BURUNDI :
RWANDA
US senator calls for solution to DR Congo problem GOMA, DR Congo — An influential US senator said the international community should be instrumental in solving the problem of Rwandan Hutu rebels in the Democratic Republic of Congo (DRC). Speaking in the eastern town of Goma, Richard Durbin, number two in the Senate’s Democrat majority, told AFP: “The question of FDLR (the Democratic Forces for the Liberation of Rwanda) should be resolved both by the Congolese government, Rwandan government and the international community.” The Illinois senator, who is close to President Barack Obama, suggested that Rwanda should publish the names of FDLR fighters accused of violating human rights. “Opportunity should be given to people who were not involved in horrific crimes to go back to Rwanda. There are some who have already been back to Rwanda. They live quite well, because they were not involved in horrific crimes,” Durbin said. The number of Hutu rebels is put at less than 5,000 in the east of the former Zaire where they moved after the 1994 genocide in Rwanda which mainly targeted the Tutsi minority in that country. Some of them took an active part in the genocide. The FDLR rebels are also accused of having committed atrocities against the civilian population in the east of the DRC in recent years. Durbin, who arrived Monday in Goma, capital of the Nord-Kivu province bordering on Rwanda, visited a camp for displaced persons near the town. He also went to a private hospital in Goma catering for victims of sexual violence and had talks with officials of the United Nations Mission in the DRC (MONUC). The Congolese army backed by MONUC was expected shortly to undertake a new operation against the FDLR following previous operations last year that observers said worsened the situation in the region where hundreds of civilians were killed and hundreds of thousands were displaced.. Durbin, accompanied by Ohio Senator Sherrod Brown, was scheduled to leave Goma on Tuesday. Rwanda: Rubavu Mayor Resigns Kigali — The Mayor of Rubavu in the Western Province, Pierre Celestin Twagirayezu, has handed in his resignation letter to the District Advisory Council citing “personal reasons”, The New Times has learnt. A source within the council told this newspaper yesterday that the Mayor’s letter had been received and the district council was still “looking into the matter.” The Governor of the Western Province, Celestin Kabahizi, said he had heard about the Mayor’s resignation but he had not yet received a formal communication. Twagirayezu could not be reached by press time to give details as to why he was resigning. A meeting is scheduled today between the Governor and other senior officials to discuss the issue. A source who spoke on condition of anonymity said the Mayor’s resignation was long overdue as he was criticized for mismanagement of district. “This man did not put into practice last year’s decision by a Government retreat to clean up Gisenyi town. He was also involved in illegal sacking of local authorities and recently, survived being forced out by the advisory council over serious mismanaging of the district,” the source said. Last week during a meeting with the Governor and the Resettlement Commission headed by Maj.Gen. Fred Ibingira, Twagirayezu was strongly criticized for failing to find a place for residents who were evacuated from Gishwati Forest. Rwanda: Agent Provocateur Emerges in the Kingdom Kagame Built Nairobi — Less than a month ago, Rwanda’s President Paul Kagame was informed of a challenger for his seat, Victoire Ingabire, the leader of the Unified Democratic Forces political party that is yet to be registered. Ms Ngabire, who has lived in The Netherlands since the early 1990s, is the most controversial political figure who has emerged in the recent past to challenge the status quo in the country, which prefers to suppress ethnic debate to forge national healing. Kagame’s government is threatening to prosecute her for alleged inflammatory speech, and she has faced public intimidation and mob violence. She is now fighting to get a national identity card so that she can participate in the election as a legitimate candidate. The big question now is whether Kagame is ready to tolerate political opposition, or he will continue to use the past as a pretext to crack down on legitimate political dissent. Is the modern Rwandan state stable and vibrant enough to deal with uncomfortable truths about the past in the context of political plurality? CHARLES KAZOOBA and ESTHER NAKAZZI from the Kampala Bureau interviewed her on a range of topics. What do you plan to do differently and what package will you offer women? I will promote peace and reconciliation. Because women abhor violence, I will ensure that there are more women in power. I will turn around Rwanda’s image, which has been tarnished by the Rwanda Patriotic Front’s unnecessary ventures into other countries. I will set up special programmes for women and promote development projects that will help them gain financial independence. The Rwandan media has described you as a hard talker. Explain. I do not waver on my genocide ideology. We must accept reality. Tutsis and Hutus should be held responsible for crimes against humanity. We need to sit together as Rwandans, analyse the genocide and come up with solutions to this problem. It is wrong to tell Rwandans not to talk about ethnic groups. That is what sets us apart from President Kagame’s reconciliation strategy. But Rwanda’s biggest problem is the absence of the rule of law and lack of democracy. Why do you say so? Kagame’s government is not ready to accept opposition. This is why they sent young men to beat me and my aide two weeks ago – which was a true reflection of the lack of democracy and freedom of expression in Rwanda. This treatment extends to all opposition politicians. Kagame must accept that there is an opposition that needs political space. We are not enemies. Instead, he uses the genocide ideology against us. The genocide took place 16 years ago and now is the time for democracy. But Rwanda holds elections regularly right up to the grassroots level, while the media has free reign. Do you know how many journalists have been arraigned in court because they wrote political stories? I have even received a letter that was addressed to all media houses asking them not to interview me. That shows that Rwanda lacks freedom of expression. What will you do for the people of Rwanda? Reconciliation is top on my agenda. But President Kagame is also advocating reconciliation. Rwandan people are yet to be reconciled. I have been in the country for three weeks. I have seen and heard what people say; there is no reconciliation. We need courage to talk about the ethnicity issue. How do you intend to tackle the Democratic Liberation Forces of Rwanda – a rebel group fighting President Kagame’s government and Interahamwe (Hutu paramilitary organisation)? The FDLR claims to be fighting for peace. They also accept that some of their members took part in the genocide. Everybody involved in genocide and crime against humanity committed in Rwanda has to be judged. Our argument is political space – it would solve the problem. Do you approve of the way Gacaca (a community justice system inspired by tradition established to try genocide suspects) conducts its proceedings? No. Genocide is a serious crime. I don’t understand why anyone would ask laymen to judge genocide suspects. The International Criminal Tribunal for Rwanda is better placed to handle the matter because it operates with experienced lawyers. Rumour is rife that your mother participated in the genocide. What’s your comment? (Laughs) That is just propaganda by the Rwandan Patriotic Front. I first heard about it when I returned into the country. What is the source of funding for your campaigns? Members of my party. However, I don’t discuss with the media details concerning the sources of our funds. You have been quoted as saying Rwanda’s foreign policy has weaknesses. How do you intend to improve it. We shall do everything in our power to normalise relations with the Democratic Republic of Congo. (Kigali interfered with local Congolese politics, resulting in the death of five million people). Congo has a weak army. I am afraid that once they strengthen it, they will seek revenge. Do you have a personal relationship with France? I have contacts with some politicians in France, but not with France as a country. Once we take over power we shall normalise relations with all countries. UGANDA
Protesting Uganda’s anti-LGBT bill BOSTON–About 50 people rallied here on February 4 to oppose the Anti-Homosexuality Bill being proposed in Uganda–a proposed law that would sentence LGBT Ugandans to life in prison or execution–and call out the legislation’s ties to the right-wing organization “The Family.” The protest was part of a larger effort among LGBT rights activists to expose The Family’s efforts to bolster homophobic policies abroad. February 4 was the date of the annual National Prayer Breakfast, an event that is touted as a way for politicians to “connect” with its religious constituency. Protests were held outside the infamous C Street House in D.C., where congressional members of The Family reside, and in at least 17 cities, “American Prayer Hours” were held to present a progressive, religious alternative. At the Boston rally, protesters demanded that politicians break ties with The Family and that LGBT Ugandans be allowed political asylum in the U.S. Activists denounced the role of fundamentalists like Rick Warren and Scott Lively for supporting homophobic religious leaders in Uganda. Kate Leslie of Join the Impact MA pointed out that the senators who are in The Family and have counseled Ugandan legislators on homophobic policies are the same politicians who continue to stand in the way of full equality for LGBT people in the U.S. Rev. Dr. Kapya Kaoma, a Zambian Anglican priest and author of the report Globalizing the Culture Wars, described the discrimination LGBT Africans face in countries like Nigeria and Uganda, both U.S. allies. He also placed blame for the homophobic atmosphere within the religious community in certain African countries on African bishops who receive funds from the American Religious Right. Pam Chamberlain of the Political Research Associates argued that President Barack Obama’s criticism of the Anti-Homosexuality Bill at the National Prayer wouldn’t have happened without pressure by the LGBT community. In contrast to the mainstream media’s portrayal of Uganda as somehow more susceptible to backward ideas merely because of its “culture” or ties to the church, homophobia is acceptable anywhere as long as there are laws that deny rights to LGBT people. This is true in the U.S., where the Supreme Court only just invalidated anti-sodomy laws in 2003 and where a number of states still have laws against “homosexual conduct.” With the existence of the Defense of Marriage Act and “don’t ask, don’t tell,” and without an Employment Non-Discrimination Act, the non-codified punishments of high unemployment rates, violence and high suicide rates for LGBT people are essentially state-sanctioned. Activists need to counter a losing strategy of compromise with homophobia and transphobia by continuing to organize around the aim of full equality in all matters of the law. Action around a letter-writing campaign to the UN, initiated by high school student Ben Chasen-Sokol, and building for the upcoming Northeast Regional Equality Across America LGBT conference were put forward as next steps for those who want create a movement that can push back the influence of the likes of The Family. Tullow Oil given licence to flare Ugandan gas • Tullow Oil contract under attack from NGO observers Terry Macalister/ The Guardian/Tuesday 16 February 2010 Tullow Oil, the London-based oil operator, has signed contracts with the Ugandan government allowing it to flare gas with the potential to release huge volumes of greenhouse gases into the atmosphere, according to a report by non-governmental organisations. The production-sharing agreement also appears to carry few specific safeguards in the event of spills or other environmental damage and is too financially weighted in favour of Tullow, says the study by the UK-based NGO Platform, which is working in Uganda with the Civil Society Coalition on Oil. The report comes amid intense speculation that Tullow is poised to sell on some of its interests in the new oil province around Lake Albert to more powerful oil groups such as Total of France or Chinese state-owned group CNOOC. In its report, Cursed Contracts: Uganda’s Oil Agreements Put Profit Before People, Platform says: “Urgent changes should be made to the contracts, legislation and regulatory regime covering oil to achieve a measure of environmental protection, to minimise economic distortion through revenue flows and to capture a more appropriate share of the revenues. “Uganda is heading towards oil production in 2010/11 with no oil legislation in place, no revenue management system and is locked into contracts that undermine the country’s sovereign control over its own natural resource” The critics accept that Tullow has made clear its commitment to “good international and industry practice,” but say such words are meaningless when there is no agreed standard or contractual enforcement mechanism in a host country. The issue of flaring is spelled out in article 19.3 of the production sharing agreement, kept secret by the government until it was revealed by NGOs worried that it was unduly weighted in favour of the oil industry. The agreement says: “Associated gas which is not used in petroleum operations … may be flared with the consent of the government, which consent shall not be unreasonably withheld or delayed.” The flaring of gas in Nigeria is regarded as the biggest source of CO2 emissions in sub-Saharan Africa. Shell has repeatedly failed to follow through on promises to put an end to flaring, despite court orders demanding it stop. The report criticises the financial arrangements between the Ugandan government and Tullow, saying the oil company stands to make a financial return of up to 35%, a “very high profit level for the oil industry, even for risky projects”. Tullow said it could not comment directly on the agreement because it had to abide by the Ugandan government’s wishes that it be kept confidential. Oil industry supporters said Tullow had taken a significant risk by investing $600m (£383m) on exploration in Uganda and had potentially put the country on the map as a serious oil producer. They argued Tullow deserved to make a decent financial return and claimed Platform was a small NGO that had shown a long-standing opposition to oil companies wherever they operated. TANZANIA:
