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The Pan-African Economy in Brief: Thursday, September 20, 2018

Botswana:
The budget deficit is expected to widen in 2018 to 2.3% of GDP: "Botswana is expected to widen its budget deficit to 2.3% this year, said a statement issued by the Ministry of Finance on Tuesday, adding that according to information from the US news agency Reuters, the new forecast represents an increase from the previously projected 1.8% deficit. The new estimates were reportedly motivated by a downward revision of its mining revenue forecasts, the country's main source of currency, and when it came to power last April, the new President Mokgweetsi Masisi announced his intention to wean his country off its dependence on raw material exports by diversifying the country's revenue sources..."


Ivory Coast:
Rubber exports increased by 20.4% between January and July 2018: "During the first seven months of 2018, Ivory Coast's natural rubber exports increased by 20.4% to stabilize at 388,244 tons, according to intellivoire reports, details provided by the information website suggesting that this increase is due to cocoa price volatility. Indeed, the country's rubber producers, attracted by a promise of stable incomes in this sector, have gradually turned to rubber production, to the detriment of cocoa, whose prices are often volatile. Last January, to sell the ever-increasing production of rubber, the Ivorian government authorized the export of raw rubber, which was only exported after semi-processing. About a quarter later, as shipowners were reluctant to transport unprocessed rubber, exports had to be stopped. They have only recently resumed after consultation between the government and the actors..."


Rwanda:
24 million additional funding from Japan for power grid reinforcement: "Rwanda has just received $23.6 million in funding to improve the stability of its electricity grid and thus avoid the risk of large-scale load shedding, which was provided as a grant by the Japanese government, through JICA, its international cooperation agency, for the third phase of the project to improve substations and distribution networks, with an economic growth rate of 8%, Rwanda is experiencing a 10% increase in electricity demand each year. In addition, the capital Kigali alone accounts for 64% of the energy consumed in the country as a whole..."


Ghana:
Inauguration of the Gomoa Onyaadze solar power plant (20 MW), the second largest in the country: "In Ghana, President Nana Akufo-Addo inaugurated the country's second solar power plant. With a capacity of 20 MW, the infrastructure was built by the local independent power producer, Meinergy Ghana, in Gomoa Onyaadze, in central Ghana, at an estimated cost of $20 million. The energy it produces will be transferred to the national power grid to improve service to the communities of Apam, Winneba, and Swedru, among others. "When we took office, we inherited a plethora of power generation contracts from independent power producers. Contracted at the height of the energy crisis, these agreements gave us energy at 18 cents per kilowatt-hour against a world average of 10 cents," the president regretted..."


Angola:
New 5-year investment contract for Lucapa and its partners in Lulo: "The Angolan Ministry of Mineral Resources and Petroleum has published in the Official Gazette a new mining investment contract for the Lulo kimberlite exploration permit, owned by Lucapa Diamond and its partners Empresa Nacional de Diamantes and Rosas & Petalas. The new contract covers, according to a Lucapa statement on Tuesday, a period of 5 years until April 30, 2023, and its partners have undertaken a systematic annual kimberlite drilling program, which aims to identify "the main hard rock strains of large-sized and valuable alluvial diamonds being recovered near kimberlite targets in Lulo"..."


Uganda:
The pharmaceutical company Cipla raises $41 million as part of its initial public offering: "The pharmaceutical company Cipla Quality Chemical Industries raised 155 billion Ugandan shillings ($41 million) as part of its IPO on the Uganda Securities Exchange, announced Renaissance Capital, a brokerage firm, on September 17. Cipla Quality Chemical Industries, a subsidiary of the Indian pharmaceutical giant Cipla, has put 657 million shares, representing 18% of its total capital, up for sale at a unit price of 256.5 shillings. "The offer was oversubscribed, with most of the demand coming from leading investors in sub-Saharan Africa," said Renaissance Capital's commercial director John Porter..."


Kenya:
The CA gave telecom operators seven days to disable all unidentified SIM cards that remain on the network: "Kenya's Communications Authority (CA) has given mobile operators seven days to disable illegal SIM cards that remain on their network. Safaricom, Airtel, and Telkom have until 23 September 2018 to comply. The decision taken by the telecoms regulator, announced at a press conference held on 17 September 2018, follows an audit that revealed numerous cases of non-compliance with subscriber identification regulations. According to the CA, it was noted, inter alia, that there were frequent cases of identification of the same telephone number by several different persons; incomplete or inaccurate identification of SIM cards..."


Cameroon:
Electronic payment in Cameroon: Campost will distribute the cards of Arthur Zang's Zng Smart Card company from the end of October 2018: "Cameroon Post, through the public company Campost, is undergoing a process of modernization that takes into account the technological changes of the moment, so that the postal network becomes the heart of the development of the digital economy. It has thus acquired infrastructures that have enabled it to diversify its offer of electronic and financial postal services, particularly in terms of electronic payment, hosting through its data center, and interconnection through its secure network of 234 post offices interconnected by optical fiber and satellite. This position as a major player in the digital ecosystem and financial inclusion has made it the partner of choice for ZNG Smart Card, the first smart card and electronic equipment manufacturing plant created in 2015 by the famous startupper Arthur Zang, inventor of the Cardiopad and carrier of the Zcard production and distribution project, a new electronic payment method that will be launched in Cameroon probably at the end of October..."


Sudan:
A former Executive Secretary of the Economic Commission for Africa declines the position of Minister of Finance: "The former Executive Secretary of the United Nations Economic Commission for Africa (UNECA), Abdullah Hamduk, has officially declined the position of Sudan's Finance Minister, according to the official Sudanese news agency SUNA. Sudanese President Omar al-Bashir has appointed as Finance Minister in the new restricted government unveiled on 14 September by Prime Minister Moataz Moussa Abdallah. This government of 21 ministers is called upon to restore the country's economic situation, which is facing inflation of over 60%, the fall of its currency against the US dollar and severe currency shortages. Sudan lost 75% of its oil reserves after the secession of South Sudan in July 2011, depriving it of several billion dollars in revenue..."


Chad:
Minister Issa Doubragne promises to accelerate economic diversification: "Chad's Minister of Economic Planning and Development, Issa Doubragne, has promised his government's commitment to finalize the work of the country's Master Plan for Industrialization and Economic Diversification within the next six months. The Minister spoke on Monday 17 September in N'Djamena at an event to officially launch the development of the master plan, based on technical assistance and preliminary work carried out by the United Nations Economic Commission for Africa (UNECA). "Chad has no more time to lose," he said. According to Mr. Doubragne, in partnership with all stakeholders, his country will accelerate the formulation and implementation of this master plan over the next five years and will be among the most resilient and diversified Central African countries. A statement issued to this effect notes that part of the process of formulating the master plan is to examine strategic options for economic diversification and inclusive sustainable industrialization, regardless of oil dependence, and to identify key sectors offering the best return on investment, new jobs, poverty reduction and increased export earnings..."


Gambia:
NAWEC is looking for a firm to advise on the implementation of its first photovoltaic power plant: "In The Gambia, the National Water and Electricity Company (NAWEC) is preparing to build the country's first large-scale solar photovoltaic power plant. The World Bank, which supports this process, has just launched a notice of interest for the recruitment of a consulting firm to support NAWEC. The interested companies have until October 4 to come forward and the contract is scheduled to last 36 months. The photovoltaic power plant will be located in the Grand Banjul area. It will have a capacity of between 10 and 20 MW and will potentially include an energy storage system. The project also includes the construction of a 132 kV power transmission line and electrical substations. It could also be built around a single power plant, or 3 to 5 mini-power plants with an equal overall capacity..."