Former president says ill considered land reform proposals would threaten SA's ability to feed itself
FW DE KLERK'S COMMENTS TO THE FORTUNE/TIME/CNN GLOBAL FORUM ON JUNE 28 2010
FROM FOOD SECURITY TO FOOD SELF-SUFFICIENCY
Most of the world has become used to food security - but this is not by any means the normal condition of mankind: we need think only of a number of famines during the past two hundred years that have caused tens of millions of deaths.
Some of these have had their roots in natural causes: some have been greatly exacerbated by inappropriate trade policies - like the potato famine in Ireland; but some of the worst - including the famine that followed the collectivisation of farms in the Soviet Union and the Great Leap Forward in Maoist China - were caused by catastrophically inappropriate ideologies.
The recent grounding of aircraft in Europe by the Icelandic volcano eruption illustrated how vulnerable our sophisticated societies are to the vagaries of nature. But what would happen if there were a really serious eruption that led to poor harvests throughout the world for two or three years or longer? The answer is that there would be famine - and those who would be the main victims would be citizens of poor countries that do not have substantial food reserves.
There is perhaps not too much that we can do to counteract the forces of nature. However, there is a great deal that we can do in normal times to increase agricultural production to ensure food security and food self-sufficiency. In particular, we can oppose ideological approaches that can easily lead to famine.
The first thing we must do is to make full use of developing technology to increase food production.
The development of high-yielding grain varieties; the increased use of pesticides, new kinds of fertilisers and the expansion of irrigation systems have all contributed to what has become known as the "Green Revolution". The significantly higher yields in many countries have already gone a long way to ensuring food security in the countries concerned. For example, in India a new variety of rice called IR8 increased rice yields by a factor of almost 10.
Secondly, we should not let ideology influence our approach to agriculture. Some of the greatest famines in history - including those that followed the collectivisation of farms in the Soviet Union and the Great Leap Forward in Maoist China - were caused by catastrophically inappropriate ideological policies.
Similarly, and more recently, the ideologically driven land invasions in Zimbabwe have led to a severe drop in food production and to famine in some areas.
Ill-considered proposals for land reform in South Africa might seriously jeopardise agricultural production by seeking to break up the large farms that produce 80% of South Africa's food. They might unnecessarily undermine the property rights of productive farmers and discourage future investment in agriculture. Most of the land reform schemes have thus far led to a cessation or serious decline in food production. Land reform is essential - but it must be carried out in such a manner that it is fair to all parties and does not undermine food security.
Thirdly, we need to encourage fair global competition. In 2004 OECD countries paid their farmers some $ 280 billion in subsidies. This has led to massive distortions in agricultural markets - to the development of butter mountains and wine lakes in Europe - and to the dumping of agricultural exports in the markets of developing countries. This often had a devastating effect - not only on African food exports - but on the ability of Africans farmers to compete fairly in their own markets.
Failure to reach agreement on the phasing out of farm subsidies has been one of the main obstacles to success in the post Doha negotiations on global trade.
We need to open up agricultural trade. Producers in developing countries often find it very difficult to gain access to first world markets for their agricultural exports. The much acclaimed US African Growth and Opportunity Act opened up trade between the US and 37 African countries - but specifically excluded dairy products, cocoa, coffee, tea, tobacco, nuts and many types of fabrics.
Food production in Africa can be stimulated - not only by opening up access to African food exports in first world countries - but also by breaking down trade barriers between African countries themselves. Tariffs between African countries are generally high - which might explain why only 10% of Africa's trade is with other African countries.
In 2004 the World Bank calculated that liberalisation of agricultural trade between developing countries could lead to a benefit to them of $ 80 billion.
To sum up, there is not much that we can do about catastrophic natural threats - apart from building up our reserves as Pharaoh did during the seven fat years!
However, we can do a great deal to ensure food security and ultimate food self-sufficiency by
making full use of developing agricultural knowledge and technology;
avoiding - at all costs - ideological approaches to food production;
ending unfair trade practices - especially agricultural subsidies; and by
opening up trade in agricultural products.
Issued by the FW de Klerk Foundation, June 29 2010
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Tuesday, June 29, 2010
Saturday, June 19, 2010
Fifa coins it as assets grow beyond $1-billion
Football's world governing body FIFA announced Thursday a recession-busting boost to its finances on the eve of the World Cup despite the economic turmoil buffeting the world.
The 60th FIFA Congress, meeting in Johannesburg, heard revenues topped a billion dollars in 2009 for the first time thanks to marketing and TV contracts -- up sharply from 575 million in 2003.
Expenses were 863 million dollars.
And FIFA’s equity stood at more than a billion dollars at the end of 2009 -- a vast increase compared with just 76 million dollars in 2003.
FIFA President Sepp Blatter, who confirmed he would be standing for election for another term in 2011, said the World Cup in South Africa would generate more income than the tournament four years ago in Germany.
"It's not a question of whether the country is richer or not, rather it is a question of the product and the product is the FIFA World Cup and the product can only be good if the football is good," he told a press conference after the close of the Congress.
Member associations were told that due to the financial success, each would receive a bonus of 250,000 dollars in 2010 and the six confederations would each receive an extra 2.5 million dollars.
An upbeat Blatter, president since 1998, confirmed he would seek re-election at the next Congress in Zurich in 2011 but would not be drawn on whether that would be the last time he would stand.
"I am going to be frank and direct. I haven't finished my job," said Blatter. "I am ready for another mandate at the 61st Congress in Zurich in 2011."
Blatter, 74, later told the press conference: "I'm a happy man because of a happy Congress but now I'm waiting for the kick-off.
I'm really excited," adding that the tournament would be a "win-win" for Africa.
The Congress also heard presentations on measures to protect minors, including the registration of all players whether they are playing for clubs or academies.
And delegates were given an update on the transfer matching system for all international transfers, which will be mandatory from October 1.
Under this system all data relevant to a transfer must be entered into a web-based tool, ensuring full transparency in the process.
Blatter said such measures were important in tackling the exodus of young players from their home countries.
"Naturally we cannot stop everything but once registered, we can intervene," Blatter added.
The Congress also confirmed the suspension of the football association of Brunei Darussalam.
http://www.timeslive.co.za/sport/soccer/article498288.ece/Fifa-coins-it-as-assets-grow-beyond--1-billion?service=print
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
The 60th FIFA Congress, meeting in Johannesburg, heard revenues topped a billion dollars in 2009 for the first time thanks to marketing and TV contracts -- up sharply from 575 million in 2003.
Expenses were 863 million dollars.
And FIFA’s equity stood at more than a billion dollars at the end of 2009 -- a vast increase compared with just 76 million dollars in 2003.
FIFA President Sepp Blatter, who confirmed he would be standing for election for another term in 2011, said the World Cup in South Africa would generate more income than the tournament four years ago in Germany.
"It's not a question of whether the country is richer or not, rather it is a question of the product and the product is the FIFA World Cup and the product can only be good if the football is good," he told a press conference after the close of the Congress.
Member associations were told that due to the financial success, each would receive a bonus of 250,000 dollars in 2010 and the six confederations would each receive an extra 2.5 million dollars.
An upbeat Blatter, president since 1998, confirmed he would seek re-election at the next Congress in Zurich in 2011 but would not be drawn on whether that would be the last time he would stand.
"I am going to be frank and direct. I haven't finished my job," said Blatter. "I am ready for another mandate at the 61st Congress in Zurich in 2011."
