Author: Padili Mikomangwa

South Africa, Africa’s most diversified economy has taken a hard hit on its currency as investors grow increasingly anxious over the impact of the spread of corona virus in Africa.

According to a reuters report, investors are slowing down as they are calculating the economic impact of China’s spreading coronavirus outbreak.

According to Reuters, at 0702 GMT, the rand traded at 14.4800 versus the dollar, 0.59 per cent lower than its New York close on Friday.

The South African economy has sustained a rather serious shakedown over the past year, causing its business index to plummet, thus—reports show the sluggish outlook for the local economy added further strain on the currency on Monday.

Global Markets tumbled on Monday as investors grew increasingly anxious about the economic impact of the outbreak of coronavirus, which has taken more than 80 people’s lives.

Further, Reuters noted that a weak growth outlook for …

Zambia, Africa’s second-largest copper and cobalt producer stands to sustain a serious hit in its mining industry as the leading diversified natural resources producer, Eurasian Resources Group (ERG) had planned to put its Chambishi Metals copper and cobalt refinery in Zambia under maintenance and cut 229 jobs by the end of January.

According to a report by Reuters, the President of Mineworker’s Union of Zambia commented to the news agency that the union was informed of the layoffs as the miner was halting production temporarily due to difficulties sourcing raw materials for the refinery.

Reuters also confirmed that Zambia’s mines minister Richard Musukwa had been informed about the layoffs.

International Trade Administration (ITA) indicates that Zambia possesses the world’s highest-grade deposits of copper and is ranked the seventh largest copper producer and contributes to over 70 per cent of the nation’s foreign export earnings.

Zambia mining industry contributes 12 per …

Zambia’s economy is expected to grow by 3 per cent, according to nation’s President Edgar Lungu who said on Thursday that, the nation’s economic growth will be slightly off the previous forecast of 3.2 per cent.

According to Reuters, President Lungu revealed the growth projection when he was meeting diplomats, and commented on the fiscal deficit which was expected to shrink from 6.5 per cent in 2019 to 5.5 per cent in 2020, while inflation would remain within the range of 6 to 8 per cent.

However, in October 2019, Bloomberg reported that Zambia’s inflation rate remained at a three year high in October and economic growth slowed, complicating the central bank’s task.

Further, annual consumer inflation accelerated to 10.7 per cent from 10.5 per cent in September 2019, whereby Zambia Statistics Agency noted to be the fastest rate of price growth since October 2016.

The economy of Africa’s second-biggest …

Barrick Gold Corporation is back to business with Tanzania, after signing an agreement with the government of Tanzania earlier today in the commercial city, Dar es Salaam.

According to a statement from Barrick, the agreement formalizes the establishment of a joint venture between Barrick and the government and showcasing the government full visibility of and participation in operating decisions made for and by the North Mara, Bulyanhulu and Buzwagi mines.

Barrick finds the latter a rather pioneering move that would take its policy of partnership with its host countries to a new level.

Further, the agreement has ratified the creation of Twiga Minerals Corporation (of which initial establishment began last year), the management company jointly owned by the government and Barrick, overseeing the miner’s local operations.

The corporation is now owned 84 per cent by Barrick and 16 per cent by the government. Also, the deal provides for a 50/50 …

Africa’s e-commerce giant, Jumia is taking bold steps to revitalize its profits after experiencing a hard turn in 2019, e-commerce giant co-founder, Jeremy Hodara revealed to Reuters.

According to Hodara, Jumia (which is listed at New Stock Exchange) current focus is on capitalizing its payments and infrastructure network and boost revenue from services for third-party sellers on its online marketplace.

The company managed to attain a $ 4 billion peak value, before plummeting in shares by almost 70 per cent since its initial public offering (IPO) in April 2019.

“We’re going to be extremely disciplined and very focused on our path to profitability,” Hodara told Reuters on Tuesday.

READ:More people in East Africa are embracing Ecommerce

In November 2019, Jumia pulled out in Cameroon and Tanzania, as well as holding its food delivery in Rwanda, thus—still Jumia’s chief has not revealed if the company plans to shrink its market …

South Africa’s power cuts cost the national economy up to $8.3 billion, South Africa Council for Scientific and Industrial Research (CSIR) research findings reveal.

