In 2010 football was the name of the game on the African continent and history in the making with the first FIFA Football World Cup held in South Africa.

Football has become a “world religion” bringing nations together on the pitch and off the pitch. Who would have thought that alone supermarket giant Sainsbury’s would sell an African instrument, “Vuvuzela”, once used to summon distant villagers to attend community gatherings, over 50.000 times in the UK.

Africa is not only made out of South Africa and so football history continued to be written also in Eritrea, a small African state on the red sea, where the young nation hosted the CECAFA under-20 tournament. The CECAFA theme was Development and Friendship and took place in Eritrea’s capital Asmara from the August 14 to August 28.

Teams from nine African nations, including Eritrea, received a warm welcome by  Mr Tesfay Gebreyesas president of the Eritrean National Football Federation. Eritrea, the hosting country delivered a successful cup with organizers squeezing the best out of resources available, it proved again Eritrea can make it even during difficult times.

President of CECAFA Mr Leodegar Tenga praised the Government, Football Federation and the people of Eritrea for their hospitality. He continued on by saying

“This tournament will not only stimulate the development of football in this region, but it will also renovate social, economic development of our people and foster friendship”.

The tournament was overall packed and tickets for matches sold out, hotels were full with African nation’s contestants and streets were decorated with banners all over the place.

Eritrean fans were on the streets chanting “Eritrea, Eritrea Eritrea” full of excitement and roads packed with cars sounding there horn. Although, Eritrea came second behind cup winner Uganda and 4 players of the national team of Zanzibar had to be disqualified because of overage the cup was a major achievement for the team and Eritrea.

PTA BANK

The Eastern and Southern Africa Development Bank (PTA Bank), a financial arm of COMESA, has continued making profits. The President of the Bank, Dr. Michael Gondwe revealed this at the 26th Annual Meeting of the PTA Bank held in Mahe, Seychelles, on July 23, 2010. The bank he noted, made a profit of over USD18 million in 2009 up from USD12.5 million in 2008.

While officially opening the meeting, His Excellency the President of the Republic of Seychelles, James Michel commended the Bank for its’ good performance despite the harsh operating conditions. The Head of State added that the Bank’s support for Seychelles, especially in the petroleum sector, was greatly appreciated by the country.

The President called on Member States to enhance support to the Bank to enable it continue being supportive of business growth. “It is important for us to enhance capacity of regional institutions such as the PTA Bank if they are to continue playing a catalytic growth in our economies,” said the Head of State.

During the meeting, the Vice President and Minister of Finance for the Republic of Seychelles, Hon. Danny Faure was elected the new chairman of the PTA Bank Board of Governors for the next financial year. Hon. Faure takes over the Chairmanship of the Bank’s topmost policy organ from Hon. Sufian Ahmed, the Minister of Finance of the Federal Democratic Republic of Ethiopia.

Speaking at the occasion, the Hon. Faure called on his fellow Governors to continue contributing to the Bank’s programme “as we build a strong institution that will make a positive impact on our development agenda.”

Governors, comprised of shareholder representatives, deliberated on the business of the Bank. Top among them was adopting the Bank’s 2009 Annual Report. The Governors also adopted resolutions giving policy directions to the Board and management of the Bank. A new steering committee composed of Zambia, Sudan and the African Development Bank (ADB) was elected by the Governors.

The shareholders of the Bank are: The African Development Bank, Burundi, The People’s Republic of China, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

Chalice Gold Mines Limited (ASX:CHN) advises that it has increased its investment in unlisted United Kingdom based London Africa Limited (“London Africa”) from an 11.8% interest to a 20% interest.

Chalice has subscribed for a further 1.4 million shares in London Africa at 12.5p per share for £175,000 (~A$304,000). The funds will be applied to a continuing work program currently being undertaken and managed by London Africa.

The London Africa prospecting licences cover 1,562 square kilometres in the prospective Akordat-Orata area in Eritrea and are contiguous to Chalice’s Zara Gold Project.

By Charles Wyatt (Minesite) – Not very often we start a mining article with a combined geography/history lesson, but in this case the only way to make sense of the recent moves by a number of mining companies into Eritrea is to understand exactly where the country is, what surrounds it, and what has been going on there.

The region is described loosely as the Horn of Africa but a close look at a map shows that the real Horn juts out south of Djibouti into the Gulf of Aden and largely consists of Somalia, with Ethiopia to its west and north. Djibouti has coast along the Red Sea and Somalia has a massive coastline in the Gulf of Aden as well as the Indian Ocean. That is where the pirates lie in wait for their victims, remember?

Ethiopia, however, has no coastline at all and that is why it has for generations made a pest of itself to Eritrea which cuts it off from the Red Sea, running all the way up from Djibouti to Sudan, with Egypt a bit further to the north.

Before the Second World War Eritrea was an Italian colony, but was taken over by the British in 1941. Once the war was over, in 1952, the United Nations decided to establish it as an autonomous entity federated with Ethiopia as a compromise between Ethiopian claims for sovereignty and Eritrean aspirations for independence. Ten years later the Ethiopians tried to annex it, triggering a war which lasted for more than 30 years. The result was victory for Eritrea which declared independence in 1993, leaving Ethiopia landlocked. The two countries hardly became good neighbours, with the issues of Ethiopian access to the Eritrean ports of Massawa and Assab, and unequal trade terms, souring relations. In 1998 there was another flare-up that lasted a couple of years and again it was Ethiopia trying to get access to the Red Sea.

