China commits $60bn to African development. 4 December 2015
–Chinese President Xi Jinping on Friday announced $60-billion (R864-billion) of assistance and loans for Africa as he addressed a summit of African leaders in Johannesburg.
"China decides to provide a total of $60-billion of funding support that includes $5-billion of grants in zero interest loans (and) $35-billion in preferential facility and export credit loans and concessional loans," he said. The Forum on China-Africa Cooperation (Focac) will continue on Saturday as banking, business and political delegates from African countries and China gather to talk about how to develop cooperative, egalitarian relationships for the future.
The traditional historical model for Chinese companies doing business in Africa has been on the basis of engineering, procurement, construction (known as EPC), where a contractor designs a project, procures all the equipment and materials, and constructs and delivers the facility to a client.
But this is beginning to change, giving way to one where the Chinese investor commits to working with a local partner and takes an equity stake in a joint venture. What can sound like so much lip service when it comes from politicians packs a lot of punch when it is a discussion between businesspeople and financiers with experience on the ground.
The theme for the forum is “Africa-China Progressing Together: Win-Win Cooperation for Common Development ” and the Summit is expected to adopt the Johannesburg Declaration and Action Plan which will outline specific measures aimed at consolidating the growing mutual partnership between Africa and China.
Also worth watching is what might emerge when South African President Jacob Zuma and Nigerian Nigerian President Muhammadu Buhari come into contact. It is believed that they are more than likely to discuss the $5.2 billion penalty imposed on mobile phone operator MTN by Nigerian regulators for failing to disconnect 5.1 million unregistered users.
- Africa News Agency
Naira loses value, dollar sells for N247
Following the step taken by the Central Bank of Nigeria (CBN) tos ban over 1600 Bureau De Change Operators in the country from taking part in its twice-weekly sale of the foreign currencies, the value of naira tumbled against the US dollar from N243 to N247 at the parallel market on Thursday.
Consequently, overseas travelers are groaning as such depreciation would largely have adverse effects on their transactions and travelling expenses.
The eventual ban of these BDCs led to the scarcity of dollar across the country and such a development necessitated an increase in the price of dollar against naira because of the effect of the forces of demand and supply.
The Nigerian Communications Commission reduces its fine on MTN Nigeria to N674 Billion Naira (R48.7 billion).
MTN received a letter dated 2 December 2015 from the NCC stating it took the decision to reduce the fine on MTN Nigeria from the original N1.04 trillion to N674 billion. The fine has to be paid by 31 December 2015.
The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015.
“We are carefully considering the NCC’s reply, however the Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally,” said MTN.
“It is essential for MTN to follow due process to ensure the best outcome for the company, its stakeholders, and the Nigerian Authorities.”
Shareholders were advised to exercise caution when dealing in MTN’s securities until a further announcement is made.
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