Historic WWII bomber visits PTC

Hundreds turned out over the weekend for WWII Heritage Days at Falcon Field in Peachtree City. This year, the B-24 Liberator, Diamond Lil, shown landing, made an appearance at the event. Diamond Lil is one of only two B-24s still flying.

Africa may not meet the 75% reduction rate target for malaria cases..

The World Health Assembly had targeted a 75 percent reduction in malaria fatalities for Africa this. But despite all the progress made so far, this is unlikely to be attained as millions of people did not receive the required treatment and health services
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This can attributed to poor identification and logistic infrastructure. In sub-Saharan Africa alone, an estimated 278 million people lived in households without an Individual Task Number (ITN) in 2013, 15 million expectant mothers did not receive Intermittent preventive treatment in pregnancy, and about 69 million children with malaria did not receive artemisinin-based combination therapy (ACT). All of these are key factors which have slowed the advancement of African countries towards the World Health Assembly target.

WHO Regional Director for Africa, Matshidiso Moeti, stressed the need for increased malaria funding which is paramount to saving lives and expanding access to malaria prevention, diagnosis and treatment services in Africa. She said this in a statement to commemorate the World Malaria Day 2015. She also stated that malaria prone countries lack universal coverage of malaria interventions. “The proportion of people protected by at least one malaria control method has increased in recent years,” Moeti explained. “[…] but total funding will only match needs if international donors and partners and national governments prioritize further investments in malaria control.”

She called on countries and stakeholders to focus on the areas most affected by malaria, while assuring them that WHO will continue to provide evidence-based guidance.
The World Malaria Day 2015, to be commemorated tomorrow, is themed: Invest in the future. Defeat malaria. This edition focuses on the need to improve financial and human resources, supplies and infrastructural investments in a bid to curtail and eliminate Malaria.

Energy giant Chevron offers Eskom a helping hand

US oil giant, Chevron has offered to assist South Africa’s troubled power utility firm, Eskom, with surplus diesel from its Cape Town refinery to power some of its generators.

The general manager for strategy at the its South African unit, Steve Hegarty, told the country’s Parliament’s trade and industry committee that Chevron had produced diesel and has reserved some for the struggling energy provider. This development will promote efficient supply of power, thereby ensuring that the company is not declared insolvent this financial year.
 

Eskom is struggling to supply Africa’s most advanced economy with power consistently. Its power stations break often due to lack of proper service. To manage the dire situation, it embarked on load shedding (controlled power cuts) scheme to avert the South African power grid from collapsing under pressure.

Financially, Eskom has been in tatters. It had long been rumoured to be broke and unattractive to investors. In March this year, rating agency Standard & Poor’s (S&P) downgraded Eskom to junk status after the company’s CEO, Tshediso Matona and three other senior executives were suspended.

  

That, though, was dismissed by Brian Molefe, the newly-appointed CEO of Eskom. He explained that the state-owned firm had won a number of financial facilities, including government guarantees that have not been utilised and added that the government had pledged to assist Eskom with a grant of about R23 billion ($1.8 billion).

Managing oil shocks should remain Africa’s short-term priority

Sub-Saharan Africa’s growth rate has slowed in recent months and this owed largely to the oil price slump. Its economic outlook, though, remains favourable at an estimated 4.5 percent this year – second to only Asia. However, for any real growth to be sustained in the short-term, managing the impact of the lower oil prices has to be the priority. “That said, the economic expansion this year will be at the lower end of the range experienced in the recent years. This mainly reflects the impact of the sharp decline of the oil and commodity prices that we have witnessed over the last six months,” Antoinette Sayeh, an IMF African Department Director said last week. She revealed this during the recently concluded IMF-World Bank Spring Meetings in Washington D.C.
 
According to her, the oil shock would have differentiated effects on sub-Saharan Africa’s diverse economies. While oil exporters like Nigeria and Angola would be hit hard, oil importers stand to benefit from lower oil prices, although gains would be partly offset by lower prices for their non-oil commodity exports.
In addition to the oil price crash, other impediments to the economic growth of the region include the Ebola outbreak that hampered growth in East Africa and security threats in the Sahel and Kenya. An escalation of these events could pose serious fiscal risks and scare potential domestic and foreign investors.
Given these prevailing conditions, dealing with the oil shock should remain a priority for the region. “The drop in oil prices also provides a unique opportunity to advance politically difficult energy subsidy reforms across the region,” she noted.

The current commodity price shock presents the case for total economic diversification. An energetic and productive population in a diversified economy is very likely to result in significant prosperity and growth. Demographic trends are also in favour of the continent as multiple studies suggest that the number of people reaching working age in the region will exceed that of the rest of the world combined by 2030. “This offers a tremendous opportunity for sub-Saharan Africa which, if properly tapped, can be a strong engine for growth going forward”, Sayeh concluded.

Why the global economy is slowing down

 

Figures released at the launch of the World Economic Outlook 2015 last week suggest a sluggish global economy with “moderate and uneven” growth. Global growth has been pegged at 3.5 percent, a rather moderate increase from last year’s 3.4 percent. This, economic experts say is the result of growth in advanced economies and contractions in emerging ones.

