Gabon Enters Into Significant Partnerships with Multinationals from India and Singapore

On the Fiftieth Anniversary of Gabon’s Independence, and as part of President, Ali Bongo Ondimba’s national program to turn Gabon into an “emerging economy” investment category, four major agreements were signed with multinational companies from India and Singapore. The total value of the projects is 4.5 billion US$, a major contribution to Gabon’s economic growth. The agreements cover four major projects:

• An infrastructure project to finalize 1000kms of roads, among them the revitalization of the “La Nationale” road/highway..

• The special economic zone in Nkok devoted to local timber transformation.

• A palm grove project in the savanna zones like Mouila, in the province of Ngounié and Tchibanga, in the province of Nyanga.

• A housing project with 5000 social housings for a modest price in Libreville.

The projects are expected to create more that 50.000 direct and indirect jobs. The strategic partnership with the foreign companies is illustrative of the governance that has been implemented over the course of the last eight months integrating economic and social dimensions to government undertakings for the direct benefit of the Gabonese people and take into account the environmental impacts to ensure sustainable development.

The President’s approach and the government’s adapted economic model based on transparency and evaluation of the direct and indirect impact of each project is finding support from the international investment quarters and the projects with the two Asian economic giants is a recognition of Gabon, its stability, credibility, and Gabon’s policies as part of African continent’s positioning as a significant pole of international growth.

President Ali Bongo Ondimba, reflected of the work ahead: “For almost a year now, my government has carried out important reform policies. But the implementation needs time, because like the construction of a house, it is important first to build the foundation. This is work, which is not visible, but essential… Soon we will see the results”.

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U.S. to Seize Money Stolen From Africans

The United States will not provide a safe haven for money stolen from Africa by any corrupt leaders, US President Barack Obama declared.

Addressing at least 23 African leaders attending the African Union Summit in Munyonyo, Obama's Secretary General Eric Holder said Washington would seize money stolen by corrupt leaders and hidden in American and Western banks.

In a wide-ranging speech, Mr. Holder delivered a stinger on the touchy issue of corruption. The Kleptocracy recovery effort, he said, would target large-scale corruption perpetrated by foreign nationals. "I have assembled a team of prosecutors [to deal exclusively with this,]" he said adding that the US was also willing to support the development of African judiciaries to deal with the monster of corruption.

International cooperation over money leaving national treasuries and entering tax havens and western banks - has long been a sticking issue. The United Nations in 2005 pioneered the Convention Against Corruption - that sought to cast a wider net against criminality across borders. Many African leaders have long been accused of personal extravagance at the expense of their populations- whose excesses like that of former Congolese leader- Mobutu Sese Seko have become legend. Governments in Africa- including Uganda, which lose close to Shs500 billion million in corruption each year, have also been accused of cosmetic attempts at fighting the vice.

For countries like Nigeria however, authorities worked with Switzerland to recover money stolen by Gen. Sani Abacha. He was accused of stealing $4.5 billion from Nigeria’s government coffers.

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Nigeria Sacks Director-General of Stock Exchange

Nigeria's Securities and Exchange Commission (SEC) has fired the director-general of the Nigerian Stock Exchange, Ndi Okereke-Onyuike, and suspended its chairman.

The move is being seen as an effort to restore investor confidence following growing fears over governance issues.

The action was taken by SEC head Arunma Oteh who took office at the beginning of 2010 promising tougher regulation.

The SEC has named ex-Deloitte executive Emmanuel Ikazoboh as its new chief. The former chief executive of Deloitte in West and Central Africa will now be responsible for managing sub-Saharan Africa's second-biggest stock exchange for a caretaker period.

The SEC sacked Ms Okereke-Onyuike and suspended the stock exchange's president, Nigerian businessman Aliko Dangote. Brokers arriving for work were met by armed police who were there to ensure there was no challenge to the SEC directive.

"This strong move by the SEC to get a grip of the situation and try to resolve the leadership crisis can only improve investor confidence, especially if the proposed interim administrator organizes elections in a timely manner," said Kayode Akindele, a director at financial advisory firm Greengate Strategic Partners.

Last month financial regulator Arunma Oteh said she would bring 260 organizations and individuals to a special tribunal over alleged abuses in the country's stock markets. Nigeria's banking crisis last year exposed widespread abuses in the capital markets.

As Nigeria's banks came close to collapse, it became clear that lax regulation and inadequate surveillance of stockbrokers was a major problem.

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African Economies Rebound from Global Crisis

The African Development Bank says the continent is rebounding from the global financial crisis, with 80 percent of African economies expected to grow this year.

At its annual general meeting in Ivory Coast this week, African Development Bank officials say real gross domestic product on the continent is expected to reach 4.5 percent this year, well above the global average.

That growth could top five percent by 2011, putting African economies back on a 10-year track that was disrupted by last year's global economic crisis.

However, the recovery will be uneven.  Southern Africa was hardest hit and will take longer to rebound.  East Africa best weathered the global financial crisis and will likely achieve the highest average growth, in the next year.

Foreign donors have widely praised African Development Bank efforts to soften the impact of the financial crisis by more than doubling concessionary lending. That has led donors to triple its capital base to $100 billion.

Bank President Donald Kaberuka says the extra money will go to infrastructure and power.

"It's timely. It's a vote of confidence in Africa," Kaberuka said. "I think it will give us enough firepower for now to provide the kind of response that we need to meet some of these structural concerns which are mainly, again, around infrastructure."

New power projects include a wind farm in northern Kenya, several hydroelectric programs and coal and gas-powered plants. Per capita power consumption in Africa remains about 400 kilowatts an hour. In developed countries, it averages 14,000 kilowatts an hour.

"There's no way this continent can grow, living on energy less than Spain," Kaberuka said.

The African Development Bank kept its summit in Abidjan, despite political tensions surrounding Ivory Coast's much-delayed presidential vote.  Bank governor Antoine Bohoun Bouabre says security is a priority, as bank headquarters remain in Ivory Coast.

Bouabre says, now that security has been restored, the bank and Africa have entrusted Ivory Coast to keep its headquarters here.  He says it is a responsibility that is the government's duty to fulfill.

African Development Bank officials say stability in the financial sector has been key to weathering the global economic crisis. They point to Nigeria's Central Bank buying-up non-performing loans at 10 failing banks then establishing an asset management corporation to help recapitalize those banks so they will be able to repay part of the bailout.

The bank says African governments can promote growth by adopting sustainable fiscal policies that increase tax revenue by encouraging investment.  It says broader use of a new generation of information and communication technology can overcome long-standing infrastructure weaknesses and reduce the cost of doing business.