Thanks to the power of compound interest, saving is the one part of your life where you cannot procrastinate.
“Compound interest makes the most of time, exl addition of interest to the initial sum invested, reinvesting this money for the next compounding period for the entire term of your investment,” Sutherland said.
As an example, the Naidoo’s decide to invest R1 000 per month for their child’s tertiary education in 18 years time, investing consistently from the time the child is born. Capital growth and interest are added back into the investment. At an assumed growth rate of 10% per annum, the value at the end of 18 years would be R600 500 and the total contributions would have been R216 000.
The Smiths only start saving for their child’s education when the child is 10 years old, and also require R600 500 in 8 years’ time to fund tertiary education. “They would however have to save R4100 pm for 8 years to achieve this, a total contribution of R393 600. By starting 10 years later, the Smiths have to contribute an additional R177 600 for the same final result.”
Sutherland said this example was amplified when it came to retirement savings, because this is usually a 40-year term.
“Based on a growth rate of 10% per annum, if one saves R1 000 a month, the capital amount after 20 years would be R759 300. If one saves R1 000 per month for 40 years, the value would be R6.3-million. At a draw rate of 6% per annum, the income at retirement on R759 300 would be R3 800 per month and on R6.3-million, would be R31 600 per month. This is before any taxes have been taken into account. If the income is coming from a retirement source income tax will be payable and if the income is coming from a discretionary investment tax on interest, dividend and CGT will be payable. The effective CGT rate would range between 7.2% and 18% depending on the client’s marginal tax rate at the time of withdrawal.
The total contributions for the client who saved for 20 years was R240 000 and the contributions of the client who saved for 40 years was R480 000, yet the difference in their values at retirement was a massive R5.5 million.
Sutherland says “Market volatility will occur, but the beauty of rand cost averaging, is that by consistently investing every month towards your investment goal one would buy the market at a different price every month. Looking back over all long-term time periods, markets have increased over time.”
For employees who are part of a company retirement fund, monthly contributions will be made to the fund either through salary sacrifice or employer contribution. “Usually, this is the cheapest way to save because your company will be able to negotiate better investment and administration fees than an individual. Should you begin with your company retirement fund at age 25, then 19% of your salary should be sufficient should you continue with this for the next 40 years and not cash in your funds on resignation or retrenchment, but rather preserve them. Should you start working later, then you would need to invest a higher percentage of your salary to compensate for your lack of compound growth in previous years.” A certified financial advisor would be able to do the calculations for you as to how much you need to save per month to reach your retirement goal.
Sutherland advises setting up a monthly debit order towards an investment as soon as one starts working. “This is an excellent way to save for a house, children’s education or towards retirement.  You would get used to not having that money in your bank account every month and would budget accordingly. As your salary increases each year, you can build in an annual escalation to your debit order. The sooner you start the better.”

The power of compound interest

The board of South Africa&#8217;s state-run power utility Eskom will pursue disciplinary action against former acting chief executive, Matshela Koko, who allegedly violated procurement rules, the company said on Wednesday.
Eskom&#8217;s moves come against the backdrop of growing graft, governance and financial concerns regarding South Africa&#8217;s public companies, whose woes are pressuring the Treasury at a time when the economy is stuck in a recession.
Eskom&#8217;s executives also denied at its annual results presentation that it was financially stressed and said it would look to seek funding options without the traditional government guarantees it has enjoyed. The firm provides virtually all of the power for Africa&#8217;s most industrialised economy.
Eskom&#8217;s results were due to be released last week but were delayed after it said external auditors had raised &#8220;two reportable irregularities&#8221;.
One of these related to Koko, who allegedly violated procurement rules by giving contracts to a firm where his stepdaughter was a director.
The company&#8217;s finances have also been under the spotlight but chief financial officer Anoj Singh said: &#8220;With the information we have at hand we cannot describe Eskom as financially stressed&#8221;.
The company said it has secured 53 percent of the funding it required for its 2017/18 financial year, which runs to the end of March. It&#8217;s net profit fell by 83 percent last year to 1 billion rand ($77 million).
($1 = 12.9193 rand)
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Additional reporting by Mfuneko Toyana; Writing by Ed Stoddard; Editing by James Macharia
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Eskom to take action against former acting CEO

South African retail sales rose by 1.7 percent year-on-year in May, beating market expectations, after increasing by revised 2 percent in April, data from the statistics office showed on Wednesday.
Analysts polled by Reuters had forecast a 0.3 percent year-on-year fall in retail sales in May.
On a month-on-month basis, sales rose by 0.9 percent and were up 1.5 percent in the three months to May compared with the same period last year, Statistics South Africa said.
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Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia
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South Africa’s retail sales up 1.7%

Vodacom Tanzania has extended the offer period for its initial public offering for a second time to allow foreign investors to take part, the telecom operator said on Wednesday.
The company, a subsidiary of South Africa&#8217;s Vodacom Group, said it had received approval from Tanzania&#8217;s capital markets regulator to extend the offer period until July 28 after the country changed its laws to allow foreigners to buy telecoms shares.     &#8220;This extension will help ensure participation by international investors,&#8221; the company said in a statement.
A listing on the Dar es Salaam Stock Exchange was tentatively set for Aug. 15, the company said.    The government lifted a ban on foreigners participating in telecoms IPOs last month, a move expected to widen the pool of potential investors for several major companies.    Vodacom plans to raise 476 billion shillings ($213.07 million) by selling 560 million shares at 850 shillings each.     Traders said purchase of the shares by local investors was slow even after the offer period was extended twice due to concerns about adequate liquidity in the local market.    Telecom operators are required by law to have 25 percent local ownership via IPOs at the local bourse.    The government hopes the listings will bring more transparency and offer the public a share in the industry&#8217;s profits.    Two other major telecoms operators, Millicom&#8217;s subsidiary Tigo and the local business of India&#8217;s Bharti Airtel, have also submitted prospectuses to the regulator and are awaiting approval for their IPOs.    The number of mobile phone subscribers in Tanzania rose by 0.9 percent in 2016 to 40.17 million. Mobile phone use has surged over the past decade, helped by the launch of cheaper mobile phones.
($1 = 2,234.0000 Tanzanian shillings)
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Reporting by Fumbuka Ng&#8217;wanakilala; Editing by Duncan Miriri and Jane Merriman
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Vodacom Tanzania extends IPO deadline

