KPMG: African mining has potential to grow stronger

Africa is the most mineral-rich continent in the world and has the potential to become a mining mecca, says global consulting firm KPMG.

The firm explains that mining companies are attracted to Africa by the low cost of labour and encouraged by the developing regulatory framework for the mining industry. As Africa has minerals, such as coal, diamonds, gold, uranium, platinum, iron-ore, rock salt and potash available for exploitation, the opportunity for developing mines to grow is large.

KPMG mining global lead Jacques Erasmus points out that African countries such as Zambia, Uganda, Tanzania, the Democratic Republic of Congo (DRC), Sierra Leone, Ghana and Angola are all in the top lists of the fastest emerging economies in the world.

Africa’s largest Coca-Cola bottler begins operations

Africa’s largest bottler, Coca-Cola Beverages Africa (CCBA), on Monday opened its doors for the first day of operations.

The new company, which is the 10th largest Coca-Cola bottler worldwide, would produce and distribute approximately 40% of all Coca-Cola beverage volumes in Africa.

Headquartered in South Africa, CCBA would manufacture and sell 40 still and sparkling brands from more than 30 African bottling plants.

CCBA would serve 14 high-growth countries including Tanzania,Namibia, Kenya, Uganda, Ethiopia, Mozambique, Ghana, Mayotte, Comoros and Nigeria. Botswana, Swaziland and Zambia are expected to be included in the next 12 to 18 months.

Doug Jackson, chief executive of CCBA said the creation of CCBA provides a stronger, more successful Coca-Cola system in Africa.

Bakhresa Group and Verde Hotels ink deal to build Zanzibar’s Greenest Hotel

The Tanzanian based Bakhresa Group has appointed Verde Hotels from South Africa to develop and manage the total overhaul and upgrading of the old Mtoni Marine Hotel in Zanzibar, 2km from Stone Town. The brand new five star properties will be known as Hotel Verde, Zanzibar’s greenest hotel.

“We are serious about being the leaders of the Green Economy sector and therefore we approached the developers of Africa’s Greenest Hotel, Verde Hotels to ensure that Hotel Verde Zanzibar will be the Greenest hotel in East Africa” stated Mr. Said Salim Awadh Bakhresa, Chairman of the Bakhresa Group.

Hotel Verde Zanzibar is set to take sustainable development to new heights in East Africa and become a flagship for tourism in Zanzibar and Tanzania.

Mr. Bahkresa has commissioned the Verde Hotels Group to manage the development and operate the hotel as a certified sustainable establishment that offers a carbon neutral hotel experience.

Tanzanian tycoon Said Salim Bakhresa to invest $30m in Zimbabwean Flour Mill

Tanzanian multi-millionaire Said Salim Bakhresa is set to spend $30 million in acquiring a controlling stake in Blue Ribbon Industries (BRI), a flour milling company in Zimbabwe.

According to the Zimbabwe Mail, Bakhresa Group, one of Tanzania’s largest conglomerates, has officially notified Zimbabwe’s Competition and Tariff Commission that it plans to acquire a 100% shareholding in the troubled miller.

In 2014, Bakhresa Group won the bid to acquire a controlling shareholding in BRI after its core shareholders invited tenders for prospective investors to either buy BRI, or inject capital to revive the operations of the floundering company. BRI, which manufactures bread flour and stock feed, had been battling cash flow problems and was struggling to repay loans it owed to a consortium of Zimbabwean banks and trading partners.

Tanzania predicts 7.4 pct economic growth in 2017

Tanzania's central bank said on Tuesday it expects economic growth to accelerate to 7.4 percent in 2017 from an estimated 7.2 percent this year, driven by construction, communications and finance.

The Tanzanian economy, East Africa's second-biggest, grew 7 percent last year.

"The macroeconomic objectives of the government aim at achieving a real gross domestic product growth of 7.3 percent in 2016/17 based on the projected growth of 7.2 percent in 2016 and 7.4 percent in 2017,

Fastjet to raise funds as competition bites

African budget carrier Fastjet Plc said it needed to raise further funds to have sufficient working capital and implement changes as its operations had remained cash negative in a challenging domestic aviation market.

London-listed shares in the company, which has seen the departure of two top executives under pressure from its second-largest investor, were down about 25 percent at 22.94 pence at 0719 GMT.

Shanta embarks on underground project after securing approvals

The decline development at the New Luika gold mine has started after Aim-listed Shanta Gold secured all the required approvals for the Tanzania mine to move from a surface operation to a high-grade underground mining operation.

The East Africa-focused gold producer, developer and explorer was becoming increasingly underground focused, with a fairly new base case mine plan showing the production of 443 000 oz – 133 000 oz openpit and 310 000 oz underground – from 2016 to 2022.

Gold prices push above $1,300 per ounce

The gold market appears to be forecasting a “leave” victory as prices have pushed above $1,300 an ounce Thursday evening.

With 62% the polls reporting in, support for Britain to leave the European Union is at 51.2% with the “remain” camp garnering 48.8% of the vote.

Financial markets have been extremely volatile in what has been a neck-and-neck battle in this referendum. The biggest loser in this race has the British pound, which has lost 7.8% against the U.S. dollar, hitting an overnight low at $1.365.

As most gold market analysts have expected, gold has benefited from volatile currency markets.

TCRA disconnects over 600,000 counterfeit mobile phones

Tanzania's telecoms regulator has disconnected over 600,000 mobile phones from mobile networks in an effort to stamp out counterfeit devices that it says are often used for fraudulent transactions on mobile payment systems and in other crimes.

Poorly made counterfeit phones, imported mainly from Asia, are prevalent in many African nations and regulators say they are widely used by criminals because they are difficult to track.

Armadale Capital to acquire Tanzania graphite project

Aim-quoted natural resources project developer Armadale Capital has entered into an agreement to acquire the Mahenge Liandu graphite project, in south-east Tanzania.

The company entered into the agreement with Australian company Graphite Advancement Tanzania (GAT), which, through a Tanzanian subsidiary, owns or has the right to 100% of the tenements that constitute the Liandu project.

“This transaction creates a significant opportunity for Armadale in an industry with exciting demand fundamentals. Graphite is the raw material in lithium ion batteries, which are used to power electric vehicles, as well as being a critical factor in the energy storage revolution currently taking place,” Armadale chairperson Peter Marks noted in the company statement released earlier this month.