Blatter, 74, later told the press conference: "I'm a happy man because of a happy Congress but now I'm waiting for the kick-off.
I'm really excited," adding that the tournament would be a "win-win" for Africa.
The Congress also heard presentations on measures to protect minors, including the registration of all players whether they are playing for clubs or academies.
And delegates were given an update on the transfer matching system for all international transfers, which will be mandatory from October 1.
Under this system all data relevant to a transfer must be entered into a web-based tool, ensuring full transparency in the process.
Blatter said such measures were important in tackling the exodus of young players from their home countries.
"Naturally we cannot stop everything but once registered, we can intervene," Blatter added.
The Congress also confirmed the suspension of the football association of Brunei Darussalam.
http://www.timeslive.co.za/sport/soccer/article498288.ece/Fifa-coins-it-as-assets-grow-beyond--1-billion?service=print
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Friday, June 18, 2010
Eleven Indonesian Banks Pre-Approved for Ex-Im Bank Financing Under $1 Billion Bank Facility
he Export-Import Bank of the United States (Ex-Im Bank) announced today that it has pre-approved 11 Indonesian banks to receive expedited financing under a $1 billion bank facility to support U.S. exports to Indonesia.
The 11 Indonesian banks are Indonesia Eximbank, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Central Asia, Bank Danamon, Panin Bank, Bank CIMB-Niaga, Bank OCBC Indonesia, Bank International Indonesia and Bank UOB Buana.
Ex-Im Bank Chairman and President Fred P. Hochberg announced the new bank facility today at a meeting with Indonesia's Coordinating Ministry in Jakarta.
"With its diverse and growing economy, Indonesia offers great opportunities for U.S. exporters in many sectors. This bank facility will enable Indonesian companies to access Ex-Im Bank-backed financing from their local banks and help Ex-Im Bank approve these transactions more quickly," Hochberg said.
"We anticipate that this bank facility will be very attractive to borrowers because of the currently low rates and the fixed-interest rate options," he added.
The bank facility will support U.S. exports to Indonesia on short, medium and long repayment terms. Both public-sector and private-sector borrowers are eligible.
Applications for Ex-Im Bank financing involving the 11 Indonesian banks can be approved by Ex-Im Bank's board of directors and senior officials through an expedited process because each bank has been pre-approved for credit up to an established limit per bank. Total financing under the facility could reach more than $1 billion.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations.
Ex-Im Bank authorized $279.5 million for U.S. exports to Indonesia in fiscal 2009, including financing for Sikorsky helicopters to P.T. Travira Air.
In fiscal 2009 and 2010, Ex-Im Bank has authorized almost $1 billion in financing to support the export of up to 30 Boeing 737-8000ER aircraft with CFM International aircraft engines to Lion Air, a private-sector airline in Indonesia.
In the first seven months of 2010, the Bank authorized nearly $15.2 billion in loans, guarantees and insurance – more than twice the amount authorized in the same period in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
SOURCE Export-Import Bank of the United States
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
The 11 Indonesian banks are Indonesia Eximbank, Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Central Asia, Bank Danamon, Panin Bank, Bank CIMB-Niaga, Bank OCBC Indonesia, Bank International Indonesia and Bank UOB Buana.
Ex-Im Bank Chairman and President Fred P. Hochberg announced the new bank facility today at a meeting with Indonesia's Coordinating Ministry in Jakarta.
"With its diverse and growing economy, Indonesia offers great opportunities for U.S. exporters in many sectors. This bank facility will enable Indonesian companies to access Ex-Im Bank-backed financing from their local banks and help Ex-Im Bank approve these transactions more quickly," Hochberg said.
"We anticipate that this bank facility will be very attractive to borrowers because of the currently low rates and the fixed-interest rate options," he added.
The bank facility will support U.S. exports to Indonesia on short, medium and long repayment terms. Both public-sector and private-sector borrowers are eligible.
Applications for Ex-Im Bank financing involving the 11 Indonesian banks can be approved by Ex-Im Bank's board of directors and senior officials through an expedited process because each bank has been pre-approved for credit up to an established limit per bank. Total financing under the facility could reach more than $1 billion.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations.
Ex-Im Bank authorized $279.5 million for U.S. exports to Indonesia in fiscal 2009, including financing for Sikorsky helicopters to P.T. Travira Air.
In fiscal 2009 and 2010, Ex-Im Bank has authorized almost $1 billion in financing to support the export of up to 30 Boeing 737-8000ER aircraft with CFM International aircraft engines to Lion Air, a private-sector airline in Indonesia.
In the first seven months of 2010, the Bank authorized nearly $15.2 billion in loans, guarantees and insurance – more than twice the amount authorized in the same period in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
SOURCE Export-Import Bank of the United States
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Africa must launch tough economic reforms, says Clinton
African nations must stop seeking handouts and begin tough structural reforms, particularly in the area of trade, if they truly want to improve their economies, US Secretary of State Hillary Clinton said on Monday.
“Most of the work that needs to be done needs to be done in Africa,” Clinton told a forum about US diplomacy on the continent.
“If you look at trade between African countries, it is abysmally minimalistic,” Clinton said. “African countries don’t trade with themselves. They have barriers and tariffs and customs problems that stand in the way of developing their own economies.”
Clinton’s sharp comments came in response to a question about broadening the African Growth and Opportunity Act (AGOA), a measure passed by Congress in 2000 which gives favourable access to US markets to dozens of African countries.
While many African governments hope the benefits can be made permanent, Clinton signalled that Washington is going to look for signs that African countries are serious about improving their own domestic economic policies.
“The United States will do our part, but African countries have to start doing their part and making the changes that will grow the economies in the sub-Saharan region,” she said.
“It means doing things that are going to run afoul of special interests and government bureaucrats and businesses that already have a lock on a market,” Clinton added.
“They’d rather have the biggest piece of a small pie than a smaller piece of a big pie. So if you are going to have that mentality, it is really hard to utilise the incredible tool that AGOA is.”
Both Clinton and US President Barack Obama have used trips to Africa to stress good governance, saying local leadership is as important as foreign help in the drive to eradicate war, corruption, and disease in Africa.
Although big improvements under AGOA have been made, overall US trade with sub-Saharan African countries remains small, accounting for just slightly more than 1 percent of total US exports and about 3 percent of total US imports in 2008.
US imports from sub-Saharan Africa grew about 28 percent in 2008 to US$86 billion, although higher oil prices accounted for a large chunk of that increase.
Sounding almost exasperated, Clinton indicated that Africa’s arguments for the redress of economic imbalances left by colonialism were beginning to wear a little thin – at least in Washington.
“For goodness sakes, this is the 21st century. We’ve got to get over what happened 50, 100, 200 years ago and let’s make money for everybody. That’s the best way to try to create some new energy and some new growth in Africa,” she said.
Andrew Quinn (Reuters, Washington)
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
“Most of the work that needs to be done needs to be done in Africa,” Clinton told a forum about US diplomacy on the continent.
“If you look at trade between African countries, it is abysmally minimalistic,” Clinton said. “African countries don’t trade with themselves. They have barriers and tariffs and customs problems that stand in the way of developing their own economies.”
Clinton’s sharp comments came in response to a question about broadening the African Growth and Opportunity Act (AGOA), a measure passed by Congress in 2000 which gives favourable access to US markets to dozens of African countries.