Nigeria&#8217;s telecoms regulator has approved Etisalat Nigeria&#8217;s name change after its Middle East parent pulled out following regulatory intervention to save the local company from collapse due to debt, the company said.
The Nigerian Communications Commission (NCC) has been notified of the new name, 9mobile, the company said, adding that Etisalat Nigeria had started the process of rebranding. The company is due to unveil the new brand on Wednesday.
&#8220;Etisalat Nigeria wishes to inform its over 20 million subscribers, government, regulatory agencies &#8230; the telecommunication company has changed its name to 9mobile,&#8221; 9mobile said.
The move was to ensure business continuity of Nigeria&#8217;s fourth largest telecom operator, it said in a statement.
Etisalat Nigeria had been in talks with its lenders to restructure a $1.2 billion debt after it missed repayments but the discussions failed to produce a deal, forcing the banks to step in.
UAE&#8217;s Etisalat terminated its management agreement with its Nigerian business in June and gave it three weeks to phase out the brand after it had to surrender its 45 percent stake to a trustee because of the debt crisis.
Under Nigeria&#8217;s telecoms law, the NCC has to approve a transfer of telecoms licences or any new investor in a telecoms company with more than 10 percent of the shares.
Etisalat Nigeria&#8217;s lenders have now taken control and appointed a new team to manage the company with a focus on getting it back to profitability while working to eventually raise new capital.
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Editing by David Clarke
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Telecoms regulator approves Etisalat Nigeria name change

Like many other men and women in Mozambique’s capital, Maputo, Agostinho feels optimistic about the future. After years of living in extreme poverty, he now has his own business and lives with his family in Zimpeto, a growing neighbourhood in the northern outer end of Maputo.
One of the things that has made the biggest difference to him and his family’s life has been improvements in the energy system. In Zimpeto his household is linked to the electricity grid. Agostinho buys electricity through a prepaid system called <a href="http://www.edm.co.mz/index.php?option=com_content&amp;view=article&amp;id=63&amp;Itemid=67&amp;lang=en">Credelec</a>. Thanks to Credelec Agostinho has <a href="http://onlinelibrary.wiley.com/doi/10.1111/1468-2427.12314/full">greater control</a> over his electricity spending but prices have gone up and he’s now paying more. Using electricity for cooking is too expensive.
Thus, the game changer in Agostinho’s life has been the arrival of gas. Until last year, the family relied entirely on charcoal for all their cooking needs, a <a href="https://extra.shu.ac.uk/ppp-online/wp-content/uploads/2014/12/communities-urban-energy-mozambique.pdf">common occurrence</a> in Maputo’s low income neighbourhoods. Last year he invested in a new gas cookstove and a gas cylinder. The convenience soon became apparent. The gas stove cooks faster, is cleaner and can be used inside the house. While the cookstove and gas cylinder cost a fair amount, this represents a significant advancement.
The benefits of gas improved further when in June this year <a href="https://noticias.mmo.co.mz/2017/06/preco-de-de-gas-domestico-reduz-em-mais-de-40.html">the price halved</a>. An 11kg bottle that used to cost US$13 (773 MZN) now costs US$7 (446 MZN), making it cheaper than charcoal. In a country where firewood and charcoal account for <a href="https://www.iea.org/statistics/statisticssearch/report/?country=Mozambique&amp;product=balances">77%</a> of the total energy balance, the transition to gas can make an enormous difference to the lives of the poorest people.
The drop in prices came just after Mozambique’s Minister of Mineral Resources and Energy, Leticia Klemens, and the Vice-President of Shell, Clare Harris, signed a <a href="http://clubofmozambique.com/news/mozambique-government-and-shell-enable-local-use-of-rovuma-basin-gas/">memorandum of understanding</a> for the domestic exploitation of Mozambique’s gas reserves in the Rovuma Basin. This is one of the <a href="http://www.facing-finance.org/en/database/cases/rovuma-basin-mozambique-gas-explorationrovuma-becken-mosambik-erkundung-von-gasfeldern/">largest</a> reserves of natural gas in southern Africa. The announcement of the agreement alone has been sufficient for the government to drop consumer prices.
The agreement follows a public tender to exploit gas reserves for domestic purposes. The government also awarded <a href="http://af.reuters.com/article/commoditiesNews/idAFJ8N1E702P">two other projects</a>. In the past, Mozambique’s energy policy focused on generating revenue <a href="http://www.sciencedirect.com/science/article/pii/S2214629616300354">through</a> exporting natural resources, such as hydropower and coal, at the expense of developing internal markets. If maintained, these projects will mark a significant departure from previous energy policies.
The one dark cloud hanging over this development is the <a href="https://www.theguardian.com/global-development/2017/jan/27/mozambique-fabulous-wealth-gas-reserves-pay-nurses-debt-crisis">country’s debt crisis</a>. Many expect that gas revenues will help palliate the consequences of this odious debt, but gas is still <a href="https://www.ft.com/content/be682056-5cc2-11e7-b553-e2df1b0c3220?mhq5j=e2">not flowing</a>. After last year’s scandal, the government is anxious to show that it’s able to mobilise the country’s natural gas reserves to benefit ordinary Mozambicans.
<h2>Difficult transition</h2>
The drop in gas prices was a key theme at a <a href="http://www.britac.ac.uk/sustainable-energy-access-mozambique-socio-political-factors-conflict-laden-urban-areas">workshop</a> with local leaders of some of the poorest neighbourhoods in Maputo.
“People are transitioning to gas”, explained one participant. This transition is clearly visible in Maputo. The charcoal-based urban landscape is disappearing. Gone are the days when there was a charcoal-selling point in every corner, although the charcoal depots remain strong in large markets. As deforestation advances, charcoal is produced farther and farther away, with most coming from the relatively unstable province of Gaza. Charcoal is now so expensive that gas has become a more affordable option for many people.
Yet, for now, charcoal continues to be the <a href="http://www.sciencedirect.com/science/article/pii/S0301421517300095">fuel of choice </a> for most households in Maputo. The transition to gas is, as yet, incomplete.
In their discussions, local leaders explained that gas is the new norm in cooking practices but most households have not yet adopted it. A heated discussion emerged about why people continue to use charcoal. Is it because gas cookstoves are too expensive? Is it because people prefer to cook with charcoal through habit? Or are they used to the taste of the meat cooked with charcoal? Perhaps people are unaware of the possibilities of gas and how to use it? Or maybe many families perceive gas to be unsafe?
One neighbourhood leader said:
<blockquote>We are just like this, it is difficult to change us!</blockquote>
He said this to justify the need for civic education. Yet, it’s not people who have to change. Rather, a range of institutional, infrastructural and socio-economic factors determine the possibilities for sustainable transitions to universal energy access. For example, in some neighbourhoods, accessing gas supplies is difficult whereas charcoal sellers will bring charcoal right to the door of households in portions small enough to be affordable on a day-to-day basis. Moreover, households may not provide a safe setting to install a gas cookstove, even when the family can afford it.
The transition to gas is not inevitable. As one of the community leaders in the workshop stated, “accessing energy is a process”. Gas may contribute to improve the lives of Maputo’s inhabitants. However, this depends on a gradual process of adjustment of local practices of energy use, changes in the built environment to fit gas technologies and the development of local energy markets to facilitate access to gas supplies.
*Names are pseudonyms

