With the uncertainty over supply of oil from Iran, South Africa is looking to Nigeria to purchase its oil, the Deputy President Kgalema Motlanthe said, following the signing of a Memorandum of Agreement with the Vice President of Nigeria, Namadi Sambo, in Cape Town on Wednesday.

South Africa may be forced to comply with a US order to cease buying oil from Iran - from which it sources about a quarter of its oil - or risk economic penalties from America. The Minister of Energy Dipuo Peters last week said government would decide on its response to proposed sanctions by the end of this month.

Motlanthe said PetroSA and private traders were expected to look at supply agreements for oil from Nigeria. "We would guarantee going forward to our Nigerian brothers (that there will be) demand for their liquid fuel, because we don't want to source our fuel in areas that are likely to be unstable.

"Indeed, we are quite confident that Nigeria will become one of our trusted suppliers of liquid fuel going forward," he said.

Ready to offer support

Sambo said Nigeria was ready to offer any economic support - be it energy or otherwise.

Motlanthe said the agreement he signed with Sambo today would help prepare the way for a more enabling business environment between two of the continent's biggest economies.

He said the agreement enabled both countries to rope in business people from both countries that had an idea for investment opportunities in both countries.

Nigerian companies with the wherewithal to supply infrastructure projects - including the supply of cement - would be invited to participate in South Africa's massive infrastructure programme.

Bi-National Commission

Sambo arrived in South Africa on Monday at the invitation of Motlanthe to attend the 8th South Africa-Nigeria Bi-National Commission. He is expected to depart the country today.

The two discussed several issues and reviewed the progress made since the 7th Bi-National Commission was held in Abuja in 2008. They also discussed the progress made on the seven working groups of the Bi-National Commission.

These workings groups are: foreign affairs and co-operation; trade, industry and finance; security and defence; agriculture, water resources and environment; minerals and energy; public enterprises and infrastructure; and the social and technical working group.

Today, a Memorandum of Understanding on economic and technical co-operation was signed between Minister of Trade and Industry Rob Davies and Nigeria's Finance Minister Olusegan Aganga.

Another Memorandum of Understanding was also signed between Aganga and the Minister of Finance Pravin Gordhan, to offer mutual assistance with customs administration between the two countries.

Sambo said Nigeria had put the incident that took place at OR Tambo International Airport in Johannesburg in March - when several Nigerians were deported after a dispute over yellow fever vaccinations - behind it.

"Nigerians are happy about the way they are treated in South Africa," he said, adding that there was a plan to expand the number of years for which travel visas can be used for, while doing away completely with diplomatic passports.

Source: BuaNews

For the country to overcome inequality, South Africans must reach consensus on both workers' wages and executive pay rates, and speeding up the creation of new jobs, says Economic Development Minister Ebrahim Patel.

Speaking at the Next Economy National Dialogue on income inequality in Parliament, Cape Town on Thursday, Patel singled out figures in the 2010 household survey that revealed that the top 10% of earners in South Africa took home salaries that were 101 times higher than the bottom 10% of earners.

"When what one person takes away is so disproportionally larger than what another takes away, the social glue that holds society together weakens," he said, adding that income inequality also suppressed the market, as fewer people were able to buy goods and services.

Effective partnerships needed

What was needed were more effective partnerships between all sections of society.

"If partnership can do what it did to the Japanese economy after the end of the Second World War, or the German economy, or to a number of other successful economies, partnership needs a sense of being in something together," Patel said.

He highlighted the progress that Brazil had made in overcoming inequality since the mid-1990s, even though, between 2000 and 2008, Brazil and South Africa had grown at nearly the same rate - Brazil at 3.5%, South Africa at 3.6%.

The government was addressing inequality largely through social grants, the country's regressive tax system, and free or subsidised basic services.

New job opportunities key

However, this wasn't enough, Patel said, adding that the government alone would never be able to overcome inequality in South Africa.

"We have got to build, to a greater and greater extent, opportunities for employment, for jobs, for decent work, as the principle means out of poverty."