While many African governments hope the benefits can be made permanent, Clinton signalled that Washington is going to look for signs that African countries are serious about improving their own domestic economic policies.
“The United States will do our part, but African countries have to start doing their part and making the changes that will grow the economies in the sub-Saharan region,” she said.
“It means doing things that are going to run afoul of special interests and government bureaucrats and businesses that already have a lock on a market,” Clinton added.
“They’d rather have the biggest piece of a small pie than a smaller piece of a big pie. So if you are going to have that mentality, it is really hard to utilise the incredible tool that AGOA is.”
Both Clinton and US President Barack Obama have used trips to Africa to stress good governance, saying local leadership is as important as foreign help in the drive to eradicate war, corruption, and disease in Africa.
Although big improvements under AGOA have been made, overall US trade with sub-Saharan African countries remains small, accounting for just slightly more than 1 percent of total US exports and about 3 percent of total US imports in 2008.
US imports from sub-Saharan Africa grew about 28 percent in 2008 to US$86 billion, although higher oil prices accounted for a large chunk of that increase.
Sounding almost exasperated, Clinton indicated that Africa’s arguments for the redress of economic imbalances left by colonialism were beginning to wear a little thin – at least in Washington.
“For goodness sakes, this is the 21st century. We’ve got to get over what happened 50, 100, 200 years ago and let’s make money for everybody. That’s the best way to try to create some new energy and some new growth in Africa,” she said.
Andrew Quinn (Reuters, Washington)
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Friday, June 4, 2010
U.S. MANUFACTURERS TO SUPPLY FIREFIGHTING VEHICLES FOR EXPORT TO GHANA WITH EX-IM BANK BACKING
U.S. companies, including four subsidiaries of Oshkosh Corp., headquartered in Oshkosh, Wis., will supply 121 customized firefighting vehicles and related equipment for export to the Republic of Ghana, backed by a $41 million loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank).
The U.S. exporter is Project Development International Inc. (PDI), a small and specialized project-management company in Dunedin, Fla.
"This deal demonstrates the solid business opportunities for U.S. exporters in sub-Saharan Africa that Ex-Im Bank can help them achieve. This large export to Ghana will help maintain American jobs at these companies and expand their market share in Africa," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"The support from Ex-Im Bank was like wind under our wings during the years of development of this project. We value Ex-Im Bank's expertise and the exceptionally long repayment terms for the loan that were essential to this successful sale of quality U.S.-made firefighting equipment," PDI President James Lalumiere said.
Four Oshkosh-owned companies are participating in the export. Pierce Manufacturing Inc. in Appleton, Wis., will supply 90 pumper trucks, 10 tanker trucks and four aerial ladder trucks. Jerr-Dan Corp. in Greencastle, Pa., will supply 13 recovery trucks. Iowa Mold Tooling Co. Inc. in Garner, Iowa, is providing four service vehicles and spare parts. Oshkosh Specialty Vehicles Inc. in Harvey, Ill., is supplying four mobile breathing air compressors.
Two U.S. sub-suppliers are also participating. Bauer Compressors Inc. in Norfolk, Va., is supplying high-pressure breathing air equipment to Oshkosh Specialty Vehicles. Smeal Fire & Apparatus Co., a small business in Snyder, Neb., is providing the turntable ladders for the four Pierce aerial ladder trucks.
The export will help Oshkosh maintain employment of its highly skilled workforce in the wake of the recession of 2008-2009 that is continuing to affect domestic orders due to lagging local and state tax revenues.
"We are appreciative of the Export-Import Bank's strong support which is the first step in making this order a reality. Oshkosh looks forward to delivering 120 vehicles from four of our businesses and continued growth throughout Africa," said Tim Raupp, Oshkosh Corporation senior vice president and executive director of International Operations for Fire and Emergency.
The transaction is being financed by an Ex-Im Bank-guaranteed loan from Societe Generale in New York, N.Y. The repayment term is eight years. The credit is secured by the full faith and credit of the Republic of Ghana through its Ministry of Finance and Economic Planning.
The Ghana National Fire Service will purchase the equipment through Ghana's Ministry of Interior Service. The exports will replace existing vehicles, add new equipment for urban fire fighting and help the agency in its planned expansion of fire stations.
The principal supplier, Pierce Manufacturing Inc., was established in 1913 and has manufactured firefighting trucks and related vehicles since the 1940s. The company currently employs approximately 2,250 workers at its production facilities in Appleton, Wis., and in Bradenton, Fla.
Oshkosh Corp. designs and builds a broad range of specialty trucks, truck bodies and access equipment. Oshkosh has a workforce of more than 12,600 employees at its headquarters in Oshkosh, Wis., manufacturing operations in 11 different states and operations around the world.
PDI is a project management company established in 1980 for U.S. and international construction industries. In the last decade, the company has diversified into all aspects of planning, scheduling, and material and equipment procurement.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations. Ex-Im Bank authorized $412 million, including working capital guarantees, for U.S. exports to sub-Saharan Africa in fiscal 2009.
In the first eight months of fiscal 2010 (through April 2010), Ex-Im Bank authorized $14.7 billion in loans, guarantees and insurance - 70 percent of the total amount authorized in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
The U.S. exporter is Project Development International Inc. (PDI), a small and specialized project-management company in Dunedin, Fla.
"This deal demonstrates the solid business opportunities for U.S. exporters in sub-Saharan Africa that Ex-Im Bank can help them achieve. This large export to Ghana will help maintain American jobs at these companies and expand their market share in Africa," said Ex-Im Bank Chairman and President Fred P. Hochberg.
"The support from Ex-Im Bank was like wind under our wings during the years of development of this project. We value Ex-Im Bank's expertise and the exceptionally long repayment terms for the loan that were essential to this successful sale of quality U.S.-made firefighting equipment," PDI President James Lalumiere said.
Four Oshkosh-owned companies are participating in the export. Pierce Manufacturing Inc. in Appleton, Wis., will supply 90 pumper trucks, 10 tanker trucks and four aerial ladder trucks. Jerr-Dan Corp. in Greencastle, Pa., will supply 13 recovery trucks. Iowa Mold Tooling Co. Inc. in Garner, Iowa, is providing four service vehicles and spare parts. Oshkosh Specialty Vehicles Inc. in Harvey, Ill., is supplying four mobile breathing air compressors.
Two U.S. sub-suppliers are also participating. Bauer Compressors Inc. in Norfolk, Va., is supplying high-pressure breathing air equipment to Oshkosh Specialty Vehicles. Smeal Fire & Apparatus Co., a small business in Snyder, Neb., is providing the turntable ladders for the four Pierce aerial ladder trucks.
The export will help Oshkosh maintain employment of its highly skilled workforce in the wake of the recession of 2008-2009 that is continuing to affect domestic orders due to lagging local and state tax revenues.
"We are appreciative of the Export-Import Bank's strong support which is the first step in making this order a reality. Oshkosh looks forward to delivering 120 vehicles from four of our businesses and continued growth throughout Africa," said Tim Raupp, Oshkosh Corporation senior vice president and executive director of International Operations for Fire and Emergency.
The transaction is being financed by an Ex-Im Bank-guaranteed loan from Societe Generale in New York, N.Y. The repayment term is eight years. The credit is secured by the full faith and credit of the Republic of Ghana through its Ministry of Finance and Economic Planning.