Maputo’s residents can now use gas. But dropping charcoal is proving hard

Nigeria&#8217;s central bank has extended guarantees to Skye Bank for another year while it considers the bank&#8217;s recapitalisation proposal, the mid-tier lender said in a statement.
The central bank shored up the Skye last year with a 100 billion naira ($328 million) capital injection, after sacking its top management for failing to meet minimum capital requirements. It then appointed a new management team.
The bank said it had recovered 60 billion naira in bad loans, closed some branches and sold four subsidiaries to boost capital in the past year.
Skye&#8217;s problems started after it used short-term funds to buy local lender Mainstreet Bank in 2014 but failed to raise fresh cash. It was in talks with shareholders and investors last year to raise 30 billion naira but suspended the plans when weak oil prices hit capital markets and drove foreign investors away.
&#8220;The bank continues to require assistance from central bank and government as it repairs the damage inflicted on the institution in the past and charts a sustainable path forward for the bank,&#8221; Skye bank said in a statement.
It said it had reached restructuring agreements with many of the chronic bad debtors resulting in improved payments and prospects of future recoveries, it said in a statement.
Skye shares rose more than 3 percent on Tuesday and were up 16 percent this year, after last year&#8217;s 68 percent plunge.
The bank, which posted a pre-tax loss in 2015, said it had submitted its 2016 accounts for approval.
The central bank designated Skye as one of Nigeria&#8217;s systemically important banks due to the size of total deposits it holds after it acquired Mainstreet Bank. This means it has to increase its capital ratio to 16 percent, the industry average.
The bank said it has appointed advisers to guide it on a recapitalisation process and that it has identified various options with proposals being considered by the central bank.
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Editing by Mark Potter and Edmund Blair
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Nigeria’s Skye Bank says central bank support extended

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Ghana will not extend its three-year aid programme with the International Monetary Fund beyond April 2018, President Nana Akufo-Addo said on Tuesday, despite continuing fiscal difficulties.
The president&#8217;s announcement is a surprise turnaround after government officials said last month that Ghana was considering a request by the Washington lender to extend the programme to December 2018.
An extension would have reassured markets of the government&#8217;s commitment to fiscal discipline, analysts say.
Akufo-Addo said, however, the government was on target with its policy to restore growth and create private sector jobs.
&#8220;There is no question about the IMF programme being extended beyond April 2018. We want to complete it and move on,&#8221; Akufo-Addo told reporters.
The $918-million agreement was signed in April 2015 to address problems of slow growth and high public debt.
The IMF said in May that an extension was needed after Ghana failed to meet certain deal requirements on schedule.
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Reporting by Kwasi Kpodo; Editing by Edward McAllister and Alison Williams
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Ghana will not extend three-year IMF aid programme: President

Democratic Republic of Congo&#8217;s central bank has announced stiff new financial penalties for companies that fail to repatriate at least 40 percent of their revenues from mineral exports, a decree seen by Reuters on Tuesday showed.
Congo, Africa&#8217;s top copper producer, has been hit hard by low commodity prices over the last two years and is seeking emergency financial support from international donors to contain inflation expected to top 30 percent this year.
The decree, signed by central bank governor Deogratias Mutombo, imposes a penalty of 1 percent of the non-repatriated sum for each day that it is not repatriated. It also decrees a fine of up to 200 million Congolese francs ($125,000) for failure to communicate to the central bank details of a foreign bank account.
Mutombo said that the action was taken due to &#8220;the manifest failure by certain economic operators (to) respect legal and regulatory dispositions.&#8221;
Congo&#8217;s oil and mining sectors account for about 95 percent of its export revenues. The government has long complained that mining companies do not pay enough in taxes and is trying to revise the country&#8217;s 2002 mining code to hike taxes and royalties.
Mining companies oppose the proposed revision, which they say would make them unprofitable. They say that tax agencies hit them with hundreds of millions of dollars in unjustified penalties.
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Reporting By Aaron Ross; Editing by Tim Cocks
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DRC central bank announces penalties for miners that fail to repatriate revenue

