South Africa

CAPE TOWN – The South African government has the capacity to revive the economic situation of many African countries, African National Congress (ANC) Youth League leader Julius Malema says. South Africa should be investing on the continent like China and other foreign countries, he says, on the ANC Youth League's programme of action for economic freedom. Resolving the economic crisis on the continent will put a stop to the influx of foreign nationals to South Africa, he says. "Who said we can't be like China, the United States and the EU [European Union] . . . South Africa has the economic capacity to take care of its people and also those coming from outside," adds Malema. The reason people are leaving their countries for South Africa is a sign of confidence from the continent, he says. State institutions like South African Airways, Eskom, Telkom, Denel and the SABC need to venture into economically weak countries, not to colonise them, but to help them build their internal economic capacity. "Throughout all of that we'll also make some money through foreign investments. Remember, this is not a programme of charity but an economic programme," he says. Malema says this goal was almost reached under the leadership of former president Thabo Mbeki, who was ousted ahead of the 2009 general elections. "We were almost there under president Thabo Mbeki, who had a very clear economic vision for Africa . . . . We don't have to do away with that programme. Government should intensify investing in other countries," he adds.

PIETERMARITZBURG – The wife of South Africa's State security minister is convicted of drug running, an embarrassing blow to the ruling African National Congress (ANC) ahead of elections this month. A court in Pietermaritzburg found Sheryl Cwele, wife of Minister Siyabonga Cwele, guilty of dealing drugs and enlisting drug mules, who would travel abroad and bring back cocaine. Opposition politicians have called for the minister's resignation, saying if Cwele was unaware of his wife’s illicit activity, he should not serve as the person responsible for security and gathering intelligence. The conviction comes weeks after the country launched an investigation into another minister, who is suspected of the misuse of State funds, including having taxpayers pick up the tab for an expensive trip for his visit a girlfriend jailed in Switzerland. The ruling ANC, which has had a stranglehold on politics since it took over when apartheid ended 17 years ago, is expected to roll to victory in the May 18 vote; but the scandals could cost it control of urban areas and undermine President Jacob Zuma as ANC rivals look to unseat him.

CAPE TOWN – Western Cape Premier Helen Zille has released a new Ministerial handbook in an effort to reduce excessive spending by provincial MECs. In a statement, Zille says that the handbook has been developed in line with the “no frills” ethos of the Western Cape government and that all provincial MECs will be bound by the tighter rules and regulations. “Last year, we passed the Business Interests of Employees Act to prevent all government employees and their families from doing business with the State. We have also strengthened our Forensic Investigation Unit to ensure that cases of corruption in provincial departments can be better detected, investigated and prosecuted. “The Western Cape Ministerial Handbook is our latest initiative.” She says that the handbook was developed after numerous media stories on excessive spending by national Ministers on lengthy stays at five-star hotels, buying expensive vehicles and the hosting of lavish parties.

Africa & the world

HARARE – Zimbabwe's cash-strapped government will not pay any money for stakes in mining companies forced to sell majority holdings under new local ownership laws, the Minister overseeing the drive says. Instead, Harare will base any payment negotiations on the State's ownership of the Southern African country's untapped mineral wealth, Youth and Indigenisation Minister Saviour Kasukuwere says. Zimbabwe is home to the world's second-biggest platinum reserves. "It's not just about capital. There are substantive discussions that must be held," he says on the sidelines of a World Economic Forum event in Cape Town. "The State has a stake in any mining entity in the country in any case because the resource belongs to the State. That has to be taken into account." Kasukuwere's comments are the latest twist in a convoluted push to spread Zimbabwe's mineral wealth among local blacks and are likely to alarm mining companies, which have until the end of September to transfer 51% stakes. Although individuals are able to buy holdings, Kasukuwere said in March the government was setting up a sovereign wealth fund as a takeover vehicle, effectively turning the local-ownership drive into nationalisation. Analysts said at the time Harare appeared to be using the threats to force global mining groups into paying more in mineral royalties. However, the March publication of laws demanding ownership transfer within six months raised the stakes and hit the shares of platinum miners such as Impala Platinum, the world's second-biggest producer of the precious metal.

