2010-03-31
KINSHASA (Reuters) - Democratic Republic of Congo hopes to make its oil sector more attractive to foreign energy firms by offering competitive contracts and speeding the process for awarding blocks, according to energy ministry recommendations seen by Reuters.

The proposals are part of a hydrocarbons code due to be voted during parliament's current session, and come amid rising investor interest in the central African nation's tough-to-reach crude reserves after big finds in neighbouring Uganda.

"These resources should be realised so that they really benefit the country and its people," the ministry said in the recommendations. "To do this while ensuring the interest of the nation, the law that governs this sector should contain provisions to attract investors," it said.

Congo's tiny oil sector pumps about 25,000 barrels a day and development has been virtually paralyzed by decades of corruption and conflict.

But a clutch of investors are now lining up to start exploring zones like Lake Albert and Lake Tanganyika that could make the country, which has traditionally relied on mining for the bulk of its reserves, a much larger producer and pad debt-ridden state coffers.

The energy ministry's proposals for the new oil code would allow producer companies to claim up to 60 percent of any eventual oil output after royalties to cover their costs, which are typically high during early field development.

That percentage would rise to 70 percent for reserves deemed difficult to reach, including those in very remote zones, in deep water, or swampy areas, according to the recommendations.

The state would then take no less than 40 percent of the remaining output, dubbed "profit oil", according to the recommendations.

SPEED

Industry observers said the shares proposed for covering costs and for remaining profit-oil are better than in most other oil states. In Libya, for example, some production sharing contracts grant the state more than 90 percent.

Congolese government officials declined comment on the oil code, which should replace existing laws for oil and gas currently contained in Congo's mining code.

The draft, which has already been adopted by Congo's Senate and is now with the National Assembly, also recommends changes aimed at speeding up drawn-out processes for awarding and ratifying exploration and production blocks.

Some companies have been waiting three years for presidential approval for uncontested blocks, while other companies -- such as Tullow and Divine Inspiration Group -- have competing claims on the same blocks.

One proposal would require the president to approve or reject any oil agreements within 45 days. Companies would also be under pressure to start "active field development" within 18 months of gaining a production licence, instead of three years.

The recommendations also stipulate that if the ministry fails to answer requests within three months, companies can assume the answer is positive.

2010-03-31
MOGADISHU (Reuters) - Somalia's prime minister has said military force alone will never defeat Islamist extremists engaged in a three-year-old insurgency in the lawless Horn of Africa nation.

Omar Abdirashid Sharmarke also said a government inquiry had found allegations in a U.N. report of corruption and the sale of arms to rebels by Somali government troops to be baseless, and said the report was of "doubtful validity."

"We have to understand that military capability alone will not defeat the rebels. There are also some ideological issues which must be addressed", Sharmarke told Reuters late on Tuesday.

Somalia has lacked an effective government for nearly two decades, and Western and neighbouring countries say it is a breeding ground for militants intent on launching attacks on east Africa and beyond. It is also a base for pirates seizing foreign ships for ransom.

Somali experts say the western-backed Transitional Federal Government is preparing for a long-awaited offensive aimed at driving al Shabaab Islamist fighters out of the capital, Mogadishu.

But Sharmarke said Somalia's future stability could not be ensured by a single military operation and that public trust in the government had to be improved.

"Religious scholars have to define a direction for their people and as a government we are restoring the trust of the public in the system," he said.

LACK OF TRUST

The al Qaeda-linked al Shabaab fighters have left President Sheikh Sharif Ahmed's administration in control of little more than a few blocks in the mortar-pocked streets of the capital.

The group wants to impose a harsher version of Sharia, Islamic law, on Somalia's 9 million people, of whom more than a third depend on emergency aid.

Speaking from his office in Mogadishu, Sharmarke said he expected to win public confidence by bringing new faces into the cabinet.

He said he hoped this month's power-sharing deal with the moderate Ahlu Sunna militia would bring the government broader grassroots support and improve the security forces' morale.

The prime minister denounced a report by the U.N. Monitoring Group on Somalia, saying it had played down the importance of the conflict that has killed 21,000 Somalis since early 2007 and uprooted 1.5 million from their homes.

The report said two U.N. aid agencies had dealings with a prominent businessman linked to Islamic extremists, accused officials of selling diplomatic visas for up to $15,000 and alleged government troops were supplying rebels with arms, Sharmarke said.

An initial government inquiry found some of the accusations to be "baseless" and there will be no further investigation into the rest of the report's findings, he said.

"The validity of this report is doubtful," Sharmarke told Reuters.

2010-03-31
JOHANNESBURG (Reuters) - South African insurance firms Metropolitan and Momentum, an unlisted unit of banking group FirstRand, said they would join hands to create a $4 billion dollar insurer through an all-share deal.

The deal between Metropolitan, South Africa's fifth-largest insurer by market value, and larger rival Momentum is likely to create South Africa's third-largest insurance group with a market value of up to 30 billion rand, executives from the two companies said on a conference call.

