Business

7, December 2022

Oil and Gas: Biya and Obiang set to seal shameful deal ⁰

A cross-border energy cooperation deal between Cameroon and Equatorial Guinea, which has been stalled for several years, is now set to go ahead and should boost Yaoundé and Malabo gas operations, Africa Intelligence reported.

Africa Intelligence also added that the deal would also benefit Marathon Oil and its Bioko liquefaction plant as well as Chevron, which operates in both countries.

However, the signing is coming at a time when Equatorial Guinea recently deported several hundred Cameroonians, some of whom say they were fleeing terrorist and rebel attacks at home.

The oil-rich country has a history of always targeting Cameroonian migrants who render services such as mechanics, electricians, and bricklayers including miners.

Innocent Cameroonian citizens have over the years been victims of what many political commentators have painted as Biya regime’s lack of interest in the plight of its citizens outside the country.

By Chi Prudence Asong

6, December 2022

CPDM gov’t approves 10-bln-USD budget for 2023 financial year ⁰

Cameroon’s parliament on Monday approved a budget of 6,345.1 billion xaf (about 10 billion U.S. dollars) for the 2023 financial year, representing an increase of 4.4 percent compared to the previous financial year.

Edgard Ndongo Eteme, General Rapporteur of the Committee on Finance and the Budget, while presenting the budget said the money will be used to implement the country’s development plan, support national security and health system and rehabilitate displaced citizens.

“The new budget also seeks to create jobs, boost exports and economic stabilization measures and mobilize revenue,” said Louis Paul Motaze, Minister of Finance who defended the budget on behalf of the government.

Cameroon projects an economic growth rate of 4.2 percent in 2023 compared to a forecasted growth of 3.7 percent in 2022, said Motaze.

Source: Xinhua News Agency

17, November 2022

CPDM billionaire tales: New revelations in the “Baba Danpullo affair” ⁰

Baba Ahmadou Danpullo of Cameroon and Aliko Dangote of Nigeria are both wealthy African businessmen. The similarities end there!

In early 2020 financial regulators in South Africa seized and liquidated all of Danpullo’s properties valued at 277 million US dollars.

The chartered member of the ruling CPDM crime syndicate and powerful acolyte of the 89-year-old President Paul Biya has reportedly been operating in South Africa for over 35 years, creating employment from many of his investments and sponsoring the killings of thousands of people in Anglophone Cameroon with the proceeds.

Cameroon Intelligence Report understands Baba Danpullo’s criminal business empire is managed by Bestinver Company South Africa Ltd, Joburg Skyscraper Pty Ltd, and Bestinver Prop 01 Proprietary Ltd, which are all subsidiaries of Bestinver, the group he founded with political support from the regime in Yaoundé.

Things are falling apart for the Francophone Cameroon criminal and like he evicted the Aghem people from their ancestral lands in Menchum Division in the North West region with the support of President Biya in order to settle his cows, so too is he being evicted from the properties that he built in South Africa with fraudulent loans and blood money from Cameroon.

Baba Danpullo says the happenings in the Republic of South Africa is racist and xenophobic and borders on exclusionism aimed at retarding African progress by targeting black African businesspeople. This is simply not true!!

Over the years, Baba Danpullo has represented ill-gotten wealth from senior Cameroon government officials including the Biya family which he used in building a vast property portfolio in Johannesburg, Cape Town and Gqeberha (formerly Port Elizabeth). Franck Biya, President Biya’s eldest son spent years in South Africa monitoring his father’s own share of the Baba Danpullo criminal enterprise.

Danpullo’s lawyers have been telling the courts in South Africa that the so-called Cameroonian business tycoon’s properties generate approximately R20m a month, creating employment across the real estate sector and supporting jobs along the value chain. But coming from a country in Sub Saharan Africa that has nothing to show the world! Danpullo’s crime syndicate has inflicted a lot of pain on Cameroonians and his demise in South Africa is a welcome relief to the Cameroonian people.

Cameroon’s economy remains an equation that might not be solved by the South Africa seizure alone. Cameroon is in the abyss of a financial crisis and corrupt businessmen like Danpullo are helping slowly but surely to make the country spiral into chaos.