While over 300 000 new jobs had been added over the last 12 months, just over 400 000 new jobs had been added since the adoption of the New Growth Path 18 months ago - compared to the previous 18 months preceding the adoption of the new policy, when the country lost over 600 000 jobs.

"But not withstanding that jobs growth, we are hardly making a dent in jobs growth, we are hardly making a dent in unemployment levels," Patel said.

CEOs must disclose pay packages: Vavi

Also addressing the debate in Parliament, Congress of South African Trade Unions (Cosatu) secretary-general Zwelinzima Vavi said that at a youth wage subsidy - an idea first mooted by the National Treasury - would only address unemployment in the short term.

Vavi acknowledged that unemployment was the biggest problem the country faced, but said that at the same time, one couldn't look away from the issue of high pay, adding that the country needed a mechanism to get chief executives to disclose the level of their pay packages.

He agreed with the 2011 report and findings of the UK High Pay Commission, that shareholders should be given more power to vote on the pay packages and bonuses of top executives.

He said top South African executives wanted to measure their packages with those of other developed countries, while at the same time arguing that workers had to be paid on par with other developing countries.

Vavi pointed out that top executives in South Africa earned 1 728 times the average worker in their respective companies, while this gap was only at 319 times in the US.

Business sector 'unfairly demonised'

Bobby Godsell, chairman of Business Leadership South Africa, who backed the idea of setting up a commission to examine corporate pay as the UK had done, said the business sector was often unfairly demonised.

Business owners and business leaders were not only after money when running a company, but also wanted to build good companies and make a contribution to society.

Top executives had to be remunerated accordingly, he said.

In response to Vavi's assertion that inequality was increasingly dividing the country along class lines, Nazmeera Moola, head of macro-strategy at Macquarie First South, stressed that the country needed to create more jobs, no matter the scale of remuneration.

"There is class warfare, and the warfare is between those who have formal sector jobs and those that don't," Moola said.

What would relieve unemployment and narrow the gap between the rich and poor, she said, was if the country helped smaller firms to hire more workers.

UK High Pay Commission chairperson joins debate

Joining the debate in Cape Town on Thursday, Deborah Hargreaves, chairperson of the UK High Pay Commission, said the commission had developed a 12-point plan which had subsequently been adopted by the Labour party.

Hargreaves said the plan included a call to give shareholders a binding vote on chief executives' pay or exist bonuses.

She said the UK government was currently drafting regulations around executive pay which included making allowances for more diversity on companies' remuneration committees, and the calculation of a single figure around which executive pay could be structured.

However, she said the UK government had not turned down a more controversial idea to have employee representative on remuneration committees.

She said massive distortions in pay destabilised economic growth as it drew many of the brightest minds to the financial sector, away from the industrial sector. It also demoralised those in the workforce who felt that pay rates were unfair.

There was also evidence that more equal societies attracted more entrepreneurship.

She said the top 0.1% of income earners in the UK (earning more than £500 000 and consisting of 36 000 people) saw their pay rise by 64% between 1997 and 2008, while the income of middle-income earners rose only by seven percent over the same period.

In a recent British survey that asked how much top executives should be paid, most people polled said top executives should be paid between £500 000 and £700 000 pounds - a massive contrast to the average top pay of £4.2-million, she said.

Source: BuaNews

South Africa will be pushing for a decision on the site of the €1.5-billion Square Kilometre Array (SKA) radio telescope at the next meeting of the international SKA organisation members on 25 May, says Science and Technology Minister Naledi Pandor.

"The bidding countries submitted all the required technical information and we are impatiently awaiting the outcome of what we hope will be a final site consideration meeting on 25 May," Pandor said during her department's budget vote in Parliament in Cape Town on Tuesday.

South Africa, allied with eight other African countries, is competing against Australia (allied with New Zealand) to host the SKA, an instrument 50-100 times more sensitive and 10 000 times faster than any radio imaging telescope yet built.

A decision on the site was delayed in April to allow a scientific working group to explore ways of maximising investments already made by rival bidders South Africa and Australia-New Zealand - raising the possibility that the hosting of the world's biggest radio telescope could be shared.

