal point of the envisaged the setting up of an portion of the seminar by explaining presentation. Export of services and integrated city, with a large spectrum of what COMESA is. He conveyed the fact market access were also covered. The services in the wilayat of Al Duqm at a that COMESA is “an organization that Orascom presentation explained how cost of USD 7 billion, adding: quot;The brings in 19 countries” and that it has OD Holding is an established integrated government, in order to attract foreign proven to be a player to rely on. “The town developer in Egypt and the investment, has worked to liberalise the world is paved with major crises which Middle East, with a proven business economy and draft laws to reinforce urge this kind of collaboration” he model aiming to deliver significant investor confidence.quot; exclaimed before further adding the growth through the development of point that RIA in term acts as large untapped land banks. The COMESA's “investment arm”. seminar ended with a question and answer session. www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY
  5. 5. JANUARY 2009 PAGE 5 analysis of a wide range of background City master plan unveiled to Zambian government to remove conditions and technical aspects investors bureaucracy outlined in the existing conditions Source: The new times-Rwanda Source: Lusaka times report. The Kigali City Council (KCC) has Finance and National Planning Minister, The report considered environmental, unveiled its master plan to the city Situmbeko Musokotwane said the land use, infrastructural, cultural, and investors’ forum to ensure that their Government would encourage private socioeconomic factors as well as investments in line with it. The master sector participation by removing economic and demographic plan is a roadmap for the expansion of bureaucracy and making it easy for p ro j e c t i o n s , o p p o r t u n i t i e s a n d Kigali city in the next 50 years. people to start doing business. constraints for the urban development. According to Aisa Kirabo Kacyira, the Private Sector Development The plan also outlines the designs, KCC Mayor, the unveiling of the plan is Association (PSDA) chairperson, Yusuf strategies and actions that will guide also intended to speed-up the Dodia urged the Government to avoid Kigali planners and citizens into future implementation of the city master plan. borrowing from banks next year so as more detailed district plans and This was during the Kigali Investors’ not to create more pressure on the implementation. Forum (KIF) meeting on Tuesday, at the financial sector. Prime Holding. Mr Dodia said the Citizens Economic The plan contains renewable five year Empowerment Commission (CEEC) and detailed physical plans that will serve as KIF brings together heads of private the Development Bank of Zambia (DBZ) benchmarks for the city planners businesses and parastatals, security should be merged so that they could depending on the infrastructure and organs, development partner assist Zambians in starting up type of activity to be set up. institutions, districts and government businesses. institutions to discuss challenges and Since its approval by cabinet, the plan opportunities around the city. Intel extends its World Ahead has been unveiled to different Initiatives in Egypt stakeholders including the youth and The plan’s presentation highlighted Source: AME info university studies. investment opportunities in and around Plans for new USD 40m five-star hotel the city. Some of the opportunities Marking a first for Africa and the Arab unveiled include hotels, shopping malls, and world, Intel Corporation Chairman Craig recreation centres. Some of the places Barrett announced that Intel N ew F i ve S ta r H o te l B e i n g in Kigali have already been designed for motherboards, a key component for some specific economic activities Constructed computers, will be assembled in Egypt according to the plan. Source: The new times Rwanda for shipment across Africa For example, the proposed Nakumatt New Century Development Limited, a He also opened a research lab for complex and Kigali Convention Centre in Hong Kong registered company developing micro-electronics and for Kimihurura, are some of the yesterday unveiled a plan for a Five Star teaching new generations of engineers infrastructures supported by the new Hotel they will construct in the heart of and designers. plan. Against this background, Kacyira Kigali City. called upon investors to take-up the The arrangement with a local hardware opportunities and make the dream The Hotel, which will be located at the manufacturer is part of Intel's ongoing reality. current Jali Club and the Headquarters effort to advance Egypt's technological, of both Rwanda Television and industrial and economic development. “Lets your plans align with the city plans Nyarugenge District premises, will be The Egyptian government gave the plan as we also work together in constructed at a cost of USD 40m its full support in an agreement signed implementing it,” she lamented. The (approx. Frw22bn). today between Intel, Boraq for city plan also provides centres for Electronics and Industries and Egypt's administration, residential areas, “The construction begins in January Information Technology Industry technology and other centres. next year and will take two years for the development Authority (ITIDA). hotel to be fully finished,” said Billy Y.T Faustin Mbundu, the Private Sector Cheung, the Chief Executive Officer of Boraq for Electronics and Industries is Federation (PSF) Vice Chairman, said African Star Limited, a subsidiary of New the first company in Africa to assemble that it is our responsibility to raise funds Century Development. Intel motherboards. Shipping is and take-up the investment expected to begin in the second quarter opportunities. According to Cheung, the hotel, which of 2009, with initial distribution will have over 200 luxury rooms, is the intended for Africa. “We should also merge our plans with first investment the company, which those the city,” he said. The conceptual mainly deals in real estate development, master plan is based on research and is sinking on the African continent. www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY
  6. 6. JANUARY 2009 PAGE 7 QUOTES About us The COMESA regional investment A business has to be involving, it has to be fun, and it has to exercise your creative instincts. ABOUT US agency is a co-ordinator between Richard Branson the 19 COMESA Investment Ridiculous yachts and private planes and big limousines won’t make people enjoy life more, Promotion Agencies “IPAs”. It aims and it sends out terrible messages to the people who work for them. It would be so much better to bring forth all the investment if that money was spent in Africa – and it’s about getting a balance. information and opportunities for Richard Branson worldwide investors interested in the region. EVENTS RIA team 5th Annual Clean Tech Investor Summit Heba Salama Jan 21-22 2009 Manager Renaissance Esmeralda Resort and Spa hsalama@comesaria.org At Indian Wells, Palm Spring, CA. Mohamed Aref Cleantechsummit.com Research Analyst maref@comesaria.org Cathy@IBFconferences.com Dina Helal COMESA Investment Conference 2009 25 February Marketing Officer dhelal@comesaria.org Fairmount Towers, Cairo, Egypt Karim Higazy events@comesaria.org Media Editor khigazy@comesaria.org Real Estate Investment World 23-26 March 2009 Malik El Rouby Pudong Shangri La Shanghai Accountant malik@comesaria.org Yeelim.tan@terrapinn.com Subscription Arabian Hotel Investors Conference 2009 2-4 May 09 request subscription through: Madinat Jumeirah Dubai UAE newsletter@comesaria.org Rising Above Expectations Arabianconference.com COMESA RIA DIARY SPONSORS Gold Sponsor Platinum Sponsor Silver Sponsor While every effort is made to provide accurate information, no responsibility is taken for inaccuracies and omissions contained herein. 3, Salah Salem Road, Nasr City, Cairo, Egypt General Authority For Investment BLDG Tel: (+ 202) 240 55 428 Fax: (+202) 240 55 421 info@comesaria.org www.comesaria.org www.comesaria.org COMESA REGIONAL INVESTMENT AGENCY