Major International Business Headlines Brief::: 28 November 2024
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Major International Business Headlines Brief::: 28 November 2024
<mailto:info at bulls.co.zw>
ü East Africa to Benefit As SeaLead Revamps Asia-India Trade Route
ü Africa: Biden's Angola Trip 'Recognises How U.S. Prosperity is Tied to African Partners'
ü Malawi: Chakwera Unveils Bold Measures to Rescue Malawians From Fuel Shortages, Violence, and Hunger
ü Angola: Over 300 Diamond Stones Seized in Chitato Municipality
ü Kenya Drops On Travel Index Ranking With New Visa Requirements
ü Nigerians Migrate to the UK and U.S. in Search of the Good Life - but This Isn't What They Find
ü Nigeria Records 79 Percent Reduction in Crude Oil Theft, 15 Percent Decline in Revenue - Neiti
ü East Africa: China State Bank Shouldn't Back East African Crude Oil Pipeline
ü Africa's Foreign Policy Must Focus On Continental Needs
ü Nigeria: Major Marketers Shun Importation, Source 148m Litres of Petrol From Dangote Refinery
ü Liberia's Offshore Potential Set to Fuel Africa's Deepwater Energy Sector
ü Nigerian Govt Spends N8.8 Billion to Repair Vandalised Power Towers - Official
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East Africa to Benefit As SeaLead Revamps Asia-India Trade Route
SeaLead, a global shipping company, is set to enhance trade links between Asia, India, and East Africa with the launch of its upgraded ANIDEA service.
The maiden voyage of the Zhong Gu Zhu Hai will depart from Shanghai, inaugurating a route that promises to cut transit times and improve reliability for shippers.
The ANIDEA service replaces the existing IDEA service, adding stops at key ports in China, India, and East Africa.
The updated route offers a direct connection between the Far East, West India, and East Africa, integrating cargo flows from East and South Asia to East Africa.
The move highlights the growing demand for faster and more comprehensive logistics solutions in the region.
The revamped service is part of SeaLead's strategy to strengthen its presence along critical global trade corridors.
"The ANIDEA service reflects our commitment to enhancing shipping connectivity and supporting economic growth across these vital regions," said Suleyman Avci, Global Chief Executive Officer at SeaLead."By providing a direct route, we're addressing the need for faster and more efficient trade options."
SeaLead's Global Director of Trade Management, Doreen Yeo, highlighted the service's potential to simplify logistics for businesses.
"ANIDEA's direct coverage will significantly reduce transit times and offer a dependable solution tailored to the needs of our customers in East Africa and beyond," she said.
The announcement comes amid increasing competition in the shipping industry, as operators seek to capitalise on rising trade volumes between Asia and Africa.
Business Day Africa.
Africa: Biden's Angola Trip 'Recognises How U.S. Prosperity is Tied to African Partners'
Monrovia — President Joe Biden's visit to Angola is intended to amplify how U.S. leadership impacted trade, investment, and Infrastructure in the region, and highlight the "remarkable evolution" of the U.S.-Angola relationship, senior White House officials said in an online briefing. Scheduled from December 2 to December 4, 2024, it will mark the outgoing president's first African visit.
Biden's Special Assistant and Senior Director for African Affairs Frances Brown said the visit would be a fulfillment of the president's commitment to African leaders but the trip also "fits into the Biden administration's approach to Africa", and how the U.S. champions African leadership across multiple fora, including at the UN, G20, and other international financial institutions.
Brown said while Biden may be making his first trip to the region, "more than 20 Cabinet members and leaders of U.S. departments and agencies" have visited in the last two years. The "prosperity of the U.S. is tied to that of our African partners, and this trip is a recognition of that," he said.
During the briefing, Brown highlighted the "strategic" nature of the U.S. relations with Angola while noting that U.S.-Angola trade totaled nearly $2 billion, making the southern African country "our fourth-largest trade partner in Sub-Saharan Africa". Brown said President Biden's discussions with his Angola counterpart Joao Lourenco will include infrastructure, climate, and regional security.
Biden will also focus on one of his "signature initiatives", the investment of the Lobito Corridor, Brown said - a reference to the railway project stretching from the port of Lobito in Angola to the Democratic Republic of Congo and Zambia. The G7 Partnership for Global Infrastructure and Investment, supported by the U.S. and the European Union, launched the project in 2023.
Biden is expected to make major pronouncements during his visit, his aides said. One on them will be on Lobito, "since we've already mobilized billions of dollars ... to date".