The Ghana National Fire Service will purchase the equipment through Ghana's Ministry of Interior Service. The exports will replace existing vehicles, add new equipment for urban fire fighting and help the agency in its planned expansion of fire stations.
The principal supplier, Pierce Manufacturing Inc., was established in 1913 and has manufactured firefighting trucks and related vehicles since the 1940s. The company currently employs approximately 2,250 workers at its production facilities in Appleton, Wis., and in Bradenton, Fla.
Oshkosh Corp. designs and builds a broad range of specialty trucks, truck bodies and access equipment. Oshkosh has a workforce of more than 12,600 employees at its headquarters in Oshkosh, Wis., manufacturing operations in 11 different states and operations around the world.
PDI is a project management company established in 1980 for U.S. and international construction industries. In the last decade, the company has diversified into all aspects of planning, scheduling, and material and equipment procurement.
Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.
In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion, and authorizations supporting small-business exports reached a historic high of $4.4 billion, nearly 21 percent of total authorizations. Ex-Im Bank authorized $412 million, including working capital guarantees, for U.S. exports to sub-Saharan Africa in fiscal 2009.
In the first eight months of fiscal 2010 (through April 2010), Ex-Im Bank authorized $14.7 billion in loans, guarantees and insurance - 70 percent of the total amount authorized in fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Thursday, June 3, 2010
Excitement and Tension Run High in South Africa By Karl-Ludwig Günsche in Cape Town
Only days before the start of the World Cup, South Africans seem as anxious about the planet's biggest soccer festival as they are excited. In a torn country, threats of strikes and uprisings by the poor have put a damper on euphoria. Some groups may use the spectacle to further their own interests.
Peter is a gas station attendant in Springbok, the capital of South Africa's Namaqualandes region, which is famous for its wildflowers. It's only a short distance from the border with Namibia, but you get the first sense here of the football fever that's about to explode across the nation. Hardly any flags can be seen, only a few fans have decorated the mirrors of their cars in the country's colors, and there aren't many people passing through with Bafana-Bafana shirts -- Springbok is not like the big cities.
But Peter managed to get a ticket for the preliminary match between the South African national team and Uruguay on June 16 in Pretoria. "It almost ruined me financially," he says, "and I had to stand in line for a long time. But I want to be there no matter what."
On June 12, he plans to drive with two friends in a beat-up old Toyota to Loftus Vesfeld Stadium in the capital city, a trip that will take three days. "I believe our boys can go far if we just give them enough support," the hopeful young gas station attendant says. For him it's a matter of honor to pack a vuvuzela in his suitcase -- the horn prevalent with South African soccer fans that German national team trainer Joachim Löw has described as "a little irritating over time."
The host country of the 2010 World Cup is completing the last preparations for the mass football festival. The event itself is a breakthrough for South Africa, but it's also been pitched as a harbinger for a new and better future. These are the African games -- meant to liberate the whole continent from an image of war, chaos, illness and catastrophe.
"A victory for the entire continent," is what FIFA head Sepp Blatter called it when he announced in 2004 that the games would be awarded to South Africa. Nelson Mandela had tears of joy in his eyes as he proudly held up the cup, saying, "I feel like a 15-year-old."
'Let Them, Just for Four Weeks, Be Good'
On the streets of Johannesburg, Pretoria and Cape Town, one can feel some of the euphoria that sent the country into a frenzy of joy after the decision six years ago. Supermarkets are decked in the national flag, workers wear South Africa T-shirts, sales of vuvuzelas are booming.
The stadiums have been completed, new hotels and streets have been built. Cape Town Mayor Dan Plato has pledged to host the "greatest party in South African history" the night before opening match. But a number of cars on the streets also have bumper stickers reading, "Fuck FIFA."
Tension and expectations have mixed with quiet fears that the football dream could become a nightmare. Even South Africa's president, Jacob Zuma, seems not entirely free of anxiety. At a women's prayer meeting last Thursday he said: "In this time, we need good South Africans. Let them, just for four weeks, be good. Just for four weeks."
He has good reason to be concerned. Despite the flags and the gorgeous stadiums, the new streets and well-armed police, his country is more divided than ever in recent history. No nation in the world has a gulf between rich and poor as great as South Africa's.
Despite billions of euros in investments related to the 2010 World Cup, last year more than a million South Africans lost their jobs. During the first three months of this year, 171,000 entered the unemployment rolls. The official unemployment rate is over 25 percent, the highest level seen in the past five years. Unofficially, it is estimated to be closer to 40 percent.
A recent study completed by the University of South Africa concluded that 75.4 percent of South Africans fall below the poverty level -- and almost all those poor are black. "Persistent poverty, rising levels of unemployment and violent crime, together with the crisis in the public health sector," writes Amnesty International in its annual report, have contributed at least as much as corruption and nepotism to the often violent protests that have recently shaken South Africa.
Moeletsi Mbeki, brother of former South African President Thabo Mbeki, recently said: "Unlike the elite in Asia, our leaders have simply copied the exploitation mentality of their former oppressors."
Behind the Mood of Celebration, A Country Festers
The façade of a country in a celebratory mood veils a nation that is actually festering, where people are sick and tired of being fobbed off with promise after empty promise. Labor leaders haven't been shy of threatening strikes during the World Cup. "Nobody must say 'Hold on, there are visitors around, don't do anything about this matter,'" Zwelinzima Vavi, who heads the Congress of South African Trade Unions, said last Thursday. "Our struggles … are bigger than the World Cup."
Slum dwellers increasingly fight their fate. In Balfour they even shouted down Zuma, the former national hero. One in every two South Africans are unhappy with the public sector and the state's services, according to a survey by the TNS research institute. The ruling ANC party recently lost a ballot in the Western Cape for the first time, conceding their traditional stronghold to the opposition.
Xenophobic Unrest?
Ahead of next year's local elections, the ruling party is nervous, divided and embroiled in internal power struggles. The ANC leadership appears to have silenced the head of the Youth League, Julius Malema, whose hate speeches and chants fomented a climate of violence and racism. But his followers continue to pile on the pressure. Youth League functionary Loyiso Nkohla called on the ANC youth to devastate Cape Town and make it ungovernable. The mayor of the touristy city, Dan Plato, then called on Khayelitsha township residents to challenge the ANC youth with burning tires, an apartheid-period symbol of oppressive regimes. Amnesty International warned that the violent outbreaks could quickly escalate into xenophobic unrest.
There have also been repeated warnings of terrorist attacks. Press reports, citing intelligence agencies, allege evidence of planned attacks against teams from the Netherlands and Denmark, and against the US vs. England match. These reports were denied by al-Qaida. But, as a precaution, South Africa's security forces are preparing.
The lofty expectations that South Africa and the African continent have for the World Cup seem unattainable. The promised economic boom never came. Instead of the expected 480,000 foreign fans, turnout will likely number about 200,000. Particularly among other African countries, interest in the "African Cup" is running low. Ticket sales are disappointing.
No Economic Boom
Hotels, which put off customers a month ago by hiking prices to unrealistic levels, are now struggling to fill their rooms during the tournament. Tourism experts are warning that some of the newly-built luxury hotels will have to close again.
South Africa's long-hoped-for economic upswing also looks set to flop. Experts expect the World Cup to lift the economy by 0.5 percent, a reduction compared to their previous expectations.
AIDS, poverty, unemployment and violent crime are all a part of everyday life in South Africa. The country has a murder rate of 50 per day, twenty times as high as in Germany. Crime statistics document 50,000 rapes per year. Armed raids on private homes increased by 27 percent, and rose by 20 percent on registered businesses.