Beyond these broad outcomes and analyses lie a few factors that may have motivated this uninspiring economic performance. These factors were identified by Olivier Blanchard, Economic Counsellor and Director of the Research Department at the International Monetary Fund (IMF).

Effect of past financial crises: Interestingly, the scars from the 2008 financial crises and the euro crisis are still visible today. The effects are seen in weaker banks and swollen debt portfolios today. This has necessitated a reduction in spending by financial institutions, consequently leading to slower growth rates in many regions.

Reduced Potential Growth: Potential growth defines the way an economy grows, that is if the factors of production are fully employed. In advanced economies, potential growth started declining from the early 2000s, due to diminishing returns. This was compounded by the financial crisis in 2008.

Ironically, emerging markets – predicted to register impressive growth rates over the coming years – are showing an even striking reduction than their advanced counterparts. Parts of Africa, the world’s major growth frontier for the last half-decade, has seen growth blighted by the recent Ebola epidemic, Terrorism, and shrunken oil revenue coffers.

Exchange Rate Movements: While the dollar continues to rise, the yen, euro and naira have witnessed significant depreciations owing to different monetary policies and exogenous shocks from global issues such as slump in oil prices.

When put in context, all four macroeconomic factors have varying effects on different countries and explain why some regions are experiencing a net gain while others see a net loss. Overall, the global economy has grown, but by so little that it becomes worrisome.

Africa’s first ever NBA game to be hosted in South Africa

The National Basketball Association (NBA), the world’s biggest basketball brand, has announced that it will host its first game in Africa on the 1st of August 2015 at Ellis Park Arena in Johannesburg, South Africa.
The game will see ‘Team Africa’ play against ‘Team World’. Team Africa will be made up of African basketball players and others with African heritage, while Team World will be largely comprised of players from the rest of the world.

Two-time NBA All-Star Luol Deng, born in South Sudan and currently playing for Miami Heat, has been selected to captain Team Africa. Deng describes the event as important for Africa and also said being part of it makes him feel honoured.  “I am extremely proud to be a part of the NBA’s first game in Africa,” said Deng. “Coming from South Sudan and having participated in the Basketball without Borders Africa camps in Johannesburg previously, I am truly honoured to be part of this historic event.
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NBA first opened an African office in Johannesburg in 2010 and has remained active on the continent with a range of programmes such as NBA Care. The game will broadcast live on pay TV channel, SuperSport.

Did you know about Fourth Generation(4G) in Tanzania......?

 

Millicom, this week, announced the launch of its new 4G wireless network in Tanzania, offering subscribers of Tigo  its mobile telecommunications service in the East African state high speed internet for the first time.Fourth Generation (4G) Long Term Evolution (LTE) technology is the standard for wireless communication of high-speed data.

“This will make us by far the biggest 4G network in Tanzania and once again demonstrate our company’s commitment to the digital lifestyle transformation as leaders in delivering cutting edge technology and innovation in this market,” said Cecile Tiano Tigo’s General Manager
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The network has been rolled out in the Masaki and Mlimani districts of Tanzania’s capital city Dar Es Salaam, from where it will extend to cover the city. The regional capitals of Arusha, Moshi, Dodoma, Morogoro, Mwanza and Tanga will be wired by August.

Tanzania has one of the highest smartphone penetration in Africa. Millicom will be exploiting this to provide a world-class internet experience for Tigo customers who make online calls and access high definition content.
Already, Tigo plans to invest $120 million on its network expansion and improvement during 2015. This will include scaling up its 3G sites and fibre network countrywide to offer continually improving quality services to more users.

Is Sierra Leone the new hotspot for Nigerian banks?

First Bank of Nigeria Limited (FBN) is the latest Nigerian lender to set up camp in Sierra Leone. Over the last decade, more than five Nigerian lenders (Guaranty Trust Bank, Zenith Bank, Skye Bank,Access Bank and United Bank for Africa) have launched businesses in Sierra Leone.

Sierra Leone lacks solid local participation in the banking industry. More than 70 percent of Sierra Leone’s commercial banking sector is dominated by foreign players, making it an attractive destination for Nigerian banks, which are considered the biggest within West Africa.

Even though Sierra Leone is still recovering from the damaging effects of a civil war and the recent ebola epidemic, FirstBank, hopes to exploit the vast untapped opportunities inherent in the country, where access to loans is still a major challenge.

First Bank prides itself as one of the largest corporate and retail financial institutions in sub-Saharan Africa (excluding South Africa). It operates in the United Kingdom, France, and five other African states. It also has representative offices in South Africa, China and the United Arab Emirates. It is Nigeria’s second biggest bank by asset, only beaten by Zenith Bank, which is also an active participant in Sierra Leone.

The bank begins operations in the West African country after reaching an agreement with the International Commercial Bank Financial Group Holdings Ag (ICBFGH) for the full acquisition of International Commercial Bank (ICB) Sierra Leone. “The launch of FBNBank Sierra Leone fulfills one of the critical stages of our ambition to steadily broaden and build a more diverse footprint across Africa,” said Bisi Onasanya, GMD/CEO of FirstBank, in a statement.