Pandor was disappointment at the delay, saying at the time that she hoped the SKA organisation "will make a decision in the first half of 2012 and that the decision will reflect the best scientific outcome.

"We believe we have an excellent site at which exciting science will be done," Pandor said. "We in Africa are ready to host the SKA."

On Tuesday, Pandor told Parliament that her department had allocated R500-million to South Africa's SKA initiative in the 2012/13 financial year.

South Africa targets new satellites

She said her department would also be working with the South African National Space Agency (Sansa) to develop an implementation blueprint for its next satellite.

South Africa is planning to build its third satellite, to form part of a new African satellite constellation, as part of a government drive to grow the country's share of the global market for small- to medium-sized space systems.

"Our intention is to expand our investment in 'micro' satellites, building on the existing SumbandilaSat platform," Pandor told delegates at the 62nd annual congress of the International Astronautical Federation in Cape Town in October.

South Africa's second satellite, the two-year-old SumbandilaSat, has been out of commission since a blast of solar radiation damaged its on-board computer in July 2011.

Sansa chief executive Sandile Malinga announced in September that South Africa hoped to start building a new, fully operational satellite – not just a prototype or "pathfinder" satellite such as SumbandilaSat – as early as 2012, for possible launch by 2014/15.

The new satellite would cost in the region of R400-million - compared to the R26-million spent on SumbandilaSat - and would also be used for earth observation, in line with the country's space strategy, which seeks to apply satellite data to help to improve livelihoods, reduce poverty and manage natural disasters in the country and the region.

Source: BuaNews

South Africa's Anglo American Platinum (Angloplat) has launched the prototype of the first fuel cell powered underground locomotive, in a bid to demonstrate the viability of platinum-based fuel cells as an alternative energy source while helping the country meet its energy and job creation challenges.

Anglo American CEO Cynthia Carroll, speaking at last week's launch, described the event as "a leap forward for fuel cells.

"The platinum-based hydrogen fuel cells, used to power the locomotive we are unveiling today, offer one of the most exciting opportunities for South Africa in the green economy," Carroll said.

"At Anglo American, we believe that with platinum at its heart, a South African fuel cell industry would support the country's drive for jobs and help to meet its energy challenges."

According to Angloplat, hydrogen-powered fuel cell locomotives are more economical and environmentally friendly than traditional rail transport, being powered by a cleaner and more secure energy source.

A fuel cell is essentially a gas battery that produces electricity as long as it is fed with hydrogen gas. The fuel cells provide availablity 24-7, and there is no need to change or recharge the battery it replaces, which means less downtime and increased productivity.

"These innovative locomotives will provide us with an opportunity to mine platinum in a more economic, energy-secure and environmentally benign manner," said Angloplat CEO Neville Nicolau. "The locomotives will not require any electricity from the grid to function, and will not emit noxious gases."

The locomotive was developed in collaboration with Vehicle Projects, Trident South Africa, and Battery Electric. The partnership will construct five fuel cell locomotives which will be tested for underground use at one of Angloplat's mines, after which they will be integrated into the company's mining operations.

According to Angloplat, fuel cell technology is a strategic emerging industry, and the locomotive project is part of the company's collaboration with South African government and technology partners to explore the potential of fuel cells, with an eye to the industrialisation and beneficiation of platinum group metals (PGMs).

"This collaborative work is intended to enable the development of a local fuel cell manufacturing, distribution, marketing and servicing industry which will be globally competitive," Angloplat said.

SAinfo reporter

South Africa says it is committed to supporting its nomination of Home Affairs Minister Nkosazana Dlamini-Zuma to lead the African Union (AU) Commission, with the backing of the Southern African Development Community (SADC).

"Our government and the SADC region is united behind its candidate," International Relations Minister Maite Nkoana-Mashabane told journalists in Pretoria on Tuesday.

In January, African leaders shelved the election of the new chairperson of the AU's executive arm until July, after both Dlamini-Zuma and the incumbent, Jean Ping, failed to secure the two-thirds majority needed to lead the organ.

The next round of votes will take place at the 19th AU Summit in Malawi in July.