The two sides said the combined company would benefit from enhanced growth opportunities and economies of scale.

"On the face of it, it's a good deal. The two businesses complement each other very well," said a Johannesburg-based analyst not authorised to speak to the media. "There will be lots of opportunities to cross-sell within the new group."

Metropolitan operates in low to middle-income markets, while Momentum focuses on upper-income retail customers.

Although smaller Metropolitan will technically acquire Momentum, analysts said the ownership structure favours the larger firm.

"On a shareholder level, it looks like Momentum is taking Metropolitan," said another Johannesburg-based analyst, who also was not authorised to speak to the press.

Metropolitan will issue 950 million new shares to FirstRand in exchange for Momentum. The bank will then pass on its stake in Metropolitan to its shareholders, who will own about 60 percent of the combined insurance firm. The remainder will be held by current Metropolitan shareholders.

Laurie Dippenaar, currently the non-executive chairman of FirstRand, will be the chairman of the new firm.

EMBEDDED VALUE

No price was given for the deal but the companies said the number of new Metropolitan shares issued to FirstRand was be determined by embedded value, a common valuation of life insurance firms that takes into account the value of net assets and future profit.

Momentum had an embedded value of 17.8 billion rand as of the end of December, while Metropolitan had an embedded value of 12 billion rand.

FirstRand, South Africa's second-largest lender, said the disposal of Momentum would allow it to focus on its mainstay banking businesses.

FirstRand's investment banking arm, RMB Holdings said it may create a separately listed insurance firm from its stake in the new merged company and its holdings in insurers Discovery Holdings and Outsurance Insurance Co.

RMB said its insurance unit would likely own about 18 percent of the company created from Metropolitan and Momentum but that it could up its stake to under 35 percent.

Metropolitan shares ended the session 11.79 pct higher at 16.88 randand and FirstRand was up 0.75 percent at 20.19 while the Johannesburg's All-Share index was flat.

Between them the two insurers have a presence in 12 countries in Africa.

ABUJA (Reuters) - Nigeria's Senate on Wednesday confirmed 38 new ministers proposed by Acting President Goodluck Jonathan, including the country's former junior oil minister and a senior Goldman Sachs executive.

The Senate approval will allow Jonathan to quickly assign portfolios and form his new cabinet, a move his supporters hope will herald a more muscular period of government and ease political uncertainty in Africa's most populous nation.

"We use this opportunity to urge the Acting President that any minister who does not live up to the expectations of Nigerians should not be spared but be removed immediately," Senate President David Mark said after the confirmation.

Jonathan sacked the cabinet two weeks ago in a bid to assert his authority a month after assuming executive powers in the absence of ailing President Umaru Yar'Adua, who was receiving medical treatment abroad and remains too sick to govern.

The nominees confirmed so far include 13 returnees from the outgoing cabinet and while political analysts hope progress on key reforms may accelerate, few expect Nigeria's broad policy direction to change.

"There is nothing wrong with the way things have been done. The energy is what we need," Murtala Yar'Adua, President Yar'Adua's nephew and one of those approved as a new minister, said while being screened by lawmakers.

The cabinet shake-up comes at an important time for Nigeria, sub-Saharan Africa's second largest economy and the continent's biggest producer of oil and gas.

Key reforms before parliament include a wide-ranging bill to overhaul the energy industry, legislation to help sanitise the banking sector and revive lending, and plans to revamp the electoral system and prevent a repeat of chaotic 2007 polls.

Former Minister of State for Petroleum Odein Ajumogobia, tipped as a possible oil minister, and Olusegun Aganga, a London-based executive at Goldman Sachs seen as a contender for finance minister, were among those confirmed.

Nominees from the outgoing cabinet also include former Information Minister Dora Akunyili, former Justice Minister Adetokunbo Kayode, former National Planning Minister Shamsuddeen Usman and former junior Niger Delta minister Godsday Orubebe.

Questioned by lawmakers during the screening process, most of the newly confirmed ministers said they wanted to forge ahead with programmes begun under Yar'Adua.

Ajumogobia said he wanted to increase the participation of Nigerian companies in the oil industry and that deregulating the downstream sector was key to getting the country's refineries working again.

Aganga said Nigeria's widening budget deficit was not in itself a problem as long as the government focused on the quality of its spending and concentrated on projects that would yield "strong social and economic returns".

Nigeria's cabinet is made up of more than 40 ministers, ministers of state and ministers in the presidency. Jonathan is expected to soon submit a second list of nominees for Senate approval to complete his new team.

2010-03-31
BRUSSELS (Reuters) - Foreign investors in agricultural land in developing regions such as Africa must respect local human rights, livelihoods and resources, the European Union said in a policy paper released on Wednesday.

Sharp rises in global food prices in 2008 prompted major food importers such as Saudi Arabia, China and South Korea to lease farmland abroad -- often in Africa -- to secure food for their populations.

But critics including the EU have warned that such deals, described by some as land-grabbing, are often not transparent and can compromise the livelihoods of local farmers in developing countries.

