Mining Indaba

Mining Indaba (Mining Indaba Cape Town, February 6th– 9th, 2012) attracts mining analysts, fund managers, investment specialists and financiers from around the world.

Corporate presentations on the newest and most successful projects provide the foundation for institutional portfolio growth and asset diversification.

Government and agency presentations update policies and incentives for potential partners. Attendance is limited to professional investors and industry.

Speakers are by invitation and include top global economists, industry analysts and mining management.

Delegates who participate in the Mining Indaba conference develop essential knowledge, and experience first-hand the rewards and risks of investing in more than 130 mineral-rich countries around the world.

They personally meet the policymakers of these nations, and hear case studies of successful and unsuccessful ventures.

Mining Indaba provides companies with an ideal platform on which to build shareholder base, and with exposure to the most influential professionals specializing in natural resources worldwide. More information can be found

Mr. Michael Hopley, President & C.E.O. of Sunridge Gold will be speaking on Tuesday, February 7th, 2012 at 4:38pm in Hall 4

Also take the chance to meet Sunridge Gold Corp and Nevsun Resources Ltd.’s Cocktail Reception on February 8th, 2012 from 5:00pm to 8:00pm at the Westin Grand Cape Town Hotel in Vasca Da Gama Room.

Mining Indaba, Cape Town – Sunridge Gold & Nevsun Resources

Port Massawa Eritrea

By Berhane Woldu

Eritrea’s Strategic Location along the Red Sea provides ideal exposure to one of the world’s busiest shipping lines and established linkages to other areas of the region and beyond.

The port of Massawa is a transit point for goods to the Middle East, European and Asian Markets. The development of the port is poised to bring about potential gains to trade.

The establishment of a Free Port Zone at Massawa is further expected to boost trade prospects within the already established Middle Eastern and African Markets. The Massawa Airport is equally capable of facilitating traded goods in transit to regional and global destinations.

Investment in exploration activities for reserves of oil, natural gas, and otherminerals provide a potential source for the expansion of export receipts. Eritrea’s natural mineral resources include gold, copper, potash, zinc, oil, natural gas, cement, gypsum, granite, marble, ceramics, limestone and iron ore.

The Bisha Mining Company, which is a mining conglomerate between the government and a Canadian company (NEVESUN), has started production in early 2010. The company produced more than 390,000 oz of gold during the first year of operation and expected to produce more than 450,000 oz in the second year. Copper production will begin in the second year and peak at 184-million pounds of copper in the fifth year of operation. The mine will begin producing zinc in its sixth year. There are many more mining contracts on the making. The potash mine in Danakil Depression with a planed output of up to 10,000 ton a day life span of over 150 years, the Zara and Dubrba gold mining Eritrea stands to share in hundreds of billions of dollars in mining profits.

PRIVATE SECTORE DEVELOPMENT

The private sector is seen as the major development partner, an engine of growth that will help jump start the economy and eventually lead to long-term growth in the Governments development agenda- as explicitly indicated in the Macro Policy document (1994). The Government has achieved so much at adopting favorable monetary and fiscal policy, reduced regulatory framework and bottlenecks by offering incentives and avoiding trade and other related barriers to attract private sector investment and to expand exports.

In line with the macro-policy objectives, a revised investment code was issued in 1994. The main objective of the investment code is to promote investment in Eritrea as well as develop and use the country’s natural resources. Within this broader objective, the investment code intends to achieve objectives including, the promotion of exports, encouragement of competitive import substitution industries, enhancing transfer of new technology, securing equitable regional growth, development of small-and medium-scale enterprises, and expansion of employment opportunities (GOE, 1994: 5).

The Eritrean investment code also provides various incentives for domestic and foreign investment. The investment code further outlines that there will be no taxes on declared dividends; any corporate profit that is set aside for reinvestment will be taxed at the rate of 20%. Furthermore, there shall be no exchange controls for remitting dividends and capital gains, and foreign investors are free to repatriate their profits.

The investment code provides various benefits to investors. For instance, profit and dividends of investors, payments for a foreign loan, fees, royalties, or proceeds received from liquidation of investment and/or expansion, and payment received from the sale of transfer of shares will be remitted in accordance with the rate of exchange prevailing at that time. There is no minimum threshold value of investment. Moreover, with the exception of domestic retail and whole sale trade, import, and commission agency that requires bilateral agreements of reciprocity with the country of investor, all areas of investment are open to all investors both foreign and domestic (GOE, 1994:6). Foreign capital may establish any enterprise on its own or in partnership with local capital.

