Browsing: European Union

Africa is rich in oil and gas, with some of the world’s greatest natural gas reserves. www.theexchange.africa

Energy crisis: Can Africa replace Russian gas supplies in Europe?

Industry and Trade

The European Union has imposed restrictions, including a partial oil embargo on Russia. The sanctions will see the E.U. ban seaborne imports of Russian crude oil by the end of 2022. Additionally, petroleum product imports would stand prohibited by early 2023. European Commission President Ursula von der Leyen reiterates the E.U. plans to reduce reliance on Russian fossil resources by 2027.

Because of the European Union’s political determination to minimize its reliance on Russia in response to Moscow’s invasion of Ukraine, the E.U. is now searching for alternative suppliers. The search implies that suppliers such as Africa’s underdeveloped frontier energy markets may discover new energy markets in Europe. Optimism remains high since it is clear the E.U. no longer rely on Russian gas. Russia has for years remained a primary gas supplier in Europe.

EU-Africa Relations

International Relations: Can EU-Ethiopia relations get any better?

Industry and Trade

Over the past years, Ethiopia has become one of the primary beneficiaries of the EU Trust Fund for Africa.

According to information from European Commission, in total, the value of EU development assistance to Ethiopia has averaged an estimated 214 Euro ($225 million) per year. 

However, when Ethiopia was dragged down through the most gruesome internal political turmoil – the Tigray War – relations between the Horn of Africa and the EU was at an all-time low.  

The EU followed close on the heels of Ethiopia’s close development partner, the United States, and threatened sanctions on the Ethiopian government in a deliberate attempt to quench the conflict.  

Cold Storage Company renamed CSC-Boustead Beef Zimbabwe, opens after two decades

Investing

The company was struggling following a significant decline in the late 90s. In a related article published by ZBC News at its utmost, the giant used to employ over 4,500 people thereby making it one of the country’s biggest employers.

Further, in addition to beef production, the company also produced a large variety of by-products such as hides, neat’s foot oil, ox gall, edible offal’s, tallow and dripping, canned meats, ham, blood meal, meat and bone meal and pork sausages among others. The institution is the lifeblood of livestock farmers and the leather value chain.

The government is targeting the revitalization of the institution under the National Development Strategy One (NDS1). The government in May 2019, signed a US$400 million joint venture farming Concession Agreement with Boustead Beef Zimbabwe, a United Kingdom-based investor. The venture was reportedly based on a Concession Agreement under Rehabilitation, Operate and Transfer (ROT) Terms.

The fund was allocated for capital expenditures and as working capital for the business. Apart from that, it will be used to pay in full CSC’s financial debts of US$43 million. Rentals of US$100,000 per year will also be paid during the first five years of the concession agreement.

Zimbabwe petitions the UN over diamond and ivory ban

Industry and Trade

Zimbabwe chastised the West for averting Harare’s breakdown by denying “access to markets for Zimbabwe’s diamonds sector” and causing “disinvestment, corporate closures, and a currency collapse” in a document titled “Economic Impact of Sanctions on Zimbabwe.”
Zimbabwe, which is thought to hold 25% of the world’s diamond reserves, has sunk deeper into international turmoil following revelations that over USUS$14 billion had been taken by oligarchs in the Marange highlands, where the US has expressed concerns about forced labour and human rights abuses.
Security forces mercilessly attacked illegal miners around the end of 2008 to gain sole ownership of the mines for the state, prompting the West to label Harare’s jewels “blood diamonds.”