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Rescue Efforts Still Ongoing After Earthquake in Japan; 41 People Confirmed Dead from 7.8 Magnitude Quake In Ecuador; Saudi Arabia's Foreign Minister Warns Of Economic Retaliation If U.S. Passes 9/11 Bill; Group Of Former Guantanamo Bay Detainees Arrives In Saudi Arabia; Marketplace Africa. Aired 2-2:30a ET

Aired April 17, 2016 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[02:00:00] PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: I'm Paula Hancocks in Seoul and this is CNN.

UNINDENTIFIED MALE: And this is CNN breaking news.

NATALIE ALLEN, CNN ANCHOR: Hello, I'm Natalie Allen. We're live in Atlanta and following two powerful earthquakes on opposite sides of the Pacific. Rescue efforts are still ongoing in Japan, but we start with Ecuador where a magnitude 7.8 quake has dropped the coast. Forty-one people are confirmed dead so far, but that number may very well rise. People were evacuated from their homes along the coast, but they are returning with a threat of tsunami now gone. But look at the pictures we're getting in. The quakes epicenter about 170 kilometers from the capital Quito and some 36 aftershocks had hit since the initial quake.

Ecuador's quake was centered on its northern coast, but it was felt hundreds of kilometers away. Our meteorologist Derek Van Dam has the latest reports from the weather center. Derek.

DEREK VAN DAM, CNN METEOROLOGIST: You know, Natalie, this part of the world has produced some of the largest earthquakes on record. In facts, one of the largest earthquakes ever recorded to 9.6 that was in Southern Chile back in 1960. Of course, Chile is just to the south of Ecuador, but this area is right on the edge of tectonic plates and there's a lot of shifting, thrusting mechanisms that take place and that really jolts around the continental plates allowing for this build up of energy which is expelled in the form of an earthquake just like we've seen here in Ecuador.

So, what you're looking at right now is the U.S. Geological Survey map with Google Earth. We'll zoom into Ecuador and I talked a little bit about this region. First and foremost, Esmeraldas, this is an area just downside of Quito, the capital of Ecuador. That is an area where we're having reports of damage at the moment. What you're looking at here are the orange dots are the latest aftershocks within the past few hours in fact since this earthquake originally took place.

In fact, there have been about 7, magnitude 7.0 earthquakes since the year 1900 in this area. So, that gives you an idea of the frequency and the severity of the earthquakes that occur in this part of the world. Let's zoom in a little bit closer to the epicenter, the 7.8 that occurred earlier today and put on shake map data. That gives you an indication of the population and the amount of people that actually felt the most severe shaking.

What you're looking at here right there on the epicenter in that shading of orange would be moderate to severe shaking that was roughly 2 million to 3 million people that felt that severe shaking. Let me get to a few more details, magnitude of 7.8 with a depth of 19.2 kilometers right where that's earthquake occurred again local time just before 7:00 p.m.

Here's to look at the population densities that felt the most severe shaking, again, very strong to strong shaking across this part of the world. This is known as a shallow thrust faults and that happens between two plate boundaries, tectonic plates, so one overlapping the other causing that build-up of energy.

We would expect to see more aftershocks as what we've experienced in Japan in that 24 hours ago. This is just to look at how many aftershock we would anticipate with an original magnitude 7.8 earthquake.

Now, going forward, the search and recovery efforts for these area currently cloudy conditions in the Esmeraldas regions just outside of Quito, we anticipate rain in this forecast which could happen the forecast going forward or at least the search and recovery efforts. So, we are going to be monitoring this part of the world very closely Natalie to say at least. On top of that, we have Japan still in our radar.

ALLEN: Right. We're going to talk about that, but no concerns for tsunami, Derek?

VAN DAM: Tsunami's threat has passed.

ALLEN: All right. Thank you, Derek.

VAN DAM: All right.

ALLEN: We turn now to Japan. Rescue crews are desperately trying to reach people, feared traps still in the rubble after magnitude 7.0 earthquake hit Kyushu island early Saturday. This is the aftermath.

The death toll now ascends at 32. The nation was already scrambling to recover from the tremor that killed 9 people just two days earlier when this happened here. More than 1000 people have been injured from both quakes.

Japan's Prime Minister Shinzo Abe calling the search for survivors are raised now against the clock as heavy rain has hampered rescue efforts. The government has now deployed 25,000 troops to join the search for those missing.