Sekou Toure Otondi | University of Nairobi
As Kenya’s general election beckons the race has effectively narrowed down to two horses. Either, opposition leader Raila Odinga , or incumbent Uhuru Kenyatta will be Kenya’s president after August 8.
The bid for State House has attracted eight presidential contenders in total. But in recent weeks the focus has shifted to Odinga’s National Super Alliance and Kenyatta’s Jubilee Party, both of which have recently unveiled their manifestos.
While the manifestos look good on paper, depending on one’s political leaning, they are unlikely to have a significant impact on how Kenyans will cast their votes. The majority of the electorate have already decided on their preferred candidate. Most will vote on the basis of their tribal affiliations. The latest polling by Infotrak shows that only 8% of Kenyans are undecided on which presidential aspirant to vote for.
Despite the fact that party manifestos will not shift voting patterns, they do provide a policy snapshot of what the parties would prioritise were they to form the next government.
The fact that neither the Jubilee Party nor the National Super Alliance manifesto takes much account of relations between Kenya and its peers in the East African Community, is noteworthy. And disturbing.
A study of the two manifestos shows that neither has a coherent plan for regional integration. This should concern Kenyans, as well as the country’s neighbours.
Relations between Kenya and its neighbours aren’t as they could be. A few months ago cabinet secretary for foreign affairs Amina Mohamed accused Kenya’s neighbours of not backing her candidature for the chairmanship of the African Union commission. Uganda openly disputed the claims, which only served to bring more attention to the suspicions.
More concerning are the increasingly unpredictable relations between Kenya and Tanzania. Even as the campaign heats up a diplomatic row is raging between the two countries.
Tanzania and Kenya are key actors in the EAC integration process. According to the 2016 Kenya economic report, Kenya, Tanzania and Uganda account for the largest intra-trade volumes within the EAC sub-region.
Therefore, Tanzania’s protectionist tendencies, which include both tariff and non-tariff barriers, not only threaten free trade within the community, but also encourage other states to place their own national interests before those of the union.
Tanzania’s overt nationalism is likely to stymie the integration process. Thus the need for Kenya and Tanzania to quietly resolve their differences before they escalate into an open diplomatic row.
<h2>Fractious regional relations</h2>
There have long been cracks in East Africa’s fledgling union.
Since the 2013 general election that ushered in the Jubilee administration, Kenya’s engagement in the community has become increasingly low key. The result was the formation of an informal coalition of the willing, which included Rwanda, Uganda, and Kenya. It’s goal was the fast-tracking of regional integration through large scale regional infrastructure projects. These countries came together in reaction to Tanzania’s lukewarm approach to community affairs. At the time the informal coalition was formed, Tanzania was under the leadership of President Jakaya Kikwete.
Following the election of President John Pombe Magufuli in 2015, Kenya’s engagement with Tanzania has slackened even further. The cold relations between the two countries is partially explained by the diplomatic charm offensive that Magufuli launched to restore Tanzania’s influence in the region. His efforts scuttled the coalition of the willing and sidelined Kenya within the bloc.
A potent and noxious mix of competing interests have aggravated the frosty relationship between Kenya and Tanzania. There is stiff competition between the two countries to host large scale regional projects. There have also been disagreements over trade deals.
The standoff is threatening the integration process because the other community members are finding that they have to align themselves with either Kenya or Tanzania. This is getting in the way of joint decision making.
A highlight of the competing views in the region surfaced during the signing of the European Union/East African Community economic partnership agreement when Kenya and Tanzania once again took opposing views.
Tanzania has always opposed the trade deal on the grounds that it was contrary to its national economic interest. Kenya’s view is that Tanzania wants to scuttle the economic progress of the east African bloc.
<h2>Tensions fuelled by elections</h2>
Differing points of view between political elites in the region have also contributed to dampened community relations. Whenever one of the member states goes into an election, other community leaders will align with either the opposition or the incumbent. These alignments are usually based on personal relationships rather than common ideology.
Forming alignments based on a shared ideology would indicate that the integration process was on course. More so because the East African Community’s ultimate objective is to form a political union and a shared ideology would go a long way to that end. But, instead of staking cross-border political support on ideology or regional policy frameworks, support continues to be pegged on personal relationships.
This is detrimental to the integration process. In 1977, the first East African Community suffered a similar fate when it collapsed under the burden of personal differences between leaders in the bloc.
Nevertheless, the political goodwill of individual elites in community governments cannot be gainsaid. Politicians will always be at the centre of the policy that governs the integration process.
It’s on this basis that I argue for the inclusion of more detailed East African Community-related policy in the manifestos of Kenya’s main political outfits. Whoever forms the next government needs to factor in the big matter of community integration.

