TUESDAY, 1.30PM:
THE Southern African Development Community, currently chaired by South Africa, has asked the international community to write off the debt of its member states. The debt burden is retarding the SADC programme of regional integration.
At a debate on the debt crisis in Sweden, SADC executive secretary Kaire Mbuende said as SADC debt is in the hands of government-owned banks, rather than private banks, there is no reason why it should not be written off. The debt problem has the effect of diverting funds from development, he said.
Mbuende said the SADC is changing its debt crisis strategy after finding that approaching creditor governments individually had borne little fruit. A discussion paper from the SADC is expected before a September heads-of-state summit.
SADC data show that in 1996 — indicated as a percentage of gross domestic product — Angola’s external debt was 171% (1995: 191%), Lesotho’s 61% (58%), Malawi’s 100% (155%), Mozambique’s 427,5%, Tanzania’s 241,9%, Zimbabwe’s 69% and Zambia’s 194,6%.
BUSINESS BRIEFS
PRIVATE PHONE COMPANY IN ZAMBIA
THE first privately owned telecoms company in Zambia, Zynex Telekom Limited, has been established after liberalisation of the industry. Zynex obtained a licence to begin operating pay phones in 1996, but operations have been delayed by finance and technical problems. Zynex will use technology from a South African company that began installation in November, and tests are under way. Lines are leased from the state-owned Zambia Telecoms Company.
$480m FOR MOZAMBIQUE
THE World Bank will loan Mozambique $480-million to develop private businesses and human resources over the next three years. The loans were approved due to the rapid growth of the country’s economy and infrastructure. The loans are also intended to support agriculture, education and industry. $36-million has already gone towards improving rural water supply — 544 people have died of cholera since last August. World Bank loans to Mozambique number 30 and total $1,6-billion.
COSATU BACKS NUM STRIKE
THE Congress of South African Trade Unions (Cosatu) has given its backing to the National Union of Mineworkers’ planned strike over job cuts in the gold mining industry. After NUM talks with employers broke down on Friday, the NUM is expected to give 14 days’ notice of rolling strike action. Cosatu has not ruled out sympathy strikes in support of the NUM.
LTA, GRINAKER BEAT CONSTRUCTION BLUES
CONSTRUCTION groups LTA and Grinaker have raised earnings more than 20%, despite an unremarkable season for the construction industry in the reporting period to December. LTA was helped by its increasing international exposure, raising net earnings to R60,7-million. Grinacon attributes its 30% increase in earnings to R20,1-million to improved operating margins.
AFLIFE WILL NOT RAISE OFFER
AFRICAN Life says it will not raise its one-for-four share-swap offer to buy control of Norwich Holdings. Aflife began its hostile takeover attempt on Monday. Norwich shares closed at R10,35, which is above the R10 a share offer implied by Aflife’s bid. Aflife says it offers Norwich shareholders a chance to benefit from its own strong growth history. Aflife sells basic life insurance to a relatively poor section of the market, hoping to sell them more sophisticated products as their means increase.
PARMALAT TO BUY TOWERKOP
PARMALAT Finanziaria, the world’s largest diary company, has agreed to purchase Towerkop Dairy for about $40-million. Towerkop is South Africa’s fifth-largest dairy company, with operations in the Eastern Cape.
KLUEVER INQUIRY BEGINS MARCH
PUBLIC Protector Selby Baqwa says a formal inquiry will begin next month into allegations by Mineral and Energy Affairs Minister Penuell Maduna that Auditor-General Henri Kluever covered up a R170-million loss by the Strategic Fuel Fund over 1992-93. Baqwa says he has gathered the necessary information and assembled a panel of auditors to begin work on March 2.