Tradequitye

A Newsletter of CUTS Africa Year 9, No. 4/2010

Zambian Miners Want Windfall Tax Back he Zambian government has The government has been further should learn from countries Tbeen urged to seriously consider advised to consider learning from like Malawi, which has done relatively the many concerns being raised, not Australia, which had introduced a 40- very well by committing more only by Zambians but also by a good percent on super profit by mines resources to the agriculture sector. The number of cooperating partners over effective 2012 stating that these were country is thriving at both the re-introduction of windfall taxes the kind of efforts that should be international and domestic levels or considering hiking the mining replicated in a country like Zambia because of its fiscal commitment to taxes being paid by the mines. both in short and medium term. the agriculture sector. By signing the Comprehensive Africa Agriculture CUTS International Lusaka Board It is noted that there was need for Development Programme (CAADP) Chairman, Ambassador Love Mtesa, the government to also consider compact, the Government of Malawi was quoted saying “by instituting the implementing key provisions of the committed itself to sustaining or reintroduction of windfall taxes or amended Mines and Minerals increasing the CAADP recommended raising mining taxes, Zambians would Development Act to enable 10 percent of the national budget to be able to get a fair share of proceeds communities benefit from mineral the agriculture sector, with a view to from natural resources mined in the royalties and to clearly define policy achieving at least six percent country”. He added that it was on the use of the resources in order agricultural growth. common knowledge that the country's national wealth must benefit to promote national development. Zambians more than anyone else. However, Malawi is well above the The question that ensues is should CAADP target with an eight-percent Ambassador Mtesa is further quoted Zambians commit to these initiatives growth and 14 percent of the national saying “The government must for the sake of image building to the budget going to agriculture. The sector appreciate that windfall and variable international community, which is at generates about 80 percent of foreign taxes introduced by late President the expense of ordinary people and exchange for Malawi and subsequently Levy Mwanawasa after so much development? The song of making the 39 percent of the gross domestic campaign were designed to enable agriculture sector, a viable sector, to product (GDP). Zambians benefit from the soaring meaningfully contribute to the much- copper prices and super profits earned needed revenue gains for this country I N T H I S I S S U E by mining companies”. seems to be shrouded in mystery. France Telecom Targets Africa ...... 2 New Dawn for Africa ...... 3 He noted that, while the Zambian The only way the agriculture sector Remove African Trade Barriers ...... 4 government was dragging its feet over will flourish is through the allocation Boosting Power Supply ...... 5 the re-introduction of the windfall tax, of more resources, even beyond the other countries such as Chile, Maputo commitment. These Climate Change Conference Vital ...... 6 Democratic Republic of Congo were resources can, to a greater extent, be making serious efforts to come up raised locally, especially from the with mechanisms to generate more extractive industries, through the re- resources for workers, communities introduction of windfall taxes or and their infrastructure development CUTS Africa raising mining taxes. Email: [email protected] (Lusaka) programmes. Email: [email protected] (Nairobi) Website: www.cuts-international.org Economics and Development

15 percent of the cost will be provided France Telecom Targets Africa by either the government or ZESCO. The project is expected to shorten the

