Africa News blog

African business, politics and lifestyle

How to win business in Africa?

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RWANDA-ECONOMY/African countries are often being told what they need to do to win more investment and expand their economies, but there is always a question as to whether making the changes will really deliver the rewards.

The lesson from top reformer Rwanda seems to support the argument that it is worthwhile.

Registered investment leapt 41 percent to $1.11 billion in 2009 in spite of the particularly difficult global environment. It is expected to rise 20 percent this year. And that is in a small, landlocked country not noted for immense resources, still recovering from the genocide of 1994 and some neighbours that might best be described as unstable.

Rwanda has long been a darling of donors because of its reforms and no doubt also because of guilt over the world’s failure to prevent the mass killings, but this isn’t aid money – it is investment in businesses to generate money and jobs.

Will EAC’s common market deal work?

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For telecoms-tycoon-turned-philanthropist Mo Ibrahim, it’s one step forward, two steps back. For Benno Ndullu, governor of the central Bank of Tanzania, the whole thing is bound to stall unless problems are ironed out first.

For many Tanzanians, it’s a threat to their jobs, language and prospects.

But for the leaders of the five-member East African Community (EAC), signing the common market protocol on Friday represents the future fortunes of Burundi, Kenya, Rwanda, Tanzania and Uganda combined.

Women lead from the front in Rwanda’s parliament

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After next year’s election in Rwanda, women hope they will take around two thirds of the seats in parliament.

It would be an ambitious dream for equality campaigners in many countries, but after the 1994 genocide, women made up 70 percent of Rwanda’s population.
 
Rwanda became the first country in the world with a female majority in parliament after last year’s election.
 
Solange Tuyisenge has a rural constituency and has been a legislator for about four years. She says even more can be done to give women even more political clout.

Who gains from Kigali’s building boom?

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Economic growth is fuelling a building boom in Kigali, the Rwandan capital, and the city is likely to be unrecognizable within a decade.

A government initiative called ‘Vision 2020′ is intended to transform Rwanda into a middle income country, with a healthy annual growth rate of seven percent.

Rwanda: legacy of a genocide 15 years on

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This April marks 15 years since the Rwandan genocide, an event that still casts a dark shadow over the region. It was a killing spree that lasted just three months, but that left 800,000 people dead, most ethnic Tutsis, killed by soldiers and civilians from the majority Hutu ethnic community.

It took an army of exiled Tutsi Rwandans, led by Rwanda’s current president Paul Kagame, to stop the killings. That government, still in power 15 years later, has vowed that a Rwandan genocide can never happen again. It’s a policy that has had a deep impact on the whole region, especially on Rwanda’s bigger neighbour, the Democratic Republic of Congo.

Stumbling block for the Pharaohs?

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Egypt might have won the last two African Nations Cup tournaments but the Pharaohs seem to have hit a stumbling block when it comes to the World Cup.

For all their prowess at the last two continental championships, and their glittering array of successes at club level, Egyptian soccer is becoming increasingly haunted by the spectre of continued failure to make it to biggest footballing showpiece of them all.

France and Africa. New relationship?

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Before Nicolas Sarkozy was elected president in 2007, he made clear he wanted to break with France’s old way of doing business in Africa – a cosy blend of post-colonial corruption and patronage known as “Françafrique” that suited a fair few African dictators and the French establishment alike.

He has made the same point during his past visits to the continent.

“The old pattern of relations between France and Africa is no longer understood by new generations of Africans, or for that matter by public opinion in France. We need to change the pattern of relations between France and Africa if we want to look at the future together,” Sarkozy said in South Africa early last year.

Can local resources power Rwanda?

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Africa is the least electrified continent on the planet and getting power into the homes of millions of people who don’t have electricity is an enormous challenge.

Rwanda is Africa’s most densely populated country and 9 out of 10 people there don’t have electricity. The government is now tapping its own natural resources such as the methane deposits under Lake Kivu to try to meet the country’s growing energy
demands. 

Is East Africa ready for oil?

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Buoyed by recent discoveries of commercial scale oil deposits in Uganda, east African policy makers, foreign oil explorers and their local partners trooped to a five-star hotel on the Kenyan coast this week to reflect on the progress and chart future strategies.Viewed as a frontier region for oil exploration, east Africa’s first major oil find was made by Tullow Oil and Heritage Oil companies in the Albertine Basin, which spans the border between Uganda and the Democratic Republic of Congo (whose improving relations are making the exploitation of the reserves look morel ikely).Before that, Tanzania had found vast reserves of natural gas in Songo Songo and Mnazi Bay areas.Just like Rwanda, which hopes to revolutionise electricity generation in the region through methane gas from Lake Kivu, Tanzania hopes to power cars from the gas and generate much needed electricity from its natural gas.The regional economic power house Kenya has, however, had disappointing results so far in its search for oil.Although 32 wells have been sunk here since the 1950s, only traces of oil and gas have been found. It is now reprocessing data gathered over that period in the hope new knowledge and technology will reveal hidden deposits.Drilling, an expensive affair that prospectors say can cost a firm $200 million for one well, took a commercial break in the 1980s. But it has also seen a resurgence of interest, thanks to last year’s rise of crude in global markets.Kenya issued 14 exploration licenses last year and China National Offshore Oil Corporation (CNOOC) is set to sink its first well in the second half of this year in the eastern province.Kiraitu Murungi, the nation’s energy minister, told the meeting in Mombasa they were praying day and night for the new well and data reprocessing to show signs of oil.On the other hand,  Uganda — long reliant on Kenya’s ageing oil refinery for its supply of petroleum products — has grand plans for its newfound oil resources.They include the construction of a state of the art modern refinery at an estimated cost of $1.3 billion to process its oil as well as oil from any new finds in the region.Uganda’s energy and mineral development minister, Hillary Onek, spoke of the plans with a grin and added that the region, believed to share common geology, could be headed for a better future as it taps its oil and gas reserves to power development.However, as officials and oil prospectors retired to the hotel’s restaurants and beach bar for a drink in the evenings, they must have wondered if a few obstacles may not block the path to that prosperous future.The global financial crisis is weighing heavily on the finance base of some companies prospecting in the region.Lack of local skilled manpower in oil and gas industry is also worrying. So is the big question of how to equitably manage revenues from oil and gas so that oil and gas do not turn into a curse for the region as they have elsewhere on the continent.Is east Africa ready to handle oil and gas? Will oil discoveries help local communities?

Congo: Step forward or back to the past?

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Rwanda sent hundreds of its soldiers into eastern Congo on Tuesday in what the neighbours have described as a joint operation against Hutu rebels who have been at the heart of 15 years of conflict. Details are still somewhat sketchy, with Rwanda saying its soldiers are under Congolese command but Kinshasa saying Kigali’s men have come as observers.

Evidence on the ground suggests something more serious. United Nations peacekeepers and diplomats have said up to 2,000 Rwandan soldiers crossed into Congo. A Reuters reporter saw hundreds of heavily armed troops wearing Rwandan flag patches moving into Congo north of Goma, the capital of North Kivu province. The world’s largest U.N. peacekeeping mission is, for now, being kept out of the loop.

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