Africa Briefs

Russia eyes Zim diamonds, platinum

Russia's Foreign Minister Sergei Lavrov on Thursday met with Zimbabwe's new President Emmerson Mnangagwa and discussed possible military co-operation as well as plans to boost economic ties.

Lavrov, who is on a tour of Africa, is the first high-profile Russian official to visit Zimbabwe since veteran ruler Robert Mugabe's resignation in November last year.

"We emphasised the implementation of the joint project of exploring the Darwendale platinum deposits," he said.

The project is one of the largest of its kind in the world and is run by a Zimbabwean-Russian joint venture.

"[We] also had a good conversation about the good prospects of cooperation in the diamond industry." – Nampa/AFP

Angola to launch big oil block

The first vessel that will pump and store oil for Angola's 230 000 barrels per day (bpd) Kaombo project is en route to the West African nation, operator Total said.

The Kaombo oil block will produce its first oil this summer, Total said on Thursday. Once it is fully up and running, it will add roughly 14% to the OPEC member's average 2017 output of 1.632 million bpd.

The US$16 billion offshore project will add a significant amount of oil to Africa's number two exporter at a time when it is bound by output limits under a deal orchestrated by the Organisation of the Petroleum Exporting Countries.

A source close to the project said the block was expected to pump roughly 100 000 bpd by August.

OPEC is reducing output by roughly 1.2 million bpd as part of a deal with Russia and other producers that began in January 2017 and was extended until the end of 2018.

So far, Angola has complied comfortably, pumping even less than the maximum agreed. Last month, its output of 1.6 million bpd amounted to 194 percent of compliance with promised cuts of 78 000 bpd. – Nampa/Reuters

Egypt reviews airline incentives

Egypt is reviewing a system of incentives for airlines that were put in place to bring back foreign visitors, the new tourism minister said on Thursday.

Egypt's tourism industry, a crucial source of hard currency, has suffered in the years of turmoil that followed the 2011 uprising, as well as from the suspected bombing of a Russian plane in Sinai in 2015, which killed all 224 people on board.

Cairo has been offering airlines such as easyJet and tour operators such as TUI and Thomas Cook incentives to bring in more tourists.

Egypt currently pays US$4 000 for every flight to Hurghada or Marsa Alam that is at least 80% full, and for flights to Sharm el-Sheikh on which at least 65% of seats are filled.

Airlines receive higher incentives if they offer many flights to an Egyptian destination. The programme is due to expire in October. – Nampa/Reuters

Tunisia central bank can't defend dinar

Tunisia's central bank cannot defend the dinar with foreign reserves that now cover less than 80 days of imports, while some of the country's economic indicators are "frightening", the bank's new governor Marouane El Abassi said on Thursday.

Tunisia has dropped into a deep economic slump since its autocratic leader, Zine El-Abidine Ben Ali, was overthrown in 2011. Since then, nine governments have failed to cut the budget deficit and the country needs US$3 billion in foreign loans this year alone.

By Thursday, foreign reserves covered 77 days of imports, compared with 112 days in the same period last year. The dinar has dropped more than 40% against the euro and dollar since 2011.

Tunisia's current account deficit also hit 10% for the first time, reflecting "frightening" economic indicators that show the depth of the country's troubles, Abassi said.

Tunisia has been praised as the only potential success story among the nations where "Arab Spring" revolts took place in 2011. But successive governments have failed to trim deficits and create economic growth, and the country is under pressure from international lenders. – Nampa/Reuters