"The EU and its member states should support the development of internationally agreed principles for responsible investments in agricultural land," said the policy document on food security drawn up by the EU's executive European Commission.

The paper proposes a new EU policy framework for combating food security problems in developing countries.

Support should focus on increasing food production by small-scale farmers in countries at risk, particularly in Africa and South Asia, it said.

It called for an "ecologically efficient intensification" of food production by smallholder producers, especially women farmers, by providing better access to resources including land, water, credit and other agricultural inputs.

But it said such intensification should not promote technologies that are not sustainable or are incompatible with national capacity to regulated and manage risks.

Other EU priorities should include a 50 percent increase in support to "demand-led" agricultural research, and a focus on improving the nutritional quality of food.

The new policy framework "does not directly imply an increase in EU aid funding," the Commission said.

Last year the bloc pledged aid worth 3 billion euros from 2010 to 2012 under a 20-billion-dollar food security initiative by the Group of Eight developed nations.

AID GROUPS PRAISE FOCUS, ALSO HAVE CONCERNS

Aid groups praised the policy's focus on combating land-grabbing and promoting small-scale farming, but warned that other EU policies could work against its aims.

"Land essential for local food production in poor nations that suffer high levels of hunger is increasingly being seized from farming communities and turned over to biofuel production to meet EU targets," anti-poverty group ActionAid said.

As a signatory to the United Nations' decade-old Millennium Development Goals (MDGs), the EU -- the world's largest development aid donor -- has pledged to try to halve the number of people suffering from hunger globally.

But the Commission said the number of people suffering from hunger had risen to more than 1 billion and this was "affecting human development, social and political stability, as well as causing widespread suffering and loss of life."

The new paper is part of a package of policy proposals on health, education and gender development expected in the next few weeks.

The proposals will form the basis of discussions by member states and the European Parliament on a common EU position on progress towards meeting the MDGs, which will be the subject of a UN summit in New York in September.

2010-03-31
ABIDJAN (Reuters) - Ivory Coast's defence minister has said rebels must disarm before elections can be held, a demand which could further delay a poll seen as critical to renewing investor interest in the world's top cocoa grower.

Disarmament has been a key sticking point as the West African nation gears up for what would be its first elections since a 2002-03 civil war.

Under a previous agreement, rebels were to return to their barracks before the vote, but President Laurent Gbagbo's camp is now insisting on complete disarmament.

"If there is no disarmament, there will not be an election," Michel Amani N'Guessan, defence minister and a close Gbagbo ally, told army officers meeting late on Tuesday to discuss the future of the military.

"Today in Ivory Coast we have two armies on the ground. We first need to restore (one) army. (...) Then the army must secure the elections," he added.

The elections, meant to reunify the country, restore investor confidence and pave the way for reforms aimed at reviving the suffering cocoa industry, were originally due to take place in 2005 but have been repeatedly delayed.

The rebels, who have controlled the country's north since the civil war, say they have disarmed fighters and are now waiting for a newly elected president to complete the process.

But they also stand accused of dragging their feet on disarmament to profit from the illegal taxation they continue to levy in regions they control.

"POLITICAL POSITIONING"

N'Guessan cited a deal that was brokered in Burkina Faso's capital, Ouagadougou, and called for disarmament at least two months before elections take place.

His comments, which have been echoed by other members of Gbagbo's camp touring the country, represent a hardening of the president's position. Last year Gbagbo and the rebels agreed the vote could take place if the rebels returned to barracks in four main towns in the north.

"It is pure political positioning," said Rinaldo Depagne, an Ivory Coast expert at the International Crisis Group.

"Six to eight months ago, (all sides) took a realistic position. Everyone agreed it was impossible (to disarm before elections). But the row over the lists changed everything."

Last month, Gbagbo dissolved both the unity government and the election commission in a row over the process of identifying eligible voters.

Gbagbo accused the poll body of including foreigners on the election lists but his critics say he is stalling on the polls as he is not sure of winning the vote. The move led to days of violent protests before a new government and election commission were set up.

Depagne said he believed the election process had "completely stopped".

2010-03-31
PORT HARCOURT, Nigeria (Reuters) - Pirates freed a captain and crew member of a Ghanaian vessel in Nigerian waters on Wednesday, three days after they seized it off the coast of Cameroon, a Nigerian navy spokesman said.

Attackers hijacked the boat carrying goods from Ghana to Cameroon and Nigeria on Sunday and demanded a $1.5 million ransom for the release of the two hostages.

"Our men found the vessel abandoned at a place in Abana and we towed it to Calabar," said Nigerian Navy spokesman Commodore David Nabaida. "Now the men and the vessel are in Calabar."

He said it was unclear whether a ransom was paid for the release of the two, who were not injured in the attack in the Bakassi peninsula. No group has claimed responsibility.

The Bakassi peninsula, which has the potential to become a source of oil and gas, is home to several armed groups which operate in the Gulf of Guinea.

