EU Commits D450M to Gambia’s Development

(Daily Observer)--The European Union (EU) will this year start the implementation of a 10 million euro (D450 million) development programme in The Gambia, its new ambassador to The Gambia has disclosed.

Her Excellency Dominique Dellicour, who will be based in Dakar, was speaking to the State House press corps Thursday afternoon shortly after presenting her letters of credence to the president- elect, His Excellency Sheikh Professor Alhaji Dr Yahya Jammeh .

Ambassador Dellicour who was accompanied to the presidency by the new EU charge d’affaires to The Gambia explains: “This year we will start implementation of a Euro 10 million equivalent to D450 million, a programme for supporting the government of The Gambia in strengthening the independence of the Judiciary and also improved access to justice for ordinary citizens and the knowledge of their rights; and also a programme in the media sector to implement the constitutional provisions regarding the freedom of the press but also the professionalisation of the press to permit that the press plays an important role in promoting information and communication on important public policy issues.”

Ambassador Dellicour also told journalists that another good news is that the European Commission/Union is about to take positive decision for The Gambia which she said is funding the Millennium Development Goals (MDGs). While further disclosing that there will be additional money that will come from the EU to fund progress to accelerate reaching the country’s MDGs, Dellicour further disclosed that one of the domains that they have chosen in this regard is food security.

This, she said, is due to the fact that there is a lot of progress to be made and achievements to meet, while underscoring that another programme in the field of climate change and management of territories and coastal regions and coastal erosions will form part of their interventions.

She added: “We have also very important programme on economic governance to try to improve the public finance management, the transparency in the budget process; more accountability of the government in terms of planning and implementation of the budget; and so that is very important aspect of our cooperation.”

The EU diplomat said her closed-door discussion with the Gambian leader also touched on the regional funds, underscoring that they discussed the proposal to fund under the regional programme the bridge over The Gambian River. That project, she underpinned will be very important to the regional integration process, thus allowing the circulation of goods in the region to be freer.

Touching on the relations between The Gambia and the EU, Ambassador Dellicour underscored that it has been fruitful in that they have one of the biggest cooperation programmes in The Gambia.

She pointed out that today if one looks at their portfolio programmes in the country, they have already committed to The Gambia almost D3 billion for cooperation in very critical domains of economic development. She cited the infrastructure sector as one such domain of their intervention in which they are doing a lot to promote the development of the road system – the main Trans-Gambia Road amongst others, as well as rural roads that link agricultural areas to export their goods and import what is necessary for better food security.

Dellicour stressed that what is also important is the fact that they discussed with the president -elect political dialogue in addition to the existing cooperations they have on issues not only on development but also the essential elements of the Cotonou Agreement.

The essential elements of Cotonou Agreement she explained, includes the consolidation of democracy, the rule of law and human rights, and the civic society empowerment with a view to allowing them be an actor in the discussion of development policies of the country.

2012 Draft Budget is D5.77BN

(Daily Observer)--The total revenue and grants of The Gambia government budget for the fiscal year 01st January to 31st December 2012 is projected at D5.77 billion. This was disclosed by the minister of Finance and Economic Affairs, Mambury Njie before deputies at the National Assembly yesterday.

This is in accordance with Section 152 (1) of the 1997 Constitution of The Gambia for the president to instruct the Finance minister to submit to the National Assembly, at least 30 days before the end of each financial year, the estimates of revenues and expenditures of The Gambia for the following year.  According to the Finance minister, the revenue is expected to increase in nominal terms to D4.61 billion in 2012 on account of increased receipts from non-tax revenue.

Net-lending projection
Minister Njie added that the total expenditure and net-lending is expected to increase by about 10% from D61.11 billion in 2011 to D6.72 billion in 2012. The rise in total, according to him, is explained mainly by increases in other current expenditures and anticipated project grants.

Other charges and personnel expenditures
The Finance and Economic affairs minister stated further that the personnel expenditure is projected to increase to D1.73 billion in 2012, representing an increase of 3%, compared to D1.67 billion in 2011. “Other charges are estimated to stand at D2.54 billion in 2012 compared to D2.26 billion in 2011, reflecting a year-on-year growth of 12.6%. The increased provision to accommodate the new subvented institutions in the budget contributed to the increase in other charges expenditures,” said Minister Njie. According to him, the 2012 budget will see an increase in domestic borrowing and settlement of NAWEC arrears and other liabilities.

While seeking approval from lawmakers, the draft budget estimate for the coming year, the Finance and Economic Affairs minister pointed out that the budget will be a useful tool in their drive to accelerate growth and reduce poverty as well as to sustain macroeconomic stability. He said: “On the onset, allow me to state that government is steadfast and determined to continue with the fiscal and structural reforms undertaken during 2011. It will continue to consolidate the macroeconomic gains recorded for the past successive years.”

The Finance and Economic Affairs minister noted that despite the uncertainties in the global economic environment, the Gambia economy remains strong. According to him, the GDP is estimated to grow by 5.5% in 2011 underpinned by healthy performance of the agricultural and telecommunication sectors.

“Inflation continues to be subdued with end-September 2011 inflation standing at 4.1% compared to 6.2% a year earlier. The decline in inflation is explained mainly by food items, accounting for 55% of the weight of the basket of goods and services and inflation is expected to remain within the target of 6% during the year 2011,” he explained.

According to Minister Njie, government fiscal operations during the first three quarters of 2011 yielded an overall deficit (excluding grants) of D889.9 million, 2.8% of GDP, mirroring expenditures of D3.7 billion against a revenue outturn of D2.8 billion during the period under review.

The Majority leader and National Assembly member for Serekunda East, Fabakary Tombong Jatta, who seconded the motion thanked the Finance minister for the draft estimate budget including the development expenditure for the year 2012.
According to him, government’s commitment and determination for effective fiscal and structural reform in the financial sector is unprecedented despite the global financial crisis.

Like the Finance minister, Hon. Jatta also observed that despite the global financial downturn, the Gambia economy remains strong. He finally commended the government for its determination to ensure improved tax policies and tax administration and the idea of widening the tax-base.

Gov’t To Establish Tax Tribunal

(Daily Observer)--The minister of Finance and Economic Affairs has revealed that a tax tribunal will be established while taxpayer education will also be reinforced so as to reverse the current decline in revenue, reducing the deficit to the target that will allow sustainable growth in the economy. Mambury Njie made these revelations on Thursday evening while presenting the 2012 Draft Budget Estimates of Revenue and Expenditure including development expenditure of the government of The Gambia.

He said his Ministry will continue tax reforms, and that such measures will include reducing the maximum tax rate, broaden the tax base, and enhance taxpayers’ compliance.  “Over the last few years, my Ministry made concerted efforts to improve tax policy and administration. However, volatility in revenue performance has been evident which affects both the budget preparation and execution process. In almost all indicators revenue performance signals a downward trend in recent years,” he noted.

He added: “In addition, preparations are on course for the implementation of the VAT while it is envisaged that the VAT would simplify their tax structure and also increase revenue collection.”

Budget Session Starts Dec. 1st

(Daily Observer)--Members of the National Assembly will this Thursday be presented the Draft 2012 Estimates of Revenue and Expenditure including the Development Expenditure of the Government of The Gambia for the fiscal year January 1st to December 31st 2012 (both dates inclusive).

To be submitted by the Minister of Finance and Economic Affairs, Mambury Njie, the session will accord lawmakers the opportunity to proceed and debate on the 2012 Draft Estimates from Monday December 5th to 7th 2011. According to reports from the National Assembly, members of the house shall on Wednesday December 7th, 2011 debate on a Motion on Ecowas Commission's Decision on the 24th November Presidential Polls.