rance Telecom is aiming to become www.timescontent.com Fthe “champion of rural Africa” distance for the implementation of the with a range of low-cost products and Zambia--Kenya interconnection services aimed at doubling its sales in project. Mupwaya said measures have the area by 2015. been taken by ZESCO to extend the lines from 66 to 330 kV from Serenje to Kasama The French operator is counting and another line from Serenje to Chipata. on rapid expansion in fast-growing He said with this development, the gap African and Middle Eastern markets between ZESCO and Tanzania Electric to offset a gradual decline in its Supply. (ZDA, 16.12.10) traditional fixed-line business and lower profits from mobile operations UK Grant to Ease Trade in France. The British government has released It set out its strategy for doubling a total of US$110mn for starting the its revenues in the region from US$4.7bn in 2009 through building networks, process for the implementation of the East recruiting low-income rural customers and providing mobile internet African Community (EAC), the Common services under its Orange brand. (FT, 10.11.10) Market for Eastern and Southern Africa (COMESA) and Southern African KQ Workers Disown Pay Deal financed by the government and the Development Community (SADC) Workers in the aviation industry have private sector. Other ongoing projects North-South corridor infrastructure denied claims of reaching an agreement under the PPP include the construction programme. with Kenya Airways (KQ) on contentious of new hostels, shopping mall and mini- The project, when implemented, will wage review talks and warned that they stadium at the University of Zambia and enable faster border crossings and will call a strike, should the negotiations the itezhi-tezhi hydro-power project improved port facilities. Railways and break down. The Chairman of the (ZDM, 08.12.10) highways will enable producers and Aviation and Allied Workers Union traders, especially in landlocked countries, Zambia to Reveal Mine Tax (AAWU), Moses Ndiema, dismissed a to transport their goods quickly and access statement by the national carrier stating The Zambian government should more easily regional and international that a deal on the protracted negotiations disclose the terms under which it has markets, stimulating economic growth had been signed, saying the two parties agreed the new tax regime with the foreign and inward investment. had only selected a team to lead the talks. mining firms, says the Economics (TEABW, 06.12.10) Paul Kasimu, Human Resource Association of Zambia. EAZ President, Adopt India's Growth Model Director, Kenya Airways, said that the Noel Nkhoma, said the failure to disclose airline had reached a final agreement with the contents of the agreement raised COMESA has advised Africa to the union. There has been a new suspicion among key stakeholders. For the reproduce India's private sector as growth leadership at AAWU that has set new purpose of transparency, the government model for the continent to succeed demands on the CBA that had been should be able to come out publicly and economically. COMESA Secretary, reached in April 2010. A staggering wage say we engaged the mines. General Sindiso Ngwenya, praised the bill and increasing operational costs have He warned that lack of transparency role played by the private sector in eroded KQ's profitability in recent years, might lead to a repeat of the one-sided growing the economy of that country. He as the full implementation of the union's development agreement which suffocated said the COMESA business council demands are set to push staff costs the country's ability to raise mining tax already had an MoU with the India beyond US$12bn a year. revenues, even in face of high record high Chambers of Commerce and emphasised (BD, 15.11.10) metal prices. Given the current copper the need to build on the already existing prices, Zambians could benefit more if relationship. PPPs' Contribution to GDP the government raised more from mine He named technology transfer, with Actualisation of public-private taxes. (ZDM, 02.12.10) particular emphasis on leather and leather partnerships (PPPs) in Zambia will products, cotton textile and clothing, Zesco, TBA China Sign Deal contribute up to 10 percent to the gross agro-food processing and ICT, as area that domestic product (GDP) within five ZESCO Limited has signed an was of interest to the COMESA region. years, through increased inflow of agreement with TBA of China, valued at India's Minister of State for External investments in the economy. Zambia's US$334mn, to extend the 330 kilovolt Affairs stated that there was need to GDP is forecast to grow by about 6.4 (kV) power line from Pensulo in Serenje reinforce the India-Africa relationship and percent and reach US$19bn in 2010. to increase the capacity supplied to announced that her country would hold Zambia has earmarked many projects Northern and Eastern provinces. TBA a summit in 2011 that will address the in energy, transport and agriculture, which will finance 85 percent of the project cost issue. (ZDM, 15.11.10) will be developed through PPPs to be through a loan to the government, while