Analysts believe that for South Africa to win the election, it would need considerable support from Francophone African countries.

But Nkoana-Mashabane remained confident that they still had time to rope in support for the SADC nomination. "The region continues to consult widely across all regions on the continent regarding the candidature of Dlamini-Zuma."

She noted that the continent's southern and the northern regions had never had an opportunity to lead the AU, or its predecessor the Organisation of African Unity (OAU), at the level of a chairperson.

Asked what South Africa would do if there was still a deadlock at the July AU summit, Nkoana-Mashabane said they would follow the rule book of the AU.

Dlamini-Zuma was not being fielded as a candidate to pursue the interests of any particular country or region, Nkoana-Mashabane said, adding that her work would be guided by the statutes of the AU as well as decisions of the AU's policy organs, especially the assembly and executive council.

Nkoana-Mashabane was speaking after a meeting in Benin on Monday of an eight-member African Union (AU) ad-hoc committee set up to look into ways of breaking the impasse on the election.

The committee is chaired by Benin and includes South Africa, Algeria, Angola, Cote d'Ivoire, Ethiopia, Gabon and Chad.

According to the minister, certain convergences emerged on the principle of rotation. "The principle of rotation and regional representation is entrenched in the international democratic process of the AU."

The committee will present a report on its deliberations to the AU Assembly at the Malawi summit.

The AU Commission is the secretariat of the AU, entrusted with executive functions. It is composed of 10 officials. The commission has never been headed by a woman.

Source: BuaNews

African agriculture is undergoing a transformation, creating a new era of opportunity for both farmers and investors, according to African and global leaders at the World Economic Forum on Africa.

The Grow Africa Investment Forum, convened jointly by the African Union, Nepad and the World Economic Forum (WEF), engaged over 270 leaders at the gathering in Addis Ababa, Ethiopia on Thursday.

These included heads of state and government from Ethiopia, Rwanda and Tanzania, as well as leaders of African and global business, international and donor agencies and farmer organizations.

Huge investment potential

Forum participants noted that African agriculture offers tremendous growth potential to investors, which in turn promised to strengthen food security and economic opportunity on the continent.

Greater private-sector investment and improvements to the business enabling environment were needed to capture this potential, delegates were told.

The leaders noted that much of the continent's agricultural potential remains untapped. "We have scratched the surface, but we haven't yet broken the mould," said Ethiopian Prime Minister Meles Zenawi. "When we do that, you will see the explosion of development in Africa."

During Thurday's session, seven countries showcased specific investment and partnership opportunities aligned to their national priorities for agricultural transformation.

'We are ready to do business'

"We are ready to do business; that's why we came to this meeting," said Tanzanian President Jakaya Kikwete, noting that Tanzania's agriculture investment strategy prioritized groups that could most benefit from new market opportunities.

"When we bring in the private sector, it is to benefit the smallholder farmers," Kikwete said. "We need to modernize agriculture and make it more attractive to youth."

President Kikwete added that governments had an important role to play in providing support in areas of irrigation, inputs and building commodity markets. However, private sector investment was also essential in order to avoid over-dependence on subsidies.

Rwandan President Paul Kagame said that African countries could "mobilize farmers into an entrepreneurial mindset and create new opportunities for women, youth and rural entrepreneurs."

'New ways of leveraging the agriculture sector'

The Grow Africa partnership has developed significant momentum since it was launched at the 2011 World Economic Forum on Africa in Cape Town, South Africa.

A total of 116 companies participated in the Grow Africa Investment Forum, including 49 African and 47 multinational companies, plus 20 from other regions such as Asia and the Middle East.

"Much of the investment in Africa can come from Africa if we provide the right financing mechanisms and policy environment," said African Export-Import Bank president Jean-Louis Ekra.

According to Unilever executive vice-president Frank Braeken, African leaders "are defining new ways to leverage the agriculture sector as a driver of inclusive and sustainable growth. This offers new agribusiness opportunities that are increasingly attractive to investors."

Empowering African farmers 'crucial'

Participants agreed that empowering African farmers would be central to the future of agriculture on the continent.