Op-Ed: Why it  matters that regional integration has taken a back seat in Kenya’s election

Madagascar has appointed Vonintsalama Andriambololona as the new minister of finance and budget, a statement from the presidency said on Tuesday, a day after the previous minister resigned, citing a lack of support.
Andriambololona was the former general secretary of the ministry of finance when Hery Rajaonarimampianina, now the president, was the finance minister. She held the post until 2015, and is also a serving member of the board of the Central Bank of Madagascar.
She replaces Gervais Rakotoarimanana, who resigned on Monday after media reported he had disagreed with the president.
The Indian Ocean island state&#8217;s economy has been struggling with a drought and the destruction caused by a severe cyclone, which damaged its vanilla crop, a key source of foreign exchange, the International Monetary Fund said last month.
Madagascar is one of the world&#8217;s poorest countries, despite reserves of nickel, cobalt, gold, uranium and other minerals.
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Reporting by Lova Rabary; Writing by Katharine Houreld. Editing by Jane Merriman
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Madagascar names central bank board member as new finance minister

South Africa&#8217;s Reserve Bank is expected to leave interest rates unchanged at its July 20 meeting, according to a Reuters poll released on Monday, but economists expect a dovish statement as the Bank gets closer to its easing cycle.
Twenty-four of 27 economists said the Reserve Bank will hold rates at 7.00 percent on Thursday. Two predicted a 25-basis- point cut and one expects the repo rate to be cut by half a percent.
Economic growth in South Africa will be weaker this year after the country slipped into recession in the first quarter, and with inflation easing an interest rate cut is expected in the first quarter of next year.
&#8220;While our consumer price index view indicates that the SARB has room to ease rates from as early as next week, it will first look to change its inflation rates narrative before pulling the trigger,&#8221; said Jeffrey Schultz, an economist at BNP Paribas.
Schultz said at least two members of the Monetary Policy Committee could vote in favour of a 25-basis-point cut next Thursday. At its May meeting, only one of the six committee members voted for a cut.
&#8220;This should send a signal that September is a `live&#8217; meeting,&#8221; he said.
At 5.4 percent in May, inflation has been slowing after a drought last year and will probably average 5.4 percent this year and 5.3 percent next year.
The rand is expected to end this year around 13.60 per dollar. It is currently at 12.96 with slower rate increases now expected in the United States [ZAR/POLL].
Wall Street&#8217;s top banks brought forward expectations for when the Federal Reserve will begin reducing its $4.5 trillion bond portfolio to as early as September. They see balance sheet reduction as more of a priority than another rate rise [FED/R].
South Africa&#8217;s economy is expected to expand 0.7 percent in 2017 and 1.2 percent the following year, after contracting 0.7 percent in the first quarter.
South Africa&#8217;s finance minister has laid out a 14-point programme on Thursday to lift the economy out of recession. It includes the sale of non-core assets and partial privatisation of state-owned companies.

South African Reserve Bank to hold repo rates

Nigeria should focus on improving its education system, Nobel laureate Malala Yousafzai said on Monday during a visit to the West African country where nearly half of primary-aged children are not enrolled in school.
Africa&#8217;s most populous country has some 10 million children of school age who do not attend, government figures state. Primary school enrolment is just 54 percent.
Yousafzai, a Pakistani education activist who came to prominence when a Taliban gunman shot her in the head in 2012, was named a U.N. Messenger of Peace in April to promote girls&#8217; education. She has become a regular speaker on the global stage.
Addressing journalists in the capital Abuja after a meeting with the acting president, Yousafzai said the government should declare a &#8220;state of emergency on education in Nigeria&#8221;.
&#8220;They are happy to work more on education. We are also happy to hear positive response from the minister as well in ensuring that education is prioritized,&#8221; she said, adding that spending on education at a federal and state level should be made public.
Nigeria&#8217;s presidency did not immediately comment on the suggestions.
Yousafzai has also campaigned to maintain awareness of the more than 200 schoolgirls who were abducted in 2014 from their secondary school by Islamist militant group Boko Haram, whose name means &#8220;Western education is forbidden&#8221; in the Hausa language spoken widely in northern Nigeria.
Of the 270 girls originally kidnapped by the group, around 60 have escaped and more than 100 have been released. But around 100 more are still believed to be in captivity.
Yousafzai met some of the released girls in Abuja earlier on Monday, whom she described as being healthy. She appealed for the release of those who are still being held.
The Boko Haram insurgency, aimed at creating an Islamic caliphate in northeastern Nigeria, has killed more than 20,000 people and displaced more than 2 million since 2009.
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Reporting by Felix Onuah; Writing by Alexis Akwagyiram; Editing by Catherine Evans
</div>

Malala urges Nigeria to prioritize education system

Platinum miner Lonmin cut more costs and improved its mining performance in its third quarter, it said on Monday, but falling metal prices continued to weigh.
Shares in the South Africa-focused company were up 7 percent in London by 0920 GMT, outpacing the wider sector.
Lonmin has been struggling with shrinking profit margins due to high costs, operational issues and stubbornly low platinum prices.
In the previous quarter, a $146 million impairment brought the company close to breaching its debt covenants as its liquidity shrank.
Lonmin showed signs of improvement in the three months to the end of June as unit costs fell 4.7 percent compared to the previous quarter. But costs rose 6.4 percent from the same period a year ago.
Total tonnes mined rose 3.8 percent to 2.7 million tonnes compared with the same period a year ago and up 13.2 percent versus the previous quarter.
Net cash improved to $86 million from $75 million at the end of the previous quarter.
&#8220;We continue to find levers to pull, in this &#8216;lower prices for longer&#8217; environment and to make the improvement of our performance a priority,&#8221; Chief Executive Ben Magara said.
The average basket price for its metals fell in the quarter, down 3 percent compared to a year ago, concerning analysts.
&#8220;Despite the better than expected results, we maintain that the company will continue to face significant headwinds in terms of lower rand basket price, increasing costs and liquidity concerns,&#8221; Citi said in a note.
<div class="Attribution_attribution_o4ojT" data-reactid="48">
Reporting by Zandi Shabalala; Editing by Adrian Croft
</div>