2 u Year 9, No. 4/2010 Tradequity News on Trade End to Agro-produce Import and it attracted over 40 million tourists, ZDA Director General Glyne The Zambian agricultural sector has while Zambia's was below 1 million in Michelo, said once the one-stop border made tremendous progress following the 2009. (MT, 28.12.10) post being constructed under the public diversification of the economy. The sector, private partnership (PPP) framework at among other crops, has seen an increase Zambia Kickstarts AGOA Forum Kasumbalesa becomes operational, trade in maize production, with a bumper Zambia is scheduled to host the will be enhanced. harvest of 2.8 million metric tonnes in African Growth and Opportunity Act Michelo said trade will be enhanced the 2009-2010 farming season. (AGOA) forum in 2011. The goal of the through swift clearing of goods and traffic, However, whilst the government is annual AGOA forum is to expand trade thereby reducing the long time exporters promoting high production levels, the and investment with the US to review in both countries face. The agreement situation on the ground shows otherwise the implementation of the AGOA would be important in terms of trade in promoting the sale of these crops. One programme and explore new ways to facilitation and removing barriers to trade such crop is potatoes, as has been seen enhance trade across the Atlantic. caused by poor infrastructure and with their importation by some fast food The forum will further lobby the US cumbersome trade rules. (ZDM, 15.11.10) outlets from countries like South Africa. government to extend the period of Ambassador Mtesa has expressed AGOA initiative beyond 2012 and China in Africa! concern on this issue. He says the increase items that can be exported to that China's engagement in Kenya government needs to be protective of its market. Felix Mutati, Commerce, Trade continues to grow exponentially. China agricultural sector. and Industry Minister, Zambia said that, enjoys a large trade surplus with Kenya; Potatoes are locally produced and at the national level, the government is exports increased by more than 25 percent readily available, which makes it easier for working with the US on issues related to a year from 2004-2008. The China many Zambians to buy rather than the export of vegetables and horticultural National Offshore Oil Company importing from the South Africa and products. Zambian products are not (CNOOC) is drilling for oil in the Isiolo other countries. (MT, 17.12.10) allowed in the US market because the US region. China may be a potential partner congress has to certify the products to in the development of the new mega port Boosting Zambian Economy ensure that they meet the standards. at Lamu. The Minister-in-Charge of (ZDM, 19.11.10) In addition, China is heavily involved Commerce Trade & Industry, Felix in various infrastructure projects across Mutati, says Zambia intends to benefit Zambia-DRC Enhancing Trade Kenya, primarily with roads. China is also from Egypt's strong economy by inviting The bilateral trade agreement providing weapons to the Government investors in agriculture, tourism and between Zambia and the Democratic of Kenya in support of its Somalia policies construction sectors. He said Egypt is Republic of Congo (DRC) once and increasing its involvement with the strong in its agriculture and tourism concluded will enable Zambian products Kenyan National Security and sectors and the government will persuade to enter the Congolese market duty and Intelligence Services by providing more investors to invest in these sectors to quota-free according to the Zambia telecommunications and computer boost Zambia's economy. Development Agency (ZDA). The equipment. Recently, China signed an He said that this will also enhance bilateral trade agreement with the DRC economic and technical cooperation trade between two countries and provide would further stimulate trade as Zambian agreement with the Government of opportunities for citizens in both the products would become price competitive Kenya. (ZDM, 11.12.10) countries. Egypt has stable food security on the DRC market. New Dawn for Africa frica and Europe have agreed on a new plan of action Aaimed at strengthening relations between the two continents. The Action Plan 2011-2013 was adopted at the recent Africa-EU Summit held in Tripoli, Libya. It replaces the First Action Plan 2008-2010 that was approved at the last www.toonpool.com summit three years ago. Both plans of action are based on eight strategic partnerships. These focus on energy, climate change, peace and security, Millennium Development Goals (MDGs), trade and infrastructure, among other sectors. Under energy, Europe and Africa aim to improve access to reliable, affordable, cost-effective, climate friendly and sustainable energy services for both continents, with a special focus on achieving the MDGs in Africa. Africa and Europe also plan to double the capacity of cross border electricity interconnections, both within Africa and between Africa and Europe, thus increasing trade in electricity while ensuring adequate levels of generation capacity. (TH, 10.12.10)