Since 2000 there has been an uneasy peace, with Eritrea trying to rebuild its economy after a devastating period of war. It sits, however, in a difficult area and every time there were problems in Sudan, Djibouti or Somalia near its border, Eritrea was held responsible by the UN. This culminated in the adoption of a package of sanctions against Eritrea last December.

What has to be seen in the background of all this is the dark art of US diplomacy. The US wanted its favoured candidate Ethiopia to have access to the Red Sea and found Eritrea much too independent for its liking. Eritrea is fighting its corner to get the sanctions lifted.

In the meantime, as Ambassador Tesfamicael Gerahtu pointed out in London yesterday, the country is straining every muscle to become self-dependent in food production and improve education and health services.

Anyone arriving in the capital of Asmara today could easily think the plane had been re-routed to Italy, according to Rupert Baring of gold explorer London Africa. There are wide streets, Italianate architecture and a coffee culture, with plentiful cafes.

The people he describes as proud, independent and honest and he has never seen any sign of the corruption endemic in so many parts of Africa. These are just some of the reasons why mining companies, big and small, are taking a serious look at Eritrea. The biggest reason of all, however, is the fact that the country is unexplored in modern times and underneath Eritrea, as well as under the other countries in the Horn of Africa, lies the Arabian-Nubian Shield which is an exposure of pre-Cambrian rocks on the flanks of the Red Sea. The Shield also crosses over into Jordan, Saudi Arabia, and Yemen. In the north it’s exposed as part of the Sahara Desert and Arabian Desert, and in the south in the Ethiopian Highlands.

The Arabian-Nubian Sheld was the site of some of man’s earliest geologic efforts, principally the Egyptians who extracted gold from the rocks of Egypt and north east Sudan. New gold discoveries have been made in Sudan, Eritrea, and Saudi Arabia. Last week Tim Goyder, executive chairman of the Australian gold explorer Chalice Gold Mines, was passing through London and he laid out a map which showed that his company’s Zara and Koka projects lie on the same pre-Cambrian shield as Centamin’s Sukari gold mine in the Western Desert of Egypt. For reasons of history and politics, the amount of modern gold exploration that has taken place in Egypt – Centamin apart – is modest, but none at all has taken place in Eritrea until recently. Someone has to be the original pioneer, and it appears to be the Canadian company Nevsun in this particular case. Nevsun is bringing its high grade gold, copper and zinc Bisha deposit into production later this year.

Tookie Angus, chairman of Nevsun, confirms that the Bisha project has received continuous support from the Eritrean government, which granted the mining licence in January 2008. Bisha will be the first modern-day mine in the country, with production slated to return over a million ounces of gold, 9.4 million ounces of silver, 734 million pounds of copper and more than one billion pounds of zinc during its life. The really interesting aspect, however, is the deal between Nevsun and the government of Eritrea. Under existing Eritrean mining legislation, the State of Eritrea has an automatic right to a free carried 10 per cent interest, but under an agreement with Nevsun it also has an additional 30 per cent paid participating interest. This 30 per cent contributing interest was agreed upon in October 2007, with a provisional US$25million payment made to Nevsun. The remaining balance to be paid to Nevsun will be determined by an independent valuator, and will be based on the net present value of 30 per cent of the project, as evaluated upon the first shipment of gold from the mine.

Not for Eritrea the black empowerment requirements of South Africa which so often end up with a 26 per cent stake in mining companies being effectively stolen by entities which have no intention of paying their way as partners. The Nevsun deal is straightforward stuff, with the Eritrean government setting out to get a significant stake in a project which should ensure it a satisfactory return. And it goes further than this. The Ministry of Energy and Mines is helping to organise a regional Geo-Conference in Eritrea in September which will showcase the potential for mining. It is especially interesting that Centamin has been invited from Egypt, La Mancha with its Hassai VMS mine, from Sudan, and Citadel which has the Jabel Sayed copper gold deposit, from Saudi Arabia. The whole region underlain by the Arabian-Nubian Shield is being represented, and little Eritrea is taking the lead. And that’s hardly what the UN envisaged when it put in the sanctions at the behest of the US.

There are now getting on for 20 mining companies active in the country. The Chinese are there, the Koreans are there, and now some of the big boys are following the juniors in. The country has a very sensible mining code, modelled on the Australian one. Antofagasta, one of the world’s largest copper producers is in a joint venture with the Canadian company Sunridge Gold on the Adi Rassi copper gold project within its Asmara project, and Anglo American is involved in the Thani–Ashanti Alliance. Newmont is also said to be taking a close look, which is another reason for the UN to reconsider its decision on sanctions. The Amir of Qatar not only owns the Asmara Place Hotel, where Brits and locals alike watch English football in the Green Bar, but is also building a summer home at Massawa overlooking the Red Sea. Eritrea, with a history that has precluded any exploration in modern times, is the new frontier and everyone is taking a look. The reaction from mining companies and fund managers alike has been universally positive, so this is likely to build up into a big story even if it is one that will not hit the headlines in the States.

Letters to the Editor of Stars and Stripes, Tuesday, May 10, 2010

In the April 29 Travel section (European edition), the article titled “Lots to sample in South Africa” was accompanied by a map of Africa that is closely accurate — except for one flaw: It fails to depict Eritrea.