The U.S. Acting Special Coordinator on Infrastructure, Helaina Matza, who also spoke at the online briefing, said when completed, the corridor will not only help close that infrastructure gap in the three countries "but provide sustainable solutions that drive economic growth, really enhance regional connectivity, and promote prosperity".
The long-awaited Africa trip by the U.S. President, previously scheduled for October and the first by a U.S. president since President Barack Obama comes on the heels of a scathing condemnation of Angola's human rights records by Amnesty International. In its latest report, Amnesty said authorities in the country were killing, injuring, or traumatizing dozens of people during protests between November 2020 and June 2023.
Malawi: Chakwera Unveils Bold Measures to Rescue Malawians From Fuel Shortages, Violence, and Hunger
On the night of November 27, 2024, President Lazarus Chakwera took to the podium in the capital, delivering a sweeping national address that laid bare the struggles Malawi faces while outlining bold measures to combat fuel shortages, political violence, food insecurity, and voter registration challenges. With a mix of humility and resolve, the President presented a roadmap designed to guide the country through these turbulent times.
Tackling Fuel Shortages: A New Direction
For weeks, Malawi has endured crippling fuel shortages that brought the nation's economy and daily life to a standstill. The President acknowledged the frustration of citizens who queued for hours at petrol stations, attributing the crisis to a stark reality: the nation's monthly fuel demand of $50 million exceeds its capacity to generate foreign exchange.
To address this, Chakwera announced the imminent transition from the Open Tender System--a market-driven mechanism for importing fuel--to Government-to-Government (G-to-G) agreements. This strategic pivot aims to secure stable and affordable fuel supplies under more favorable payment terms.
Chakwera has already constituted a high-level Coordinating Committee, comprising key ministers and technocrats, to expedite this transition. "We need a system that guarantees reliable access to fuel," the President declared, underscoring the urgency of the issue. As a first step, he will travel to Abu Dhabi next week to negotiate agreements with the United Arab Emirates, marking what could be a turning point in Malawi's energy security.
A United Front Against Political Violence
The President also addressed a concerning rise in political violence. >From the tragic killing of a party member in Blantyre to reports of intimidation in Lilongwe, these incidents threaten to tarnish Malawi's reputation as a bastion of democracy in Africa.
"Political violence has no place in our society," Chakwera declared, aligning himself with former Presidents Bakili Muluzi, Joyce Banda, and Arthur Peter Mutharika in condemning the attacks. The Malawi Police Service has been directed to investigate and prosecute all perpetrators, signaling a zero-tolerance policy toward those seeking to destabilize the nation.
Confronting the Shadow of Hunger
The specter of hunger looms large over Malawi, with 5.7 million citizens facing food insecurity due to a devastating drought that has crippled maize production. Chakwera detailed a herculean response effort: the development of a National El-Nino Response Plan, international lobbying efforts, and coordination with global partners to secure food aid.
Thanks to these efforts, significant support has been mobilized, including $92.6 million from the World Bank, $23 million from the African Development Bank, and food supplies from countries like Ukraine and India. Yet, a shortfall of 89 billion Kwacha persists, leaving 1.2 million Malawians still waiting for relief.
Chakwera acknowledged the gaps in distribution and promised better coordination among the Ministries of Finance, Agriculture, and Local Government. "Help is on the way," he reassured the affected families, urging patience as the government ramps up its efforts.
To ensure long-term fiscal stability, the President announced upcoming austerity measures to be presented by the Finance Minister, signaling a commitment to balancing immediate humanitarian needs with economic discipline.
Championing Voter Registration Amid Challenges
With the 2025 elections approaching, voter registration is a pressing issue. Chakwera encouraged Malawians to exercise their constitutional right, addressing reports of low turnout in food-insecure areas and the impact of political rhetoric discouraging registration.
"Voting is your right," he said emphatically, urging citizens to register despite challenges. While acknowledging grievances about the registration process, he called for peaceful resolutions through legal channels rather than abstention.
Hope and Resilience
Chakwera's address struck a balance between realism and optimism. He candidly admitted the scale of the challenges but rallied the nation to embrace hope and unity. His decisive measures--whether shifting fuel procurement strategies, mobilizing food aid, or standing firm against political violence--reflect a leader committed to steering Malawi through stormy seas.
As Malawians digest the President's words, the road ahead remains fraught with uncertainty. Yet, Chakwera's bold proposals and impassioned plea for cooperation signal a leader who understands that the strength of a nation lies not just in its policies but in the resolve of its people to rise above adversity.
The question now is whether these measures will be enough to ignite the change Malawi so desperately needs--or if greater challenges await. For now, the President has planted seeds of hope, leaving Malawians and the world watching closely to see them bear fruit.
