issue: 276 | 8 October 2018

Africa

SDGs Center for Africa establishes Southern Africa region office

The Sustainable Development Goals (SDG) Center for Africa has added a sub-regional center of excellence to support countries in the Southern African region in achieving the SDGs and the African Union’s (AU) Agenda 2063. The center will be located in Lusaka, Zambia, with the Government of Zambia providing facilities and services. Following a resolution by the Sustainable Development Solutions Network (SDSN) Leadership Council, African leaders established the SDGC/A in July 2016 to support SDG implementation in line with Agenda 2063. The SDGC/A is based in Kigali, Rwanda, and works to create partnerships across the SDGs to ensure their effective implementation across Africa. In early 2018 SDGC/A agreed with the Government of Liberia to establish a West African sub-regional center to support SDG implementation in the Mano River Union countries and members of the Economic Community of West African States (ECOWAS).

Source: African Business Communities

Africa

AfriLabs extends membership to 34 African countries
AfriLabs, the largest network of technology and innovation hubs across Africa, has admitted 23 new hubs into its network making it a total of 123 hubs across 34 African countries. This has extended its reach to 4 new countries; Lesotho, Burundi, Mozambique and Sudan. “We are excited to have these new members join our AfriLabs family as well as extend our reach to more African countries. We believe that we are moving closer to an integrated and prosperous continent fostered by open collaboration, innovation and entrepreneurship and driven by hubs and their communities across Africa,” said Anna Ekeledo, Executive Director, AfriLabs. Emile Raubenheimer, of Siyon Capital in South Africa expressed his excitement at the latest partnership” We are excited to announce our partnership with the AfriLabs network. The start-up and incubation network that unlocks synergy in Africa.

Source: African Business Communities

Africa

Phatisa Food Fund 2 first closes at USD121.5-million

Phatisa announceD the first close of its successor fund to the African Agriculture Fund (AAF) — Phatisa Food Fund 2 (PFF 2), which has received capital commitments in excess of USD120-million. Given the strong interest, and with subsequent investors in different stages of their processes, Phatisa will continue with rolling closings and expects to reach a final close target of  USD300-million by mid-2019. For PFF 2, Phatisa will continue its focus on the team’s core skill set – the African food value chain – considering investments in mechanisation, inputs, poultry and meat production, food processing and manufacturing, logistics, aggregation and distribution across sub-Saharan Africa. Targeting buy-out and expansion transactions with an investment size of between USD15-million and USD25-million, building and exiting regional platforms.

Source: Ecofin Agnecy

Africa

Large hotel groups announce investments in the hospitality sector in Sub-Saharan Africa

The sustained boom in the tourism sector in Africa could not but catch the attention of renowned names in the international hospitality value-chain as Ecofin Agency reported recently with many expansion and investments announced in the sector. During the African forum on investments in the hospitality sector held in Nairobi, at least four investments have been announced by groups such as the Ameciran Marriott & Hilton, the French Accor and Radison Hotel Group controlled by the Chinese HNA. In a communique, Radison Hotel Group announced that it launched ten new hotels in Africa this year and is planning to increase its hosting capacity to 23,000 rooms in 120 hotels in the continent by 2022. In addition, though it is based on data from years before 2015 a recent report published by the UNCTAD and focused on the tourism sector in Africa indicates that the sector registered a 7% growth in 20 years.

Source: Ecofin Agency

Botswana

Invest Solar Africa sets foot in Botswana
Invest Solar Africa (ISA) has set foot in Botswana emboldened by its success in reaching advanced stages in setting up two 20 MW plants in Zimbabwe which can power up to 45,000 households, and other positive developments in Zambia, Mozambique and Namibia. In Botswana, the unique business model will provide an opportunity for local investors to explore its merits for partnerships and equity, as is the case elsewhere in some of its regional operations. ISA is one of the first renewable energy companies that has specifically been set up to develop renewable energy projects and own them within a corporate set up. This development comes against the backdrop of growing power challenges in the region that have bedeviled Southern Africa for decades with limited success. ISA’s mandate ensures it focuses on renewable energy, developing, maintaining and financing income in building solar parks across Africa as an alternative energy source.