Other reports and bills will also be laid before the National Assembly for consideration, adoption and enactment by the lawmakers during the fourth meeting of the 2011 Legislative Year. “The Auditor General’s Report on the Financial statement of the Government of The Gambia for the year ended 31st December 2007, by the minister of Finance and Economic Affairs; External Auditors Report on the Audited Accounts and Financial Statement of the National Audit Office by the vice chairman of the Public Accounts/Public Enterprises Committees of the National Assembly,” it stated.

Deputies will also look at the Gambia Public Transport Corporation Repeal Bill 2011 and The Gambia Tourism and Hospitality Institute Bill 2011 to be presented by ministers of Works, Construction and Infrastructure Dr Njogu Bah, and Aja Fatou Mass Jobe-Njie, minister of Tourism and Culture respectively. On Friday 16th December 2011, the Finance and Economic Affairs minister shall present the Appropriation Bill, 2012 (Budget Speech) at 5 p.m. highlighting The Gambia government’s development programmes for the coming fiscal year 2012.

GGC Pegs Groundnut Price At D10,250 Per Ton

(Daily Observer)--Following the announcement by the Agribusiness Services & Producers Association (ASPA) of a farm-gate producer price for groundnuts of D9,300 (nine thousand dalasis) per metric ton in the 2011/12 groundnut-marketing season and the setting of the official start date of 5th December 2011.

The Gambia Groundnut Corporation Ltd (GGC) is pleased to inform the farming community, the Cooperative Produce Marketing Societies (CPMS), traders and all other stakeholders that the depot price for this year’s groundnut marketing season is pegged at D10,250 (ten thousand two hundred and fifty dalasi) per metric ton, a press release from the GGC revealed yesterday.

According to the release, due to the nature of the infrastructure in the depots, the minimum tonnage acceptable is being initially set at 5 (five) metric tons. “GGC solicits the cooperation and support of all stakeholders,” the release concluded.

Central Bank Introduces New Payment Systems

(Daily Observer)--In collaboration with the West African Monetary Institute under the West African Monetary Zone Monetary Integration Programme, the Central Bank of The Gambia has embarked on the modernization of the country’s payments, clearing and settlement system infrastructure.

The development is part of a regional payments system initiative and forms an integral part of the prerequisites for effective West African monetary integration. This revelation was made by the governor of The Central Bank, Amadou Colley on Tuesday November 2011 during a briefing of stakeholders at the bank’s board room, to expose them to the new automated cheque processing (ACP/ACH) and the Real Time Gross settlement System (RTGS).

According governor Colley, the initiative is also part of the Central Bank’s strategic vision of modernizing the payments and settlement system into a world class standard, comparable to the rest of the world. The system will lower costs, make payments and settlements more accurate and pave the way for increased financial innovations in the country.

The process spans across different facets and include the establishment of the Real Time Gross Settlement System (RTGS), the Automated Cheque Processing/Automated Clearing House (ACP/ACH), Securities Settlement System (SSS) and an electronic National Switch for retail payments.

The rationale for the projects is justified by the fact that: The Gambia remains a cash based economy, with payments of large value transactions requiring heavy movement of cash and its attendant risks; the continued dependence on cash payments also results to delays in cheque processing and inefficiency; and the cost of printing currency is quite high, thus the substitution of banknotes in favour of plastic cards under the National Switch project seeks to alleviate this problem.

He added that the Central Bank currently operates a manual cheque clearing system, where commercial banks meet to physically exchange cheques and net balances settled through their current accounts held with the Central Bank, which is time consuming and less efficient in detecting cheque frauds; the delay in confirmation of customer balances due to the lack of real time gross settlement systems results to the acceptance of cheques, which would otherwise be rejected outright.

Some of these cheques turn out to be dishonored due to various reasons; and The Gambia has registered significant progress in her socio-economic development, with growth rates of GDP averaging between 5 to 6 percent per annum. These gains will be consolidated through the modernization of the payments system and the creation of a conducive environment for further growth.

 The systems when fully functional, he asserted will help the Bank achieve  among other objectives, eliminate or minimize risks associated with payments, clearing and settlement system, eliminate float size for individual customers and banks as well as significantly reduce the float time for cheque clearance, with the possibility of reducing the clearance time from five days to one day in addition to combating fraud and forgery, pave way for reducing high case intensity and gradual migration to high usage of electronic modes of payment, and bring efficiency to Government receipts and payments and all other consumers and leverage them for financial deepening of the economy.

It will also ensure compliance with international principles and standards, especially the core principles for the Systematically Important Payments Systems (SIPS) of the Bank for International Settlement (BIS) and enhance the Central Bank’s monetary management capabilities.

Cheque Imaging System
Explaining the teachniques behind the projects, the central bank boss noted that in their quest to ensure the realization of Government’s vision 2020, the Central Bank wishes to harness technology to its advantage and the rest of the financial system. He said the applicable technology in the field of finance enables the elimination of heavy dependence on physical movement of cheques for clearing purposes.

It presents the fastest and most secure mode for clearing cheques through digital means and replaces the physical exchange of cheques between the presenting and paying banks. However, the effectiveness of the system depends largely on how users handle cheques.

He further revealed that the Central Bank will soon embark on a sensitization geared towards educating the public on the up-coming projects and the importance of careful handling of cheques.

He also seized the opportunity to inform the general public that under the new system, all cheques payable through our banking system shall be in compliance with specific characteristics, critical among which is the Magnetic Ink Character Recognition (MICR) code.

The MICR represents a unique code which is inscribed on each cheque leaf and forms the basis of electronic processing. Once the cheque passes through a scanner, an image is generated, which passes through the system electronically for timely confirmation of customer balances and the immediate payment of beneficiaries where applicable.

However, the scanner cannot capture images of damaged cheques, which may result to processing failure. Cheques, he emphasized may be damaged through, writing on the MICR code area, folding of cheques in a form which may prevent its passage through the scanning machine, soiling of cheques with oils, paints or other permanent marks, wear and tear of cheques due to poor storage facilities, stapling of cheques, forgeries aimed at defrauding the system among others.

Governor Colley conduced that all banks are adequately equipped with the means for the implementation of the new measures; and solicits the cooperation of the public in ensuring full implementation of the new payments system projects, which will contribute a long way towards the development of our country.

Six Dangerous Moves For First-Time Investors

(Investopedia)--Thanks to online discount brokerages, anyone with an Internet connection and a bank account can be up and trading stocks within a week. This ease of access is great because it encourages more people to explore investing for themselves, rather than depending on mutual funds or money managers. However, there are some common mistakes that first time investors have to be aware of before they try picking stocks like Buffett or shorting like Soros.

Jumping In Head First
The basics of investing are quite simple in theory – buy low and sell high. In practice, however, you have to know what is low and what is high in a market where everything hinges on different readings of a variety of ratios and metrics. What is high to the seller is considered low (enough) to the buyer in any transaction, so you can see how different conclusions can be drawn from the same market information. Because of the relative nature of the market, it is important to study up a bit before jumping in.

At the very least, know the basic metrics such as book value, dividend yield, price-earnings ratio (P/E) and so on, and understand how they are calculated and where their major weaknesses lie. While you are learning, you can see how your conclusions work out by using virtual money in a stock simulator. Most likely, you'll find that the market is much more complex than a few ratios can express, but learning those and testing them on a demo account can help lead you to the next level of study.

Playing Penny Stocks
At first glance, penny stocks seem like a great idea. With as little as $100, you can get a lot more shares in a penny stock than a blue chip that might cost $50 a share. And, if the two blue chip shares you bought went up $1 you'd only make $2, whereas if 100 shares of a $1 stock went up a $1 you would double your money. Unfortunately, what penny stocks offer in position size and potential profitability has to measure against the volatility that they face. Penny stocks can shoot up. It happens all the time - but they can also crash in moments, and are exceptionally vulnerable to manipulation and illiquidity. Getting solid information on penny stocks can also be difficult, making them a poor choice for an investor who is still learning.

