Saturday, 03 January 2009

Zimbabwe media: Mugabe set to form government

By ANGUS SHAW Associated Press Writer
Posted: 01/03/2009 04:25:07 AM PST

HARARE, Zimbabwe—Zimbabwe's main opposition leader has insisted that he will not become prime minister in a government of national unity until disagreements are settled. There were signs Saturday that President Robert Mugabe would press ahead regardless.

The official Herald newspaper said that Mugabe, who has held power since 1980, was moving toward the "early realization" of a new government to end a monthslong power vacuum.

"President Mugabe has already started preparing an administration," the paper quoted government spokesman George Charamba as saying.

A power-sharing accord reached last September designated Mugabe as president and opposition leader Morgan Tsvangirai as prime minister. Tsvangirai narrowly won the first round of presidential elections but refused to take part in a runoff because of violence against his supporters.

The accord has not been implemented because of disagreement on Cabinet posts. The opposition Movement for Democratic Change is angry that Mugabe has earmarked all the key ministries for his party. It is holding out for control of the Home Affairs ministry—saying this is necessary to stop police violence against opposition supporters—and has rejected a proposal by mediators to split control of the ministry.

In a letter to Mugabe, Tsvangirai said it was "presumptuous" to conclude that his party accepted the allocation of ministers decided on by Mugabe.

Al Qaida 'kills 29 in Algeria over three months'

Dubai: Al Qaida's north Africa wing said it killed at least 29 members of Algeria's security forces in the past three months, a US-based firm which monitors militant
websites reported on Saturday.

In a statement posted on the internet, the group, which calls itself Al Qaida Organisation in the Islamic Maghreb, claimed responsibility for 21 attacks carried out in northern Algeria between September and December, the SITE Intelligence Group said.

The attacks included bombings and ambushes of police and military targets in areas including Bejaia, Constantine and Biskra.

Al Qaida's north Africa wing posted several statements on the Internet last year saying it would not stop its attacks until Algeria was free from French and US influence and what it called the "apostate" Algerian government was removed.

Since adopting the Al Qaida name early in 2007, the group, previously known as the Salafist Group for Preaching and Combat (GSPC), has claimed several attacks, including twin suicide bombings of UN offices and a court building in Algiers in December 2007 which killed 41 people.

Mbeki 'to undergo spiritual rebirth'

By Thabiso Thakali

2009 is going to start with a battle for ANC president Jacob Zuma but end well, while former president Thabo Mbeki could undergo a spiritual rebirth - that's if predictions by two diviners are anything to go by.

Sharing their predictions for 2009 with the Saturday Star, an astrologer and a sangoma agreed that despite what could be a rough start in the new year, there will be better times for Zuma.

And perhaps personal transformation is on the cards for Mbeki in 2009, although, according to astrologer Richard Fidler, he is set to become more reclusive.

"Mbeki's chart shows that he is quietly going to go through a spiritual change. He might become active in social welfare projects or humanitarian work," said Fidler.

"Zuma's astrological chart shows that April [the mooted date for the general election] will be an important month in his life. It shows that he will be more active in this period"

Sweetness Tau, a Vosloorus-based sangoma, predicted that Mbeki would emigrate.

She said Mbeki and his ancestors were unhappy at the way the country was being run at the moment, and this could make him decide to leave.

"There is a high possibility that Jacob Zuma may ultimately become the president of SA, although his legal woes may continue to threaten to derail his plans," she said.

"But because he [Zuma] has been through this before and he has the support of his ancestors, he will survive with few scars."

Both seers were adamant in their predictions that while the Congress of the People would pose a serious threat to the ANC's dominance, the ANC would still comfortably win 2009's general election.

Opposition leader wins presidency in Ghana

By FRANCIS KOKUTSE
ACCRA, Ghana - Opposition leader John Atta Mills won Ghana's presidency, narrowly defeating his ruling party rival in a tense runoff, the election agency of this West African nation announced Saturday.

