CAPE-TOWN, South-Africa, June 5, 2015/ — African governments, investors, and international financial institutions must significantly scale up investment in energy to unlock Africa’s potential as a global low-carbon superpower. 

That is the main message of a new report from Kofi Annan’s Africa Progress Panel, Power, People, Planet: Seizing Africa’s Energy and Climate Opportunities (http://www.africaprogresspanel.org). The report calls for a ten-fold increase in power generation to provide all Africans with access to electricity by 2030. This would reduce poverty and inequality, boost growth, and provide the climate leadership that is sorely missing at the international level. 

To download a copy of the 2015 Africa Progress Report visit www.africaprogresspanel.org. 

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Livestream of the event: http://www.weforum.org/events/world-economic-forum-africa-2015/player?p=1&pi=1&a=67597 

“We categorically reject the idea that Africa has to choose between growth and low-carbon development,” said Kofi Annan, Chair of the Africa Progress Panel. “Africa needs to utilize all of its energy assets in the short term, while building the foundations for a competitive, low-carbon energy infrastructure.” 

In Sub-Saharan Africa, 621 million people lack access to electricity – and this number is rising. Excluding South Africa, which generates half the region’s electricity, Sub-Saharan Africa uses less electricity than Spain. It would take the average Tanzanian eight years to use as much electricity as an average American consumes in a single month. And over the course of one year someone boiling a kettle twice a day in the United Kingdom uses five times more electricity than an Ethiopian consumes over the same year. 

Power shortages diminish the region’s growth by 2-4 per cent a year, holding back efforts to create jobs and reduce poverty. Despite a decade of growth, the power generation gap between Africa and other regions is widening. Nigeria is an oil exporting superpower, but 95 million of the country’s citizens rely on wood, charcoal and straw for energy. 

The report reveals that households living on less than US$2.50 a day collectively spend US$10 billion every year on energy-related products, such as charcoal, kerosene, candles and torches. Measured on a per unit basis, Africa’s poorest households are spending around US$10/kWh on lighting – 20 times more than Africa’s richest households. By comparison, the national average cost for electricity in the United States is US$0.12/kWh and in the United Kingdom is US$0.15/kWh. 

This is a significant market failure. Low-cost renewable technologies could reduce the cost of energy, benefiting millions of poor households, creating investment opportunities, and cutting carbon emissions. 

The report says Africa’s leaders must start an energy revolution that connects the unconnected, and meets the demands of consumers, businesses and investors for affordable and reliable electricity. 

The 2015 Africa Progress Report urges African governments to:

•          Use the region’s natural gas to provide domestic energy as well as exports, while harnessing Africa’s vast untapped renewable energy potential.

•          Cut corruption, make utility governance more transparent, strengthen regulations, and increase public spending on energy infrastructure.

•          Redirect the US$21 billion spent on subsidies for loss-making utilities and electricity consumption – which benefit mainly the rich – towards connection subsidies and renewable energy investments that deliver energy to the poor. 

The report also calls for strengthened international cooperation to close Africa’s energy sector financing gap, estimated to be US$55 billion annually to 2030, which includes US$35 billion for investments in plant, transmission and distribution, and US$20 billion for the costs of universal access. 

A global connectivity fund with a target of reaching an additional 600 million Africans by 2030 is needed to drive investment in on- and off-grid energy provision. Aid donors and financial institutions should do more to unlock private investment through risk guarantees and mitigation finance. 

Time to end ‘climate negotiating poker’ 

The report challenges African governments and their international partners to raise the level of ambition for the crucial climate summit in Paris in December, and calls for wholesale reform of the fragmented, under-resourced and ineffective climate financing system. 

G20 countries should set a timetable for phasing out fossil fuel subsidies, the report states, with a ban on exploration and production subsidies by 2018.  “Many rich country governments tell us they want a climate deal. But at the same time billions of dollars of taxpayers’ money are subsidising the discovery of new coal, oil and gas reserves,” Mr Annan said. “They should be pricing carbon out of the market through taxation, not subsiding a climate catastrophe.” 

While recognising recent improvements in the negotiating positions of the European Union, the United States and China, the report says that current proposals still fall far short of a credible deal for limiting global warming to no more than 2˚C above pre-industrial levels. It condemns Australia, Canada, Japan and Russia for effectively withdrawing from constructive engagement on climate. 

“By hedging their bets and waiting for others to move first, some governments are playing poker with the planet and future generations’ lives. This is not a moment for prevarication, short-term self-interest, and constrained ambition, but for bold global leadership and decisive action,” Mr Annan said.

 Mr Annan added, “Countries like Ethiopia, Kenya, Rwanda and South Africa are emerging as front-runners in the global transition to low carbon energy. Africa is well positioned to expand the power generation needed to drive growth, deliver energy for all and play a leadership role in the crucial climate change negotiations.”