Danpullo and the Biya family are investing in far away South Africa while Cameroon’s economy is on life support. Years of mismanagement and incompetence have eroded the country’s financial base.

Not being able to influence the judicial system in South Africa, the conman in early September had the accounts of subsidiaries of South African groups seized in Yaoundé, in order to obtain payment of more than €370m ($371m).

Like what all CPDM criminals do, on September 5 Baba Ahmadou Danpullo obtained from Quentin Djapité Ndoumbe, the president of the Court of First Instance in Bonanjo in Douala an order to seize the accounts of the operator MTN Cameroon and chocolate maker Chococam (a subsidiary of the South African food group Tiger Brands) at local banks. Danpullo is demanding payment of 243bn CFA franc (more than $371m).

By some strange happenstance, the liquidation of Danpullo’s company in South Africa and intervention by President Paul Biya is making matters more intractable.

According to Baba Danpullo’s spokesperson, the Covid-19 crisis and the arrival of a new manager at the First National Bank (FNB) are at the root of his setbacks in South Africa.

However, commenting on the matter, Jeune Afrique observed that a certain vagueness remains as the South African liquidators of Baba Danpullo’s company Bestinver reported difficulties beginning as early as late 2019, a few months before the start of the pandemic. It was indeed exactly when he reportedly made millions of US dollars available to the Cameroonian military to continue the war in Anglophone Cameroon.

Jeune Afrique also noted that the confinements imposed by Pretoria in 2020 did not help. Bestinver’s shopping centres, Princess Crossing in the suburbs of Johannesburg, Moffet on Main and Kings Court in Gqeberha (formerly Port Elizabeth), have seen frequentation plummet.

Cameroon Intelligence Report is keeping a watchful eye on the Danpullo Affair and we will keep our readers posted as we get more details.

By Soter Tarh Agbaw-Ebai

12, November 2022

Cameroon lost 67 million dollars to corruption in 2021 ⁰

Cameroon lost about 44 billion xaf (about 67 million US dollars) to corruption last year, according to statistics released Thursday by the Cameroon Anti-Corruption Commission (CONAC).

The amount represented an increase of over 26 billion xaf compared to 2020, the report said, adding that police and local government officials were among the worst offenders, with health, education, finance, road transport, and territorial administration sectors being the most corrupt.

“Efforts have been made so far to fight this vice, but we need to step up our strategies. It is true that people are becoming aware of their responsibility in connection with fighting corruption and checking the management of public funds but officials also need to make some more efforts,” CONAC President Dieudonne Massi Gams told reporters in the capital, Yaounde during a media briefing on the report.

CONAC, established in 2006, is a public independent body under the direct supervision of the head of state. Its mission is to monitor and evaluate the effective implementation of the government’s anti-corruption program.

Source: Xinhuanet

10, November 2022

Remarks by World Bank Group President David Malpass at the COP27 High Level Event ⁰

Thank you, Your Excellency Samia Suluhu Hassan, for taking the leadership in organizing this important event. I was very interested in the remarks by the Presidents of Malawi, Zimbabwe, Zambia, Botswana and others. I also want to the President of Mozambique for hosting several of us earlier this afternoon to discuss early warning systems and sustainable management of Miombo forests.

This conversation on the role of regional interconnections in integrating renewable energy at scale is critical in ensuring that the energy transition happens with the right balance of dependable supply, affordability, and environmental sustainability.

Southern Africa is generously endowed with renewable energy resources, an abundance of sun in Botswana, Namibia and South Africa, and hydro resources in Mozambique, Tanzania, Zambia and Zimbabwe. These resources are not evenly distributed and, therefore, enhanced regional integration to tap into each other’s resources can reduce economic and financial costs. Through deepened regional integration countries can become both suppliers and purchasers of electricity during times of excess capacity and when deficits occur due to the time of day, season, climate shocks and operational constraints. For example, the proposed Mega Solar Initiative which seeks to unlock about 5GW of renewable solar energy in Namibia and Botswana could also contribute to alleviate the power deficit in the region and make good use of hydro assets in the north of region for balancing and storing the variable renewable energy.

Increasingly, energy transition is underpinned by regional integration of power systems to enable clean energy resources to be harnessed at scale and greater knowledge exchange and leap frogging. Regional power pools in Africa are spearheading efforts to integrate national power systems and harmonizing regulatory and operational frameworks.