2010-03-31
ABUJA (Reuters) - A budget deficit of 5-6 percent is not necessarily a bad thing for Nigeria, but the government must focus on the quality of spending, a Goldman Sachs banker tipped to take over as finance minister said on Wednesday.

Nigeria's Senate on Wednesday confirmed Olusegun Aganga as one of 38 nominees for Acting President Goodluck Jonathan's cabinet.

"I know there has been an increase of about 50 percent in the budget and we are running a budget deficit of between 5-6 percent of GDP," Aganga told the Senate during his screening. "That in itself is not necessarily a bad thing."

"What is more significant is that money is allocated to projects that will deliver strong social and economic returns which means that the emphasis is going to be now on implementation, making sure that the quality and efficiencies of spending are looked at strictly," he said.

Jonathan two weeks ago sacked the cabinet in a bid to assert his authority a month after assuming executive powers in the absence of ailing President Umaru Yar'Adua, who remains too sick to govern.

Aganga is currently a London-based executive at U.S. investment bank Goldman Sachs.

Nigeria's parliament last week approved plans to lift spending by half this year as the country tries to spend its way out of a downturn, an expansionary budget which risks pushing it to a deficit of more than 5 percent.

Both houses of parliament approved total spending of 4.608 trillion naira for 2010, sending the legislation to Jonathan to be signed into law.

Analysts welcomed the government's move to boost the economy but cautioned that the quality of spending would be key, given Nigeria's reputation for inefficient budget implementation.

2010-03-31
JOHANNESBURG (Reuters) - South Africa's powerful COSATU trade union federation said on Wednesday it would formally apply this week for permission to strike in protest at power price rises.

It is not clear when the industrial action, which has to be approved by an arbitration panel, would take place although COSATU spokesman Patrick Craven said there was no intention to target the soccer World Cup, which starts on June 11.

"I would hope that it would take place long before the World Cup kicks off," Craven said.

Under South African labour law, a union applies to the National Economic Development and Labour Council for permission to strike, but the arbitration body is obliged to try to resolve any dispute before giving the green light to industrial action.

The World Cup, the first on African soil, runs for a month from June 11 and is expected to attract 450,000 foreign visitors.

In February, South Africa's power regulator granted cash-strapped state-owned utility Eskom a 24.8 percent tariff increase for the 2010-11 financial year in order to fund new power plants. The hikes come into effect on April 1.

COSATU, which has nearly 2 million members, has consistently opposed the tariff increases and said it would resort to strike action if all other attempts to defer the charges failed.

2010-03-31
HARARE (Reuters) - Zimbabwe's High Court has deferred until May 10 a decision on whether to drop charges against an ally of Prime Minister Morgan Tsvangirai in a case that has heightened tensions in the coalition government.

Roy Bennett, treasurer general in Tsvangirai's Movement for Denocratic Change (MDC) party, was arrested in February of last year while his MDC colleagues were being sworn-in as ministers in the coalition led by President Robert Mugabe.

He faces a possible death sentence if convicted of illegal possession of arms for purposes of committing terrorism, banditry and sabotage.

Judge Muchineripi Bhunu announced the delay on Wednesday, saying the transcripts of the trial were not ready. The first session of the High Court ended on Wednesday and would only resume on May 10.

The judge waived a condition of Bennett's bail that he report to police once every two weeks and said he could apply to have his passport released if he needed to travel abroad.

Before the ruling, police detectives served Bennett with a summons to appear in court in eastern Zimbabwe on new charges of unlawfully possessing 92 tonnes of maize at his farm in 2001 before it was seized by Mugabe's government.

A former white commercial farmer and MDC legislator, Bennett told journalists that the new maize charges and delay in passing judgment were a clear indication that he was being politically persecuted.

"I will be on trial the rest of my life," Bennett said outside the court building. "It makes me very sad, there are some people who want to continue politically persecuting me."

TERRORISM PLOT

State prosecutors ended their submissions early this month and the judge is now expected to rule on whether to drop the charges or ask Bennett to take the stand and defend himself.

The state's case -- that Bennett planned to fund a 2006 plot to blow up a major communications link and assassinate key government officials -- hinges on e-mails prosecutors say link the former commercial farmer to the crime.

The state's case was dealt a blow last month when its chief witness, 49-year-old former policeman and arms dealer Peter Hitschmann disowned the e-mails and denied Bennett was involved.

Mugabe has refused to swear-in Bennett until he is acquitted. The dispute is one of the issues being discussed by negotiators from Mugabe's ZANU-PF and MDC in talks mediated by South African President Jacob Zuma.

The negotiators have missed a Monday deadline to end the talks and were likely to miss Wednesday's time limit to present a report to Zuma on agreements on the sticking points.

2010-03-31
ABUJA (Reuters) - Hundreds of people demonstrated outside the headquarters of Nigeria's electoral commission on Wednesday to demand the removal of its chairman ahead of nationwide elections due by next April.

