News
Hydropower mega projects prove elusive
Accessing adequate and reliable power supplies in DR Congo is problematic and costly for firms operating in the country. The government and international development partners have dedicated large amounts of time, effort and finance on hydropower mega projects but these projects have been subject to repeated delays and setbacks, thwarting attempts to increase domestic electricity supplies. For instance, the Inga I and Inga II dams were completed some time ago but continue to operate well below full capacity as a result of poor maintenance and...
read morePost-Ebola recovery plans take shape
Sierra Leone has suffered heavily in terms of loss of life and lost economic activity since the deadly Ebola virus took hold in early 2014. However, the country has not recorded any new cases of Ebola since mid-September this year and expectations are high the outbreak is finally coming under control. Sierra Leone could be declared Ebola free if no new cases emerge through to mid-November. Attention will soon shift to the post-Ebola environment and implementation of the recovery plans already presented by the governments of Guinea, Liberia...
read moreMining sectors take a hit
The mining sectors in Zambia and DR Congo have taken a severe hit following the decision of the international mining company Glencore to suspend its mining operations at its Mopani Copper Mines venture in Zambia and Katanga Mining venture in DR Congo for 18 months starting September 2015. Miners in both countries face regulatory uncertainty, high production costs and prices which have fallen considerably over the past twelve months in response to abundant global supplies and weakening demand. Glencore is a major player in these mining sector...
read moreZambia faces uncertain times
The Zambian economy has been expanding at a rapid pace in recent years, but is facing uncertain times in 2015. Global copper prices fell sharply in December and January, and in March were trading around 20% below the levels achieved a year earlier. Copper exports are by far the single largest contributor to export earnings in Zambia (typically accounting for around 70% of total merchandise exports) and the fall in copper prices is undermining export revenues, eroding foreign exchange reserves, increasing the current account and fiscal...
read moreGabon expands mobile services
Gabon has a mobile penetration rate of around 190% (at end-2014), which is one of the highest in sub-Saharan Africa. The country’s telecommunications sector could receive a boost over the next few years from the roll-out of more extensive 3G and 4G mobile networks. Service providers have invested heavily to expand their infrastructure across Libreville and Port Gentil, which is likely to intensify competition between the three service providers (Zain of Bharti Airtel, Libertis of Gabon Telecom and Moov of Maroc Telecom). In addition to this,...
read moreAngola suffers from oil price slump
The slump in global oil prices since mid-2014 is taking its toll on Africa’s oil exporters. For instance, Angola has seen its realised and projected export earnings plummet and has been forced to revise down its fiscal revenue and spending plans by around US$14bn in its Budget 2015 proposals compared with estimates tabled in late 2014. Meanwhile, the state-owned oil company (Sonangol) published its preliminary results for 2014 at end-February and revealed its net profits had fallen to just US$710m in 2014, down 77% on the previous year. The...
read moreEthiopia goes for mobile money
Ethiopia successfully piloted its first mobile money-transfer service (M-BIRR) in 2013 and 2014. It now has its sights firmly set on rolling out mobile money networks in the hope of reducing transaction costs and increasing financial inclusion throughout the country. Foreign firms are providing services to support the development of mobile banking in Ethiopia, which includes the wider roll-out of M-BIRR and introduction of competing services (such as helloCash). Also, the state-owned Commercial Bank of Ethiopia is considering its own mobile...
read moreCameroon has border problems
Nigeria and Cameroon have signed a series of agreements to strengthen trade and commerce between the two countries. However, a section of Cameroon’s north-western border with Nigeria was closed by the Nigerian authorities in February in an attempt to block the free passage of the militant Islamist group Boko Haram. The group is waging a campaign of violence in north eastern Nigeria and has reportedly used areas in north-western Cameroon to launch attacks and escape military operations by the Nigerian armed forces. The border closure has...
read moreDRC fails to decentralise
The current constitution of the Democratic Republic of the Congo (DRC) came into effect in 2006 and set out a plan for decentralisation, which included the fragmentation of the existing 11 provinces at the time into 26 new provinces by the end of 2009. In addition to the restructuring of local government, the constitution made provisions for each province to retain 40% of its internally produced revenues. However, more than seven years after the constitution was promulgated and four years after the initial deadline for decentralisation was...
read moreZambian copper production continues to rise
Zambia is by far Africa’s largest copper producer and has benefited greatly from rising output and historically high global copper prices over the past five years. According to the Zambia Development Agency (ZDA), copper production increased from 570,000 tonnes in 2008 to over 800,000 tonnes in 2012. Most recently, copper production rose by a further 20% in 2013 as new mining projects financed by international mining companies came on line. The ZDA estimates that the country’s mining sector, which is dominated by copper production, has...
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