Eritrea fought for and gained independence and international recognition in 1993.

I have a soldier from Eritrea whose family has been fighting Ethiopia for their independence since 1960. Eritrean men have died for their independence just as our fathers have fought for our independence in America.

You have carelessly depicted Africa by failing to recognize Eritrea as a separate state, and disrespected the men who have died for their freedom. Please correct your mistake and apologize for disrespecting the fallen heroes of Eritrea.

Staff Sgt. Alan Speck

Fort Lewis, Wash.

Source: Stars and Stripes

International Monetary and Financial Committee Twenty First Meeting April 24, 2010.

Statement by Honorable Olusegun O. Aganga Minister of Finance of the Federal Republic of Nigeria. On behalf of Angola, Botswana, Burundi, Eritrea, Ethiopia, The Gambia, Kenya,Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe

A. The global economic and financial markets

Global economic developments

• We are encouraged by the global economic recovery, which seems to be better than was earlier envisaged and is being well supported by accommodative macroeconomic policies. However, the pick-up in activity has been uneven across countries and regions. Recovery in the major advanced economies is sluggish compared with that in the emerging and developing economies. While a variety of risks have receded, the growth outlook remains uncertain and there continue to be some near-term risks. Public debt in advanced economies cannot rise much farther and already limits the scope for policy maneuver. Further, heightened concerns about sovereign risks, though not so widespread in major advanced economies, are dampening investor confidence and threatening the resurgence of financial stability. Although a stimulus-led recovery is under way in the United Sates, private demand remains subdued. In the euro area, recovery is lagging. A number of countries in Eastern Europe and the Commonwealth of Independent States are also lagging. Among emerging and developing economies, Asia is leading the recovery and is, as a result, attracting large capital inflows. Sovereign risks notwithstanding, we consider that accommodative policies in the advanced countries should be continued until recovery is clearly taking hold.

• Strong fundamentals and policies had enabled sub-Saharan Africa to weather the crisis well, and recovery from the 2009 slowdown is expected to be faster than from past global downturns. Although some middle-income and oil-exporting countries were hit hard by the collapse in export and commodity markets, the region managed to avoid contraction. Shocks that hit the region mainly emanated from the trade channel because the region is now more open to trade. The outlook, however, is not clear due to uneven global recovery and resurgence of high energy prices. While higher than expected energy prices would benefit oil exporters, it would trigger another round of dampened growth and higher inflation in the region’s oil importers. In addition, though bilateral aid held up well during the global downturn, the outlook for official aid as a whole is mixed because of the large output declines, possibly protracted recoveries, and heightened fiscal pressures in major donor countries. Thus, though recovery in the region seems to be relatively robust, we consider that African countries should maintain supportive macroeconomic policies in the near term to weather the tail risks of sluggish global recovery and the resurgence in energy prices

Financial market developments

• While the risks have eased as the recovery gained traction, the global economy has not yet stabilized. Vulnerabilities in the financial sector now emanate from concerns about the sustainability of sovereign balance sheets. It is feared that in many advanced economies longer-run solvency concerns could translate into short-term strains in funding markets and intensify the funding challenges facing banks. Slow progress in repair of bank balance sheets and an increase in public borrowing needs may further constrain credit supply and prolong the recovery. Pressing ahead with financial sector reforms to make the global financial system more resilient is essential. Further, it will be important to strike the right balance between protecting the stability of the financial system and ensuring that it is innovative and efficient. Regardless of how regulation is structured, regulators’ toolkits will likely need to be augmented to mitigate systemic risks.

B. Challenges for low-income-countries (LICs)

• We reaffirm that the Fund should remain a quota-based institution, and finance the bulk of its lending from its quota resources. Members’ quotas are relevant for access to Fund resources, including general SDR allocations, and for dividend distributions. The reform of quota shares is therefore of critical importance to the LICs since the IMF reformed its financing instruments in 2009. A core objective of the LICs is also to have more voice and representation at all levels of the Fund.

Access to Fund financing

• We appreciate the relentless efforts of the Fund’s management, staff and the Executive Board to activate the new lending architecture for the LICs under the Poverty Reduction Growth Trust created in July 2009. We especially thank the lenders to the trust for their consent to the new framework, which made it possible for the three financing instruments—the Extended Credit Facility (ECF), the Stand-by Credit Facility (SCF), and the Rapid Credit Facility ( RCF)—to become operational this year. These instruments— together with the enhanced access levels—will go a long way in meeting the financing needs of the LICs. We urge the Fund and its lenders to further enhance the concessional lending facilities based on the core principles of the Fund.

Crisis prevention facility

• We acknowledge that our first line of defense is to increase our resilience through improved policies, institutions and, above all, fundamentals. We have done most of these and are committed to persevere with additional measures going forward.

• That record notwithstanding, we are aware of the efforts in response to the lessons of the crisis to develop crisis-prevention financing instruments for a cross-section of Fund members. While we fully support these efforts, with a caveat for streamlining the number of instruments, we strongly urge that similar crisis-prevention instruments be tailored to the LICs and lower- middle-income countries. A Flexible Credit Line (FCL)-like financing instrument would be appropriate for such countries that have strong fundamentals and policies. We thus support the proposal for broadening qualification for the FCL to meet this objective, while keeping commitment fees and charges at a reduced level.

