Struggling air carrier South African Airways has gained a new lease on life after news surfaced that its business rescue process has successfully concluded with the company now being ‘both solvent and liquid’. The practitioners’ achievements are quite phenomenal, with negotiations with concurrent creditors having reduced the airline’s liabilities from US$2.3 billion to US$153 million. This has however come at a heavy cost for the company’s workforce who saw their numbers decline from 4 700 to 1 000 after voluntary severance packages were negotiated. There’s still a long road ahead before the airline flies again with creditors still needing to elect a figurehead to lead the implementation of the rescue plan, which will cost around US$686 million. Thereafter, the company will need to find new investors which in itself will be a difficult feat in a precarious global environment for the aviation industry.
Africa’s Top 10 Stories – April 2021
March was a key milestone for global vaccination efforts and Africa was no exception. To date over 28 African countries have initiated vaccine rollouts in some form. Coverage remains uneven with states resorting to a mixed approach in securing sufficient supplies. The primary source is the Covax facility, an initiative spearheaded by developing nations for equitable access, and is supported by the Covid -19 African Vaccine Acquisition task team and bilateral agreements between African governments, corporations, and foreign donors. The most widespread vaccine variant currently in use has proven to be the Oxford/AstraZeneca AZD1222, which has been supplied to no less than 17 African states. Next is China’s Sinopharm vaccine which has been distributed in eight countries, with other variants produced by Moderna, Johnson & Johnson and Pfizer also being evident but more sporadically. Progress on actual vaccinations vary greatly throughout the continent, with Morocco having already inoculated 6.6 million whilst other countries like Egypt have only reached a few thousand.
Following a protracted period of ill-health, Tanzanian president John Magafuli has passed away. International observers have called for calm and a smooth transition of power as former Vice president Samia Suluhu Hassan is sworn in as the country’s first female leader. Hassan faces a difficult battle ahead of her in deciding on an interim governance strategy in a country which has become increasingly synonymous with authoritarian and economically interventionist policies under Magufuli. Though popular for his stance against corruption, Magafuli’s regime marginalised opposition factions and parties, silenced journalists, and critics, and played an active role in hampering the country’s economy by handing out strategic contracts to political allies. Magafuli was best known as the continent’s foremost coronavirus sceptic, which served to hamper healthcare efforts in the country.
The so-called Risk Mitigation Independent Power Producer Procurement Plan closed in late December last year and attracted a total of 20 bid responses, eight of which were selected for a final generation total of 5,117MW to be introduced into the grid by August 2022. One successful bidder was Turkish company “Karpowership” which will supply South Africa with three floating facilities for adding emergency power into the grid. Other bids included more sustainable long-term projects such as the innovative Oya Energy Hybrid facility at Matjiesfontein. This one-of-a kind setup combines wind, solar and battery storage, and will produce 128MW of power, falling into one of three “renewables development zones” earmarked by the government toward reducing the country’s dependence on coal power. According to research the country is one of the most suitable for a holistic renewable energy mix, with some estimates suggesting that offshore wind turbines alone could supply up to 800% of energy needs.
Hopes that oil and gas developments in northern Mozambique would see a smooth return this year were finally dashed this month as French giant TOTAL announced another withdrawal of staff from the country. This comes after a peak in militant activity that has seen several key towns seized from government control. In late April, the country’s northern region was rocked by a sudden and violent strike against the port town of Palma, which saw militants attack key targets including police stations, banks and notably a local hotel hosting foreign workers. This drew international outrage and cast serious doubt at both TOTAL and Mozambique’s previous assurances that the situation was under control – over 9000 people have reportedly fled. The French Oil Giant has not confirmed when exactly it will return and continue with its US$20 billion investment. However, they have stated that operations will resume once clashes subside.
