issue: 223 | 11 September 2017

Africa

Fairfax Africa takes 42% stake in Bob Diamond’s Africa bank
Atlas Mara Ltd, the African investment vehicle of former Barclays boss Bob Diamond, said that Fairfax Africa now holds 42% of the company after it subscribed to 70.1 million new shares. The change in ownership comes after Atlas Mara announced plans in June to raise $200 million so that it could increase its stake in Union Bank of Nigeria and scale up other businesses.

Fairfax subscribed to around 80 pct of Atlas Mara’s share issue, with existing shareholders taking the rest. Fairfax Africa is part of Canadian investment firm Fairfax Financial, led by Prem Watsa, to invest in African assets. Diamond teamed up with Africa-based entrepreneur Ashish Thakkar to set up Atlas Mara, a vehicle through which they planned to buy up assets to help build it into a powerful force in African banking.

Source: CNBC Africa

Angola

Angola LNG signs contract for supply of natural gas with Vitol
Angola LNG will supply liquefied natural gas (LNG) to Vitol under a multi-year agreement announced that stipulates that the Angolan company will place the product in destinations around the world. “This sales agreement is an important step for Angola LNG and demonstrates our ability to respond to the needs of customers and the market,” said the sales director of the Angolan consortium, Artur Pereira. Angola LNG is an integrated project for use of natural gas, with a processing unit, a maritime terminal and loading facilities, as well as the possibility of developing non-associated gas.

Source: Macau Hub

Angola/Mozambique

CHEC Group plans to support African countries in building infrastructure
The China Harbor Engineering Company (CHEC) is committed to putting more financial, technological and human resources into projects in which it is involved in Africa, notably in Angola and Mozambique, said the company’s chairman in statements in Windhoek, Namibia.

Lin Yichong told the Xinhua news agency that as part of Sino-African cooperation the company is involved in works such as the construction of a container terminal at landfill areas reclaimed from the sea near the port of Walvis Bay and the National Fuel Deposit Project, also in Namibia. The CHEC group is also involved in the development of the ports of Lobito, in Angola and Beira in Mozambique as well as port projects in Abidjan (Ivory Coast), Dar-es-salam (Tanzania) and Kraba (Cameroon).

Source: Macau Hub

Ghana

Azumah Resources finalises A$17 million earn-in agreement
ASX-listed Azumah Resources has executed an earn-in and shareholders agreement (EISA) with private equity group, Ibaera Capital. The agreement between Azumah Resources and Ibaera could see Ibaera earn up to a 47.5% interest for an expenditure of A$17 million in the company’s Wa gold project in Ghana, West Africa. The terms of the EISA are as contemplated by the binding Term Sheet setting out the basis for the parties to boost mineral resources, ore reserves and to deliver a study supporting a decision to proceed to production within the next two years.

Source: Mining Review Africa

Ghana

Western Rail Line rehabilitation project gets $10m boost
Government’s ongoing effort to improve the rail sector has been boosted by an agreement between mining firm, Ghana Manganese Company, and the Ghana Railway Company Limited for the repair of an important section of the dilapidated Western Rail Lines. The $10 million deal will rehabilitate the approximately 15km Kojokrom to Tarkwa section of the Western Rail Lines and represents freight advance from Ghana Manganese Company to the Ghana Railway Company.

Minister for Railway Development, Joe Ghartey, said at a short press conference to announce the agreement that the Kojokrom to Tarkwa line represents an economically viable and critical part of the 340 km Western Rail Line due to its importance to mining companies, one of which is the Ghana Manganese Company Limited.

Source: My Joy Online

Guinea-Bissau

Guinea-Bissau approves increasing stake of Australia’s FAR Ltd in two oil blocs
The Guinea-Bissau government has approved upping the shareholding of Australia’s FAR Limited in licenses to exploit the Sinapa and Esperança oil blocs, prolonging those licences until 25 November 2020, the company reported in a statement to the market. Per the granted authorisation, FAR Limited increases its stake from 15% to 21.42%, a change reflecting the fact that state-owned Petróleos de Guiné (Petroguin) has given up its shareholding until a discovery with commercial value occurs.

Source: Macau Hub

Kenya

ARM to sell Sh5 billion loss-making fertiliser unit to Swiss company
ARM has signed a deal to sell its loss-making fertiliser and minerals unit to Swiss industrial firm Omya in a transaction that may fetch the distressed company at least Sh5.4 billion. The cement maker has several subsidiaries that deal in fertiliser blending, processing of industrial minerals and chemicals, and building products such as silicate liquid.
These units, including Mavuno Fertilizer and ARM Minerals and Chemicals, had a book value of Sh5.49 billion as at December 2016 and will all be sold to Omya. Chief executive Pradeep Paunrana declined to disclose how much ARM will earn from the transaction, citing regulatory constraints.