C. Quotas, size, and the Fund financing role

• We wish to recall that, on quotas, the 2008 reform package resulted in significant losses for the LICs as a group and for a very large number of individual countries. Once this package has been fully ratified, the level of LIC access to Fund resources will significantly diminish. Therefore, the IMFC’s guide for protecting the quota shares of the LICs from further declines should remain a target outcome of the current quota reform.

Quota reform and size of the Fund

• We reaffirm our welcome to the commitment of the G20 leaders and the IMFC to a fasttrack new round of quota and voice reform. It offers IMF members the opportunity to make prompt progress on this critical governance issue and to quickly address legitimacy and governance deficits. We realize fully that achieving these objectives is a daunting task, given the intensity of engagement required and the need for a spirit of compromise from all parties. Nonetheless, the lessons learned from the current crisis and the measures taken to enhance the effectiveness and legitimacy of the Fund in responding to member financing needs, give us a sound basis to use the 14th review of quotas to make a major step forward.

• Mindful of our efforts to make the IMFC a platform for effective Ministerial engagement, we urge the members of the IMFC to rise to the challenge and guide the process further in three key areas: size of quota increase; size of shift in the quota realignment and the beneficiaries of this shift; and the level of quota protection for the LICs. We believe there is political will to achieve an ambitious outcome: the G20 leaders’ commitments and the IMFC communiqué attest to this. To that end, and to achieve the twin objectives of keeping the Fund a quota-based institution while effectively meeting members financing needs in the post-crisis economy, we are of the view that the 14th review should entail a substantial quota increase.

• Should the time factor prevent fully addressing the deficiencies in the quota formula, we would support the proposal advanced by some members that an aggregate shift in quota shares on the order of 5–7 percentage points is necessary both to enable the Fund to enhance its effectiveness as a quota-based institution and to meaningfully rebalance the distribution of quota shares. Quota reform should therefore target at least a 5 percent shift to emerging markets and developing countries (EMDCs) and protection of the quota shares of the LICs members of the IMF at the levels of the 2008 package. Eventual realignment of the largest quotas would also be in concert with the objectives of the quota reform.

• We see merit in the case for a quota increase between 130 to 200 percent to meet these objectives and also to restore quotas relative to averages across traditional global indicators, such as trade and capital inflows to EMDCs. We would support an increase in the upper range and invite the IMFC members to support this level of quota increase. Such a quota increase together with the recently approved expanded new arrangement to borrow (NAB) would give the Fund a commitment capacity of about US$1 trillion. We share the view that this level of commitment would enable the Fund to support members and cope with the additional resource implications of an eventual enlarged Fund mandate.

Future financing role

• The crisis has offered valuable lessons that can be used to strengthen the global financial safety net. There is certainly merit in countries’ desire to increase their resilience to shocks as the first line of defense. We are committed to pursue this objective, and thank the Fund and our development partners for their understanding and support.

• As part of the second line of defense, we are aware that proposals on the future financing role of the Fund include the present crisis-prevention instruments, especially the modernized FCL, and new instruments, such as the Precautionary Credit Line (PCL), the Multi-country Swap Line (MSL), and the co-financing of the Reserve Pooling Arrangements (RPAs). As we have indicated, there is clearly need for crisis-prevention financing instruments and enhancement of concessional instruments for LICs. 15. While the Fund’s proposals for crisis-prevention financing instruments are in the right direction, we urge that more effort be given to modernizing existing instruments, and restrict the new instruments to those that are less stigma-intensive. We fully endorse the caution advanced by other members that all financing instruments, old and new, should be streamlined in line with earlier institutional decisions. This also underlines the need to rationalize the financing instruments. Further, we emphasize the need for greater international cooperation.

D. Governance framework

• We are encouraged by the progress made thus far on governance reform, and would urge the IMFC and Executive Board to address the remaining issues expeditiously, preferably before the next Annual Meetings. We reiterate that governance reform should proceed in parallel with the reform on quotas to enhance legitimacy of the entire process.

• IMFC reform process: We fully support the proposals for strengthening the IMFC as a vehicle for enhancing Ministerial involvement. To that end, we urge that the IMFC meetings and deliberations be adjusted to meet this objective. Strengthening the role of the IMFC as a decision-making body would demand clear delineation of the separate responsibilities of the IMFC, the Executive Board, and management.

• Selection of Fund management: We strongly support the proposals for a transparent, non-region-specific process for selecting the Fund’s management. However, we share the doubts about the efficacy of these proposals unless there is a commitment to quota realignment and clear understandings by all without any “unwritten” rules.

• Functioning of the Executive Board: We support the objective of making the Executive Board stronger while maintaining its current size. We look forward to a decision that will enable the sub-Saharan Africa region to have parity in the representation at the BWIs following the decision of the World Bank to establish a third chair for this region.

E. Strengthening Fund surveillance and mandate

• Surveillance needs to evolve with the global economy. Given the changes in the global economic landscape over the past few years, modernizing surveillance and making financial sector issues core to it have become necessary and inevitable. The importance of evenhandedness in the conduct of Fund surveillance, especially for advanced economies, cannot be overemphasized. Because it is an institution seeking to promote global stability, it is in the best interests of the Fund to strive to overcome the fundamental problem that it seems to have least value and traction with those members that are systemically significant for global stability. The financial sector was at the epicenter of the recent global economic and financial crises. It is therefore of utmost importance to bring financial sector issues and policies to the core of the Fund’s surveillance framework.