TRIPOLI – North Africa's growth forecast for 2011 tumbles to less than 1% from 4,5% achieved in 2010, dragged down by ongoing violence in Libya, the president of the African Development Bank says. A surge of prodemocracy revolts across North Africa has hurt economies, including Africa's second largest, Egypt, just as the world's poorest continent sought to build on frothy forecasts amid a global economic downturn. "For this year the figure for the whole of the North Africa region is no more than 1%, probably 0,7, because the big weight that is negative is Libya. Last year (actual) growth was 4,5," Donald Kaberuka says on the sidelines of the World Economic Forum for Africa. He says that Tunisia, where a popular uprising forced the President out after decades in power and inspired revolts elsewhere in the Arab world, is expected to grow by 1% to 1,5% this year, in line with World Bank projections. The AfDB and World Bank have committed to provide Tunisia with urgent budget support totalling $1-billion, and Kaberuka says ongoing discussions with Egyptian authorities for similar aid will depend on whether programmes met the people's needs. "It is not simply about the money, it is about the kind of programmes we are prepared to support, because these changes in North Africa are a reflection of the aspirations of the people for change, for direction, for opportunities," he adds. Kaberuka says that he hopes that the bank and Egypt can agree on a figure and form of support within the next few months. In April, the AfDB's chief economist Mthuli Ncube said the bank had cut the continent's growth forecast to 5% mainly due to the North Africa turmoil.

NAIROBI – Kenya has hailed the death of Osama bin Laden as an act of justice, but says that more must be done to bring stability to neighbouring Somalia, where al Qaeda-linked fighters are waging an insurgency. Al Qaeda first struck East Africa in 1998, killing hundreds of people, mostly Africans, in suicide bombings of US embassies in Kenya and Tanzania. In Somalia, a lack of a strong government for two decades has made the nation a haven for foreign jihadists bent on striking at the region. “Kenyans are happy and thank the US people, the Pakistani people and everyone else who managed to kill Osama,” Kenyan Prime Minister Raila Odinga says after US forces killed bin Laden in Pakistan. Many Kenyans still live with physical and mental scars from al Qaeda’s 1998 attack, Odinga says.

KHARTOUM – The Sudanese have voted in delayed elections in the north’s main oil state, a poll that analysts fear could provoke violence in the countdown to the secession of the country’s south in July. The governorship vote in Southern Kordofan has also grabbed world attention because the candidate for the north’s ruling party is Ahmed Haroun, a man wanted by the International Criminal Court regarding charges of war crimes in Darfur. People from Sudan’s oil-producing south overwhelmingly voted to declare independence in a January referendum promised in a 2005 peace deal that ended decades of civil war with the north. Southern Kordofan will remain in the north after the split. But many of its population, particularly in the Nuba Mountains area, fought alongside southern rebels during the civil war and fear they will be targeted in the new, separate north Sudan. The south’s dominant party, the Sudan People’s Liberation Movement, has already accused the north’s ruling National Congress Party of using militias to intimidate voters.

GENEVA – Switzerland has found 360-million Swiss francs of potentially illegal assets linked to Libyan leader Muammar Gaddafi and his circle stashed in the Alpine country, the Foreign Ministry says. Some 410-million Swiss francs traced to former Egyptian President Hosni Mubarak and 60-million Swiss francs linked to former Tunisian President Zine al-Abidine Ben Ali have also been identified, Foreign Ministry spokesperson Lars Knuchel says. “In the case of Libya, it was 360-million Swiss francs,” Knuchel says. “These amounts are frozen in Switzerland following blocking orders by the Swiss government related to potentially illegal assets in Switzerland.” Both Tunisia and Egypt – where unrest led to the ousting of Ben Ali and Mubarak – are in touch with Swiss judicial authorities regarding their formal requests for legal assistance to seek return of the funds and property, according to Knuchel. No such discussions are underway with authorities in Libya, where Gaddafi is clinging to power in the face of an uprising and North Atlantic Treaty Organisation air strikes. Neutral Switzerland has previously announced that it was freezing any assets linked to the three North African leaders, thereby requiring financial and other institutions to report any suspicious funds. The respective amounts are fairly ‘stable’, based on information provided by Swiss-based financial institutions to authorities, Knuchel says. He declines to name the banks or the cantons (States) in which the accounts or properties are held.