Tradequity Year 9, No. 4/2010 u 3 News on Trade

Integrating Trade Issues Jacob Zuma, President, South Africa, Remove African The Rwandan private sector is set to crisscrossed the BRIC countries to benefit from US$160-fund run by negotiate entry into these nations. At Trade Barriers Enhanced Integration Framework (EIF), present, South Africa is a member of IBSA an international body based in Geneva. (India, Brazil and South Africa), trading EIF supports least developed US$7bn at 2007 figures alone. governments in trade capacity building The rationale for increased relations and integrating trade issues into national between BRICAF (BRIC-Africa) is even development strategies. greater in the context of the south-south According to a EIF study entitled, cooperation on the back of a tripling of 'Diagnostic Trade Integration', access to trade and investment, to eradicate poverty electricity, high costs, low data availability from the bottom of the pyramid, giving on trade matters and monitoring capacity hope to millions of inhabitants of Africa. on trade issues and access to trade finance (TN, 16.11.10) were identified as some of the major challenges affecting private sector Africa Fails to Benefit from Trade productivity. This is in addition to Poor market access for African products insufficient equipment and capacity to in the international markets is one of the test products for standards compliance reasons for poverty crippling the

www.thegeminigeek.com and poor conditions of roads. continent.By selling unprocessed (RT, 03.12.10) agricultural commodities and natural frican countries need resources, many African countries have Zambia Earns from Tobacco Aurgently to tear down the lost a huge portion of their share in trade barriers that have been Zambia has sold tobacco valued at international trade. US$98.9mn to international markets While global trade and services limiting trade on the continent, during the 2010 tobacco marketing increased by 6.7 percent between the women and child rights activist season. And, over 450,000 jobs in the 1970s and the late 1990s, Africa's share Graca Machel said. African tobacco industry may be lost if tobacco fell from about five percent to around 1.5 countries are not making the production and trade are stopped. percent. The 48 least developed countries most of the continent's Minister of Agriculture and Co- (LDCs), most of them in Africa, are even impressive turnaround after the operatives, Eustarckio Kazonga, said more affected, losing about 80 percent of global recession, which has tobacco is a source of employment for their share of international trade in non- been faster than 80 percent of more than 450,000 people and is fuel commodities in the last 30 years and countries. contributing significantly to the national now account for only 0.5 percent of world Machel said systems treasury through tax revenue. trade. (TC, 21.10.10) imported from around the world Kazonga said the government is Tanzania Sees Gold Exports Boom by African businesses are worried over the anti-tobacco spirit that “collapsing”, and Africa should is mushrooming in the region in which Gold has again become the major most of the countries rely on tobacco for source of Tanzania's export earnings, with learn to do things its own way their economies. He said the World Health both production and world market prices and so build prosperity. Organisation has, through the Framework rising significantly during the last year, a Johannesburg Chamber of Convention on Tobacco Control, new report reveals. According to the Commerce CE Keith Brebnor embarked on developing guidelines for newest economic review by the Bank of said there is a need for more tobacco production by farmers, Tanzania, export revenues from the political will and logistical marketing, processing and tobacco use country's gold mining sector strongly improvements in order to through various articles of the convention. increased during 2009. facilitate efficient trading on the (ZDM, 17.10.10) In 2009-10, revenues from continent. Tanzania's gold exports amounted to Building Africa with BRICs Without making all these US$1,365mn, up from US$845mn in improvements, African The BRIC grouping (Brazil, Russia, 2008-09. The value of gold exports went businesses will continue to find India, and China) is the most powerful up by 61.5 percent, following a rise in emerging block of nations, the export volume as well as price in the it easier to do business with encapsulating about 15 percent of global world market. This means that gold Europe and the US instead of GDP, 25 percent of world output, and contributed with 43.5 percent to the their own continent. close to 50 percent of the world's total value of Tanzania's exports during (BD, 07.10.10) population. 2009. (AN, 11.10.10)

