United Kingdom IC PuBLICATIoNS, 7 CoLdBATh SquArE, LoNdoN EC1r 4Lq. Tel: +44 20 7713 7711 Fax: Admin +44 20 7713 7898 Editorial: +44 20 7713 7970 E-mail: icpubs@africasia.com Website: www.africasia.com France IC PuBLICATIoNS, 609 BAT A 77 ruE BAYEN 75017 PArIS Tel: +33 1 44 30 81 00 Fax: +33 1 44 30 81 11 E-mail: info@icpublications.com Website: www.icpublications.com Group Publisher: Afif Ben Yedder (benyedder@africasia.com) Editor: Anver Versi (a.versi @africasia.com) Editorial Department Associate Editor Tom Nevin Correspondent-at-large Stephen Williams Editorial Assistant Carole Lambert Correspondents in Africa Barnabas Thondlana, Leo Odera Omolo, Blamuel Njururi, Herald Tigama, Pini Jason, Rob Rose, John Ansah, Derek Otieno, Chris Ndivanga, Masupu Rakabane Special Correspondents Milan Vesely, Moin Siddiqi, Dr Karamo Sonko, Neil Ford, Franççois Misser, Graeme Ewens, Pini Jason, Eluem Izezi, Jennie Street, Paul Michaud Sales and Marketing Associate Group Publisher: Omar Ben Yedder (o.benyedder@africasia.com) Director of Sales & Marketing: Saliba Manneh (s.manneh@africasia.com) Marketing Director: Malek Bey (m.bey@africasia.com) Advertising Sales Directors: Alya Assad (a.assad@africasia.com) Arthur Jones (a.jones@africasia.com) Nick Rosefield (n.rosefield@africasia.com) Medrine Chitty (m.chitty@africasia.com) Special Projects Consultant: Monique Butt Distribution Manager Mike Penton (m.penton@africasia.com) Subscriptions: IC Publications Subscriptions Dept Tower House, Sovereign Park, Market Harborough. Leicestershire LE16 9EF United Kingdom Telephone: +44 1858 438 792 Fax: +44 1858 461 739 Email: subscriptions@africasia.com Subscription rates for 11 issues: UK: UK£40.00, Eurozone €80.00, USA US$90.00, Rest of world UK£55.00 Back issues including postage: UK£4.00 (UK), UK£5.00/€7.00/US$8.00 (overseas) Printers: Headley Brothers Ltd, The Invicta Press, Queens Road, Ashford, Kent, TN24 8HH. Indexed and abstracted in PAIS International and included in one or more of the Informartion Access Company full text reference databases. Microfilms available from Xerox University Microfilms, 399 N. Zeeb Road, Ann Arbor, Michigan 48106, USA. Indexed by UMI/Data Courier, PO Box 327770, Louisville, KY 40232-2770 USA. All pictures AFP unless indicated. registered with the British Library. ISSN 0141-3929 ©2008 IC Publications Ltd. Contents March 2008 14 Cover Story Africa’s Investment Boom 30 Energy Gazprom for Nigeria? Member of The Audit Bureau of Circulations. N° DE COMMISSION PARITAIRE EN COURS Mars 2008 Déépôôt léégal N0 DE COMMISSION PARITAIRE EN COURS 40 Commodities Softs remain firm ISSUE 340 WWW.AFRICASIA.COM Editorial 13 The power of feeling good Cover story Africa’s Investment Boom 14 Rising tide of FDI reaches Africa 16 South-south trade fuels investment growth 17 South Africa is biggest investor in Africa 18 The trade-offs 20 The Asia connection 24 The Chinese new wave 26 S Africa joins elite FDI destinations Energy 30 Gazprom for Nigeria? Mining 35 Coal is back 37 Black firms go into manganese Commodities 40 Softs remain firm Special Report Aviation in Africa 44 Change is in the Air 46 Interview: AFRAA’s Christian Folli-Kossi 48 Reality check for African airlines 50 Africa’s low-cost airlines 2010 World Cup Watch 52 Bafana Bafana deepen gloom Investment 54 Mittal wrapping up Africa Countryfiles 56 Kenya: Cautious optimism 58 Small earners face the brunt 62 Nigeria: Delta aims for industrial power 64 S Africa: Power cuts hit crisis point 66 Sierra Leone: Timber exports banned 67 East Africa: Concerns over Chinese logging Reviews Book/Music 64 The Wizard of the Nile 66 Think of One