Nyasa Times.
Angola: Over 300 Diamond Stones Seized in Chitato Municipality
Dundo — A total of 342 diamond stones of various carats have been seized in Chitato municipality, Lunda-Norte province, by the Criminal Investigation Service (SIC), in a micro-operation, in coordination with the National Police.
According to the SIC spokesman, Graciano Lumanhe, the diamonds were in the possession of three Angolan citizens, aged between 33 and 37, inside a residence where the citizens were illegally buying and selling diamonds.
Graciano Lumanhe added that during the operation, a total of 150,000 kwanzas and other items were also seized.
The SIC officer stressed that the operation aimed to combat illegal diamond mining and immigration, human and organ trafficking and fuel smuggling, among other crimes.HD/DAN/AMP ANGOP.
Kenya Drops On Travel Index Ranking With New Visa Requirements
Nairobi — A Kenyan government requirement that foreigners register online three days before traveling to the country has made the East African nation among the most difficult countries to visit in Africa, according to an index that ranks countries for ease of travel.
Kenya's introduction of new visa policies earlier this year has made the country less accessible, according to the 2024 Africa Visa Openness Index.
The East African country slid 17 places on the index, and now ranks 46 out of 54 African countries.
The index, compiled by the African Development Bank and African Union Commission, tracks visa openness and the ease of visiting African countries.
Kenya recently launched its Electronic Travel Authorization program. The cost of a visa dropped from $50 to $30, but prospective visitors have to register for the visa online, and approval takes three days.
That is causing problems for people who are used to traveling with little advance planning, said Esther Mutwiri, an immigration consultant based in Kenya.
"Whenever there is an application to be made, people who don't like changes ... will feel a little bit of a challenge," Mutwiri said. "And this is expected; there is a little challenge. I always advise my clients, for example, if you know you are flying in next week, just apply early enough."
Before the introduction of the online visa application, citizens of many African countries could travel to Kenya, get a visa upon entry, and get their passport stamped.
Now, they have to plan ahead, which is made more challenging when the registration system goes down or gets backed up. Sometimes users have to wait for hours to complete the registration process.
Some users physically visit an immigration office after turning in their application, just to make sure they get their visa.
Professor Chacha Nyaigotti Chacha, an expert in diplomacy and international relations, said Kenya must improve ease of travel to benefit from visitors.
"The openness status when you allow people to get your visa in an easy way means that you can receive more guests and visitors. And the more visitors you receive, the more business people do with the expenditure of various services that are provided," Chacha said. "So, it's important as a country we strive to always ensure that guests and visitors are welcomed and to see that our visa application process should be seamless."
Mutwiri said travelers should apply for visas early to avoid challenges and ensure a smooth process.
"We should embrace change. Nowadays, it's all about going digital, and I think that's what our government is trying to do. So, the people who should do something are the applicants. If I know I am traveling to a country that requires a visa, then I should apply for it beforehand. That way, if most of the travelers do that, they are going to experience less challenges when they come in," Mutwiri said.
Despite the difficulties with the visa system, the Kenya Tourism Board said the country welcomed more than 1 million visitors in the first six months of this year, a 21% increase from 2023.
Nnenna Lily Nwabufo, vice president of regional development, integration, and business delivery at the African Development Bank Group, said 39 African countries have improved their scores on the visa index.
Benin, Gambia, Rwanda and Seychelles are among the countries ranked high for easy travel within Africa. Sudan, Libya, Equatorial Guinea and Eritrea are ranked the lowest.
VOA.
Nigerians Migrate to the UK and U.S. in Search of the Good Life - but This Isn't What They Find
Many Nigerians are already familiar with the idea of "japa", which means to flee from an unpleasant situation.
That many young people have left the country is a cliché; that many more people desperately want to leave is not an overstatement.
A research that utilised the 2017 Afrobarometer Survey reported that the emigration intention rate was 35.3%. A 2024 study found that, among healthcare workers, the rate was 80.1%.
According to the two studies, the preferred destination was the west - the United States (US), the United Kingdom (UK) and Canada. However, among the general population in Nigeria, there is a preference for the Middle East and other countries in Africa, perhaps for socio-cultural reasons.
But many receiving countries are tightening their borders and making immigration requirements more stringent than before, especially against migrants from African countries.
The recent anti-immigrant and nationalist protests across Europe and the attention that migration garnered in the 2024 US elections show how topical and political migration is.
It hasn't deterred would-be migrants. But is life that easy in the west?
I am a sociologist and my doctoral work investigated the integration and experiences of Nigerian migrants in the US and the UK.