Moreover, the investment code guarantee, that capital and other associated foreign-owned assets will not be nationalized without due laws. To this effect, Eritrea has also signed the convention establishing Multilateral Investment Guarantee Agency (MIGA) and the convention on the Settlement of Investment Disputes between States and Nationals of other States(GOE, 1998: 20). It established, The Investment Center, which is the legal body responsible for the promotion of investment. Issuance of certification to investors with a maximum delay of 10 days (GOE, 1994:15), Land Proclamation that provides usufruct rights for the long-term up to 99 years has been issued since 1994 and is expected to facilitate the allocation of land for investors (GOE, 1994; IMF, 1996:9).

Significant progress has been made since independence regarding the liberalization of trade policy.

The 1994 Legal Notice 18/1994 reduced the number of import tariffs to twelve. Capital goods, raw materials, and semi-processed goods have only a2 % tariff. Basic goods duties range from 3 to 20%.

In addition, customs procedures were simplified. In the mid-1990s, the government began major investments in infrastructure, roads, electricity, dams, and port operations to support the further development of exports.

To expand the market for import and export potentials the country entered into active membership in regional organizations such as IGAD and COMESA.

INVESTMENT ENVIRONMENT

Peace and security are the main pillars of a true and conducive investment environment in Eritrea. The economic policy underlines the necessity to have a market lead economic system. The private sector should have the upper hand in all economic sectors with the government to intervene in major public shares. The following are some of the steps taken for a better investment environment:

• The Eritrean Investment Center was created in 1998 to promote the country as an attractive investment destination. The investment center approves investment projects, and aims to promote and facilitate investment activities in Eritrea.
• The Business Licensing Office (BLO) was established to create a centralized, “One-Stop”, licensing center to facilitate the speedy formation of business ventures as well as the issuance and renewal of licenses.
• Key investment opportunities in the fisheries sub-sector provide a potential of 90,000 sq.km of fishing ground, with an estimated annual production potential of 65,000-70,000 tons of fish and other marine produces.
• The manufacturing sector produces a variety of products with particular emphasis on processed food and dairy products, alcoholic beverages, glass, leather goods, marble, textiles and salt.
• Recent developments in the mining and quarrying sectors.
• Investment opportunities in the service sector include tourism, transport, energy and water resources, communication and financial services.
• Offshore oil and natural gas exploration are specific areas of potential investment in the energy sub-sector.

INVESTMENT INCENTIVES IN ERITREA

The investment policy of Eritrea provides the following incentives to foreign and domestic companies.

• Both local and foreign private sector investors are allowed to participate in all sectors of the economy with no restriction and discrimination
• Priority foreign exchange allocation given to exporters
• Up to 100% retention of foreign currency earning
• No taxes on dividends declared
• Capital goods, intermediates, industrial spare parts and raw materials are subject to nominal customs duty of 2%
• Raw materials and intermediate inputs are subject to 3% sales tax; however, all sales taxwill be rebated on all materials and inputs that have been used for export production
• Exports are exempted from export duties and sales taxes
• Any loss incurred during the first two years of operation by an investor may be carried forward for three consecutive years
• Marginal tax rate on personal income from 2%-38%: on non-corporate profit from 2%-38%; on corporate profit from 25%-35%; on commercial agriculture from 2%-320%; and on rent income from 1%-48%
• Profit derived from mining activities will be taxed as per the mining legislation; and
• Corporate profit that is set aside from reinvestment taxed at the rate of 20%.

/CE

With Europe and North America currently enduring economic hard times it should come as little surprise that a number of companies and enterprising individuals have begun to seek out new and potentially lucrative markets.

Africa is seeing unprecedented growth in a variety of sectors ranging from aggregates and agriculture to telecommunications and the service sector.

What might once have been seen as frontier markets are now entering the mainstream and such is the demand for solid market intelligence and credible contacts that the Horn of Africa Business Association (HABA) has been launched in London with the intention of facilitating business engagement with and within the Horn and the Greater Horn. HABA works with the following countries: Djibouti, Eritrea, Ethiopia, Somalia and Somaliland (The Horn of Africa), Kenya, South Sudan, Sudan, and Uganda (The Greater Horn) as well as forging further business links with Burundi, Rwanda and Tanzania.

“China and India have both recognized the opportunities and we are aware that businesses in other countries are waking up too. HABA is endeavouring to meet a real need and the market is considerable: 12 countries – 278 million people – 1 dynamic region.” – Mohamed Ali, Operations Director, HABA.

As well as having a consultancy division HABA offers a range of benefits to its members:

• Supplying them with a wealth of useful information through programs and communications, including policy and market developments

• Offering seminars, symposiums and workshops with a view to more effective understanding of the dynamics and opportunities of the region

• Facilitating networking between members

• Leveraging on commercial/ trading relations; key relationships with embassies and high commissions in London and with governmental entities throughout the Horn and the Greater Horn.