Source: Weekend Post

Democratic Republic of Congo

Ivanhoe announces third major copper discovery

Ivanhoe Mines announced that it discovered a high-grade copper field on its Western Foreland permit, located in the west of its Kamoa-Kakula exploitation license in DRC.  The field, Makoko, is the third main copper mine discovery made by Ivanhoe in that country after Kamoa and Kakula which, combined, represents the fourth largest copper project in the world. The Toronto-listed company explained that it started drilling explorations on its fully-owned Western Foreland permit during Q3, 2017. To date, more than 50 pits have been drilled mainly in Makoko which is, “the first of multiple high-potential target areas identified by Ivanhoe’s exploration team to be tested by drilling”. “This latest discovery at Makoko validates our exploration model for the geologic features controlling the high-grade copper mineralisation in the region”,  Robert Friedland, Ivanhoe Mines’ co-chairperson commented.

Source: Ecofin Agency

Gabon

Gabon gains support to reduce drinking water deficit

The African Development Bank will support Gabon to reduce the drinking water deficit of 50,000 cubic metres per day, in Grand Libreville, through the Bank's approved USD86-million fund. The Bank's Board of Directors approved the loan. The project, with a total cost of USD134-million, co-financed with the African Growing Together Fund Fund - AGTF for USD48-million, is intended to finance the first integrated sub-programme for the drinking water supply and sanitation Libreville - component drinking water that provides for the development of drinking water supply infrastructure (AEP) of the capital of Gabon and its surroundings. This includes the renewal of 149km of the Libreville AEP network, the reinforcement and extension of 131km of the Libreville AEP network and the repair of leaks in the administrative buildings.

Source: ESI Africa

Ghana

A potential gold project buyout on the horizon in Ghana

Gold explorer and developer Asante Gold Corporation is considering cash bids for a 100% buy-out of its Kubi gold project in Ghana. This follows the company’s announcement that it was sourcing a 50:50 joint venture partner for the exploration and development of Kubi. The joint venture or buy-out consideration is a result of a lack of available funding. Asante Gold Corporation says that financing Kubi through either debt or equity have proven challenging through this long bear gold market, and hence with the recent increase in gold related M&A activity, the company concluded that the joint venture or buy-out route will maximise its returns. Once funded, Asante will commence aggressive exploration of Betenase located just to the south of Obuasi and its other high potential gold exploration concessions, including Keyhole, on the Asankrangwa gold belt in Ghana. 

Source: Mining Review Africa

Ghana

Energy Bank to issue the second most important IPO of Ghana’s history

Energy Bank, the Nigerian group Energy Group’s subsidiary in Ghana, has announced an Initial Public Offering (IPO) which will raise USD68-million. If successful, the operation will be the second most important IPO in the Ghanaian financial market in terms of funds raised after the record issuance made by the local subsidiary of  South African group MTN.  The funds raised should help the bank comply with the increased capital requirement, set by the Central Bank of Ghana, whose strict deadline is late December 2018. If many large banks, multinational banks’ subsidiaries, and systematically important financial institutions notably, are already in line with such requirement, many smaller institutions face serious compliance challenges.

Source: Ecofin Agency

Guinea

Cosumar acquires 55% stake in Comaguis
The Moroccan sugar company Cosumar announced that it acquired a 55% stake in Compagnie maroco-guinéenne de sucre (COMAGUIS). The transaction whose amount has not been revealed, makes the Moroccan company, the major stakeholder of COMAGUIS along with the Guinean company SOGECILE which will now own 45% stake in the company. The transaction will allow COMAGUIS to have a production plant with 50,000 tonnes nominal capacity at 1 km from Conakry port. This plant should start commercialising its product (granulated sugar notably) by Q3, 2019. This stake purchase from the Moroccan group is part of a large plan aimed at strengthening its presence in Africa and in the world. Let’s also remind that in that regard, the group aims to launch an 840,000 tonnes sugar refinery plant in the Northwestern region of Saudi Arabia by Q3 or Q4 2019.

Source: Ecofin Agency

Ethiopia

KEFI Minerals signs equity investment agreement for Ethiopia project

KEFI Minerals has signed a binding project equity investment agreement for the subscription of new equity capital into Tulu Kapi gold project company Tulu Kapi Gold Mines (TKGM) for a minimum of USD30-million, which would earn an interest in TKGM of 23%. The agreement is with ANS Mining Share (ANS) and gives it the flexibility to invest further funds to increase its interest to 29% with the proviso that its shareholding, when aggregated with that of the Government of Ethiopia, does not exceed 49.9% of TKGM thus ensuring that KEFI Minerals remains the majority shareholder of TKGM. The final aggregate subscription amount of up to USD38-million will be set by TKGM upon the receipt of all remaining Government and other financier approvals. Final details will then be confirmed by all consortium members. ANS has confirmed to KEFI Minerals that institutional demand has exceeded this enlarged USD38-million figure.