"Smallholder farmers are a sleeping giant in Africa," said Dyborn Chibonga, CEO of the National Smallholder Farmers' Association of Malawi. "That sleeping giant needs to be mobilized into collective action groups."

Ethiopian Prime Minister Meles Zenawi said the way to realize this was through increasing the productivity of small farmers and having them well organized and collaborative in order to take advantage of supply chains and investments

Ethiopia has achieved significant gains in agricultural productivity using this model in recent years, setting aside 16% of its national budget for agriculture - well above the 10% to which all African governments have committed themselves.

The Grow Africa partnership, coordinated by the African Union, Nepad and the WEF, aims to "galvanize sustainable investment into African agriculture based on country-led priorities," the WEF said on Thursday.

According to the WEF, Grow Africa builds upon the CAADP, which works to boost African agricultural productivity through sector development plans. Rwanda, Burkina Faso, Tanzania, Mozambique, Ghana, Kenya and Ethiopia are the first countries to engage with Grow Africa.

"The Grow Africa platform is open to all countries, and can accelerate the implementation of national investment plans developed through the Comprehensive African Agricultural Development Programme," said African Union chairperson Jean Ping.

The potential seen in African agriculture presents a transformational opportunity, according to WEF vice-chairman Josette Sheeran. "Working together, we can ensure that when we meet in 10 years, it will be in an Africa that is not only feeding itself, but helping to feed the world."

SAinfo reporter and World Economic Forum

Open for business

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

South Africa may be able to tap into thousands of megawatts in renewable energy when the massive Inga hydro-electric project in the Democratic Republic of Congo (DRC) goes live.

The Department of Energy's chief director of clean energy, Mokgadi Modise, said a treaty that would make this possible, outlining the roles and responsibilities of the different actors, was being finalised.

Modise was speaking at a media briefing during the Africa-European Union Energy Partnership's first stakeholder forum in Cape Town on Wednesday.

Potentially largest project in the world

The Inga hydro-electric project on the Congo River could become the largest hydro-electric project in the world, and is expected to generate a massive 40 000MW of electricity - more than the current electricity generation in South Africa.

Modise said the South African negotiating team was being led by the Department of International Relations and Co-operation and included the Department of Public Enterprises, the Department of Energy and the National Treasury.

She said the project would help more South Africans access electricity while significantly boosting African regional integration.

Africa-EU Energy Partnership

According to the government's Integrated Resource Plan, a 20-year projection on electricity supply and demand, about 6% of electricity generated in the country will be required to come from hydro resources.

Modise added that the Finnish and Austrian governments were funding nine energy-efficiency and renewable energy projects in South Africa.

The Africa-EU Energy Partnership, created in 2007, is a partnership between business, government and civil society to find ways of meeting sustainable energy challenges on the continent. The partnership has 54 African and European members.

In Vienna in 2010, the partners signed a declaration setting out targets, to be met by 2020, for energy access, energy security, energy efficiency and the adoption of renewable energy.

The partnership's stakeholder forums - of which the Cape Town meeting is the first - are intended to enable members to explore ways of achieving these targets.

Source: BuaNews

International models on how to boost the development of the ICT sector in Africa will come under the spotlight during the inaugural ICT Indaba taking place at the Cape Town International Convention Centre from 4 to 7 June.

The event, organised by the Department of Communications and endorsed by the International Telecommunications Union, aims to formulate an African Agenda to promote ICT as a catalyst for social and economic development on the continent.

According to the department, hundreds of delegates from Africa, Europe, Asia, and South America, including ICT executives and government representatives, will take part in the 2012 ICT Indaba, while ICT regulators from more than 50 countries on the continent have also been invited.

One of the keynote speakers at the Indaba will be ITU deputy secretary-general Houlin Zhao, who will present a paper on the role of ICTs in socio-economic development.

Tech gurus peer into Africa's crystal ball

One of the highlights of the Indaba will be a "crystal ball exercise" in which eight international experts will discuss strategies for entrepreneurs and predict the future of technology in Africa and the world over the next 15-20 years.