• Improving multilateral surveillance and outward spillovers would promote global stability and improve the traction of Fund surveillance. We also believe it would be effective to use outward spillovers as a bridge between multilateral and bilateral surveillance. However, even with greater attention on multilateral surveillance and outward spillovers, bilateral surveillance should continue to remain a pillar of the Fund’s activities. Also, we urge that the ambition to widen the scope of surveillance should be matched by expansion of the Fund’s resources to deliver on its core mandate.

F. Early warning exercise (EWE)

• A key lesson the world has learned from the current crisis is the need for better analysis of risks to the global economy. The EWE is an important toolkit for providing an integrated perspective on global risks and vulnerabilities. The collaboration of the Fund and the Financial Stability Board in both operational and technical issues is commendable. The progress made so far with the EWE should now be accompanied by concrete steps to explore how best to communicate the results of the exercise to the membership and the public at large.

• It will be crucial that EWE results find their way into the Fund’s policy advice in both bilateral and multilateral surveillance. As is often pointed out, identifying vulnerabilities is relatively easy—what is harder is the policy action that is crucial to prevent a risk from becoming a reality. Each EWE round therefore needs to assess policy actions taken by authorities in response to previous warnings.

Nevsun Mine

(The Northern Miner) – Nevsun pushes towards production in Eritrea Vancouver – Nevsun Resources (NSU-T) is now more than halfway through building Eritrea’s first mine, on schedule to commission the gold silver-copper-zinc operation before the end of the year.

The company began prestrip mining in March at Bisha, which sits 250 km west of the capital city Asmara. The prestrip is expected to take six month, as a hill adjacent to the deposit must be partially removed to make room for the open pit. Nevsun expects to start stockpiling ore early in the third quarter.

Installation of the semi-autogenous grinding (SAG) and ball mills should be finished by the middle of the year, structural steelwork is well advanced, and workers are laying down the impermeable liner of the tailings facility.

The Bisha mine will tap into a layered volcanogenic massive sulphide (VMS) deposit. The top layer, a goldrich gossan, contains 4 million proven and probable tonnes grading 7.99 grams gold per tonne and 32.85 grams silver per tonne. Those reserves will feed the 5,000-tonne-per-day mill for 2.5 years.

Next, the mill will churn through a 6.4-million tonne supergene layer grading 4.4% copper, 0.83 gram gold, and 35.98 grams silver for three years. Finally, the mine will reach the primary sulphide portion of the deposit, which currently contains 9.7 million proven and probable tonnes grading 7.21% zinc, 1.14% copper, 0.76 gram gold, and 54 grams silver.

The current mine plan only covers ten years of operation but Nevsun is confident Bisha will be active for much longer than that.

First, the pit was designed using very conservative metal prices, including US$400 per oz. gold. With prices currently more than double those used to build the pit shell, Nevsun is redesigning the pit to access the deeper, zinc-rich zone at the south end.

An area known as the Hangingwall Copper zone will likely add resources to the expanded pit, reducing the increase in strip ratio.

And Nevsun has completed some infill drilling at Harena, a satellite zone 9.5 km southwest of the Bisha deposit, and further work is planned to assess its potential for additional mill feed. In particular, the company is probing Harena’s southwest strike extension; the gravity and electromagnetic signatures that revealed mineralization at Harena continue to the southwest but have not yet been fully drill-tested. Nevsun also plans to drill other VMS targets on the Bisha property.

With Bisha’s cost requirements staying under control – in February Nevsun revised the original capex projection of US$250 up by just 4% to US$260 – the company has managed to retain a cash position of $29 million. And Nevsun expects Bisha to start producing positive cash flow in the first quarter of 2011.

Using metal prices of US$900 per oz. gold, US$2.25 per lb. copper, US75¢ per lb. zinc, and US$12 per oz. silver, Bisha should generate a 45% internal rate of return, enabling payback of development costs in 1.6 years.

Nevsun’s share price has spent April ranging between $2.85 and $3.20. The company has a 52-week share price range of $1.21 to $3.66 and has 193 million shares outstanding.

The World Bank released its World Development Indicators 2010 publication. The millennium development goal of reducing the under-five mortality rate by two-thirds between 1990 and 2015 is one of the goals to reduce world wide poverty.

Since 1990 deaths of children under age 5 have been declining and in 2006, for the first time, the number of children who died before their fifth birthday fell below 10 million. In developing countries child mortality declined about 25 percent, from 101 per 1,000 in 1990 to 73 in 2008.

There are still many countries in Sub Saharan Africa showing little progress in fighting child mortality — one child in seven dies before the fifth birthday according to the report. The odds are slightly better in South Asia, where one child in thirteen dies before the fifth birthday.

These two regions remain overriding priorities for child survival interventions such as immunizations, exclusive breastfeeding, and insecticide-treated nets.

Thirty-nine countries have achieved or are now on track to achieve the target of a two-thirds reduction in under-five mortality rates. Two of the poorest countries in Sub-Saharan Africa, Eritrea and Malawi, have made remarkable progress.

Eritrea has reduced the under-five years mortality rate per 1000 from 150 in 1990 to 58 in 2008. Successful countries now account for half the population of low- and middle-income economies.