Members of labour unions rallied to demand the removal of Independent National Election Commission (INEC) chairman Maurice Iwu, whom they deem responsible for flawed 2007 polls which brought President Umaru Yar'Adua to power.

Acting President Goodluck Jonathan, who assumed executive powers almost two months ago with Yar'Adua too sick to govern, has made overhauling the electoral system a top priority and reform legislation is before parliament.

But INEC's critics say the reforms will be toothless unless Iwu himself is replaced with someone more credible who can better organise the next polls, due by April 2011.

"Even the president said the (2007) election was flawed. Iwu is the chairman of INEC and he is responsible," Justice Obi, a 33-year-old businessman among the protesters, told Reuters.

"If he stays, rigging will be outrageous, and there is no chance of free elections next year. Forget it," he said.

Behind him demonstrators held up banners with the words "Iwu must go", "A vote stolen is a future hijacked" and "Half-baked electoral reform is poisonous". The protesters planned to march to the National Assembly as police looked on.

Jonathan has moved quickly to assert his authority since assuming presidential powers, removing close Yar'Adua allies including the national security adviser and former justice minister, and last month dissolving the entire cabinet.

Political analysts expect more public officials to be sacked once Jonathan has formed his new cabinet and local media have speculated that Iwu may be among them.

The 2007 polls were so marred by ballot-stuffing and voter intimidation that local and international observers said they were not credible.

Legal challenges to Yar'Adua's victory lasted for months after he took office, undermining his authority for much of the first half of his rule.

KHARTOUM, March 31 (XINHUA) -- Sudan People's Liberation Movement's Yasir Arman withdrew from the presidential elections in Sudan, the SPLM said on Wednesday.

"The SPLM will withdraw its candidate Arman from the presidential elections and he will enter general elections in 11 northern states but boycott them in the three states of the western Sudan region of Darfur," Riak Machar, the deputy chief of the SPLM, said during a press conference held in Khartoum on Wednesday.

Machar linked the SPLM's "ultimate stance" to the outcome of the meetings of the opposition powers calling for postponing the elections.

He, however, did not reveal the reasons behind the movement's decision but referred to "understandings" with the ruling National Congress Party (NCP).

He refused that the decision be termed as a "deal" between the two ruling partners in Sudan. The SPLM politburo had held a meeting in Juba, southern Sudan, to settle a recent row over holding or canceling the elections, slated for next April.

The movement adopts a stand supportive of Sudan's opposition powers' demands to put off the election so as to reach a political settlement for the Darfur crisis and give the election commission a chance to prepare for the voting process that would be held for the first time in 24 years.

Sudan's opposition parties are to meet on Thursday to forge a final position regarding the election. The NCP, which had rejected calls for postponing the election or linking them to a settlement for the Darfur crisis, did not comment on the SPLM's decision.

ABUJA, March 31 (Xinhua) -- The Nigerian Senate on Wednesday approved 38 ministerial nominees sent to it by Acting President Goodluck Jonathan after the government was dissolved last week.

Senate President David Mark announced the approval after the screening of ministerial nominees.

The Nigerian acting leader on March 23 sent names of ministerial nominees to the Senate for approval after he dissolved the Federal Executive Council (FEC) as part of the efforts to rejuvenate his government on March 17.

The Nigerian National Assembly on Feb. 9 empowered Vice President Jonathan to take over from ill President Umaru Yar'Adua.

The decision of the House of Representatives came after the Senate endorsed a motion to empower Jonathan as acting president in the absence of Yar 'Adua.

On Feb. 10, Jonathan ordered the replacement of the country's former Minister of Justice Michael Aondoakaa after presiding over the council meeting. Jonathan also on March 8 appointed Aliyu Gusau as a new security adviser.

The acting president later made a formal request to the Senate to appoint five new special advisers one day after he appointed a new national security adviser.

In a letter to the Senate, the acting president said the appointments were to compliment the exigencies of his new office and the jobs that it brought forward.

ANTANANARIVO, March 31 (Xinhua) -- Mauritius Prime Minister Navinchandra Ramgoolam on Wednesday dissolved parliament, saying his country would hold elections on May 5 this year, reports from Port Louis, the capital of Mauritius, said.

"This afternoon, I have informed the President of the Republic that I shall dissolve the National Assembly today. I have decided to call the country for the elections on May 5," the 62-year-old premier declared on state television and local radio.

Ramgoolam said he made the decision to end the speculations about the date of the elections as uncertainties were rising to threaten the national economy.

He had promised to make 2009 the year of the economy and 2010 the year of elections. "The hour of the democratic rendez-vous has arrived. I have arrived at the end of my mandate," he said.

KHARTOUM, March 31 (Xinhua) -- Sudanese President Omar al- Bashir on Wednesday reiterated commitment of his National Congress Party (NCP) to organization of free, credible and transparent elections on schedule amid continued demand by Sudanese opposition forces to postpone the elections.

"We have affirmed our commitment to organization of free, credible and safe elections where the Sudanese citizens select their representatives without coercion," said al-Bashir in an address in Kumuk, Blue Nile State, the official SUNA news agency reported.