READ:Eskom, BRICS bank sign $180 million renewable energy deal

According to a report by Reuters, CSIR highlighted that the power crisis which escalated last year is predicted to persist for the coming two to three years.

The state-owned utility Eskom which supplies 95 per cent of the nation’s power was forced to implement intense power cuts across the country in 2019 when its vital power plants were devastated by floods.

The state power utility cut 6,000 megawatts from the national grid, disrupting power supply to businesses and households.

Further, the power cuts are one of the biggest challenges facing President Cyril Ramaphosa as he tries to revive investor confidence in Africa’s most industrialized economy.

According to Reuters, Ramaphosa has promised to break up Eskom to …

The African Climate Change Fund (ACCF) has given the African climate-resilient a serious boost of $4.7 million to finance seven new project proposals.

According to African Development Bank (AfDB) press release, the project funding is parallel to its  2013 – 2022 strategy  and Climate Change Action Plan 2016 -2020, which are full of top-notch projects addressing climate change challenges.

In that context, AfDB highlighted that the projects on the table were fenced around collaboration with other key placers such as local Non-Governmental-Organizations (NGO’s) operating within the regions, the projects are as follows.

Syntropic agriculture as strategy to foster resilience, climate adaptation and recovery of vulnerable communities living in degraded marine and coastal ecosystems in Mozambique: This project will improve the environmental resilience and economic sustainability of smallholder families in Zambezia Province using scaled-up “gender-oriented eco-governance productive model”; it will be implemented by ICEI, a non-profit organization, and ORAM, …

The Tanzanian government has found itself within mining dispute after three mining companies operating in the country, over various mining disputes.

The three have engaged the government in among other disputes a breach of international laws and mining licenses.

Winshear Gold Corporation

Canadian miner, Winshear Gold Corporation was the first miner to serve notice of intent to the Tanzanian government on January 10, which is in accordance with the 2013 Agreement for the Promotion and Reciprocal Protection of Investments (Bilateral Investment Treaty – BIT) was delivered to the Attorney General of Tanzania.

According to the company’s statement, the dispute develops out of certain acts and omissions of the United Republic of Tanzania in breach of the BIT and international law, relating to the Company’s investment in the SMP Gold Project located in Tanzania.

The gold miner commenced exploration activities on the SMP Gold Project in 2006. Successfully the company via …

Tanzania education landscape has acquired a $ 90 million boost from the Global Partnership for Education (GPE), for the enhancement of the sector.

According to a local Tanzanian news outlet-Daily News, the funds go after financing the construction of classrooms and other supporting infrastructure to accommodate the increasing number of enrolled children fueled by the new free education policy, ushered by the fifth government.

Statistics from the Ministry of Education, Science and Technology indicate that pupil’s enrollment has increased from 1.1 million to 1.9 million since the government started to implement the free basic education policy in 2016.

According to the Ministry of Finance and Planning, Permanent Secretary (PS) Doto James, the grant will be used to bankroll Education Sector Development Plan (ESDP) 2016/2017- 2021/22 and Education Programme for Results (EPforR).

The signing of the two grant agreements was held in Dar es Salaam yesterday between the Swedish Ambassador in …

Ethiopian Airlines Africa’s largest air carrier has announced via its chief executive officer that it plans to build Africa’s largest airport this year costing $ 5 billion.

The airline chief Tewolde Gebremariam told the Ethiopian Broadcasting Corporation that the airport could be bigger than France’s Charles de Gaulle, and the construction will start in the next six months.

According to a report by Reuters, Gebremariam was quoted by the Ethiopia News Agency that, the airport, which will cover an area of 35 square km, will be built in Bishoftu, a town 39 km south east of the capital, and have the capacity to handle 100 million passengers a year.

“Bole Airport is not going to accommodate us; we have a beautiful expansion project. The airport looks very beautiful and very large but with the way that we are growing, in about three or four years we are going to be …