Going All In with One Investment
Investing 100% of your capital in a specific market, whether it is the stock market, commodity futures, forex or even bonds is not a good move. Although you may eventually decide to throw diversification to the wind and put all your available capital into these markets once you are familiar with them, it is better to risk a little bit of capital at a time. This way, the lessons learned along the way are less costly, but still valuable.

Leveraging Up
Leveraging your money by using a margin is similar to going all in, but much more damaging. Using leverage magnifies both the gains and the losses on a given investment. Some forms of leverage, such as options, have a limited downside or can be controlled by using specific market orders, as in forex. Learning to control the amount of capital at risk comes with practice, and until an investor learns that control, leverage is best taken in small doses (if at all).

Investing Cash Reserves
Studies have shown that cash put into the market in bulk rather than incrementally has a better overall return, but this doesn't mean you should invest to the point of illiquidity. Investing is a long-term business whether you are a buy-and-hold investor or a trader, and staying in business requires having cash on the sidelines for emergencies and opportunities. Sure, cash on the sidelines doesn't earn any returns, but having all your cash in the market is a risk that even professional investors won't take. If you only have enough cash to invest or have an emergency cash reserve, then you're not in a position financially where investing makes sense.

Chasing News
Trying to guess what will be the next "Apple," a revolutionary produce or a rumor of earth shaking earnings, investing on news is a terrible move for first time investors. The best case scenario is that you get lucky, and then keep doing it until your luck fails. The worst case scenario is that you get stuck jumping in late (or investing on the wrong rumor) time and time again before you give up on investing. Rather than following rumors, the ideal first investments are in companies you understand and have a personal experience dealing with. This connection makes it easier to stomach the time and research that investing demands.

The Bottom LineWhen you are starting to invest, it is best to start small and take the risks with money you are prepared to lose. As you gain confidence and become more adept at evaluating stocks and reading the market sentiment, you can start making bigger investments. None of these investments are bad in and of themselves, but they do tend to be very unforgiving towards rookie mistakes. Leverage, penny stocks, news trading, etc. can all become part of your investing strategy as you learn, should you choose it. The trick is learning to invest in more stable markets before you jump into the wilder areas.

Africa's Mobile Phone Industry 'Booming'

(BBC News Business)--Africa is the fastest-growing mobile market in the world, and is the biggest after Asia, an association of worldwide mobile phone operators has said.

The number of subscribers on the continent has grown almost 20% each year for the past five years, the GSM Association report on Africa says.

It expects there will be more than 735 million subscribers by the end of 2012.

Analysts say bad and expensive landline connections in Africa are responsible for the high mobile phone usage.

Peter Lyons, GSMA's director of spectrum policy for Africa and Middle East, told the BBC that mobile penetration in Africa had reached 649 million subscribers in the fourth quarter of 2011.

Tax cuts

"That is equivalent to a 65% penetration rate. Out of every 100 people, 65 have some form of mobile connectivity," he told the BBC's Focus on Africa programme.

In a report, GSMA says that 96% of subscriptions are pre-paid with voice services currently dominating, although uptake of data services is increasing steadily. 

The Kenyan government's abolition of the 16% general sales tax on mobile handsets in 2009 has resulted in handset purchases increasing by more than 200%, it says.

Kenya is at the forefront of mobile money transfers, with 8.5 million users, the report says.

Nigeria has the highest number of mobile phone subscriptions in Africa - more than 93 million, representing 16% of the continent's total mobile subscriptions, GSMA says.

South Africa, with its more developed infrastructure, has the highest broadband penetration - 6%, followed by Morocco with 2.8%, the report says.

"The mobile industry in Africa is booming and a catalyst for immense growth, but there is scope for far greater development," Mr Lyons said.

He said 36% of people in the 25 largest African mobile markets still had no access to mobile services.

"To take full advantage of its potential, African countries need to allocate more spectrum for the provision of mobile broadband services, as well as introduce tax cuts for the industry," Mr Lyons said.

The report says African countries have allocated far less spectrum to mobile services than Europe, the Americas and Asia, which inhibits connectivity to many people in rural areas.

"Sufficient spectrum should be provided for mobile broadband services through 3G, HSPA [High-Speed Packet Access] and LTE [Long Term Evolution] technologies," it says.

UK Clocks Up Record Trade Deficit In September

(BBC News Business)--The UK recorded its biggest trade deficit to date in September, while an August jump in exports has been revised away, new data shows.

The difference in value between imports and exports of goods and services in September was £9.8bn, according to the Office for National Statistics (ONS), the worst since data began in 1998.
It rose from £8.6bn in August, thanks to a record jump in imports.
But the August data was itself worse than previously reported.
A month ago, the ONS had reported a record rise in monthly goods exports by the UK.
But new data from HM Revenue and Customs, as well a change in the ONS's seasonal adjustment methodology, has largely eliminated the increase.
In contrast, record exports pushed the trade surplus of Germany - Europe's largest economy - to a three-year high in September, data showed on Tuesday.
'Double-dip'
Meanwhile, in the September data, the jump in UK imports was driven by oil, chemicals and silver.
The trade deficit with non-European Union countries was much worse than expected, which may be particularly worrying as the UK's European export markets are now being badly affected by the eurozone debt crisis and a looming recession.

  "A key concern was the fall in goods exports, which fell 1.6% in September," said Chris Williamson of financial data firm Markit.

"Further export losses look likely in coming months, with survey data suggesting the rate of decline could accelerate substantially.
"With domestic demand hit by deficit-fighting austerity measures and export sales falling, it is hard to see what will drive economic growth in coming months, raising the risk of a double-dip recession."
Sterling slip
Other analysts questioned the data, pointing out that the monthly figures can be quite volatile and adding that the widening deficit was driven by an increase in imports, which seemed inconsistent with the subdued mood among UK consumers.
The pound fell sharply as the data was released, and was down over a cent and a half against the dollar in afternoon trading, at about $1.593.
Markets took the data as further evidence of an economic slowdown, which is likely to result in additional money creation by the Bank of England, weighing on the value of sterling.
"The EU trade market is volatile in these challenging economic times - that is why we are working on boosting trade with emerging markets," said the trade and investment minister, Lord Green.
"Trade is at the heart of the government's plan for growth. Through their new strategy, [UK Trade and Industry] is targeting high-growth [small and medium-sized businesses] to encourage them to export and focuses on aiding existing exporters with winning high-value opportunities in overseas markets."

What Is Forex?

(Bloomberg)--Are you new to forex trading? If so, forex trading may seem "foreign" to you now, but it doesn't have to. Use the information in these pages to help you learn more about the forex markets and how you can trade more confidently in them.
Forex (foreign exchange) is the buying and selling of currencies. Forex transactions always include two currencies—one currency is purchased while the other is sold. For example, in a forex transaction euros (EUR) may be purchased while US dollars (USD) are sold; or Great British pounds (GBP) may be purchased while Japanese yen (JPY) are sold. The two currencies involved in a transaction are considered a currency pair (e.g., EUR/USD or GBP/JPY) and each currency pair has an exchange rate.
The goal of forex trading is similar to the goal of stock trading where you attempt to "buy low and sell high." Currency exchange rates fluctuate up and down throughout the day, providing forex traders with the ability to potentially profit from these movements.
The basic concept of forex trading is similar to those used in equities, bonds, futures, and options markets—the distinction being the product that is traded. In fact, most new forex traders will probably find the transition to forex to be simple and straight forward. The technical indicators and strategies used in other markets can be used in the forex market as well.

Why Trade Forex?

• Flexibility: Place trades 24 hours a day.
• Opportunity: Easily trade when markets are trending up or trending down.
• Simplicity: Use technical analysis (indicators on charts) methods from other markets like equities.
• Strength: Access the most liquid market in the world.

