MONDAY, 5.00PM:
PRESIDENT Nelson Mandela on Monday said that investment needs of Africa’s vast telecommunications and information technologies markets cannot be met by the public sector alone, but require the input of the private sector.
Speaking at the opening of Africa’s largest telecommunications exhibition and conference, Africa Telecom 98, Mandela said a partnership between the private and public sectors is vital in order to meet the “most pressing challenge facing Africa in this sector, namely limited finance for investment ininfrastructure”.
“Such partnerships will promote a climate for sustainable investment in infrastructure that guarantees good returns and at the same time helps close the information gap,” he said. He also pointed out that Africa has a huge untapped market for telecommunications and information technologies, and like other emerging markets, offers vast investment opportunities.
Mandela further outlined his vision for the development of a co-ordinated body, like a dedicated African Telecommunications Development Fund that will “finance the infrastructural projects needed to extend telephony to every village in Africa, and will certainly put the continent on the map of the global information society”.
BUSINESS BRIEFS
‘CANCEL SA’S DEBT’
A JOINT report by pressure groups the World Development Movement and Action for Southern Africa has urged American and European banks to write off almost $45-billion worth of debt accrued by the former apartheid government. The report, entitled Paying for Apartheid Twice, advocates cancellation of South Africa’s $18-billion apartheid debt, as well as that of South Africa’s neighbours, which amassed debts of around $27-billion in fighting apartheid. “If South Africa’s debts are canceled, it will send a message to banks who consider funding oppressive regimes that odious debts don’t pay,” the report says. The two organisations urge Britain to use its chairmanship of this month’s summit of the world’s eight richest nations to argue for the cancellation of Southern Africa’s debts.
IVORY COAST TO PRIVATISE COTTON
SOME 15 countries are expected to put in bids for six of the Ivory Coast’s 10 cotton mills in the country’s privatisation programme. The deadline for would-be buyers is Monday. The cotton ginneries are currently owned by the Ivorian Textile Development Company (CIDT), a body that controls the entire sector, which the World Bank has insisted be privatised.
SADC TO IMPORT MAIZE
SOUTHERN African Development Community countries will need to import more than 2-million tons of maize this year. According to the latest monthly issue of the regional food security update, the 2-million tons will cover an estimated deficit of between 2,18-million and 3,08-million tons of the staple food. The maize forecasts show a lower performance compared to last year’s 17,05-million tons in total output. Only Mozambique and South Africa are projected to have a maize surplus, while production is forecast to increase in Angola, Malawi, Mozambique, Swaziland and Zambia, where rainfall was normal to above normal.
PG BUYS MORE
BELRON International, the offshore arm of automotive glass company PG Group, has bought businesses worth R71,1-million in Spain and New Zealand that add 38 glass replacement stores to its global network of 1655 stores. Belron now services 16 countries, which constitute 68% of the world car population.
ANGLOGOLD TO LIST DEPOSITORY RECEIPTS
GOLD producer Anglogold is planning to list American Depository Receipts rather than ordinary shares on the New York Stock Exchange, Anglogold spokesman James Duncan said at the weekend. The firm said the listing on the NYSE’s main board could be approved as early as July.
90,8% OF MAIL ON TIME
SOME 90,8% of all domestic mail passing through the Post Office arrives at its destination on time, a recent independent report has indicated. The soon-to-be-released report shows that an increase in delivery times has raised the the amount of mail delivered on time, from 86% in the last quarter of last year, to over 90% in the first quarter of 1998. Only two years ago the figure was estimated at a mere 29%. KwaZulu-Natal has the best record of postal delivery, delivering 98,4% of mail on time within towns, and 97,5% between towns. The Witwatersrand region, however, delivers only 82,5% and 90,9% of mail on time within towns and between towns respectively.
JOHNSON TILE GETS R30M
JOHNSON Tiles South Africa has secured a R30-million investment from its British holding company Norcros, Johnson Tiles’ managing director Johann Smidt said at the weekend. The capital will be used to finance its floor tile plant, which will form the first phase of a capital investment programme, Smidt said.
LIQUOR BODY DECRIES SUPERMARKET SALES
THE South African Liquor Store Association that represents retail liquor store owners and shebeen owners, has rejected a statement made by its executive director that suggests that bottle stores and shebeens will not suffer if supermarkets are permitted to sell all kinds of liquor. On the contrary, the Gauteng and Free State branches have released statements saying the proposal is a “source of great concern” to them, and will destroy jobs as well as putting countless stores and shebeens out of business. Salsa’s national chairman Chris Mhlongo said the association will never support the sale of beer in supermarkets.
HOSKEN GAMBLES ON AIE
UNION-owned information technology group Hosken Consolidated Investments has bought one million shares in American-based gambling and gaming firm Atlantic International Entertainment. It has also subscribed for 255 of the firm’s South African subsidiary, AIE (South Africa).
NAM REISSUES BONDS
THE Namibian stock exchange will suspend trade in all 11 established government bonds on Tuesday in order to relaunch its bond maturities to ensure greater liquidity. The government will buy back all outstanding bonds, before reissuing them in four, seven and 10-year maturities around May 13. The government hopes the move will also increase investor interest in the new maturities.