The Southern African Power Pool (SAPP) is one of the most advanced power pools not only in Africa but also beyond. Trading through the centralized market has been growing and members have been benefitting from the lower costs. Yet, there is substantial scope for much more trading and for members to realize more benefits from integration, and to ensure SAPP remains on the leading edge.

There are four potential important gains from increased regional power sector integration through renewable energies:

(i) savings in generation and transmission costs of up to $42 billion until 2040,

(ii) better management of variable renewable energy and seasonal imbalances,

(iii) supporting decarbonization and resilience of the regional grids, and

(iv) increasing grid densification to support and complement electricity access programs and the digital agenda.

Unlocking renewable energy and power trade potential requires a comprehensive approach, with parallel efforts at regional and national levels. Several key interconnections, across three corridors (East, Central and West), have already been identified by SAPP and require investments in the order of $2 billion. The World Bank along with the African Development Bank, and other cooperating partners is supporting SAPP to develop the Regional Transmission Infrastructure Financing Facility (RTIFF), an innovative financing mechanism aimed at unlocking current constraints and to crowd in the public and private sector financing required.

The World Bank Group remains committed to supporting Africa in promoting increased interconnectivity, decarbonization and access to electricity. This morning we launched SCALE, a new multi-partner initiative that aims to bring global community resources – including grants and concessional loans – to support greenhouse gas reductions in developing countries. We also support faster debt reduction efforts for countries with unsustainable debt – this will free up vital resources for development and climate action.

Our commitment to Africa is reflected in the current active portfolio of regional integration programs across the African continent in the amount of $19 billion, ranging from common infrastructure to building the joint capacity and systems for coordinated action on, among others, food systems, digital development, trade, and energy markets.

Our active portfolio of regional energy projects amounts to around US$6 billion, including US$ 1.2 billion in Southern Africa. We are keen to provide additional support. I note that this is in addition to our current portfolio of energy access operations which amounts to US$8 billion, and when completed, it will provide energy access to 75 million people in Sub-Saharan Africa.

In conclusion, I would like to reiterate the WBG’s commitment to supporting the innovative solutions that SAPP is developing to leverage private and climate funding. Thank you and I look forward to a good discussion today.

8, November 2022

World Bank Group Presents New Fund for Lowering Emissions ⁰

Today the World Bank announced a new multi-partner fund that will pool funding from the global community — including donor countries, the private sector and foundations — for scalable pathways to greenhouse gas emission reduction. The Scaling Climate Action by Lowering Emissions (SCALE) partnership will provide grants for verifiable emissions reductions and expand the funding sources for global public goods.

“Climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world. SCALE offers a key non-fragmented avenue for the global community to take action on climate change,” said David Malpass, President of the World Bank Group. “The verifiable emission reductions created by SCALE and similar mechanisms will also be an important step toward building effective carbon credit markets.”

SCALE will deploy Results-Based Climate Finance where countries receive grant payments for achieving pre-agreed, verifiable results, drawing on twenty years of World Bank Group experience in this area.

SCALE will support countries to build a track record of generating emission reductions from impactful programs and policies that they can apply toward their national emission reduction targets. SCALE will also yield excess credits that can be offered in carbon markets with the potential to unlock additional private sector funding.

SCALE will pool public and private resources to (i) channel additional funding to middle and low-income countries’ emission reduction programs; (ii) help bridge the gap between the supply of and demand for high-quality emission reduction credits by supporting large-scale climate investments; and (iii) help countries develop high integrity credits and enhance their access to international carbon markets.

Social inclusion is embedded in the design of all SCALE programs. An associated fund within the SCALE umbrella – Enabling Access to Benefits while Lowering Emissions (EnABLE) – enhances the inclusion of marginalized communities and indigenous peoples in programs under the partnership through specially designed benefit sharing arrangements.

8, November 2022

French Cameroun: Traders Say Equatorial Guinea Border Closure Ahead of Elections Hurts Business ⁰

Traders in the Cameroon town of Kiossi, on the border with Equatorial Guinea, say business is suffering after the land border was closed last week ahead of November 20 elections. Equatorial Guinea says it closed the border to prevent what it calls “infiltration of mercenaries who want to destabilize the elections.” Political analysts say President Teodoro Obiang Nguema Mbasogo, who came to power in a 1979 coup and is Africa’s longest still-serving leader, is sure to win.