South Africa’s Rating Outlook Cut to Negative by Moody’s

(Bloomberg)--South Africa’s credit-ratings outlook was lowered to negative by Moody’s Investors Service, indicating it may downgrade the nation’s debt from A3, as “heightened political risk” and spending demands put pressure on public finances.
The outlook was reduced from stable, Moody’s said in a statement today. The rating is the fourth-lowest investment- grade level. Standard & Poor’s rates South Africa’s debt at BBB+, one level lower than Moody’s.
Finance Minister Pravin Gordhan forecast on Oct. 25 a budget deficit of 5.5 percent of gross domestic product in the year through March, compared with 4.6 percent last year, as the economy’s recovery stalls and the government misses revenue targets. Gordhan has little room to rein in spending as labor unions push the government to do more to boost jobs and the youth wing of the ruling African National Congress calls for mines to be nationalized.
Moody’s action was driven by “the growing risk that the political commitment to low budget deficits and the ability to keep within current debt targets could be undermined by popular pressures and rising internal strains within the African National Congress” and its labor union allies, the ratings company said.
South Africa disagrees and is “disappointed” with Moody’s decision, the National Treasury said in an e-mailed statement today. The global environment was the main reason for Moody’s action and an improvement in growth will boost South Africa’s public revenue once again, the statement said.

Political Risk

“We disagree with the assessment of political risk in South Africa,” the Treasury said in the statement. “We note that the decision to revise the outlook comes after a recent clear fiscal policy statement of government, the Medium Term Budget Policy Statement tabled in October.”
Gordhan lowered his forecast for economic growth to 3.1 percent this year and 3.4 percent in 2012 from 3.4 percent and 4.1 percent respectively. Growth that’s slower than estimated may add to job losses and worsen social tensions in the country, increasing calls for “interventionist” policies to boost ownership by black people in the economy, Moody’s said.
The rand reversed an earlier gain, weakening 1.8 percent to 8.0038 per dollar at 6:15 p.m. in Johannesburg. The yield on the benchmark rand bond due in 2015 rose 11 basis points, or 0.11 percentage point, to 6.49 percent.
“No one had really been expecting this reaction in outlook,” said Leon Myburgh, sub-Saharan Africa strategist at Citigroup Inc. in Johannesburg, in a telephone interview. “I don’t think there will be a downgrade any time soon.”

Debt Accumulation

Higher domestic savings and investment rates, stronger economic growth and “restrained debt accumulation” will support a credit rating upgrade, Moody’s said.
“The ratings could be downgraded in the event of a serious and durable deterioration in the debt metrics and/or heightened socio-political pressures that are not addressed in a manner consistent with future debt,” Moody’s said.
ANC Youth League President Julius Malema has called for the nationalization of mines in South Africa, the world’s largest producer of platinum and chrome. Malema has said his wing of the party will withhold support from ANC members who don’t support their policies. The ANC holds elections in December next year, which will determine the party’s candidate for president.

China's Rapid Inflation Cools

NEW YORK (CNNMoney) -- Over the past year, China's government has enacted various measures to curb rapidly rising prices, without sacrificing economic growth. So far, those efforts seem to be working.

Prices were up 5.5% from a year ago in October, according to the Consumer Price Index released by China's National Bureau of Statistics early Wednesday.

While that's much faster than 3.9% annual inflation in the United States, for China it may be a baby step toward sustainable economic growth.

"Prices on everything from rents to haircuts, have decelerated somewhat in the last few months, and I think it is a good sign," said Sung Won Sohn, economics professor at Cal State University Channel Islands. "That's exactly what the government has been trying to deliver."
Just three months earlier, Chinese consumers were being squeezed by prices that were rising as fast as 6.5% year-over-year.
But inflation has slowed gradually every month since July, and according to one government official it's likely to come down even further, to about 5% by the end of the year. (The Chinese government officially aims for a 4% inflation rate).
"At present, prices are stabilizing and are under overall control," Peng Sen, vice-chairman of the National Development and Reform Commission said in an online statement two weeks ago.

The World's Largest Economies

Food prices are typically one of the biggest drivers behind Chinese inflation, and lately, the price of pork, a key staple, has started to come down. Declines in vegetable prices have also helped.
As recently as July, food prices were up by a staggering 14.8% annual rate, but they have since moderated to a 11.9% rate in October.
Food makes up roughly a third of the government's official CPI figure, but in reality, it could account for even as much as 80% of a family's spending, in many rural parts of the country, Sohn said.
Meanwhile, housing-related prices were up 4.4% in October, down from a recent high of 6.2% year-over-year increases in June.

0:00 / 2:20 Should China bail out Europe?

The Chinese government has fiercely been trying to tame the country's housing boom, and inflation overall.
Since last year, it has lifted interest rates five times and bank reserve requirements nine times, and has also imposed limitations on homebuyers.

Global income inequality: Where does the U.S. rank?

Tightening credit while still allowing for robust growth can be a delicate balancing act for the Chinese government. Fears have run high that instead of deflating the housing boom slowly, the government could cause the sector to suddenly collapse, taking the Chinese economy with it in a so-called hard landing.
It's true, China's economic growth has slowed recently as the government has focused on curbing inflation. But Chinese growth is still so strong, it remains the envy of many Western nations.

Now fears about a hard landing are beginning to wane, as both measures -- inflation and economic growth -- appear to be slowing very gradually.

"It doesn't look like the Chinese economy is crashing at this point," said Jay Bryson, global economist for Wells Fargo. "That's good news for the global economy, which wants a strong China right now."

IMF Chief Lagarde Warns of ’Lost Decade’ for Economy

(Bloomberg)--International Monetary Fund Managing Director Christine Lagarde warned of the risk of a “lost decade” for the global economy unless nations act together to counter threats to growth.
“In our increasingly interconnected world, no country or region can go it alone,” Lagarde said in a speech to a forum in Beijing today. “There are dark clouds gathering in the global economy.” China and India echoed the call for cooperation in a separate statement.
Advanced economies have a “special responsibility” to restore confidence and lift growth, while China should boost consumption and allow its currency to rise, the IMF leader said. European leaders are looking to China as a potential source of funds as a sovereign-debt crisis threatens to engulf Italy, the third-biggest economy in the euro area.
Asian stocks rose for the first day in three today as easing inflation in China left more room for officials to support economic growth. A 5.5 percent gain in consumer prices in October was the least in five months, a government report showed.
China and India said that the global economy is in a “critical phase,” in a statement after the fifth meeting in a so-called financial dialogue between the two nations, usually held each year. The comments were dated yesterday and posted on a Chinese government website today.

Customs Valuation

These are the rates posted by the Central Bank of The Gambia as of the date below. Rates as of 31 October, 2011

Currency	Rates (GMD)
USD	30.55
EUR	42.19
GBP	47.20
CHF	32.55
SEK (100)	423.78
CAD	30.63
CFA (5000)	306.19
NOK (100)	482.68
DKK (100)	505.05
SAR	8.15
JPY (100)	39.11
AUD	32.22
WAUA	45.23
TWD	1.02
LKR	0.28
THB	0.99
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Jobs With Great Pay, But Huge Stress

(Investopedia) We all want to get paid more, but this is usually balanced out by concerns over working longer hours and the overall stress of a job. That's why many of us can envy a surgeon making hundreds of thousands a year, but still balk at the thought of having someone bleeding out on a table or all the years of schooling needed to make it to that point. In this article, we'll look at some of those jobs that we'd gladly take for the pay, but run away screaming from the stress. All of the salary information was taken from the Bureau of Labor Statistics (BLS).


Stock Broker: $70,190
We'll start with a controversial one – the stock broker. Stock brokers are well paid, there is no arguing that. That said, they also have to be constantly on the ball in one of the most chaotic work environments in the world. If you have ever had stress over investing your own money, imagine how it would feel investing other people's money and being accountable to them when the market decides to take a huge dive. Not only that, your job security is correlated with the market and your personal record. If the market goes down and takes your client's money with it, you may be looking for a new job. 

