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AfDB supports Zimbabwe’s economy through ZimFund

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HARARE – The Zimbabwe Multi-Donor Trust Fund (ZimFund) is a short to medium term infrastructure development programme which supports Zimbabwe’s economic recovery by improving the quality of life of ordinary citizens, particularly the poor.

It is a major collaborative effort between members of the international donor community (Australia, Denmark, Germany, Norway, Sweden, Switzerland and the United Kingdom),the Government of Zimbabwe, and the African Development Bank Group designed to rehabilitate infrastructure and restore basic services in water and sanitation initially in six municipalities:(Harare, Chitungwiza, Chegutu, Kwekwe, Masvingo and Mutare) and energy throughout the country. The USD125 million Fund is administered by the African Development Bank, while Zimbabwe’s Ministry of Finance and Economic Developmentis the nominal recipient of ZimFund grants.

Through the Urgent Water Supply and Sanitation Rehabilitation Project (UWSSRP) and the Emergency Power Infrastructure Rehabilitation Project (EPIRP), ZimFund provides financial and technical support to activities that are consistent with the recovery priorities of the Government, using a pool of donor resources that are mobilized on the basis of a common understanding of the country’s recovery needs.

Since the grants were approved, the Government of Zimbabwe has procured the services of two implementing entities, Lahmeyer of Germany and PB Power of South Africa, to oversee the management of these national programmes in water &sanitation as well as energy sectors, respectively. Through a competitive bidding process, Works,Goods and Supply contracts for the water and sanitation project were signed with an Indian firm Technofab-Gammon JV and Com.Int.SpA, from Italy. Two sludge removal works were awarded to local contractors, R. Davis and Drawcard.Meanwhile, two smaller procurement contracts for the supply of computer hardware and software as well as capacity building tools will be tendered out soon.Contracts for the energy project have been signed with CHINT Electric Company Ltd ofChina, Angelique International Limited and The Indure (Pvt) Ltd of India. Four Consultancy services contracts have also been concluded with various consulting firms from Germany, Denmark, USA, Australia and Zimbabwe.

The goal of the Water Supply and Sanitation Rehabilitation Project is to improve the health and social wellbeing of residents in the above-mentioned six municipalities through an equitable provision of these services. ZimFund’s intervention will enable the provision of urgently needed support for the restoration and stabilisation of water supply and sanitation services, by undertaking emergency rehabilitation of the systems and reducing pollution of the existing water sources.

In Harare, water treatment works at Morton Jaffray,Prince Edward, and Firle Waste will be rehabilitated, as well as the Crowborough Wastewater Treatment Works and the Little Marimba Trunk Sewer. In Chitungwiza, works will focus on the Zengeza Sewage Treatment Works, while Chegutu will see the rehabilitation of the Clifton Dam Pump Station, the Chegutu Water Treatment Works, the Sewage Pump Stations and Sewage Treatment Works.In Kwekwe,the Dutchman’s Pool Water Treatment Works, the Woodlands, East and West Sewage Pump Stations and the Northern Sewage Treatment Works will be rehabilitated. Masvingo will see the rehabilitation of the Bushmead Water Treatment Works, the Sewage Pump Station No.1, the Rujeko Sewage Pump Station and the rehabilitation of the Masvingo Sewage Treatment Works. Works in Mutarewill focus on rehabilitating the existing Odzani Water Treatment Works, completing the partly constructed Chikanga Reservoir,the partly constructed Mutare Outfall Sewer and the rehabilitation of the existing Gimboki Sewage Treatment Works.

Most of the contracts for Works and the Supply of Goods for the ZimFund water and sanitation project are expected to be completed by the end of first quarterof 2014.

The Power Infrastructure Rehabilitation Projectfocuses on rehabilitating the Ash Plant at the Hwange Power Station and several sub-transmission and distribution facilities in Atlanta (Murehwa), Criterion &Mpopoma(Bulawayo), Gweru, Kadoma, Marvel (Bulawayo), Mazowe, Norton, Pomona (Harare), Redcliff, Sherwood (Kwekwe), Victoria Falls, ZISCO (Redcliff), Zvishavane and various electricity distribution facilities throughout the country.

This first phase of the Power project has seven components. To date, three Works contracts,valued at US$34.54 million have been awarded. These cover the rehabilitation of infrastructure at generation (namely the Hwange Power Station), transmission and distribution networks, Thesecontracts are at various stages of execution. Three Consultancy and Project Management Services contracts, to the tune of US$2.68 million, have also been awarded and these are also at various stages of implementation. A contract for Environmental Monitoring and Capacity Building at Hwange Power Station as well as the Environmental Audit are currentlybeing carried out.. Works are expected to be completed by the second quarter of 2014.