The latest World Development Indicators publication also includes a new data query format with the option to organize and extract data by topic or country. Eritrea Country Data New Format.

The Archbishop of Canterbury has backed calls for Africa to be “blanketed” with bed nets as part of the battle to eradicate malaria.

Dr Rowan Williams said in spite of being preventable and treatable, the blood disease – caused by a parasite transmitted by the mosquito – was still killing nearly a million people every year.

In a message recorded to mark World Malaria Day on Sunday, Dr Williams called on the world to put its “energy and imagination” behind efforts to achieve the goal of getting rid of malaria deaths by 2015.

“One of the things that I was taught when I was growing up was that among the greatest achievements of modern science was the identification of where malaria came from, the great steps that have been made to eradicate malaria from the world,” he said.

“That was many years ago and in the intervening years, tragically the challenge of malaria has grown worse not better.

“Half the world’s population is at risk from malaria, about a million people die because of it every year and not surprisingly the cost is highest among those most vulnerable and the youngest.”

The message was recorded by Dr Williams to support the global coalition United Against Malaria.

Campaigners are working towards a United Nations target of providing bed nets to everyone at risk by the end of this year with the aim of eradicating malaria deaths by 2015.

Ethiopia, Rwanda and Eritrea have been highlighted for their success in reducing malaria deaths by more than a half in just a few years through the use of bed nets, medicines and spraying.

Malaria sufferers experience flu-like symptoms, such as fever, headache and vomiting. Without treatment, the disease can result in permanent brain damage and death. Source: (The Press Association)

U.S. Department of State

Johnnie Carson

Assistant Secretary, Bureau of African Affairs

Reimagine, Redefine, Reinvent: A New Paradigm for African Leadership

Harvard University Africa Focus Program

Washington, DC April 5, 2010

It is a real pleasure for me to join you today to launch the second annual Africa Focus at Harvard University. Thank you Dr. Elkins for that kind introduction, and thank you to the organizers of this year’s Africa Focus for inviting me to speak about a topic that I have devoted much of my professional life to – strengthening the United States relationship with Africa.

As many of you know, I have spent much of my career working in and on Africa. I started my career as a Peace Corps volunteer in Tanzania and joined the Foreign Service right after that. I have had the privilege of serving as U.S. Ambassador in Kenya, Zimbabwe, and Uganda and I am honored to be serving as Assistant Secretary of State for African Affairs in this administration.

President Obama has a strong interest in Africa and has prioritized Africa among our top foreign policy concerns. This has been evident throughout his first year in office.

The President’s visit to Ghana last July, the earliest visit made by a U.S. president to the continent, underscores Africa’s importance to the U.S. Last September, at the UN General Assembly, the President hosted a lunch with 26 African heads of state. He has also met in the oval office with President Kikwete of Tanzania, President Khama of Botswana, and Prime Minister Morgan Tsvangarai. And the President invited dozens of people to the White House to see him give a Zimbabwean women’s group the Robert H. Kennedy Prize for Political Courage.

All of the President’s senior foreign policy advisors have followed his lead—many of them traveling to Africa as well.

The U.S. Permanent Representative to the United Nations — my former boss and close colleague Ambassador Susan Rice — visited five African countries last June, including Liberia and Rwanda. Deputy Secretary of State Jack Lew traveled to Ethiopia and Tanzania in June 2009.

Last August, Secretary Clinton and I embarked on an 11-day, seven-country trip across the continent. And in January Under Secretary of State for Democracy and Global Affairs Maria Otero headed the U.S. delegation to the African Union Summit in Addis Ababa, where she met with dozens of leaders and discussed a range of issues including democracy and governance, climate change, and food security.

President Obama has said that the United States views Africa as our partner and as a partner of the international community. While Africa has very serious and well-known challenges to confront, the President and Secretary Clinton are confident that Africa and Africans will rise to meet and overcome these challenges.

Last June when the President was in Ghana, he said, “We believe in Africa’s potential and promise. We remain committed to Africa’s future. We will be strong partners with the African people.” Africa is essential to our interconnected world, and our alliance with one another must be rooted in mutual respect and accountability.

I echo the President’s sentiment that U.S. policy must start from the simple premise that Africa’s future is up to Africans.

The Obama Administration is committed to a positive and forward looking policy in Africa.

It is committed to substantial increases in foreign assistance for Africa, but we know that additional assistance will not automatically produce success across the continent. Instead, success will be defined by how well we work together as partners to build Africa’s capacity for long-term change and ultimately the elimination of the continued need for such assistance. As Africa’s partner, the United States is ready to contribute to Africa’s growth and stabilization, but ultimately, African leaders and countries must take control of their futures.

Just like the United States is important to Africa, Africa is important to the United States. The history and heritage of this country is directly linked to Africa; President Obama’s direct family ties to the continent are a testimony to this.

But the significance and relevance of Africa reaches far beyond ethnicity and national origin. It is based on our fundamental interests in promoting democratic institutions and good governance, peace and stability, and sustained economic growth across Sub Saharan Africa. We think these issues are also fundamental to Africa’s future progress and success. Therefore, as we advance our interests, our policy will be based on five overarching principles.

FIRST

We will work with African governments, the international community, and civil society to strengthen democratic institutions and protect the democratic gains made in recent years in many African countries.