Firefighter: $45,250
Somewhere in the dawn of time, our ancestors learned that fire burned and big fire burns more, so we've gained a healthy instinct for running away from fire. Unfortunately, though, we also want to help get people out of burning buildings, so we train up people to go against instinct and run into them. The stress factor of being a firefighter is difficult to peg because there may not be a major fire every day, but there is always the threat of one. Not only that, firefighters have other roles that lead to stress, such as reporting to accidents and attempting to revive people after a medical emergency.

Detective or Criminal Investigator: $68,820
Perhaps only the Shadow knows what evil lurks in the hearts of men, but police officers – particularly detectives and criminal investigators – have to see it every day. Perhaps the biggest challenge for detectives is not to carry work home with them in that they deal with the worst of the worst day in and day out. Although these situations make for riveting viewing as a TV drama, spending your waking hours seeing, analyzing and being in crime scenes is beyond what most people can handle.

Soldier: $26,000 (base), $53,960 (includes allowances, benefits)
 Soldiers do not get paid much at all when you consider that they go into active combat situations where there is the possibility of being shot or blown up. Aside from the physical price paid, there is the psychological price in the form of post-traumatic stress disorder. A soldier works in high-stress and highly dangerous situations and then is faced with additional problems when trying to adjust to normal life when the tour is done.

Surgeon: $225,390 (Mean)
The money is huge in surgery, making it a very competitive field to get into. However, the years of education alone are stressful enough to cause breakdowns, and the job at the end is several levels above that. When you are a surgeon, you don't deal with colds, scrape or bumps. You are dealing with injuries, diseases or deformities that require surgery. The hours are all over the place and the chances are good that, if the phone rings in the night, you'll be responsible for keeping a patient alive. Being a surgeon is one of those jobs where screwing up means a lot more than getting chewed out by a supervisor.

The Bottom Line
This is just a sampling of jobs that may seem high-paying until you look at the price to be paid in stress. There are, of course, many others like nursing, selling homes, teaching and so on that can make equal claims to being a lot of stress for the money. With jobs like these, most people get into them for reasons other than money, so it is wrong to begrudge them the pay check. When you factor in the stress, they've earned it.
All these salaries are U.S. salaries, now why is Africa not at this level?

Latest Papers Put Pressure On James Murdoch

(Financial Times) -- James Murdoch will come under further pressure from MPs over what he knew about phone hacking at the News of the World, following the release on Tuesday of documents citing the tabloid's own lawyers.
The papers, including a QC's opinion, suggest that some of Mr Murdoch's most senior advisers knew three years ago that the illegal practice was widespread at the now-defunct newspaper.
The newly published documents also show that Colin Myler, NoW's former editor, told an external lawyer that he believed Mr Murdoch would tell him to "get rid" of journalists and "cut out [the] cancer" afflicting the newspaper if he knew about it.
But the documents, released by MPs investigating the phone hacking scandal, do not show that Mr Murdoch, then executive chairman of the paper's parent, News International, was aware of the extent of the brewing crisis at the tabloid.
Michael Silverleaf QC, instructed by lawyers for News Group Newspapers (NGN), said in a formal opinion that, if a privacy suit brought against the company came to trial, they could not hope to maintain the position that phone hacking was the work of only one reporter.
Mr Silverleaf had been asked whether NGN should seek to settle a case brought by Gordon Taylor, chief executive of the Professional Footballers' Association, and if so, for how much. He said he thought that it was "almost inevitable" that, if the case went to trial, any court would "wish to mark its disapproval" of activities that "will be seen as immoral and repugnant by any judge who is likely to hear the action".
"There is a powerful case that there is (or was) a culture of illegal information access used at NGN to produce stories for publication," he wrote on June 3 2008.
The Taylor case was settled and Mr Murdoch's company continued to advance the "rogue reporter" defence until April this year.
Mr Murdoch is due to appear on November 10 before the Commons select committee on culture, media and sport, which published the documents on Tuesday, and has said throughout that he was never told about evidence of phone hacking.
A person close to Mr Murdoch said he had not seen the QC's opinion until "very recently".

Stocks: Buckle In For A Bumpy Ride

NEW YORK (CNNMoney) -- Stocks are poised to end October with one the best monthly performances on record, but the market's wave of uncertainty is far from over.
Investors are relieved that European officials finally agreed on a plan of action aimed at tackling Europe's debt crisis last week. But they aren't yet convinced that the measures go far enough, as details about the plan and how it will be implemented remain unsettled.
"We have to keep our eyes and ears open for more risks in Europe," said Tom Schrader, managing director at Stifel Nicolaus. "There's a plan to bail out Greece, but there are still major issues in Italy and Spain, which are much bigger."
The spotlight will remain on Europe next week, as leaders of the G-20 nations gather in Cannes, with Europe's debt crisis dominating their agenda.

Euro rescue plan 'sugar rush' wears off

And with increasing signs of a recession in Europe, investors will also be tuning in Thursday to the European Central Bank's rate decision. It will be Mario Draghi's first news conference as he takes the reins from outgoing ECB president Jean-Claude Trichet.
The U.S. central bank will also be in focus. The Federal Reserve concludes its two-day meeting on Wednesday. While interest rates are widely expected to hold steady, investors will be keen to hear Chairman Ben Bernanke's assessment of the economy amid on-and-off fears of another recession.
In June, the Fed cut its growth forecast, estimating that the nation's gross domestic product will rise between 2.7% to 2.9% in 2011. According to the latest government reading, U.S. GDP picked up 2.5% during the third quarter, up from the disappointing 1.3% growth in the second quarter and the anemic 0.4% pace in the first three months of the year.
Investors will also be listening for any hints the Fed chief may make about a third round of bond buying, or QE3, to help stimulate the economy.
As long as the Fed maintains its outlook for slow, but still positive, economic growth, further intervention from the Fed is likely off the table, said Thomas Nyheim, portfolio manager at Christiana Bank & Trust Company.
The biggest beast facing the economy is still the nation's sluggish job market. The unemployment has been stuck above 9% since May 2009, and it's not expected to drop off anytime soon.
In the highly anticipated jobs report due Friday, analysts expect unemployment held steady at 9.1% in October, as the economy added 88,000 jobs.
"If the job report comes in below expectations, it would cast another pall over markets," said Stifel Nicolaus' Schrader. "A worsening job markets would create more uncertainty about whether we're going to have another recession."
Investors will also continue to monitor the health of corporate America during the final big week for third-quarter results. Over 100 S&P 500 companies are expected to open their books, including media leaders News Corp. (NWSA, Fortune 500) and Time Warner (TWX, Fortune 500), the parent company of CNNMoney, as well as Starbucks (SBUX, Fortune 500), Mastercard (MA, Fortune 500) and Pfizer (PFE, Fortune 500). 

Steve Jobs' sister: 'Death didn't happen to Steve, he achieved it'

(CNN) -- The last minutes in the life of Steve Jobs were still filled by the epiphanies and moments of inspiration that fed his inventor's mind, according to an intimate portrait provided by Jobs' sister in a eulogy published Sunday in The New York Times.
Mona Simpson's eulogy -- originally read during Jobs' memorial service on October 16 -- is a sister's celebration of a brother she knew only later in life, and a lament of losing a best friend. It weaves in words what she believed were the foundations of Jobs' genius: his humility and hard work, his love of learning and his family.
"I want to tell you a few things I learned from Steve, during three distinct periods, over the 27 years I knew him," said Simpson in her eulogy. "They're not periods of years, but of states of being. His full life. His illness. His dying."
Simpson, a writer, and Steve Jobs did not meet until they were adults. Their early family history was fragmented, but set the stage for what later became a deep-rooted friendship between two estranged siblings. After Steve Jobs' birth, his parents gave him up for adoption. Simpson was born later, and the parents subsequently divorced.