Source: Mining Review Africa

Kenya

I&M inks Sh4-billion loan deal with Dutch lender
I&M Bank has secured Sh4-billion loan from the Dutch Development Bank (FMO) for onward lending to small business (SMEs) in what is expected to boost their operations currently hampered by cautious loaning. While announcing the long-term funding, FMO said the facility would uplift I&M Bank’s lending to the small enterprises. “By supporting the expansion of its operations, FMO can help give the local economy an extra boost,” said FMO's chief investment officer Linda Broekhuizen in a statement. The loan whose interest rate was not disclosed has a five-year tenor. FMO said I&M has a loan portfolio of about Sh121.1-billion of which almost 30% consists of credit to SMEs. 

Source: Business Daily

Mozambique

Energias de Portugal enters Mozambique through investment in Dutch company
Energias de Portugal has invested EUR2-million in the purchase of a stake in SolarWorks! of the Netherlands, operating in Mozambique and preparing to enter the Malawian market, the group said in a statement. The investment resulted from a round of financing led by EDP Renováveis, a subsidiary of the EDP group, in conjunction with venture capital firm Persistent Energy Capital LLC, following a capital increase by SolarWorks!. EDP’s statement said that the investment will stimulate the international expansion of SolarWorks! in Southern Africa, where it has operated a pay-as-you-go (PAYGO) business since 2016. This investment by EDP marks the beginning of the new strategy defined for the A2E (Access to Energy) area, in which it has committed to invest EUR12-million over the next three years to cover 200,000 people, mainly in developing countries.

Source: Macau Hub

Mozambique

Mozambique launches construction of a 165km road linking Mueda to Negomano

Mozambique launched the construction of a 165km road for an estimated cost of USD40.6-million, the news agency AIM indicated. According to information reported by the news agency, the road should link Mueda to Negomano at Tanzania’s border and reduce the traveling time. It is planned to be built in two phases and should also contribute to economic growth by facilitating ecotourism and trans border trade with neighbouring Tanzania. Let’s note that this project financed by the African Development Bank falls within the framework of the large construction of National Highway Number 1 (N1), one of the main highways in the country. Expected to last two and a half years, the execution of the project has been entrusted to the Chinese company Anhui Foreign Economic Construction Group (AFECC).

Source: Ecofin Agency

Mozambique/Tanzania

Chinese company AFECC builds road linking Mozambique to Tanzania
China’s Anhui Foreign Economic Construction Co. (AFECC) will build the road between Mueda and Negomano, over a distance of 165km between Mozambique and Tanzania, whose first stone was laid by President Filipe Nyusi, the local press reported. This project is part of a larger project to build the National Road Number One (EN1), which runs from Rovuma to Maputo, in the southern region of Ponta do Ouro, which is already undergoing repairs in the Central region of Mozambique and has been completed in the South. The first phase of this project includes the construction of 70km of road from Negomano to Roma, with three bridges and a rainwater drainage system to prevent road erosion.

Source: Macau Hub

Namibia

AfriTin looks to drive regional expansion in Namibia

AfriTin Mining has executed an agreement to acquire the entire issued share capital of Tantalum Investment from Jan Jonathan Serfontein. Tantalum Investment holds two exploration licenses which are exploration licenses EPL5445 (Brandberg West Tin-Tungsten Mine) and EPL5670 (license in the Goantagab belt) for the exploration of tin, tantalum and other associated minerals. Anthony Viljoen, CEO of AfriTin Mining comments: “This acquisition of Tantalum Investment is another positive step for AfriTin as we look to consolidate African tin assets and embark on a regional expansion drive in Namibia.” “During a recent exploration program, on our new licences and in the surrounding area, we identified a number of anomalous geological targets. Some of these targets had been mined in the past and we therefore believe in the overall potential of the Damaraland area, in Namibia.”

Source: Mining Review Africa

Rwanda

Rwanda attains USD266-million loan to improve electricity supply

The African Development Bank has approved a loan of USD266-million to support Rwanda’s efforts in improving the east African country's electricity supply reliability. Under this initiative, the government is also looking to expand access to electricity as part of a drive to transform the country into an export-oriented economy. The facility will be specifically channelled to the Scaling Up Electricity Access Programme (SEAP II) in Rwanda. Rwanda received the Bank’s investment of USD46-million in 2013 for the first phase of the programme, using investment-lending financing, which is now 90% complete and ahead of schedule. The approved facility is split into a USD192-million African Development Bank loan and a credit of USD74-million from the African Development Fund.