"We are committed to implementation of the Comprehensive Peace Agreement (CPA) and the elections are essential part of the CPA, therefore, the person who wants to come to power must come through the voting boxes," he added.

In Khartoum, the Sudanese opposition forces continued their meetings to decide their position regarding the elections and said they would announce on Thursday whether to participate or boycott the elections.

In a statement issued on Wednesday, the opposition parties said organization of the elections at this time would not help Sudan's stability.

They renewed their demand for postponement of the elections until a peaceful settlement is reached in Darfur and a political atmosphere is provided to ensure free and transparent elections.

The opposition parties further accused the Sudanese National Elections Commission (NEC) of being biased.

Meanwhile, in Juba of south Sudan the Political Bureau of the Sudan People's Liberation Movement (SPLM) is holding an extraordinary meeting to discuss the issue of the elections amid leakages indicating that the SPLM would announce partial withdrawal from the elections, namely withdrawal from the elections in north Sudan and participation in the elections in south Sudan at all levels.

SPLM Secretary General Pagan Amum told reporters on Tuesday that the SPLM could join the opposition parties in boycotting the elections in north Sudan in protest against unfairness of the electoral procedures.

"If the opposition parties came out with a consensus position to boycott the elections in defense of free and credible elections in north Sudan, the SPLM will join them and take the same stance," he said.

The ruling NCP, however, insists not to postpone the elections for even a single day, as stated by al-Bashir on Monday. The NCP defends the elections timetable as it is stipulated in the CPA.

The Sudanese president earlier threatened that if the SPLM boycotted the elections, the NCP would reject organization of the referendum on self-determination for southern Sudan, slated for January 2011.

The SPLM, however, said the elections have nothing to do with the referendum.

The Sudanese multi-party elections, the first of its kind in more than 20 years, are scheduled be held in Sudan in April this year.

NAIROBI, March 31(Xinhua) -- Judges at the International Criminal Court at The Hague on Wednesday authorized Prosecutor Luis-Moreno Ocampo's request to investigate crimes against humanity allegedly committed in Kenya.

In the decision, two of the three judges found that upon the examination of the available information, bearing in mind the nature of the proceedings under article 15 of the Statute, the low threshold applicable at this stage, as well as the object and purpose of this decision, the information available provided a reasonable basis to believe.

"The majority moreover found that all criteria for the exercise of the Court's jurisdiction were satisfied, to the standard of proof applicable at this stage," the ICC said in the statement posted on its website.

It said the majority therefore granted the prosecutor's request, and allowed him to commence an investigation covering alleged crimes against humanity committed during the events that took place between June 1, 2005 ( that is, the date of the Statute' s entry into force for Kenya) and November 26, 2009 ( the date of the filing of the prosecutor's request).

Ocampo asked in November for clearance to investigate clashes, saying there was a "reasonable basis to believe that crimes against humanity" were committed.

In his dissenting opinion, Judge Hans-Peter Kaul held that the crimes committed in Kenya do not qualify as crimes against humanity under the jurisdictional ambit of the Statute.

In particular, Judge Kaul disagreed with the majority on the requirements of a "State or organizational policy" as set out in Article 7(2) (a) of the Statute.

Given the fact that the fundamental rationale of crimes against humanity as codified in Article 7 of the Statute was to protect the international community against the extremely grave threat emanating from such policies, Judge Kaul concluded that it had to be adopted either by a state or at the policy-making level of a state-like organization. "Upon analysis of the supporting material, Judge Kaul concluded that there was no reasonable basis to believe that the crimes committed on the territory of Kenya in relation to the post- election violence of 2007-2008 were committed in an attack against a civilian population pursuant to or in furtherance of a policy stemming from a State or an organization," the statement said.

"Hence, Judge Kaul felt unable to authorize the commencement of an investigation in the Republic of Kenya," it said.

The country's 2007 post-election violence left 1,200 people dead, caused 600,000 to flee their homes, and brought Kenya to the brink of a civil war.

The Kenyan authorities agreed in December 2008 to bring those responsible to account in national trials. In July 2009, they again agreed to do so or to refer investigation of the violence to the ICC prosecutor.

But no action has been taken. During a visit to Nairobi on November 5 last year, the ICC prosecutor said that he would seek a permission to proceed with an investigation.

In determining whether to authorize the prosecutor to investigate, the three judges of the pre-trial chamber – relied on the materials submitted in November by the ICC prosecutor – considered whether there was a "reasonable basis" to proceed.

The ICC prosecutor has resolved to address the post-election violence of early 2008 with the Kenyan leaders and to prevent recurring violence like that witnessed after the presidential elections in 2007.

The three-pronged approach which he was expected to pursue will see the ICC prosecuting those most responsible; national accountability proceedings as defined by the Kenyan Parliament, such as a Special Tribunal, for other perpetrators; and other reforms and mechanisms such as the Justice, Truth and Reconciliation Commission to shed light on the full history of past events and to suggest mechanisms to prevent such crimes in the future

NAIROBI, March 31 (Xinhua) -- The court has authorized investigations into Kenya's post-election violence, media quoted the International Criminal Court prosecutor as reporting on Wednesday.