By Freddy Macha, London/thecitizen.co.tz / 2010-02-16 British police have questioned a London-based Tanzanian of Asian descent over the mistreatment of a Tanzanian maid. The suspect reportedly brought the 45-year-old maid to Britain in 2006, but the woman from Kondoa District recently developed severe pain in her legs, which prompted her boss to take her to hospital. It was while the maid was in hospital that doctors alerted authorities about her serious health condition. Police questioned her employer over what was described as “inhuman and appalling”conditions she was forced to work in. The maid was then put under the care of an organisation which fights for the rights of domestic migrant workers and the Tanzania Women Association (Tawa), pending further investigations. Police investigating the case learnt that the domestic worker was being paid ten pounds (about Sh22,000) a month, which was given to her at the end of the year. Her personal belongings were kept in a shed while she slept on the kitchen floor. She was made to work every day, without break or leave, and her employer never called her by name, using a bell instead. Her boss also took away her passport, fearing she might escape. Immigration rules in Britain state that an employer cannot own a domestic worker. People brought into the country as domestic workers have the right to change employers as long as they have valid visas and work within households. However, most immigrant domestic workers are unaware of this rule and, therefore, think that their employers own them in what is widely perceived as modern-day slavery. Reports of the maid�s suffering surfaced a month after a Tanzanian couple were arrested and charged with human trafficking and immigration offences. Mr and Mrs Shariff of Birmingham were released on bail and are expected to appear in court next month. Meanwhile, another Tanzanian maid, Ms Zubeda Ali, has won her case at an employment tribunal and is awaiting a decision on her compensation. The 32-year-old woman, who hails from Lindi Region, was brought to Britain to work as a maid in March 2007. After allegations of physical and emotional abuse, her case was referred to various Tanzanian entities in the UK, including Tawa, which who sent her to London’s Brent Law Community Centre. Because of the seriousness of the allegations, the legal body liaised with solicitors specialising in human trafficking cases, who requested a judicial review of Ms Ali’s case. This paved the way for police investigations into the matter. Two months ago, British police officers travelled to Tanzania and met with Ms Ali�s parents in Lindi. In 2008, another Tanzanian domestic worker in the UK, Ms Elizabeth Kawogo, won a case against her employers who were ordered to pay her the equivalent of Sh140 million in compensation by a London labour tribunal. The compensation was for unpaid wages and suffering she endured at the hands of her employers, Mr and Mrs Ramzan Dhanji, who have yet to pay up. Ms Kawogo is currently being assisted by the organisation Kalayaan, which fight for the rights of migrant domestic workers in Britain, and Tawa. CONGO RDC :
Helveta Gets Contract with Societe Generale de Surveillance S.A. Feb 14, 2010 (Close-Up Media via COMTEX) — The project will utilise Helveta’s CI World technology to map, record inventory, and track and trace wood produced from the Congolese forestry sector, from the standing tree in the forest, through wood processing plants, and finally to the nation’s export gates and local wholesale markets. Helveta said CI World will be the software engine of the forest management platform, which through SGS turnkey project management will afford the MECNT visibility and control for the DRC’s national timber production. Helveta Chief Executive Officer, Patrick Newton, commented: “We are pleased to be working with SGS and the MECNT to further expand our footprint across Africa. This project in DRC represents the eighth African nation to deploy Helveta technology and will help the DRC improve its forest sector management activities by ensuring legal compliance in timber production. More importantly, it will allow our clients to demonstrate CI World’s merits as a ‘fit-for-purpose’ software platform providing legality assurance support for countries engaged in or about to engage in the VPA process.” Newton noted. KENYA :
Kenya police beef up security Nairobi – Kenya police said Tuesday they were beefing up security in the country’s western region fearing protests against Prime Minister Raila Odinga’s order to suspend a minister from the area. Odinga at the weekend suspended Agriculture Minister William Ruto – from the western Eldoret region – and Education Minister Samuel Ongeri to be investigated over corruption. But his order was quickly overturned by President Mwai Kibaki, sparking an unprecedented clash between the two leaders of Kenya’s coalition government formed two years ago to end ethnically-driven political violence. “We are intensifying security in remote areas and in towns where demonstrations had been planned since Monday,” a senior police officer said on condition of anonymity. “These are also areas where members of some communities have expressed fears for their security…,” added the officer. Police on Monday outlawed a planned demonstration against Odinga’s directive in Eldoret. “There is certainly high tension and you can only imagine what can happen if we allowed people to go on the streets,” said another senior police officer who did not want to be named. The open clash between Odinga and Kibaki rekindled old feuds between the two who were forced to share power in a unity government set up in 2008 to end weeks of bloody clashes sparked by a disputed presidential poll. The coalition government has been riven with infighting ever since. Standard Chartered Kenya Cut to ‘Hold’ at Alliance (Update1) (Adds comment in second paragraph, ratings of other lenders in third.) Feb. 16 (Bloomberg) — Standard Chartered Bank Kenya Ltd. had its stock recommendation cut to “hold” from “buy” at African Alliance Kenya Securities, which cited recent gains in the lender’s share price. “Owing to recent price outperformance, we downgrade our recommendation,” African Alliance said in an emailed research note today. “We believe its provisioning to be the most conservative in the sector. High forward dividend-yield limits downside share-price risk”. Barclays Bank of Kenya, NIC Bank Ltd., Co-Operative Bank of Kenya Ltd., and Diamond Trust Bank of Kenya Ltd., were retained at “hold”. Equity Bank Ltd. and Housing Finance Ltd. were retained at “sell.” Standard Chartered is expected to remain the most cost- efficient bank in Kenya, African Alliance said. The lender said Nov. 2 its nine-month profit jumped 45 percent from a year earlier as income from loans increased. The share price has risen 21 percent since Nov. 2. –Editors: Ben Holland, Ana Monteiro. US Government Piles Pressure on Kenya’s Reform Agenda www.newstimeafrica.com/16th Feb ,2010 Nairobi,Kenya 16th Feb ,2010..The U.S. Government has welcomed the Prime Minister’s decision to order certain officials to step aside while investigations into the maize and education scandals proceed. As an essential first step to address corruption scandals. In a media statement sent to newsroom by The US Ambassador Michael Ranneberger said that Kenyan people and the international community are waiting to see whether the government’s actions taken so far signal a new decision to take bold actions to fight corruption at all levels with respect to these cases and the other major corruption scandals. The statement further urged for transparent, and independent investigations to be carried out expeditiously, and vigorous prosecutions be taken as warranted by the evidence and government officials at all levels be held accountable for their actions. Ranneberger urged the leaders of the coalition government to work together to ensure that all appropriate steps are taken so that justice is served and the rule of law is respected. “The signing of the National Accord and formation of the coalition government was a watershed which ended the worst crisis in Kenya’s history. The coalition leaders, therefore, have a responsibility to act in a unified way to move forward the historic reform agenda,” the statement further added. The statement from the US Embassy in Kenya was as a result of deep division the emerged over the weekend between President Mwai kibaki and Prime Minister over the suspension of two Minister involved in mega scandals. On Sunday, the PM announced the suspension of Cabinet ministers William Ruto and Prof Sam Ongeri for three months to pave way for investigations into two separate scandals. One scandal involves the loss of an estimated Sh2 billion in the irregular allocation of subsidized maize in 2008 but the figure is disputed by the parliamentary committee on Agriculture which alleged the exact figure is ksh.6 billion, Maize under the national grain reserve, meant for the hungry, was sold to profiteers who made millions, while consumers had to pay high prices for the product. The second scandal concerns fraudulent deals in the Ministry of Education which cost the government Sh103 million meant for the Free Primary Education scheme, where top ministry officials drew inflated impress for seminars. While suspending the Prime Minister quoted a section of the National Accord which he said gave him power to suspend the ministers over the graft allegations. The National Accord was signed in 2008 as a power-sharing deal that ended the post-election violence sparked by the disputed 2007 General Elections. But President Kibaki later said the PM did not have powers to remove ministers from office and therefore, “constitutionally the two ministers remain in office.” The President added he had not been consulted over the matter, and he too, quoted the National Accord and the Constitution, that ministers can only be removed by the President after consultations. ANGOLA :
Pangea says sale price of Angola diamonds rising (Reuters) – Pangea DiamondFields Plc (PDF) said recent sales prices for its diamonds produced in Angola continued to rise. The diamond sector, a key supplier to the jewellery industry, was one of the hardest hit during the recession, but it is seeing a recovery in prices helped by output cutbacks by large producers and a rise in demand. In a statement, PDF said recent sales of diamonds yielded an average price of $160 per carat, before sales taxes. PDF has a long-term target price of $180 per carat, which was set prior to the fall of diamond prices in 2009. The company’s shares were up nearly 5 percent at 1.08 pence at 0903 GMT on Tuesday on the London Stock Exchange. US scientist sees renewable energy potentials in Angola US scientist and university teacher, Luis Fernandez, her e on Monday acknowledged the great potential that Angola has to implement projec t s in the renewable energy sector, which could help in the development of the cou n try. Fernandez made the disclosure to the press on the sidelines of the conference on “Renewable Energy”, which started on Friday, organized by the Ministry of Energ y and Water (Minea) in partnership with the US Embassy. According to the researcher, Angola has great potential to create projects in th e renewable energy field, adding that for this, it is important to invest more, e specially in rural and isolated areas that have no access to public network. Although the government is committed to the electrification of the country, Fern andez said the process could be time-consuming and in order to resolve this situ a tion, the authorities should invest in solar panels, wind systems and small hydr o -electric to supply power to remote communities far from urban areas. “Angola can start with small projects, a challenge that will have to start with small but firm steps as it is done in other parts of Africa such as Cameroon, Kenya and Mozambi que,” he advised. The use of these systems, he noted, contributes to the reduction of defloration, low price of tariff, helps raise the living standard and promotes the productio n of cleaner, healthy and environmentally-friendly energy. “In many parts of the country, the population use wood as their source of energy , harming the natural flora and fauna, in particular but the implementation of r e newable energy can reduce the cutting of trees, as well as improve the state of h ealth, since the inhalation of smoke from burning firewood is causing various di s eases to humans,” he said. According to him, the use of renewable energy will help improve the welfare of t he people who have to walk several miles in search of firewood, as well as preve n t the occurrence of possible fires and air pollution, as well as smoke from fire . Fernandez also defended the need for Angola to share experiences with countries and institutions that are more advanced in this regard, as well as encourage the private sector to improve and develop sustainable renewable energy industry the m ore. He suggested that the private sector could intervene in the technological field, micro-finance projects and training of technicians to ensure the continuity of t he process. Fernandez is a researcher at the Carnegie Institute of Sciences, at the Departme nt of Global Ecology and a visiting professor at Stanford University in the US. SOUTH AFRICA:
Sheffield MP demands Tory leader apologises over South African visit Published Date: 16 February 2010 /By Mark Hookhmam/Source: Sheffield Telegraph SHEFFIELD MP Richard Caborn has demanded that Tory leader David Cameron apologise for visiting Apartheid-era South Africa. An updated biography last year revealed Mr Cameron accepted an all-expenses paid trip to Apartheid South Africa while Nelson Mandela was still in prison. The trip by Mr Cameron in 1989, when he was a rising star of the Conservative Research Department, was funded by a firm that lobbied against the imposition of sanctions on the Apartheid regime. Conservative spokesmen have said the visit was a chance for Mr Cameron to “see for himself” what conditions in South Africa were like. They have noted that he met anti-Apartheid campaigners and opposition politicians while in the country. Mr Cameron acknowledged his party’s “mistakes” over South Africa when he visited former President Mandela in 2006. Nevertheless Mr Caborn, who was an official in the Anti-Apartheid Movement between 1980 and 1994, used the 20th anniversary of Mandela’s release from prison to demand an apology from Mr Camerob. In a letter to the Conservative leader, Mr Caborn said: “When you met Nelson Mandela you dismissed your party’s pro-Apartheid policy as being from a bygone era. “What you failed to make clear at that time was that visit was not your first to South Africa. “In fact, you had taken the extraordinary decision to go on a sanctions-busting visit to South Africa while Mandela was still in jail – a visit that ignored the appeals of anti-Apartheid campaigners within South Africa and the Anti-Apartheid Movement in Britain for the isolation of the regime.” He added: “Your trip, paid for by lobbyists against sanctions, was a long time ago. “But it was then, and is now, a question of values and judgment.” Is Zain Deal a Stretch for Bharti? dealbook.blogs.nytimes.com/February 16, 2010 The potential transaction appears to have the support of Zain’s board. Bharti’s challenge, however, will be convincing its own investors that the African venture is worthwhile, according to Reuters Breakingviews. Investors wiped 9.2 percent off the company’s shares on Monday after the announcement that the two companies were in talks. And Bharti could raise the funds for the purchase without breaking its balance sheet, Breaklingviews says. The company currently has debt of only 0.4 times its $3.5 billion estimated 2010 Ebitda. It could raise roughly $13 billion and still end up with the same leverage — three times the enlarged group’s Ebitda — as its smaller Indian rival, Reliance Communications. Yet that level of leverage could prove too high for Bharti, Breakingviews suggests. Zain’s African operations need heavy investment, the publication notes. In Nigeria, the continent’s fastest growing market, Zain has been losing customers and is struggling to turn around the business. The management of Bharti, experienced in rolling out networks in low-cost markets, is well placed for the challenge. But it will be expensive, Breakingviews argues. If Bharti decides to settle on a lower level of debt — say twice its Ebitda — it will have to raise roughly $2.4 billion selling stock to pay for the purchase of Zain. Bharti has until March 25, when its exclusivity period with Zain expires, to square the financing. Singapore Telecom, Bharti’s second largest shareholder with an indirect 30 percent stake, could play a role, Breakingviews suggests. But, the publication says, investors are worrying that the Indian operator, which twice failed to seal a deal with the MTN Group of South Africa, will stretch too far for an African deal. South African Stocks: Anglo American, Liberty, Mondi, Tongaat Feb. 16 (Bloomberg) — South Africa’s FTSE/JSE Africa All Share Index rose 208.83, or 0.8 percent, to 26,910. 