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Egypt to build $1bn flat steel integrated industrial complex

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The Egyptian government has announced plans to establish an integrated industrial compound to produce flat steel.

The investments according to a statement on Wednesday by the cabinet are worth $1 billion and will complement industrial reforms in the mining and drilling sector through which President El Sisi intends to reform the economy.

The complex would target international exports while also serving the local market with a flat steel manufacturing capacity of 1.8 million metric tonnes annually.

The project will be built in collaboration with an international firm, according to the cabinet, which did not specify which company. It has received approval from the General Authority for Suez Canal Economic Zone.

Already, Egypt is home to some of the continent’s biggest steel companies. Some major steel producers in Egypt are Al Ezz Steel Rebars S.A., which owns and operates the Al Ezz El-Dekheila Steel Co. plant in Alexandria and has the capacity to produce 6 million metric tons per year; Suez Steel Co. (Solb Misr), with the capacity to produce 2 Mt/yr of steel at its plant in Ain Al-Sokhna; Beshay Steel Group, which has the capacity to produce 3.0 Mt/yr of steel at its plant in Sadat City; and the Egyptian Steel Group, which has the capacity to produce 830,000 t/yr of steel at its plant in Ain Al-Sokhna, among other producers.

Mining and steel production are part of Egypt’s main earning sources. According to reports, GDP contribution from Mining in Egypt increased to 121359.30 EGP Million in the third quarter of 2022 from 103335.20 EGP Million in the second quarter of 2022.

Egypt’s economy is challenged, as its official data agency, CAPMAS on Sunday revealed that the country’s headline inflation, driven by the basket of goods that comprise the consumer price index, rose higher than expected to hit 37.4% in August from 36.5% in July.

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Despite protests, TotalEnergies gets South Africa’s approval for offshore drilling

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After turning down an appeal from more than a dozen people and lobbying organisations, South Africa’s environment ministry has approved TotalEnergies’ plans to drill for natural gas and oil offshore.

There have been a string of lawsuits seeking to stop energy companies from exploring new offshore discoveries at the foot of Africa, with a specific appeal to stop TotalEnergies from drilling in Blocks 5/6/7 off the coast of Cape Town.

The area in question is 10,000 square kilometres in size and is located offshore roughly between Cape Town and Cape Agulhas. It is 170 kilometres from the coast at its farthest point and 60 kilometres from the coast at its closest point. The water depth ranges from 700 metres to 3,200 metres.

Natural gas and crude oil production are quite limited in South Africa, and consequently, the bulk of South Africa’s crude oil is imported, as the country largely counts on its large coal resources.

The request is for the ministry to revoke the environmental authorization given to the French energy company by the Department of Mineral Resources and Energy in April, citing issues like marine noise, oil spills, climate change, and inadequate public consultation. But environment minister, Barbara Creecy on Monday dismissed the concerns in a 144-page ruling.

“I am therefore satisfied that the impacts of noise and light have been adequately assessed and mitigated to ensure low impacts on the receiving environment. As such this ground of appeal is dismissed,” Creecy said in the ruling.

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Nigeria sets $5bn investment target for its startups

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Nigeria’s Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, has revealed a plan to increase investments into the country’s tech start-ups to $5 billion within five years.

Tijani, on Monday in a policy document titled, ‘Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy,’ announced the target.

Describing how the ministry would measure if its plan was working, Tijani said, “Increase capital raised by Nigerian tech startups 50 per cent year-on-year from ~$1bn/yr in 2022 to $5bn/yr in 2027.”

The minister emphasised that a strong digital economy required innovation, entrepreneurship, and access to capital in the current global technology landscape. According to him, the ministry’s main goal in this regard will be to promote the development and sustainability of startups, with a focus on those coming up with ground-breaking solutions for important economic sectors.

Tijani said, “Recognising the critical role of patient capital in the growth of startups, we are committed to increasing the local availability of patient capital. We intend to create an environment for startups to raise the funding they require to thrive locally and promote the domiciliation of startups within our nation.”

According to Tijani, “Digital transformation and innovation are fast becoming a catalyst for economic progress,” and the “intersection of a strong digital economy and our innovative and youthful population presents us with a unique opportunity to chart a course towards prosperity, inclusion, and global relevance.”

In his remarks on AI, the minister said that over the next 20 years, the technology would usher in a new era of technological and economic change. Tijani emphasised that Nigeria needed to develop a comprehensive national strategy to utilise AI’s potential responsibly and inclusively.

He said, “The implementation of the strategy amongst other things is expected to elevate Nigeria as a top 10 location for AI model training and talents globally. In addition, we will position Nigeria as a global leader in accelerating inclusivity in AI dataset.”

According to Africa: The Big Deal, Nigerian startups raised $1.2 billion in 2022 despite a funding shortage, while a Briter Bridges report says African startups raised $5.4 billion in 2022.

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