The best tidbits from the new Steve Jobs biography

 Legacy of Steve Jobs One day, Simpson said in her eulogy, when she was living in New York and writing her first novel, a lawyer gave her a call to inform her that her "long-lost brother" was rich and famous and wanted to contact her.

"Because we were poor and because I knew my father had emigrated from Syria, I imagined he looked like (actor) Omar Sharif," said Simpson.
"The lawyer refused to tell me my brother's name and my colleagues started a betting pool," said Simpson. "The leading candidate: John Travolta. I secretly hoped for a literary descendant of Henry James -- someone more talented than I, someone brilliant without trying," she said.
The man who came to meet her -- her brother -- was Steve Jobs.
"Even as a feminist, my whole life I'd been waiting for a man to love, who could love me. For decades, I'd thought that man would be my father. When I was 25, I met that man and he was my brother," Simpson said in the eulogy as published in the Times.
"When I met Steve, he was a guy my age in jeans, Arab- or Jewish-looking and handsomer than Omar Sharif," she said.
When they first met, Simpson said, she told her brother she had considered buying a computer but had waited.
"Steve told me it was a good thing I'd waited. He said he was going to make something that was going to be insanely beautiful," she said.
Jobs' life was not always a smooth ride, his sister said in her eulogy. He skidded through volatile times with Apple executives and eventually was ousted from the company he had founded.
"When he got kicked out of Apple, things were painful. He told me about a dinner at which 500 Silicon Valley leaders met the then-sitting president. Steve hadn't been invited," said Simpson.
"He was hurt but he still went to work ... Every single day," she said.

Qantas resumes flights after labor board orders end to dispute with unions

Sydney (CNN) -- Australia's Qantas Airways resumed flights Monday after a government labor board ordered it to end a dispute with its unions that grounded the airline over the weekend.
"Qantas can confirm that all domestic and international services have resumed from mid-afternoon on Monday 31 October," the airline's website said. "We are deeply sorry for the inconvenience and stress our customers have faced over the past days and months."
The first planes to depart were an international flight from Sydney to Jakarta and a domestic route from Melbourne to Sydney.
Some 100,000 passengers were impacted by the groundings, said Kira Reed, an airline representative.
Labor relations tribunal Fair Work Australia ordered an end to the labor dispute "to avoid significant damage to the tourism industry" after Qantas grounded its jets Saturday afternoon.
The airline grounded 447 flights and, ahead of the order to end the dispute, had announced it would lock out its unionized pilots, engineers, ramp, baggage and catering crews effective Monday evening.
The dispute with the unions has dragged on for 14 months, the labor board said.
Qantas argued that the unions' demands would leave the airline "seriously impaired or destroyed."
The labor board gave the two sides three weeks to reach an agreement, with a possible three-week extension if talks were making progress.
The decision "provides certainty for Qantas passengers," company CEO Alan Joyce said in a statement following the decision. He apologized to passengers.
The Australian and International Pilots Association said it hoped for a "positive outcome" from the talks, calling the decision to ground the airline a "gross overreaction" to its demands. "It is a sign that the current management has lost touch with the traveling public, its workers and the basic Australian ethos of free speech," the union said in a statement.
The labor dispute involves three unions representing air and ground staff of Australia's largest domestic and international airline.
Union officials have accused the airline of planning to outsource ground jobs at a cost of thousands of Australian jobs and of putting profits first. Pay and working conditions have also been at the center of the disputes.
The industrial action is aimed at ensuring Qantas will not have enough funds to set up overseas operations that will jeopardize job security, union officials said.
Joyce has come under fire for grounding the fleet, which was preceded by weeks of tension between the airline and its workers.
It's "a maniacal overreaction," said Richard Woodward, vice president of the Australian and International Pilots' Union.
The decision to ground the Qantas fleet, stranding thousands of passengers around the world, was unnecessary and grossly irresponsible, he said in a statement.
In a statement, the Transport Workers Union of Australia described the cancellations as "disgraceful" and aimed at destroying the airline.
Qantas, which has its headquarters in Sydney, is the second oldest airline in the world, and marked its 90th anniversary last year.
It employs about 32,500 people and flies to more than 180 destinations worldwide, according to the company website.

"Gambia Economy Remains Stable" Said Central Bank Governor

The governor of the Central Bank of The Gambia has disclosed that despite the financial market turbulence generated by the European sovereign debt crisis and world banks projection of slow growth in developing countries, the Gambia economy is steadily sustaining growth.

Amadou Colley made this revelation on Friday 28th October 2011 at a press briefing of the Monetary Policy Committee of the Central Bank.  ‘The Gambia economy continues to grow at a robust pace despite the challenging global environment. Economic growth is projected at 5.5 percent in 2011, but lower than the 6.1 percent in 2010. The economy is expected to benefit from increased value-added of agriculture and tourism’, he stated.

Below is the full text of the Central Bank governor’s statement at the briefing.

Since the last MPC meeting in July 2011, growth in some of the advanced economies has weakened against the backdrop of financial market turbulence generated in large part by the unresolved European sovereign debt crisis. Although economic growth in emerging economies is expected to continue to outperform that of the advanced economies, they are unlikely to emerge unscathed from the challenging global environment.

According to the latest World Economic Outlook, global growth is projected to slowdown to 3.9 percent in 2011 compared to 5.0 percent in 2010. Owing to strong growth in the emerging economies, commodity prices remain at elevated levels. This coupled with persistent excess demand in the major emerging market economies are contributing to broader global inflationary pressures.

The Global Food Price Index of the United Nations Food and Agriculture Organization (FAO) reached a historic peak of 238 points in February 2011, well above the peak of 213.5 points reached in 2008. Prices have since eased and in September 2011, the index was 225 points, but still 15 percent higher than in September 2010.

Crude oil prices remain elevated despite recent decrease in prices in September 2011, the largest since May 2010. Overall, oil prices decelerated by 7.4 percent in the second quarter of 2011.

The Gambian economy continues to grow at a robust pace despite the challenging global environment. Economic growth is projected at 5.5 percent in 2011, but lower than the 6.1 percent in 2010. The economy is expected to benefit from increased value – added of agriculture and tourism.

Broad money grew by 11.5 percent in the year to end-September 2011 compared to 20.1 percent a year ago. Both components of money supply increased. However, narrow money grew at a faster pace of 15.3 percent than quasi money (8.6 percent).  Reserve money rose by 13.0 percent, lower than the 20.8 percent a year ago. Although the net domestic assets (NDA) of the Central Bank of The Gambia (CBG) increased by 128.9 percent, the net foreign assets (NFA) contracted by 5.1 percent.

According to the data on Government fiscal operations, total revenue and grants in the first nine months of 2011 amounted to D3.9 billion (12.0 percent of GDP) compared with D3.8 billion (13.1 per cent of GDP) in the corresponding period in 2010.

Tax revenue decreased to D2.7 billion, or 2.3 percent. Non-tax revenue, on the other hand, increased to D404.9 million, or 14.3 percent. Total expenditure and net lending rose to D4.6 billion, or 6.3 percent, reflecting in the main, the 14.1 percent increase in current spending. Capital expenditure, in contrast, decreased by 9.6 percent during the period under review.

The overall budget balance (including grants) on commitment basis was a deficit of D714.50 million (2.2 percent of GDP) compared to a deficit of D530.0 million (1.8 percent of GDP) in the corresponding period in 2010.

As at end-September 2011, the domestic debt increased to D9.2 billion (29.5 percent of GDP) compared to D7.8 billion (27.4 percent of GDP) in September 2010. Outstanding Treasury bills, accounting for 74.0 percent of the debt stock, rose to D6.8 billion compared to D5.5 billion in September 2010.

Data on the distribution of Treasury bills by maturity indicate that the 364- day bill, 182-day bill and 91-day bill accounted for 69.31 percent, 20.51 percent and 10.18 percent of the outstanding bills compared to 65.64 percent, 21.0 percent and 13.36 percent respectively in September 2010.

