Thursday August 5, 2010

From Creamer Media in Johannesburg, I'm Brad Dubbelman

Making headlines:

A Sunday Times journalist arrested for fraud and defeating the ends of justice is "likely" to appear in court on Friday, the Hawks said on Thursday. Hawks spokesperson Musa Zondi said that the journalist would appear in Kabokweni District Court in Mpumalanga province on Friday but two others who were arrested in Nelspruit on the same case would appear on Thursday. Sunday Times editor Ray Hartley had identified the journalist as Mzilikazi wa Afrika. "He was arrested by a large number of policemen in an operation which was clearly designed to intimidate and I can only conclude that this was the true motive for what took place on Wednesday," said Hartley. Hartley said that Wa Afrika was one of the journalists who worked on an article that alleged police commissioner general Bheki Cele had leased new police headquarters for R500-million without following normal tender processes.

The private-sector lending arm of the World Bank is leading large government-owned wealth and State pension groups into frontier markets in Africa and elsewhere, where few big investors have sought to venture. The hope is that by investing money on behalf of these deep-pocketed funds in regions they would normally shun as too volatile, they will learn to appreciate the long-term profit potential. Over the past few months, the International Finance Corporation's Asset Management Company has made investments using capital from the Korea Investment Corporation, Azerbaijan's State oil fund, Dutch pension fund manager PGGM, and an unnamed fund investor in Saudi Arabia. While the investors do not have a say in where the money is invested, the initial choices appear to be conservative, focusing on segments likely to be in hot demand."The investments we have made so far show there is a strong pipeline out there," Gavin Wilson, AMC CE, said in a recent interview. World Bank President Robert Zoellick first pitched the idea of using money from powerful sovereign wealth funds of Asia and the Middle East in 2008, challenging them to invest 1% of their assets in Africa.

South African officials and public sector unions failed on Wednesday to reach a wage deal to head off a strike by nearly one-million civil servants that could cripple commerce in the continent's largest economy. The government and unions decided to adjourn talks a few hours ahead of the deadline set by the Public Services Minister with neither side budging from their positions, union officials said. They expect to meet again on Thursday. The bulk of the unions have threatened to strike next week, but analysts believe that a deal will be reached to avert a mass labour action that could be the biggest civil servants' strike since a work stoppage three years ago that rocked the economy. The unions want a raise of 8,6 %, more than double the inflation rate, and a housing allowance of R1 000 a month. The government has offered a 6,5% wage increase and a monthly housing allowance of R630.

Also making headlines:

Kenyans voted in favour of a new constitution in a peaceful referendum that could reshape the political landscape of East Africa's largest economy, according to partial results published on Thursday.
South Africa's commercial farmers are helping develop the country's rural areas and should not be made part of the problem, says Deputy Agriculture Minister Pieter Mulder.
Foreign-based dissidents trying to damage Rwanda's reputation may be behind recent killings of opposition and media figures that sparked worldwide criticism, its Foreign Minister says.
And, Cote d'Ivoire should be able to hold long-overdue Presidential elections in October, the electoral commission says.