A key element in Africa’s transformation is sustained commitment to democracy, rule of law, and constitutional norms. Africa has made significant progress in this area. Botswana, Ghana, Tanzania, Mauritius, and South Africa are a few examples of countries showing that commitment. But progress in this area must be more widespread across Africa.

Some scholars and political analysts are saying that democracy in Africa has reached a plateau, and that we may be witnessing the beginning of a democratic recession. They point to flawed presidential elections in places like Kenya, Ethiopia and Zimbabwe; the attempts by leaders in Niger, Uganda, and Cameroon to extend their terms of office; and the re-emergence of military interventionism in Guinea-Conakry, Madagascar, and just last week in Niger.

Moreover, democracy remains fragile or tenuous in large states like the Democratic Republic of the Congo, Sudan, and arguably Africa’s most important country, Nigeria.

Nigeria continues to experience political tensions caused by the prolonged illness of President Yar’Adua. The United States welcomes President Yar’Adua’s recent return to Nigeria. However, we remain concerned that there may be some in Nigeria who are putting their personal ambitions above the health of the President and more importantly ahead of the political stability and political health of the country.

Nigeria is simply too important to Africa and too important to the U.S. and the international community for us not to be concerned and engaged. Widespread instability in Nigeria could have a tsunami-like ripple effect across West Africa and the global community.

During my recent visit to Nigeria, I was encouraged by the steps Nigeria’s elected officials at the national and state level to elevate Goodluck Jonathan to Acting President. Although political progress has been made, Nigeria still faces significant political challenges and uncertainty in the run-up to the next presidential and national assembly elections in 2011.

It is important that Nigeria improve its electoral system, reinvigorate its economy resolve the conflicts in the Niger Delta and end communal violence and impunity in Plateau State. It is also critically important that all of Nigeria’s leaders act responsibly and reaffirm their commitment to good governance, stability and democracy by choosing constitutional rule.

Nigeria and other African countries need civilian governments that deliver services to their people, independent judiciaries that respect and enforce the rule of law, professional security forces that respect human rights, strong and effective legislative institutions, a free and responsible press, and a dynamic civil society. All of these things are needed for a stable and prosperous Africa. All of these things are needed to secure Africa’s future.

The U.S. will continue to work with Africans, as partners, to build stronger democratic institutions and to advance democracy in Africa. It is a major priority.

SECOND

Africa’s future success and global importance are dependent on its continued economic progress. Working alongside African countries to promote and advance sustained economic development and growth is another Obama administration priority. Africa has made measurable inroads to increase prosperity. Countries like Mauritius, Ghana, Rwanda, Botswana, Tanzania, Uganda, and Cape Verde have made significant economic strides. Yet Africa remains the poorest and most vulnerable continent on the globe.

To help turn this situation around, we must work to revitalize Africa’s agricultural sector, which employs more than 70 percent of Africans directly or indirectly.

The U.S. is committed to supporting a new Global Hunger and Food Security Initiative, focusing predominantly on reducing hunger, poverty and under-nutrition.

This $3.5 billion Food Security Initiative will also supply new methods and technologies to African farmers. The initiative was developed to help enhance Africa’s ability to meet its food needs and reduce its reliance on imported food commodities. It will also enable African states to further develop their agricultural industries, and by doing so it can spur economic growth across the continent.

Now is the time for a Green Revolution in African agriculture.

Through innovative approaches and nontraditional technology, we can improve the lives of millions of people across the continent.

Malawi was elected to the African Union chairmanship in January. It has made great progress in the field of agriculture and has indicated that it plans to use its chairmanship of the AU to advance agriculture in Africa. Countries that can feed themselves are stronger, more stable, and better able to weather economic downturns.

The U.S. also wants to strengthen its trading relationship with Africa. We already have strong ties in energy, textiles, and transportation equipment. But we can and should do more. The Obama administration is committed to working with our African partners to maximize the opportunities created by our trade preference programs like AGOA. And we hope more African nations will take advantage of AGOA.

We also continue to explore ways to promote African private sector growth and investment, especially for small and medium-sized businesses.

In the midst of these efforts, we cannot forget the critical role African women play as producers and agricultural traders – they must take part in this economic growth. We must ensure that African women are an equal part of Africa’s economic future and success.

THIRD

Historically the United States has focused on public health and health-related issues in Africa. We are committed to continuing that focus. We will work side-by-side with African governments and civil society to ensure that quality treatment, prevention, and care are easily accessible to communities throughout Africa.

From HIV/AIDS to malaria, Africans endure and suffer a multitude of health pandemics that weaken countries on many fronts. Sick men and women cannot work and contribute to the economy. They cannot serve in the armed forces or police and they cannot provide for the security of their counties.

To help solve the health crisis that is occurring throughout the entire continent, Africans as well as the international community must invest in public health systems, in training more medical professionals, and must ensure that there are good jobs and well-paying opportunities in their own countries for doctors and nurses once they are trained. We must also focus on maternal and infant health care, which are closely related to several Millennium Development Goals.

The Obama Administration will continue the PEPFAR Program and the Bush administration’s fight against HIV/AIDS. In addition to combating HIV/AIDS, malaria, TB, and polio, the Obama Administration has pledged $63 billion to meet public health challenges throughout Africa.

FOURTH

The U.S. is committed to working with African states and the international community to prevent, mitigate, and resolve conflicts and disputes. Conflict destabilizes states and borders, stifles economic growth and investment, and robs young Africans of the opportunity for an education and a better life. Conflict sets back nations for a generation. Throughout Africa, there has been a notable reduction in the number of conflicts over the past decade.