My recent research investigated whether their expectations of migration matched the reality.
To get a feel for this, I got data from qualitative interviews and from reactions and comments to two Instagram blog posts.
I do not, in any way, discourage migration. But it's important for intending migrants to be aware of what life could really be like in the countries they're going to. The research could also help governments of the host countries to understand migrants' expectations and how to manage them.
Data sources
First, I conducted 31 interviews with Nigerian migrants in the US (17) and the UK (14) between May and August 2022. The average duration of migrants' stay had been 5.4 years, ranging from one to 21 years.
I asked them to explain their pre-migration expectations of life in the host country and the reality they met there.
I also used data from an Instagram blog based in the UK. On 22 April 2022, the blogger made a post in which she asked her followers, who are migrants in the UK, to share the same kinds of information about their expectations and experiences.
Employment and finance
Based on what they saw in foreign movies and on social media before emigrating, many young Nigerians thought that they were going to make money quickly and easily. They expected to continue their original career in the host country, and to advance.
The reality was different. For example, one male migrant in the US said:
You know, we feel everyone in the US is hitting it big. But when I got here, I realised in America, you are paid for your time. Time is money ... It's not easy, you have to work hard ... nothing falls on your laps here, like you have to earn everything.
Another said:
I thought I was coming to paradise ... It was a different ball game ... you get to work very hard.
One reason migrants had to work hard in the host country was the high cost of living: paying rent monthly, the high cost of electricity and the fact that they paid for water. Many people don't pay for water in Nigeria.
An Instagram user remarked sarcastically:
One might even pay for the air we breathe in and out over here.
Many Nigerian professionals have to do jobs overseas that they would never do in Nigeria. It is not that simple for a Nigerian architect, engineer, lecturer, medical professional or lawyer to continue the same profession upon migration.
Healthcare at a cost of time or money
Twenty-one interview participants reported that the reality was worse than the expectation. Nigerians expected that they would be able to get healthcare easily and at low or no cost. About 68% of my research respondents and some respondents on the Instagram post said they found it was easier to access medical doctors in Nigeria than in the UK.
>From the two data sources, some migrants in both the UK and the US were disappointed with the healthcare system in their host country. However, the experiences varied between the two countries. Those in the UK did not expect to experience long waiting times, where public healthcare is almost free.
Those in the US lamented the financial cost of healthcare.
Aesthetics and social life
Many Nigerians were deceived by the attractive images they saw in foreign movies and the pictures of families and friends they saw on social media.
In both countries, there are places that look like Ajegunle - a slum in Lagos - and plush areas. But they'd only seen the better areas in movies and on social media.
Some Nigerian migrants missed the owambe - a Yoruba word for extravagant parties that are a central part of Nigerian culture. They hadn't expected to live a regimented and lonely life in the US and the UK. Some participants lamented how boring and individualistic life was in these countries. Some of them spent Christmas indoors in solitude or at work. In Nigeria, they would have hung out with family and friends.
Some complained about the unfriendly attitudes of the locals. A typical example is an Instagram user in the UK who said:
Neighbours will even welcome you with 'tell your kids to keep their voices down else I alert the police and social services.'
Staying despite disappointment
Despite their disappointment, none of the respondents who reported differences between expectation and reality showed an interest in returning home to Nigeria. They mostly hinged their decision on the misgovernance of the Nigerian state.
Some cited the unpredictability of the Nigerian system, including the sudden removal of petrol subsidies, leading to higher petrol prices, and frequent power outages.
Other reasons include the fact that in the west their rights are guaranteed and they cannot be fired indiscriminately by an authoritarian boss. They are sure of when their salaries will be paid. And if they are students, they know their date of graduation from the first day they start a university programme.
They are likely to get to work or school safely and return home in sound health. Their wages will be adjusted for inflation.
In summary, they can plan for the future.
Tunde A. Alabi, Lecturer in Sociology, University of Lagos, University of Lagos
This article is republished from The Conversation Africa under a Creative Commons license. Read the original article.
Nigeria Records 79 Percent Reduction in Crude Oil Theft, 15 Percent Decline in Revenue - Neiti
Nigeria recorded 79 per cent reduction in crude oil theft, 15% decline in oil and gas revenue as well as 8% decrease in production volumes between 2022 and 2023 with the reserve-replacement ratio steadily declining, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.
NEITI stated this Tuesday in Abuja when it launched a research on the impacts of energy transition on Nigeria's economy.
The NEITI Executive Secretary, Dr Orji Ogbonnaya Orji noted at the launch that the progress made by Nigeria against oil theft, pointing out that the NEITI 2023 report showed a reduction of 79% in crude oil losses due to theft.