Such has been the interest in HABA that it has already been approached to establish chapters in Dubai (UAE), Kampala (Uganda) and Mumbai (India).

Nevsun Resources Eritrea

Mallory Stone reports that the Financial News Network (FFN) looked at the Gold industry and measured relative performance to find the top stocks. Relative outperformance is a bullish sign of underlying fundamental and technical strength. FFN looked at thursday’s price action of all companies in this peer group.

Nevsun Resources (AMEX:NSU) ranks first with a gain of 9.07%; Royal Gold (NASDAQ:RGLD) ranks second with a gain of 6.77%; and Yamana Gold (NYSE:AUY) ranks third with a gain of 5.65%.

AngloGold Ashanti (NYSE:AU) follows with a gain of 4.56% and Randgold Resources (NASDAQ:GOLD) rounds out the top five with a gain of 4.41%.

Nevsun Resources Ltd. is a gold producer and base metal developer. The Company has a gold-copper-zinc mine in Eritrea.

China in Africa

Amanuel Biedemariam

Over the last decade China has received a favorable PR on the way that it deals with Africa. The perception is that China’s a-political approach of engaging Africa is good for Africa. It is also deemed that China’s economic investments are positive for Africa. The low bid contracts by Chinese companies are seen to be good alternative from the West that traditionally strangulated Africa with debt. China is helping African countries develop some capacities in various fields. These are amongst some of the advantages China provides African countries.

In November of 2006, China organized probably the largest gathering of African countries outside Africa a “China Africa Summit”. The gathering was hailed by African leaders because they believed it to be a good sign for future China-Africa relations. There were press accounts detailing satisfaction of African countries because they perceived that China was looking to partner with African countries. The very fact that China held the gathering was a big deal, a-first for Africa and, a knock at Western nations that treated Africans with utter disrespect for generations.

China’s involvement with Africa has its critics and supporters. The most glaring objection is that China is dealings with countries that the West claims-have bad human rights records. China is accused of encouraging corruption and corrupt leaders. China is criticized for not focusing on governance and human right issues. And for systematic denial of African countries from manufacturing their own products because of China’s insistence on selling products produced by China. In a nut shell this is the extent of the critical view China gets from the West.

China is the “anti West” in the way that it deals with African countries. For example in Ghana, a $270 million loan facility to carry out expansion works at the Kpong Water Project was agreed upon between the government of Ghana and China. What is different about the loans China provides Africa is the fact that these countries can use their resources, in effect bartering in exchange for projects, goods and services that these African countries need in this case, water. The Chinese have a lot of dollars that they must dump. This is leverage that Africa never had with the West.

What does it mean when we say is China a friend of Africa? How should friendship between China and Africa be defined? How deep of a friendship is China cultivating in Africa? How good of a friend is China to Africa? What does China’s friendship mean to African countries? And the main question; is China a friend of Africa?

For a layman and according to various dictionaries, a friend is: a person whom one knows, likes, and trusts; an acquaintance; an ally in a struggle or cause; a comrade; one who supports, sympathizes with, or patronizes a group, cause, or movement and, a member of the Society of Friends.

Using the basic understanding of the meaning of friendship, can Africa trust China; consider China as an ally and be confident that China is a comrade in the struggle towards economic emancipation and development? Can Africa “trust” China to support and be the party that stands for the security of Africa?

The attention China received for her dealing with Africa collectively was partly accentuated by China Africa Summit in other words self made. One thing that needs to be clear however, Africa is not one nation. Therefore, it is impossible to paint China-Africa relations with one brush and as such; fair to ask some basic questions in order to have a common-basic understanding of what China means to Africa. It is also important to look at history of relations of other nations for example, Great Britain and the US as a standard. It is important to see the historic interaction of UK and US in the realms of economic cooperation, cultural relations, friendly ties, political/diplomatic co-ordinations and importantly on national and global security matters as a guide…

Is there a country in Africa that has ties with China that remotely resembles the example above? Does China have allied countries in Africa? During the Cold War, the alliances were almost clearly defined. The countries that were pro-West received support from the West led by the US, and vice versa. Can African countries count on that type of support from China? While the author is not an advocate of Africa divided based on the interests of super powers; it is important to note that countries enjoyed qualified diplomatic and military support during that era from one side or the other. However, while the current world is considered to be multi-polar, the main powers are the US and China. These are veto wielding powers capable to impose their will on any nation around the world. Ironically, while the US is clear on whom their friends are and her interests; it is extremely difficult to gauge China’s intentions. And absent of any pronounced friendship with any country in Africa it is nearly impossible to say where China stands with any nation.