Against that bleak backdrop, Police Minister Nathi Mthethwa has assured the world, that for the duration of the tournament, South Africa will be the "safest city in the world". Head of the Police Bheki Cele has promised "the best security in the world."
Cape-based German Ambassador Dieter Haller added that most crime and violence "happened in places where tourists and World Cup visitors would not tend to visit." But such attempts to rationalize away the violence do little for South Africa's victims.
URL:
http://www.spiegel.de/international/world/0,1518,698538,00.html
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Peter is a gas station attendant in Springbok, the capital of South Africa's Namaqualandes region, which is famous for its wildflowers. It's only a short distance from the border with Namibia, but you get the first sense here of the football fever that's about to explode across the nation. Hardly any flags can be seen, only a few fans have decorated the mirrors of their cars in the country's colors, and there aren't many people passing through with Bafana-Bafana shirts -- Springbok is not like the big cities.
But Peter managed to get a ticket for the preliminary match between the South African national team and Uruguay on June 16 in Pretoria. "It almost ruined me financially," he says, "and I had to stand in line for a long time. But I want to be there no matter what."
On June 12, he plans to drive with two friends in a beat-up old Toyota to Loftus Vesfeld Stadium in the capital city, a trip that will take three days. "I believe our boys can go far if we just give them enough support," the hopeful young gas station attendant says. For him it's a matter of honor to pack a vuvuzela in his suitcase -- the horn prevalent with South African soccer fans that German national team trainer Joachim Löw has described as "a little irritating over time."
The host country of the 2010 World Cup is completing the last preparations for the mass football festival. The event itself is a breakthrough for South Africa, but it's also been pitched as a harbinger for a new and better future. These are the African games -- meant to liberate the whole continent from an image of war, chaos, illness and catastrophe.
"A victory for the entire continent," is what FIFA head Sepp Blatter called it when he announced in 2004 that the games would be awarded to South Africa. Nelson Mandela had tears of joy in his eyes as he proudly held up the cup, saying, "I feel like a 15-year-old."
'Let Them, Just for Four Weeks, Be Good'
On the streets of Johannesburg, Pretoria and Cape Town, one can feel some of the euphoria that sent the country into a frenzy of joy after the decision six years ago. Supermarkets are decked in the national flag, workers wear South Africa T-shirts, sales of vuvuzelas are booming.
The stadiums have been completed, new hotels and streets have been built. Cape Town Mayor Dan Plato has pledged to host the "greatest party in South African history" the night before opening match. But a number of cars on the streets also have bumper stickers reading, "Fuck FIFA."
Tension and expectations have mixed with quiet fears that the football dream could become a nightmare. Even South Africa's president, Jacob Zuma, seems not entirely free of anxiety. At a women's prayer meeting last Thursday he said: "In this time, we need good South Africans. Let them, just for four weeks, be good. Just for four weeks."
He has good reason to be concerned. Despite the flags and the gorgeous stadiums, the new streets and well-armed police, his country is more divided than ever in recent history. No nation in the world has a gulf between rich and poor as great as South Africa's.
Despite billions of euros in investments related to the 2010 World Cup, last year more than a million South Africans lost their jobs. During the first three months of this year, 171,000 entered the unemployment rolls. The official unemployment rate is over 25 percent, the highest level seen in the past five years. Unofficially, it is estimated to be closer to 40 percent.
A recent study completed by the University of South Africa concluded that 75.4 percent of South Africans fall below the poverty level -- and almost all those poor are black. "Persistent poverty, rising levels of unemployment and violent crime, together with the crisis in the public health sector," writes Amnesty International in its annual report, have contributed at least as much as corruption and nepotism to the often violent protests that have recently shaken South Africa.
Moeletsi Mbeki, brother of former South African President Thabo Mbeki, recently said: "Unlike the elite in Asia, our leaders have simply copied the exploitation mentality of their former oppressors."
Behind the Mood of Celebration, A Country Festers
The façade of a country in a celebratory mood veils a nation that is actually festering, where people are sick and tired of being fobbed off with promise after empty promise. Labor leaders haven't been shy of threatening strikes during the World Cup. "Nobody must say 'Hold on, there are visitors around, don't do anything about this matter,'" Zwelinzima Vavi, who heads the Congress of South African Trade Unions, said last Thursday. "Our struggles … are bigger than the World Cup."
Slum dwellers increasingly fight their fate. In Balfour they even shouted down Zuma, the former national hero. One in every two South Africans are unhappy with the public sector and the state's services, according to a survey by the TNS research institute. The ruling ANC party recently lost a ballot in the Western Cape for the first time, conceding their traditional stronghold to the opposition.
Xenophobic Unrest?
Ahead of next year's local elections, the ruling party is nervous, divided and embroiled in internal power struggles. The ANC leadership appears to have silenced the head of the Youth League, Julius Malema, whose hate speeches and chants fomented a climate of violence and racism. But his followers continue to pile on the pressure. Youth League functionary Loyiso Nkohla called on the ANC youth to devastate Cape Town and make it ungovernable. The mayor of the touristy city, Dan Plato, then called on Khayelitsha township residents to challenge the ANC youth with burning tires, an apartheid-period symbol of oppressive regimes. Amnesty International warned that the violent outbreaks could quickly escalate into xenophobic unrest.
There have also been repeated warnings of terrorist attacks. Press reports, citing intelligence agencies, allege evidence of planned attacks against teams from the Netherlands and Denmark, and against the US vs. England match. These reports were denied by al-Qaida. But, as a precaution, South Africa's security forces are preparing.
The lofty expectations that South Africa and the African continent have for the World Cup seem unattainable. The promised economic boom never came. Instead of the expected 480,000 foreign fans, turnout will likely number about 200,000. Particularly among other African countries, interest in the "African Cup" is running low. Ticket sales are disappointing.
No Economic Boom
Hotels, which put off customers a month ago by hiking prices to unrealistic levels, are now struggling to fill their rooms during the tournament. Tourism experts are warning that some of the newly-built luxury hotels will have to close again.
South Africa's long-hoped-for economic upswing also looks set to flop. Experts expect the World Cup to lift the economy by 0.5 percent, a reduction compared to their previous expectations.
AIDS, poverty, unemployment and violent crime are all a part of everyday life in South Africa. The country has a murder rate of 50 per day, twenty times as high as in Germany. Crime statistics document 50,000 rapes per year. Armed raids on private homes increased by 27 percent, and rose by 20 percent on registered businesses.
Against that bleak backdrop, Police Minister Nathi Mthethwa has assured the world, that for the duration of the tournament, South Africa will be the "safest city in the world". Head of the Police Bheki Cele has promised "the best security in the world."
Cape-based German Ambassador Dieter Haller added that most crime and violence "happened in places where tourists and World Cup visitors would not tend to visit." But such attempts to rationalize away the violence do little for South Africa's victims.
URL:
http://www.spiegel.de/international/world/0,1518,698538,00.html
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Tuesday, June 1, 2010
South Africa establishes new sources
The visit by South African President Jacob Zuma to Algeria a week ago gave a glimpse of an ongoing shift in the country’s oil relations with other countries. For the past decade or so, the focus has increasingly been to lessen dependency on traditional sources, while engaging new sources in Africa and elsewhere. Other considerations regarding the country’s fuel security have also come into play as oil in South Africa is fast becoming a whole new ball game.