This, he said, reflects improved resource management.
He commended the office of the National Security Adviser, the Nigeria Armed Forces and our security agencies for the drastic approach so far resulting in visible decline in crude theft as disclosed by NEITI's latest report.
Dr Orji appealed to security agencies to sustain the fight against oil theft.
The Executive Secretary of NEITI, further highlighted the study's significance, linking it to key findings from the recently released NEITI's 2023 Oil and Gas Industry Report.
"Some of these findings are the 15% decline in Oil Revenues between 2022-2023; and 8% decrease in Nigeria's production volumes between 2022 and 2023 with the reserve-replacement ratio steadily declining", he said.
Delivering the opening remarks on behalf of the NEITI Board, its Chairman, Senator George Akume represented by its alternate Chair, Ambassador Mathew Adoli, emphasised the urgent need for Nigeria to strategically respond to the challenges and opportunities presented by the global move towards cleaner energy.
"The transition from fossil fuels to renewable energy sources is no longer an abstract concept. It is a reality shaping policies, markets and investment decisions worldwide. For Nigeria, an oil-dependent economy, this presents profound challenges and opportunities.
"Our ability to navigate this transition effectively will determine not only the future of our energy sector but also the overall sustainability of our economy", the chairman stated.
Daily Trust.
East Africa: China State Bank Shouldn't Back East African Crude Oil Pipeline
Planned Fossil Fuel Project Threatens Human Rights, Drives Climate Change
"We are now drilling." Uganda's energy minister recently confirmed at COP29 that the government was pressing ahead with the East African Crude Oil Pipeline (EACOP). The 1,443-kilometer pipeline will connect oilfields in western Uganda with the port of Tanga in eastern Tanzania. Among one of the world's largest fossil fuel projects currently under development, EACOP poses significant risks to human rights and the environment.
Given the government's unwavering support, the pipeline's completion will now rely on whether it can secure the necessary funding.
Several banks, including major African banks, have already declined to support the project. The state-run Import-Export Bank of China (Exim Bank) remains undecided and is expected to make a key decision in December about its financial support for EACOP.
A Human Rights Watch report in 2023 found that land acquisition associated with the project has already devasted thousands of people's livelihoods in Uganda. The inadequate and delayed compensation for land lost to the project has impacted many communities' access to food, health, and education. It is estimated that developments in the oilfields will displace as many as 100,000 people across Uganda and Tanzania.
Human Rights Watch has also documented the Ugandan government's routine harassment and arbitrary arrests of human rights defenders and activists who voice concerns about the pipeline. More than 80 have been arrested since May 2024 for protesting against EACOP.
The Climate Accountability Institute estimated the full lifecycle greenhouse gas emissions of the project to be 379 million tonnes of CO2 equivalent, more than the annual emissions of Australia.
Human Rights Watch wrote to Exim Bank in October and urged the bank not to support EACOP due to its human rights and environmental risks. Backing EACOP would also be at odds with the bank's stated aims as outlined in its 2022 White Paper on Green Finance, which highlights cooperation with various international financial institutions in supporting environmental protection and renewable energy. Exim Bank has not responded to the letter.
In a year when global warming is expected to exceed the threshold of 1.5 degrees Celsius set by the Paris Agreement, expanding new fossil fuel projects like EACOP would be disastrous. China Exim Bank, or any financial institution, should not support a project that poses grave and significant risks to both human rights and the environment.
Hellen Huang, Senior Associate, Environment and Human Rights
HRW.
Africa's Foreign Policy Must Focus On Continental Needs
Rather than seeking common African positions, prioritising Africa's development and peace can provide a foundation for meaningful global influence.
The international order is being challenged by tensions between the global north or West and the emerging global south powers, particularly the BRICS+ group. In a divided world, major and middle powers from both sides are courting Africa, as seen in the many summit meetings and billion-dollar investment pledges.
But do these partnerships strengthen Africa's position on the world stage as the African Union (AU) claims?
Over 12 different Africa summits are now held with external partners - most recently with China and Indonesia. The September China-Africa summit saw a pledge US$50 billion to Africa over the next three years. It follows the United States' (US) pledge of US$55 billion over three years to shared priorities and the African Union's (AU) Agenda 2063. Japan has committed US$30 billion, and Russia has proposed several collaborative and consultative arrangements.
Perhaps most important is Africa's relationship with the European Union (EU). The last EU-African Union Summit in Brussels in 2022 agreed on a joint vision for a renewed partnership and investments of €150 billion.