Lonmin improves mining performance in third quarter

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A few months ago, a <a href="https://www.youtube.com/watch?v=Kcv4Hes8iHg">video</a> in which a street boy blamed bad leadership for Nigeria’s socio-economic problems, went viral on social media in the country. He called for a mass burial of the country’s political elite, which in his opinion, would help combat corruption and unlock the country’s potential.
His view echoes the inner and hidden sentiments many people living in African countries have about their leaders.
The reasons for this are not hard to find. Most African leaders have done little to improve the welfare of their people, who are very poor, while they, and their cronies, live in opulence.
The rot goes all the way through the political chain to elected and appointed public officers – starting with political parties. Party financiers and godfathers dictate who holds what public office without regard for competence and internal democracy. They ultimately dictate how state affairs and funds are managed with barely a distinction between public and private funds. So, elections don’t seem to help, mainly as the politicians are the same. Despite African political parties espousing different ideologies and launching welfare manifestos, nothing really changes when governments change.
Corruption is prevalent throughout the continent. Tied to this is the fact that anti-corruption efforts fail because of a lack of honest and accountable leaders. Many have co-opted democratic systems, such as regular elections, or they simply make up the rules as they go along to stay in power. Behind it all lies an insatiable appetite for money, and the realisation that power can deliver untold wealth. In these scenarios, played out across dozens of countries on the continent, the state (and the people) are sacrificed to greed.
And those brave enough to stand up and be counted are driven out – either literally or figuratively.
<h2>Ubiquitous corruption</h2>
Every year about USD$50 billion is lost through illicit transfers. Not only does this hold back the continent’s socio-economic progress, it also threatens peace, security and stability.
A recent study found that in Sokoto State, Nigeria, corruption facilitates the spread of radical ideology and induces about 70% of the youth to join Boko Haram, a group which killed 11,885 civilians between 2011 and 2016.
Whereas the ubiquity and repercussions of corruption in Africa have been widely articulated, the fight against it seems to be a fleeting illusion.
Anti-corruption measures mainly revolve around legislating to tighten loopholes, strengthening anti-corruption institutions, and empowering the media and citizens to report or stand up against malfeasance.
But the success of these measures depend on the often overlooked but crucial role of good leadership.
Willing, able and visionary leaders are required to push through sweeping reforms to curb corruption and augment public accountability. Unfortunately, such leadership is lacking in Africa.
<h2>Leadership vacuum</h2>
Africa is home to despots and sit-in presidents who either abuse their power or allow abuses to be perpetrated. Countries are run like family property and political dynasties are created by fathers passing power to sons. Checks and balances are weak, dissent is crashed, and alternative views are discarded, culminating in low accountability which further deteriorates leadership and reinforces corruption.
One would expect multiparty democracy and its associated principles to produce visionary and effective leaders, but this is rarely the case in Africa. While elections are held and leaders are changed at the ballot, things usually remain the same. Oftentimes, policies and corrupt practices which were criticised by political leaders while in opposition suddenly become right and justifiable when they win power.
In essence, there may be new faces in government, but the status quo does not change. The big question is, why?
<h2>Politics and money</h2>
Politics in Africa is synonymous with wealth, whether acquired legally or otherwise. Hence, the scramble for power can be intense and sometimes dangerous. The expectation of quick riches increases internal competition for party candidature, which often requires deal making and vote buying.
And failure to align with the party establishment can prevent members from ascending the party hierarchy.
Party members are socialised in the same way, mainly to do whatever is necessary to win power by fair or foul means, and those who dare to think or behave differently are sidelined, sabotaged or expelled.
<h2>Political party financing and corruption</h2>
At the core of Africa’s corruption and leadership problems is opaqueparty financing. In most countries, parties rely on private funding from individuals and organisations. But regulations on financial disclosure are either non-existent or ineffective, which allows wealthy individuals, known as godfathers, to wield significant influence, mainly for their benefit but to the detriment of the state.
Even leaders perceived to be strong-willed can find it hard to withstand the pressures.
In an interview in 2016, Nigeria’s first lady, Aisha Buhari, stated that her husband does not know all of his appointees, which shows how a president can be the face of mightier but invisible forces.
In South Africa, President Jacob Zuma stands accused of being a stooge of the wealthy Gupta family.
These examples attest to how African leaders can be controlled from behind the scenes by vested interests and crooked godfathers. In some cases, the leaders are incapable of addressing the excesses of their sponsors, leading to anarchy and recklessness.
<h2>Being different is political suicide</h2>
There is a popular idiom: “do not bite the hands that feed you”. Indeed, anecdotal evidence suggests that this is true for African leaders. There is a high chance that leaders who act against the interests of their party establishment, financiers and godfathers, even for the benefit of the state, will not last long. The same applies to their policies.
So what’s the way forward? Africa must regulate political party financing and strengthen state institutions such as electoral commissions to enforce compliance.
Until then, most leaders on the continent will continue to be prone to capture and control by powerful and parochial godfathers. And the looting of public funds won’t stop.