Historically, South Africa has imported most of its crude oil from the Middle East, with a number of major multinationals such as BP, Shell, Caltex, and Total maintaining a dominant presence in the country.
Engen is another player that emerged as a domestic company when Mobil disinvested during the apartheid sanctions years. Engen has since been taken over by Malaysia’s national oil company, Petronas, with which the South African government has a close relationship.
Sasol developed into a major South African oil company in the 1960s, and in recent years into a global player. It supplies fuel-from-gas for the domestic market.
By 2001, Mossgas and Soekor were merged into state oil and gas company PetroSA in a rationalisation of the state's commercial interests in this sector.
PetroSA is involved worldwide in oil and gas exploration, while both Sasol and PetroSA are involved in importing gas and producing liquid fuels from gas.
PetroSA, alongside the Strategic Fuel Fund Association, the Central Energy Fund, and the Petroleum Agency South Africa, all play various roles relating to oil procurement, storage, exploration, marketing and distribution.
This includes managing the Saldanha Bay oil storage facility, one of the largest of its kind in the world, built in the apartheid era to counter sanctions.
Apart from exploration, PetroSA operates two offshore oil fields near Mossel Bay as well as various gas fields along the southern African coast. Multinational oil companies in South Africa also operate a well-developed refining and downstream oil industry. However, their refineries at Cape Town and Durban are ageing and becoming less competitive.
In recent years – because of geopolitical volatility in the Middle East – South Africa has worked toward reducing dependence on oil from Iran by increasing imports from Yemen, Qatar, Iraq, Kuwait, United Arab Emirates, Egypt and Saudi Arabia. At the same time, it has tried to lessen overall Middle Eastern imports and spread its sourcing increasingly to non-Middle Eastern countries.
Imports now come from African countries, South America, Russia and others.
This shift in focus has seen a number of significant oil deals being concluded recently. The first major, and controversial, was in September 2008 when President Hugo Chavez of Venezuela visited South Africa. The two countries agreed to co-operate in oil and gas exploration in Venezuela, refining Venezuelan oil at South Africa’s proposed new refinery at Coega in the Eastern Cape, investment by Venezuela’s state oil company in a local refinery and storage facilities, PetroSA sharing its gas-to-liquids technology with Venezuela, and more.
The announcement heralded another important step toward lessening South African reliance on oil from the Middle East. And there were distinct advantages for South Africa relating to the government’s concerns regarding security of oil supply as outlined in its Energy Security Master Plan for Liquid Fuels that had been released shortly before.
The South African government at the time also believed that Venezuelan oil processed by PetroSA for local consumption would help reduce domestic fuel prices.
In August 2009, during bilateral trade talks, South Africa and Angola signed a number of trade agreements, including co-operation in the oil sector. The oil agreement would allow Petro SA and Angola's Sonangol to work together in oil projects, said Angolan President Jose Eduardo dos Santos at the time.
The state-owned oil companies would work together in the areas of exploration, refining and distribution of oil, it was announced.
With Angola already challenging Nigeria as Africa's largest producer of crude oil, and having enormous hydroelectricity potential, energy was said to have been a key area of discussion. And Brazil and China, two countries with which South Africa has recently been enjoying beneficial and vastly increased trade relations, are already involved in the reconstruction of Angola, including its oil interests.
Shortly after the Angola agreement was signed, it was announced by the Industrial Development Corporation (IDC) in an economic report that South Africa’s trade with the world's four largest emerging markets - Brazil, Russia, India and China (BRIC countries) – had increased from $20.3 billion in 2001 to about $162bn in 2008. Among the bulk of these imports, excluding China, were crude oil and non-crude petroleum products.
During President Zuma’s visit to Algeria last week, he signed, among other things, a memorandum of understanding involving increased trade and co-operation between PetroSA and Algeria's Sonatrach.
PetroSA has been involved in oil production in Nigeria since 2004 and it was said some time ago that the company would be pursuing an interest in two oil blocks in the Democratic Republic of Congo (DRC).
In April, President of the Republic of Congo (Congo-Brazzaville) Denis Sassou-Nguesso announced in Pretoria that the South African company would be given oil production rights in his country.
Equatorial Guinea is another African country with which South Africa has in recent years been stepping up its trade relations, believed to also involve oil.
In addition, PetroSA and Sasol are already importing gas, mainly with a view to boosting the local gas-to-liquid fuel production. These imports will assist to extend the life of PetroSA’s gas-to-liquid refinery at Mossel Bay.
Apart from that, PetroSA has focused its natural gas exploration activities in southern Africa, and exploring for oil in Egypt, Sudan and Equatorial Guinea.
Sasol Synfuels and Qatar Petroleum (QP) signed an agreement to jointly construct an $800-million gas-to-liquids plant.
A development that is symptomatic of the changes taking place in South Africa’s oil supplies is the fact that, after years of secrecy, overriding political and security considerations and protected monopolist practices, the fuel industry in South Africa is heading for a new showdown as competing players variously promote and resist new options in a changed global and local environment.
While state-owned PetroSA wants the government to invest billions of taxpayers’ rands in a new 400 000 barrels-per-day refinery at Coega, known as the Mthombo Project, one of the largest petroleum groups active in South Africa, BP Africa, is cautioning the government against approving the refinery project of more than R77bn.
In fact, BP chief economist Christof Rëhl recently visited South Africa to promote BP’s argument that the proposed refinery would cost a great deal of money for relatively little employment and would not improve anything.
BP also argues that the costs are likely to be much more than envisaged, and that there is a surplus refinery capacity worldwide at present which is likely to be the case beyond 2020.
A new refinery now would be an unfair burden for taxpayers, the company argues, and calls for a comprehensive review of all supply-side options that could have far-reaching implications for the industry. It maintains that the surplus capacity is such that a new refinery would hardly improve South African fuel security.
But the government has so far rejected objections from oil companies such as BP. Last month, Energy Minister Dipuo Peters said the project was key to providing a solution to domestic liquid fuel challenges. According to her, it would address the gap between demand and supply, further reduce the dependence on imported finished product, and promote new standards for clean fuels.
PetroSA has also maintained that building the Coega refinery is the most sustainable solution for meeting the country's need for supply-side security and improved fuel quality. Of course, PetroSA is also concerned about the fact that it has already spent more than R250m on the project, with a further pending investment of R2.4bn to complete the front-end engineering design of the project.
On the other hand, it is widely suspected in industry circles that BP and the other large oil companies operating in South Africa have every reason to resist the competition from a new player which could cut heavily into their super profits, particularly as their conventional refineries are ageing, uncompetitive and not living up to the latest emissions standards.
Mthombo, some say, could threaten the very existence of the oil multinationals in South Africa.
On the local oil exploration front, after years of showing no interest it, it seems Petro SA’s activities, along with new foreign partners, may have prompted the oil giants into action. It has just been announced that Shell hopes to explore for oil and natural gas over an extensive area of South Africa's West Coast. With seawater depth in the proposed region ranging from 150m to about 4 000m, this is likely to be the deepest that Shell has ever prospected for oil.
Indeed, when it comes to South Africa’s oil interests, the time
s they are a changing.
Leadership http://www.leadershiponline.co.za/
http://www.leadershiponline.co.za/reports/617-oil-supply-full-report
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Historically, South Africa has imported most of its crude oil from the Middle East, with a number of major multinationals such as BP, Shell, Caltex, and Total maintaining a dominant presence in the country.