The AU says such partnerships aim to enhance Africa's international standing and global leverage. By prioritising these relationships, particularly with emerging powers such as Indonesia, Africa seeks to maximise its impact in international affairs.
According to the AU, the proliferation of partnerships is evidence of Africa's growing prominence in the global arena and its strategic approach to achieving continental objectives through multilateral cooperation.
In theory, having more partners gives Africa additional options to negotiate and choose from, thereby increasing its bargaining power, decision-making autonomy and flexibility in international relations.
But there is little evidence that these efforts have lessened external interference in Africa. For example, the wave of coups in the Sahel region has led to an alliance between 'coup governments.' The alliance is backed by security guarantees from Russia to establish the Confederation of Sahel States, which threatens both the AU and the Economic Community of West African States.
Some argue that Africa has a unique opportunity to help shape a future world order, owing to its demography, critical minerals and importance in diplomatic and geopolitical alliances. It could advocate for more equitable representation within its various partnerships and in key international institutions such as the United Nations (UN) Security Council. The multiplicity of engagements thus enhances Africa's agency in global affairs.
In pursuit of a global system fit for the future, the AU could deploy its common African positions - for example, the Ezulwini Consensus and Sirte Declaration. These outline Africa's stance on UN reform, including of the UN Security Council - demanding permanent representation with veto rights, increased non-permanent seats, and AU-led selection of African representatives.
Such documents illustrate Africa's commitment to multilateralism while aiming to address historical injustices and ensure inclusive representation and meaningful participation in global governance structures.
However, given Africa's diversity and complexity, common African positions are few and far between. Crafting them is often costly and laborious, and once set, they bring a rigidity to reform. They may also divert attention from Africa's internal pressing peace and development priorities.
Rather than striving for continent-wide positions and action, an introspective strategy prioritising Africa's development and peace would more effectively enhance the continent's geopolitical agency. This should be complemented by a more strategic engagement with key partners.
The continent must focus on strengthening its own institutions, resolving internal conflicts and building economic resilience before committing significant resources to broader international issues where its interests are not at stake.
By addressing internal challenges first, Africa can develop a stronger foundation from which to exercise meaningful influence in global affairs and protect its strategic interests. A more pragmatic and dynamic approach is needed, where the multitude of external engagements complements the pursuit of domestic African peace and development.
Africa should commit to foreign policy support only on matters where its interests are directly at stake. It should pursue common positions on issues that hinder the continent's ability to achieve peace and development - like meddling by Gulf states.
The Pan-African agenda should prioritise preventing new conflicts and responding timeously to ongoing wars in Sudan, Ethiopia, the Democratic Republic of the Congo, Libya and others. Reform of the World Bank and International Monetary Fund, and putting the World Trade Organization into operation, directly impact Africa's development priorities, and need continental action.
Pursuing global tax reform, reducing sovereign borrowing costs, addressing debt relief, pursuing simplified access to private capital and climate financing, and establishing common standards for infrastructure development are also crucial. These targets are realistic and can better meet people's needs.
As part of a strategic foreign policy aimed at the future, African states should agree on a standardised set of transparency and project execution guidelines that are uniformly applicable to foreign investors and countries operating in Africa. These criteria must encompass public consultations and sustainability benchmarks. The requirements should be clear, simple and publicly available - as all subsequent agreements should be.
The AU should lead the development of a binding legal protocol that spells out these requirements, followed by domestic enactment and implementation. Strict regulatory and enforcement mechanisms should accompany such a protocol, which should govern all foreign investment and sovereign loan agreements in Africa.
Initiatives such as reforming African and international peace and security architectures and implementing the African Continental Free Trade Area and Agenda 2063 should be prioritised. With these clear priorities, Africa can forge specific beneficial partnerships while removing requirements that constrain African agency, ultimately contributing to a more inclusive and stable international order.
This article was first published in the Africa Tomorrow blog of the ISS' African Futures and Innovation programme.
Jakkie Cilliers, Head, African Futures and Innovation, ISS Pretoria
Mehari Taddele Maru, Adjunct Professor, European University Institute and Johns Hopkins University
ISS.
Nigeria: Major Marketers Shun Importation, Source 148m Litres of Petrol >From Dangote Refinery
THE major oil marketers have sourced 148,463,142 litres of Premium Motor Spirit, PMS, also known as petrol from the Dangote Petroleum Refinery following increased domestic availability.
The oil marketers, members of the Major Energy Marketers Association of Nigeria (MEMAN), bought the product from the Dangote Refinery within 10 weeks (September 16 and November 24, 2024), averaging 2,120,902 litres per day.