It is important to ask these questions of China considering the extent of China interaction with Africa over the last thirty years. It is even more crucial in light of the resolutions United Nations Security Council (UNSC) produced over the last ten years that profoundly impacted many countries in Africa. In 2005 alone, nearly 80% of the 70 deliberations and decisions the UNSC made were related to matters in African countries with the Middle East coming far-second and Third World countries such as Haiti and Bosnia Herzegovina filling-in the blanks. The reality is 2005 is not an aberration it is the annual reality in the UNSC. And the problem is the fact that the UNSC is making all these decisions without the affected parties having a say and a fighting chance against decisions that are affecting these nations in some cases altering the social landscapes violently. Moreover, the role China played or lack thereof is by far the most perplexing.

One needs to look at some of the recent developments in Africa pertaining to Libya, Sudan, Eritrea and others vis-à-vis Security Council decisions that the West and particularly the US perused in the region. China went along with decisions when it seemingly could impact its national interests. These decisions raise some serious questions about Chinese intentions and dealings in Africa.

China has been in Sudan for decades and it is one of the reasons why Sudan remained viable. China has heavy investments in Sudan primarily in the oil sector. China imports an estimated 7% of its oil from Sudan. Moreover, China has a sizeable human-resources invested in various sectors. In other words China’s investments in Sudan are numerous, extensive and took decades for China to build it that level. Yet, when we look at the future security and stability of Sudan, the West led by the US appears to be on the driver’s seat basically dictating terms while weakening Sudan and nailing wedges designed to fragment the nation into pieces. It is ironic because the US pushed measure after measure using the UNSC that China can stop using its veto power.

Moreover, if one is to add Eritrea into the mix it makes one wonder what China’s underlined interests are. Nearly all of China’s goods from Sudan are channeled through the Red Sea. Eritrea owns a large and strategic lane on the Red Sea. Eritrea is also bordered by Sudan. If Eritrea is to be what Ethiopia and the US wanted to be (an entity under their control in whatever shape or form); then Sudan would be encircled by countries that are propped by the US and, the US would have assumed control over the entire eastern part, the Horn, and the Northern parts of Africa.

The US is in Djibouti, Ethiopia, Kenya, Uganda, South Sudan, Rwanda and Egypt. The only countries left are Sudan and Eritrea. If the US is to succeed by accomplishing what they planned for Eritrea after World War II, then Sudan would have no fighting chance because it will be encircled. Moreover, US and her allies would have controlled the entire Red Sea territories namely Egypt, Sudan, Eritrea, Djibouti on one side and, Saudi Arabia, Yemen on the other. They will have the chokehold for any shipment that sails through that area. A good example to glean from is the Suez Canal and Iran. Eritrea controlled by the US can potentially limit China’s access to the area and give US the upper hand in the region.

It is with this background in mind that the author questions China’s role. Why is China allowing the US to pass measure after measure to pressure Sudan and Eritrea? The US, on Xmas Eve of 2009 imposed a sanction measure, by concocting lies and fabrications in the most brazen way that disregarded the existence of the people of Eritrea. They used a mechanism and methodology that denies Eritrea a say and moved along with a sanction.

In Libya when the UNSC authorized the No Fly Zone, this is the statement by China’s Ambassador to the UN LI BAODONG:

“The continuing deterioration of the situation in Libya was of great concern to China. However, the United Nations Charter must be respected and the current crisis must be ended through peaceful means. China was always against the use of force when those means were not exhausted. His delegation had asked specific questions that failed to be answered and, therefore, it had serious difficulty with the resolution. It had not blocked the passage of the resolution, however, because it attached great importance to the requests of the Arab League and the African Union. At the same time, he supported the efforts of the Secretary-General’s Envoy to resolve the situation by peaceful means.”

“The UN adopted Resolution 1973 (2011) by a vote of 10 in favor to none against, with 5 abstentions (Brazil, China, Germany, India, Russian Federation), the Council authorized Member States, acting nationally or through regional organizations or arrangements, to take all necessary measures to protect civilians under threat of attack in the country, including Benghazi, while excluding a foreign occupation force of any form on any part of Libyan territory — requesting them to immediately inform the Secretary-General of such measures, to establish a ban on all flights in the airspace of the Libyan Arab Jamahiriya in order to help protect civilians.”

LI BAODONG statements are very troubling. Firstly, he stated that China wants the situation to have a peaceful end. And secondly China is against use of force. He continues, his delegation had asked specific questions that failed to be answered and, therefore, it had serious difficulty with the resolution. The most troubling statement however is, “It had not blocked the passage of the resolution, however, because it attached great importance to the requests of the Arab League and the African Union,” and passed a resolution with a vague and open-ended language that allowed NATO to destroy Libya in the name of protecting civilians.