Treasury bills and Sukuk Al-Salaam yields continue to decline. The 91-day Treasury bill and Sukuk Al-Salaam yields declined to 7.98 percent and 8.15 percent in September 2011 from 9.57 percent and 10.08 percent respectively in September 2010.

Similarly, the yield on the 182-day and 364-day bills decreased to 8.7 percent and 10.01 percent from 10.24 percent and 13.37 percent respectively in September 2010. The volume of transactions in the foreign exchange market contracted to US$1.56 billion in the year to end-September 2011 compared to US$1.68 billion a year earlier.

The Dalasi continues to weaken against all the major currencies. Year-on year to end-September 2011, the Dalasi depreciated against the US Dollar by 4.7 percent, Euro (6.6 percent) and Pound Sterling (0.95 percent). In nominal effective exchange rate terms, the Dalasi depreciated by about 5 percent.  Preliminary balance of payments estimates indicated an overall surplus of US$39.29 million in the first half of 2011 compared to US$39.94 million in the corresponding period of 2010.

The current account recorded a surplus of US$43.5 million, significantly higher than the US$20.7 million in the corresponding period in 2010. The goods account recorded a deficit of US$55.17 million compared to the deficit of US$49.02 million in the first half of 2010.

Imports and exports rose by 17.0 percent and 19.4 percent respectively. The capital and financial account recorded a deficit of US$4.2 million relative to the surplus of US$19.2 million in the corresponding period in 2010. As at end-September 2011, the gross official reserves totaled US$171.7 million, equivalent to 4.9 months of import cover.

According to the key financial sector indicators, the banking industry remains fundamentally sound. The average risk-weighted capital adequacy ratio was 27.1 percent in September 2011, higher than the 24.8 percent in the previous quarter. All the banks met the minimum requirement of 10.0 percent.

The industry’s assets increased slightly to D18.1 billion, or 0.12 percent from the previous quarter. Compared to the corresponding quarter of 2010, assets increased by 10.7 percent. Gross loans and advances, accounting for 30.0 percent of total assets, rose to D5.4 billion, or 6.5 percent.

Although the ratio of non-performing loans to gross loans at 13.0 percent was the same as in the previous quarter, it was below the 16.2 percent in the third quarter of 2010.. Deposit liabilities rose to D11.9 billion, or 0.04 percent over the second quarter of 2011. However, compared to the corresponding quarter in 2010, deposit liabilities rose by 9.3 percent.

According to the readings of the forward-looking business sentiment survey, the vast majority of respondents expect economic and business activity to be higher in the fourth quarter of 2011 compared to the third quarter of 2011. Also, the majority of respondents reported that current prices are higher, but expect inflation to be lower in the fourth quarter of 2011.

End-period inflation, measured by the National Consumer Price Index (NCPI) was 4.1 percent at end-September 2011, from 6.2 percent in September 2010. Average inflation (12-month moving average), however, increased to 5.2 percent in the year to end-September 2011 compared to 4.2 percent a year earlier. Consumer food inflation decelerated from 8.4 percent in September 2010 to 5.5 percent in September 2011. Non-food inflation also declined to 2.2 percent from 2.9 percent in September 2010.  Core inflation, which excludes prices of energy, utilities and volatile food items, decreased to 4.2 percent in September 2011 from 6.2 percent in September 2010.

Outlook for Inflation
Inflation is projected to be within the target of 6.0 percent in the remainder of the year premised on the continuous decline in global food and energy prices, expected increase in domestic food production and the prudent stance of monetary policy. There are, however, upside risks to the outlook mainly emanating from exogenous price shocks and the stance of fiscal policy.

Decision
Taking the above developments into consideration, including the risks to the inflation outlook, the MPC has decided to reduce the rediscount rate by 1 percentage point to 14.0 percent.

Chinese investment in Europe to surge

(Financial Times) -- In the wake of a handful of high-profile Chinese investments in companies like Volvo and a constant barrage of headlines declaring China's economic rise, some Europeans might have the impression they are already being bought up by Beijing.
This impression is reinforced by a proposal that would see China give a small chunk of its $3,200bn foreign exchange reserves to the International Monetary Fund to bail out European banks or backstop sovereign debt in the eurozone.
But while the country's huge reserves make it an important participant in international debt markets, they do not represent a piggy bank that China Inc can raid to snap up big swathes of European industry.
In fact, China's total stock of direct non-financial investment in the 27 European Union member states, while growing quickly, is still miniscule at around $15bn, according to a new study from Rhodium Group, an economic consultancy.
That represents less than 0.2 per cent of all foreign investment stock in Europe.
Europe agrees on debt crisis deal.
To put it in perspective, total Chinese investment in hard assets in Europe in recent decades is equivalent to the average weekly increase of its foreign exchange reserves in the first half of 2011.
The vast bulk of those reserves is managed under a strict mandate that does not allow it to be spent on direct investments abroad. However, Beijing is encouraging its cash-rich state enterprises to expand beyond China's borders and the country's outbound investment is expected to surge in the coming years.
According to government figures, China's global stock of outbound direct investment reached $330bn at the end of June, up from less than $30bn in 2002 but that still only accounted for about 1.6 per cent of the global total from all countries.
Given Beijing's ambitions and the size of China's economy, the Rhodium Group estimates that Chinese companies could invest as much as $1,000bn abroad between now and 2020, with much of it going to developed economies.
"China's investment interest is moving from natural resources toward developed economy assets such as brands, technology and distribution channels so places like Europe will receive a greater portion of that $1,000bn," said Thilo Hanemann, research director at the Rhodium Group.
Chinese direct investment in Europe in the first half of this year hit almost $3.3bn, exceeding the total for all of last year. If some large proposed deals in the energy, gas and PC sectors are completed, the total for this year could be as high as $8bn.
The EU and Beijing are considering opening negotiations on an investment treaty that would make it easier for Chinese companies to invest in Europe and would help counter possible protectionist sentiment in Europe.
While European officials insist the continent is open to all foreign investment Chinese officials complain that their companies are treated unfairly and regarded as a threat while investors from the US are welcomed.
Analysts say the biggest obstacles to more direct investment in Europe are Chinese companies' lack of experience in international deal-making and their inability to adapt to the legal and political environment they encounter there.
"So far we have seen very few successful stories of Chinese companies operating in Europe," said Tao Jingzhou, managing partner for Asia at Dechert law firm. "It is a struggle because of much higher costs and a very different legal structure, especially when it comes to labour laws."

6th African Economic Conference opens in Addis.-Experts call for major structural transformation of African economies

The 6th African Economic Conference opened Tuesday, 25th October 2011 at the United Nations Conference Centre in Addis Ababa, Ethiopia, with calls by experts for a major structural transformation of African economies.

With the theme: ‘Green Economy and Structural Transformation’, the four-day conference is jointly hosted by the United Nations Economic Commission for Africa (ECA), the African Development Bank, and the United Nations Development Programme (UNDP). The specific objectives of the Sixth African Economic Conference is to provide a platform for experts on Africa, both within and outside the continent, to reflect and dialogue on new directions for growth policy on the continent in order to determine the best approaches to attain the Millennium Development Goals, achieve the objectives of NEPAD and accelerate Africa’s sustainable development.

It will also help to build a common understanding of and exchange knowledge on the green economy concept among African scholars, policy makers as well as other experts in the field; To deepen the knowledge-base in the subject in the quest to meet challenges and identify opportunities in a ‘green economy’ and to share experiences on what is working and what is not in terms of policy responses and interventions; Suggest ways to reinforce capacities of governments and the private sector as well as empowering citizens in the promotion of green economy on the continent, to articulate ways of formalizing a framework for African countries to ensure that relevant green economy concerns are addressed in international, regional and national fora.