MEMAN members, including 11 Plc, Ardova Plc, Conoil, MRS, NNPCL, and TotalEnergies, account for about 40-50% of Nigeria's petroleum products market share.
Chief Executive Officer of MEMAN, Clement Isong, disclosed the figures at the quarterly webinar in Lagos, yesterday.
Isong, who was represented by Ogechi Nkwoji, Head of Economic Intelligence Research Regulation, said even though MEMAN members got licenses from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to import petrol, they have resolved to depend on the Dangote Petroleum Refinery.
Isong said that products lifted from the Dangote Petroleum Refinery were transported via trucks and vessels to marketers' facilities in Lagos.
He said that MEMAN members loaded 29,468,333 litres in Week 38 (September 16-22, 2024), followed by 20,843,322 litres in Week 39 and 27,236,283 litres in Week 40.
Isong said: "However, volumes began to decline in subsequent weeks, reaching a low of 1,600,000 litres in Week 46.
"The supply slightly rebounded to 11,596,397 litres by Week 47 (November 18-24, 2024)."
He disclosed that the spot price of petrol based on the 30-day pricing trend from October 10 to November 22, 2024, stands at ₦976.07 per litre, adding that the average price during the same period was ₦971.14 per litre.
He further revealed that the product cost per metric tonne is estimated at ₦708,390, calculated using a foreign exchange rate of ₦1,665.99 to the dollar.
On factors influencing petrol pricing in Nigeria, Isong said the critical cost components include the jetty location, such as ASPM, and a standard product quantity benchmarked at 38,000 metric tonnes.
He said: "The pricing methodology relies on the Argus Gasoline Euro-Bob benchmark for West African deliveries, combined with an average premium.
"The exchange rate is derived from the Central Bank of Nigeria, CBN, weighted average rate within the Nigerian Foreign Exchange Market (NFEM), which significantly impacts the final price."
Isong noted that finance charges contribute heavily to the cost structure, pegged at 32% per annum over a 30-day cycle. Freight costs for Ship-to-Ship, STS operations and related charges reflect a 10-day delivery timeframe to the ASPM jetty, Lagos Midstream Jetty (LMJ) located at the Lagos Apapa Harbour.
"Other local charges include those imposed by the Nigerian Ports Authority (NPA) for services such as towage, berthage, and cargo handling, as well as contributions to NIMASA at 2% of local freight and regulatory fees."
Also, in his presentation - Logistics Challenges and Pricing Trends in Nigeria's Petroleum Industry - Vice President, Crude Oil, Argus Media, James Gooder, identified infrastructure, vessel capacity, and exchange rate stability as the major determinants of petroleum products prices in Nigeria.
He said: "Unfortunately, many of the jetties, particularly in areas like Warri and Calabar, have draft sizes of about five meters, limiting the size of vessels that can dock there.
"These limitations translate to higher logistics costs, which ultimately affect the pump price of petrol. He pointed out that Investments in improving jetty infrastructure are critical to addressing this bottleneck. If we can deepen these drafts and improve the channels, it will boost business in those areas and accommodate larger vessels.
"This shared approach enhances efficiency and reduces costs, but it's only a partial solution. Addressing structural issues is the long-term answer."
"The landing cost is calculated daily based on the spot price of the product and the prevailing exchange rate."
He said the data from October to November indicated that the exchange rate of the Naira to the Dollar has been relatively stable; adding that with a global decline in crude oil and gasoline prices, the stability has contributed to a reduction in the landed cost of petrol.
He said: "When the FX rate is stable, and the product cost decreases, the landed cost and pump price come down accordingly."
Vanguard.
Liberia's Offshore Potential Set to Fuel Africa's Deepwater Energy Sector
Liberia is emerging as a key player in Africa's growing deepwater energy sector, with significant exploration interest in the country's offshore resources.
According to Rystad Energy, the deepwater segment has long played a crucial role in Africa's hydrocarbon production, contributing between 20-25% of the continent's oil and gas output over the last decade. By 2035, this share is expected to rise to between 35-40%, with countries like Liberia poised to capitalize on the region's energy potential.
Rystad Energy estimates that by 2035, there will be an additional 3.5 million barrels of oil equivalent per day (boepd) from pre-FID (final investment decision) and under-construction deepwater projects across Africa.
This growth comes on the heels of successful developments in Namibia and Côte d'Ivoire, which have spurred increased interest in West Africa's deepwater resources. As a result, countries like Liberia, along with Sierra Leone and São Tomé and Príncipe, are becoming key areas for companies looking to secure acreages for future exploration and development.
