Africa Briefs

SA seeks to reopen costly renewables dealsSouth Africa wants to talk to independent power producers (IPPs) about lowering the price Eskom pays for electricity from older renewable energy projects, a senior minister told Reuters, as the state utility struggles to emerge from a financial crisis.Eskom supplies more than 90% of South Africa's power but is drowning in debt after a decade of decline. It implemented power cuts for five consecutive days last week because of breakdowns at its creaking fleet of mainly coal-fired power stations.The power prices Eskom pays for later renewables projects are considerably lower because technology and finance costs in the renewable energy sector fell by the time they were agreed."The simple assurance is that this is not about scrapping a contract. This is about exploring possibilities that are created by the rapid fall in costs in the renewable sector, whether that's solar or wind," public enterprises minister Pravin Gordhan said."There are players in the renewables industry who are saying let's talk." Gordhan said he wanted to reassure IPPs that the South African government would be careful about how it handled any negotiations over power prices. "We are a law-abiding country ... We need to look after the interests of everyone concerned," he said. – Nampa/ReutersSomalia denies Kenya claims in maritime border spatSomalia on Sunday rejected accusations by Kenya that it had auctioned off oil and gas blocks in a disputed maritime area.Nairobi on Saturday recalled its ambassador from Mogadishu for "urgent consultations" over the maritime border dispute that involves lucrative offshore oil and gas deposits.The International Court of Justice in The Hague, which rules in disputes between countries, has been hearing a case brought by Somalia against Kenya over the dispute.Mogadishu's case against Nairobi focuses on an attempt to redraw the sea border which would affect at least three of Kenya's 20 offshore oil blocks.The disputed triangle of water, which stretches over an area of more than 100 000 square kilometres, is believed to hold valuable deposits of oil and gas in a part of Africa only recently found to be sitting on significant reserves. – Nampa/ReutersUganda calls on mobile money to cultivate new debt investorsUgandans will be able to buy government securities through a mobile money platform in a move by the east African country to become less dependent on commercial banks and institutional investors for its funding.The government said the measure would boost savings and investment among ordinary Ugandans as well as driving economic growth.Ugandans with mobile money accounts, many of whom had limited access to banks, will now be able to directly buy government debt. The move follows a similar move by Kenya in 2017 and will also open the market up to Uganda's Diaspora.Of Uganda's population of 41 million, about 23.6 million are mobile phone subscribers.Uganda has traditionally auctioned its debt – mainly Treasury bills and bonds - via bids submitted through commercial banks who act as primary dealers and the government expects the mobile money plan to cut its cost of borrowing.Ethiopia, Djibouti sign deal to build gas pipelineEthiopia and Djibouti have signed a deal to build a pipeline to transport Ethiopian gas to an export terminal in the Red Sea state, officials said.Ethiopia found extensive gas deposits in its eastern Ogaden Basin in the 1970s. China's POLY-GCL Petroleum Investments has been developing the Calub and Hilala fields there since signing a production sharing deal with Ethiopia in 2013.The agreement between Djibouti and Ethiopia comes more than a year after POLY-GCL signed a memorandum of understanding with Djibouti to invest US$4 billion to build the natural gas pipeline, a liquefaction plant and an export terminal to be located in Damerjog, near the country's border with Somalia.It was envisaged that production would start last year, but the Ethiopian government said that was now likely to happen in 2020.POLY-GCL is a joint venture between state-owned China POLY Group Corporation and privately owned Hong Kong-based Golden Concord Group. – Nampa/Reuters

Africa Briefs

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Namibian Sun 2025-07-16

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Africa Briefs

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Namibian Sun 2025-07-16

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