tv Business Deutsche Welle November 21, 2019 7:15pm-7:31pm CET
proving the phrase that one man's trash is another man's treasure. i'm next here on day don't you get hot alpha's of it not business that africa will have more news at the top of the out of the. what secrets lie behind the swamps. discover new adventures in 360 degree. and explore fascinating world heritage sites. p.w. world heritage 360 get enough now. 2 2 2
2 2 2 time is running out for. the flag carriers crumbling on the $1900000000.00 of debts and a strike his crippling operations will the government have any other choice and to back it with tax payers money. is becoming africa's poster child for foreign direct investments how did they do it's causing websites to start those. and africa's all explode is the relaxing legal rules to entice foreign investors
investors but is it too little too late. this is business africa. welcome south african airways is running out of cash and could be liquidated if the government doesn't give it additional guarantees soon a board member said on wednesday trade unions are also threatening to escalate a crippling strike that started last week the wage talks turned sour and said it plans to cut almost 20 percent of its stock off state owned has racked up losses of almost $2000000000.00 over the past 13 years. late last week thousands of south african airways workers and barked on an open ended strike they want higher wages but the company has rejected their demands and threatened layoffs hundreds of flights had to be counseled as the strike got underway. passengers reacted with more or less empathy. i will never fly fly again ever have
and i've got to get that from a come back to the exit to south africa and i'm just being so inconvenient it's costing me a lot of money now ok the company was ready i'll pull up you know. i didn't edit ticket but they putting me on another flight workers may have a point i don't know all the intricacies of it but i am very fearful for the economy because obviously to speak can't afford it in this country the ses news ing out the economy's losing out and that's not good for the vista confidence. the strike is compounding the crisis gripping s.a.a. the airline is deep in debt despite several government bailouts it's not posted a profit since 2011 the cash strapped government says it can bail to carry arrives so its financial woes could see it grounded permanently. well the financial crisis as a is a key test of presidents so around oppose this pledge to fix bloated stayed friends
but the government has said this week it will not throw money at the failing company let's bring in our correspondent us from girl in capetown will rome of those up in the end have no other choice than come to ses rescue with taxpayer money well that's has happened over and over again right these bailouts it's been so many many over the years and although you saw people in the teacher saying like ok we can't do south african airways there's also more and more people here in south africa that are actually saying or so i'll march taxpayer money going to south african airways and not this enough look what we know now is that they probably won't do not have been allowed this fiscal year south africa is already under a huge fiscal restraint. so what what hamas has done so far is it's sending his minister of public enterprises who are a very capable minister to you know through south african airways as you try and folks sense into them saying to you to strike us like this we have to restructure
our ways this company will survive that will mean job losses and we also call on the fort hood to increase in salaries that you're asking for and see the asking understand it because otherwise this company may almost and all of you will lose your jobs that was what happens if indeed goes under what does it mean for the south african economy. well south african airways itself actually was quite hopeful still today they've been saying that they've been speaking to that accent that they've secured loans of one of them 20000000 not enough of course to cover that but at least they're saying it could keep us afloat a little bit longer out although now of course the debt is in greece and wits with this crisis will mean that at least $5000.00 jobs will get lost and that in a country where you are already looking at 29 percent of unemployment and of course is not just as the employees but also a lot of stock contractors so indeed it would be very severe for for the economy of south africa and also to lose that brant i think that's also something that yet the
government is not willing to. listen to other thank you very much. no the compacts with africa is an initiative aimed at bringing more private investment to african countries it's called compact wiz not for africa because it's all about building a real partnership this week the german government hosted african politicians to lots of smiles and encouraging talk but a closer look shows that germany isn't doing that well it's a closer look france a former colonial power is leading foreign investor with direct investments at $64000000000.00 next is the u.s. with $50000000000.00 for by china with investments worth around $43000000000.00 and germany is lagging behind with only $10000000000.00 over the past 10 years german investment in africa has been stagnating while china's investment rose rapidly as that country has discovered the continent as
a lucrative market. awards also be thanks to a rising middle class that is projected to grow from 150000000 people today to 600000000 people in 2030 times the german investors to see the writing on the wall still some german companies are investing more in africa and there are good examples of progress as honest report shows it's on the sidelines of the compact. where investors and policymakers from across the continent break the ice and lead the seeds for future economic cooperation the deal you reform and capital will flow. has led the way from civil war to economic. you can register your business within 6 hours you can file your taxes online and these are some of the services that we try to really make sure that we