Mills won Sunday's runoff by capturing 50.23 percent of the vote _ or 4,521,032 ballots _ compared with 49.77 percent _ or 4,480,446 votes _ for ruling party candidate Nana Akufo-Addo, Electoral Commission chairman Kwadwo Afari-Gyan said.

A special revote Friday in a single western district secured Mills' victory. The region of Tain had been unable to vote in the second round because of a shortage of ballots, and the makeup vote _ which took place peacefully despite ruling party efforts to stop it _ became the deciding factor.

"I commend the two candidates for conducting themselves well," the election chief said.

Kenyan president signs controversial media bill

By ELIZABETH A. KENNEDY - Associated Press Writer


NAIROBI, Kenya -- Kenya's president has signed into law a media bill that opponents say threatens the country's hard-fought reputation for having one of Africa's most vigorous press.

Media watchdogs had petitioned against the bill, which gives a communications commission the power to regulate broadcasting under threat of fines or jail time.

In a statement Friday, President Mwai Kibaki said "while press freedom is a cardinal pillar of democracy, it is a right that carries with it special duties and responsibilities."

A controversial part of the bill, which parliament passed last month, allows the government to shut down media outlets by declaring a state of emergency. Several journalists were arrested recently while protesting the bill.

But Kibaki said late Friday that part was not included in the bill he signed.

Kenya is ranked among the world's most corrupt countries, and in the years following independence in 1963 reporters were regularly threatened and censored.

Friday, 02 January 2009

Life's no gas for Ukraine in the energy wars

Ukranian households will be greeting 2009 with a sharp sense of deja vu.

It's the third time in two years Russia has turned off the taps.

The dispute behind the old Iron Curtain is ostensibly about Russia collecting long-standing debts.

But it has the kind of intrigue you might find in a Cold War thriller: a power battle in Ukraine, sleaze allegations levelled at top gas executives plus a long-standing economic row over just how much Ukraine should pay to pipe gas from its old Soviet master and neighbour.

Although countries like Hungary lost up to 40 per cent of gas they receive via Ukraine during the brief switch-off in January 2006, it's unlikely this latest flare-up will have the same impact.

But it's re-opened the debate over how much customers across Europe should pay for gas and where we source it...

It means countries can turn to the vast gas fields around North and West Africa's coasts as alternatives.

Congo president makes a promise of peace

KINSHASA: Democratic Republic of the Congo President Joseph Kabila vowed to bring peace to his war-ravaged country before the end of 2009 in a rare televised address to the nation.
“Our objectives for 2009 will be and remain those given to the government when it was formed: first and foremost is the consolidation of peace and security, in particular in the east of the country,” Kabila said as the New Year was about to dawn.
“Our determination is undeniable and all options will be looked at to this effect,” the Congolese president said.

Ghana party bids to halt key vote

Ghana's ruling party is seeking to delay voting in a remote district that could decide the outcome of the knife-edge presidential run-off election.

Ruling party officials say a fair vote can not be held and they will boycott the poll in Tain if it goes ahead.

Tain constituency did not vote with the rest of the country on Sunday because of a problem distributing the ballots.

Opposition candidate John Atta Mills has a narrow lead over the ruling party's Nana Akufo-Addo.

"We are trying to stop the election because we think the security situation on the ground is not conducive for a free and fair election," Arthur Kennedy, a spokesman for the ruling New Patriotic Front (NPP), told AFP news agency.

Tuesday, 30 December 2008

Russian-Libyan Venture Plans $6.73 Billion Power Projects in Africa and Middle East

Russia's state-owned power plant developer, Technopromexport (Moscow, Russia), and Libya African Investment Portfolio (LAIP) (Tripoli, Libya), a state-owned investment fund, have joined to construct and operate power-generating facilities in six African states--Algeria, Egypt, Ghana, Libya, Namibia and Uganda--and Yemen in the Middle East. The two firms have established a joint venture company, Laptechno-Power, for this undertaking. LAIP will finance these projects, the total cost of which amounts to $6.73 billion.

