Items filtered by date: Wednesday, 22 August 2018

There are indications that Nigeria's oil has been over-supplied as 30 unsold cargoes await buyers in the international market.

However, an oil market update obtained yesterday showed that the cargoes were scheduled for the August and September, 2018 deliveries, and buyers may come up before the end of the scheduled deliveries.

Reuters which confirmed the development stated, "There are almost 30 unsold cargoes from the August and September programmes, traders said, in addition to newly released October underlining plentiful supply. 

"Qua Iboe: A prompt cargo was said to have traded at dated plus $1 or below, a relatively low level for the grade last valued by Reuters at dated plus $1.15. "Forcados: A cargo was said to have traded at about dated plus $1.30, 10 cents above a bid from Vitol on Monday. It was not possible to confirm who bought or sold the cargo."

It also stated, "Angola is set to export 49 cargoes in October after four cargoes of Gindungo, a new grade, were added to the preliminary programme. September had 47 cargoes".

The report tends to check a possible spike in oil prices early in the week, just Brent price moved to $72 per barrel, up from $71 it recorded on Monday.

However, the Organisation of Petroleum Exporting Countries, OPEC, said it was committed to achieving increased market stability. In a statement sent to Vanguard, it said, "The JMMC (Joint Ministerial Monitoring Committee) reported that participating countries in the Declaration of Cooperation have achieved a conformity level of 121 percent in June 2018.

"The JMMC also considered market conditions for the month of July as well as individual country production levels for this month and was satisfied that overall performance will not deviate from the 100 percent conformity targeted by the decision reached at the 4th OPEC and Non-OPEC Ministerial meeting on June 23. The committee decided to continue closely monitoring oil market conditions and developments with a view to improve market stability for the benefit of producers, consumers and the global economy at large.

"The committee reaffirmed its intent to strive to achieve an overall conformity level of no less than 100 percent. Furthermore, the JMMC decided to hold monthly meetings (physically or by teleconference) with the objective of more closely monitoring the market and recommending appropriate response measures."

 

Source: Vanguard

Published in Business

The Emerging Africa Infrastructure Fund (EAIF), today [DATE] announced financial close of its 11-year US$35 million loan to Indorama Eleme Fertilizer & Chemicals Ltd (IEFCL). The transaction is part of the financing of a US$1.1 billion expansion of the company’s existing fertiliser plant at Port Harcourt, Nigeria.

The new plant is to be built alongside the existing facility. It will double the company’s output annually to 2.8 million metric tonnes.

EAIF is member of the Private Infrastructure Development Group (PIDG).  PIDG encourages and mobilises private investment in infrastructure in the frontier markets of sub-Saharan Africa, south and south-east Asia, to help promote economic development and combat poverty.

“Leading role”

Commenting on the expansion of IEFCL’s Port Harcourt plant,  Indorama Africa’s Chief Executive Officer, Manish Mundra, says:

“Nigeria has enormous potential to achieve agricultural self-sufficiency and food security. This is evident from the multi-fold increase in domestic fertiliser consumption after the start of Indorama’s first plant. Nigeria has also become a major hub for urea exports. With Line 2, we aim to further expand our ability to provide competitively priced and high-quality fertiliser to farmers in West Africa and across the globe.  Indorama is looking forward to continuing to contribute to Nigeria’s economic development.

“I am delighted that PIDG company EAIF is again assisting us grow our business and that IEFCL and EAIF are helping power Nigeria’s economic development.”

EAIF previously provided loans of US$48.8 million towards construction of IEFCL’s first Port Harcourt fertiliser plant, which is now operating at full capacity. The new plant will share the existing infrastructure that supplies energy, water and port facilities. The infrastructure at the adjacent port of Onne is to be expanded to meet the needs of the enlarged fertiliser plant. An additional 11km of new gas pipeline that serves the IEFCL facility has already been added to the 84km installed when the present plant was constructed.

“Help combat poverty”

EAIF Chair, Patrick Crawford, says;

“A successful and productive agriculture sector is essential to Nigeria’s future. The new plant for Indorama Eleme can benefit farming communities across Nigeria, which will help combat poverty, stimulate employment and improve the resilience of the Nigerian economy. Projects like IEFCL’s Port Harcourt expansion are of fundamental strategic importance and of exactly the type PIDG and its companies are there to support.”

Reducing imports and boosting jobs

The project directly supports the Nigerian government’s initiative to eliminate the importation of urea and to meet rising local demand for urea fertiliser. 3,830 people are to be hired to build the new plant. 608 people will have permanent jobs when it comes on stream.  Construction is expected to take up to 37 months.