Source: ESI Africa

Rwanda

Rwanda Energy Group unveils USD20-million substation facility in Gasabo district

The Rwanda Energy Group (REG) recently inaugurated a USD20-million power substation facility in the Gasabo district. REG chief executive, Ron Weiss, was present for the official inauguration. According to the New Times, the substation forms part “Project for Improvement of Substation and Distribution” which began in 2011. The substation has five power lines (electrical feeders), two of which will feed industrial zone as it increases capacity. “This project is going to help us improve the network operations in Kigali, reduce power and energy losses, and also to increase both the quality and the quantity of power supply in Kigali,” Weiss noted. Media highlighted that Kigali accounts for 64% of the total power consumption in the country. Yet, the city has been experiencing large-scale power outages and power losses.

Source: ESI Africa

Tanzania

DCG, TAZARA seal deal to develop a new dry port

The Dar es Salaam Corridor Group (DCG) and the Tanzania-Zambia Railway Authority (TAZARA) have entered into a partnership agreement for the development of a Dry Port at the terminal end of TAZARA in New Kapiri Mposhi, Zambia. DCG emerged winner from an open competitive bidding process and is soon expected to begin constructing the Dry Port on a Build-Lease-Transfer (BLT) Public-Private-Partnership (PPP) model. Included in the terms are that DCG will take hold of the four hectare piece of land, construct the Dry Port, operate (lease) it for 25 years and, thereafter, transfer all the immovable assets to TAZARA. Speaking during the signing ceremony in Dar es Salaam, the Authority’s Managing Director, Eng. Bruno Ching’andu thanked the investor for patiently waiting for the shareholders’ approval of the Agreement.

Source: Africa Business Communities

Tanzania

Strandline finalising funding and negotiations for Fungoni
Strandline Resources has secured a binding offtake agreement for rutile product that will be produced at its Fungoni mineral sands project. The agreement is with Industrial Minerals and Metals (IMMCO), an experienced commodity trader and consumer of mineral sands based in Europe and Asia. The Fungoni rutile is expected to achieve a premium specification making it suitable for high-end titanium applications. Based on the pricing formulae contained in the agreement and the assumptions contained in the Fungoni DFS, the rutile production is expected to generate ~10% of Fungoni’s total revenue. Importantly, this means that 100% of the forecast revenue is now secured under binding take-or-pay contracts for the entire life of the Fungoni mine. The other project revenue is forecast to be from existing offtake agreements for zircon-monazite and ilmenite.

Source: Mining Review Africa

Uganda

Japan wants to fund Karuma bridge
The Japan International Cooperation Agency (JICA) has hinted on possibility of bankrolling construction of a second suspended bridge on River Nile at Karuma once the proposals have been approved at the highest level. JICA’s country officer-in charge of Uganda, Mr Nishino Mitsuo, in an interview with Daily Monitor at the agency’s headquarters in Tokyo, Japan, described the plan as “attractive” and highly demand driven but said they are still “gathering a lot of information before we can make a decision.” The Uganda National Roads Authority (Unra) officials told this newspaper earlier that feasibility studies and designs for a new bridge, preferably a suspended bridge like the Jinja cable bridge, to replace the one were midwifed some years ago but the plans were shelved over financing headaches.

Source: Daily Monitor


No information provided herein may in any way be construed as legal advice from ENSafrica and/or any of its personnel. Professional advice must be sought from ENSafrica before any action is taken based on the information provided herein, and consent must be obtained from ENSafrica before the information provided herein is reproduced in any way. ENSafrica disclaims any responsibility for positions taken without due consultation and/or information reproduced without due consent, and no person shall have any claim of any nature whatsoever arising out of, or in connection with, the information provided herein against ENSafrica and/or any of its personnel. Any values, such as currency (and their indicators), and/or dates provided herein are indicative and for information purposes only, and ENSafrica does not warrant the correctness, completeness or accuracy of the information provided herein in any way.

 

feedback

Please fill in the form below to send us any queries, requests, feedback, suggestions - we'd love to hear from you:
 *
 *
 *
 *
 

 

latest news

 

our awards

African Legal Awards Chambers and Partners Rankings DealMakers Awards Global Competition Review 100 (GCR100) Rankings IAM Patent 1000 Rankings IFLR1000 Rankings International Tax Review (ITR) Rankings Legal 500 Rankings Managing Intellectual Property (MIP) Rankings World Trademark Review 1000 (WTR 1000) Rankings
info@ENSafrica.com | level 2 BBBEE rating (South Africa)