Our Matt Rivers is in Kumamoto, the site of the deadly earthquake. He joins us now. The sun is out, Matt, but I know that you slept at a shelter and experienced a little bit of what these people are now going through.

MATT RIVERS, CNN INTERNATIONAL CORRESPONDENT: Oh that's absolutely right.

[02:05:05] And the fact is that, you know, we went to sleep at the shelter and at some point, we will leave and go back to our homes which are fully intact. But as you can see in behind me, the devastation here in this particular hard hit section of the prefecture of Kumamoto is where we spent our entire day today. And you can see just the level of devastation is really quite something.

As you mentioned, Natalie, though there was a lot of heavy rain yesterday that really had a difficult impact on the search and rescue efforts. But what that also did was prevent people from coming back to their homes to see the damage. When the sun came up today, people were able to come home for the first time. We met one woman as she did just that.

Her 80-year old father survived when this building collapsed on top of him and that's the only piece of good news Kiyomi Matsouka has got.

KIYOMI MATSOUKA, RESIDENT: (Foreign Language)

RIVERS: It's just so surreal she says. I'm still in shock. Kiyomi's family ran a saloon in this building for 40 years. They lived together in the back, but two earthquakes, the first on Thursday then again on Saturday shredded her home.

MATSOUKA: (Foreign Language)

RIVERS: It's devastating she says, utterly devastating. Kiyomi is like tens of thousands of others in Southwest Japan still reeling from the unexpected disasters. Dozens were killed, hundreds injured and some are still missing, buried under twisted metal and wood.

We once as a rescue team went property by property looking for anyone still alive. It's grim work, few has been found so far, but that's partly because precautions were taken.

This picture is from Friday and this is what that same home looks like right now. Oddly enough, many people we've spoken to in this neighborhood tell us they're actually happy that two earthquakes occurred. After the first one hit, tens of thousands of people were forced to evacuate from neighborhoods like this one. So when the second one hit on Saturday, some 15 times stronger than the first one, there were less people around. That might have saved lives.

Most of those evacuees ended up at shelters like this one. Parents, kids, grandparents, dogs, some don't have homes to return to. The ones that do are simply too afraid to go back for fear of more after shocks.

UNIDENTIFIED MALE: (Foreign Language). RIVERS: Everything was shaking so badly during the earthquake. He said I thought it was the end of my life. Count Kiyomi Matsouka among those with nowhere to go. She's staying in her car for now, but was so stoic and calm when she talked to us. She only choked up when we asked her what comes next.

MATSOUKA: (Foreign Language).

RIVERS: I wanted this business to stay in my family for generation she says. I'm not sure that can happen now. The earthquakes were over in a few moments, but their effect will be felt far longer than that.

And as this coming home to devastation like this isn't bad enough. Residents here have been having to deal with aftershocks all day long and we've felt probably a half dozen or so some are stronger than others, but, Natalie, no doubt that those aftershocks are having a negative impact on the psyche of people just trying to figure out how to move forward.

ALLEN: I can't imagine. The structures that have collapsed and we know that the bridges out and roads that have collapsed, it is surreal. Matt Rivers reports, thank you very much.

We turn to other news that we're following. Pope Francis has getting some refugees more than a message of hope, he gave 12 of them a new home. The Pope brought three Syrian families back to Rome with him from Greece.

They have been living at a migrant camp in Lesbos which Pope Francis visited on Saturday. He spoke with hundreds of migrants there, telling them they're not alone. And later, he told journalists of all nations share the responsibility to welcome refugees.

A group of former Guantanamo Bay detainees has arrived in Saudi Arabia. The U.S. said Saturday, nine Yemenis would be transferred to the Kingdom ahead of U.S. President Obama's visit there next week. We're seeing pictures, video of them now as they arrived back in Saudi Arabia.

Eighty men remain at Guantanamo after this latest transfer which Yemen's Human Rights Ministers spoke about earlier.

(BEGIN AUDIO CLIP)

EZZEDINE AL ASBAHI, YEMENI MINISTER, HUMAN RIGHTS: There was an agreement in place for a while to try and keep a track of the release and follow-up of the detainees at Guantanamo. Regretfully, there was a large number of Yemenis who are in this prison for many years. We are now witnessing in the final moments before this prisoner is close and return of these prisoners' home.