4 u Year 9, No. 4/2010 Tradequity Regional Round Up

Women's Role in Development As a landlocked country, depends according to the World Health Maureen Mwanawasa said the SADC on its neighbours, Kenya and Tanzania, Organisation. should take women's economic to provide it access to the sea and trade Malaria cases or hospital admissions participation as one of the keys to facilitation services, which include rail, and deaths have been cut by half in 11 sustainable development. She said this at road, sea freight, port, clearing and African countries over the past decade. a high-level policy meeting under the forwarding services. (TEA, 16.12.10) Outside Africa, in 32 of the 56 remaining theme “Why SADC Should Focus on malaria endemic countries, the gains have Informal Cross Border Trade Advancing Smuggling Ivorian Cocoa been even greater. Eight more countries Trade and Women's Empowerment in is due to pump its first have seen reductions in the number of Harare ”. commercial oil after the discovery of the cases of between 25 and 50 percent. The former first lady said this was one offshore Jubilee Field three years ago. A Many more people now have access to way of empowering women economically consortium, led by UK-based Tullow Oil, the best drug treatment artemisinin by ensuring that they have access to hopes to produce 55,000 barrels per day, combination therapies. (TH, 16.12.10) education and training and productive increasing to 120,000 barrels in six assets, including land credit and time months. Turkey Wants FTA with Region serving technology. She, however, Ghana is expected to earn To foster cooperation, the Turkish observed that women were exposed to US$400mn in the first year. The want FTA negotiations initiated and a sexual harassment and abuse at borders government is working to get an oil bill business council established to enhance due to corrupt practices when clearing passed and has forecasted that the oil will interaction of their business organisations. goods for purposes of paying customs boost Ghana's economic growth rate from The Turkish Deputy Prime Minister, duty and taxes. (TP, 08.11.10) five percent in 2010 to as much as 12 Bulent Arinc, called for Uganda's support percent in 2011. in the fast implementation of an FTA Tripartite Free Trade Area in 2011 Ghana already earns billions from between Turkey and the five EAC The three regional blocs in Eastern cocoa and gold. The Jubilee Field is countries of Kenya, Uganda, Tanzania, and Southern Africa (ESA) will launch the estimated to hold 1.5 billion barrels of Rwanda and Burundi, saying such an tripartite Free Trade Area (FTA) to deepen oil. A second offshore field was discovered agreement was the key to improving regional integration and address concerns in September that is believed to hold economic relations. of dual membership in 2011. The another 1.4 billion barrels. The fields are Turkey's growing interest in the East programme is expected to lead to faster some of the largest oil deposits found in African region was signified by the launch and deeper integration that facilitates trade recent years. (AR, 15.12.10) in 2010 of the Turkish Airlines direct both internally and globally. flights from Istanbul to Entebbe The tripartite FTA comprises Malaria Success in Africa international airport. Arinc said the parties COMESA, SADC and EAC. The Malaria is in retreat in many countries assessed improvement of cooperation in Minister of Finance and National of sub-Saharan Africa after a huge effort economy and trade and issues extending Planning, Situmbeko Musokotwane, said in the last two years to get bed nets and from energy to agriculture and from health in order to take advantage of the regional indoor spraying into areas where the to tourism. (EABW, 06.12.10) potential, there was need to move forward disease is endemic, but the gains are fragile, the regional agenda and enhance implementation of regional programmes at the national level. This will allow the Boosting Power Supply creation of a uniform and predictable he steady availability of www.caglecartoons.com environment for the private sector, which Telectricity is important to is the driver of the economy. enhance further growth and (ZDM, 18.11.10) development of any economy. Police Roadblocks in Kenya Electricity is the backbone of Roadblocks and cumbersome business economies and industries as well licensing procedures in Kenya and as an enabler of development. Tanzania have been cited as the greatest Currently, Zambia and many setbacks to trade in the East African region. other countries in the SADC are A survey by the United Nations faced with electricity deficit Conference on Trade and Development arising from increased economic activities in the region. (UNCTAD) says the two problems also One measure aimed at boosting the power supply in the region is the block trade in Uganda and urges for setting up of the high voltage direct current transmission link, also known as reforms to boost efficiency in doing Caprivi link Inter-connector, between Zambia and . The power line business. will supplement the existing power transfer route in the central corridor, Uganda is Kenya's single-largest which goes through Zimbabwe. It will now facilitate exchanges of power export destination, taking up huge between ZESCO and Nampower of Namibia for trade purposes as well as consignments of key items such as steel. during emergencies where there are deficits on either side. (ZDM, 18.11.10)