Laptechno-Power will first undertake the construction of a 1,250-km electric transmission line with a capacity of 400-kW in Libya. Technopromexport has reportedly concluded the topographic survey for the project. The firm has also drafted a preliminary design and proposed a commercial offer for three sections of the transmission line, including the 470-km Tobruk-Benghazi section, the 400-km Tobruk-Adjabia section and the 380-km Sirt-Beni Walid-Abu Argub section. Another project that tops the priority list is a hydropower plant with a power generation capacity of 300-MW on the Blue Nile River in Uganda.

On April 17, 2008, Russia and Libya entered into a memorandum of understanding for mutual cooperation in the power sector during a visit to Libya by Russian President Vladimir Putin. Technopromexport and LAIP entered into an agreement in November this year to establish Laptechno-Power as a general contractor for turnkey construction projects in Africa and the Gulf region.

LAIP, a part of the Libyan Investment Corporation, was established in 2006 with an initial investment of $5 billion as a fund committed to financing projects in African nations. LAIP is currently funding projects in diverse sectors, including agriculture, aviation, real estate, and oil refining and distribution.

Industrial Info Resources is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.

Zambia to get credit rating in 2009: central bank

Zambia should receive a sovereign credit rating early in 2009 after the process stalled in part to the death of President Levy Mwanawasa in August, central bank Governor Caleb Fundanga said on Monday.

Mwanawasa, whose economic management won Zambia billions of dollars in debt relief, died after a stroke. He was replaced in October by Rupiah Banda, but a prolonged electoral dispute and anti-government riots stymied the country's economic progress.

Fundanga said J.P. Morgan, Zambia's financial advisor, had already done the bulk of work required for the credit rating.

Zuma urges tougher crime laws

Johannesburg - ANC president Jacob Zuma on Monday urged tougher legislation against crime.

"I am convinced that within the parameters of the Constitution there is significant space for us to toughen legislation against all forms of criminality and to erase the space within which criminals are able to operate," he told The Star newspaper.

"Criminals must know that breaking the law will have severe consequences and that they'll suffer as a result of their actions," said Zuma.

Critics say that current legislation is not adequate or tough enough to prevent crimes and deter criminals.

"Adequate and long sentences that fit the crimes that are committed and the detrimental consequences these have on our society must be handed down by our courts," said Zuma.

He said that while the African National Congress (ANC) would not "erode" rights enshrined in the Constitution, he wanted to see the establishment of an efficient and transformed criminal justice system, working with communities to fight crime.

"The goal is to reduce serious and violent crime by seven to 10% per year," he said.

'Killing fields'

Crime-weary South Africa's new Safety and Security Minister, Nathi Mthethwa, vowed last month to deal firmly with armed violence, saying police in the "killing fields" had to be ready to return fire.

Addressing Parliament, Mthethwa said his top priorities would be fighting organised crime, improving crime intelligence and strengthening the capacity of task forces.

South Africa summons Israeli Ambassador to the Union Buildings

Pretoria – South African Deputy Minister of Foreign Affairs, Ms Fatima Hajaig, today, Monday, 29 December 2009, summoned the Israeli Ambassador, Mr Dov Segev-Steinberg, to a meeting at the Union Buildings in order to express the grave concern of the South African government at the brutal assault by Israeli military forces on the Palestinian people in Gaza. She stressed that what is going on is a gross violation of the rights of the people of Gaza.

The Deputy Minister emphasised to the Ambassador that the large-scale loss of life and injuries to the inhabitants of Gaza, including women and children, as well as the destruction of physical infrastructure in the territory, such as mosques, schools and universities, is totally unacceptable and she called upon Israel to stop this aggression immediately.

The deputy minister informed Ambassador Segev-Steinberg that the South African government found the continued siege of Gaza unacceptable as it does not allow humanitarian relief supplies such as medicines, food, water and medical supplies to reach the desperate people of Gaza.

The South African government called on the Israeli government to stop the military onslaught in Gaza and to immediately and unconditionally withdraw its forces currently amassing on the border.

The deputy minister stated that no amount of bloodshed or destruction of infrastructure will bring peace to either the people of Israel or the people of Palestine.

