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Liquidated Air Namibia Ordered To Return Planes Worth US$167 million

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A European company has instructed Air Namibia to return two of its biggest aeroplanes this week after the government’s decision to shut the airline down.

Air Namibia’s current fleet includes the two leased Airbus A330-200 aircraft, two Airbus A319-100 planes and four Embraer ERJ 135s.

The 244-seater A330-200 is the biggest aircraft in the airline’s ranks and was often used for the Windhoek-Frankfurt route.

Air Namibia’s lease agreement on the Airbus plane stretched from May 2012 to October 2025, but the government’s decision to shut the national airline down means this agreement would have to be cancelled – at a cost of around N$2,4 billion (U$167,893,050).

A company called Air Lease 80 (Ireland) wrote to Air Namibia last Friday explaining they would trigger a clause in the contract that allows them to have the two Airbus aircraft returned.

The European company’s director, Patrick Waldron, wrote to Air Namibia’s acting chief executive officer, Theo Mberirua, saying the national airline has defaulted.

“We expressly reserve our rights to retake possession of the aircraft,” Waldron said. Sigfus Olafsson, marketing vice president of Castlelake aircraft, sent an email to Air Namibia last week, asking for “your kind assistance to arrange for the ferry flight of the two A300-200 aircraft to a storage location as early as next week”.

He said Castlelake’s technical boss, Andrew Titus-Glover, would reach out to the airline to coordinate the storage of the planes.

Titus-Glover then emailed Air Namibia’s maintenance manager, Stanley Kariko, outlining the preparation of the aircraft’s return to Europe.

“We would appreciate it if you could start preparation to reposition both A330 aircraft into Europe for storage as quickly as possible,” he said.

Titus-Glover proposed that the aeroplanes be returned this week. The storage locations, he said, are Malta, Leipzig or Nimes. Mberirua yesterday confirmed that the creditors have started gunning for what is owed to them.

“Of course, any creditor would go for what is theirs … These are default measures in place in case something goes wrong,” he said.

According to information seen by The Namibian, a significant portion of the government subsidy to Air Namibia is paid towards the A330-200 operation.

 Around N$500 million was paid per year to cover aircraft leases, and maintenance would cost N$ 414 million.

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Business

Rwanda’s Weekly Agro Exports Performance

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Last week Rwanda shipped out various tonnes of horticultural products coffee and tea fetching an impressive amount of foreign revenue.

According to National Agricultural Export Development Board (NAEB) mandated to develop and enhance Rwanda’s agricultural exports, Last week Rwanda exported 255,298Kg of horticultural products which earned U$441,679.

Details show the Main Countries of destination of Rwanda’s horticultural products were mainly Holland, United Kingdom, DRC, Germany, among others including USA, UAE, France, Uganda, Belgium, Tanzania and Denmark.

A total of 431,107Kg of Rwanda Coffee worth U$1,383,622 was exported compared to previous week, export quantities and revenues increased by 86.2% and 83.9% respectively. 52.2% of the consignment was fully washed. Destinations: China, UK, Belgium, Russia, Kenya, South Sudan & Nigeria.

Meanwhile, 449,000Kg of Rwanda Tea  were exported generating U$1,146,118. Compared to last week, the average price slightly reduced from U$2.78/Kg to U$2.5/Kg. Main country buyers were Pakistan, and UK among others.

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Tanzania Unveils Aggressive Plan For Livestock

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Tanzania has announced that it is seeking to revamp its livestock subsector with the aim of making it more profitable.

Dr. Jonas Kizima the Acting Director-General of Tanzania Livestock Research Institute (Taliri) said on Tuesday that Preliminary studies have discovered that most industries in the livestock products category are performing shoddily due to poor production and supply of raw materials.

The Tanzanian government said it is embarking on implementing a special five-year programme (2021-2025) to push for improvement of the livestock industry.

“The programme seeks to enable stakeholders in the beef and dairy cattle chains in all regions of to improve their performance by adopting better technologies and practices so that they can stand a professional chance to meet actual raw material demand in the livestock industry,” Dr. Jonas Kizima said.

Tanzania is therefore arguing that it is going to introduce and help livestock keepers across the country to raise hybrid animals, provide best animal health services, animal compounded and feeds, put in place animal husbandry infrastructure, improve milk handling, grazing systems and maintain good diary animal genetics.

“Inbreeding is the biggest technical challenge livestock keepers are facing- it is detrimental to livestock,” Dr Kizima noted.

The new agenda is in compliance with President John Magufuli’s directive issued to revive and promote animal industries for the next five years in the coastal East African country.

According to Concerns by Magufuli at least 90% of animal skins and skins produced in Tanzania were of very poor quality due to poor slaughtering methods.

Magufuli says he is seeking to motivate investors from within and outside the country to invest in meat industries, but also in leather production and other animal products such as hoofs.

Under this new program, Tanzania wants to construct seven major abattoirs in different regions with the capacity to slaughter at least 6700 cows and 11000 goats per day.

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Business

Global Oil Prices Fall Ahead of OPEC Meeting

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As the alliance of Oil producing countries under OPEC meet on Thursday, global oil prices have reportedly fallen according to sector experts.

Details indicate that the alliance is expected to loosen the taps after prices got off to their best ever start to a year.

But it’s unclear how robustly the group will act, with the Saudi Arabian energy minister calling for producers to remain “extremely cautious.”

The market continues to face risks in the near term. China’s Unipec was re-offering cargoes of April Angolan crude amid weaker sales.

Diesel demand in India was also down versus a year earlier amid record pump prices in the country. Both point to a limit on some of the recent firmness seen within the oil market.

“Now that oil’s back at $60, there’s going to be a push to wean off of those cuts,” said Stewart Glickman, energy equity analyst at CFRA Research.

“The question is how much are they going to bring back. The biggest risk is if supply presumes we’re back to pre-pandemic demand in 2021 and that turns out not to be the case.”

Still, there has been a raft of bullish calls in recent weeks predicting the rally will continue as the producer response trails consumption, while maintenance in North Sea fields is set to further reduce supply.

There are also some signs that demand is starting to pick up. U.S. gasoline demand jumped by 1 million barrels a day last week to 8.76 million barrels a day, a level comparable to March 2020 before the pandemic, according to Descartes Labs.

“People have become very optimistic about the ability of OPEC+ to manage a return to a balanced market,” said Michael Lynch, president of Strategic Energy & Economic Research.

The market continues to “see improved demand down the road and OPEC+ not oversupplying the market as they ramp up again.”

The Organization of Petroleum Exporting Countries and its allies must decide how much output gets restored — and at what pace — with current reductions amounting to just over 7 million barrels a day, or 7% of global supply.

The 23-nation coalition will choose whether to revive a 500,000-barrel tranche in April, and in addition, whether the Saudis confirm an extra 1 million barrels they’ve taken offline will return as scheduled.

Citigroup Inc. thinks the coalition will boost output by about 500,000 barrels a day next month, with Saudi Arabia unlikely to continue its voluntary curbs.

“A higher oil-price environment, an increasingly promising demand picture by summer, and the recovering but still growing U.S. oil production outlook for 2021 should give OPEC+ the confidence to slightly increase supply,” said Louise Dickson, an analyst at consultant Rystad Energy AS.

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