improve on efficiency and that's what has made rhonda now the 2nd easiest country in africa to do business by the world bank rankings and investors agree folks walk in has opened the plant for electric vehicles siemens is building the charging network and a local startup has seized the chance to create a car sharing app it's win win and sustainable you bring and build we're bringing education investment and infrastructure and actually we're not extracting too much raw material. with success comes self confident and the prospect of a brighter future rwanda's economy is growing at 8 per cent per year and now that we have the continental free trade area women which has created the largest trading block in the world by stablish in yourself in run do you have access to the whole continent africa is on the door but german firms are still barely on the road there
the change is coming investments have increased in the last year by 10 percent. well the need for foreign investment is driving many african states to make it easier and cheaper for overseas companies to keep their oil and gas flowing from ghana to go beyond governments easing terms to lure investors the change in strategy follows declining oil production and on goal and cameroon and disappointing big brands for licenses in ghana which now plans to allow companies more leeway in where and when they can drill on goal is also revising laws and plans to privatized all assets these moves show that the era of $100.00 a barrel is over the prize for brant crude has fallen over the last 5 years to now 62 percent 62 dollars a barrel and as we knew a bulls and efforts to cut fossil fuel consumption gained ground concerns are also growing that the world will not need as much of africa's oil as it did in the past let's talk about this a bit more and bring in n.j.
i yuki's the chairman of the africa energy chambres and also of multiple books on the africa's energy sector n.j. how dire is the situation for oil dependent economies in africa. it is it is troubling what is going on or depend in a common economies around africa they have basically relied on oil and gas to really fun budgets of the economies and drive growth so when to put when the prices plunge and did no longer $100.00 we really take it we really take it big pete in fresh structure in new social spending and they have to cut budgets and so it's very easy it's not a very good time it's picking up but it's not like where it was in 2014. we've had some countries are trying to ease legal restrictions will that be enough to entice western investors. it is showing some signs that it is going to be
and is going to entice with investors but we have to do more we here really have to create and in every environment to attract more people to put money in exploration you know a lot of people right now with energy transition and. climate change issues do not really want to for an exploration programs but this is not good but it's a different dynamic shift and you would see a lot of that in the upcoming article in the chambre report that is coming up at the end of this month you just saw us last week a big big deal just covering gonna buy an african firm but also if you look at got blown you look at ghana you look at angola the are looking at is still looking at ways to see how do we ensure that we can still i tracked those companies like before because the good old days have changed they we have to do something different we have to make it actually so that people can invest and people can
really do and our companies don't really develop that but we have to change that it has to be a focus of on gas and not crude because gas is really going to do what i can i means to create what i suspect are chemicals different kind of jobs and it would really create power plants because 650000000 people do not have power it's time for us to develop icon on the scene all africans and we need to really push governments and shrive governments to do the actual changes and it's tough but you have to give something to get something you know it's business is not charity and we have to continue pushing it it's thank you very much. thank you so much thank you for having me. before we go a quick look at some other business stories making headlines today from satellite specialist hall as space is about to launch a geostationary satellite into orbit for european operate. the 3 and
a house on spacecraft will provide low cost high speed internet to most of africa as well as southern europe says they to package rates will be affordable on african average incomes. planned arbitration talks to help end the strike at lufthansa have been cancelled at the last minute germany's biggest airline has been facing the largest strike in its history but haven't proved. over several days unions demand better wages as well as improved conditions for temporary workers. and that's it for me and the business scene here africa with christine that is up next right after.
like this you know i mean in your minutes i'm gone yes. most of the time what i'm going to miss you know what i'm on what an organizer i know what is a term. here because i see for sasuke quote i've only said but i caught going on what they're doing fronted. by the fact that. this is steve news after that coming up to the next 15 minutes the west african country of guinea-bissau is gearing up for a crucial election would it be a step in the right direction for one of the poorest and most unstable countries on a. life here in cuba sorrow is about survival trying to that every person here is just trying to survive the creator to be means tested and damned if you do damned if you doesn't give the oath to say scenes like this will be put into it when it will.