The South African government called on all parties involved in the conflict to return to negotiations without preconditions in order to bring about a lasting solution as outlined in the Oslo Accords, Camp David negotiations and Annapolis Peace Conference.

Monday, 29 December 2008

Somali president quits amid international pressure


By Mohamed Olad Hassan and Elizabeth A. Kennedy
Associated Press

MOGADISHU, SOMALIA: The president of Somalia's U.N.-backed government resigned today amid deepening international pressure, a move that could usher in more chaos as a strengthening Islamic insurgency scrambles for power.

Within hours of Abdullahi Yusuf's resignation, mortars shells slammed into the pockmarked streets near the presidential palace in the capital, Mogadishu, where the government maintains only a token presence.

Yusuf is the latest leader to have failed to pacify Somalia during two decades of turmoil. The Horn of Africa country has been beset by anarchy, violence and an insurgency that has killed thousands of civilians and sent hundreds of thousands fleeing for their lives.

''Most of the country is not in our hands,'' Yusuf said in a speech before parliament in Baidoa — one of the only towns controlled by Somalia's government, which has been sidelined by Islamic insurgents with alleged ties to al-Qaida.

There have been more than a dozen attempts to form an effective government since 1991. Meanwhile, all public institutions have crumbled and the once-beautiful seaside capital is now a gun-blasted shantytown. The lawlessness also has allowed piracy to flourish off the coast in the Gulf of Aden, one of the world's busiest shipping lanes.

In the address broadcast nationwide on the radio, Yusuf said he could not unite Somalia's bickering leadership and that the country was ''paralyzed.''

''After seeing all these things, I have finally quit,'' said Yusuf, who was president for four years. Meanwhile, troops from neighboring Ethiopia are scheduled to pull out this week, leaving a massive power vacuum after two years of propping up the weak Somali government.

The parliament speaker will stand as acting president until parliament elects a new leader within 30 days. There have been no announcements of who might be under consideration, but many believe Yusuf's absence will allow moderate Islamist leaders into the government. Yusuf had largely rejected that idea.

The most aggressive Islamic insurgency group, al-Shabab, has made dramatic territorial gains in recent months, and insurgents now control most of the country. In a statement today, al-Shabab said Yusuf was resigning ''with shame.'' The statement said it was too early to tell if Yusuf's replacement would be an improvement.

The United States accuses al-Shabab of harboring the al-Qaida-linked terrorists who blew up the U.S. embassies in Kenya and Tanzania in 1998. Many of the insurgency's senior figures are Islamic radicals; some are on the State Department's list of wanted terrorists.

The U.N. envoy to Somalia, Ahmedou Ould-Abdallah, who has been trying to salvage an ineffective peace deal in the country, welcomed Yusuf's resignation and said ''a new page of Somalia history is now open.''

The United Nations has brokered peace deals between the government and an opposition faction, but they have failed to quell the political and violent chaos. Al-Shabab has refused to participate in the talks.

Yusuf, who like many of Somalia's leaders is a former warlord, has been accused of being an obstacle to peace. Earlier this month, he tried to fire his prime minister, but was rebuffed by parliament. Neighboring countries, including Kenya, have threatened to impose sanctions on Yusuf and his family.

''I am happy that the Somali president has resigned,'' Prime Minister Nur Hassan Hussein said. ''I wish him to become a Somali elder and play a role in the common endeavor to restore peace and order in Somalia.''

Thousands of civilians have been killed or maimed by mortar shells, machine-gun crossfire and grenades in near-daily fighting in this arid country. The U.N. says Somalia has 300,000 acutely malnourished children, but attacks and kidnappings of aid workers have shut down many humanitarian projects.

Rights groups have accused all sides in the conflict — Islamic insurgents, the government and Ethiopian troops — of committing war crimes and other serious abuses for indiscriminately firing on civilian neighborhoods.

Ethiopia's planned withdrawal of troops would end their unpopular presence and leave the administration more vulnerable to insurgents. The Ethiopians entered Somalia two years ago with the tacit approval of the United States to drive out an earlier group of Islamic insurgents.