Source: Business Daily

Kenya

IFC invests Sh619 million in mobile tech firm Africa’s Talking
The International Finance Corporation is investing up to Sh619 million ($6 million) in mobile tech firm Africa’s Talking, with the funds earmarked for the company’s expansion in Africa. In a disclosure, the IFC said it would also use its relationships and knowledge of the continent to help Africa’s Talking as it moves beyond the current seven markets where it has a presence. The company, which is headquartered in Nairobi, also operates in Uganda, Rwanda, Tanzania, Malawi, Nigeria and Ethiopia. Africa’s Talking’s other shareholders include Samuel Gikandi, Eston Kimani,  Bilha Ndirangu, and the California-based seed investor Better Ventures.

Source: Business Daily

Kenya/Uganda

World Bank private lender to fund Goodlife Pharmacy growth
The International Finance Corporation (IFC) is providing a $3 million (Sh309.8 million) loan to fund the expansion of Goodlife Pharmacy in Kenya and Uganda. In a notice, the institution says the loan was part of the funding needed for the pharmacy to grow its footprint from the current 32 to 100. IFC estimates that the total project cost will be between $15 million (Sh1.5 billion) and $20 million (Sh2 billion). IFC says Goodlife’s major shareholder, private equity firm Leapfrog, plans to bridge the rest of the funding gap through its own money and by sourcing financing from third parties.

Source: Business Daily

Lesotho

1K1V backs Lesotho Trout Farm for its third deal
One Thousand & One Voices (1K1V) announced its third deal, buying an aquaculture business located in the Kingdom of Lesotho. The private family capital fund’s new asset is SanLei, a trout producer located on the shores of the Katse Dam in the land-locked country’s highlands. Terms of the deal were not disclosed.

The company, which is the largest of its kind on the continent, produces and processes sushi-quality trout which is primarily sold in the South African and Japanese markets. The company has an exclusive strategic marketing and distribution agreement with Japan’s largest joint procurement supermarket chain, GCC Japan, allowing it to sell and market SanLei trout throughout its more than 4,000 stores under the “Shizen No Ashiato” or “Trace of Nature” brand.

Source: African Capital Digest

Liberia

Japan, UNDP to sign US$1.14 million
In advance of the 10 October 2017 general elections in Liberia, the Government of Japan and the United Nations Development Programme will sign US$1.15 million agreement. The agreement is intended to support the deployment of police and other civilian security personnel across the country during the elections. The Ambassador of Japan to Liberia Karou Yoshimura is expected to sign on behalf of his Government while UNDP c will sign on behalf of the UN agency. The agreement is part of the long-standing partnership between Japan, the Republic of Liberia and the United Nations Development Programme.

Source: The News

Mozambique

Mozambican government approves deal between ENI and ExxonMobil
The Mozambican government has approved changes to the concession contract for natural gas exploration in area 4 of the Rovuma basin to allow the conclusion of a deal between Italy’s ENI and US group ExxonMobil, the Minister of Mineral Resources said. The ExxonMobil group paid US$2.8 billion in cash to the Italian group for a 35.7% stake in ENI East Africa and, through this company, an indirect 25% stake in the Rovuma Area 4 block in northern Mozambique, according to the announcement made last March.

Source: Macau Hub

Nigeria

BEDC, Thames Delta, sign MOU on 20 MW Isoko power plant
Efforts at ensuring that over 200 commercial entities around Ozoro in Isoko Local Government areas of Delta State benefit from power supply has got a boost as Benin Electricity Distribution Plc (BEDC) signed a Memorandum of Understanding (MOU) with Thames Energy Limited and the Delta State Government on the construction of 20 megawatts, MW power plant in the area.

The MOU signing ceremony, which took place at BEDC Head Office in Benin signalled a tripartite partnership that is expected to galvanize the potentials of several commercial entities in addition to rejuvenating the economy of the territory, making it an economic hub for Delta State.

Source: Vanguard

São Tomé and Príncipe

IMF helps São Tomé and Príncipe to introduce Value Added Tax
The International Monetary Fund (IMF) has granted a loan of US$1.4 million to São Tomé and Príncipe to help improve the country’s Tax Administration, the director of that department said. Olinto Costa said it was a three-year project to introduce Value Added Tax (VAT) in 2019.

