Thursday, April 8, 2010

From Creamer Media in Johannesburg, I'm Amy Witherden.

Making headlines:

The South African government indicated yesterday that the proposed $3,75-billion World Bank loan for Eskom is a component of a larger $6-billion "funding window" with the bank, and that an additional $1,25-billion could flow to the State-owned power utility specifically for emission-reduction projects. This funding would be over and above the initial Eskom package, which is due to be voted upon in Washington DC today.
Leading up to the vote, it is far from clear whether some governments, including the US and the UK, will vote in favour of the Eskom loan, owing to the fact that the bulk of the proceeds will flow to the 4 800-MW Medupi coal-fired power project. World Bank President Robert Zoellick defended the loan package in a letter to a group of US lawmakers who raised questions about the bank's support for the coal project. US leaders have reportedly sought assurances from the bank that Eskom will extend electricity to the poor; that the use of renewable energy will be increased; and that Eskom will retrofit its facilities with additional environmental safeguards.
The South African National Treasury also said that government is "mindful" of concerns raised by opposition parties about the fact that some of the proceeds of the loan could flow directly into the coffers of the governing African National Congress (ANC), owing to the ANC's Chancellor House owning a share in Hitachi Africa, which is supplying Medupi with boilers.

The International Finance Corporation (IFC) will invest $100-million in the second Africa Infrastructure Investment Fund, which is aimed at promoting the development of basic infrastructure on the African continent.
The fund would take "significant" stakes in a range of infrastructure projects including toll roads, wind farms, other renewable energy projects, ports, water and sewerage utilities, and social infrastructure.
The IFC, which is a member of the World Bank, says that it is helping to develop assets, such as a reliable power supply and road networks, which are essential for economic growth and sustainability in Africa.

Not only do the recent local taxi and labour strikes, high-profile murders and "ill-conceived utterances" from political figures risk potentially deterring visitors from attending the 2010 FIFA World Cup, but this also does not bode well for investor perception, said the South African Chamber of Commerce and Industry yesterday.

The chamber notes that its policy radar has remained "tentative" on the majority of focus areas over the past six months. However, the ease of doing business is expected to improve in the coming months when the King Code of Corporate Governance III and the new Companies Act are implemented.

Also making headlines:

World Bank lending to developing nations hits a record $100-billion owing to the global economic crisis.
The European Union recalls Darfur elections observers over safety fears.
Human Settlements Minister Tokyo Sexwale says that government is suing over the poor construction of housing.
And, the United Nations needs an extra $133-million to tackle food shortages and malnutrition in Niger.

That's a roundup of news making headlines today.