issue: 282 | 19 November 2018

Africa

The six Portuguese - speaking African countries plan to boost growth via USD5-billion worth projects

The six Portuguese - speaking African Countries (Angola, Cabo-Verde, Equatorial Guinea, Guinea Bissau, Mozambique, and Sao Tome & Principe), signed on November 6, 2018, an agreement for the implementation of USD5-billion worth projects to boost growth. This was revealed by the African Development Bank (AfDB) in a statement published on the sidelines of the Africa Investment Forum held in Johannesburg (South Africa). This agreement co-signed by the AfDB should allow the implementation of the said projects in the framework of public-private partnerships. By focusing on the private sector, these projects should help boost those countries’ human and infrastructures capital for better management of their resources. Concretely, the new agreement is aimed at attenuating the risks for private investment and public-private partnerships, and improving direct financing for investments and developing the private sector.

Source: Ecofin Agency

Africa

Angola Cables, Broadband Infraco sign deal to improve internet connectivity in Africa

Multinational telecoms company Angola Cables has signed a Memorandum of Understanding with Broadband Infraco. Broadband Infraco provides extensive regional long-distance network coverage and Southern African Development Community connectivity. From a South African connectivity perspective, Broadband Infraco currently has more than 14 960km of fibre networks across the South African geography. It also has 156 Points of Presence (PoPs) providing a high capacity, stable national network environment. Angola Cables CEO, António Nunes, said that the partnership will facilitate internet connectivity into Africa. "With our international connectivity and reach through our submarine networks and the expansive terrestrial network of Broadband Infraco, there is a genuine opportunity for us to collectively fast-track connectivity on the continent" added Nunes. The cooperation between the two companies will also advance business channel synergies.

Source: African Business Communities

Africa

OFID signs USD50-million deal with Natixis to bolster trade in Africa
OFID – the OPEC Fund for International Development – has signed a USD50-million unfunded risk sharing agreement with Natixis., part of Groupe BPCE, France’s second-largest banking group. Under the agreement, OFID guarantees trade finance instruments issued by banks in developing countries to support the trade transactions of local businesses and corporations. The agreement focuses in particular on African countries and will bolster trade and development. The agreement was signed for OFID by Assistant Director-General, Public Sector Operations, Fuad Albassam. Thomas Rogé, Director, Trade Syndication & Distribution, and Stephen Menke, Global Head of Trade Finance, signed the agreement for Natixis. Low-income countries account for 27% of the beneficiaries. The programs support around 4,700 operations, stimulating some USD16-billion of incremental trade.

Source: African Business Communities

Angola

Angola’s Sonangol sells its 25% stake in telecoms company Unitel

Angola’s national oil and gas company, Sonangol, will sell its 25% stake in mobile telecommunications company Unitel, the group’s chairman said in Luanda. Shareholders in Unitel, the largest mobile telecommunications operator in Angola, including Vidatel, Geni, Mercury and PT Ventures, each have a 25% stake in the company, with Sonangol’s stake held through Mercury, a telecommunications services subsidiary. Carlos Saturnino, who was speaking after the presentation of the group’s Regeneration Programme, also announced that the company had submitted to the Government a list of 51 other companies in which it holds stakes that it intends to divest in part or in full by the end of December 2019. Sonangol’s restructuring programme was approved in September by the President of Angola and was justified by the need to find solutions to ensure the sustainability of the oil industry in Angola, with Sonangol on its core business, namely oil.

Source: Macau Hub

Angola

Construction of Angola’s Cabinda Refinery, awarded to United Shine consortium

The construction of the Cabinda Refinery was awarded to the United Shine consortium in partnership with Angola’s national oil and gas company, Sonangol, the state-owned company said in a statement. The statement also said that the consortium will have a 90% stake in this project, and the remaining 10% will be owned by Sonangol Refinação – Sonaref. The Angolan government launched an international tender for the construction of the Cabinda and Lobito refineries in 2017, under the strategy of developing the crude oil refining business in the country, and received 68 expressions of interest. The refinery in Cabinda should have a processing capacity of no more than 60,000 barrels of oil per day. The statement gave no details about the companies that make up the United Shine consortium.