The funding will help improve the São Tomé tax administration, train staff and pay an adviser from the International Monetary Fund (IMF), who will work in the country for a few months. The government intends to introduce VAT from 1 January 2019, and the IMF has decided to “provide long-term technical assistance” to the Ministry of Finance, Commerce and the Blue Economy.

Source: Macau Hub

São Tomé and Príncipe

Kosmos Energy conducting seismic research in São Tomé and Príncipe
The American oil company Kosmos Energy has spent nearly US$36 million conducting seismic research to detect eventual petroleum deposits in four blocs of the exclusive economic zone of São Tomé and Príncipe, the company’s CEO announced in São Tomé. After announcing the conclusion of seismic research begun last February, Andy Inglis said that the process of analysing and interpreting the data collected in the four blocs should take about nine months.

Source: Macau Hub

Sierra Leone

CDC backs Solon Capital Holdings with $20 million of equity
CDC is investing $20 million in Solon Capital Holdings, an investment holding company based in Sierra Leone. The transaction is the development finance institution’s first investment in a permanent capital vehicle, a reflection of the fact that the standard ten-year private equity model does not always meet the needs of those African markets in which longer-term capital is required to build strong businesses.

CDC now owns an undisclosed equity stake in Solon Capital Holdings, which has four active investments currently operating in Sierra Leone, Liberia, Guinea and Côte d’Ivoire. These include Flash Vehicles, now one of the region’s largest vehicle renting, leasing and fleet management companies, and Rising Academies, a rapidly-expanding operator of schools.

Source: Africa Capital Digest

Uganda

EU sets Shs429b to support green economy in Uganda
To help Uganda develop enterprises that do not destroy the environment, the European Union (EU) has announced financial support of Euros 100 million (Shs429 billion) for the next three years. Speaking in Kampala during SEED East Africa symposium/award giving ceremony for innovative locally-led start up enterprises, the head of corporation at the European Union office in Uganda, Mr Cedric Merel, said: “In Uganda, an illustration of the EU’s commitment is provided by the earmarking of no less than 100 million for supporting inclusive green economy in the years to come.”

Source: Daily Monitor

Zambia

AfDB nods $1 billion for Zambia
The board of directors of the African Development Bank (AfDB) Group has approved a US$1 billion Zambia’s strategy paper with emphasis on private sector development to support Government’s industrialisation and job creation agenda. The 2017-2021 country strategy paper, which has been approved along with the 2017 country portfolio performance review, reflects Zambia’s middle income country status and its reclassification to “Blend’ in 2014 which makes it eligible for AfDB’s concessional and non-concessional resources.

In line with the reclassification, the strategy therefore seeks a broader mandate that allows operational flexibility and adjustments in Government priorities and mitigating sector risks.

Source: Zambia Daily Mail

Zambia

IDC acquires 90% stake in Zampalm
The Industrial Development Corporation (IDC) has acquired a 90% stake in Zambeef Products’ subsidiary Zampalm Limited at a cost of US$16 million. IDC, now a majority shareholder, is expected to inject funds to develop the project, which is in Mpika. Under the agreement, IDC will pay the US$16 million upon completion and a further performance amount of up to US$2 million will be paid dependent on performance milestones over the three years from 2018 to 2020. Some of the conditions to precedent to be satisfied within 180-calendar days following signing of the agreements to complete the transaction include the Competition and Consumer Protection Commission (CCPC) providing either negative clearance or its approval to the transaction.

Source: Zambia Daily Mail

Zambia

First Quantum, LS-Nikko to acquire shares in Minira Panama
First Quantum Minerals Limited (FQML) has signed an agreement with LS-Nikko Copper to acquire a 10% ownership interest and shareholder loans in Minira Panama SA (MPSA) which holds the concession for the Cobre Panama project at a cost of US$635 million. The acquisition’s headline value is US$635 million payable in six instalments over a five-year period. FQML owns Kansanshi mine and Sentinel in Zambia.

FQML intends to finance the entire first instalment from proceeds of an additional precious metals stream specifically linked to the acquired 10% interest, while maintaining optionality as to how future instalments are met. The company will acquire LS-Nikko Copper’s 50% interest in Korea Panama Mining Corporation, a 50-50 joint venture company with Korea Resources Corporation (KORES), which holds a 20% interest in MPSA.

Source: Zambia Daily Mail


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