NAIROBI, March 30 (Xinhua) --The Kenyan government vowed Tuesday it would step up its counter terrorism measures in the country.

Internal Security Permanent Secretary Francis Kimemia said the East African nation has intensified the war against terrorism in the country, stressing that no particular community was being targeted in the war against the vice. "We have intensified a crackdown on terrorism and the borders are well secured. Our officers are out there to make the country safe," Kimemia told journalists after attending a regional forum in Nairobi.

His comments came after a series of arrests of foreign nationals on suspicion of terrorism. Since last week, the security forces in the country have arrested about nine foreigners over terror links.

The Kenya Somali border is particularly porous and the existence of insurgent groups with suspected links to al Qaida, poses a potential security risk to the country.

Kimemia vowed that the countrywide crackdown against terrorism will continue, and he, however, denied there is an influx of terrorists in the country. "It is not true that there is an influx of terrorists in the country. There have been isolated cases where refugees enter the country and they are profiled like what happened in Dobley (Kenya- Somalia border) and there is no influx at all," he said.

Last week, the Kenyan police freed an Australian terrorism suspect mistakenly believing he was just an illegal immigrant. .

Spokesman Eric Kiraithe has said Hussein Hashi Farah was handed to ordinary police at Busia, at the border between Kenya and Uganda rather than specialist officers because of "an oversight".

Farah apparently then reassured police he would appear in court for an immigration hearing, and was set free. He is wanted for allegedly planning an attack in Australia in 2009.

A group of ethnic Somalis were arrested in Melbourne last year amid reports they had links to the Islamist rebel group al-Shabaab and were planning attacks in Australia.

Kimemia also appealed to the international community to assist Kenya in the prosecution of suspected Somali pirates, saying there should be a shared responsibility in trying and investigating piracy-related cases.

"The arrangement is that all countries should support each other in trying these pirates. Kenya cannot be the only nation that tries all pirates whenever you get them," he said.

Kimemia said the government is increasingly concerned at the large number of piracy-related cases being referred to Kenya.

"We share that responsibility with the international community so those ones can be tried elsewhere in other countries within or beyond the region."

He was speaking in response to last week's refusal by the police in Mombasa to accept three suspected Somali pirates and a fourth dead person that arrived at the port aboard an Italian warship.

The developments came just a month after the U.S. State Department apparently issued a fresh advisory against travel to Kenya, citing a new threat from Somalia's Al-Shabaab group which has ties with al Qaida network.

Washington said that it was aware that individuals linked to Al- Shabaab al-Islamiya were planning suicide bombing attacks on the U. S. Embassy and the Kenyatta International Conference Centre (KICC), a key building in Nairobi.

The U.S. State Department said the individuals were targeting the KICC because it was deemed the largest and oldest building associated with the Kenyan government. The U..S Embassy was targeted for its support of the Kenyan government.

Security fears in Kenya are particularly worrying following the post-election violence in 2008 that killed some 1,300 people.

Given the regional threat from Somali al Shabaab extremists seen as a proxy for al Qaida, it is even more concerning for a nation that has in the past been hit by two al Qaida-linked attacks.

TRIPOLI (Reuters) - Half of Libya's economy will shift into private hands within 10 years, a privatisation official said, creating opportunities for foreign investors to snap up assets in the oil-exporting country.

After decades of Socialist-style economic policy and international isolation, Libyan leader Muammar Gaddafi has begun tentative liberalisation of some parts of the economy and foreign investors are beginning to return.

The business environment remains unpredictable and decision making can be painfully slow but Libyan officials say that in the past 10 years they have privatised 110 state-owned companies -- a third of the total -- and they want to go further.

"We prefer that the state withdraw from all economic activities and focus on making laws and regulations," Abdelkarim Mgeg, head of the strategic projects department at the government's Privatisation and Investment Board, told Reuters in an interview.

"I expect that more than 50 percent of the economy will be in the hands of the private sector within the next 10 years," he said on the sidelines of the Libya Business and Investment Summit.

"We want to put 100 percent of the economy under the control of private investors but we are still far from that goal. The speed and time to get there depend on the appetite, capability and successes of the private sector."

Libya's privatisation policy is not driven by a need for capital -- it sits on a vast mountain of oil money. Instead, officials have said they want to attract private sector expertise to create jobs and reduce the country's dependence on oil and gas.

It remains a challenging place for investors, especially because government rules can change without warning. For several weeks, Tripoli stopped issuing visas to most European citizens over a dispute with Switzerland.

Swiss businessman Max Goeldi who ran Libyan operations for engineering firm ABB is serving a four-month prison sentence in Tripoli on charges that Switzerland says are linked to a diplomatic row over a Swiss entry ban on scores of Libyan officials, including Gaddafi and his family. Libya denies any connection.