Engen is another player that emerged as a domestic company when Mobil disinvested during the apartheid sanctions years. Engen has since been taken over by Malaysia’s national oil company, Petronas, with which the South African government has a close relationship.
Sasol developed into a major South African oil company in the 1960s, and in recent years into a global player. It supplies fuel-from-gas for the domestic market.
By 2001, Mossgas and Soekor were merged into state oil and gas company PetroSA in a rationalisation of the state's commercial interests in this sector.
PetroSA is involved worldwide in oil and gas exploration, while both Sasol and PetroSA are involved in importing gas and producing liquid fuels from gas.
PetroSA, alongside the Strategic Fuel Fund Association, the Central Energy Fund, and the Petroleum Agency South Africa, all play various roles relating to oil procurement, storage, exploration, marketing and distribution.
This includes managing the Saldanha Bay oil storage facility, one of the largest of its kind in the world, built in the apartheid era to counter sanctions.
Apart from exploration, PetroSA operates two offshore oil fields near Mossel Bay as well as various gas fields along the southern African coast. Multinational oil companies in South Africa also operate a well-developed refining and downstream oil industry. However, their refineries at Cape Town and Durban are ageing and becoming less competitive.
In recent years – because of geopolitical volatility in the Middle East – South Africa has worked toward reducing dependence on oil from Iran by increasing imports from Yemen, Qatar, Iraq, Kuwait, United Arab Emirates, Egypt and Saudi Arabia. At the same time, it has tried to lessen overall Middle Eastern imports and spread its sourcing increasingly to non-Middle Eastern countries.
Imports now come from African countries, South America, Russia and others.
This shift in focus has seen a number of significant oil deals being concluded recently. The first major, and controversial, was in September 2008 when President Hugo Chavez of Venezuela visited South Africa. The two countries agreed to co-operate in oil and gas exploration in Venezuela, refining Venezuelan oil at South Africa’s proposed new refinery at Coega in the Eastern Cape, investment by Venezuela’s state oil company in a local refinery and storage facilities, PetroSA sharing its gas-to-liquids technology with Venezuela, and more.
The announcement heralded another important step toward lessening South African reliance on oil from the Middle East. And there were distinct advantages for South Africa relating to the government’s concerns regarding security of oil supply as outlined in its Energy Security Master Plan for Liquid Fuels that had been released shortly before.
The South African government at the time also believed that Venezuelan oil processed by PetroSA for local consumption would help reduce domestic fuel prices.
In August 2009, during bilateral trade talks, South Africa and Angola signed a number of trade agreements, including co-operation in the oil sector. The oil agreement would allow Petro SA and Angola's Sonangol to work together in oil projects, said Angolan President Jose Eduardo dos Santos at the time.
The state-owned oil companies would work together in the areas of exploration, refining and distribution of oil, it was announced.
With Angola already challenging Nigeria as Africa's largest producer of crude oil, and having enormous hydroelectricity potential, energy was said to have been a key area of discussion. And Brazil and China, two countries with which South Africa has recently been enjoying beneficial and vastly increased trade relations, are already involved in the reconstruction of Angola, including its oil interests.
Shortly after the Angola agreement was signed, it was announced by the Industrial Development Corporation (IDC) in an economic report that South Africa’s trade with the world's four largest emerging markets - Brazil, Russia, India and China (BRIC countries) – had increased from $20.3 billion in 2001 to about $162bn in 2008. Among the bulk of these imports, excluding China, were crude oil and non-crude petroleum products.
During President Zuma’s visit to Algeria last week, he signed, among other things, a memorandum of understanding involving increased trade and co-operation between PetroSA and Algeria's Sonatrach.
PetroSA has been involved in oil production in Nigeria since 2004 and it was said some time ago that the company would be pursuing an interest in two oil blocks in the Democratic Republic of Congo (DRC).
In April, President of the Republic of Congo (Congo-Brazzaville) Denis Sassou-Nguesso announced in Pretoria that the South African company would be given oil production rights in his country.
Equatorial Guinea is another African country with which South Africa has in recent years been stepping up its trade relations, believed to also involve oil.
In addition, PetroSA and Sasol are already importing gas, mainly with a view to boosting the local gas-to-liquid fuel production. These imports will assist to extend the life of PetroSA’s gas-to-liquid refinery at Mossel Bay.
Apart from that, PetroSA has focused its natural gas exploration activities in southern Africa, and exploring for oil in Egypt, Sudan and Equatorial Guinea.
Sasol Synfuels and Qatar Petroleum (QP) signed an agreement to jointly construct an $800-million gas-to-liquids plant.
A development that is symptomatic of the changes taking place in South Africa’s oil supplies is the fact that, after years of secrecy, overriding political and security considerations and protected monopolist practices, the fuel industry in South Africa is heading for a new showdown as competing players variously promote and resist new options in a changed global and local environment.
While state-owned PetroSA wants the government to invest billions of taxpayers’ rands in a new 400 000 barrels-per-day refinery at Coega, known as the Mthombo Project, one of the largest petroleum groups active in South Africa, BP Africa, is cautioning the government against approving the refinery project of more than R77bn.
In fact, BP chief economist Christof Rëhl recently visited South Africa to promote BP’s argument that the proposed refinery would cost a great deal of money for relatively little employment and would not improve anything.
BP also argues that the costs are likely to be much more than envisaged, and that there is a surplus refinery capacity worldwide at present which is likely to be the case beyond 2020.
A new refinery now would be an unfair burden for taxpayers, the company argues, and calls for a comprehensive review of all supply-side options that could have far-reaching implications for the industry. It maintains that the surplus capacity is such that a new refinery would hardly improve South African fuel security.
But the government has so far rejected objections from oil companies such as BP. Last month, Energy Minister Dipuo Peters said the project was key to providing a solution to domestic liquid fuel challenges. According to her, it would address the gap between demand and supply, further reduce the dependence on imported finished product, and promote new standards for clean fuels.
PetroSA has also maintained that building the Coega refinery is the most sustainable solution for meeting the country's need for supply-side security and improved fuel quality. Of course, PetroSA is also concerned about the fact that it has already spent more than R250m on the project, with a further pending investment of R2.4bn to complete the front-end engineering design of the project.
On the other hand, it is widely suspected in industry circles that BP and the other large oil companies operating in South Africa have every reason to resist the competition from a new player which could cut heavily into their super profits, particularly as their conventional refineries are ageing, uncompetitive and not living up to the latest emissions standards.
Mthombo, some say, could threaten the very existence of the oil multinationals in South Africa.
On the local oil exploration front, after years of showing no interest it, it seems Petro SA’s activities, along with new foreign partners, may have prompted the oil giants into action. It has just been announced that Shell hopes to explore for oil and natural gas over an extensive area of South Africa's West Coast. With seawater depth in the proposed region ranging from 150m to about 4 000m, this is likely to be the deepest that Shell has ever prospected for oil.
Indeed, when it comes to South Africa’s oil interests, the time
s they are a changing.
Leadership http://www.leadershiponline.co.za/
http://www.leadershiponline.co.za/reports/617-oil-supply-full-report
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
Willemien Denner, a tralac Researcher, discusses trade policies and the global economic crisis: the Sub-Saharan Africa perspective.