According to the ZimFund Manager, Mr Emmanuel Nzabanita, the expected results of the power project will be the increased reliability, quality and availability of water; restored wastewater treatment capacity and the reduced incidence of cholera and other water related diseases. He further underscored that by increasing the electricity supply to the City of Harare water supply treatment plants, as well as other urban water supply systems, ZimFund’s interventions will eventually reduce incidences of cholera and other water related diseases. Hence there arestrategic linkages between the two ZimFundinterventions.Ultimately, the power project will improve environmental management at the Hwange Power Station, enhancing the reliability of power transmission and improving the distribution infrastructure in the country. It will also help to reduce the greenhouse gas emissions that currently result from extensive tree felling for firewood, addressingsystem inefficiencies and frequent power failures in urban households. Through this project,power transmission and distribution losses will be reduced due to rehabilitated and upgraded equipment, hence system efficiency will increase.

The second phases of the ZimFund Water and Sanitation Project (USD35.99 million) and the Energy Project (USD32.94 million) were approved by the donors in July 2013 and implementation will commence in the 4th quarter of 2013.

 

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Dangote Identifies Power, Financing as Possible Keys to Africa’s Industrial Revolution

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Africa’s ambition of becoming a global industrial powerhouse hinges on its ability to mobilise long-term financing, deliver reliable electricity and adopt policies that turn its vast natural resources into manufactured products.

The President/Chief Executive, Dangote Industries Limited, Aliko Dangote expressed these views in London at the Financial Times Africa Summit during a conversation with David Pilling the Africa Editor of the newspaper.

Dangote, who has outlined a $50 billion investment programme for 2026 to 2030, said the continent must build stronger financial institutions capable of funding large-scale industrial projects, expand electricity infrastructure and establish policies that encourage domestic manufacturing, value addition and economic diversification.

The industrialist maintained that Africa possessed the natural resources, population and investment opportunities required to become a global manufacturing powerhouse, but needed stronger institutions and infrastructure to translate those advantages into sustainable economic prosperity.

Responding to a question on why Africa had produced relatively few industrial enterprises of global scale despite its enormous economic potential, Dangote stressed the need for deliberate policies and institutions capable of supporting long-term industrial investment.

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The Africa Summit by the FT is a prestigious platform for Africa’s most influential leaders and this year’s Summit lived up to its billing convening leading policymakers, business leaders, financiers and visionaries to explore how Africa can contribute meaningfully to shape the next era of global development.

Dangote said, “I think the number one thing that the continent has to concentrate on doing is having very strong financial institutions, their own financial institutions, and also to have very strong agricultural policy, and also industrial policy”.

He maintained that infrastructure development was equally important but singled out electricity as perhaps the most urgent requirement for unlocking Africa’s industrial potential, adding; “For Africa, what we need the most today is actually power,” he declared.

Dangote explained that inadequate electricity supply continued to undermine Africa’s ability to process its mineral resources locally, forcing countries to export raw materials rather than capture the greater economic value associated with manufacturing and processing. He cited the mining industry as a particularly striking example, noting that companies frequently identified unreliable electricity supply as a major reason for their inability to establish processing facilities close to extraction sites.

According to him, approximately 650 million Africans remain without access to electricity, a deficit he described as fundamentally incompatible with the continent’s industrial ambitions.

He argued that resolving the power crisis would transform Africa’s manufacturing prospects, encourage investment in mineral processing and create substantial employment opportunities.

The industrialist also drew on his experience developing the Dangote Petroleum Refinery and Petrochemicals (DPRP) in Lagos to illustrate how Africa’s financing environment could frustrate even commercially promising projects.

He disclosed that the Group had been compelled to finance the refinery against its own balance sheet rather than depend on conventional project financing, which he described as extremely difficult to secure for major African industrial investments.

He explained that prolonged financing negotiations could undermine the viability of industrial projects by delaying execution, increasing costs and exposing investors to changing economic conditions.

For the Dangote Group, the decision to proceed with the refinery without conventional project finance involved extraordinary financial risks, compounded by severe currency depreciation and the enormous cost of developing supporting infrastructure. Dangote said the exchange rate moved from approximately ₦136 to the dollar to as high as ₦1,800 during the refinery’s development, while about 90 percent of the Group’s revenue was denominated in naira.

Dangote said the Group’s proposed $50 billion investment programme was designed partly to encourage other Africans to recognise the opportunities available across the continent.

“The legacy we are trying to set up is how do we industrialise our continent?” he said.