91 by 11:13 a.m. in Johannesburg, extending yesterday’s 1.7 percent rally. The following are among the most active stocks in the South African market today. Anglo American Plc (AGL SJ) rose for a second day, climbing 6.45 rand, or 2.3 percent, to 291.45 rand. BHP Billiton Ltd. (BIL SJ), the world’s largest mining company, increased 3.35 rand, or 1.4 percent, to 236.58 rand. Copper for delivery in three months rallied for a second day, climbing as much as 2.5 percent to $7,039.50 a metric ton in London. Nickel, lead, zinc and aluminum prices also gained. AngloGold Ashanti Ltd. (ANG SJ), Africa’s largest gold producer, increased 5.50 rand, or 1.9 percent, to 296.50 rand, heading for its highest close in almost a month. Impala Platinum Holdings Ltd. (IMP SJ), the world’s second-largest platinum producer, advanced 2.20 rand, or 1.2 percent, to 187.20 rand. Gold and platinum gained for a second day in London as the dollar weakened, boosting the appeal of precious metals as an alternative investment. Liberty Holdings Ltd. (LBH SJ) slid 41 cents, or 0.6 percent, to 67.10 rand, paring yesterday’s 2.3 percent increase. UBS AG cut its recommendation on the insurer controlled by Africa’s largest bank to ”neutral” from “buy.” Mondi Group (MND SJ) advanced 77 cents, or 1.8 percent, to 43.77 rand. A close at this price would be the biggest gain in three weeks. Europe’s largest office-paper maker said underlying operating profit in the second half was higher than that reported in the first six months of its fiscal year. Sasol Ltd. (SOL SJ) rose for a second day, advancing 4.05 rand, or 1.5 percent, to 275.85 rand. Citigroup Inc analyst Tassin Meyer rated the world’s biggest maker of motor fuel from coal “buy” in new coverage, with a price estimate of 350 rand. Separately, crude oil rose after gains in Asian equities boosted confidence that a global economic recovery will lead to higher fuel demand. Tongaat Hulett Ltd. (TON SJ) climbed 2.23 rand, or 2.3 percent, to 100.55 rand. The sugar company said annual earnings before one-time items rose as much as 45 percent and the company probably earned 2.85 billion rand in net income in the year ended Dec. 31, or 27.50 rand a share. –Editor: Ana Monteiro. Swine Flu Outbreak Threatens At World Cup “One of our biggest nightmares is the fact that 2010 is going to be held in June when there is a possibility of another bout of H1N1,” Motsoaledi said. The month-long tournament, hosted in Africa for the first time, is expected to attract 450,000 tourists during the South African winter. Motsoaledi said the department of health had managed to acquire 1.3 million doses of the H1N1 vaccine and another 3.5 million doses from the World Health Organisation (WHO). “We received a letter from the World Health Organisation that they are going to donate to South Africa 3.5 million doses of H1N1 which will arrive in this country by March,” he said, adding that the WHO donation saved South Africa about 250 million rand ($32.48 million). The WHO, which declared swine flu a pandemic in June last year, has been in discussions with South African government officials on how to reduce the risk of the influenza spreading at the tournament. The H1N1 virus has spread globally and killed 15,000 people since first appearing in early 2009, according to the World Health Organisation, although the real toll is likely to be much higher. Pregnant women and people with health problems such as diabetes are the most at risk. “We are going to be vaccinating…starting with pregnant women, people at entry points, people who are involved in sports administration,” said Motsoaledi. He said vaccinations would start soon. (Reporting by Wendell Roelf; Editing John Mehaffey) Manic security on SA cricket tour of India A story goes that one of the South African journalists covering that trip had to remove a wall in his hotel room just so that he could file a piece – now we all get free wi-fi in the press box. Still there are frustrations. The manic security being top of the list. One colleague on this trip had his bag searched five times on Monday, his newspaper confiscated because he might start a fire and his laptop mistaken for a camera, which could not be allowed into that gate in the stadium. I have the peculiar case of the double-bag search that takes place each morning, literally within four metres of each other. What pray tell could I pick up between the gate and the door that would endanger the patrons at Eden Gardens? And trying to explain this bit of common sense to security officials is a fruitless task. They’re there to search you and, by golly, search you they will. The metal detectors are a bit of a joke. They appeared to be the first line of metal detectors ever made – tiny grey pipe like structures. I think they work because they beep every time you walk through them – which brings another bout of searches, both body and bag. With the recent troubles in India – a bomb blast in Pune on Saturday night that targeted foreign tourists – and then some provincial Maoist group that attacked an army barracks just outside of Kolkata on Monday night, the need for extra security is understandable. Security around the South African squad has been beefed up and the players have been told not to go out at night or frequent any shopping malls unless accompanied by some security officials. It looks quite impressive and for the players – surrounded as they are by a squad of policemen – I’m sure it is, but how effective it is for the rest of us I’m not so sure. Danny Jordaan and those tasked with looking after the World Cup would best be served looking elsewhere for an example of how to keep the football showpiece safe. AFRICA / AU :
UPDATE 1-Bharti eyes debt financing for Zain Africa buy-sources * Majority of the loan to be in foreign currency-sources * StanChart, Barclays leading funding plans-source * Funding could include bridge, other options-source * Bharti also considering rights issue – TV (Adds detail, background) NEW DELHI/MUMBAI, Feb 16 (Reuters) – India’s Bharti Airtel (BRTI.BO: Quote, Profile, Research), which has offered $10.7 billion for Kuwaiti telecom Zain’s (ZAIN.KW: Quote, Profile, Research) African assets, is likely to finance the majority of the deal’s purchase price with foreign currency loans, three people familiar with the matter said. Zain, which is selling its telecoms operations in 15 African countries to Bharti, said on Tuesday the deal included $10 billion to be paid at completion and the remaining $700 million by the end of the year. Separately, the NDTV Profit television channel in India said Bharti was considering a rights issue to help fund the deal. However, at the time of its ultimately thwarted merger talks with South Africa’s MTN Group (MTNJ.J: Quote, Profile, Research) last year, Bharti had said there was no plan for any rights issue. A Bharti Airtel spokesman declined to comment on Tuesday on how the firm would fund the deal. Standard Chartered (STAN.L: Quote, Profile, Research) and Barclays (BARC.L: Quote, Profile, Research) are advising India’s largest telecoms firm on the merger and its funding, one of the sources told Reuters. One source said StanChart was looking to lead roughly $5 billion of borrowing for Bharti, and added funding could include bridge loans and other debt issuances. Borrowing conditions have improved since Bharti secured loan commitments of $5 billion for its failed deal with MTN. Standard Chartered and Barclays had led that planned loan, with Standard Chartered underwriting a part of it. Separately, television channel ET Now said Bharti has also sounded out the country’s top lender, State Bank of India (SBI.BO: Quote, Profile, Research), and foreign banks Goldman Sachs (GS.N: Quote, Profile, Research) and Nomura (8604.T: Quote, Profile, Research), in addition to StanChart and Barclays, on funding the Zain deal. State Bank of India had agreed to provide $2 billion in loans to Bharti during its tie-up talks with MTN. Bharti has a low debt-equity ratio, but concerns that a huge debt burden for the Zain deal could stretch its balance sheet has weighed on its shares. Bharti stock fell 4.5 percent on Tuesday, after dropping 9.2 percent in the previous session. It was the second-worst performing stock among the benchmark index .BSESN components last year. BNP Paribas Securities on Tuesday cut its rating on Bharti shares to “hold” from “buy”. “We believe deal will be dilutive and significant execution risks persist,” analysts Sameer Naringrekar and Kunal Vora said in a note. (For a Q+A, please double-click [ID:nSGE61E0BG] (Additional reporting by Pratish Narayanan; Editing by Ranjit Gangadharan) UN: Cocaine being traded for arms in West Africa DAKAR, Senegal — Cocaine shipped to West Africa by Latin American drug cartels is now being traded for arms, the U.N.’s drug czar said Monday — an exchange of contraband that is especially dangerous in a region now home to cells of an al-Qaida-linked terror group. Antonio Maria Costa, executive director of the United Nations Office on Drugs and Crime, says “there is more than just spotty evidence” indicating a link between drug traffickers and terror groups. “And before this becomes a very serious problem, it has to be dealt with and nipped in the bud,” Costa said in an interview with The Associated Press, on the sidelines of a seven-nation drug summit in the Senegalese capital of Dakar. Cocaine from South America has been moving through the West African coast for several years, and experts believe drugs are then parceled out to smugglers who move the cocaine north by boats and by road. One suspected smuggling route crosses portions of the Sahara desert controlled by insurgents. The cocaine-for-arms trade is especially worrying given the recent expansion of an al-Quaida-linked terror group, which was once based exclusively in Algeria but now has tentacles in Mauritania, Mali and Niger. “There is plenty of evidence of a double flow. (Of) drugs moving, arriving into West Africa from across the Atlantic … and the trading — exchange — of cocaine for arms,” Costa said. For at least five years, traffickers in Latin America have been using the poor and politically unstable countries of West Africa as transit points for Europe-bound cocaine. Until recently, officials believed the drugs came by private plane and were divided out to smugglers paid in cash to move it north. Costa did not say how extensive the cocaine-for-arms exchange was thought to be, or which countries were involved. Several relatively stable West African countries have a foot in the Sahara — including Mali and Niger, whose porous border has long a smuggling route for ethnic Tuareg rebels fighting a rebellion there for years. There has been growing concern that the rebels are believed to be collaborating with Al-Qaida in the Islamic Magreb, an Algeria-based terror group that joined Osama bin Laden’s terrorist network in 2006. Last year, four European tourists were kidnapped at the border of Mali and Niger. They are believed to have been kidnapped by Tuareg gunmen but then handed over to the terror group, which later murdered one of the British citizens after one of their demands was not met. And as recently as December, three men in their 30s from Mali were arrested and accused of being al-Qaida associates plotting to ferry drugs through the Sahara desert to raise money for terror attacks. Prosecutors called it evidence of a growing alliance between terror chiefs and drug lords. Costa said there is also new evidence of drug production in West Africa. In 2009, U.N. officials discovered a warehouse in Guinea’s capital containing the precursor ingredients for manufacturing synthetic drugs, such as ecstasy. He said traffickers in some countries in the region have gone so far as to try their hand at growing opium — the raw ingredient used to make heroine which is almost exclusively grown in Afghanistan. “But the climate is not right — and the soil is not right,” he said. Congo, Guinea, Kenya: Sub-Sahara Africa Bond, Currency Preview Feb. 16 (Bloomberg) — The following events and economic reports may influence trading in sub-Saharan African bonds and currencies today. Bond yields and exchange rates are from the previous session. Democratic Republic of the Congo: The central African nation will announce the amount of Treasury bills it intends to sell at its next auction. The Congolese franc was unchanged at 915.1724 to the dollar as of 7:39 a.m. in the capital, Kinshasa. Seven-day bills were sold at an average yield of 68.19 percent by the bank on Feb. 10. Guinea: Guinean Prime Minister, Jean Marie Dore, has named a new government, Mandjou Diabate, director of the press office for the presidency, said on national television late yesterday. The Guinean franc little unchanged at 5,027 to the dollar as of 6:39 a.m. in Conakry, the capital. Kenya: The east African country’s Attorney General, Amos Wako, said Kenya’s political parties should end a dispute over whether some ministers should be removed from their posts because it could cause the coalition government to collapse and prompt early elections. The Kenyan shilling weakened 0.9 percent to 77.57 versus the dollar as of 9:37 a.m. in Nairobi. Mauritius: The country’s central bank will sell treasury bills and notes. The Mauritian rupee strengthened 0.3 percent against the dollar to 30.15 as of 10:36 a.m. in the capital, Port Louis. –Editors: Ana Monteiro, Antony Sguazzin Free Trade, Loss of Support Systems Crippling Food Production in Africa ScienceDaily/Feb. 16, 2010 Market reforms that began in the mid-1980s and were supposed to aid economic growth have actually backfired in some of the poorest nations in the world, and just in recent years led to multiple food riots, scientists report Feb 15 in Proceedings of the National Academy of Sciences. “Many of these reforms were designed to make countries more efficient, and seen as a solution to