India Business News

BRICS – Brazil, Russia, India, China … and South Africa (or BASIC?)

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

Denmark's Queen Margrethe (C) gives a toast to German Chancellor Angela Merkel (3rd L), U.N. Secretary General Ban Ki-Moon (L), China's Premier Wen Jiabao (3rd R), South Africa's President Jacob Zuma (2nd R), Mexico's President Felipe Calderon (R) and other guests during a dinner at the United Nations Climate Change Conference 2009 in Copenhagen December 17, 2009.

BRICS or BASIC? For many a year mere mention of the term BRIC has been guaranteed to set South African officials’ teeth grinding.

As the economic powerhouse of sub-Saharan Africa, South Africa has long dreamt of being a global player since the end of apartheid – and been frustrated by the fascination of so many economists with the big four emerging economies, the so-called BRIC nations (Brazil, Russia, India, and China), to the exclusion of South Africa.

Now, however, South Africa is daring to dream again, as is Jacob Zuma, its sometimes controversial leader, who just may have found a compelling geopolitical theme for his nine-month-old presidency.

Much has been made of the dramatic final evening at December’s climate change conference in Copenhagen when Barack Obama paid a call on the Chinese delegation, only to find that a meeting was already under way between Chinese, Brazilian, Indian, and South African leaders. Read the rest of this entry »

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Nigeria Reassures Investors on New Lekki Greenfield Oil Refinery

Oil RefineryNigeria’s state-run oil firm Nigerian National Petroleum Corporation (NNPC) on Friday reassured Oando, ONGC Mittal Energy (OMEL), and other oil firms that it fully supported building the OPEC member’s first crude refinery in more than 20 years.

Mohammed Barkindo, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), said NNPC will partner investors to develop the Lekki Greenfield Refinery near the commercial capital Lagos with the aim of starting production in 2017.

Nigeria’s four state-owned refineries have failed to keep pace with surging domestic demand for electricity and gasoline, forcing Africa’s biggest energy producer to import 85% of its fuel needs. Read the rest of this entry »

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South African Hedge Fund Industry Presents a Compelling Case through Global Downturn, Says Hedgeweek

HedgeweekSouth Africa’s market architecture has withstood the seismic shocks unleashed by the global financial market collapse. While the rest of the world, including the in-favor quartet of Brazil, Russia, India and China, dusts itself off and revisits the drawing board, South Africa is ready to capitalize on its solid foundation and prudent construction in an environment of fast-paced recovery.

A sophisticated, regulated, and transparent environment that offers multiple opportunities for alpha extraction in a maturing market, South Africa is unfortunately still often overlooked when it comes to allocations to emerging market economies.

On a structural level, South Africa’s infrastructure has the bells and whistles that one should expect from a ‘new world’ financial system. Its banks are strong, competitive and well-capitalized. Over the past few months there have been no crises or need for government bail-outs. There is open communication and collaboration between regulators and market participants, who are already comfortable with the concept of unrestricted regulatory insight into activities and a conservative approach to consumer credit and financial engineering. Read the rest of this entry »

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Zain Lifts Ownership Cap; Still in Talks to Sell African Operations

ZainKuwait’s largest telecommunications company, Zain, whose shareholders voted to lift a cap restricting ownership on Monday, is in talks to sell a stake in its African operations, says Zain CEO Saad al-Barrak.

Zain is in talks with a number of partners concerning its African assets and “all scenarios are possible”, Saad al-Barrak said after an extraordinary shareholder meeting. “There is a demand (for) African assets beyond what we expected. There are a number of partners interested and we are still in preliminary talks,” Barrak told reporters.

Saad al-Barrak was quoted by a local newspaper earlier this month as saying Zain was in talks with three major telecommunications firms, including one from India. Asked if this report is correct, he said: “I think that’s correct to a far degree.” He declined to name any firm.

Indian company Reliance Communications has started talks to buy Zain’s African operations, two banking sources told Reuters earlier this month. Zain, in the middle of a strategic review and which is being advised by UBS, said on July 8 it was reviewing a possible sale of African operations. Read the rest of this entry »

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Facebook Lite Targets Mobile and Dial-Up Users in Emerging Markets

FacebookSocial networking kingpin Facebook is now trialing a new streamlined service dubbed Facebook Lite, with an emphasis on mobile and dial-up users in geographic regions where broadband services are limited, non-existent, or simply too expensive for most users.

Facebook says that Facebook Lite simplifies its conventional social networking platform, offering users accelerated loading times and access to basic services like writing on people’s walls, sending messages, browsing photos, and accepting new friend requests. Read the rest of this entry »

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Seacom Cable to Cut South Africa’s Broadband Costs

SEACOMSeacom, the $600 million underwater fibre-optic cable, has opened the prospect of much greater competition in one of the developing world’s most expensive and limited telecommunications markets.

The Seacom cable links south and east Africa to global networks in India and Europe. Seacom will reduce the cost of wholesale broadband capacity by more than 90%, allowing South Africa’s fixed-line and mobile operators to offer better and cheaper products.

“Today marks the dawn of a new era for communications between the continent and the rest of the world,” said Brian Herlihy, Chief Executive Officer of Seacom, the group that has built the 17,000km cable. Read the rest of this entry »

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Zondwa Mandela, Mandela’s Grandson, Eyes Africa Deals

Zondwa MandelaAs a small boy, Zondwa Mandela regularly visited his grandfather Nelson Mandela and grew close to the legendary leader of the anti-apartheid struggle. After Nelson Mandela was released from prison in 1990, he would often interrupt his paperwork to conduct impromptu exercise sessions and dispense advice to his young grandson.

“We would do press-ups … and he would do them on two fingers, he was a very strong man.” laughs Zondwa Mandela, who is the son of Nelson Mandela’s youngest daughter. “The big key, he used to say, was education and that you always needed to remain grounded. But the lesson I always learned from him is that everything is possible.”

Two decades on, Zondwa Mandela, who is now 25, is putting his grandfather’s counsel to the test as he sets his sights on a business career. Together with another man with a prominent political name, Khulubuse Zuma, the 39-year-old nephew of South Africa’s new president, Jacob Zuma, Zondwa Mandela has launched an ambitious venture that will invest in African emerging markets.

“We want to find something, improve it, and expand on it. But we want to do something for Africa and empower its people,” says Zondwa Mandela. His language clearly seeks to echo the idealism that led his grandfather to sacrifice the best years of his life to the fight against apartheid.

His new venture still has much to prove if it is to be seen as a serious business and not an instance of two scions of prominent families trading on their famous names.

The business will certainly have a rather easier ride than his grandfather faced in his youth. The pair are well placed to benefit from controversial black empowerment policies, under which, since 1994, large chunks of corporate South Africa have been transferred to black owners. Read the rest of this entry »

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