The Irony, first of, the African Union was disregarded. And secondly, this was taking place in the most turbulent times in the history of the Middle East when countries were embroiled on their internal civil struggles. China passed the resolution not to protect the best interest of the people of Libya but to satisfy a nonexistent or a nominal Arab League and African Union. It is even more perplexing considering the number of Chinese that worked in Libya and the amount of investment that China had in Libya.

This begs the question; why is China allowing punitive measures against nations that are friendly; nations that are doing business and, nations that have accepted not only the diplomatic core but the Chinese people all around Africa? Why is China allowing the US and Western nations to take advantage of UNSC resolutions for their hegemonic objectives. The No Fly resolution was just a hook because soon after the decisions were made the French, UK and US did bait-and- switch, called for a regime change and escalated the operations including sending advisors into a civil war. The people of Libya are being terrorized by the most intensive bombing campaign the continent of Africa has ever seen. The people of Libya are being exposed to depleted uranium; Libyans are suffering and not better off. And contrary to China’s wish of peace, Libya is ensnared by violence of the brutish NATO forces. In short, China’s repeated abstentions do not absolve it from the responsibilities.

Conclusion

Dambisa Moyo and others have said a great deal of good about China’s economic programs in Africa. However, no-economic success means a-whole-lot unless coupled by peace. Africa’s problems are chronic by design and they continue because the West is intent on keeping Africa crippled. China was Africa’s first and best hope to counterbalance the negative role the West continues to play in Africa. Instead, China is tacitly accepting the label of new colonizer of Africa. On a setting that resembles a Hollywood’s scary witch-movie, Secretary Hillary Clinton stood on a dark room on a podium in Ethiopia and warned Africans to beware of the new colonizers that do not care about Africa. Her statements are evidence that Africa has effectively turned in the dinner table of hyenas and lions fighting for a carcass only this time; it is with the impending holocaust of the African continent.

The question is what can Africans do? The UN/UNSC is an organization designed to benefit the five permanent members at the expense of the world. The UNSC has literally turned the international order into that of the Jim-Crow laws that punishes without representation, due process and to send a message. They have established systems they can manipulate as they wish like the ICC that they are using to petrify leaders such as Beshir to get what they want. They are penalizing the people of entire regions based on their national interest-considerations and denying them the right to live in peace. Moreover, these are people that have never been able to establish institutions that can sustain them in bad times such as draught. The continuation of this holocaust is reaching biblical proportions. Yet, they are escalating these strategies.

The reality is there is no recourse for these transgressions and deliberate injustices. Therefore, the responsibility befalls on those countries that are being negatively affected by the injustices. Hence, the only solution is for nations to abandon the defunct UN and disqualify its purpose and create a mechanism to deal with world matters. Moreover, united vigilance of the people is far more important than ever because they are openly returning Africa back to the colonial era. China could also assume the just role of defending African because ultimately that will serve its interests in the right way.

awetnayu@hotmail.com

CAIRO – Traffic through Egypt’s Suez Canal was disrupted for four hours on Tuesday after a ship ran aground because of engine failure in bad weather, an official maritime source said.

“A cargo ship ran aground due to an engine malfunction in the southern sector of the canal, blocking five ships behind it,” the source said.

An official from the Suez Canal Authority said shipping returned to normal at 1200 GMT after the ship, and another that ran aground later, were freed and moved.

A union official said some employees in the office of canal authority chairman Ahmed Fadel had gone on strike, joining a wave of popular protests that has gripped Egypt. He said this had not affected the normal functioning of the canal.

Five of Egypt’s Red Sea ports were closed on Tuesday because of bad weather, a spokesman for the Red Sea Ports Authority said.

Those affected included Nuweiba, Port Tawfik and Adabiya.

Reuters

The Common Market for Eastern and Southern Africa, (COMESA) has procured equipment to be used in three regional laboratories meant to enhance Sanitary and Phytosanitary (SPS) requirements. This is part of efforts by the regional bloc to establish SPS regional reference laboratories. The three laboratories are the Central Veterinary Research Institute for Animal Health in Zambia, the Food Technology laboratory for food safety of Mauritius and the Plant Inspectorate Service for Plant Health of Kenya.

This has been revealed by Dr Chungu Mwila, Director of Investment Promotion and Private Sector Development (IPPSD) at the COMESA Secretariat. Dr Mwila was speaking at the opening of the national training workshop for Zambia on SPS held in Lusaka from 12th to 14th January 2011. The training was co-organised by COMESA, the Zambian Government and the African Nations in Sanitary and Phytosanitary Standard Setting Organisations Project (PAN-SPSO).

