Contents

AFRICA IN THE NEWS 5 Agencies want Gulf War com pensation fo r Africa

5 C ape Verde's free ly e lected President 6 Z im babwe raises in te rest rates 6 Afbiz Quiz

7 S ie rra Leone seizes French fish ing vessel 7 Cote d ’ Ivoire overhauls coffee and cocoa marketing

7 Psst 8 Agenda 9 South A frica Watchdog

FEATURES 10 Diamond outlook brightens 10 G u in ea succeeds outside De Beers net

10 Zairean d iam onds 13 Botswana will polish d iam onds - but whose?

14 D iam ond prospects fo r Sierra Leone 14 Namibian beaches yield new d iam ond finds

COUNTRY BRIEFINGS 16 Kenya: EPZs d raw lukewarm in vestor response

19 Zambia: IMF fo resees new reform stage 20 Lesotho: Preparing fo r post-sanctions era

20 Z im b a bw e :B re akaw a y ca r dealers 45 Angola: Econom ic stagnation persists 47 Swaziland: A budget fo r the workers

47 Swazi asbestos m ine fin a lly c lo ses 50 Burundi: Struggle fo r econom ic stability

51 Uganda: Revival fo r tobacco sector

54 Mozambique: House rents soar

54 In brief: Benin cushions reform s; UK fam ine a id to Sudan & Mozambique; M adagascar la bour-intensive scheme; Som a lia peace appeal; Oxfam backs Ethiopia; ECGD credit fo r Z im babwe

NIGERIA SURVEY

23 Economic Overview: New free -enterprise sp ir it bodes well

25 Nigeria Econom ic Indicators 27 Manufacturing: Capacity use inches upwards

30 Debt: P lanners seek right balance 35 Banking: Everybody's getting in on the act 37 Agriculture: Farmers carry nation ’s export hopes 39 Hydrocarbons: In oil guessing game, stakes are high 39 Environm ent: Conservation issues ta ke h igher profile

42 Investm ent: O ld carrots and new

SECTOR BY SECTOR 55 Agriculture: Cape Verde maxim ises land use

55 Danish opt fo r Namibian fishing 56 Banking & Finance: Central-bank governors ponder crisis

56 In brief: Gabon c red it fo r SMEs; Z im babwe SMEs too

57 Energy & Mining: Nam ib ia ’s seabed potential

57 Guinea gold venture seeks th ird partner 58 Environm ent: Kenya, Z im babwe lock horns over w ild life d ilem ma

59 Manufacturing & Technology: Togolese textile firm aims high

59 Swedish train Angolan mechanics

60 Market Network: ACBI seeks to build Africa's own expertise 61 Transport & Communications: European sh ip owners upgrade 61 In brief: S eyche lle s -S o u th Africa a ir link on hold; N am ib ia -P a r is air link; Zam b ia ’s US flig h t ends

BOOKS

62 Travelling rough through African guidebooks

D iamonds, that most upmarket of export commodities, are sparkling all over Africa. AB s team of contributors have filed five reports for our three-page diamond feature this month. Page 10

Z ambia faces some crucial decisions, both economically and politically. Now that Frederick Chiluba has won the right to stand against President Kaunda in the October elections, what lies in store for the Zambian people? SYLVESTER CHIPOSA reports from Lusaka. Page 19

T hings are also changing in Africa's most populous country, as we present our annual NIGERIA SURVEY, this year in a handy pullout format. Our Lagos correspondents, PINI JASON and JATO THOMPSON, provide insights into their country. Page 21____________

African Business April 1991 3