Nigeria and South Africa lose out in Foreign Direct Investment in 2012

A United Nations report reveals that Foreign Direct Investment into the economies of the African Giants; Nigeria and South Africa plummeted despite the high record in Africa in 2012 which was among the two continents to witness such in the year. Year-on-year rise in FDI inflows was witnessed by South America; it which grew 12 percent, though flows to the Latin America and Caribbean region as a whole declined.

Reuters report that while global FDI fell by 18 percent last year, Africa bucked the trend with inflows increasing 5 percent to $50 billion, as countries like Mozambique, Tanzania and Uganda reaped the benefits of new discoveries of oil and gas, according to the 2013 World Investment Report published by the United Nations Conference on Trade and Development.

Although West Africa had the biggest share of investment, flows to the region declined by 5 percent to $16.8 billion largely due to decreased investment in the continent's top oil producer Nigeria. Its FDI inflows fell from $8.9 billion in 2011 to $7 billion last year due to political insecurity and a weak global economy, UNCTAD said.

FDI flows to South Africa slumped 24 percent to $4.6 billion in 2012, largely due to a foreign mining company offloading its stake in a South African subsidiary, the report said. The case of Nigeria is complex because it is fighting an insurgency in the north which is drastically affecting investors confidence.

However, inflows to Mozambique, where companies like Brazil's Vale and London-listed Rio Tinto are developing huge offshore gas and coal deposits, doubled to $5.2 billion. FDI to central Africa surged 23 percent to a record $10 billion, while in east Africa recently discovered gas reserves in Tanzania and oil fields in Uganda resulted in a 40 percent jump to $6.3 billion.

The report also found that African countries, led by South Africa and Angola are stepping up their investment overseas, with FDI outflows from the continent nearly tripling from $5 billion in 2011 to $14 billion last year.

China's Sinopec buys Marathon's Angola oil fields for $1.52 billion

China's Sinopec Group has agreed to buy Marathon Oil Corp's, Angolan offshore oil and gas field for $1.52 billion, Asia's largest refiner producer said.

It is no news that China is moving rapidly to capture the 'African Continent' if possible and if permitted. The main need of China is in line with that of Washington; oil and energy.

Beijing Consensus has every semblance with Washington Consensus in terms of quest for resources and wider outreach to source for them. Africa is their central point of focus.

Sonangal Sinopec International Ltd, the group's subsidiary, will acquire Houston-based Marathon's 10 percent stake on the Angolan field called Block 31, it said in a statement.

China's oil majors has been on an aggressive hunt for overseas assets to bulk up their energy reserves to meet future demand from the world's second-largest economy.

According to Reuters, CNPC agreed in March to buy a $4.2-billion stake in a Mozambique offshore natural gas field and on Friday agreed to buy a 20 percent stake in Novatek's (NVTK.MM) $20-billion Yamal-LNG project in northwest Siberia.

The Angolan Block 31 field, operated by BP (BP.L), has estimated proved and probable reserves of 533 million barrels, Sinopec said, adding that it would hold a stake of 15 percent in the block when the transaction was completed.

The $1.52 billion due to be paid by Sinopec is part of a $3-billion asset disposal target set by Marathon in 2011 to shore up its balance sheet to fund further exploration and development projects.

Angola is moving rapidly in oil production, rivaling the African oil giant, Nigeria especially when the Niger-Delta crisis was on. Portugal, her former colonial master is also relying on Angola and its investments, centrally with and after the world financial downturn.

The deal is subject to approval by the Chinese and Angolan governments.

Zimbabwe should postpone its election; Southern African leaders urge Mugabe, discuss Madagascar

The summit of the 15-nation Southern African Development Community (SADC) in the Mozambican capital, Maputo, came two days after Mugabe declared the election day, a date immediately rejected by Tsvangirai, his partner in coalition and main political rival.

The bloc leaders told Zimbabwe to ask its courts to extend a July 31 deadline to hold elections, amid high tension between President Robert Mugabe and Prime Minister Morgan Tsvangirai over the timing of the vote.

The argument of Mugabe was that he was following an order from the Constitutional Court to hold the election by the end of July which sounds more like an excuse of convenience. Tsvangirai said it was too soon to allow the reforms of the media and security forces required for a free and fair vote.

"The summit acknowledged the ruling of the constitutional court on the election date and it will be respected," Tomaz Salomao, Secretary General of SADC, said after the one-day meeting.

"What the summit recommended was, in recognising that there was a need for more time, that the government of Zimbabwe engage the constitutional court to ask for more time beyond the deadline of July 31." SADC leaders had earlier feared that hurrying the elections would increase the chances of a disputed result and violence.

In 2008 hundreds of Zimbabweans, mostly Tsvangirai's supporters, were beaten and killed, creating a flood of refugees into neighboring countries. Finance Minister Tendai Biti, who is also secretary general of Tsvangirai's Movement for Democratic Change party, said SADC had "ordered a return to constitutionalism".

"We Zimbabweans want an election yesterday. However, it must be legitimate and credible," Biti said. The SADC summit, postponed by a week at Mugabe's request, had also been expected to discuss finance for the elections, expected to cost the cash-strapped country $132 million. The funding was not debated during the summit.

Madagascar was also discussed as wife of the former President, Marc Ravalomanana, ousted by Disc Jockey-turned-politician - Andriy Rajolina - said she will not step down. Rajolina rejoined the race when she decided to contest. Calls have also been made for Rajolina to step down by the African Union.

Foreign donors froze budget support and the Indian Ocean island was suspended from the African Union. Succumbing to regional pressure, both men agreed in January not to run in a presidential election in August.

Rajolina was assisted by the military to oust Ravalomanana in 2009. The wife of Ravalomanana said her husband's supporters want her and her mission is to end the food crisis in the country while her husband takes care of the business of the family.

The summit said there was need for international political and diplomatic pressure for "illegitimate presidential candidates to withdraw their candidatures for the sake of peace and stability in Madagascar". France also threatened not to recognise the election.