The crystal ball "gurus" will include Dimension Data chairman Andile Ngcaba, Japan Science Agency director Shig Okaya, Global Innovation Summit (Silicon Valley) executive chairman Alfred Watkins, Intel Capital Africa director Sam Mensah, and Microsoft Middle East and Africa regional head Zaki Khoury.

Vijay Tharumartnam of Multi Development Corporation will speak on the Malaysian "Silicon Valley experience" during a session devoted to "developing smart cities in the African context", in which there will also be presentations on Bangalore, Indian's Silicon Valley, Mexico's Guadalajara, and Egypt.

Developing country models for skills development

Speakers from Rwanda, China, India, and Cuba will discuss developing country models for building and retaining the necessary skills base for a robust ICT industry. These will include Miche Bezy, associate director of Carnegie Mellon University in Rwanda, who will look at how Rwanda is producing a competitive ICT skills base.

Dr Jun Xia of the Beijing University of Posts and Telecommunications will discuss the Chinese model of advancing rural development through ICTs, the Indian model will look at conceptualising e-skills development programmes, while the Cuban model will share experiences on producing industry-ready graduates.

Other sessions will focus on broadband connnectivity and policies for advancing the knowledge-based economy in Africa, while speakers from the World Bank and African Development Bank will address a key session looking at infrastructure development as a basis for integrated ICT initiatives.

Communications Minister Dina Pule said the ICT Indaba sought to ensure that ICT fulfilled its potential as an enabler of economic growth and job creation, not only in South Africa but throughout the continent.

"I take pleasure in inviting our compatriots across the Diaspora to our country to partner with us, the ICT industry, labour and civil society as we enter a bold partnership that seeks to shape the development of the continent," Pule said in a statement on Tuesday.

SAinfo reporter

Inward investment into Africa has more than doubled over the last decade as investor perceptions of the continent have begun to shift, but a significant perception gap still remains to be closed, according to Ernst & Young's second African Attractiveness Survey, released last week.

According to the survey, growing optimism and confidence among international investors saw new foreign direct investment (FDI) projects into Africa growing from 339 in 2003 to 857 in 2011 - with new project numbers in 2011 almost back up to the levels last seen in 2008, before the global financial crisis hit.

The mind-shift has been shared, and to some extent led, by African investors themselves, with intra-African investment increasing exponentially, from 27 new FDI projects in 2003 to 145 in 2011 - 17% of all new FDI projects on the continent last year.

Sixty percent of the 505 global executives surveyed by Ernst & Young said perceptions of Africa as a business location had improved over past three years, with three-quarters of them predicting further improvements in the continent's attractiveness over the next three years.

Ernst & Young forecast overall African gross domestic product (GDP) growth of between 4% and 5% per annum over the next decade, with FDI into Africa reaching US$150-billion by 2015.

Perception gap 'remains to be closed'

While the survey paints an overall positive picture of growing confidence in Africa's prospects, the results also highlight a stark difference in perception between CEOs who already have a business presence in Africa and those who do not.

"Of those who believe that Africa's growth prospects in the near term are significantly positive, half have a dedicated Africa strategy in place, and 92% have an active business presence on the continent," Ernst & Young said in a statement last week.

The perception gap is reflected in the fact that, despite the positive African growth story - including strong GDP and FDI growth forecasts for the next decade - "the continent still only attracted 5.5% of global FDI projects in 2011.

"While this is up from 4.5% last year and is, in fact, the highest proportion of global FDI that Africa has ever received, reservations remain among those who have not yet invested into the continent."

Ajen Sita, Ernst & Young managing partner for Africa, noted that the continent as a whole was still attracting fewer FDI projects than India and far fewer than China.

"There is still clearly work to be done by Africans - government and private sector alike - to better articulate and 'sell' the growth story and investment opportunity for foreign investors," Sita said.

Intra-African investment leads the way

A key highlight of Erns & Young's report is the growing self-belief and commitment by Africans to move the continent forward, reflected in the substantial growth of intra-African investment.