Dr Mwila pointed out that COMESA countries need to comply with SPS requirements in order for them to fully participate in the multilateral trading arena and also protect the lives and health of humans, animals and plants in the region.

“It is important to note that most African national fail to access international markets for their agricultural and food products mainly because of non compliance with SPS requirements.

SPS standards are a major part of the international trading regime and we need to conform to these rules if we are to occupy our rightful position in the international trading area,” Dr Mwila pointed out. He added that the harmonization of SPS measures in the COMESA region is hampered by several factors which include insufficient human resources capacities, insufficient institutional capacities, incompatible legislation, regulatory, inspection and certification systems. Other factors are insufficient dialogue among the relevant SPS authorities in the various Member States and inadequate participation of Member States in international fora that deal with SPS matters, particularly the standard setting processes.

It is for this reason that COMESA is working to assist Member States ensure that the SPS measures they implement conform to agreed regional and international standards set by the World Organisation for Animal Health, International Plant Protection Convention (IPPC) and Codex Alimentarius Commission (CAC).

COMESA and PAN-SPSO have teamed up and help Member States develop their capacities in SPS. After the training, it is expected that African countries will be strengthened to empower national SPS offices for effective participation in SPS standard setting activities, strengthening of a common position in SPS by African nations and at the level of Regional Economic Groupings (RECs). The technical capacity of African countries to draft standards and develop science-based arguments will have been strengthened.

So far, COMESA has trained close to 150 SPS experts in Member States at different levels in order to form a nucleus of SPS experts in the region, helping to establish the three regional labs, sensitising stakeholders at national level and adopting SPS regulations which were done in December 2009 by the COMESA Council of Ministers.

International Standards for SPS Measures are the standards, guidelines and recommendations recognized as the basis for application of SPS measures by members of the World Trade Organisation.

COMESA and PAN-SPSO are conducting the training in eight COMESA Member States namely: Democratic Republic of Congo, Comoros, Eritrea, Madagascar, Malawi, Mauritius, Seychelles and Zambia.

For the full video please click here: ABNDigital

A Yemeni-Eritrean summit was held on Thursday in the Eritrean capital, Asmara, and co-chaired by President Ali Abdullah Saleh and Eritrean President Isaias Afeworki.

In the summit, the two leaders discussed the joint cooperation between the two countries in various areas and means of boosting them, especially in areas of trade, investment, fishing and security.

They confirmed their keenness to establish a strategic relationship between the two countries to enhance cooperation areas at the political, economic and security levels, as well as cooperation in combating maritime piracy and terrorism so as to serve the national security of the two countries and the stability in the region.

Moreover, they touched on activating the joint committee and the agreements signed between the two countries, in addition to the establishment of a trade fishing company.

Furthermore, the two leaders dealt with the developments of situations in the region, topped by the situation in Somalia and the Horn of Africa and the security in the southern Red Sea, as well as a number of common issues concerning the two peoples of Yemen and Eritrea.

After that, the two presidents spoke to media at a press conference, in which President Saleh expressed his happiness for visiting Eritrea, noting to the topics he discussed with his Eritrean counterpart in the summit.

” Views were identical , as we agreed on coordination and information exchange for cooperation in the southern Red Sea and the fight against piracy and terrorism and everything related to the national security of both countries”, Saleh said.

For his part, the Eritrean president said that the relationship between the two countries is strategic and there is a common vision between them towards a number of security and economic issues.

Source: SABA

COMESA

The Common Market of Eastern and Southern Africa (COMESA) announced that Ambassador of Eritrea to the Republic of Kenya, Salih Omar Abdu, presented credentials as his country’s Permanent Representative to COMESA Secretary General Sindiso Ngwenya on Wednesday, 20th October 2010. This is the first time that the Republic of Eritrea, has appointed a Permanent Representative to COMESA.

Mr. Ngwenya warmly welcomed Ambassador Salih Omar Abdu to COMESA Secretariat, which he said was a home to all and to the entire COMESA region and its people and Governments.

He reiterated the role of COMESA Secretariat in serving member States “at COMESA Secretariat, we pride ourselves in being, hospitable, kind and helpful, energetic and fast, and in providing an excellent service to all stakeholders. We put exceptional priority to assisting the people of the region, particularly the ordinary people, to improve their living standards through better employment opportunities and incomes”, said Mr. Ngwenya.

Secretary General Ngwenya congratulated His Excellency and the Eritrean government for his appointment as a Permanent Representative to COMESA and to which he acknowledged Eritrea as an active Member State of COMESA.

Secretary General Ngwenya indicated some milestones achieved by Eritrea within the frame work of COMESA integration agenda. Some of those identified include: Eritrea’s export to COMESA region in 2008 amounted to $4,294,499 and Eritrea’s import from COMESA region was $ 4,521,232. Adding that the trade would be even much more if there was appropriate connectivity and therefore the reason why COMESA was considering a shipping line.