Speaking at the opening ceremony, Abdoulie Janneh, the UN Under Secretary General and Executive Secretary of the United Nations Economic Commission for Africa (UNECA) said it is now evident to all concerned that mankind needs to move from old resource intensive methods of growth in which progress has been at the expense of the environment to one in which productivity is boosted by using and managing natural resources more efficiently and effectively. He said green economy must contributes to the structural transformation of African economies, as economic activities must take account of long-term consequences for the environment and the need to preserve our common heritage for future generations while promoting improved social conditions, noting that building a green economy is therefore an important element of the solution.

According to him, the commitment to building a green economy brings its own challenges noting that switching to a green growth path may enable leap-frogging of dirty and inefficient technologies, there are more fundamental dilemmas to grapple with including costly adaptation and path dependence. “Radical changes would be required in behaviour from government, firms and consumers and matched by sufficient financial resources if this approach is to succeed.  We also face a predicament in the sense that while the pressing priority for most African countries is to promote growth that creates jobs the immediate effect of on-going growth is a short-run increase in demand for food, energy, and water that may further burden the environment.” Janneh posited.

The Gambian-born UN under Secretary General said: “It is against this background that we must examine how best the green economy can bring about structural transformation in Africa.  In doing so, however, we must note that Africa has been growing quite steadily since the turn of the new Millennium with growth rates averaging about 5%.  We therefore need to take this situation into account as we try to shift to a green growth trajectory, and especially as our major development partners are also grappling with debt, unemployment and slow growth.  Moreover, we must strive to ensure that our growth processes provide job opportunities for young people and give them hope for the future.”
To ensure that the green economy contributes to structural transformation in Africa, Janneh said we have to overcome some of the challenges outlined, and would also mean providing a persuasive vision for the green economy, promoting green growth, determining key sectoral priorities and establishing frameworks for coordination at national and international levels.

Janneh reminded African leaders that if the green economy is to drive a process of structural transformation it would be important to convey a clear vision to all stakeholders of what it entails and what is required to bring it about.  Creating awareness about the concept is an important and necessary first step in meeting this very important requirement, just as it would be necessary to highlight its potential contribution to growth and structural transformation. He said Africa has an abundance of natural resources such as minerals, fisheries, forests, wind, hydro and solar which provide it with options for their long-term use in an eco-friendly manner. He added that the green economy would also need to be properly coordinated with on-going processes and must therefore be integrated in national development plans and strategies pointing out that African countries like Ethiopia, Kenya, Morocco, Rwanda and South Africa are good examples of how the green economy could be used to create jobs, generate energy and aim towards carbon-free targets.  In addition, he said governments also have a role in establishing policy frameworks that will prioritize investments in the green economy and create incentives to overcome negative externalities and encourage private actors to embrace the idea.

He then made it clear that  it is important that international governance of the environment promotes rather than hinders green growth.  “There is legitimate fear that a green economy may allow for trade protectionism and the imposition of additional policy conditionalities but this need not to be the case if we promote and adopt global norms that make it easier to produce and trade in green goods” he said. He stated that since developed economies have the resources and technological capabilities needed to undertake required changes, serious consideration should be given to how best to assist African countries to implement agreed outcomes including through the provision of accessible finance, building of local capacities, and access to green technologies. He then described the theme of the conference as relevant, apt and compelling and urged Africans to address this concern by clearly defining what we mean by the green economy and to show that it does not subtract or detract from sustainable development but rather further deepens our ability to promote the balanced integration of its economic, social and environmental pillars.

The Ethiopian Prime Minister, Meles Zenawi, stressed that green growth of utmost importance to Africa due to its abundant renewable energy sources. He said that since African economies are largely agrarian-based, any action on green growth must first target the agriculture sector. He also stated that structural transformation can only take place with a massive increase the production of energy in Africa, from renewable sources. And added that Ethiopia had already embarked on such a programme, that will increase energy generation five-fold in the next five years. “By 2025, when we expect to be a middle-income country, we will have close to zero net emissions of carbon in our economy,” he said.
The Chairperson of the African Union Commission, Jean Ping, said the theme of the meeting was very timely and will help Africa’s preparations for the CoP17 negotiations later this year in Johannesburg, South Africa; and the Rio + 20 meeting in Brazil in June 2012.

Ping quoted the famous political economist, Thomas Malthus, who once said: “The power of population is indefinitely greater than the power in the earth to produce subsistence for man.” He made it clear that he was not a Malthusian, and said green economic growth would be the solution to population pressures. He also noted that the 2011 Economic Report on Africa, jointly published by the African Union Commission and the Economic Commission for Africa, calls on the state to intervene in economic activities to guide development, and said the developmental state would be central to progress in Africa.

Tegegnework Getu of UNDP noted that although African countries had achieved impressive growth rates in recent years, this had not led to a significant improvement in the lives of Africans. He therefore called for a new economic development model such as green growth. “African countries must achieve much-needed advances in human development without replicating the unsustainable practices of those already there; improve the utilisation of their natural resources, including the new discoveries of minerals and hydro-carbons, such that critical environmental systems functions that are preserved and so that the human development of current and future generations is maximised,” Getu said.

Mthuli Ncube, the vice president and chief economist of the African Development Bank, pointed to the difficulties that the global economy is currently facing and the dangers this can pose to African economic prospects. He said African policy-makers therefore have a responsible to manage African economies to shield it against external shocks and to promote global growth. He added the continent also needs to access more funds available for climate change adaptation and called for the creation of a climate change fund that is specific to Africa.

The African Economic Conference will finally inform the 17th United Nations Framework Convention on Climate Change, which takes place in Durban, South Africa from 28 November to 9 December 2011 and will also help the continent to prepare for the United Nations Conference on Sustainable Development (Rio+20) to be held in Rio de Janeiro, Brazil, on 4-6 June, 2012.

Outgoing GTBank MD bids farewell to VP

The outgoing managing director of Guaranty Trust Bank Ltd (GTBank) Friday bade farewell to the vice president and minister of Women’s Affairs, Aja Dr Isatou Njie-Saidy at State House.

Olalekan Sanusi, who was accompanied to State House by the incoming MD, Olufemi Omotoso, used the opportunity to thank the Gambian officials for the remarkable support rendered over the years as well as ensuring a business-friendly environment.

The outgoing MD, who is taking up a new appointment in Accra, Ghana, further stated that they deem it prudent to pay a courtesy call on VP Njie-Saidy, so as to introduce his successor to the Gambian officials.

He described the new MD as a man with a vast wealth of experience, who had previously worked at their branch in Liberia before taking up the Banjul assignment.

Sanusi also commented on The Gambia’s banking performance in recent times saying it is a country where business is viable due to its political stability.

He stated that the bank is a responsible corporate institution and that they pay corporate taxes which amount to millions of dalasi annually.

“Currently, we employ about 250 Gambians and we are committed to transfer the knowledge and skills in fulfillment of the South-South Cooperation,” he added.

Sanusi also hailed the authorities for ensuring stability in the country. “The Gambia is a safe haven to me and the authorities have demonstrated a high level of confidence on us to do business here,” he concluded.

On his part, the incoming MD, Olufemi Omotoso, expressed similar sentiments and thanked the Gambian authorities for creating the enabling environment for businesses to operate successfully in the country.

In her response, VP Njie-Saidy thanked the outgoing GTBank MD for the efforts he put in while serving in the country. She also welcomed his successor on behalf of the Gambian leader and the entire citizenry.

She assured that the Gambia government is appreciative of the bank’s intervention in the development of the country and thanked the officials for their efforts.

She further assured that the Gambia government has placed a lot of confidence and trust on the bank, which she said, is as a result of the bank’s remarkable performance.

The vice president finally assured the new GTB MD of government’s full time support in creating the enabling business and policy environment for businesses to thrive.

Alhagie Saihou Denton, GTBank Group head of Public Sector also thanked the leadership of the country for creating an enabling environment to conduct business.  Babou Gai, head of Corporate Affairs, GTBank chaired the occasion.