Nestle to grow in Africa

Nestle, the world's biggest food group, will invest $943-million in Africa in the next three years to increase its revenue from emerging markets.

The group expects emerging markets to account for 45% of its sales in 10 years, up from about one-third now, on growth that is twice that of mature markets.

"Africa entails some risk because there is tension," chief executive Paul Bulcke said on Friday. "But I see crystallisation of some stability that, in my eyes, allows us to do the investments that we do."

Africa contributes 3% of Nestlé's annual revenue, and Bulcke said this could keep rising. "Is that going to be a straight line? No. You are going to have countries on this continent that are always accelerating, then pause for a year.

"But I see good growth potential, one billion consumers," he said, referring to Africa's population.

Planned investments include factories in the Democratic Republic of Congo, Angola and Mozambique. The Kenyan production operation would be upgraded, Bulcke added. - Reuters

Australia cans 'super-tax'

Australia dumped its plans for a tax on windfall profits on Friday after an intense campaign against it by mining companies, and wrung out an agreement for a new tax formula that still increases rates.

Australia slashed the headline tax rate in the new scheme to 30% from 40% under the original plan. Major mining groups such as BHP Billiton and Rio Tinto, which had criticised the government for not holding talks, said the "super-tax" had posed a threat to more than $20-billion in mining investment.

Australia's new prime minister, Julia Gillard, noted that since the beginning of the mining boom, iron-ore prices had soared by more than 400% and coal prices by more than 200%. - Reuters

Gulf relief well on track

The first of two relief wells, seen as the most promising way to plug the oil leak in the Gulf of Mexico, is close to its target - but drilling will be slow and precise in coming weeks, the US official overseeing the spill response said on Friday.

"I'm reluctant to tell you it will happen before the middle of August," said Thad Allen, a retired US Coast Guard admiral.

The well, for which drilling began on May 2, is ahead of schedule, Allen and energy giant BP said. Both have consistently said that well and a second on which drilling began on May 16 would be finished in August.

BP said the first relief well was less than six metres from the side of its blown-out Macondo well, which has been spewing oil from the sea bed, 1.6km below the surface of the Gulf since April 20.

The relief well has been bored 3.8km beneath the sea bed, Allen and BP said. BP's plan calls for the relief well to drill further down, parallel to the blown-out well, and intercept it at the bottom. - Reuters