Azonto Petroleum has Announced That, As A Result Of A Continued Strategic Review Of Its Operations And Prolonged Discussions With The Government Of Ghana And Potential Partners With Regard To Ongoing Participation In The Offshore Accra Block, The Company Has Decided Not To Continue With Its Deepwater Exploration Acreage In The Offshore Accra Block, Ghana.

The Ghana National Petroleum Corporation (GNPC) Has Told Citi Business News It Is Likely To Finalize Its Move To Borrow Cash To Finance Its Operations In Three Weeks.

The state owned Oil Company last year announced its intention to borrow 700 million dollars to fund some of its operations. Its move to contract the loan without seeking parliamentary approval led to it being hurled to court by three Members of Parliament, Dr Anthony Akoto Osei (Old Tafo), Samuel Atta Akyea (Abuakwa South) and Dr Matthew Opoku Prempeh (Manhyia South).

The suit was however thrown out.

But the GNPC says it may borrow less than half of the 700 million dollars because of the drop in oil prices.

The original loan deal last year Citi Business News has learnt was based on oil prices of $110 per barrel.

The prices of oil on the world market this year fell to below $50 per barrel.

According to the CEO of the company Alex Mould, it may borrow between $350 million to $400 million from banks at an interest rate of about 3.9 percent.

Part of the cash will go into ENI project which is expected to cost 7 billion dollars.

GNPC holds 15 percent in the stake.

Tullow Has Announced It Paid Government Of Ghana A Total Of 313.5 Million Dollars In Taxes In 2014.

The cash comprises both direct and indirect taxes.

Of the 313.5 million dollars 115 million dollars went into income tax, 43.5 million dollars went into withholding tax, while 4.6 million dollars and 3.8 million dollars went into custom duties and Value Added Tax (VAT) respectively.

63 million dollars was paid for the TEN carry for Ghana National Petroleum Corporation (GNPC).

Tullow also paid 16.2 million dollars in PAYE and national insurance.

General Electric (GE) Has Announced It Will Sell Nearly All Of Its Property Portfolio, Worth $26.5bn, To Funds Including Wells Fargo And Blackstone.

The sale is the biggest commercial property deal in the US since 2007.

GE has been retreating from its property investments globally as it focuses on its industrial operations.

Without its properties, the company says it expects its other, “high-value” operations to bring in 90% of earnings by 2018, compared to 58% today.

The plan allows GE to buy back nearly two billion of its outstanding shares. A further $4bn of commercial real estate assets will be sold to other buyers.

GE said it hoped the divestment would make it a “simpler, more valuable” company.

Chairman Jeff Immelt said: “This is a major step in our strategy to focus GE around its competitive advantages.”

‘Less general’

In an effort to return to its roots in industrial business – such as energy management, water and aviation – GE is also shedding its financing and lending arm, because it feels market conditions are “favourable”, it said.

“GE has been under pressure for a number of years to focus on its industrial business,” Steven Winoker, managing director at financial analyst company Bernstein, told the BBC. “The reason they say the market is more favourable is because there are a lot of buyers out there who have approached GE.”

Furthermore, the US Financial Stability Oversight Council has declared several financial firms outside the banking sector – such as GE’s – to be so big that failure of those businesses could threaten markets.

“This move would relieve GE of the part of the business that is becoming volatile. Basically, they have to become a lot less general, and a lot more electric.”

GE’s share price rose 6% as investors lauded the move.

FMC Technologies And Technip Have Signed An Agreement To Form An Exclusive Alliance And To Launch Forsys Subsea, A 50/50 Joint Venture That Will Address The Way Subsea Fields Are Designed, Delivered, And Maintained, Thereby Uniting The Skills And Capabilities Of The Two Companies.

Bringing the industry’s most talented subsea professionals together early in the project concept phase, Forsys Subsea will have the technical capabilities, products and systems to significantly reduce the cost of subsea field development and provide the technology to maximize well performance over the life of the field.

By combining the industry-leading technologies of the parent companies, Forsys Subsea will reduce the interfaces of the subsea umbilical, riser and flowline systems (SURF) and subsea production and processing systems (SPS).

It will also simplify the seabed layout, reducing complexity, accelerating time to first oil, and maximizing sustainable peak production. This unique combination will drive a new, step-change approach to how equipment designs and installation methods converge in a new generation of subsea architecture.

Gathering the expertise and experience of its parent companies, Forsys Subsea will focus on:

Early involvement in the concept selection phase of front-end engineering and design (FEED), when the ability to influence cost is greatest. Integrated life-of-field well surveillance, monitoring, data interpretation and advisory services. Joint R

APM Terminals Mumbai Established A New Record For Indian Ports By Handling A Total Of 2.01 Million TEUs During The Fiscal Year Of 2014-15, Representing The Period Between April 1, 2014 To March 31, 2015.