Between 2003 and 2011, according to the survey, there has been 23% annual compound growth in intra-African investment into new FDI projects. This growth has been accelerating, with the growth rate up by 42% since 2007.

This growth is being led "by the respective regional powerhouses of Kenya, Nigeria and South Africa," Ernst & Young said.

"All three of these African economies are ranked among the top 20 investors into the rest of the continent between 2003 and 20011, and since 2007 the growth rate in investment from Kenya, Nigeria and South Africa has been 78%, 73% and 65% respectively.

Sita said there had been "a radical shift in mindset and positioning over the last decade, with Africans themselves increasingly leading from the front by providing African solutions to Africa's challenges.

"Clearly work still remains to be done, but pushing ahead with key initiatives such as regional integration and investment in infrastructure will ensure that Africa remains on a sustainable growth curve."

Increasing growth from developing countries

On the sources of Africa's inward investment, the survey found that this came from across the world, with strong growth in project numbers from "rapid-growth" (or developing) and developed markets alike.

Among the former, India has led the way as the fourth-largest FDI investor by number of projects since 2003, with annual compound growth of 46% since 2007.

China and the United Arab Emirates remain prominent too, but there is high growth in investment from an increasingly diverse range of other developing countries, with South Korea, Saudi Arabia and Turkey among those at the forefront.

"At the same time, and despite the challenges they face, there has also been robust growth in investment into Africa from many developed markets," Ernst & Young said. "In the period from 2007 to 2011, UK project numbers have been up 27%, with the US and Germany also both increasing by 21%."

According to Mark Otty, Ernst & Young managing partner for Europe, Middle East, India and Africa, the competition for global FDI is intensifying, with developing countries "not only dominating investor attention and capital flows, but also playing an increasingly strategic role in defining the global economic agenda.

"African countries must position themselves appropriately in this shifting landscape to attract a greater proportion of the investment that will accelerate growth and development," he said.

Moving beyond dependence on commodities

In addition, according to Ernst & Young, the growing diversification of FDI identified as a key trend in last year's survey has continued this year "with even greater levels of investment into less capital-intensive sectors".

This has resulted in a growing number of FDI projects in manufacturing, business services and sales, marketing and support, highlighting a shift away from the extractive commodity-based activities on which Africa has historically been dependent.

"In the midst of a global economy that is being reshaped, with growth and capital flows shifting from north to south and west to east, Africans have a unique opportunity to break the structural constraints that have marginalized the continent for decades, if not centuries," Sita said.

SAinfo reporter

First-world infrastructure plus a vibrant emerging market equals huge investment potential!

South Africa's Cabinet has approved a plan to capture and store carbon dioxide, a major greenhouse gas, in deep geologic formations.

"Cabinet endorsed the Carbon Capture and Storage Roadmap," Performance Monitoring and Evaluation Minister Collins Chabane said at a media briefing in Pretoria on Friday.

Carbon capture and storage has been identified in the government's long-term mitigation scenarios plan as one of the options to reduce carbon dioxide emissions, one of the main drivers behind global warming.

"One of government's strategic objectives is mitigation against carbon emissions and adaptation to the impact of climate change," Chabane said following the Cabinet's latest fortnightly meeting.

South Africa relies heavily on fossil fuels (coal, gas and oil) for its energy production.

Chabane said South Africa had voluntarily committed to reduce its CO2 emissions by 34 percent by 2020, and by 45 percent by 2025, on condition that the requisite technological and financial support was provided.

"Carbon capture and storage can reduce CO2 emissions by 80 to 90 percent ... particularly CO2 from sources such as electricity generation plants, coal-to-liquid plants and cement manufacturing plants," he said.

Carbon capture and storage involves capturing CO2 from a point source, such as a power station or coal-to-fuel plant; transporting it, usually by pipeline; and pumping it down a borehole into porous rock formations deep underground, where it is contained and stored.

A recently-released Geological Storage Atlas has identified potential carbon capture and storage areas in South Africa.

It is understood the next step in the carbon capture and storage "roadmap" process will be a test injection of CO2 into a suitable geologic formation, to determine whether such storage can be safely undertaken in South Africa.

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