Somalia has been ravaged by violence and anarchy since warlords overthrew dictator Mohamed Siad Barre in 1991 and then turned on one another. The current transitional government was formed with U.N. help in 2004.

Yusuf, a former Somali army colonel in the 1960s, was jailed by Barre when he refused to cooperate in a coup d'etat in 1969. Although Yusuf is a member of one of Somalia's four biggest clans, the Darod, he was unpopular in Mogadishu because of his ties to Ethiopia — one of Somalia's traditional enemies.


Elizabeth Kennedy reported from Nairobi, Kenya. Associated Press writers Mohamed Sheikh Nor in Mogadishu and Malkhadir M. Muhumed in Nairobi also contributed to this report.

MOGADISHU, SOMALIA: The president of Somalia's U.N.-backed government resigned today amid deepening international pressure, a move that could usher in more chaos as a strengthening Islamic insurgency scrambles for power.

Within hours of Abdullahi Yusuf's resignation, mortars shells slammed into the pockmarked streets near the presidential palace in the capital, Mogadishu, where the government maintains only a token presence.

Yusuf is the latest leader to have failed to pacify Somalia during two decades of turmoil. The Horn of Africa country has been beset by anarchy, violence and an insurgency that has killed thousands of civilians and sent hundreds of thousands fleeing for their lives.

''Most of the country is not in our hands,'' Yusuf said in a speech before parliament in Baidoa — one of the only towns controlled by Somalia's government, which has been sidelined by Islamic insurgents with alleged ties to al-Qaida.

There have been more than a dozen attempts to form an effective government since 1991. Meanwhile, all public institutions have crumbled and the once-beautiful seaside capital is now a gun-blasted shantytown. The lawlessness also has allowed piracy to flourish off the coast in the Gulf of Aden, one of the world's busiest shipping lanes.

ANALYSIS-Guinea's coup: a true break with past or deja vu?

By Saliou Samb

CONAKRY, Dec 28 (Reuters) - Guinea's new military rulers must swiftly meet promises of fighting graft and preparing for free elections if they are to avoid the route of other would-be reformers in Africa who badly outstayed their welcome.

Seizing control of the world's No. 1 bauxite exporter after the death of President Lansana Conte a week ago, the young officers of the National Council for Democracy and Development junta have been unopposed in what is so far a bloodless coup.

Led by a 44-year-old little-known army supply corps captain, they have promised a clean break from a nearly quarter century of Conte's rule, which saw the diabetic, chain-smoking general govern with a corrupt clique of military and civilian cronies.

Capt. Moussa Dadis Camara has promised elections in December 2010, saying he has no wish to keep power. He has also pledged to review multi-billion dollar mining contracts with foreign firms.

But although Camara has been cheered in the streets and applauded by political and civil society leaders, Africa watchers say his words are the staple offering of incoming reformers, used more often than not to justify violent or unconstitutional takeovers.

"We've seen this before in Africa -- the young guard wanting to have the trappings and power of the old guard. And then it's always the people who get left out," Corinne Dufka, senior West Africa researcher for Human Rights Watch, told Reuters.

"If Camara is serious, he needs to hold elections quickly, well before 2010. Guineans are fed up, they want democracy and have been denied it for years."



SAVIOURS

Africa's turbulent half century of post-independence history has seen a legion of self-styled "saviours" and reformers, and national liberators, from Uganda's Idi Amin to Zimbabwe's Robert Mugabe whose bright, crusading starts in power have degenerated into long, autocratic, inept, and nepotism-riddled regimes.

Many also started off with domestic and foreign blessing.

Guinea's own Conte, who as a colonel took over in a bloodless 1984 coup after the death of the first president, the Marxist Sekou Toure, made similar early public pledges to usher in an a new era of freedom and prosperity.

Conte did introduce multi-party democracy after the end of the Cold War, and opened up Guinea to wider foreign investment.

But he remained a military autocrat, increasingly capricious and reclusive at the end of his rule, tolerating no rivals and keeping power and privilege in the hands of a small elite, whose squabbling members he skilfully played off against each other.

