News
Cote D’Ivoire rolls out the cables
Public investment in the telecommunication sector could see the completion of an extensive (6,700 km) fibre optic network over the next few years and help fulfill the government’s aim of raising internet access to around 20-30% of the population, up from the current penetration rate of about 2%. The first phase of the expansion (a 1,400 km cable from San Pedro in the south west to Ferkessedougou in the central north) began in 2012 and is scheduled for completion by the end of this year. The second phase (a 650 km cable from Grand-Bassam and...
read moreGabon confirms new oil and gas potential
New deep-water oil and gas systems could provide Gabon with a timely boost and help offset declining output from large, mature fields over the coming decade. Exploration in 2013 has resulted in discovery of pre-salt oil and gas systems and raised expectations that the country has substantial pre-salt potential. The government is determined to adopt a more assertive role in extracting value from its natural resources. Over the past few years, it has imposed tougher terms on foreign oil and gas companies, carried out investment audits and...
read moreTanzania dips into telecoms
Telecommunications is one of the fastest growing sectors in Tanzania and looks set to receive substantial further investment over the next few years. The country’s mobile network operators have aired plans to invest in network expansion, as well as mobile data and cash transfer services. However, the major players in the sector are concerned about the government’s attempts to cash in on the rapid growth of telecommunications through the introduction of a SIM card tax of 1,000 shillings per month and an excise duty of 0.15% on money transfers,...
read moreGabon tries to diversify
Gabon has set out a range of administrative and financial incentives to attract foreign firms into priority growth sectors such as agriculture, agro-processing, manufacturing, mining, timber, telecommunications and tourism. This is part of the government’s drive to diversify the economy away from oil sector, where new discoveries have been largely absent over the past decade and production has remained anchored at around 250,000 bpd since 2002. Other planned business environment improvements which aim to increase the attractiveness of the...
read moreBotswana’s diamonds aren’t forever
Botswana has relied upon diamond mining for economic growth and political stability for many years. Diamond mining currently accounts for over one-third of GDP, the vast majority of export earnings, and about half of the government’s revenues. However, the drive for greater economic diversification is gathering pace as diamond production is expected to levels off over the next decade and reserves are set to run out in around 20 years’ time. As diamond mining runs its course, the sustainability of the diamond sector in Botswana will instead...
read moreZambia cuts its losses
Zambia has introduced a number of controls on money flowing across its borders in an attempt to reduce tax losses. Currently, the Zambian government estimates that it loses around US$ 2 billion in taxes every year as a result of tax avoidance and transfer pricing by foreign firms. The government has taken tentative steps to reduce these losses by implementing stricter monitoring of financial flows and requiring greater justification by firms for their overseas financial transfers. The government has a difficult balancing act to perform as it...
read moreTanzania finds more gas
Untapped gas fields should present Tanzania with an import new source of income, particularly as recent discoveries and new possibilities in off-shore gas fields could double its proven reserves to around 100 trillion cubic feet by 2015. New discoveries and vast potential reserves are expected to prompt substantial investment in gas exploration, extraction and LNG refining capacity over the next few years, as well as the supporting infrastructure which should benefit the wider economy. The economy is expanding at a rapid pace and the...
read moreSouth Africa invests
Many foreign firms view South Africa as a springboard to the wider African continent, in the hope that they can establish a foothold and tap into large and rapidly expanding sectors such as banking, manufacturing, retailing, telecoms, transport and utilities. South Africa itself is amongst the largest investors in the African continent and the main driver behind intra-African investment in recent years. The country has clearly benefitted from its regional experience and expertise, whilst many firms have simply outgrown the domestic market and...
read moreCote D’Ivoire back from the brink
The security situation has improved markedly in Cote D’Ivoire since the political crisis in 2010, which caused the economy to slump into recession in 2011. Greater political stability and an improved security situation have been welcomed by the African Development Bank which is on track to return its regional headquarters to Abidjan in 2014. The government is hopeful that it can maintain stability and reassert the country as a strategic staging posts for firms looking to tap into the large Economic Community of West African States...
read moreSudanese gold rush
Foreign firms are competing for access to gold deposits in war torn Sudan. Mining companies are hopeful that Sudan holds a large amount of untapped gold reserves, while the government is desperate to find new revenue streams following the secession of South Sudan in 2011, which led to the loss of around three quarters of its oil reserves and a fifth of its population. Gold exports reached US$2.2bn last year and the government recently issued a whole series of new exploration licences. Firms from Asia, the Arabian Gulf and Russia are willing...
read more