(END AUDIO CLIP)

ALLEN: Saudi Arabia's Foreign Minister is warning of economic retaliation threatening the sale of billions in American assets if the U.S. passes a bill related to the September 11th terror attack.

[02:10:03] The bill would allow victims of 9/11 and other terrorist attacks to sue foreign governments. A source with knowledge of the Saudi is thinking said, "A Saudi investments would be in jeopardy, if the bill passes."

The Obama administration has put heavy pressure on Congress to block the bill. Brazil's President Dilma Roseth held last minute negotiation from this law makers Saturday, the countries lower half of Congress is expected to vote on her impeachment in the coming day. Defections from Ms. Roseth coalition make it likely she will loose the vote and face trial on the senate of if whether she broke budget law.

And we turn now to the U.S Presidential race, Republican candidate Ted Cruz, celebrating a big win of the states of Wyoming. But Donald Trump is still in the lead for their party's nomination and if our Ana Cabrera report, the Republican front runner focus instead on Tuesday's more crucial, Ney Work primary.

ANA CABRERA, CNN CORRESPONDENT: The Cruz camp celebrating a big win here in Wyoming. They walked away with all the 14 delegates who were elected here at the State Convention. That essentially match their expectations. Cruz was the only candidate who had an organized campaign present in this state. They begin recruiting grassroots, volunteers and supporters as early as lamps to fall.

Trump, saying he didn't want to waste resources in the state. In fact, saying that these weekends and again criticizing the delegate election process here. This is a state that elects its delegate to the National Convention through state conventions and country convention. Instead of being open primary and I talked to one Trump supporter here who said, "Have it done the other way around and there had been a primary here while the results may have told the much different story."

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: So if people could go the pools and actually vote for their man. I'd -- I never like the idea, one person deciding, you know, 1500 peoples vote, I just-- I -- it just never rubs me right. It just always bother me, one man, one vote.

(END AUDIO CLIP)

CABRERA: Ted Cruz, speaking out more momentum after this weekend coming out of Wyoming although Trump and Kasich who are in New York campaigning this weekend. And expect to turn the tide from Tuesday. Ana Cabrera, CNN, Casper, Wyoming.

ALLEN: That's the latest news, your watching CNN. MARKETPLACE AFRICA is next. See you soon.

(COMMERCIAL BREAK)

[02:15:14] ELENI GIOKOS, CNNMONEY AFRICA CORRESPONDENT: Welcome to Market Place Africa, where we focus on the biggest economic trends in passing the continents. I'm Eleni Giokos, here in Johannesburg in 0:00:23 Asia. Now, this week we'll be talking about doing business in a country that I recently visited, Zimbabwe.

Now this Southern African nation is still recovering from a devastating recession and some economic indicates because there's so not looking very good. So let's draw into some of those numbers. Now, merchandized export would down 12 percent in 2015 from the previous year. Meanwhile, foreign investment tumbles 68 percent since reaching $400 million in 2013. Now, between 2011 and 2014, 4600 businesses shut down and that it create a 55,000 job loses. Now, despite this very negative numbers, I found that some investors are still seeing potential for profit.

GIOKOS: These are the streets of Harare, from the informal--.

UNIDENTIFIED FEMALE: I've been with Muhadee (ph).

UNIDENTIFIED MALE: (Foreign Language)

UNIDENTIFIED FEMALE: (Foreign Language)

UNIDENTIFIED MALE: Where's the belt?

GIOKOS: -- to the formal.

UNIDENTIFIED MALE: Yeah, let's get moving.

GIOKOS: After years of economic pain, hyper inflation and ongoing sanction, Zimbabwe is seemingly backed in business.

UNIDNETIFIED MALE: Over the past 15 or through years, we have seen stagnation of investment into Zimbabwe. But to oblate, things have moved on.

GIOKOS: Shingi Munyeza, the chairman of Vinal Investment is bringing baked sailed African food retailers to Zimbabwe.

SHINGI MUNYEZA, CHAIRMAN OF VIMAL INVESTMENT: And I'm going to be in ocean basket simply Asia named them and that has been my claims to fame in time of bringing this brand, yeah because the Zimbabwe in markets is very much leads to the start the market.