The brutal conflicts in Sierra Leone and Liberia have come to an end, and we have seen Liberia transform itself into a democracy through the election of Ellen Johnson Sirleaf, Africa’s first female head of state. These examples of what can be accomplished in a short period of time should make us proud and hopeful for solving the problems of seemingly intractable conflicts elsewhere.

However, areas of turmoil and political unrest such as Guinea, Somalia, Sudan, the Democratic Republic of Congo, Niger and Madagascar create both internal and regional instability. Furthermore, we must not forget the extreme harm inflicted by gender-based violence and the recruitment of child soldiers. The Obama Administration is working to end these conflicts so that peace and economic progress can replace instability and uncertainty.

President Obama has demonstrated his commitment to work with African leaders to help resolve these conflicts through the appointment of the Special Presidential Envoy for Sudan, General Scott Gration, whose mandate is to ensure the full implementation of the 2005 Comprehensive Peace Agreement. The Special Advisor for the Great Lakes former Congressman Howard Wolpe is also working to bring peace and stability to the Eastern Congo.

We will also continue our cooperation with regional leaders to look for ways to end Somalia’s protracted political and humanitarian crisis. We continue to call for well-meaning actors in the region to support the Djibouti Peace process of inclusion and reconciliation, and to reject those extremists and their supporters that seek to exploit the suffering of the Somali people.

Additionally, the United States is proactive in working with African leaders, civil society organizations, and the international community to prevent new conflicts. We are cooperating with African leaders to defuse possible disagreements before they become sources of open hostility. As we pursue these avenues of promoting stability and peace in Somalia, we are also shouldering the lion’s share of humanitarian assistance to the people of Somalia.

The United States consistently has been the largest single country donor of humanitarian assistance to Somalia, providing more than $150 million in humanitarian assistance in 2009.

FIFTH:

We will seek to deepen our cooperation with African states to address both old and new transnational challenges. The 21st century ushered in new transnational challenges for Africa and the world.

Africa’s poverty puts it at a distinct disadvantage in dealing with major global and transnational problems like climate change, narco-trafficking, trafficking in persons and arms, and the illegal exploitation of Africa’s minerals and maritime resources.

Meeting the climate and clean energy challenge is a top priority for the United States and the Obama Administration.

Climate change affects the entire globe; its potential impact on water supplies and food security can be disastrous. As President Obama said in Ghana, “while Africa gives off less greenhouse gasses than any other part of the world, it will be the most threatened by climate change.” Often those who have contributed the least to the problem are the ones who are affected the most by it, and the United States is committed to working with Africans to find viable solutions to adapt to the severe consequences of climate change.

The effects of climate change are clear: the snow cap of Mount Kilimanjaro is melting and Lake Chad is a fraction of the size it was 35 years ago. With our international partners, the United States is working to build a sustainable, clean energy global economy which can drive investment and job creation around the world, including bringing energy services to the African continent.

There is no time like the present to face this issue as it carries tremendous consequences for future generations and our planet.

Narco-trafficking is a major challenge for Africa and the world. If we do not address it, African countries will be vulnerable to the destabilizing force of narcotics trafficking in the years ahead. As Africa faces the impact of these new transnational problems, the United States will actively work with leaders and governments across the continent to confront all issues that are global in nature.

I would now like to turn to our new programs and initiatives, which work to implement our policies to move our partnership with Africa forward. We are establishing in-depth, high level dialogues with South Africa, Angola, Nigeria, and with the African Union.

We are increasing our cooperation with other countries interested in Africa such as Canada, the UK, France, China, Japan, and multilateral bodies like the EU.

We also hope that increased funding for projects and programs in Africa, as requested in the 2011 budget, will be approved by Congress. With enhanced resources we can further strengthen our partnership with Africa.

Finally, one of my personal goals is to expand our diplomatic presence in Africa. I am working with the Administration and Congress to increase resources – both funding and people – at our embassies and consulates. I want more American diplomats living and working in Africa. An increased diplomatic presence is important for our mutual progress on all of these pressing issues. It is my sincere desire to open more consulates in Africa, which will enable us to reach your citizens beyond the capital cities.

We must be in Mombasa as well as Nairobi, we must be in Goma as well as Kinshasa, and we will be in Kano as well as Abuja.

We must also do a better job of using our diplomatic presence on the continent to listen to the people of Africa and learn from them how we can better work together on the challenges they face.

The Obama Administration believes in and is committed to Africa’s future. I am excited about the level of interest you, the next generation of African and American leaders, have shown to take the future of Africa into your hands as President Obama called for in Ghana. I appreciate your commitment to this shared vision and your willingness to work together toward a future that brings better governance, expanded democracy, and greater prosperity to Africa’s people. I hope that many of you in this room will choose careers in public service, either in the Peace Corps and the Foreign Service, like I did. I also anticipate that some of you will return to your countries and serve there as the next generation of leaders who can help make progress on some of the challenges facing Africa, which I have mentioned tonight. For those of you who enter the business world, recall what I have said about the vast economic opportunities that remain untapped in Africa. Africa’s challenges demand the kind of energy and creativity that I know is present in this room.

Thank you very much for your time, thank you for this invitation, and now I turn it over to you for questions.