The vast majority of Guineans still live in poverty, without regular electricity or piped water despite the nation's mineral riches, which besides a third of the world's known bauxite -- used to make aluminium -- include gold, iron ore and diamonds.

"We can't abandon our fate to soldiers. We need to get back as quickly as possible to a civil regime," said Madani Dia, a political analyst from a local Guinean think-tank, Agora.

South Korea weapons sales top $1bln for first time

SEOUL, Dec 29 (Reuters) - South Korea's yearly overseas arms sales topped $1 billion for the first time in 2008, a government agency said on Monday, while officials were quoted as saying the country aims to soon be one of the world's top 10 arms exporters.

South Korea's biggest exports in 2008 included self-propelled guns, aircraft and naval vessels with its main customers being Middle Eastern states and ally the United States, the Defence Acquisition Programme Administration said in a statement.

South Korea had been increasing its sales to developing countries in Africa and Latin America, the agency said without naming specific buyers.

South Korea is looking to sell $3 billion worth of arms by 2012 and be one of the world's top 10 arms exporters in the next few years, Yonhap news agency reported defence officials as saying. The Defence Ministry would not confirm the report.

The military is hoping the main drivers in weapons exports will be its next generation K-2 tank and T/A 50 supersonic fighter-trainer developed by its aerospace industry with help from Lockheed Martin Corp (LMT.N), Yonhap said.

"We should think in terms of how much of the market share we take, rather than amounts," it quoted Colonel Lee Hyun-soo, a senior official in the export trade, as saying.

Over the past several years, South Korea has sought to improve its weapons technology to boost its deterrence against North Korea, which has a numerical superiority in troops but antiquated weapons systems.

The military has found increased opportunities for exports as it has improved its weapons.

Elephants ready to party as eBay ban approaches

What with a deepening global recession it's been pretty much a lousy 2008 for most folks, but it's closing on a very good note--if you happen to be an elephant, that is.

Come January 1, eBay's worldwide ban on ivory products goes into effect, a move that animal rights advocates hope will help protect elephant populations around the world.

The proliferation in the illegal trade of wildlife species has been aided by the use of the Internet. In a recent report (PDF), the International Fund for Animal Welfare found that about two-thirds of the global online trade in protected wildlife takes place on eBay's platform. The group said that poachers kill more than 2,000 elephants in Africa and Asia annually to meet demand for ivory products.

The sale of elephant ivory has been illegal since 1989 (although there are certain exceptions to the prohibition).

In a statement, Jack Christin, senior regulatory counsel for eBay had this to say:

"Due to the unique nature of eBay's global online marketplace and the complexity surrounding the sale of ivory, we decided to ban the sale of ivory on eBay. We appreciate the support from the IFAW in assisting us and we look forward to continuing to work with them on the implementation of the global ban. Like the IFAW, ultimately we feel this is the best way to protect the endangered and protected species from which a significant portion of ivory products are derived."

Groundhog Year in Prison Nation

2008 in Ethiopia was Groundhog Year! It was a repetition of 2007, 2006, 2005, 2004… Everyday millions of Ethiopians woke up only to find themselves trapped in a time loop where their lives replayed like a broken record. Each “new” day is the same as the one before it: Repression, intimidation, corruption, incarceration, deception, brutalization and human rights violation. Everything that happened to them the previous day, the previous week, the previous month, the previous 18 years happens to them today. They are resigned to the fact that they are doomed to spend the rest of their lives asphyxiated in a Prison Nation. They have no idea how to get out of this awful cycle of misery, agony, despair and tribulation. So, they pray and pray and pray and pray… for deliverance from Evil!

It was a historic year


2008-12-28 11:57:10
By Richard Mgamba and Rodgers Luhwago

Most Tanzanians may not have had much cause to smile during the year 2008, due to the tough economic situation, but they were gladdened by dramatic, historically significant events, topping the list being the government`s earnest move to probe and prosecute perpetrators of grand corruption.