failing schools, hospitals and other infrastructure,” said Laurence Becker, an associate professor of geosciences at Oregon State University. “But they sometimes eliminated critical support systems for poor farmers who had no car, no land security, made $1 a day and had their life savings of $600 hidden under a mattress. “These people were then asked to compete with some of the most efficient agricultural systems in the world, and they simply couldn’t do it,” Becker said. “With tariff barriers removed, less expensive imported food flooded into countries, some of which at one point were nearly self-sufficient in agriculture. Many people quit farming and abandoned systems that had worked in their cultures for centuries.” These forces have undercut food production for 25 years, the researchers concluded. They came to a head in early 2008 when the price of rice — a staple in several African nations — doubled in one year for consumers who spent much of their income solely on food. Food riots, political and economic disruption ensued. The study was done by researchers from OSU, the University of California at Los Angeles and Macalester College. It was based on household and market surveys and national production data. There are no simple or obvious solutions, Becker said, but developed nations and organizations such as the World Bank or International Monetary Fund need to better recognize that approaches which can be effective in more advanced economies don’t readily translate to less developed nations. “We don’t suggest that all local producers, such as small farmers, live in some false economy that’s cut off from the rest of the world,” Becker said. “But at the same time, we have to understand these are often people with little formal education, no extension systems or bank accounts, often no cars or roads,” he said. “They can farm land and provide both food and jobs in their countries, but sometimes they need a little help, in forms that will work for them. Some good seeds, good advice, a little fertilizer, a local market for their products.” Many people in African nations, Becker said, farm local land communally, as they have been doing for generations, without title to it or expensive equipment — and have developed systems that may not be advanced, but are functional. They are often not prepared to compete with multinational corporations or sophisticated trade systems. The loss of local agricultural production puts them at the mercy of sudden spikes in food costs around the world. And some of the farmers they compete with in the U.S., East Asia and other nations receive crop supports or subsidies of various types, while they are told they must embrace completely free trade with no assistance. “A truly free market does not exist in this world,” Becker said. “We don’t have one, but we tell hungry people in Africa that they are supposed to.” This research examined problems in Gambia and Cote d’Ivoire in Western Africa, where problems of this nature have been severe in recent years. It also looked at conditions in Mali, which by contrast has been better able to sustain local food production — because of better roads, a location that makes imported rice more expensive, a cultural commitment to local products and other factors. Historically corrupt governments continue to be a problem, the researchers said. “In many African nations people think of the government as looters, not as helpers or protectors of rights,” Becker said. “But despite that, we have to achieve a better balance in governments providing some minimal supports to help local agriculture survive.” An emphasis that began in the 1980s on wider responsibilities for the private sector, the report said, worked to an extent so long as prices for food imports, especially rice, remained cheap. But it steadily caused higher unemployment and an erosion in local food production, which in 2007-08 exploded in a global food crisis, street riots and violence. The sophisticated techniques and cash-crop emphasis of the “Green Revolution” may have caused more harm than help in many locations, the study concluded. Another issue, they said, was an “urban bias” in government assistance programs, where the few support systems in place were far more oriented to the needs of city dwellers than their rural counterparts. Potential solutions, the researchers concluded, include more diversity of local crops, appropriate tariff barriers to give local producers a reasonable chance, subsidies where appropriate, and the credit systems, road networks, and local mills necessary to process local crops and get them to local markets. 2nd UPDATE: Foster’s 1H Net Profit A$355.7M, Below Expectations online.wsj.com/By Cynthia Koons /Of DOW JONES NEWSWIRES /FEBRUARY 16, 2010 (adds detail throughout) SYDNEY (Dow Jones)–Foster’s Group Ltd. (FGL.AU) said Tuesday first-half net profit dropped 13.5%, falling short of analysts’ expectations even after management warned in December that its wine division was underperforming given unfavorable currency moves and the U.S. recession. Almost exactly a year after Foster’s said it was structurally separating–but not demerging–its wine division in an effort to improve its performance, it said net sales of wine fell in every region, amounting to a 14% decline in earnings before interest, tax and SGARA–self-generating and regenerating assets–for that division. In the Americas alone, net sales of wine fell 62% from the prior year, while in Europe, the Middle East and Africa, net sales revenue fell 76%. The group had previously warned currencies would cost the wine division up to A$90 million of earnings and, as it turned out, it cut A$83 million from the unit’s earnings in the period. “Restructuring can and often fails to achieve a fundamental improvement in a business,” Macquarie analysts said in a research note. “While Foster’s is optimistic about further restructuring benefits, if these are lost or competed away and management are unable to raise profits quickly as a result of such initiatives, there is little prospect management can build long-term value.” Foster’s wine division has been cause for writedowns nearly every year since the group acquired it in the early 2000s, one analyst said, adding the group has written down A$1.9 billion over the life of that division. And while the group said a year ago it would structurally separate the wine and beer divisions, rather than demerge the two, Chief Executive Ian Johnston said on a conference call Tuesday that the group is leaving all of its options open. “We will, of course, continue to evaluate all structural options that are consistent with shareholders’ interest,” Johnston said, adding that nothing has been ruled out. Management, he said, is interested in maximizing the company’s performance and retaining all of its options in the process. The group offered little guidance besides saying it was committed to its transformation program announced last February after the group failed to find a buyer for its wine business. Management expects to realize between A$70 million and A$80 million of cost savings in fiscal 2010 and said it is still on track to deliver A$100 million of cost savings in fiscal 2011. Foster’s reported a net profit of A$355.7 million for the half year ended Dec. 31, down from A$411.3 million a year earlier and below expectations for A$380.6 million, according to a Dow Jones Newswires poll of five brokers. Total operating revenue for the half year fell 4.7% to A$2.40 billion, from A$2.52 billion a year earlier. The beer division, Carlton & United Breweries, reported first-half earnings before interest and tax of A$486.4 million, up 6.6%. But that failed to excite analysts, who raised concerns about Foster’s losing market share in beer during the first half. Johnston said the group is largely losing market share to smaller competitors, rather than rival Kirin-owned Lion Nathan, and that it will take more than six months to recover lost market share. Foster’s declared an interim dividend of 12 cents a share, the same as last year, which IG Markets analyst Ben Potter said missed some analysts’ expectations. As for its troubles in the U.S., Foster’s said economic conditions remain challenging but there are “emerging signs of stabilization.” “Recent performance improvement in key states provides confidence that momentum will build through the balance of the year,” the group said. At 0420 GMT, shares in Foster’s were down 2.5% at A$5.42, while the benchmark S&P/ASX 200 index was up 0.5%. -By Cynthia Koons; Dow Jones Newswires; 61-2-8272-4691; cynthia.koons@dowjones.com African Union to hold Special Meetings on Somalia and Madagascar, Says Official Peter Clottey /www1.voanews.com/ 16 February 2010 | Washington, DC The spokesman for the African Union (AU) says the continental body will soon hold special meetings to address the political and security instabilities in both Somalia and Madagascar. El-Gassim Wane said the AU will evaluate how best to help ensure a return to peace and stability in Somalia. “We will be organizing on the 17th of this month a meeting on Somalia that brings together the troop contributing countries to review the situation in Somalia. And agree on how best the Au and its member states should continue to assist the process of promoting peace justice and reconciliation in Somalia,” he said. President Sheikh Sharif Sheikh Ahmed’s government has been battling hard line Somali insurgent groups, including al-Shabab which has vowed to overthrow the administration. Wane said the meeting will also focus on additional troops to help its peacekeeping efforts in Somalia. “The meeting is intended to review the operations of the mission on the ground and how best we could speed up the presence of additional troops so that the mission can reach its authorized strength. (And) how best also we can support capacity building for the Transitional Federal Government (TFG) of Somalia,” Wane said. The African Union’s peacekeeping mission in Somalia also known as AMISOM is mandated to support the transitional governmental structures, implement a national security plan, train the Somali security forces, and assist in creating a secure environment for the delivery of humanitarian aid. Wane said the continental body is pleased with AMISOM’s work. “I think the mission is doing a great job under very difficult circumstances. As you know we have 5,300 troops on the ground out of an authorized strength of about 8000… The mission is doing an excellent job on the ground not only in providing protection for the TFG, but also in trying to promote confidence building… and proving humanitarian assistance,” Wane said. Meanwhile, in Madagascar, Vice Prime Minister Ny Hasina Andriamanjato recently offered his resignation – – a move analysts say is a sign of escalating tensions within the government over how to end the ongoing political crisis. Wane said the continental body wants a quick return to democracy in Madagascar. “The Au has been involved in efforts to restore constitutional order in that country. We were hopeful that the Maputo Agreement of August last year and the Addis Ababa Act of November 2009 will pave the way for the speedy restoration of constitutional order in that country,” Wane said. Deferring al-Bashir trial will not help Sudan IN THE debate over the International Criminal Court’s (ICC’s) indictment of Sudanese President Omar al-Bashir, the respective sides — the justice purists and the peace pragmatists — give no ground. Recent developments at the ICC and the African Union (AU) made that clear. But neither of these extremes offers good law or good policy. As the ICC upheld an appeal clearing the way for al-Bashir to be charged with genocide, in addition to the crimes against humanity and war crimes charges he already faces, the AU was quick off the mark, criticising the decision as detrimental to the peace process in Sudan. In truth, the decision is a technicality — going to evidentiary standards that must be discharged prior to the issue of arrest warrants — and it would be a negligent prosecutor who didn’t appeal against the initial, mistaken interpretation that sufficient evidence had not been established to support a genocide charge. But it isn’t hard to see why the decision might be read as an intensification of the campaign against al-Bashir. In the public’s perception, genocide represents the worst of crimes. Its possible addition to the charge sheet invites the public to view al-Bashir as even more irredeemable. But if a charge of genocide is a powerful public advocacy tool, it’s not an effective legal strategy. Genocide is notoriously difficult to prove. The prosecution has to establish that the perpetrator had a specific intent to destroy, in whole or in part, a particular national, ethnic, racial or religious group. It isn’t enough to show the perpetrator intended to intimidate or oppress the group, or that the perpetrator intended to destroy all his political opponents, as political groups do not fall within the prescribed list. This is why legal observers have questioned the prosecutor’s initial decision to charge al-Bashir with genocide against members of the Fur, Marsalit and Zaghawa groups in Darfur. If he were to be acquitted of these charges , many will see the judgment as a form of exoneration, a diminution of his legal responsibility, rather than what it is: an inability merely to establish the specific intent. It may have been wiser simply to proceed with charges of crimes against humanity and war crimes — which, legally speaking, entail no fewer deaths and no less responsibility than does genocide. At the AU last week, there was no greater willingness to see the bigger picture. Its statement on the ICC contained no repetition of the decision at Sirte, Libya, last year to withhold co- operation from the ICC in al-Bashir’s arrest and surrender but it did endorse SA’s proposal regarding deferrals of cases before the ICC. The AU is up in arms as the United Nations Security Council, which has deferral power, has not responded to its request for deferral of the Sudan matter. The attention given to deferral as a way forward seems misplaced. Certainly it’s difficult to imagine how al-Bashir, unless particularly shortsighted, would be appeased by the prospect of a one-time deferral. Deferral, if granted, means the ICC will not pursue a case for 12 months, but after that the case springs back into action unless deferred again. This means that unless al-Bashir plans on staying in power in perpetuity and every year pressing upon his friends the need for deferral, he will have to face justice. The prospect of deferral can only generate a perverse incentive for al-Bashir never to relinquish office. SA’s proposal for dealing with deferral requests only amplifies the perverse incentives. In terms of the proposal, if the Security Council has not acted on a deferral request within six months, the General Assembly can decide the matter. What this would mean for al-Bashir is that the six- month period during which the Security Council entertains the request would be most usefully spent not in bringing about reform in Sudan and progress towards peace, but in lobbying members of the General Assembly to grant the deferral request. It is likely only to intensify political wrangling on the matter.