While the deepwater sector in Africa saw a decline in activity following the COVID-19 pandemic, with average annual sanctioning of deepwater resources dropping from 1.89 billion barrels of oil equivalent (boe) in 2015-2019 to around 330 million boe in the years that followed, recent successes in countries like Namibia, Côte d'Ivoire, and Mozambique signal a coming resurgence.
According to Rystad Energy, deepwater resource sanctioning in Africa could surpass 2 billion boe annually from 2025-2029, potentially reaching over 3 billion boe, provided that key projects move forward on schedule.
For Liberia, this growing focus on deepwater exploration presents an opportunity to unlock significant economic benefits. The country's offshore resources could play a critical role in Africa's energy landscape, but realizing this potential will require strategic fiscal incentives, improved security for offshore facilities, and continued investment in exploration.
Additionally, Liberia has the potential to leverage its offshore gas resources for gas-to-power projects, which could significantly enhance electricity access both domestically and across the continent.
As Africa's deepwater sector continues to develop, Liberia's role in this energy transformation is becoming increasingly important. If it can align its exploration efforts with broader regional trends, the country could play a vital part in shaping Africa's hydrocarbon future. This insight is backed by Rystad Energy's extensive analysis of the continent's energy landscape.
Liberian Observer.
Nigerian Govt Spends N8.8 Billion to Repair Vandalised Power Towers - Official
The government explained that between 13 January 2024 till date, 128 transmission towers have been destroyed either by vandals or bandits across the country.
The Nigerian government on Wednesday said it has spent about N8.8 billion to repair transmission towers vandalised across the country.
Bolaji Tunji, special adviser on strategic communication and media relations to the Minister of Power, Adebayo Adelabu, disclosed this in a statement on Wednesday.
Mr Tunji said the Managing Director and Chief Executive Officer of the Transmission Company of Nigeria (TCN), Suleiman Abdulaziz, disclosed this at the quarterly power sector working group meeting in Abuja on Tuesday.
In recent times, vandalism has become a major threat to Nigeria's power infrastructure.
Mr Abdulaziz, represented by the Executive Director, Transmission Service Provider (TSO) of TCN, Olugbenga Ajiboye, explained that between 13 January and today, 128 transmission towers have been destroyed either by vandals or bandits across the country.
"As I talk to you today, 128 of our towers have been destroyed by either vandals or bandits. To date, we have spent about N8.8 billion, by our estimation, to put them back to full and functional use. It is so sad that each time the vandals were caught and taken to the police for prosecution, police would indict them for theft, instead of vandalism, and they would be bailed," Mr Abdulaziz said.
He lamented that when the vandals were apprehended and handed over to the police for prosecution, they were bailed and returned to continue with the vandalism.
"If they are charged for vandalism, they cannot be bailed, but this is where we are. So many of them have been arrested, but each time they will be bailed because police often incident their cases as that of theft. When the Shiroro-Mando-Kaduna towers were destroyed, we had to get the full military escorts for our contractors to get the transmission lines and towers restored and in some cases, they would tell us that we could only work for two hours on some days.
"In some instances, they would even tell us that it was not safe to move there. How do we get out of this? How can we deliver electricity to Nigerians under these terrible circumstances? These are part of the challenges we are facing in the power sector," he added.
Also speaking, Mr Adelabu said the federal government was working in collaboration with the World Bank and the African Development Bank (AfDB) to make electricity available to 50 million Nigerians by the year 2030.
Mr Adelabu, represented by his Chief Technical Adviser, Adedayo Olowoniyi, said the Ministry of Power is collaborating with its finance counterpart to get this process achieved.
"Mission 300 has been driven by the World Bank and the African Development Bank, and it is a project that will provide electricity to 300 million Africans, and Nigeria will benefit 50 million from this. Nigeria has a large population that is without electricity and this is a great opportunity for us to be part of this process," Mr Adelabu said.
He said the compact document will be signed by President Bola Tinubu in Tanzania in January 2025.
"We worked extensively with the World Bank, the AfDB and the Ministry of Finance to develop the document with all the countries that will be participating in it. The most important thing is that we have to drive the process by ourselves through private and public sector participation. We will do it through the solar form system, mini and microgrid, grid extension and connection.
"The reality is that it is not actually feasible, based on the resources we have, to extend the grid to all Nigerians, one, from the funding point of view and secondly, it may not be commercially viable to begin to talk of grid extension to those parts that are not viable, but that does not mean that we should not deliver electricity to them, which is their right and as part of the dividends of democracy. But we will start with the home solar system in those areas where the grid may not work," he said.
Premium Times.
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