APM Terminals Mumbai is one of three terminals currently operating at Jawaharlal Nehru Port (JNP), India’s largest container port, accounting for 45% of JNP’s throughput, and approximately 20% of India’s total container traffic. Larger vessels of the 9,000 TEU capacity class have begun calling APM Terminals Mumbai since 2013.

The deepening of the Mumbai harbor channel in 2014 combined with an increase in the vessel size and container volumes are contributing factors to the growth. The increase, however, is straining the existing Indian port infrastructure, which must also deal with regulatory issues which have held back further infrastructure investment.

“The need of the hour is to ensure we find an acceptable solution with the authorities on the longstanding issue of the tariff that we are allowed to charge at the terminal,” noted APM Terminals Mumbai, Chairman, Rizwan Soomar.

APM Terminals Mumbai has introduced a number of trade-friendly initiatives which have helped achieve faster gate turnarounds and increased productivity. Since the implementation of the new processes the terminal is handling an average gate throughput of 5,000 TEUs, compared with a previous daily throughput of 3,500 to 4,000 TEUs.

In February 2015, APM Terminals Mumbai set a new record for highest February volume recorded by an Indian container terminal, with 164,678 TEUs.

As part of its continuing efforts to provide a safe working environment to all stakeholders, APM Terminals Mumbai is now in the final stages of completing a container weighing project that will help to assure accurate weight declarations for loaded containers.

APM Terminals Mumbai, is part of the APM Terminals Global Terminal Network, and is a joint venture between APM Terminals and the Container Corporation of India (CONCOR-A Government of India undertaking).

Operating from Nhava Sheva’s Jawaharlal Nehru Port (JNPT), APM Terminals Mumbai is India’s largest container terminal handling facility in terms of container throughput (TEUs) accounting for nearly 45% of JN Port’s combined throughput and represents approximately 20% of India’s containerized cargo.

It is the first Indian terminal to feature among the Journal of Commerce (JOC) ‘Top Four’ global terminals for vessels working less than 8,000 TEU capacities.

The European Union Has Reimposed Sanctions on An Iranian Bank And 32 Of The Country’s Shipping Companies. According To EU, The Decision Is Based On A Newly Initiated Legal Issue.

According to the ruling, Bank Tejarat provided significant support to the government of Iran by offering financial resources and financing services for oil and gas development projects.

The reasoning behind restoring sanctions against the 32 shipping firms was their listing under ownership of the Islamic Republic of Iran Shipping Lines (IRISL), which was blacklisted previously. Eight companies have been removed from the list.

The 40 shipping companies involved in the case include Hamburg-based Ocean Capital Administration GmbH, Kerman Shipping Co. Ltd, Woking Shipping Investments Ltd, established in Valetta, Malta among others.

The European Council had already announced the reinstating of sanctions in a letter sent in March to the shipping firms’ lawyer Maryam Taher, claiming that the reasons for the blacklisting included the companies being owned or controlled by IRISL or providing training, spare parts and services to IRISL or its employees.

The decision comes in the wake of a framework agreement between Iran and members of the Security Council (Russia, China, the US, Britain, France) and Germany (P5 1) on the country’s nuclear program.

The framework deal stipulates that all nuclear-related sanctions imposed on the Islamic Republic of Iran will be lifted.

However, sanctions on Iran will only be lifted after a final deal, which is expected to be sealed by June 30.

The Apapa Area Command Of The Nigeria Customs Service Recorded An Impressive Revenue Generation Of N32.3billion In March Up From N21billion Generated Each In The Months Of January And February.

A breakdown of the revenue collected, as indicated in the revenue document shows that N15.7billion was generated into the federation account while N16.6billion was remitted into the non federation account.

The income was generated through levies collected on import duties, seven percent port levy, rice levy, sugar levy, wheat flour, one percent comprehensive Import Supervision Scheme (CISS), cigarette and iron among others.

Speaking on the revenue generation, Public Relations officer of the command, Emmanuel Ekpa said that the command witnessed increased activities in the month under review as importers and agents rushed to take delivery of their consignments before the just concluded presidential polls and the Easter holidays.

He said the rush to clear their consignments was what led to the traffic that resurfaced last week in Apapa. “When there is increase in importation, there will certainly be an increase in revenue collection. I don’t want to say there was low import because importation is not a day affair, although, work was at a slow pace because of the elections.

Before the presidential election and the Easter holidays, the traffic gridlock resurfaced in Apapa again. This was because people rushed in to take delivery of their consignments before the holidays and even some of those that were apprehensive of the aftermath of the elections also cleared their goods,” he said.