n Fritz is the director of the Southern Africa Litigation Centre. UN /ONU :
Top UN official in Côte d’Ivoire holds talks with Prime Minister over political crisis 15 February 2010 – The head of the United Nations peacekeeping operation in Côte d’Ivoire met today with the country’s Prime Minister to stress the need to resolve mounting political tensions in the fragile West African country, where the Government and the independent electoral authority have just been dissolved ahead of scheduled elections. Y. J. Choi, the Secretary-General’s Special Representative and the head of the mission (known as UNOCI), held talks in Abidjan with Guillaume Soro “during this delicate and sensitive moment,” according to a statement released by the mission. Mr. Choi is holding talks with Ivorian political leaders this week to try to assist the country’s political process, at risk after violent tensions flared in several towns this month. UNOCI also has its forces on alert in case of renewed fighting. Ivorians are supposed to go to the ballot box next month to elect a president for the first time since the country was split in two by civil war in 2002. But those elections, originally intended to be staged in 2005, have been repeatedly delayed, and last week voter registration was suspended. President Laurent Gbagbo also dissolved both the Government and the Independent Electoral Commission (IEC) on Friday. Speaking to journalists after his meeting with Mr. Soro, Mr. Choi emphasized the importance of consolidating the achievements made so far in the lead-up to the elections, including the provisional electoral list of eligible voters. A definitive electoral list must be established as soon as possible as part of wider efforts to normalize the situation and bring calm, the Special Representative said. “I’m confident that with their refined sense of politics and culture of non-violence, Ivorians will be able to find a solution calmly and quickly,” he said. Iran rejects US military dictatorship comments TEHRAN, Iran — Iran’s foreign minister hit back on Tuesday against U.S. Secretary of State Hillary Rodham Clinton’s warning that the Islamic republic is becoming a military dictatorship. Foreign Minister Manouchehr Mottaki retorted that it is the United States that has become a military dictatorship, pointing to its wars in Vietnam through Iraq and Afghanistan. He criticized Clinton’s Mideast tour, which took her to Saudi Arabia on Monday, saying it was “overflowing with contradictions and incorrect actions.” “Those who have been the very symbol of military dictatorship over the past decades, since the Vietnam War until now, see everyone else in the same way,” Mottaki said at a press conference with his Turkish counterpart, Ahmet Davutoglu. Clinton’s comments a day earlier reflected Washington’s increasingly pessimistic outlook for persuading Iran to negotiate limits on its nuclear program, which the U.S. believes is aimed at producing a bomb. Clinton warned that the elite Revolutionary Guard’s growing influence in Iran was pushing the country into military dictatorship. Mottaki repeated Iran’s stance that its nuclear program is peaceful and “absolutely legitimate.” He said Clinton’s remarks were based on “inappropriate interpretations.” He also implicitly urged China and Russia to resist U.S. efforts to persuade them to back further U.N. sanctions against Iran over its nuclear program, warning them not to follow Washington’s lead. “It is clear for our Chinese friends that the U.S plans to have upper hand in Africa once it dominates the Middle East’s energy resources,” he said, referring to Beijing’s widespread influence in Africa. He also said Iran would increase its economic cooperation with Moscow if it chooses “correct and logical” stances toward Iran. Russia and China have been key economic partners of Iran and have resisted harsh sanctions against it. Mottaki also denied a report Monday on a semi-official Iranian news agency that the U.S., Russia and France had sent a new proposal to Iran on providing fuel to Tehran nuclear research reactor. Mottaki said the report was incorrect. All three countries also denied the report. USA :
Black women don’t need guilt trip from abortion billboard Shame of abortions is burden of entire black community February 16, 2010/BY MARY MITCHELL Sun-Times Columnist Although most of us, whatever our religious beliefs, respect a woman’s right to choose, there are others who believe abortion is the taking of human life. I know better than to tell another woman what to do should she suffer an unwanted pregnancy. Life can take such twists and turns that during rough periods it takes all of your strength just to keep you going. And let’s face it: Some of us are so self-centered we can’t handle the detour of an unplanned pregnancy. Still, I wouldn’t want to point any woman toward an abortion clinic. For some women — in the quiet moments of their regrets — they will hear the cry of that unborn child. Nor would I want to urge another woman to bring into the world a child that she believes she is unable to take care of. Thirty-seven years after Roe vs. Wade, the weight of exercising the right to end an unwanted pregnancy is still a personal burden each woman carries alone. That is why I find the billboard campaign that targets black women with a frightening anti-abortion message disturbing. The ad, which has gone up across Atlanta, features a beautiful black baby and the words: Black Children Are An Endangered Species. Honestly, black women can’t catch a break. Black children are gunned down disproportionately in the streets, and now anti-abortion advocates are suggesting that black women are committing genocide. These are the facts: Thirty-seven percent of abortions occur to black women, 34 percent to non-Hispanic white women and 22 percent to Hispanic women, according to the Guttmacher Institute. Nationally, black women were three times more likely to get an abortion than white women, according to the Centers for Disease Control and Prevention. Women who are most likely to have an abortion are black women ages 18-24 who are either separated or unmarried and have annual incomes of less than $15,000 or have Medicaid. Women who have never married obtain two-thirds of all abortions, and 60 percent of women who have abortions have at least one child. Given the single, never-been-married status of so many black women, is it really “shocking” that black women are three times more likely to get an abortion than white women? I’m not shocked. I’m saddened. While I applaud the black ministers who are leading the charge to educate black women about the alarming abortion rate, these men are failing to address the root of this problem. How often are men urged, from the pulpit, to practice safe and responsible sex? Where are the billboards that urge black men to marry their baby’s mamas so these women see their children as blessings and not mistakes? The shame of these abortions is the shame of an entire community — not of black women. Unfortunately, through our laws and policies, we have convinced these young women that an unborn child is not a human being. And we have persuaded them that there is little difference between the morning after and a few weeks down the road. But while a much quieter debate, abortion always has been a divisive issue in the African-American community. In “African-American Women and Abortion,” an essay by Loretta J. Ross that traces the advocacy of black women in the planned parenting movement, the author noted that both the “left” and the “right” aligned themselves against black women when it came to birth control. “That such disparate forces aligned themselves against African-American women demonstrated that both white bigots and black sexists could find common cause in the assertion of male authority over women’s decision regarding reproduction,” Ross wrote. Although critics of Planned Parenthood still argue that the group had racist intentions, “[black women] perceived the free services to be in their own best interests,” Ross wrote. Frankly, young women who end up in an abortion clinic aren’t thinking about politics. They are trying to survive. The black abortion billboard reflects rhetoric that will cause a commotion. But it will not change this tragic trend. Rand Snaps Two-Day Slide as Weaker Dollar Buoys Precious Metals Feb. 16 (Bloomberg) — The rand snapped a two-day decline against the dollar as higher prices for gold and platinum boosted earnings prospects for the world’s biggest producer of precious metals. The currency of Africa’s biggest economy appreciated as much as 0.7 percent to 7.6797 per dollar before trading 0.6 percent stronger at 7.6903 by 9:42 a.m. in Johannesburg, from 7.7350 yesterday. Against the euro, it strengthened 0.2 percent to 10.5062. Gold gained for a second day on speculation the dollar may weaken as investors await measures the European Union may take to rescue debt-laden Greece. Platinum also advanced as a weaker dollar boosted prices for the metals that are priced in U.S. currency. “As precious metals have strengthened we’ve seen the so- called resource-based currencies do better,” said William van Rijn, a currency trader at Nedbank Group Ltd. in Johannesburg. “That’s helping the rand a bit.” Bullion, which along with platinum accounts for almost a quarter of South Africa’s exports according to the Johannesburg- based Chamber of Mines, rose as much as 1.4 percent to $1,115.20 an ounce. Platinum gained 1.4 percent to $1,535 an ounce. South Africa is the world’s biggest producer of platinum and the third-largest supplier of platinum, often causing the rand to move in tandem with the price of the metals. Government bonds fell, pushing up the yield on the benchmark 13.5 percent security due September 2015 by 1 basis point to 8.36 percent. The bond’s price, which moves inversely to the yield, dropped 7 cents to 122.55 rand. –Editors: Ana Monteiro, John Kohut. We still have a lot to learn from Nelson Mandela THE 20TH anniversary this week of Nelson Mandela’s release from prison gives sufficient reason to ask if we will ever learn from his example. This is not the easy story line about the man who was imprisoned under apartheid for 27 years, yet became president of South Africa without an embittered heart. Nor is it the story in which the media are comparing his legacy to the current commotion under President Jacob Zuma, whether it be HIV, the disparity and crime in the townships, or Zuma’s now legendary inability to keep his zipper up. Having been to South Africa twice in the last eight months, there is much degradation to be seen. But one must also still remark how amazing that country is, only 16 years out of apartheid. It is hard for the United States to throw stones since it took a full century after ending slavery to establish civil rights laws for African Americans. No, the Mandela we should be thinking about here in the United States is the one whose prescience remains unanswered by us. When Mandela came to Harvard University in 1998 to receive an honorary degree, he said, “The current world financial crisis also starkly reminds us that many of the concepts that guided our sense of how the world and its affairs are best ordered, have suddenly been shown to be wanting.’’ He noted how economic theorists went “unchallenged in the day-to-day operations of a system that operated in the interests of the powerful.’’ We sure learned a lot in the decade since, didn’t we? Not only are we back to hearing about millions in cash and stock bonuses to the heads of taxpayer-bailed-out banks, it appears that someone got to President Obama to tone down his populist outrage. As the Democratic nominee for president in 2008, Obama said, “It would be unacceptable for executives of these institutions to earn a windfall at a time when the US Treasury has taken unprecedented steps to rescue these companies with taxpayer resources.’’ Just last month, he was using “fat cat’’ rhetoric to criticize a system “that makes a few people obscene amounts of money but doesn’t add value to the economy.’’ But this week, Obama told Bloomberg Business Week that he does not “begrudge’’ the $9 million in stock bonuses to Goldman Sachs CEO Lloyd Blankfein and the $17 million bonus to JP Morgan Chase CEO Jamie Dimon. Obama said the bonuses indeed represented an “extraordinary amount of money’’ to the average person but then brushed it off by adding “there are some baseball players who are making more than that and don’t get to the World Series either, so I’m shocked by that as well . . . I know both those guys; they are very savvy businessmen.’’ Obama needs to review the part of Mandela’s Harvard speech that said the world financial crisis calls for a “fundamental rethinking and reconceptualization.’’ The rest of us can revisit the part of the speech where Mandela said, “The greatest single challenge facing our globalized world is to combat and eradicate its disparities . . . we constantly need to remind ourselves that the freedoms which democracy brings will remain empty shells if they are not accompanied by real and tangible improvements in the material lives of the millions of ordinary citizens of those countries.’’ We did not learn much from that, either. While the media feasts on the problems of South Africa, which has the second-highest income disparities in the world according to the CIA Factbook, we are not setting much of an example, despite our wealth and even after we put an African American in the White House. The income inequality of the United States is statistically worse than China, Nigeria, and Nicaragua. It is the 20th anniversary of the freedom of Nelson Mandela. But the evidence remains scant that we are serious about his dream of economic freedom for all. Derrick Z. Jackson can be reached at jackson@globe.com. Tuskegee Airmen Remembered The Tuskegee Airmen were remembered at the New Mexico State Fair grounds Saturday. At a time when black men were stigmatized as lacking intelligence, skill, courage and patriotism, these dedicated young men enlisted to become america’s first black military airmen. They came from many sections of the country and trained to serve in the army air corps in Tuskegee Army Airfield in Alabama. Philip Tibbs the son of a Tuskee Airman say “it’s a recognition that’s long overdue of what these men and women had to go through during their time frame in the armed forces.” The first class began in July 1941 and completed training in March 1942. This is one of the events planned by New Mexico’s office of African American Affairs in honor of Black History Month. CANADA :