Several hundred citizens from Cameroon and Equatorial Guinea, most of them merchants, say they have not been able to cross the border from Kiossi, a Cameroonian border town, to Equatorial Guinea since November 3.

Dozens of heavily armed Equatorial Guinea government troops can be seen on the central African state’s side of the border.

Building material importer Dominique Essono says the troops are preventing him and many other Equatorial Guinea citizens from returning to their country to vote on November 20.

Essono said scores of businesspersons are stranded and cannot move to Cameroon from Ebebiyin, a town in Equatorial Guinea. Cameroon imports vegetable oil, wine, canned food and body lotions from Equatorial Guinea and exports building material, vegetables, tomatoes, rice and potato to Equatorial Guinea.

On October 25, Equatorial Guinea’s Vice President Teodoro Nguema Obiang Mangue said the border was sealed to prevent from the “infiltration” of groups that may want to destabilize Equatorial Guinea’s elections.

Obiang, 80, is Africa’s longest serving leader. The former military officer serving as the 2nd president of Equatorial Guinea took power in an August 1979 coup.

He will be facing two candidates in the November 20 elections.

Esono Ondo is running for the first time while Monsuy Asumu is running for the third time. Obiang told the Pan African TV Channel Afrique Media on Monday that he will continue to develop his country and reduce poverty in rural communities if reelected.

Obiang says it is by no error that continuity is the slogan of his election campaign. He says his exceptional program is to open Equatorial Guinea businesses to the rest of the world so that by 2035, the central African state can become an economically independent emerging economy.

Owona Wolfgang, a political analyst at the University of Yaounde’s political science research center in Cameroon, says Obiang is poised for another victory, as in the past six elections when he never got less than 90% of the vote.

Wolfgang says it will not be surprising if after the elections, the aging Obiang hands over leadership of Equatorial Guinea to his son, Teodoro Nguema Obiang Mangue. He says Obiang’s son is Equatorial Guinea’s vice president and a very influential member of the Democratic Party of Equatorial Guinea, the country’s ruling party.

The opposition says Obiang’s rule is marked by persecution and torture of political opponents, corruption and sham elections, charges Obiang’s party denies.

The ruling party holds 99 of the 100 seats in the outgoing National Assembly and all 55 seats in the Senate.

Equatorial Guinea’s presidential poll was initially scheduled for April 2023. President Obiang brought it forward to November 20 to coincide with legislative, senate, and local elections.

Equatorial Guinea has an annual oil revenue of more than $3 billion, but most of its 1.5 million people live in poverty according to the United Nations.

Source: VOA

5, November 2022

World Bank Approves $497 Million in Financing to Lower South Africa’s Greenhouse Gas Emissions and Support a Just Transition ⁰

The World Bank Group Board of Executive Directors approved South Africa’s request for a $497 million project to decommission and repurpose the Komati coal-fired power plant using renewables and batteries. The project will also create opportunities for the affected workers and communities. This is in line with the government’s efforts to transition the country toward a low carbon development path with reliable, affordable, and sustainable energy for all.

Addressing energy poverty and transitioning toward lower carbon development requires a reliable power sector to underpin inclusive economic growth. The Komati Project aims to help mitigate climate change, enhance energy security, and support economic opportunities in the Komati area. The project is aligned with the country’s Just Transition Framework, which aims to minimize the socio-economic impacts of the climate transition, improve the livelihoods of those most vulnerable, and embrace the opportunities stemming from the transition.

The decommissioning and repurposing of the Komati coal-fired plant is a demonstration project that can serve as a reference on how to transition fossil-fuel assets for future projects in South Africa and around the world. The project will provide learning experiences through a cycle of piloting, monitoring, assessing, documenting, and information sharing.

“Reducing greenhouse gas emissions is a difficult challenge worldwide, and particularly in South Africa given the high carbon intensity of the energy sector,” said World Bank Group President David Malpass. “Closing the Komati plant this week is a good first step toward low carbon development. We are cognizant of the social challenges of the transition, and we are partnering with the government, civil society, and unions to create economic opportunities for affected workers and communities.”