Regarding the COMESA Programme on Trade facilitation, Mr Ngwenya pointed out that Eritrea has fully implemented the Yellow Card Scheme, adding that Eritrea realized a high performance of 75% in regards to the implementation of road transport facilitation programmes, and actively participates in the Food and Agricultural Marketing Information System (FAMIS) activities and has benefited from the training of data collection consultants and FAMIS administrators just to mention a few..

Mr Ngwenya further said that Eritrea fully recognizes the COMESA Laissez Passer and Agreement on Privileges thereby facilitating the implementation of COMESA Programmes and activities in the Eritrean territory and looked forward to working with the new Permanent representative in consolidating these achievements and assist Eritrea to fully benefit from COMESA programmes.

Presenting his credentials, Ambassador Salih Omar Abdu said that his appointment is a sign of Eritrea’s commitment to the implementation of the COMESA agenda, adding that although Eritrea was not yet a member of the COMESA Free Trade Area (FTA), she had reduced tariff on COMESA originating goods by 80 per cent, and that it was his hope that Eritrea will remove the remaining 20 per cent soon and work with other members of the FTA.

Mr Salih Omar Abdu further noted that COMESA as an institution has various co-operations with other organizations within the region and outside the region like JAPAN, EU, USA etc. which form an essential external environment for regional development and stability.

He retaliated the commitment of Eritrea as an active member of COMESA as evidenced by the COMESA Secretary General’s recent visit to Eritrea where he met President Isaias Afwerki , Government officials and various stakeholders.

Source: COMESA

A universal bank that caters for all sectors of the economy, including agriculture, domestic trade, finance, transport and fisheries, the Commercial Bank of Eritrea is committed to a dynamic financial sector in Eritrea.

With a mission to provide credit facilities for Eritreans to realize their business dreams, the Bank enjoys an 85percent share of the market, making it the largest commercial institution in the country.

General manager Yemane Tesfay is convinced that Chinese participation will add extra value and efficiencies to the bank and its clients, and bring much-needed competition to the banking sector.

“As a banker for 30 years, I am pro-competition, so a Chinese investor taking control of the management of the bank would be good for Eritrea and good for the investor.

“We have a network of branches all over the country, even in the rural areas, so there is a solid base laid. The infrastructure is there, the reputation is there, public confidence is there and on top of all that, we have a young and educated workforce and can communicate in different languages. Taking China’s general interest in Africa into account, I am optimistic it will be beneficial for both sides.”

Internationally minded

Tesfay believes it is the bank’s asset base and capitalization under the Basel II agreement that secured its inclusion as one of The Banker magazine’s Top 100 African Banks.

The bank also prides itself on having relationships with around 30 correspondent banks in Europe, the US and the Far East, and on being a member of the SWIFT family.

These factors, along with a computerized banking system and systematic training programs for staff, all point to an internationally minded institution. “We would like to establish more links with China,” Tesfay said. “If there are goods and services going back and forth between the two nations, there is no reason why we cannot have a strong relationship.

“Being State-owned, our banks are not as efficient as they could be. Chinese investors can enjoy the first-bird advantages if they come and participate now. It will be a pleasure to serve their investments.”

Source: China Daily

Chinese Cargo

New equipment, technology, knowledge and skills are rebuilding a proud nation

Blessed with large deposits of precious minerals such as gold, silver, copper and zinc, Eritrea offers foreign investors a wealth of opportunities in the mining sector, while the agriculture, tourism, fisheries and manufacturing industries also possess huge potential.

President Isaias Afewerki is determined to transform Eritrea into the Horn of Africa’s logistics hub, as the country of 5.6 million people capitalizes on its 1,151-km long Red Sea coastline and access to one of the world’s busiest trade and shipping routes.

As the African nation’s preferred commodity partner, China is playing a key role in Eritrea’s socioeconomic development through the supply of aid, capital, machinery, technology, knowledge and skills.

Chinese enterprises and equipment are also widely involved in the rebuilding of vital infrastructure such as roads, airports, power and telecommunications, schools and hospitals.

“Our priority has been the creation of a good climate for investment and development,” said Afewerki, who took office in 1993 as head of the People’s Front for Democracy and Justice (PFDJ).

“Eritrea can be a gateway for investment in Africa if we can take advantage of our excellent strategic location. Our partnership with China, even though it is in its early stages, will dramatically change the reality in this country and give us a greater global interaction.”

According to the president, the mining, fisheries and agricultural sectors, especially cotton production, are best suited for Chinese investment as they will utilize the country’s natural resources and generate substantial exports revenues.