Op-Ed: Why African citizens are fed up with politicians

By Unathi Sonwabile Henama
Religious tourism is a form of special interest tourism and is one of the oldest forms of tourism recorded in history. It is assumed that internationally 25% of the traveling public are interested in faith-based tourism.
When one adds to this the number of people who travel for faith-based conventions, and faith-based activities such as weddings, bar mitzvahs or funerals, the number becomes extraordinarily large. World Religious Travel is one of the fastest growing segments in travel today. Religious travel is estimated at a value of US$18 billion, involving 300 million travellers.
South Africa&#8217;s CRL Rights Commission will conduct an investigative study into the commercialisation of religion and the abuse of people&#8217;s belief systems. This was a unanimous decision by the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities. *
The CLR Report, released on 11 July 2017, noted prima facie evidence of commercialisation of religion and recognised that foreign religious leaders, who operate foreign-based churches in South Africa, may have misused the South African visa application process. The CLR report noted that some pastors applied for a different type of visa, and yet once inside the country, they demand a permanent or residence visa.
<h4>Uncontrolled movement of cash in and out of the country</h4>
In addition, the CLR report noted an uncontrolled movement of cash in and out of the country, where some religious institutions tell their congregants that money has to be paid to their head office. Most of these head offices are based outside the country, and the money is repatriated out of the country without applying to the Reserve Bank.
These challenges would have to be addressed by the popular religious leaders that frequent South Africa, so that religious tourism can continues to grow in South Africa. Foreign pastors that have a local presence, include Nigerian TB Joshua of the Synagogue, Church of All Nations (SCOAN).
There was an accident that killed more than 80 South African’s when a guesthouse collapsed at the SCOAN, but this has not deterred South Africans from travelling to Nigeria to attend the SCOAN. Demand to travel to Nigeria to visit the SCOAN remains robust from South Africa, considering the cost is around R24 000.
TB Joshua is unlikely to visit South Africa due to the uncertainty related to possible arrest for the loss of South African lives when the guesthouse collapsed. This means that South Africa misses out on the thousands of pilgrims that usually attend his events hosted by TB Joshua.
TB Joshua remains the primary tourism resource for Nigeria, where eight out of 10 tourists who arrive are headed to the SCOAN. Even since the guesthouse collapse, TB Joshua has yet to visit South Africa. This means a potential loss of millions to South Africa, which is being redirected to Nigeria.SA.
<h4>Midrand likely to become a site of religious pilgrimage</h4>
Pretoria is not a traditional leisure destination, but the church services by Shepherd Bushiri, at the Pretoria Showgrounds attract more than 300 000 people. The Malawian prophet is based in South Africa. Major One is building a mega church in Midrand, that will be a site of religious pilgrimage for thousands of local and regional tourists.
Shepherd Bushiri should be granted permanent residency as he is a contributor towards economic growth.
Thanks to the government of Botswana for putting on visa regulations on South Africa based Shepherd Bushiri, who heads the Enlightened Christian Church, Pretoria will continue to benefit from thousands of Batswana that visit South Africa to attend the church services.
Soweto benefited from two New Year’s Crossover services in 2016 at Orlando Stadium and FNB Stadium. Pastor Chris Oyakhilome’s crossover service at a 36 000 seated sold out Orlando Stadium, was broadcast to millions of worshippers, via live television, radio and the internet.
<h4>Sold out crossover services</h4>
Bushiri brought glitz and glamour as he sold out FNB Stadium, with more than 120 000 people attending the “Night of Honey” service. It was not the first time that Bushiri had sold out FNB Stadium. The first was the 2015 New Year’s Crossover ‘’Lion of Judah’’.
These events have been able to bring in thousands of religious tourists to South Africa benefiting the local economy. As we have learnt when the visa regulations were introduced, the unintended consequences of legislation must be analysed on what impact they may have on the tourism sector generally, and religious tourism specifically.
Foreign pastors would have to comply with South African legislation so that they can continue to benefit the growth of religious tourism in South Africa. Tourism continues to bring the bacon home with 13% growth in 2016.
<ul>
<li>The CRL Rights Commission is one of the Chapter Nine Institutions.</li>
</ul>
 Unathi Sonwabile Henama teaches tourism at Tshwane University of Technology and writes in his personal capacity.