He explained that the Group intended to expand its investments between 2026 and 2030 to demonstrate that African businesses could execute large-scale projects and encourage other investors to participate in developing the continent. The ambition, he stressed, extended beyond the growth of one conglomerate to creating a wider industrial ecosystem capable of supporting businesses, generating employment and retaining more economic value within Africa.

Dangote also challenged African governments to reconsider their approach to industrial protection, warning that allowing cheap imported products to undermine domestic manufacturing could permanently weaken the continent’s productive capacity. He argued that emerging African industries required appropriate policy support to compete against established international manufacturers, particularly where imported products were sold at prices that discouraged investment in local factories.

He, however, distinguished industrial protection from restrictions on trade between African countries, advocating a regional approach that would strengthen manufacturing while preserving the objectives of the African Continental Free Trade Area. He maintained that African economies should trade more freely among themselves while establishing a common framework to protect their industries against unfair external competition.

The industrialist also questioned why Africa continued to experience widespread poverty despite its extensive agricultural land, mineral resources and youthful population.

He cited the continent’s natural endowments as evidence that Africa’s economic challenges were not principally the result of inadequate resources but of insufficient productive investment and industrial capacity. “Why should we remain poor?” he asked.

Dangote expressed confidence that the continent was entering a period in which African governments, entrepreneurs and investors were becoming increasingly determined to develop their own productive capabilities.

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Dangote Calls for Stronger Protection of Local Industries, Unveils Pan-African Energy Distribution Network

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President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has urged African governments to adopt policies that protect domestic industries and accelerate industrialisation.

He made the call in London, during the FT Africa Summit where he vented plans to establish an extensive petroleum distribution network across Africa through strategic investments in pipelines, storage facilities and supply corridors.

According to Dangote, the Group is aggressively expanding its petroleum logistics and distribution infrastructure across East, Central and Southern Africa as part of efforts to strengthen energy security, improve access to refined products and eliminate longstanding supply bottlenecks across the continent.

During a wide-ranging interview with Financial Times Africa Editor, David Pilling, the industrialist disclosed that the Group recently acquired a 25 percent stake in a petroleum products pipeline network in Kenya and is pursuing additional infrastructure projects connecting Djibouti and Ethiopia, alongside investments in Cameroon and Namibia.

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According to him, Africa’s aspiration for economic transformation will remain difficult to achieve without significant investments in infrastructure combined with industrial policies that promote local manufacturing, preserve productive capacity and create sustainable employment opportunities.

“Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent,” Dangote said.

Dangote explained that the expansion forms part of a broader strategy to develop an interconnected African energy supply system capable of linking major refining centres with underserved markets that have historically depended on imported petroleum products and fragmented distribution channels.

“We are very aggressive with that,” he said, in response to questions about the Group’s plans for petroleum depots, pipelines and logistics infrastructure.

He revealed that the acquisition of a 25 per cent stake in Kenya’s petroleum pipeline network was achieved with the support of the Kenyan government and would significantly enhance the movement of refined petroleum products within the East African region.

“Just let me tell you, yesterday, with the support from the President of Kenya, we bought 25 percent of the pipeline network for the distribution of petroleum products,” Dangote disclosed.

The Group is also developing a major petroleum distribution corridor linking Djibouti and Addis Ababa, complete with storage terminals and tank farms designed to facilitate the efficient transportation and storage of refined products.

He added that another strategic project in Cameroon is nearing completion, while Namibia has been identified as a critical hub in the Group’s plan to penetrate Southern African markets.

Dangote described Namibia as a particularly attractive location because of its strategic proximity to the Dangote Petroleum Refinery and Petrochemicals (DPRP) in Lagos.

“From our refinery to Namibia is just about four days of steaming,” he noted.

According to him, refined products from the Lagos refinery will be transported to Namibia and distributed across interconnected markets, including Botswana and South Africa.

The Group is also examining other supply corridors extending into Zimbabwe and Zambia as part of its broader objective of developing a continental network supported by strategically located storage and transportation infrastructure.

The petroleum distribution expansion complements plans to establish another refinery in Lamu, Kenya, with a projected refining capacity of approximately 700,000 barrels per day.

Dangote noted that East Africa’s growing economies, vibrant mining sector and increasing energy demand make the region an attractive destination for refining investments.

He explained that the proposed refinery would source crude oil from multiple markets rather than depend exclusively on supplies from Kenya or Uganda, ensuring greater flexibility and long-term operational sustainability.

According to him, technical assessments identified Lamu as the preferred location because of its deep-water access, marine infrastructure and availability of critical resources required for large-scale refining operations.

Dangote revealed that the investment decision was concluded within four months, although he alleged that vested commercial interests attempted to delay the project through legal proceedings shortly before its public announcement.