The decommissioning of the Komati coal-fired plant will result in reduced carbon emissions and improvement of ambient air quality in the vicinity of the plant. The power sector is a major contributor to greenhouse gas emissions in South Africa, accounting for 41 percent of its CO2 emissions. This is due mainly to Eskom’s fleet composition. Its 15 coal-fired power plants, with an average age of 41 years, provide 38.7 GW of the country’s 52.5 GW installed capacity.

“This project is critical to our understanding of the sustainability of decommissioning, repurposing, and mitigating the socio-economic impacts for workers and communities before we scale up the move of the power sector into a low-carbon path,” said South Africa Minister of Public Enterprises, Pravin Gordhan. “It is part of implementing the country’s Integrated Resource Plan 2019 to gradually retire 12 GW of our old and inefficient coal-fired power fleet by 2030 and to scale up private sector-led renewables of 18 GW during the same period.”

The repurposing of the plant will enhance energy security in South Africa with the installation of a combination of 220 MW renewable energy solutions (including 150 MW solar PV solar and 70 MW wind) and 150 MW batteries, which together will help to improve the quality of electricity supply and grid stability.

Under the Komati project, the workers will be supported through a comprehensive transition plan, elaborated jointly with inputs from staff and unions. Options for the affected workers will include transfers to other Eskom facilities, re-skilling, and upskilling for deployment to the renewable energy plants.

A portion of project financing will be devoted to creating economic opportunities for local communities, which is expected to benefit approximately 15,000 people. Community-driven projects, skills training, incubation support, and business development services for new and existing micro, small, and medium enterprises are expected to create jobs in agriculture, local manufacturing, and digital technology. Activities will be carried out in coordination with local government, civil society organizations, and the private sector.

The Komati Just Energy Transition Project is financed jointly through a $439.5 million World Bank loan, a $47.5 million concessional loan from the Canadian Clean Energy and Forest Climate Facility (CCEFCF), and a $10 million grant from the Energy Sector Management Assistance Program (ESMAP).

5, November 2022

UK Energy Company to pay millions over oil bribes in Cameroon, Nigeria ⁰

Glencore Energy UK has been ordered to pay more than $ 314 million in fines after it bribed officials who worked in several African countries between 2011 and 2016. The company reportedly paid $26 million to the officials from countries like Cameroon, Nigeria, Ivory Coast, Equatorial Guinea, and South Sudan. Prosecutors stated that UK-based Glencore agents used private jets to funnel the cash that would fund the bribes.

According to a report from the UK government’s Serious Fraud Office (SFO), the money was used to guarantee top-grade access to larger cargoesand higher oil grades. The SFO brought the case against Glencore Energy UK and stated that the fine was the biggest that had ever been handed out for a corporate criminal conviction in the UK.

According to the SFO, between 2012 and 2015, an employee of the UK company and a representative from one of the Nigerian oil companies withdrew a total of $13.7 million in cash from Glencore’s Swiss cash bank. The cash was then transported on a private jet to Cameroon, where it was used to bribe officials in the country’s national oil and gas companies. Earlier in June, the conglomerate pleaded guilty to seven counts of bribery at a London court. The judgment of $ 314 million was announced on Thursday and included fines, legal costs, and confiscation of the profit Glencore made from its bribes.

The United States Department of Justice launched an investigation in 2018 to examine Glencore’s compliance with US money laundering and corruption laws dating back to 2007. The query specifically highlighted concerns about the company’s dealings in Nigeria, the Democratic Republic of Congo, and Venezuela. In 2019, UK’s SFO started its own investigation into the UK subsidiary of Glencore over what it stated as “suspicions of bribery” in Africa.

In a statement, Clare Montgomery, a representative for Glencore, said that the company regretted its actions.

“The company unreservedly regrets the harm caused by these offences and recognises the harm caused, both at national and public levels in the African states concerned, as well as the damage caused to others,” Montgomery said.

Source: OkayAfrica

26, October 2022

World Bank: Currency Depreciations Risk Intensifying Global Food, Energy Crisis ⁰

The shrinking value of the currencies of most developing economies is driving up food and fuel prices in ways that could deepen the food and energy crises that many of them already face, according to the World Bank’s latest Commodity Markets Outlook report.