GIOKOS: This well known South African brand which competes against each other in their home markets had landed in Zimbabwe under the care of one franchisee.

MUNYEZA: Yes, Flow is looking goods.

GIOKOS: In 18 months, Shingi has opened nine restaurants across Zimbabwe and has plans to open another three this year.

How are your margins? How are your much -- how much worth that you see?

MUNYEZA: Last year was the bigger growth with over 15 to 16 percent. Now this year, we've seen about a 5 percent growth. We are growing back the doorman market that was there, so. People will not used to dining out because their options were not there.

GIOKOS: Well some might have more cash at hand to spend on luxuries at these restaurants. Over 4 million people are facing hunger. A devastating drought has caused to these food shortages in an already squeezed markets. And despite to PDP growth of 2.8 percent expected in 2016, the country is played by 85 percent unemployment.

MUNYEZA: There is a struggle on the go absolutely everywhere. And the trade figures gives many as whole story. We're producing about $3 billion worth of goods for sail export and we're importing about $6 billion worth of goods.

GIOKOS: In 2001, the government took control of white owned farms and redistributed the land to black Zimbabweans. This hurt Zimbabwe's strong agriculture sector, once known as the great basket of Africa, 15 years on the country is still imports food to cover demand.

MUNYEZA: Hi, how are you doing?

UNIDENTIFIED MALE: Oh, I'm good?

MUNYEZA: Yeah, I'm good.

GIOKOS: And for business owners like Shingi, sourcing goods from neighboring South Africa is vital and expenses of coffee in Zimbabwe caused three times more than in the same store in South Africa.

We're seeing in it dollars here, and I was looking at your menu and I'm comparing sizes.

MUNYEZA: You can't do that.

UNIDENTIFIED FEMALE: And I'm like Oh my goodness.

MUNYEZA: You can do the -- you can do the exchange rate thing.

UNIDENTIFIED FEMALE: Depending if you got high margin than what those South African guys have?

MUNYEZA: They're not necessarily. It is all because of your baseline cost with a college utility cost, we're still in the U.S. dollars. And in some cases, there is a lot of imports that we are brining in. So the transport cause, the duty cause is higher. So we or even if it cost run for rent just to transport in the duty. We already won't cost need than South Africa.

Good afternoon ladies.

GIOKOS: Now, Shingi has other things to worry about is banking on the rise of the middle class.

MUNYEZA: I think I'm a little ahead of the turn in the middle class. But I think, it will done naturally.

UNINDENTIFIED MALE: When applicants are ...

GIOKOS: And he's not growing assets alone.

MUNYEZA: We are backed by South African link banks as well. In short, there is growth, it is paying yourself back.

GIOKOS: Also top of the investors mind is Zimbabwe's 92 year old President Robert Mugabe.

ROBERT MUGABE, PRESIDENT OF ZIMBABWE: Ladies and gentlemen, boys and girls I welcome you.

GIOKOS: Thus, they empowers for almost four decades.

Some are wondering what Zimbabwe will look like after the thing here.

[02:20:09] MUNYEZA: The regulations are not as easy as some other countries and obviously people are wanting to see where we're going with and where we're going with the economics before the big investment comes. Now I tell people that they can do business, there's nothing stopping them from doing business, but they need to have lot of patients and a thick skin.

Right chiefs, how we're doing here.

GIOKOS: Next that up was a local investor and doing business in Zimbabwe is well doable.

MUNYEZA: You get to get the right partners here. We understand what is really going on, on the ground. And that's why capitol is missing it. So what it is doing is it OK, fine, but Terence (ph) what they're not doing is to find to out who are they going to partner with.

GIOKOS: And despite the obvious ills facing this economy, Zimbabwe opens Greenfield opportunity for those willing to take on the risk.

UNINDENTIFIED MALE: Oh, oh wow.

GIOKOS: Well for business and security succeed, entrepreneurs like Shingi Munyeza rely quite heavily on banks to back investment like this. We're going to have short break and when we return, we'll be taking to the CEO of the Mara great Ashish Thakkar about the banks that he could found it and also how to make capital more visible across Africa. Don't you go anywhere?