Tradequity Year 9, No. 4/2010 u 5 Environment/Consumer Issues

Somali Piracy Raises Import Cost distributed. He said sheds have, so far, been condom testing, petroleum, timber Consumers of imported goods are constructed in Chambishi, Kapiri Mposhi, technology, textiles and paint testing. headed for a festive season marked by high Petauke and Mbala districts. He said phase (ZDM, 18.11.10) prices as Somali gangs, who have been two of the project will require government Stanchart Rolls Mobile Payment attacking ships in the Indian Ocean, shift engaging cooperating partners. their activities close to the East African (ZDM, 13.11.10) Standard Chartered Bank (Stanchart) coastline away from the heavily militarised Zambia has started rolling out utility OneStop Business Registry high seas a new report indicates. payment bills on its mobile banking The report from the office of Kenya's The Private Sector Development system with Nkana Water and Sewerage Prime Minister says there is evidence that Reform Programme (PSDRP) says the Company and Lusaka Water and Sewerage the pirates have concentrated their one-stop registration centre is expected to Company. The roll-out will enable the activities close to, or within, the Kenyan to reduce the cost of doing business in bank's customers to settle their utility bills territory, away from the Gulf of Aden Zambia. The registration centre is meant with the two utility firms through their mobile phones. transport corridor that is now closely to enable faster, simpler registration of a The service will be available 24 hours monitored by the European Union (EU) company and support other services for a day and throughout the week. Stanchart NATO, the US and Chinese warships. business at one-stop shop contact point. Managing Director, Mizinga Melu, said Data from the office of the Prime And, the World Bank Group, under the the roll-out will enable the bank to Minister shows that, this year alone, nine International Finance Corporation, has significantly enhance its service to pirate attacks have occurred within committed US$500,000 to the customers in the country. “We Kenya's Exclusive Economic Zone, which implementation of these reforms. PSDRP co-ordinator, Kayula Siame, differentiate our brand in Africa through is 360 kilometres from the coastline, our ability to leverage on our international said the project will initially be piloted in compared to zero incidents last year. expertise and product capabilities to (TC, 08.12.10) Lusaka in the central business district and introduce innovative services into our then spread to regional offices to Africa markets,” she said. (ZDM, 18.11.10) State Secures Additional Storage accommodate those in urban and rural The Zambian government has areas to make business registration quicker Drugs Strain China-Ghana Ties secured an additional 100,000 metric and less costly. (ZDM, 01.10.10) With a ready market, especially among tonnes of storage space for maize and spent the illiterate, Chinese medicines are US$11mn for the construction of sheds Metrology Laboratory to ZABS making it big in Ghana. However, a in some parts of the country. The EU has handed over a US$42bn lingering grouse in Africa has been that And, the government is in talks with testing and metrology laboratory to the China is taking advantage of the booming cooperating partners to help it secure Zambia Bureau of Standards (ZABS) economic ties to flood the market with US$50mn required for construction of which is expected to help check the quality sub-standard goods and its drugs are now sheds countrywide. Minister of of imported and exported products. coming under close scrutiny. Agriculture and Co-operatives, Eustarckio The laboratory will help the country Ghana's Food and Drug Board is Kazonga, said the capacity to store maize export quality products to America and currently on a crusade to wipe out suspect was inadequate after the country recorded European markets. Mutati said the EU drugs from the West African country's a bumper harvest. He said more space was funding to ZABS was provided under a market and this has led to the arrest of sourced through the use of concrete slabs five-year Capacity Building for the Private some Chinese businessmen said to be covered with tarpaulins and renting Sector Development project which comes behind the bustling trade. Bilateral private sheds. to an end in December 2010. relations between the two countries are at Kazonga said a total of 2,522 metric ZABS's new equipment has the a high, with the Chinese government tonnes storage is required for securing the capacity to test standards, microbiology, pouring billions of dollars into Ghana's crop and this has been acquired and packaging, food and agriculture testing, economy. (AR, 13.12.10)

