Tuesday, June 29, 2010

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

Making headlines:

Failure to deal with Europe's debt crisis could depress sub-Saharan Africa's export earnings and financial flows, undermining the region's recovery from the financial crisis, according to the International Monetary Fund (IMF).
First sparked by Greece, concerns about the fiscal health of the euro zone has spread this year, undercutting the euro and causing falls in markets around the world. IMF Africa Department Director Antoinette Sayeh says that this could negatively impact on sub-Saharan Africa, as export volumes, the price of exports, remittances and financial flows could decline in the event of a deterioration in Europe's debt crisis.
The IMF is maintaining its 5% growth forecast for sub-Saharan Africa in 2010 based on its assessment of the region's performance in the first half of the year. However, Sayeh warned that some African countries need to be prepared to absorb any potential shocks that may result from a possible severe downturn in the European economy. "Europe is a key export market and also a source of official financial assistance and financial inflows, so there is clearly a risk from what could be a difficult situation," she said.

Democratic Republic of Congo President Joseph Kabila wants to use Wednesday's independence celebration to buff up Congo's troubled image, but armed rebellions, widespread corruption and concerns over rights abuses are dampening the party mood. United Nations (UN) secretary-general Ban Ki-moon and Belgian King Albert II will attend fiftieth anniversary celebrations.
Congo is awaiting confirmation within days of an International Monetary Fund-backed plan to cancel up to $8-billion of debt, while UN peacekeepers started this month to wind down their presence after pressure from Kabila.
In Congo's half-century of independence, it has been a Cold War playground, witnessed assassinations of leaders, suffered a looting of public coffers by President Mobutu Sese Seko and a 1998 to 2003 war in which five-million Congolese died. The death of human rights activist Floribert Chebeya this month prompted a murder inquiry and triggered international alarm.
Former interior minister Denis Kalume Numbi says that the DRC is a young democracy and it has its problems. "We want a renaissance. We need to use this time for reflection on where we are going in the next 50 years," he said.

South Africa will only directly recoup a fraction of the billions of rand spent on staging the 2010 FIFA World Cup but should reap long-term economic benefits through the rebranding of a nation noted for violent crime.
South African businesses have reported booming trade, including increased hotel bookings, car rentals and sales of 2010 FIFA World Cup memorabilia since the start of the soccer spectacular on June 11. Visa Inc says that spending by foreigners using its credit cards has topped $128-million, up 54% compared with the same period last year.
But analysts estimate that foreign spending will only inject R13-billion into the local economy, far short of the roughly R40-billion that the government has spent on new stadia and upgrading roads and airports. Econometrix analyst Tony Twine says that short-term economic benefits will be minor, but in the longer term, the country should see definite assistance to economic growth simply because of the global market exposure that the South African economy is enjoying at the moment.
Also making headlines:

South Africans want the proactive policing that has led to lower crime rates during the 2010 FIFA World Cup to continue when the world is no longer watching.
Sudan is closing borders with Libya to protect travellers and traders from attacks by Darfur insurgents who have taken refuge in Tripoli.
South Africa's Department of Water Affairs offers Hartebeespoort water assurances as the Environment and Conservation Association lobby group prepares to sue for failure to protect water resources.
And, a peaceful poll in Guinea adds to widespread scepticism in neighbouring Côte d'Ivoire about whether its leaders are really committed to holding an election that has already been delayed for five years.

That's a roundup of news making headlines today.