Op-Ed: A tourism outlook on religious rights in South Africa

If we were to think of Silicon Valley, and our own innovations and start-ups, as countries, we might be able to capitalise on the kind of thinking that makes Silicon Valley so successful, writes Nnamdi Oranye.
California, where Silicon Valley resides, has a bigger economy than most nations of the world. In fact, the World Bank in 2016 rated it as the sixth biggest economy on the globe. That’s one State in all of America. And within this State resides states of their own, if you will – countries, nations that cross borders, generate revenue in almost every border of the world, and connect people across geographic regions in new, unthinkable ways. These are the countries of Silicon Valley, and the big five of them are undoubtedly Facebook, Google, Apple, Uber and Amazon.
If you were to think of Facebook as a country, it would be the most populous on earth, with 1.86 billion people logging onto the network each month. We could think of that as 1.86 billion living, active users &#8211; effectively, Facebook’s citizens. That’s more than China’s entire population (about 1.4 billion). It’s more than India’s (about 1.3 billion).
Facebook’s users are more than the U.S. population itself, which comes in at about 0.3 billion, where the company comes from. Facebook’s biggest problem is that there will eventually not be enough people in the world who will actually log on and use it, so how will it grow? It’s still banned in China, but who knows for how much longer?
<h4>Facebook&#8217;s Free Basics for African users</h4>
To get Africans on board and increase its user base, Facebook is, therefore, finding ways to help us all get online. Through a partnership with Eutelsat, it’s looking to offer a connected experience that it calls Free Basics (see internet.org), which already operates in several countries across the globe and has partnered with MTN and other telecommunications in Africa. This has come with some controversy.
Its plan is clearly to get everyone on the planet logged on and connected &#8211; and at 1.39 billion users logging on every month, it doesn’t seem as if it is just dreaming. If you consider Facebook’s earnings of USD $8.81 billion (Q4 2016), and you compare this to other country GDP’s, you see it’s richer than many of the countries of the world!
Google isn’t far behind. If it were a country, it would probably be the third biggest in the world. In 2016, it reported that it has now more than one billion active users on Gmail. YouTube, Maps, Google Play, and Chrome also have more than one billion active users. And this doesn’t account for active users on the Google search engine or users of its other products. In the same year, it reported it had reached 3.3 trillion searches in a year.
<h4>Only 60 countries&#8217; GDP beat Google&#8217;s revenue</h4>
There are more than 1.6 billion Android devices in the market (2017). Alphabet, the holding company of Google, reported USD $21.33 billion in revenue in 2016; 24.8 billion in the first quarter of 2017. It outstrips even more nations than Facebook if you had to compare GDP with Google’s revenue. In fact, only just over 60 countries in the world beat it &#8211; while the rest trail behind.
In 2015, its revenue for the year was better than 33 of the world’s poorest countries combined, meaning – as reported by Investopedia – that its wealth exceeded roughly 18 percent of the global GDP. It’s not the biggest multi-national corporation there is, and that in itself is saying something.
Where does Whatsapp sit in all this? The messaging app boasted 1.2 billion active users a month in January 2017. If you consider that Whatsapp is owned by Facebook, you can begin to see just how much Facebook would dominate if it were a country. And then let’s not forget Instagram with 600 million users at the end of 2016 &#8211; which is also owned by Facebook.
<h4>Totally different to how we normally do things in an African context</h4>
These are nations within all of our nations. Realising this stark fact puts things in an interesting perspective. It’s a good thought exercise to think beyond the stats and consider the philosophy behind this, consider what it means to have nations of this size within your own nation, linked to your next-door neighbours and across the world. When you think of these innovations as countries you can see the type of service they provide, and the way they provide their service, is totally different to how we normally do things in an African context. The regulatory framework is different. The approach to technology is different. The way they view themselves, and their citizens, is different. What this means is if we were to
The regulatory framework is different. The approach to technology is different. The way they view themselves, and their citizens, is different. What this means is if we were to try compete with the likes of Uber, for example, we can&#8217;t compete in the way we usually do with other countries: with borders and regulation and certain security approaches, and so on. We have to start to think of things like VISA-less borders and we have to come to grips with what our response to that sort of thing is — what our regulatory framework will actually be. This regulatory framework has to be totally new, it can’t just incorporate a ‘business-as-usual’ approach.
<h4>Globalism taken to the next level</h4>
The sheer connected nature of these Silicon Valley companies — the way in which they truly want to connect us — speaks volumes into this, and is truly globalism gone next level. Consider Google / Alphabet’s plans. It has been developing its driverless, ‘smart’ car for some time now, and expects to release this to the consumer market by 2020. It’s investing in healthcare. Android phones and Android watches are telling us about how healthy and active we are being. You can see where Google is going with that. And no doubt, through collecting all the information Google does about you, it will (in my opinion) look to start health insurance or other kinds of insurance too. (Amazon, too, just announced this last week that it’s thinking of going into pharmaceuticals, so this is clearly a market Silicon Valley wants to
And no doubt, through collecting all the information Google does about you, it will (in my opinion) look to start health insurance or other kinds of insurance too. (Amazon, too, just announced this last week that it’s thinking of going into pharmaceuticals, so this is clearly a market Silicon Valley wants to cannibalise). Facebook and Google have plans to get the world online via satellite, or Google’s connected blimps in the sky.
Google along with Levi’s just released a jacket in the last few months to the market with ‘gesture-sensing fabric’ which effectively lets you control your phone by just touching your jacket. Google has been making headway into the ‘connected home’ concept with its Nest products, and others. So the plan is simple: make everything connected, from your watch to your phone to your car to your home to your clothes. Google wants to create a new ecosystem. Facebook wants to, too. Amazon, on the other hand, just wants to own everything.
<h4>How we need to think of our own innovations differently</h4>
“Ecosystem” is the key for me in how we need to think of our innovations, as I’ve argued elsewhere. But more than this, if we are looking at the economies of these companies and thinking of ourselves as African nations in comparison to them, we must realise that we cannot see technology innovations as ‘start-ups’. We have to think of them as more than that.
We have to think of our own innovations, and innovators, as developing nations and ecosystems within our nations. We have to open our borders to them, so they can think Pan-African from the start. We only tend to think of our innovations as ‘tech’, but we have to think consider them as countries all of their own.
Acha Leke, director at McKinsey and Company and a member of the World Economic Forum (WEF) Global Agenda on Africa, represents, in my opinion, one way we need to be thinking about this. He is actively campaigning for visa-less borders in Africa, for the recently launched African Union passport. He believes this will accelerate socio-economic growth; boosting tourism revenue and increasing intra-African trade.
As he said at Oxford in 2015, “We are the second fastest growing continent in the world, and Africa offers the second highest return of investment of any region in the world.” What this means is that if we can make our borders more open, we can make it so much easier for our innovators to expand across Africa and get even more investment with effectively less hassle, and that will benefit us all. We will create a more integrated market, make it more efficient for business, open up opportunities, which all will promote greater stability and investment.
<h4>The kind of prosperity these Silicon Valley companies enjoy is what we really need</h4>
Silicon Valley does not think within borders. It&#8217;s kind of connected thinking that creates a better “working together” and the kind of prosperity these Silicon Valley companies enjoy is what we really need, I believe. You can see the same thinking employed in China’s open-source philosophy that has helped it to innovate so quickly – a philosophy that is highlighted by China’s very different take on patent laws.
If we want to prevent Silicon Valley from not only capitalising on our opportunities but also our current markets, we have to start thinking a bit like them while thinking about our context at the same time. For example, I’ve been saying for some time that Facebook can cannibalise our telecommunications industries. Take a look at the Telecom Infrastructure Project, a consortium led by Facebook and launched at Mobile World Congress last year; and also take a look at its Voyager project; and also just think about the fact that Whatsapp is processing 100 million calls a day. It is poised to sweep the rug under the carpet of every telecoms company in the world, including Africa. The problem is I don’t think we’re ready for it.
We need to be creating a new ecosystem for us as Africans through our own innovations, and working with these Silicon Valley innovations, our way. Along with the tremendous positive the likes of Google and Facebook can bring to help connect us, they can also bring significant negative in the forms of where the revenue generated will all be going, what happens to all the jobs that can be lost, and how it develops our own skills for the future. We have a serious challenge before us and we need to rise up to it now.

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