issue: 251 | 16 April 2018

Africa

AfDB to invest USD12-billion on renewable energy in Africa

The African Development Bank (AfDB), in a bid to improve renewable energy development, will spend USD12-billion in Burkina Faso, Djibouti, Eritrea, Ethiopia, Mali, Mauritania, Niger, Nigeria, Senegal, Sudan and Chad. The objective is to provide power for household use, Small and Medium size Enterprises, pumping water for livestock farming, irrigation, agricultural production zones and mitigating the effects of climate change by developing solar energy in desert parts of Africa. Universal access to power demands huge means. As a result AfDB is investing so much effort in the programme. The bank is soliciting the support of other financial institutions to boost financing for the programme. Dubbed ‘Transform the desert into energy,’ the programme is also financed by the French Development Agency, along the Sahel Green Wall.

Source: Asoko Insight

Angola

Angola’s Sonangol partners US company to provide services to the oil industry

Tidewater Marine, a United States company that owns and operates one of the largest fleets supporting the oil industry, has partnered with Sociedade Nacional de Combustíveis de Angola (Sonangol) to set up an Angolan company under an investment project recently approved by the Angolan government. The investment project provides for the creation of Sonatide Marine Angola, a limited liability company under Angolan law, to provide maritime services, including cabotage and ship management, to support companies in the oil and gas industry with drilling operations, research and production in Angola. Sonatide Marine Angola, which represents an investment of USD1.3-million, will be 49% owned by Tidewater Marine and the remaining 51% by Sonangol Holdings.

Source: Macau Hub

Angola/Guinea-Bissau

Angola remains interested in Guinea-Bissau bauxite

Angola will resume its agricultural and bauxite exploration projects in Guinea-Bissau, Angola’s second deputy speaker, Higino Carneiro, said in Bissau, quoted by the Angolan press. Carneiro, speaking at the end of an audience with the Guinean head of state José Mário Vaz, expressed Angola’s interest in “continuing to develop the projects,” which began in 2007 with signing a bilateral cooperation agreement. At that time, Angola took two companies to Guinea-Bissau to conduct mining exploration and agricultural and industrial activities. Cooperation between Angola and Guinea-Bissau was suspended in April 2012, following a military coup in Bissau that led to the forced exit of an Angolan army contingent stationed in the country.

Source: Macau Hub

Cape Verde

German company introduces wave energy to Cabo Verde

German company SINN Power plans to start a commercial project to capture sea wave energy to supply aquaculture company Fazenda do Camarão on the island of São Vicente in Cabo Verde (Cape Verde), the company said in a statement. The company also said that under the contract signed with the aquaculture company it plans to carry out an economic feasibility study of the project which, when it is in operation, “will allow the Cape Verdean company to obtain the electricity it needs, exclusively from renewable sources.” The first phase, according to the statement, is to collect data over several months on the sea ripple in that region of the island of São Vicente, and later to present a proposal to the Fazenda do Camarão based on its needs.

Source: Macau Hub

Equatorial Guinea/Togo

Equatorial Guinea to commence LNG trade with Togo

Equatorial Guinea’s Minister of Mines, and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima and Togo’s Minister of Mines and Energy, H.E. Marc Dèdèriwè Abli-Bidamon, have signed a Memorandum of Understanding (MoU) to facilitate the trade in liquefied natural gas (LNG) between the two countries. The MoU creates a framework for Togo to import LNG produced in Equatorial Guinea. The agreement is part of the LNG2Africa initiative, in which Equatorial Guinea is promoting the utilisation of LNG within Africa, using gas sourced and processed in Africa. Togo will study the import, regasification of LNG, and its use for power generation.