Climate Change Conference Vital he Minister of Tourism, Environment and Natural Resources, TCatherine Namugala, says the climate change conference is crucial to restoring global confidence in the process and delivering tangible outcomes that will help save the planet. She said there is need for the conference to deliver a legally binding outcome to effectively address the challenges of climate change. Outlining Zambia's expectations from the summit, Namugala said Zambia strongly feels that adaptation has not received sufficient attention in global efforts to address climate change. She said, it was clear that climate change impacts were derailing the attainment of MDGs which are important for economic development. (ZDA, 13.11.10)

6 u Year 9, No. 4/2010 Tradequity Special Article Africa's Most Valuable Assets – Richard Branson*

visit Africa often, and it is receivership. Today, the business has I apparent that a “yes, we can” grown to 92 clubs across the attitude is spreading across the www.salmonellablog.com country; it has half a million continent, as awareness of its customers and is planning to business and investment expand to more than 100 clubs in opportunities reaches around the 2011. globe. In the meantime, across the border, Africans have much to be proud of, the people of Zimbabwe need more including some recent major international investment and economic successes. In September, expertise to help them revitalize Wal-Mart made an offer to buy the their country, which has been South African retailer Massmart for suffering under years of dictatorship US$4.2bn. And this summer's In September 2010, Wal-Mart made and disastrous economic policies. In FIFA World Cup generated more an offer to buy the South African September, Virgin Unite, together than US$3bn in revenue for South with Humanity United and the Africa, the host country. retailer Massmart for US$4.2bn Nduna Foundation, launched Enterprise Zimbabwe to help Still, there is much to be done. Zimbabweans attract and foster investments from philanthropic and commercial donors. This Analysts and business leaders often focus on mineral resources organization will target small businesses and social initiatives in when considering prospects for Africa's future the continent is key areas such as health, small-scale agriculture and education. the source of much of the world's platinum, diamonds and gold. But I believe Africa's most valuable assets are its wonderful An example of one of our early projects: in partnership with people, particularly its entrepreneurs. American and Australian entrepreneurs, Enterprise Zimbabwe is investing in a growers' association that represents 2,000 farmers Millions of men and women are carefully building small near Harare. We hope to assist a small number of these farmers to businesses suited to local markets, working off the radar in regions revitalize their operations over the next six months. We will then untouched by big business. They are the real diamonds. These assess the impact of this pilot project, and pay attention to what entrepreneurs are agents of change, taking risks that may someday is needed on the ground. generate jobs and build communities. If Zimbabwe is going to recover, it's critical for the global Yet, many lack the financial resources and support networks community of business leaders and philanthropists to come needed to help them scale up their businesses. Some have such together to support the people who will rebuild its economy. In limited access to teachers and mentors that simple training on 2011, Enterprise Zimbabwe will help to arrange a number of pricing, marketing and product design can have a massive impact. trips to the country, so that entrepreneurs and leaders of charitable With the right support, their entrepreneurial efforts can produce foundations can meet Zimbabweans. We hope to help these even more opportunities, leading to the prosperous dynamic of leaders to understand how they can help, and to match them progressive capitalism. with emerging businesses and social development opportunities.

That's why Virgin Unite, our non-profit foundation, established Every time I visit the continent, I am impressed by what daring the Branson School of Entrepreneurship in Johannesburg to African businessmen and women are accomplishing in the face support and celebrate young South Africans as they launch new of tough social and economic challenges. I am certain that Africa ventures. We help them expand their businesses by connecting will someday occupy a more prominent place on the world stage. them with entrepreneurs from South Africa and around the US President Barack Obama summed it up well last year in his world people who can provide mentorship, help them gain famous speech to the Ghanaian parliament: Africa is not a world access to markets and raise capital. apart, it is a “fundamental part of our interconnected world”.