South Africa and Egypt Joins World Bank and IMF Rival

 

South Africa and Egypt were among the 57 founders of the Asian Infrastructure Investment Bank, AIIB, which was approved yesterday in Beijing, China. The bank, championed by China, was heavily lobbied against by the United States America, which it considers a rival to the World Bank. Not only did the US lobby fail in its bid to stop the AIIB’s take-off, some of its closest allies have also joined the bank, among them Britain, Italy, France and Spain. Egypt, the second largest recipient of US aid, and South Africa, also joined the new ship just days before it launched.
The AIIB was proposed by the government of China as a response to the need to close Asia’s $8 trillion infrastructure investment gap. The Asian giant had also been frustrated by the West’s dominance and its little say in the World Bank, IMF and Asian Development Bank. The US openly kicked against the formation of AIIB, saying it was worried the bank would not meet the high standards expected of global financial institutions. The Western power also pressured its major allies in the region and Europe against joining the bank, but only Japan and Canada refused the AIIB. However, the new bank refused the applications of Taiwan, the US’s close friend, and North Korea, its number one enemy.
What’s in It for Africa? 
Although the AIIB will be focused on investing in Asia, Egypt and South Africa’s member status mean they would also draw in funds badly needed for its own infrastructure development. A former assistant to the executive director of the International Monetary Fund (IMF), told the Daily News Egypt that African members will gain noticeable benefits in raising funds for its in infrastructure development. “Member countries will benefit by receiving infrastructure investments from the AIIB.”
The AIIB begins with an initial capital of $50 billion, although that figure will be doubled in the nearest future. The bank says its modus operandi will be lean, clean and green; “Lean, with a small efficient management team and highly skilled staff; clean, an ethical organization with zero tolerance for corruption; and green, an institution built on respect for the environment”.
Against popular fears of an international financial rivalry, the AIIB says it will complement and cooperate with other multilateral development banks (MDB), such as the World Bank and IMF.  The bank also says it is open to all countries regardless of region of financial status. “AIIB welcomes all regional and non-regional countries, developing and developed countries, that seek to contribute to Asian infrastructure development and regional connectivity,” the bank explained on its website.

How Africa’s underdevelopment fuelled South Africa’s Xenophobia

 

For the past three weeks, South Africa has been embroiled in xenophobic violence carried out by locals against foreign immigrants. African countries, whose nationals are the main victims of the attacks, have been at the forefront of condemning these violent acts. But, while the actions of locals cannot be excused, and the South African government bears the direct responsibility for not protecting foreigners, the governments of the African immigrants under attack also deserve a share of the blame. It is the political instability and economic stagnation in their countries that have led to the exodus of their citizens, the ripple effect of which is this current crisis.
South Africa is host to between 2 and 5 million illegal migrants, many of whom are running from African countries with weak socio-economic and political systems. The governments of the immigrants are partly responsible for the attacks against them. With South Africa still far from effectively mending the cracks in its socio-economic disparity between long-privileged whites and long-subdued blacks, the large addition of immigrants to the mix has led to the cataclysm that is the current xenophobic violence.
The bulk of South Africa’s illegal migrants come from Zimbabwe, who are estimated to be up to 1.5 million. The influx of Zimbabweans into South Africa is caused by the dire living conditions in their country; where long-serving ruler Robert Mugabe has led the country from being one of the richest in Africa to among the poorest in the world. Had President Mugabe delivered effective governance and propelled his country to economic growth and development, his countrymen would not flee in droves to their better-to-do neighbours. US president Barack Obama warned of this scenario in 2014, when he told the Economist that the hardship in Zimbabwe, which was causing huge migrations to South Africa, could lead to tensions in the host country.
Nigerians constitute the second largest number of immigrants in South Africa, after Zimbabwe. With an estimated population of 300,000, they make up about 0.6 percent of the entire South African population. The massive movements, which began in the middle 1990s and is yet to cease, is largely due to the drought of opportunities at home than the greenness of pastures abroad. Not even the overtaking of South Africa’s economy, in size, has inspired Nigerians over there to return home. This is because the conditions that instigated the flight from fatherland still remains very much present. Nigeria’s power situation is far worse than South Africa’s, even with the latter’s current rolling blackouts. The infrastructural development is still incomparable; corruption is more endemic in the West African country; and for low-skilled workers and small business owners, the attainment of a healthy means of livelihood is more possible in the South than back home.
South Africa’s regional neighbours- Malawi and Mozambique also share in Nigeria’s vices. Somalis and people from the Democratic Republic of Congo also populate South Africa, thanks to the violence and political instability in their homeland. These massive migrations, and the pressure it brought on the South African people and economy, are among the main factors that have caused the current violence.
The governments of these countries have condemned the violence against their nationals, but they have done very little to create the opportunities that their people run to the South in search of. For these leaders, condemning xenophobia is not enough; they must work to make their land habitable for their citizens.