EQUAL FOOTING

Analysts say Libya's lingering suspicion of foreign interference, ponderous bureaucracy and opaque legal system mean it will struggle to match the rapid growth in industry and services that helped Gulf states diversify away from oil.

But Libyan officials say their country has competitive advantages including security, plentiful credit, cheap energy and proximity to Europe.

Privatisation officials have said Libya had revamped its economic laws to end privileges for local investors over foreigners.

"The new legalisation puts foreigners on an equal footing with local investors," said Hashem Azwai, head of the investment department at the Privatisation and Investment Board.

There are exceptions. In the banking sector, foreign ownership is capped at 49 percent and restrictions also apply in oil and gas exploration and production.

Libyan officials said the areas they are targeting for privatisation are oil and gas refining, petrochemicals, tourism and services but they gave no new details on which companies were scheduled for privatisation.

Officials announced last year that shares of four state-owned companies would come up for sale through initial public offerings -- mobile operators Al Madar and Libyana, Iron and Steel Company, and National Commercial Bank.

"We think the prospects for Libya are significant," said Pervez Akhtar, a partner with law firm Allen & Overy.

"They are comparable to what we have seen in the GCC (Gulf Cooperation Council states) over the last decade. The rewards are there. First mover advantage ... If you delay, the competitiveness will increase, so don't delay."

NEW DELHI/MUMBAI (Reuters) - Bharti Airtel's billionaire chairman Sunil Mittal has signed on the dotted line to pay $9 billion for Kuwaiti telco Zain's mobile operations in 15 African operations.

Now he has to make the deal work.

Bharti must win regulatory clearance in key markets such as Nigeria for what is India's second biggest overseas acquisition after Tata Steel's $13 billion buy of Corus in 2007 -- and turn around the loss-making assets.

The deal, which makes Bharti the world's No.5 wireless firm by subscribers with a presence in 18 countries, brings tough financial and management challenges for a company scrambling to defend its lead in a fiercely competitive home market.

"A big challenge is streamlining operations across all these countries with limited resource availability," said Kamlesh Bhatia, principal analyst at research firm Gartner. "They also have to turn the company around in the fastest time possible."

Bharti shares rose as much as 2.7 percent on Wednesday after the company signed agreements with Zain in Amsterdam late on Tuesday. By 1015 GMT, the stock was up 0.3 percent in a slightly easier Mumbai market.

The deal brings Bharti 42 million new subscribers and a combined estimated annual revenue of $3.6 billion in a business that was loss-making for the first nine months of last year.

"The main challenge for Bharti lies in raising revenues and adding subscribers as Zain has been losing both in some of the countries," said Amit Ahire, analyst with Ambit Capital.

Bharti uses outsourcing and network-sharing to keep costs low and focuses on generating high network usage, rather than the more popular ARPU (average revenue per user) model -- squeezing more revenue out of each customer. It will look to bring its "minutes factory" model to Africa, where it is untested.

REGULATORY ISSUES, OWNERSHIP DISPUTE

Bharti already has a taste of some of the potential obstacles that lie ahead in Africa.

The government of the small central African nation of Gabon has come out against the deal, saying Zain Gabon had not complied with regulations, and it reserved the right to take "all necessary measures".

There is also a dispute about minority ownership of Zain's operations in Nigeria, the biggest market in the deal.

Econet is seeking to overturn a 2006 deal by Zain -- then called Celtel -- in which it bought a majority stake in Nigerian mobile operator Vee Networks Ltd, now Zain Nigeria.

There are seven different lawsuits being heard in various courts across countries such as Nigeria, Britain and the Netherlands on the Nigeria issue, according to a BNP Paribas report.

"Gabon is a very small market and in most cases regulators can always be dealt with. But Nigeria is a bigger stumbling block because it's a key market and shareholders are always trickier to deal with," said Gartner's Bhatia.

Mittal, who is a step nearer his goal of making Bharti a global operator, particularly in emerging economies -- he twice failed recently to buy South Africa's MTN -- has said Bharti will work with regulators and expected "tremendous support" in countries including Gabon.

Bharti would also talk to minority shareholders in Zain Nigeria, he said.

STRETCH ON FINANCIALS

Many telecoms industry experts reckon Bharti is paying over the odds with its $9 billion in cash. After assuming $1.7 billion of debt on Zain's books, the deal is valued at around 10 times EBITDA, more than Bharti's own valuations.

Bharti has secured debt of up to $8.5 billion from a clutch of lenders to fund the deal, and may have to spend more to expand networks that analysts say have been under-invested for years. The success of Bharti's "minutes factory" model will depend on deepening networks and upgrading technology -- all at a price.

After the deal, Bharti's gearing is seen rising to more than 2 times EBITDA, from 0.4 times now.

On top of that, Bharti must spend to compete in next week's third-generation (3G) spectrum auction in India, which analysts estimate could cost up to $2 billion.

Building 3G networks across sprawling India will cost billions of dollars more.