October 24 2012
From Creamer Media in Johannesburg, I’m Gia Costella.
Making headlines:

A United Nations report reveals that South Africa’s Foreign Direct Investment plummeted in the first half of 2012.

Guinea’s ethnic divide defies 'West Africa's Mandela.'

And, Germany's Foreign Minister Guido Westerwelle says Europe must help Mali against Islamist rebels.

A United Nations report says that foreign direct investment (or FDI) flows to South Africa tumbled by 43.6% in the first half of 2012 compared to the same period last year. As a whole, however, the FDI to the continent rose by 5%.

According to the UN's Global Investment Trends Monitor the decline in FDI to Africa's biggest economy came amid an 8% drop in global FDI inflows due to heightened global economic uncertainty.

As South Africa battles the worst labour unrest since the end of apartheid, the numbers suggest it will face increased competition for investment from its faster-growing neighbours.

The report said that FDI inflows to South Africa fell to $1.7-billion in the first six months of 2012 from $3-billion in the first half of 2011. This reflects a sluggish domestic economic growth as well as a slowdown in developed economies.

Two years ago, Guinea's first freely-elected president Alpha Conde promised to unite "every son" of his nation. Today, however, the man with ambitions to become West Africa's Nelson Mandela is struggling to halt a wave of ethnic unrest.

Tribal violence in the world's biggest bauxite exporter is threatening to delay parliamentary elections, scare off foreign investors and deepen strains in neighbouring countries across Africa's fragile "coup belt".

Security crackdowns, including the use of tear gas in the home of an opposition leader in August, have drawn criticism from the United Nations and human rights groups.

Investors also have cold feet over billions of dollars worth of resource projects as a result of the political tensions, a mining contract review, and falling iron and aluminum prices.

Germany's Foreign Minister Guido Westerwelle said that Europe must help restore security in Mali, which has been hit by an Islamist insurgency in its north. He said that Germany could lend support through military training to an African-led mission.

Westerwelle said he was extremely worried about the situation. This follows talks in Berlin with the UN's envoy to the Sahel, Romano Prodi.

He noted that from the north of Mali only one international border is crossed to reach the Mediterranean and that, if the north collapses and terrorist training camps spring up, this will create a haven for global terrorism. This would not only endanger Mali and North Africa – it would also threaten Europe.

Also making headlines:

A second Sudanese rebel group rebel group joins the peace talks with Sudan.

Industrial Development Corporation senior account manager Piet Badenhorst says wind energy localisation targets are achievable.

And, Eskom outlines its R149-billion transmission expansion plan to 2022.

That’s a roundup of news making headlines today.