Source: ESI Africa

Ghana

Ghana sets aside USD230-million to promote renewable energy

The Ghanaian government has set aside USD230-million to promote the use of renewable energy in Ghana, particularly in off-grid communities across the country. According to the Deputy Director of Renewable Electricity at the Ministry of Energy, Seth Mahu, the funds will be available to the private sector to deploy over 35,000 systems in off-grid communities. Furthermore, Staniel Abotsi, the Project Officer for United States African Development Foundation Power Africa, explained that the initiative, off-grid challenge, was launched in 2014. Its aim was to promote innovative and sustainable ways to deliver reliable energy to under-served communities in Ghana. Seven solar companies in the country won the challenge. They were given with grants of up to USD100,000 each to provide off-grid solutions.

Source: Asoko Insight

Ghana

Ghana to sell stakes in thermal-power plants to cut debt

Ghana will sell stakes in three thermal power plants as it seeks to cut state-owned companies’ debt and boost electricity production following years of outages that hurt investor confidence. The West African nation has identified the fossil fuel-burning plants capable of producing a combined 501MW, or about a third of its total thermal power-generating capacity, that it will at least partly privatise, James Demitrus, head of revenue monitoring at the Energy Ministry, said in an interview in the capital, Accra. While thermal power plants can burn oil or gas to generate electricity, the country can also produce 1,180MW from hydro-power. Investors would be expected to fund upgrades to boost the facilities’ output by a third, according to Demitrus.

Source: Bloomberg

Ghana

Siemens invests in Ghana’s energy and engineering

Ghana’s steady socio-economic development over the past few years has made it one of Africa’s fastest growing success stories, but in order to compete with the world’s strongest nations more investment in energy infrastructure and skills development is required. With the prospect of an even better Ghana on the cards, organisations in collaboration with government institutions have an opportunity and responsibility to assist the country in achieving economic success. Through partnerships with local businesses, the company has rolled out the largest steam plant in the country contributing 330MW to the national grid and has also been contracted to deliver three gas compression packages.

Source: African Business Communities

Mozambique

Australian company MRG Metals to explore heavy sands in Mozambique

Australia’s MRG Metals has signed an agreement in principle with Australian company Sofala Resources Pty Ltd. to acquire three concessions in Mozambique for the exploration of heavy sands, the company said in a statement issued. The agreement stipulates that MRG Metals has three months to take the necessary steps to ascertain the quality of the heavy sand deposits and that if it intends to proceed with the deal, after that deadline, it has to pay the sellers USD100,000 in addition to 175 million shares and an equal number of options. MRG Metals will also have to provide Sofala Resources Pty Ltd. with an additional 720 million shares based on meeting certain project development goals.

Source: Macau Hub

Mozambique

Government of Mozambique changes Commercial Code to improve business environment

The Mozambican government has approved some amendments to the Commercial Code in order to “reduce bureaucracy and make procedures more flexible and simpler,” for commercial companies, spokeswoman Ana Comoana announced at the end of the session of the Council of Ministers. The spokeswoman, who is also deputy minister of Culture and Tourism, said that the changes introduced are intended to improve the business environment in the country, including “removal of the requirement for notary recognition of signatures on company contracts.” The amendments also include cancellation of the requirement to deposit share capital at company incorporation, as well as the protection of minority shareholders, according to Mozambican state news agency AIM.

Source: Macau Hub

Namibia

MIGA helps secure long-term financing for solar power

The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, has announced its first guarantees in Namibia of up to USD18-million in support of the construction, operation and maintenance of two 5MW solar power plants. The Ejuva One and Two plants will have an annual generation capacity of 25.8GWh. The guarantees provide protection for up to 15 years against the risks of Expropriation, Transfer Restriction and Inconvertibility, Breach of Contract, and War and Civil Disturbance. Some USD15-million of coverage is being provided for non-shareholder loans being provided by South Africa’s Investec Bank Ltd., and an additional USD3-million of cover is being provided for an equity investment by the Consolidated Infrastructure Group (CIGENCO SA.) Around 90% of the equity, and 95% of the loans, both provided in South African Rand, are covered by the guarantees.