(COMMERCIAL BREAK)

Welcome back to market place Africa. Ashish Thakkar began his entrepreneurial career at the tend of age of 15 by selling computer pots in Uganda. He then turned that business into the Mara group. It's the company deals in technology, banking as well as real estate. Now in 2013, he teamed up with banking ties and Bob Diamond to create Atlas Mara. The financial services group has already acquired $2.5 billion with the banking assets across seven countries in Africa. I talked up with Thakkar to find out how this partnership with Bob Diamond began.

ASHISH THAKKAR, ATLAS MARA FOUNDER: Actually, Bob and I met during the world economic forum on Africa in Kempton in 2013. And we met through our respective foundations. The Mara foundation, that Diamond Family foundation and both are passionate about Africa. Both are doing lots in Africa. And very quickly realize that, you know, Bob's fairly understanding of banking and financial services and passion for Africa, Mara's deep understanding of how to execute on the ground and operate business, and grow businesses and passion for Africa is a perfect blend because that how it all began and it's been amazing at sense.

GIOKOS: That's how then you'll put a conversation and then manifest within the bank.

THAKKAR: That's right. And, you know, and of the amazing thing is that we met through our foundations, enhance, we former starts. So it's like that whatever we make as individuals, we will be contributing a portion of that to our respective foundations. But what's going to be even more impactful than that is actually creating a real thing for business. Being only receiving site of financial services for so many years, I saw that banks from not lending to as a means. And it was a big challenge. The typical banking model was taking customer's deposits. Putting them to government treasury, making a thousand 200 based of clean branch. Why lend as a miss? And we feel, we can be a real positive destructive force inline with public policy to really become the bank for business.

GIOKOS: One of the biggest issues in Africa is of course the barring cost. Extremely high when you look at it relatively even civilized in South Africa or even underdeveloped or even emerging economies, how you bringing down barring cost, when interest rate are so high across liturgies (ph)?

THAKKAR: So I think when you start introducing technologies on this in an innovative way, not just for transferring money as mobile money has been, but really kind of transforming it to mobile banking. The level of deposits you take in. The kind of interest rates you can offer.

[02:25:10] I think all of these stuff making a difference. But the minute, you start really creating that ecosystem within your organization to be your real bank for business, your spreads can become a lot lower when lending test in. And I think that is a crucial which is not being done right now. And that's what Atlas Mara hopes to address.

GIOKOS: And Atlas Mara seems to be on the acquisition part, in Rwanda, looking at banks in Zambia, the lakes of Nigeria as well. You've got assets with around of $10.5 billion at the moments. How big is this bank going to gets?

THAKKAR: That's correct. I mean I think, look Eleni, it's just been two years. We have done quite a number of acquisitions and we're in seven countries now. In a place like Rwanda which we -- and recently close, we are now the second largest bank in terms of assets and the largest bank in the country in terms branch network. Zambia has a similar situation where we've announce the second transaction in Zambia where I went to Chris (ph) because I'm closing it. And that will make us a fourth largest bank in terms of assets but the largest bank in the country in terms of branch network again.

So, you know, we've always set that we're do not afflict plunding exercise. We want to play a meaningful role in the economies that were present and enhance. We want to be in the top five in most countries. And we're on the top but, you know, it has been an amazing two years. I mean we built a really, really amazing management team. We've got a great asset base. We're already tuning the operations. And ...

GIOKOS: And that means you've got to put in the wood, you got to turn around some of these assets?

THAKKAR: Absolutely, I think, you know, to took on the courage where the acquisition will continue all this to take us to a meaningful position in countries. We'll be doing and have that lead where organic growth won't get us so very quickly. And at the same time, it's turning around the countries that we do have in playing that real impactful role of, you know, making the difference to these banks and our banks and the countries that we operate in.

GIOKOS: Well, that everything we filled, yes. And now, the deal of emerging with investments in Delta Africa to create Mara Delta property holding, then he said that he is very confidence that this company will become the biggest real estate holdings firm in Sub- Saharan Africa. Very big ambition, so we'll have to keep a very close watch on that.

Well that's it for this tradition of market place, Africa. So once again, go check out our website as well as our Facebook page, we have lots to hear from you. Thanks so much for watching. Well, I'm Eleni Giokos in Johannesburg. I'll see you next time in the market place.

(COMMERCIAL BREAK)

LYNDA KINKADE, CNN CORRESPONDENT: I am Lynda Kinkade in Atlanta and this is CNN.

ALLEN: I'm Natalie Allen at the CNN Center in Atlanta.