“Prime example of blended finance”

Nazmeera Moola, who heads the EAIF team at Investec Asset Management, says; “The Port Harcourt project is a prime example of EAIF’s finance making big infrastructure projects possible and developing private banks’ confidence to invest in emerging markets.

“International private sector banks have been attracted to support the project because of the track record of IEFCL and the structure of the finance, which sees debt providers like EAIF supply 11-year loans, while private banks have preferred 8-year loans. It’s a prime example of blending public and private capital to the strategic benefit of the Nigerian economy and delivering tangible benefits to millions of people”.

Indorama Corporation in 29 countries

Indorama Eleme Fertilizer & Chemicals Ltd is 75.9% owned by Indorama Corporation Pte Ltd, one of Asia’s leading chemicals holdings companies. Along with its subsidiaries and key associates, it currently has 77 manufacturing complexes in 29 countries in Asia, Africa, Europe, CIS and North America. It employs over 31,000 people from c35 nationalities and has revenues of cUS$11 billion.

The lending group

The International Finance Corporation was Joint Mandated Lead Arranger with EIB, Yes Bank, CDC, African Development Bank, Bank of Baroda and Standard Bank. In addition to the Emerging Africa Infrastructure Fund, the other banks and development finance institutions supporting the financing are Standard Chartered Bank, Bangkok Bank, FMO, DEG, PROPARCO, ICICI and Citibank. IFC will directly lend US$100 million and mobilise an additional US$850 million of loans from the other developmental financial institutions and commercial banks. Another US$50 million in financing will be available from IFC’s Managed Co-Lending Portfolio Program.

Published in Bank & Finance
Booking a learners or drivers license test in South Africa has never been the easiest thing in the world. The new online system is sure to change things up.
 
While a strike at the office that makes the license cards had caused some worry in recent weeks, getting a slot for your learners or drivers license test is about to become a whole lot easier. The Road Traffic Management Corporation (RTMC) is finally looking to keep up with the digital times in 2018.
 
RTMC to offer new online drivers license test bookings
 
On Friday, the RTMC unveiled a plan that is sure to make millions of young South Africans lives a lot easier. Yes, from September, you will be able to begin to book your learners and drivers licenses online.
 
The new system will begin to be rolled out in Gauteng in September and will then move its way to other provinces after assessing how well the system worked and if there were any issues.
 
Those looking to book their tests will be able to choose the date, time and place for their test. Want to book your test at a traffic department on the other side of the province, that is easily doable. Seriously, you won’t even be required to go in beforehand.
 
RTMC spokesperson Simon Zwane has been doing the media rounds explaining why the system was needed and what it does for people.
 
“I think this will be convenient for the members of the public because now you will be going to the centres to pay for your appointment and do the eye test and from there will be no interaction with officials and officials won’t have the opportunity to block bookings.”
 
Zwane explained that fraud and corruption have played a huge part in there being a need for an online method. In some cases, corrupt driving schools are even paying for certain slots to be booked with specific traffic officials.
 
“We have found that spaces are being blocked to enable people who are coming from the corrupt networks to be able to do tests on a particular date and a particular time. We want to deal with that so people have equal opportunity and the handling of officials,” Zwane says.
 
Let’s hope the system launch goes relatively smoothly.
 
Source:IreportSouthAfrica
Published in News Economy
South Africa’s Upper House of Parliament, the National Council of Provinces (NCP), on Tuesday approved the controversial National Minimum Wage (NMW) Bill which will be sent to President Cyril Ramaphosa for assent.
 
The Parliament said the NCP approved the bill without amendment.
 
The bill, which Minister of Labour Mildred Oliphant introduced in November 2017, aims to provide for a NMW and the establishment of a commission with clear functions and composition for implementation, Parliament spokesperson Moloto Mothapo said.
 
The National Assembly (Lower House of Parliament) had earlier approved the bill and referred it to the NCP. Once signed by Ramaphosa, the bill will become law.
 
The bill sets 3,500 rand (about 243 U.S. dollars) per month or 20 rand (about 1.4 dollars) per hour for over six million working people in the country.
 
Trade unions have lambasted the NMW as “slavery wage,” saying the working class cannot make both ends meet with the meagre NMW.
 
In May, massive protests against the bill took place across the country.
 
Trade unions have threatened to stage more protests if the NMW wage is not raised to a living wage.
 
The government says setting the NMW was informed by research and robust analysis of various scenarios and their possible ramifications, not by some idealistic desires.
 
All social partners have worked hard for nearly three years to reach agreement on the NMW to improve the conditions of millions of poor families, according to the government.
 
Ramaphosa has pledged to increase the NMW over time in a way that meaningfully reduces poverty and inequality.
 
Source: PMNEWSNIGERIA
Published in News Economy
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