Source: ESI Africa

Nigeria

Afreximbank signs USD100-million agreement with Indonesia Eximbank

The African Export-Import Bank (Afreximbank) and the Indonesia Eximbank in Bali, Indonesia, entered into an agreement to commit up to USD100-million to support businesses and trade activities between Indonesia and African countries. The agreement, signed on the sidelines of the Indonesia-Africa Forum is expected to support African imports from Indonesia and African exports to Indonesia in order to stimulate increased trade flows between Africa and Indonesia and spur economic growth and development. Indonesia Eximbank will also provide financing support to Indonesian buyers of African goods, with Afreximbank acting as the bank of the African exporters. In addition, Indonesia Eximbank will support short-term trade transactions emanating from African buyers of Indonesian products, including through provision of confirmation lines to the African banks on the back of a trade confirmation guarantee facility provided by Afreximbank.

Source: Asoko Insight

Nigeria

Nigeria to begin electricity trading with neighbouring countries

Nigeria will begin electricity trading with other West African countries from June this year. West African Power Pool (WAPP) in conjunction with Economic Community of West African States (ECOWAS) Regional Electricity Regulatory Authority (ERERA), the regulatory body for West Africa is hoping to launch the regional electricity market by June. According to Usman Mohammed, the Chairman of WAPP and the Managing Director of the Transmission Company of Nigeria (TCN), the formalisation of the electricity trading arrangement will be under WAPP and the ERERA. Currently, Nigeria sells electricity only to Benin Republic and Niger Republic. Under this arrangement, Nigeria will be buying and selling power from other ECOWAS countries like Ghana and Ivory Coast.

Source: Asoko Insight

Rwanda

Ngoma-Ramiro road rehabilitation project receives financing from Japan

The Government of Rwanda and Government of Japan has signed a financing agreement worth USD68-million for the Ngoma-Ramiro road upgrading project. This project will upgrade and pave the unpaved 53km road between Ngoma and Ramiro. The road is of regional importance since it connects Rwanda to the neighboring countries such as Burundi and DRC. The improvement of Ngoma-Ramiro road will contribute to revitalise regional transportation from the Indian Ocean through the Central Corridor, namely from Tanzania (Dar es Salaam) to Rwanda.  The road is also expected to function as a by-pass and main road for transport of goods from Dar es Salaam Port to Kigali, supplementing the congested Ngoma-Kayonza Kigali Road.

Source: Africa Business Community

Rwanda

Rwanda approves trade deals with strategic African countries

Rwanda has furthered business partnership with three countries that are set to help it deal with trade barriers. Cabinet approved three draft laws approving the ratification of the Agreement between Rwanda and countries that in most cases have access to the sea. The first provision is a Draft Law approving the ratification of the Agreement between the Government of the Republic of Rwanda and the Government of the Republic of Djibouti concerning the reciprocal promotion and protection of investments, signed in Djibouti, in April 2017. Another is Draft Law approving the ratification of the Trade Agreement between the Government of the Republic of Rwanda and the Government of the Federal Democratic Republic of Ethiopia, signed in Addis Ababa, Ethiopia in August 2013.

Source: KT Press

Sahel

AFD and Saudi fund to invest EUR200-million to develop projects in Sahel

The French Development Agency (AFD) and the Saudi Fund for Development announced they will jointly invest EUR200-million in African projects, especially in the Sahel region. “We’ve signed a Memorandum of Cooperation with the Saudi Fund for Development, for a strengthened cooperation, a strategic dialog, co-financing, but also EUR100-million from each partner to develop projects in Africa especially in Sahel,” AFD indicated in a statement. This Memorandum of Cooperation was initiated during the Saudi prince Mohammed bin Salman‘s visit to France. During a joint press conference with Mohammed bin Salman, the French President Emmanuel Macron announced a strengthening of both countries’ cooperation in the Sahel, in addition to providing support to the G5 Sahel regional anti-jihadist force (in Mauritania, Mali, Chad, Niger and Burkina Faso).