The World Trade Organisation (WTO) estimates that world trade will expand by 9.5 percent during 2010 as the global economy starts to recover from the global financial and economic crisis. Exports from developed countries are expected to increase by 7.5 percent and exports from the rest of the world, including developing countries, by 11 percent in value terms. Although it is expected that it will take another year before world trade values reach, and even surpass the high trade values recorded for 2008, the expected recovery is a significant improvement over the 12.2 percent decline in value terms and 23 percent decline in terms of US dollars recorded for world trade in 2009.
It has been determined that the sharp decline in trade values during the global recession has not been due to an increase in protectionist measures, but rather due to a major decline in global demand. This was exacerbated by the type of products for which demand fell and the fact that the decrease in demand happened across countries and regions. However, some countries implemented more trade restrictive than trade liberalising policy measures and African countries have implemented more post-financial crisis protectionist policies than China. Thus far discriminatory measures have remained the most prominent post-crisis policy response for most African trading partners in 2010.
The 5th Global Trade Alert Report focuses on Sub-Saharan Africa and argues that most African countries have been successful in resisting the temptation to implement protectionist policies, while many of their trading partners have implemented trade restrictive and distortive measures. These include various policies ranging from financial bailouts and export subsidies to government procurement and local content requirements. However, relatively developed African countries, like South Africa, have been able to retaliate against these measures.
Although many developed countries, like Japan and the United States implemented trade restrictive and distorting policies, many emerging countries like Brazil, China and India followed suit. For the G8 countries alone there are 226 trade restrictive measures indicated in the Global Trade Alert database. These measures affect 181 trading partners and 674 tariff lines. In comparison less developed countries implemented only 21 trade restrictive measures which affect 31 trading partners and only 15 sectors.
Some African countries have also implemented fiscal stimulus plans, following in the footsteps of their developed and emerging counterparts. In Mauritius the Government provided a stimulus package for the increase in domestic demand and job creation, while Nigeria provided bailouts for 5 banks. In South Africa the Department of Trade and Industry (DTI) made loans available to distressed manufacturing sectors, including automotives and clothing and textiles while the Industrial Development Corporation (IDC) made funds available to firms in different sectors and approved loans to various companies. Some countries did not have the necessary funds available to provide fiscal packages, rather focussing on the revision of their budgets to generate additional revenue or targeted assistance programs to support only those sectors of economic importance.
Of those trade policy measures which were implemented by African countries, most have been highly discriminatory with South Africa being one of the most protectionist African countries. 65 percent of the measures South Africa implemented during and after the financial crisis have been highly discriminatory policies. Other African countries which are relatively protectionist include Egypt, Morocco, Tunisia and Kenya. What is worrying is that Africa’s traditional trade partners implemented more discriminatory and less liberalising measures. Discriminatory measures were also applied by emerging African countries and other emerging trade partners like Brazil. This can disrupt the sustainability and the real and potential benefits for African countries from their trading relationships with traditional and emerging country trading partners.
The restrictive and protectionist policies which have been followed by most of Africa’s trading partners have indicated that African countries need to broaden their production and exports. African countries were mostly affected by those measures which discriminated against their agricultural commodities entering the markets of their trade partners and third countries. The continuation and increased production and exportation of primary commodities will intensify the competitiveness problems African countries are already experiencing, while building capacity and diversifying exports to higher value products will provide countries with policy space to adapt to the impact of a financial and economic crisis and improve negotiating power in their trading relationships.
Another important consideration for African countries is the need to reduce supply-side and cost constraints. These constraints limit the ability of African countries to participate in international trade by increasing the cost of production and thus worsening the competitiveness of African countries in the global market. To increase the competitiveness of African countries urgent attention needs to be paid to infrastructural deficiencies, including roads, railroads and electricity. A reduction in these constraints can decrease the cost of production which in turn will improve market access for African goods and services.
http://www.tralac.org/cgi-bin/giga.cgi?cmd=cause_dir_news_item&cause_id=1694&news_id=87861&cat_id=1030
Source: WTO; 5th Global Trade Alert
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
It has been determined that the sharp decline in trade values during the global recession has not been due to an increase in protectionist measures, but rather due to a major decline in global demand. This was exacerbated by the type of products for which demand fell and the fact that the decrease in demand happened across countries and regions. However, some countries implemented more trade restrictive than trade liberalising policy measures and African countries have implemented more post-financial crisis protectionist policies than China. Thus far discriminatory measures have remained the most prominent post-crisis policy response for most African trading partners in 2010.
The 5th Global Trade Alert Report focuses on Sub-Saharan Africa and argues that most African countries have been successful in resisting the temptation to implement protectionist policies, while many of their trading partners have implemented trade restrictive and distortive measures. These include various policies ranging from financial bailouts and export subsidies to government procurement and local content requirements. However, relatively developed African countries, like South Africa, have been able to retaliate against these measures.
Although many developed countries, like Japan and the United States implemented trade restrictive and distorting policies, many emerging countries like Brazil, China and India followed suit. For the G8 countries alone there are 226 trade restrictive measures indicated in the Global Trade Alert database. These measures affect 181 trading partners and 674 tariff lines. In comparison less developed countries implemented only 21 trade restrictive measures which affect 31 trading partners and only 15 sectors.
Some African countries have also implemented fiscal stimulus plans, following in the footsteps of their developed and emerging counterparts. In Mauritius the Government provided a stimulus package for the increase in domestic demand and job creation, while Nigeria provided bailouts for 5 banks. In South Africa the Department of Trade and Industry (DTI) made loans available to distressed manufacturing sectors, including automotives and clothing and textiles while the Industrial Development Corporation (IDC) made funds available to firms in different sectors and approved loans to various companies. Some countries did not have the necessary funds available to provide fiscal packages, rather focussing on the revision of their budgets to generate additional revenue or targeted assistance programs to support only those sectors of economic importance.
Of those trade policy measures which were implemented by African countries, most have been highly discriminatory with South Africa being one of the most protectionist African countries. 65 percent of the measures South Africa implemented during and after the financial crisis have been highly discriminatory policies. Other African countries which are relatively protectionist include Egypt, Morocco, Tunisia and Kenya. What is worrying is that Africa’s traditional trade partners implemented more discriminatory and less liberalising measures. Discriminatory measures were also applied by emerging African countries and other emerging trade partners like Brazil. This can disrupt the sustainability and the real and potential benefits for African countries from their trading relationships with traditional and emerging country trading partners.
The restrictive and protectionist policies which have been followed by most of Africa’s trading partners have indicated that African countries need to broaden their production and exports. African countries were mostly affected by those measures which discriminated against their agricultural commodities entering the markets of their trade partners and third countries. The continuation and increased production and exportation of primary commodities will intensify the competitiveness problems African countries are already experiencing, while building capacity and diversifying exports to higher value products will provide countries with policy space to adapt to the impact of a financial and economic crisis and improve negotiating power in their trading relationships.
Another important consideration for African countries is the need to reduce supply-side and cost constraints. These constraints limit the ability of African countries to participate in international trade by increasing the cost of production and thus worsening the competitiveness of African countries in the global market. To increase the competitiveness of African countries urgent attention needs to be paid to infrastructural deficiencies, including roads, railroads and electricity. A reduction in these constraints can decrease the cost of production which in turn will improve market access for African goods and services.
http://www.tralac.org/cgi-bin/giga.cgi?cmd=cause_dir_news_item&cause_id=1694&news_id=87861&cat_id=1030
Source: WTO; 5th Global Trade Alert
US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
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