Beyond energy infrastructure, Dangote strongly advocated policies aimed at protecting domestic industries from unfair competition, arguing that industrialisation cannot thrive if emerging African manufacturers are exposed to unrestricted imports from more established economies.

He questioned why African countries should be discouraged from supporting local industries when developed economies increasingly deploy similar measures to strengthen domestic manufacturing and employment.

Drawing parallels with recent developments in major global economies, he argued that industrial protection remains a legitimate and widely accepted economic strategy.

“If America is now saying, no, we are going to protect our industries, who are we in Africa not to protect our own industries?” he asked.

Dangote also disclosed that the Group has earmarked approximately $50 billion for investments between 2026 and 2030, describing the programme as part of a broader mission to demonstrate that African businesses can successfully execute transformative industrial projects at scale.

“The legacy we are trying to set up is how do we industrialise our continent?” he said.

According to him, the investment programme is designed not only to expand the Group’s operations but also to inspire other African entrepreneurs and investors to pursue ambitious industrial ventures capable of reshaping the continent’s economic future.

Looking beyond the energy sector, Dangote identified inadequate power supply, weak financial systems and underdeveloped industrial policies as major challenges constraining Africa’s economic growth.

He described electricity as a fundamental requirement for industrialisation, particularly in manufacturing, mining and mineral processing, where reliable power is essential for value addition.

With an estimated 650 million Africans still lacking access to electricity, he stressed that addressing the continent’s energy deficit would unlock significant opportunities for job creation, industrial development and economic diversification.

Questioning why a continent blessed with abundant natural resources, vast arable land and a young population continues to grapple with poverty, Dangote insisted that Africa possesses all the ingredients necessary to become a major industrial powerhouse.

Expressing optimism about the continent’s trajectory, he maintained that Africa’s industrial awakening has already begun.

“The journey has started,” Dangote declared. “But now we’re awake, and we will make it happen.”

 

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FCT Motorists, Commuters Divided over NNPC Petrol Discount

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Some motorists and commuters in FCT have expressed mixed reactions to the N66-per-litre petrol discount offered by the Nigerian National Petroleum Company Ltd. as the Oct. 31 deadline approaches.

Speaking with the News Agency of Nigeria on Thursday, some of them commended the initiative while others expressed reservations about its impact.

NAN reports that the Federal Government announced a 30-day discount on petrol sold by the NNPC Ltd., with public transport operators to receive priority under the arrangement.

The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, said the arrangement was not a return to petrol subsidy.

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The minister said the government was also negotiating a ceiling of N1, 350 per litre on the ex-gantry or landing cost of petrol in an effort to reduce sharp fluctuations in pump prices.

NAN reports that Dangote Petroleum Refinery cut its gantry petrol price by N25 per litre from N1,350 to N1,325.

Mr Abubakar Saidu, a motorist who resides in Wuse, commended the Federal Government for the discount offered at NNPC Ltd. retail outlets.

Saidu stated that he purchased petrol through the app but sometimes had to wait in long queues before accessing the product.

He said that many Nigerians were unable to benefit from the discount due to network challenges.

“I downloaded the app and followed the procedure before buying the petrol at N1,339 per litre,” he said.

Another commuter who resides at Nyanya, Mr Obi Anyawu, said the intervention had not translated into lower transport fares.

Anyawu said the intervention had failed to ease the burden of high transportation costs on Nigerians.

According to him, commuters are still struggling to afford daily transportation to work.

“The transportation fare keeps increasing, and there has not been any difference,” he said.

Mrs Stephanie Okoro, a commuter who resides at Karu, said commuters were still struggling to afford daily transportation to work.

“I have not benefited from the intervention, and I have not seen any positive impact it has, even among the transporters.

“Commuters continue to face difficulties accessing affordable transportation, with many stranded at bus stops due to high fares,” she said.

Mr Jide Oyetola, a motorist who resides in Bwari, called for a comprehensive review of the intervention and the introduction of additional measures to alleviate the hardship faced by Nigerians.

Oyetola urged the government to explore alternative measures to reduce transportation costs and ease the economic burden on citizens.

“My secretary recently complained that her salary can no longer cover her transportation expenses.

“She said she might not be able to come to work five days a week because her salary can no longer cover her transportation costs.

“Even if she waits for a cheaper bus every morning, the situation will still not be manageable. You cannot blame her. I am sure she is not alone in that plight,” he said.

He said it forced her to consider reducing the number of days she would report to work.

Mrs Nonye Obanla, a commuter who resides at Dutse, urged the government to explore alternative measures to reduce transportation costs and ease the economic burden on citizens.

Courtesy – NAN

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