In U.S. dollar terms, the prices of most commodities have declined from their recent peaks amid concerns of an impending global recession, the report documents. From the Russian invasion of Ukraine in February 2022 through the end of last month, the price of Brent crude oil in U.S. dollars fell nearly 6%. Yet, because of currency depreciations, almost 60% of oil-importing emerging-market and developing economies saw an increase in domestic-currency oil prices during this period. Nearly 90% of these economies also saw a larger increase in wheat prices in local-currency terms compared to the rise in U.S. dollars.

Elevated prices of energy commodities that serve as inputs to agricultural production have been driving up food prices. During the first three quarters of 2022, food-price inflation in South Asia averaged more than 20%. Food price inflation in other regions, including Latin America and the Caribbean, the Middle East and North Africa, Sub-Saharan Africa, and Eastern Europe and Central Asia, averaged between 12 and 15%. East Asia and the Pacific has been the only region with low food-price inflation, partly because of broadly stable prices of rice, the region’s key staple.

“Although many commodity prices have retreated from their peaks, they are still high compared to their average level over the past five years,” said Pablo Saavedra, the World Bank’s Vice President for Equitable Growth, Finance, and Institutions. “A further spike in world food prices could prolong the challenges of food insecurity across developing countries. An array of policies is needed to foster supply, facilitate distribution, and support real incomes.”

Since the outbreak of the war in Ukraine, energy prices have been quite volatile but are now expected to decline. After surging by about 60% in 2022, energy prices are projected to decline 11% in 2023. Despite this moderation, energy prices next year will still be 75% above their average over the past five years.

The price of Brent crude oil is expected to average $92 a barrel in 2023—well above the five-year average of $60 a barrel. Both natural gas and coal prices are projected to ease in 2023 from record highs in 2022. However, by 2024, Australian coal and U.S. natural-gas prices are still expected to be double their average over the past five years, while European natural gas prices could be nearly four times higher. Coal production is projected to significantly increase as several major exporters boost output, putting climate-change goals at risk.

“The combination of elevated commodity prices and persistent currency depreciations translates into higher inflation in many countries,” said Ayhan Kose, Director of the World Bank’s Prospects Group and EFI Chief Economist, which produces the Outlook report. “Policymakers in emerging market and developing economies have limited room to manage the most pronounced global inflation cycle in decades. They need to carefully calibrate monetary and fiscal policies, clearly communicate their plans, and get ready for a period of even higher volatility in global financial and commodity markets.”

Agricultural prices are expected to decline 5% next year. Wheat prices in the third quarter of 2022 fell nearly 20% but remain 24% higher than a year ago. The decline in agricultural prices in 2023 reflects a better-than-projected global wheat crop, stable supplies in the rice market, and the resumption of grain exports from Ukraine. Metal prices are projected to decline 15% in 2023, largely because of weaker global growth and concerns about a slowdown in China.

The outlook for commodity prices is subject to many risks. Energy markets face significant supply concerns as worries about the availability of energy during the upcoming winter will intensify in Europe. Higher-than-expected energy prices could feed through to non-energy prices, especially food, prolonging challenges associated with food insecurity. A sharper slowdown in global growth also presents a key risk, especially for crude oil and metals prices.

“The forecast of a decline in agricultural prices is subject to an array of risks,” said John Baffes, Senior Economist in the World Bank’s Prospects Group. “First, export disruptions by Ukraine or Russia could again interrupt global grain supplies. Second, additional increases in energy prices could exert upward pressure on grain and edible oil prices. Third, adverse weather patterns can reduce yields; 2023 is likely to be the third La Niña year in a row, potentially reducing yields of key crops in South America and Southern Africa.”

Concerns about a possible global recession next year have already contributed to a sharp decline in copper and aluminum prices. A Special Focus section of the report examines the drivers of aluminum and copper prices and explores implications for emerging market and developing economies that export these commodities. Prices will likely remain volatile as the energy transition unfolds and demand shifts from fossil fuels to renewables, which will benefit some metal producers. Metal exporters can make the most of the resulting opportunities for growth over the medium term while limiting the impact of price volatility by ensuring they have well-designed fiscal and monetary policy frameworks, the report highlights.