China’s Iron-ore Imports from S. Africa, Ukraine, Canada up in 2009 Australia, Brazil and India remained the largest iron ore suppliers to China in 2009, but China’s imports from South Africa, Ukraine and Canada more than doubled last year from a year earlier. Australia, Brazil and India remained the largest iron ore suppliers to China in 2009, but China’s imports from South Africa, Ukraine and Canada more than doubled last year from a year earlier, according to the General Administration of Customs (GAC). China imported 34.13 million tonnes of iron ores from South Africa in 2009, a rise of 140 percent year on year, said a document posted at the GAC’s website. Last year, China’s imports of iron ores from Ukraine and Canada stood at 11.58 millions tonnes and 8.65 million tonnes, up 150 percent and 130 percent, respectively. Australia, Brazil and India remained the three largest iron ores suppliers to China last year. Imports from Australia rose 42.9 percent to 260 million tonnes. Brazil exported 140 million tonnes to China, up 41.5 percent. Imports from the two nations accounted for 64.4 percent of China’s total iron ore imports in 2009, said the GAC document. China’s imports from India rose 18 percent to 110 million tonnes last year, accounting for 17.1 percent of China’s total iron ore imports. China’s imports of iron ores in 2009 rose 41.6 percent year on year to hit 630 million tonnes, a record high. The average price was 79.9 U.S. dollars per tonne, down 41.7 percent from the previous year. The iron ore imports cost the world’s third largest economy 50.14 billion U.S. dollars last year, down 17.4 percent. The document attributed rising ore imports in 2009 to quick recovery of China’s steel production, insufficient domestic supply and increasing iron ore stockpiles by importers. In 2009, China’s iron and steel output rose 18.5 percent to 692.4 million tonnes. Crude steel output increased 13.5 percent to 567.8 million tonnes. A total of 235 China-based companies imported iron ores in 2009, a drop of 28 in comparison with that of 2008. State-owned enterprises imported about 400 million tonnes of iron ores in 2009, an increase of 14.3 percent from year on year, which accounted for 64.4 percent of the nation’s total iron ore imports. Privately-owned and foreign-funded enterprises imported 87.44 million tonnes and 70.61 million tonnes, soaring 99.7 percent and 95.8 percent from the previous year, respectively. Bharat Book Bureau: Independent Resources plc – Financial Analysis Review Feb 16, 2010 (M2 PRESSWIRE via COMTEX) — Independent Resources plc (Independent Resources) is an energy company. It is engaged in the development of a major underground gas storage facility, together with upstream assets in Italy and North Africa. In addition, Independent Resources has its operational presence in the following business area such as Coal Bed Methane, Enhanced CBM recovery, Tunisian oil and gas acreage etc. The company is also seeking to secure additional oil and gas resources in the Mediterranean region and elsewhere in Western Europe. The company is headquartered in Melbourne, the UK and employs eight people. The company carries out its operations through its wholly owned subsidiaries namely Independent Energy So( http://www.bharatbook.com/detail.asp?id=116766&rt=Independent-Resources-plc-Financial-Analysis-Review.html ) Global Markets Direct’s Independent Resources plc – Financial Analysis Review is an in-depth business, financial analysis of Independent Resources plc. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed financial ratios of the company Scope – Provides key company information for business intelligence needs The report contains critical company information – business structure and operations, the company history, major products and services, key competitors, key employees and executive biographies, different locations and important subsidiaries. – The report provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. – Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios. Reasons to buy – A quick “one-stop-shop” to understand the company. – Enhance business/sales activities by understanding customers’ businesses better. – Get detailed information and financial analysis on companies operating in your industry. – Identify prospective partners and suppliers – with key data on their businesses and locations. – Compare your company’s financial trends with those of your peers / competitors. Argentina set on rattling Falklands oil firms Argentina and Britain went to war over the Falklands in 1982 but recent British-backed exploration for hydrocarbons in the islands’ waters has reignited tension between Buenos Aires and London and Stanley, the Falklands’ capital. This week Argentina toughened its stand on the oil and gas exploration operations and unveiled plans for sanctions against shippers and firms that trade in the Falklands, in particular firms involved with any area of hydrocarbons exploration activities. The move followed Argentina’s warnings it considered the Falklands its sovereign territory and would raise the matter of British-backed oil exploration at an international tribunal. Argentina says the British-backed hydrocarbons exploration in the islands’ basin is a violation of Argentine sovereignty. The Argentine campaign coincides with the scheduled arrival next week of a Scottish oil rig, Ocean Guardian, leased by oil companies operating in the Falklands. Argentine media reported that defense ministry officials were tracking the oil rig’s course and were taking its photographs in preparation for further action. In an indication that Argentina intended to carry out its threat to punish firms that participate in the Falklands oil exploration operations, officials prevented a British-flagged merchant vessel, Thor Leader, from leaving the port of Campana. The vessel was loading steel pipes bound for Egypt but officials accused the operators of having transported goods earlier to the oil exploration operations in the Falklands. Officials said the action against the ship was a robust rejection of British plans to explore for hydrocarbons “in the disputed Malvinas” — Argentina’s term for the Falklands. Buenos Aires recruited a team of legal experts in preparation for what could be protracted litigation over the Falklands at the International Court at The Hague. Officials told the media the Argentine government strategy would be to create a heightened sense of insecurity for all operators in the offshore exploration. “Offshore oil drilling is a very high-risk operation and if a sense of insecurity can be injected, it should further discourage the enterprise,” said an Argentine official source quoted in the media, MercoPress reported. Despite heightened tensions over the rhetoric of official pronouncements, Argentine opposition critics remain skeptical and have accused the government of overreaction. The Argentine opposition in in Parliament asked for Foreign Minister Jorge Taiana to be summoned to report on the Thor Leader incident and hinted the government response might be exaggerated. AUSTRALIA :
UPDATE:Asian Shares End Higher;Westpac Leads Australian Banks Up FEBRUARY 16, 2010/online.wsj.com (adds India closing price) By Shri Navaratnam, Philip Vahn and V. Phani Kumar SINGAPORE (Dow Jones)–Asian markets ended higher Tuesday, with banks driving Australian stocks up after an upbeat quarterly trading update from Westpac, while resource shares advanced in Tokyo on higher commodity prices. Japan’s Nikkei 225 finished 0.2% higher at 10034.25, Australia’s S&P/ASX 200 gained 0.5%, South Korea’s Kospi added 0.5%, New Zealand’s NZX 50 advanced 0.9% and India’s Sensex rose 1.2%. Trading volumes were weak on subdued activity as markets including in China, Hong Kong, Taiwan and Singapore were closed for the day for Lunar New Year, and as U.S. markets were also shut Monday for a holiday. Strong early gains in Sydney couldn’t be sustained as investors looked to book profits amid persistent concerns about sovereign debt in Europe. Dow Jones Industrial Average futures were up 38 points in screen trading. “This is the fifth gain in six sessions for Asian markets, driven by strong financial and materials leads from London,” said IG Markets research analyst Ben Potter. But “once again, profit taking crept in, especially among the materials names. This has been the theme of late [in Australia], with few investors convinced of the sustainability of any rally.” Doubts remained on whether EU finance ministers would deliver an explicit rescue plan for fiscally stressed Greece, which sidelined some investors. “It appears markets remain skeptical over the chances of concrete measures being announced to support Greece,” said Bank of New Zealand in a report. But others said the concerns were easing. Macquarie Private Wealth client adviser Marcus Droga said he expects the EU to ring fence Greece’s sovereign debt issues, adding that China’s policy tightening should help keep growth on a sustainable footing. “They will do what they need to do and we can get on with this patchy global economic recovery,” he said. The Australian market was lifted by Westpac bank, which jumped 6.2% after releasing its quarterly trading update showing a 33% jump in first-quarter cash earnings. Other banks followed Westpac’s lead, with Australia & New Zealand Banking Group gaining 2.9% and National Australia Bank climbing 3%. OneSteel tacked on 5.6% after its first half profit of 117 million Australian dollars (US$104 million) beat expectations. Macquarie’s Droga said the positive earnings surprises should help the market hold some of its gains. “The results so far have mainly been above consensus and that’s very positive for our market going forward,” he said. In Japan, higher crude-oil and gold prices boosted shares of Japan Petroleum Exploration, which climbed 2%, while commodities trading house Marubeni gained 1.6% and Sumitomo Metal Mining rose 1.8%. Spot gold was at $1,112.30 per troy ounce, up $12.80 from its previous close. Front-month Nymex crude-oil futures were at $74.91 a barrel on Globex, up 78 cents. Shares of Sumitomo Corp. were also under the spotlight, dropping 4.4% after the company launched a tender offer for up to 122.18 billion yen ($1.35 billion) to increase its stake in Jupiter Telecommunications to 40% from 27%. The move challenges telecommunications major KDDI’s $4 billion offer to acquire a 38% stake in Jupiter. Jupiter shares, listed on the Jasdaq stock exchange, rose 16.7%. KDDI shares gained 0.1%. Deutsche Securities said the tender offer could prompt KDDI to sell a portion of its stake in Jupiter as KDDI has little reason to fight Sumitomo to become the leading shareholder. In Mumbai trading, Bharti Airtel extended its losses for a second straight day, dropping 4.5%, on concerns it may be overpaying for the Africa assets of Kuwait’s Mobile Telecommunications, or Zain. Bharti is in exclusive talks to buy most of Zain’s African assets for an estimated enterprise value of $10.7 billion. Steelmakers propped up the South Korean market, where trading resumed after Monday’s holiday, on hopes of higher steel prices. Posco gained 1.8%, and Hyundai Steel gained 3.1%. In Australia, the minutes of the Reserve Bank of Australia’s February meeting showed the decision to leave rates on hold at 3.75% was “finely balanced” and a resumption of increases is likely if the economy continues to improve as expected. Despite the unexpected decision to pause in February, the minutes suggest more fine-tuning of policy is likely, and only the timing of the next hike remains unclear. The Australian dollar rose on the news, with the euro also ticking up against the U.S. currency after RBA Assistant Governor Guy Debelle’s hawkish tone in a speech Tuesday. The speech offered a hint that another RBA rate rise may come sooner than previously thought, prompting players to buy risk-sensitive currencies, said Tokyo Forex & Ueda Harlow FX manager Yuzo Sakai. The Australian dollar was buying 89.45 U.S. cents. The euro, meanwhile, was fetching $1.3664 from $1.3613 late in London trade, and 122.87 yen from 122.46 yen. The dollar was at 89.88 yen from 89.99 yen. Lead March Japanese government bond futures rose 0.09 at 139.70 points and the benchmark 10-year cash bond yield was flat at 1.320%. Higher prices bring old and new iron ore miners into focus LONDON – Its boom time again in Australia’s Pilbara, Itabira in Brazil, Sishen in South Africa and anywhere else in the world that high quality iron ore is mined and exported – not that boom times have really gone away, even at the nadir of the recession at the beginning of last year. Now 2010 contract negotiations are under way and the miners are likely to be squeezing the steel mills for some swingeing price increases, and they hold the whip hand. In a TV interview in Australia, BHP Billiton’s South African CEO, Marius Kloppers gave a strong indication of the position being taken by the world’s big iron ore miners, which number the world’s three biggest mining companies as the key players, BHP, Vale and Rio Tinto – and it’s no coincidence that these three are in that exalted position. It’s basically down to their dominance of the global iron ore markets Kloppers is reported as saying that the prices the miners are getting today for iron ore and coking coal were set at the depth of the recession, so the miners expect to be able to increase prices. Spot prices have been running way above the contract prices set with Japanese and Korean steel mills a year ago, while much of the sales to the huge Chinese market has been conducted at ,or near, spot prices because of a dramatic underestimation of market economics by the Chinese negotiators a year ago. The Chinese reckoned that they could negotiate lower prices than those achieved by their Far Eastern cousins. They couldn’t and many of the mills ended up paying spot prices for their ore supplies, or individually negotiated contracts with the miners which were above the benchmark levels. No doubt the blow to Chinese ‘face’ of their failure to drive the prices down was a prime contributor to the arrest of four members of Rio Tinto’s negotiating team on industrial espionage and bribery allegations, yet there seems to be little evidence that the Rio Four, now pawns in a geopolitical chess game, did anything more than undertake normal industrial research into the Chinese steel industry, and normal entertainment of senior steel sector executives. This has left other negotiators and analysts extremely wary of what they can do without incurring the wrath of the Chinese government. Be this as it may, with spot iron ore prices well above the old benchmark levels it looks like iron ore prices will be negotiated 40-50% higher than a year ago which will just serve to consolidate the big mining triumvirate’s grip on the mining sector. BHP’s profits are enormous already, and with higher commodity prices for base metals and coal it is set for a bumper financial year – even if base metals prices continue to drift down from their highs. Vale and Rio too, which have similar involvements in the diversified mining and metals sector will be doing well – a particular fillip to the latter which is still suffering from the, in retrospect, way overpriced purchase of Alcan a couple of years ago at the peak of the market. The iron ore majors are also looking to the idea of more frequent changes in pricing to bring contract benchmark prices more in line with the spot market – although this could also be a negotiating tactic. The idea of half yearly, quarterly and even monthly contract price adjustments is being bandied around, with the steel mills resisting strongly. After all the mills are only the middle of the chain and they have to sell on to perhaps even more price sensitive consumers. But who else is out there and likely to benefit enormously. Anglo American, yet another major diversified miner which has problems in its platinum division, and a huge investment in the ailing De Beers, will be looking to its iron ore to pull it out of the mire and improve its rating. Its Kumba Iron Ore operations in South Africa will be a huge beneficiary from any substantial increase in iron ore prices Anglo has also invested heavily in iron ore in Brazil. Its Anglo Ferrous Brazil operation is expected to produce at a capacity of 4.5 million tonnes a year by the end of 2010, but even more significant is its much, much bigger $3.5 billion Minas Rio operation which should produce 26.5 million tonnes in 2012 and rise to 80 million tonnes a year by 2015 of exceptionally high quality ore. Another diversified miner – Indian-controlled, London quoted, Vedanta – now owns control of India’s very profitable Sesa Goa operations which have been riding high on strong iron ore exports. Sesa Goa’s stock price has risen almost four times on the Mumbai exchange over the past year. Another London quoted company, Ferrexpo, with iron ore operations in the Ukraine, is also expected to perform well on increased prices. In Australia there are a number of smaller miners getting into the iron ore markets, the most notable of which is would-be iron ore major Fortescue and in North and West Africa, where political difficulties have decimated the potential there are still some major opportunities. Guinea has perhaps the most interesting deposit in Simandou, but this is embroiled in local problems and would require huge infrastructure costs, and some time, for it to have an impact on the market. China itself is the world’s largest iron ore miner. But most of its product is low quality and needs to be blended with imported ore before use. Russia is also a major world producer and there could well be big interest in London quoted Petropavlosk (formerly Peter Hambro Mining) – a major gold miner with big iron ore holdings near the China border which are only now beginning to realize some of their potential. My colleague, Barry Sergeant, describes the seaborne iron ore sector as the “world’s most profitable mining franchise” and there is no sign of any let-up in the sector’s profitability at the moment. With the world’s top diversified miners coining profits from this most basic of metals, and others getting in on the act iron ore will continue to offer opportunities, particularly at higher price levels, but much will depend on China’s seemingly insatiable demand for steel. Should this falter before the west recovers from the current recession, which is likely to be a slow process, spot prices could start to fall back which would be a particular thorn in the side for some of the smaller operators. The big boys should be able to ride out any such storm without too much difficulty – but then this is conjecture. At the moment there seem to be no storm clouds ahead. Australia – “Trade at the centre of the global recovery” 16_February_2010/www.isria.com Thank you Urs for that kind introduction and I appreciate the opportunity to speak to the Foreign Correspondents Association today. I have very fond memories of our most recent meeting, organised by April Pressler, in Canberra last year. As I recall, a group of you sang me a rousing version of “Happy Birthday” before grilling me about global trade issues. But seriously, I’m delighted to be here in Sydney addressing foreign correspondents from all over the world. It is the nature of my portfolio that I spend much of my time speaking to foreign journalists overseas. Today it is good to see international media gathered here in Australia. 