We're also directly investing in some African businesses, from While we often hear what's wrong in Africa, I would like to hear small start-ups to larger companies. Indeed, one of our best what Africans are doing right. Inspiration comes from leaders investments is Virgin Active in South Africa. It was recommended who care about communities. Let's find those entrepreneurs who to me by Nelson Mandela almost 10 years ago when he asked are making a meaningful impact. me to rescue a chain of health clubs that had gone into

* Founder of the Virgin Group. Abridged from an article that appeared in Livemint, on November 01, 2010.

Tradequity Year 9, No. 4/2010 u 7 PUBLICATIONS ReguLetter he October-December 2010 issue of newsletter, 'ReguLetter' encapsulates 'Call for World TCompetition Day' in its cover story, which state that cartels in the air cargo industry should be of concern to all stakeholders as they have a serious negative impact on efforts towards economic development and poverty reduction in developing countries. What is, therefore, apparent that competition authorities in developing countries also need to be in a position to join in and prosecute such international cartels once they are discovered. The lead story is followed by regular sections focussing on news, views and policies related to corporate restructuring, regulations of utilities and finances, corporate governance etc. of different countries in particular, the developing nations. Besides, annual roundup of competition laws, mergers & acquisitions, corporate issues etc. is another highlight of the edition. A special article by Frederic Jenny and David Lewis says that had a regional African competition law covering all African countries existed, the market-sharing agreement between Castel and SABMiller could have been prohibited and vibrant competition could have been preserved. About a Competition Law looks at the competition scenario in China, the institutions of competition law in the country and the scope of improvement in the law. This newsletter can be accessed at: http://www.cuts-ccier.org/reguletter.htm

FORTHCOMING

Agriculture in Development of Select African Countries: Linkages with Trade, Productivity, Livelihood and Food Security he publication undertakes a systematic study of the current aims and objectives of the key T economic and agricultural policies in the five African countries. It brings to light the diverging concerns between the landlocked countries (Zambia, Uganda and Malawi) and the non-landlocked countries (Kenya and Tanzania) in their pursuit of achieving their targeted development through trade. It encapsulates the social, political, economic as well as cultural factors present in the countries that drive the importance of linking trade and agriculture to rural livelihoods and food security.

How Can Agriculture and Trade Lead to Livelihoods, Food Security and Development? Evidence from Eastern and Southern Africa he monograph summarises the analysis around ten themes that range from the importance of Tagriculture to the role of governments, donors and CSOs. The themes also include international and regional (including informal) trade, education and capacity building needs, and multi-stakeholder consultations and coordination. This presentation brings out all the relevant issues and their interlinkages. It also offers comprehensive and yet concrete suggestions for action by all concerned. This holistic approach and inter-weaving of crisp analysis and specific recommendations should be particularly useful for policy makers.

Sources AR: Africa Review; AN: Afrol News; BD: Business Daily; EABW: East African Business Weekly; FT: Financial Times; MT: Muvi Television; RW: Rwanda Times; TC: The Citizen TH: The Hindu; TN: The Nation; TP: The Post; ZDA: Zambia Development Agency; ZDM: Zambia Daily Mail

Tradequity newsletter: Published and composed by CUTS Africa Resource Centre, Plot no 6078/A Northmead Area, Great East Road PO Box 37113, Lusaka, Zambia, Ph: +260.1.224992, Fx: +260.1.225220, E-mail: [email protected], and Nairobi Resource Centre, Yaya Court-2nd Floor, No.5, Ring Road Kilimani off Argwings Kodhek Road, PO Box 8188, 00200, Nairobi, Kenya, Ph: +254.20.3862149, 3862150, 20.2329112, Fax: +254.20.3862149, Email: [email protected]. Head office: D-217, Bhaskar Marg, Bani Park, Jaipur 302016, India, Ph: 91.141.2282821, Fx: 91.141.2282485, E-mail: [email protected], Web Site: www.cuts-international.org The news/stories in this Newsletter are compressed from several newspapers. The sources given are to be used as a reference for further information and do not indicate the literal transcript of a particular news/story.