Source: Ecofin Agency

Senegal

Senegal Scaling Solar tender produces one of the lowest electricity costs in Africa

The World Bank Group’s Scaling Solar program, designed to help remove obstacles to developing large-scale solar power in developing countries, has set a new benchmark in Senegal resulting in two bids that will produce electricity for under EUR0.4 cents, per kilowatt hour. The deal will provide one of the cheapest sources of electricity in Sub-Saharan Africa. Senegal’s Electricity Sector Regulatory Commission (CRSE) has announced the winner of the program’s competitive auction to develop two utility-scale solar plants with a total capacity of 60MWac. ENGIE/MERIDIAM was awarded both projects with bids to produce solar power at just EUR0.3,80 (cents) per kilowatt hour for the solar plant located in Kahone and EUR0.3,98 (cents) per kilowatt hour for the solar plant located in Touba.

Source: African Business Communities

Uganda

Uganda secures a USD4-billion oil refinery deal, following African Legal Support Facility intervention

With the support of the African Legal Support Facility (ALSF), the Government of Uganda has successfully signed an agreement with a consortium of American and Italian firms to finance and construct a USD4-billion refinery in the country’s Hoima district. The project will be a joint venture with the Ministry of Energy and Mineral Development and the Uganda National Oil Company (UNOC), a limited liability oil company owned by the Government of Uganda. The agreement establishes critical terms and conditions for the oil refinery’s development and represents an important milestone in the commercialisation of Uganda’s natural resource endowments. The Facility also supported the Ugandan government by making available an international legal firm to provide advisory services for their ongoing negotiations.

Source: African Business Communities

Uganda

Indian firms seek to invest USD600-million in mining

Three Indian firms have expressed interest to invest USD600-million in Uganda’s energy and mineral sectors.  The investment seeks to boost local production as well as create more jobs.  According to Mr James Mututa, the press secretary to Mr Edward Kiwanuka Ssekandi, the expression of interest was made at the Mumbai World Trade Centre, India where the vice president had gone to attend a Uganda-India Investment Summit. “During one of the meetings, three letters of Intent by Indian companies, Samta Mines and Minerals (USD500-million) and GR Sponge and Power (USD50-million) were signed with respective Uganda government agencies in the energy and mining sectors. Intelizon Energy Uganda signed a deal worth USD50-million,” reads a press statement issued by Mr Mututa. 

Source: Daily Monitor

Zambia

Zambia launches a RfQ for the construction of 100MW solar plants

The Zambian government launched a request for quotation (RfQ) for solar plant projects (100MW). According to the RfQ’s requirements, the projects submitted by the interested companies should have a capacity of at least 20MW. The place to host the plants should be near one of the national grid’s substations. In addition, each company could submit two different projects. At first, a maximum of 20 projects will be shortlisted for a complete technical and financial proposal after which the projects selected will be revealed. The construction of these plants is part of the country's renewable energy purchase program, led by the German Development Bank (KfW). Under this program, the country aims to build 200MW of renewable energy plants within three years.

Source: Ecofin Agency

Zimbabwe

Australian gold player acquires lithium project in Zimbabwe

ASX-listed Latitude Consolidated has entered into a binding agreement to acquire a majority interest in the Mbeta lithium - tantalum project from Zimbabwean national Robert David Hutchings. The project was introduced to Latitude by Klaus Eckhof and Mark Gasson who will receive part of the share consideration. Eckhof will also be appointed as a non-executive director following the receipt of shareholder approval for the acquisition. As part of the transaction, Latitude will complete a two-tranche share placement of which AUD491 000 is upfront under the 15% capacity and AUD2.95-million is subject to shareholder approval raising a total of AUD3.45-million to sophisticated investors. DJ Carmichael Pty Limited is acting as lead manager for the placement.

Source: Mining Review Africa



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