2010 – AN IMPORTANT YEAR 2010 is going to be a really big year on the trade front and I welcome the chance to look at what this year might deliver for the portfolio. First, the G20 leaders last year instructed Trade Minsters to conclude the Doha Round in 2010. The pressure is on to meet the deadline. Second, this year the world is emerging from the worst recession in more than 75 years. Trade is ongoing stimulus for the economy. Trade is an economic stimulus and the beauty of trade is that it does not hit the Budget bottomline. The shift in the economic outlook and the new focus on trade was brought home to me two-and-half weeks ago when I was representing the Australian Government at World Economic Forum in Davos, Switzerland. At Davos this year there was distinct change in mood compared with 2009. Last year, an air of despair and pessimism hung over Davos with the focus on surviving the Global Financial Crisis. This year the focus in Davos was on the future, sustainable growth and particularly jobs. Another key difference this year at the World Economic Forum was the incredible interest in Australia. People kept asking me why it was that Australia was the only one of the world’s 33 advanced economies to grow in 2009 during the worst global recession since the Great Depression. They wanted to know how Australia had dodged the recession bullet. With international media networks, such as the BBC, there was an automatic assumption that Australia’s was relying on the continuing growth of China. I explained that although Australian was hit by the downturn, our economic resilience came down to three main factors. First, the Government took quick and decisive action to stimulate the economy. Second, the Australian economy has performed strongly because the former Labor Governments of Bob Hawke and Paul Keating undertook a series of wide-ranging and necessary structural reforms in the 1980s and early 1990s. For example, the dollar was floated in 1983 and this saw the exchange rate to fall to US63 cents following the collapse of Lehman Brothers, cushioning the impact of large falls in commodity prices. Third, Australia survived the Global Financial Crisis better than any other advanced economy because we are plugged into Asia – the fastest growing region in the world at the same time while continuing to make the most of our traditional trading relationships. As a key supplier of energy and raw materials to Asia, Australia has benefited from growth in the region. In 2009, a year in which world trade volumes fell by more than 10 per cent, Australia’s export volumes increased – making us the only country in the OECD to export more goods and services than in 2008. Of course, China has played an ongoing important role in this, but it is not just China. Our two-way trade with the ASEAN region is equal to our trade with China. Merchandise exports to India increased by 7 per cent last year and there is ongoing strength in our trade relationships with Japan and Korea. DOHA ROUND PROSPECTS At the conclusion of the World Economic Forum, there was annual informal meeting of Trade Ministers. The Doha Round was of the focus of attention and the Director-General of World Trade Organization Pascal Lamy played a key role in a very productive meeting. Last week I had the opportunity again to catch up with Pascal Lamy in Canberra and to follow up some of the discussions on Doha. At Parliament House, we held a joint press conference and the main news story was captured by Reuters with the headline: “WTO’s Lamy says Doha deal still possible in 2010”. To be more specific, Pascal Lamy said the Round could be concluded this year because at a technical level it is 80 per cent completed. The real question which Pasal Lamy highlighted was question of political will. Political will to conclude Doha is needed from all countries and there is a timetable laid out. There will be a stocktake of progress in March, plus three major opportunities for engagement by trade minsters before the meeting of G 20 leaders in June in Toronto, Canada. The economic stimulus benefits of concluding the Doha Round would be unparalleled, particularly in the current economic climate. A report by the US-based Peterson Institute estimated that the annual boost to the world GDP from a Doha outcome could be between USD 300 billion and USD 700 billion. Doha would significantly boost the development of the world’s poorer countries – through tariff reductions and opening of advanced country export markets, particularly in agriculture. Doha also offers enormous potential gains to the Australian workers and Australian businesses. For Australian farmers, Doha would deliver reductions of between 70-80% in domestic support subsidies for major subsidisers such as the European Union, Japan and the US. Doha would also mean real market opportunities for Australian industrial producers and for our service providers. Doha also offers us an insurance policy against the danger of protectionism. We were very close to concluding Doha in July 2008, before negotiations stalled. The last two years of Doha negotiations have been difficult and at times frustrating, but we have not stood still – nor has what is on the table unravelled. COMPLEMENTING DOHA The Australian Government is totally committed to Doha and it is the over-arching focus of my work as Australian Trade Minister. Multilateral agreements such as Doha are the pinnacle of trade agreements. Nothing can match the global benefits of completing a Round. We saw that with the completion of the Uruguay Round in 1994. History shows us that since the 1950s trade has grown three times faster than world output and each round of trade liberalisation has grown the multiplier. But the Australian Government is not putting all its eggs in the Doha basket. We are developing trade relationships on many fronts and that is the way it should be. There is a complementary relationship between multilateral, regional and bilateral Free Trade Agreements, which I call the cascade effect. Our scorecard reads like this: Australia has six FTAs already in place. We’re negotiating a further seven, and two more are under consideration. What is crucial is the quality of FTAs and what they set out to achieve. The ultimate goal has to be trade liberalisation and economic integration. The danger of bilateral FTAs is that you can be drawn back into preferential trade deals. Trade deals that favour one country, or group of countries over another, and stifle economic integration. This is not where the Australian Government wants trade policy to go. An example of the benefits of an FTA is the Australia Free Trade Agreement with the United States. Last year when the US introduced i I note that the Closer Economic Relations agreement (CER) with New Zealand is a gold standard in FTAs and a dynamic model The ASEAN-Australia-New Zealand Free Trade Agreement is another excellent model. Our FTA with ASEAN, which entered into force on 1 January this year is Australia’s largest FTA, covering 12 countries and a population of some 600 million people, with a combined GDP of AUD 3.1 trillion. It is the most comprehensive FTA that ASEAN has ever concluded, covering a range of issues affecting trade behind the border, such as intellectual property and electronic commerce On top of this, a crucial element of the ASEAN FTA was the focus on aid-for-trade. An emphasis on capacity building, such as skills training in local communities, was central to the ASEAN agreement. There is little point to opening markets if nations can not take advantage of such opportunities. For developing nations, we must bridge their capacity-building deficiency for them to take advantage. Developed countries must assist them in that task. Capacity building is fundamental to our global trade policy. The ASEAN-Australia-New Zealand FTA is also an important contribution to evolving regional economic architecture and fits into the broader discussion Australian Prime Minister Kevin Rudd has initiated through the Asia Pacific community concept. Another key trade agreement that is driving the trade agenda forward, as well as strengthening our links with Latin America, is the Trans Pacific Partnership Agreement, or TPP. Australia, together with the US, New Zealand, Singapore, Chile, Brunei, Peru and Vietnam will begin negotiating this ambitious FTA in March in Melbourne. The TPP represents an important basis for regional economic integration. It can be a building block towards the APEC goal of a Free Trade Area spanning the Asia Pacific. BILATERAL FTAs WITH OUR TOP EXPORT MARKETS Beyond the regional trade agreements, this government is taking a strategic approach to bilateral FTAs. Where we do not have FTAs with our top export markets, we are in the process of negotiating or discussing them. FTA negotiations are underway with China, Japan and Korea. An FTA with the US came into force in 2005 and a feasibility study will soon be completed on an FTA with India. In less than 10 days, the 14th round of negotiations with China will be held in Canberra after being stalled at the technical level for more than a year. The key market access areas of these negotiations have been difficult, and negotiations have taken longer than we would have hoped. But high-level political commitment on both sides remains. We remain committed to concluding a comprehensive and high-quality FTA with Japan. The negotiations – which began in 2007 – are making steady progress but, not surprisingly, discussions about agriculture remain difficult. The election of the new Democratic Party of Japan government in August last year signalled a big change in that country. I am pleased with the progress being made on our FTA negotiations with the Republic of Korea. Finally, a feasibility study on the merits of an FTA between Australia and India, our fourth largest merchandise export market, is close to finalisation. Other bilateral FTAs under negotiation are with Malaysia and the Gulf Cooperation Council. While negotiations began last year with Pacific nations and Australia and New Zealand on PACER Plus. An FTA with Indonesia is also under consideration. BOOSTING TRADE LINKS Taking a step back for a moment, and looking at where Australia has, or is negotiating FTAs, I think there it is fair say there are two major missing links. We have no FTAs with either Africa or Europe and two of our top ten trading partners are the United Kingdom and Germany. The continent of Africa with almost a billion people was ignored for more than a decade by the Howard Government. The Rudd Labor Government is changing that and making engagement with Africa a priority. As part of the engagement, I was in Africa less than ten days ago and attended a major mining conference in Cape Town, South Africa. Australian mining companies have already signalled investment of more than AUD 20 billion in projects in more than 35 African nations. The Australian resources sector is committed to Africa. Australia is increasing targeted development assistance to Africa with AUD 163 million in 2010 – an increase of 40% from last year. But beyond this, I believe there is scope for greater focus on capacity building in Africa. Australia resource companies know the value of capacity building and the Australian Government can work in tandem. As I told the Mining Indaba conference, Australia knows the importance of working with indigenous populations and working in remote areas. In Australia there is respect for the land and an appreciation for the importance of land rehabilitation. This is part of the Australian brand and this is what we are bringing to Africa. Moving away from Africa to Europe, which is the other missing link in Australia’s trade policy. First, it should be noted that the European Union is a key partner with Australia in progressing the Doha negotiations. Second, Europe is generally an open trade and investment space for Australia and we continue to work on building and strengthening this. The European Union, as a bloc, is Australia’s largest trade and investment partner, and two-way trade has continued to grow despite the global economic contraction brought about the global financial crisis. While a Free Trade Agreement negotiation with Europe is not currently on our agenda and I made this point when I visited Brussels last year. We are interested to note that the previous decision of the EU to only do FTAs with developing countries changed when they signalled their preparedness to do one with Canada. We have sought clarification whether this heralds a different approach. We will monitor closely developments in the European Union’s Free Trade Agreement negotiations with other countries. I look forward to continued close cooperation with the new EU Trade Commissioner Karel De Gucht who I met in Davos. CONCLUSION To conclude, let me make the point that when it comes to trade, Australia is not backing just one horse. Far from it. Doha is the priority, especially in 2010, with the instructions from G20 world leaders to conclude this year. But Australian Government is not restricted or blindsided by Doha. The trade policy approach I’ve outlined today underscores Australia’s ability to back multiple processes in support of free trade – multilaterally in the WTO through the Doha Round and regionally and bilaterally through FTAs. These are processes that complement each other, and they are all aimed at achieving trade liberalisation and greater regional economic integration. Trade does matter, and the Global Financial Crisis has put trade at the centre of the global recovery. We must grasp the opportunity for trade to play its key role in the recovery. Doha is the low hanging fruit of international trade. Thank you and I look forward to hearing your comments and questions. Australia to work with Spain on aid PETER VENESS /AAP / news.smh.com.au/February 16, 2010 Australia is looking to team up with Spain to improve delivery of aid to the Caribbean and Africa. Foreign Minister Stephen Smith made the announcement in Spain overnight while speaking at the Casa Asia diplomatic forum. “We agreed to explore cooperation between Australia and Spain in the delivery of international development assistance in Africa and the Caribbean,” Mr Smith said after meeting with Spanish Secretary of State for International Co-operation Soraya Rodriguez. No details on how the plan would work were given by Mr Smith. He also confirmed Prime Minister Kevin Rudd has invited his Spanish counterpart Jose Luis Rodriguez Zapatero to visit Australia. This may happen later this year. In a wide ranging speech Mr Smith spoke of the strong relationship between Australia and Spain – a relationship nowadays anchored on defence cooperation. The Department of Defence has committed more than $10 billion to three major projects developed in Spain. The Air Warfare Destroyer, amphibious ships and airborne refuelling capabilities are all being developed in Spain. Spanish companies are also building desalination plants in both South and Western Australia. “Australia and Spain share common approaches to international concerns, including nuclear non-proliferation and disarmament, counter-terrorism, climate change and peacekeeping,” Mr Smith said. “We share a commitment to multilateralism. “Australia, like Spain, has a strong interest in strengthening the international order and working with like-minded countries for international peace, security and prosperity.” EUROPE :