“The potential for cotton cultivation is huge and a key part of our agricultural program is the introduction of new technology,” he said.

“We are developing our agricultural infrastructure and, in partnership with China, are developing a textile industry. The initial commitment with China for cotton exports is already in place. We have begun with very modest programs but we need to expand them.”

Tightening bonds

Chinese Ambassador to Eritrea, Li Liansheng, has welcomed these and other positive developments as he looks to strengthen these political, commercial, industrial and social bonds.

“The Eritrean government is trying to invite Chinese companies to make Eritrea a trading and transportation center for Chinese goods,” he said. “There is particular potential and interest for Chinese companies in Eritrea’s strategic location at the gateway to the vital trade and shipping route on the Red Sea.”

A core pillar of Eritrea’s modern economic policy is the setting up of new free trade zones that will generate fiscal growth, create jobs, boost government revenue and raise the country’s profile on the global stage.

With a strategic location on international shipping lanes, Eritrea offers exporters and investors easy access to foreign markets, with up to 40,000 cargo ships a year – carrying some 700 million tons of cargo – passing close to its coast.

In order to capitalize on these commercial opportunities, Eritrea is building a series of modern free trade zones comprising factories, warehouses, offices, roads, airports and transport facilities. The first free trade zone will commence operations shortly at Massawa after the government invested millions of dollars in the transformation of 5,000 hectares of land next to a former naval base.

Chinese enterprises are among the foreign firms that will be based there and benefit from a tax-free environment in which no direct or indirect taxes are paid on sales or profits.

A second facility at Assab will open later this year and officials have plans for similar developments across the country, including one focused on agro-businesses near the border with Sudan.

The ‘multiplier’ effect

According to Eritrea Free Zones Authority CEO, Araia Tseggai, the free trade zones will stoke the economy through the “multiplier” effect of employment, training and education opportunities and act as a magnet for foreign investors.

“We feel they are a good place for Chinese companies to secure and buy resources from Eritrea, process them there and take them to China or use them for their own purposes anywhere in the world,” he said.

“Looking ahead to the imminent openings of the new free trade zones at Massawa and Assab, Tseggai emphasized the importance of Eritrea’s location in the Horn of Africa and revealed that while the Massawa facility will focus on manufacturing, the sister zone at Assab will be aimed at transshipment-related operations and services.

“Cargo ships are always passing and this element is crucial as most of the shipping firms will end up stopping here and picking up their produce to wherever they are going,” he said.

“Chinese enterprises always carry out relatively large projects so if the Chinese start up businesses and logistical operations here it will be very important for our current and future operations as they are significant investors.”

A leading figure in Eritrea’s import and export sector – and an organization that is sure to benefit from the presence of the free trade zones – is the government-owned Red Sea Trading Corporation.

Established in 1984 as a commodities trading business, the non-profit firm performs a wide range of operations. It handles commodities such as sugar, grain and oil and the bulk of its trade is with China, where it is looking for further business opportunities.

“Our priority has shifted to China – the more suppliers you get, the more chances you have to obtain different brands of commodities and products,” said Red Sea Trading Corporation general manager, Negash Afworki.”

As the government’s head of economic affairs, Hagos Ghebrehiwet is responsible for overseeing the development of many of Eritrea’s State-owned enterprises in a range of sectors. “We have to become independent and develop our resources,” he said. “We need investment and assistance that allows us to stand on our own two feet, as well as being mutually beneficial.”

Building connections

Meanwhile, helping firms connect to the world in today’s technology-dependent society is EriTel. The country’s sole telecommunications provider is State-owned and is committed to improving its infrastructure and network coverage with the help of Chinese equipment, technology and human resources.

“We have replaced the old analogue equipment across the country with new digital telecommunications technology and have installed solar energy systems in areas where there is no electricity so that the mobile systems work 24 hours a day,” EriTel general manager and CEO, Berhane Tesfaselassie said.

“The Chinese are helping our development in many areas and I really appreciate their contribution to Eritrea’s telecommunications sector and their cooperative and understanding attitude.”

Such technological improvements are a key component of the growth of the Housing and Commerce Bank of Eritrea.

Founded in 1994, the Asmara-based bank offers individual and business customers a wide range of financial products and services such as savings and deposit accounts, private and commercial loans, plus international money transfers.

“Even though 60-70 percent of our activities and transactions are still involved in real estate, we do provide all the normal services that a bank should offer,” said Housing and Commerce Bank of Eritrea General Manager, Berhane Hiwet Ghebre.

“We are trying to open new branches in remote areas so everybody can benefit from our banking services and we really care about corporate social responsibility.”

Source: China Daily