Looking at the laundry list of the events spanning the past 12 months - the dramatic resignation of prime minister Edward Lowassa, the four-day historic visit by the world`s most powerful leader, US President George W. Bush, the resignation of three senior cabinet ministers, the EPA scam and the arrest and prosecutions of top individuals - the year under review was truly historic, and will remainfor a long time in the minds of the Tanzanians and even external observers.

Economically it was a tough year because of the dramatic surge of fuel prices at the global market reaching a record high of $146 per barrel, while food production plummeted extremely, posing a threat to millions of people, especially in the Third World.

At the global level, there was an ill-omened frailty about the economic trend following the financial turmoil that emerged suddenly during the last quarter of 2008.

In mid-September, the financial system came close to collapse. The failure of Lehman Brothers, the 158-year-old Wall Street investment bank, triggered panic in markets.

Nigerian Economy In 2009: Hard Times Knock Hard

With the current uncertainty of international oil prices, the global financial economic meltdown already mounting pressure on the Nigerian banking industry, and the sheer confusion and politicisation of Budget 2009 proposal, MARCEL MBAMALU writes that it has become imperative for the managers of both the Nigerian economy and the business community to put on their thinking caps and tighten seat belts for a rough ride in 2009.

Three days to the end of the year, Nigeria appears to be neck-deep in what, for want of a better expression, one might describe as a reversal of fortunes.

Reversal of fortunes in the sense that the economy is taking a beating - the global economic meltdown is, indeed, taking a toll on Nigeria and the unmitigated impact, when carried over to 2009, portends greater difficulties for weaker countries of the world, including Nigeria.

In the last four years, Nigeria had enjoyed an unprecedented macro-economic stability, high revenue growth, and some impetus for growth.

Foreign Direct Investment, portfolio investment had climbed to an all-time high; remittances from Nigerians living broad had also been growing.

But all of a sudden, the economy began a very steep downward trend, at a rate that is, to say the least, very frightening to all stakeholders, especially the manufacturing sector.

First was the unseasoned bearish default in the stock exchange, which some analysts optimistically described as a mere flash in the pan.

But soon, the country was, again, hit by the hurricane of the decline in price of crude. Subsequently, foreign reserves began a process of depletion that brought the figure from $63 billion, to about $50 billion, only within a short time. Government revenue has been declining, with greater emphasis on tax collection.

Zambia urges mining firms to keep operating

By Shapi Shacinda
LUSAKA, Dec 29 (Reuters) - Zambia has asked foreign mining firms to use profits they made when copper prices were high to keep working in the downturn, its central bank chief said on Monday after Luanshya Copper Mine (LCM) suspended operations.
Bank of Zambia (BoZ) governor Caleb Fundanga expressed optimism that copper prices would soon rebound but said the developments at LCM were a threat to the country's copper industry.
LCM shut down its Chambishi Metals Plc unit, the country's largest cobalt producer, and the Baluba copper mine soon after suspending the $354 million Mulyashi copper project, which had been due to start producing 60,000 tonnes of copper in 2010.
It cited operational difficulties arising from the global credit crunch as reasons for the decision.
"The fact that there has been a low copper demand and prices have seen a downward trend is a development with lots of implications. However, (mining firms) must be able to weather the storm, it's a bit too early to leave (and) it's not too good to leave in a rush," Fundanga told Reuters.

Rio wants to meet Guinea govt on iron ore project

Mon 29 Dec 2008, 11:29 GMT
[-] Text [+]

LONDON (Reuters) - Mining group Rio Tinto is seeking a meeting with the new military junta in Guinea to discuss its $6 billion Simandou iron ore project, the firm said on Monday.

Rio -- the world's fourth biggest diversified mining group by market value -- had been locked in a dispute about Simandou with the previous government of President Lansana Conte, who died last week, sparking a military coup.

"One of main priorities is that we want to fix up a meeting with the new government as soon as possible to discuss the situation," spokesman Nick Cobban said.

On Saturday, the military junta led by Captain Moussa Dadis Camara in the West African state said "defective" mining contracts would be revised, without naming firms or projects.