EU Extends Zimbabwe Sanctions For Another Year By REUTERS/Published: February 16, 2010 Skip to next paragraph BRUSSELS (Reuters) – The European Union has extended sanctions on Zimbabwe for another 12 months, citing a lack of progress in implementing a power-sharing accord. A unity government formed last year between President Robert Mugabe and Prime Minister Morgan Tsvangirai, the leader of the opposition, is beset by trouble, with no agreement over how to share executive power. The pair struck a power-sharing deal in 2008 that was supposed to end a crisis aggravated by disputed elections, but they have failed to agree on political reforms that would clear the way for new elections. “In view of the situation in Zimbabwe, in particular the lack of progress in the implementation of the Global Political Agreement signed in September 2008, the restrictive measures … should be extended for a further period of 12 months,” the official journal of the European Union said on Tuesday. The EU began imposing sanctions in 2004, including an arms embargo and travel restrictions. More than 200 individuals and 40 companies with ties to Mugabe’s government are now targeted because of their suspected links to human rights abuses. The EU has, however, lifted sanctions on some individuals and companies, including Zimbabwe Iron and Steel Company and the Industrial Development Corporation of Zimbabwe, saying that there were no longer grounds to keep them on the list. (Reporting by Bate Felix; Editing by Giles Elgood) CHINA :
INDIA :
India’s Sensitive Index Gains; Sterlite, Tata Steel Advance Feb. 16 (Bloomberg) — India’s benchmark stock index advanced. Sterlite Industries (India) Ltd. led metal producers higher after copper gained for a second day. Sterlite, the nation’s largest copper producer, rose 1.7 percent as the price of the commodity increased on speculation demand may reduce stockpiles. Tata Steel Ltd., the biggest producer of the alloy, added 1.6 percent. “Commodity prices have been beaten down so we are seeing a rally in prices as some data points improve and that’s boosting stocks,” said Vaibhav Sanghavi, a director at Ambit Capital Ltd. in Mumbai, who manages funds for wealthy individuals. The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 188.33, or 1.2 percent, to 16,226.68. The S&P CNX Nifty Index on the National Stock Exchange rose 1.1 percent to 4,855.75. The BSE 200 Index advanced 1.1 percent to 2,057.97. Sterlite climbed 2.4 percent to 762.25 rupees. Tata Steel advanced 1.9 percent to 550.1 rupees. Hindalco Industries Ltd., India’s biggest aluminum producer, added 3.2 percent to 145.4 rupees. The price of copper for delivery in three months rose as much 2.5 percent on the London Metal Exchange, extending yesterday’s 0.8 percent gain, amid speculation demand may pick up after Japan’s quarterly economic growth accelerated. Nickel increased to the highest since Aug. 13. Bharti Slides Tata Motors Ltd. climbed 2.9 percent. India’s biggest truckmaker, which yesterday appointed Carl-Peter Forster as its chief executive officer, said it’s “looking at various options” to sell a stake in its vehicle finance unit. Separately, the automaker is bidding to supply vehicles to the Indian army in a deal that may be worth as much as 3.5 billion rupees ($75.8 million), Managing Director Prakash M. Telang said at a press conference today. Bharti Airtel Ltd. lost 4.9 percent to 271.6 rupees, its lowest level in more than 15 months, on concern its offer for Zain’s African assets may face a hurdle. Celtel Nigeria BV can’t be included in India’s largest wireless operator’s $10.7 billion bid for Zain’s assets until an ownership dispute is resolved with Econet Wireless Ltd., Econet Chief Executive Officer Strive Masiyiwa said. The shares sank 9.2 percent yesterday after the offer was announced. “Without Nigeria, the transaction would probably be a lot less attractive,” said Lindsey McDonald, an analyst with consultant Frost & Sullivan in Dubai. Purchase Disputed Econet, based in a suburb of Johannesburg, is seeking to overturn a 2006 deal in which Celtel bought a 65 percent stake in Nigerian mobile operator Vmobile, since renamed Zain Nigeria. Econet, with 5 percent of Zain Nigeria, says it should have had the right of first refusal on those shares. Overseas investors bought a net 3.51 billion rupees ($76 million) of Indian stocks on Feb. 11, paring the total outflow from equities this year to 24 billion rupees, according to the nation’s stock market regulator. Foreign fund inflows into India’s stock market rose to a record 834.2 billion rupees in 2009, beating the previous high set two years earlier in local currency terms, as the biggest rally in 18 years lured foreign investors. They sold a record 529.9 billion rupees of shares in 2008, triggering the biggest- ever annual decline. –With assistance from Nicky Smith in Johannesburg and Mehul Srivastava in New Delhi. Editors: Margo Towie, Sam Nagarajan News@Glance – Pune blast, Bhajji’s leap, Brazil carnival and more Pune in tears Bomb blast at the German Bakery in Pune on Saturday threw a cloud over the scheduled resumption of India-Pakistan peace talks. The talks will go on as per the schedule, said sources in Govt. of India Monday morning. The blast that killed nine people, including a foreigner and injured about 32 is the first major attack since 26/11 Mumbai carnage. On Sunday night, Pune residents held a peace rally (as shown in picture) in protest against the German Bakery blast. Pune’s terror trial is leading to David Headley and Indian Mujahideen. Nifty bounces over 4850; Bharti languishes 16 Feb 2010/ Mohammed Sabir, ET Bureau/economictimes.indiatimes.com MUMBAI: Indian equity benchmarks surged in the last half hour of trade on Tuesday to end above psychological resistance levels, taking cues from Market opened on a positive note but turned range-bound due to lack of cues as most global markets were shut on account of public holidays. However, positive European markets and US stock futures pushed the indices higher. Meanwhile, Bharti Airtel continued to reel under pressure as the company’s $10.7 billion bid for Zain Africa is said to be much higher than its enterprise value of $6 billion. Bombay Stock Exchange’s Sensex ended at 16,226.68, up 188.33 points or 1.17 per cent. The 30-share index hit a high of 16,310.39 and low of 16,021.29. National Stock Exchange’s Nifty was at 4855.75, up 53.8 points or 1.12 per cent. The index touched a high of 4880 and low of 4791.35 in today’s trade. “Nifty may bounce back another 50-70 points but the upmove should be used as an opportunity to square long positions and initiate fresh shorts. We are anticipating 4600 levels on the Nifty on expectations of dollar appreciation against euro and yen which is negative for both commodities and equities,” said Siddarth Bhamre, Head – Derivatives at Angel Broking. The BSE Midcap Index closed up 0.63 per cent and BSE Smallcap Index moved 0.54 per cent higher. Amongst the sectoral indices, BSE Auto Index was up 1.37 per cent, BSE IT Index gained 1.36 per cent and BSE Metal Index moved 1.58 per cent higher. Among frontline stocks, smart gains in Ranbaxy Laboratories (8.59%), ACC (4.89%), Ambuja Cements (4.06%), Hindalco Industries (3.83%) and Hindustan Unilever (3.63%) aided the Nifty pullback. Bharti Airtel (-4.15%), Axis Bank (-0.22%), Hero Honda (-0.2%) and Jindal Steel (-0.14%) were the lone laggards in the 50-share index. KIM ENG India Securities has downgraded Bharti Airtel to ‘Sell’ from earlier ‘Hold’ after the company entered into discussion to buy Zain Africa. It has set a target price of Rs 245. Market breadth on BSE was positive with 1545 advances against 1244 declines. European markets were in the green and US stock futures hinted at a positive start. At 4:45 pm IST, Dow Jones futures was up 0.36 per cent, S&P 500 gained 0.45 per cent and Nasdaq 100 moved 0.52 per cent higher. BRASIL:
Rand May Fall If Gordhan Imposes Brazil-Style Hot Tax, RBC Says By Garth Theunissen/Bloomberg/Feb. 16 Trade Minister Rob Davies said yesterday it’s “no secret” that the country needs a more “competitive and stable currency,” boosting speculation measures may be implemented to stem the rand’s gains, which have slowed economic recovery by making the country’s exports more expensive. The rand rose 28 percent versus the dollar last year as foreigners bought a net 101.2 billion rand ($13.14 billion) of South African assets. “It’s difficult for politicians to get involved in foreign-exchange markets because it always ends in tears,” said Nigel Rendell, an emerging-market strategist at RBC Capital in London. “South Africa is very reliant on foreign-portfolio inflows to finance its current-account deficit. It’s not a tap they can turn on or off as and when they choose.” Brazil introduced taxes on overseas investors in its stocks and fixed-income assets in October after the country’s currency, the real, rallied almost 33 percent. The Congress of South African Trade Unions, which has almost 2 million members, wants the government to implement measures to weaken the rand to boost exports, stimulate the economy and create jobs. “Brazil is in a much stronger position than South Africa because it gets a lot of flows from foreign direct investment,” said Rendell. “Most of South Africa’s inflows are short-term flows” into the bond and equity markets. Budget Deficit The National Treasury’s forecast for a shortfall of 5.7 percent of gross domestic product on South Africa’s current account, a measure of trade in goods and services, will keep the nation reliant on foreign capital inflows to fund the gap. Speculation has intensified this month that the government may introduce a tax on short-term foreign-capital inflows. South Africa needs policies that promote a stable exchange rate, Collins Chabane, head of performance monitoring and evaluation in the presidency, said Feb. 12. The country’s ministers of finance and trade will “elaborate on what steps we need to take to deal with” stabilizing the rand, he added. Gordhan may announce a tax on foreign investments in the country’s bond and equity markets to stabilize the rand, BNP Paribas SA said Feb. 12. The rand gained as much as 0.8 percent to 7.6729 per dollar and traded 0.1 percent stronger at 7.7307 by 2:46 p.m. in Johannesburg, from 7.7350 yesterday. Against the euro lost 0.2 percent. ‘Branded generics’ tout quality drugs in foreign markets Font Size:Default font sizeLarger font sizeSome prestigious brand-name pharmaceutical companies that once looked askance at the high-volume, low-cost business of generic drugs are now becoming major purveyors of generic medicines. Just don’t call them no-name drugs. Giants such as Sanofi-Aventis and GlaxoSmith- Kline are not looking to enter the commodity generics market in the United States, where chain pharmacies often determine which generics they offer based on the lowest available price – and where consumers often view generic makers as interchangeable. Instead, the big drug makers are pursuing a growing consumer base in emerging markets such as Eastern Europe, Asia and Latin America, where many people pay out of pocket for their medicines but often cannot afford expensive brand-name drugs. And in some emerging markets, where the fear of counterfeit drugs or low-quality medicines runs high, consumers who can afford it are willing to pay a premium for generics from well-known makers, industry analysts said. These products are known as company-branded generics, or branded generics. They carry the name of a trusted local or foreign drug maker stamped on the package, seen as a sign of authenticity and quality control. “We are able to create different tiers of products at prices they haven’t previously seen with our stamp of approval,” said Andrew P. Witty, the chief executive of GlaxoSmithKline. Last year, Glaxo bought a stake in Aspen, a generic maker in South Africa, and signed agreements with Dr. Reddy’s, an Indian generic firm, to sell its products in emerging markets. Under the distribution agreement, the Dr. Reddy’s products are subject to Glaxo quality control checks and, eventually, will carry a Glaxo logo, a company spokeswoman said. Until recently, many brand-name drug makers invested the bulk of their research and marketing money in the development of blockbuster drugs, only to cede their intellectual property and market share to lower-priced generic competitors once patents expired. But now, with an estimated $89 billion in brand-name drug sales in the United States at risk to generic competition over the next five years, according to IMS Health, a health information firm, some drug makers are selling generics to offset revenue declines – as well as to wring some post-patent profits from the innovative drugs they developed. It is a topic sure to be discussed at the Generic Pharmaceutical Association’s annual meeting, which begins today in Naples, Fla. “It definitely represents a change in thinking,” said David Simmons, the president of Pfizer’s established-products business unit. Simmons’ recently started division sells off-patent brand-name Pfizer products such as Zoloft, an anti-depressant. It also markets generic versions of those off-patent drugs under its own Greenstone label and distributes a number of generic drugs licensed from a few other producers. In the last year, Pfizer signed licensing deals with three India-based generic makers to sell those companies’ pills and injectable drugs in the United States and other markets, adding more than 200 products to the company’s generic portfolio. Pfizer said its Greenstone generic subsidiary had become the world’s seventh-largest purveyor of generic medicines, as measured by number of prescriptions dispensed. While drug sales in developed markets such as North America have low single-digit annual growth, emerging markets, including India, China, Russia and Brazil, have growth in the midteens, said Doug Long, vice president for industry relations at IMS Health. As a result, some drug makers are pursuing a two-tiered strategy in developing markets: selling their own lines of more expensive name-brand products to the more affluent, as well as offering midpriced branded generic lines that include prescription and over-the-counter medicines for the broader market. Branded generics can give prominent drug makers a way to capitalize on those markets without having to compete with no-name generic producers whose selling point is rock-bottom pricing. Company-branded generics can charge more for the promise of quality.
EN BREF, CE 16 février 2010 … AGNEWS / OMAR, BXL,16/02/2010 |
Afrique-International : 16 FEVRIER 2010 [US senator calls for solution to DR Congo problem]