Source: Macau Hub

Botswana

Botswana Diamonds and ”new partner” to drill Kalahari site in 2019

Botswana Diamonds now holds 100% of the equity in Sunland Minerals, having acquired for a nominal sum the 50% previously held by Alrosa. This is part of Botswana Diamonds' joint venture with Alrosa (the Sunland JV). “Alrosa has been an excellent partner over the past four years. They brought a fresh approach and new technology to exploration in the Kalahari," comments Botswana Diamonds chairman, John Teeling "The work done by Sunland was and is of a high standard. We had no instant success, you rarely do in exploration, but progress had been made toward the target of a commercial discovery. "For reasons unconnected with this acreage, new Alrosa management prioritised marketing over early stage exploration. This happened before, in a previous company, with the Karowe discovery.

Source: Mining Review Africa

Botswana

MOD Resources completes Metal Tiger transaction

ASX-listed MOD Resources Limited has completed its transaction with Metal Tiger effective 15 November 2018. MOD has acquired Metal Tiger's (MTR) 30% stake in the T3 Copper Project - MOD now owns 100% of the T3 Copper Project; and rights to purchase, at MOD’s election, MTR’s 30% interest in all other JV Exploration Assets that reach scoping study level, or after three years from completion of this transaction, (November 2021). “This is a landmark transaction for our shareholders. With full ownership of the T3 copper mine and processing plant, we have laid the foundations to grow into a mid-tier copper producer, centering its operations around the T3 hub in the central Kalahari Copper Belt,” highlights MOD’s MD, Julian Hanna.

Source: Mining Review Africa

Burkina Faso

European Union and Burkina Faso deepen bilateral partnership on economy and security

The President of the European Commission, Jean-Claude Juncker, and the President of Burkina Faso, Roch Marc Christian Kaboré, have strengthened the cooperation and partnership between the European Union and Burkina Faso at a meeting in Brussels. Presidents Juncker and Kaboré discussed the cooperation between the European Union and Burkina Faso in the fields of the economy, security and culture. The two presidents also discussed the subject of the presidency of G5 Sahel, which Burkina Faso will hold next year, and the challenges faced by the country, particularly in the area of security. The Commissioner for International Cooperation and Development, Neven Mimica, said: ‘With these two new programmes worth EUR15-million, the European Union makes a concrete commitment to job creation, investment, creativity and youth. For the young people of Burkina Faso, culture is a stimulating and promising sector in which the EU continues to invest, just as it does in gender equality, which is a necessary condition for sustainable and inclusive economic development'.

Source: African Business Communities

Burkina Faso

Oikocredit invests EUR2-million in Anatrans cashew processor

Burkinabe cashew processor Anatrans has welcomed social impact investor Oikocredit as a new shareholder, in a transaction that saw Dutch headquartered Oikocredit make a EUR2-million investment in Anatrans. Anatrans is one of Burkina Faso’s leading cashew processors. It sources nuts from the local community and supplies fair trade, organic and conventional cashews to international markets. Anatrans benefits from the trading network of its main shareholder, Trade Development Group (TDG). Via links with farmer groups and cooperatives Anatrans maintains year-round relationships with 3,500 cashew producers. It has supported producer groups since 2008 by offering technical assistance in collaboration with Non-Government Organisations. Anatrans also employs approx. 1,500 people. Oikocredit has over 40 years of experience funding organisations active in inclusive finance, agriculture and renewable energy.

Source: African Business Communities

East Africa

Poland courts East Africa as strategic partner

As Poland celebrates 100 years of Independence this year, the country is revamping its relations with the region and has already advanced a USD110-million credit to Tanzania to improve its agriculture and food security sectors. Speaking to The East African in Warsaw, deputy director of the Department of Economic Co-operation in the Ministry of Foreign Affairs Konrad Pawlik said that, given its agriculture potential and growing consumer market, Tanzania fits in with Poland’s focus on economic and development co-operation.

Source: The East African

Ghana

Ghana to receive USD100-million to establish tractor assembly plant
The Ministry of Trade and Industry, in collaboration with the Government of Poland, will receive a USD100-million concessionary credit facility to establish an assembly and manufacturing plant for tractors and modern agricultural equipment. The facility is under the African-Polish Cooperation Framework. The tractor manufacturing plant would serve both the Ghanaian and ECOWAS markets geared towards supporting the Government's Industrial Transformation Agenda in respect of rural industrialisation. Mr Ken Ofori-Atta announced this when he presented the 2019 Budget Statement to Parliament in Accra. The presentation of the Budget is in compliance with Article 179 of the 1992 Constitution, which requires the Government to present the Financial Policy Statement of the country to the Legislature.

Source: Ghana Web

Ghana

Ghana, Qatar sign five agreements, including double taxation

Ghana and Qatar signed five Memoranda of Understanding (MoU) for the establishment of partnerships between the two countries. The MoU include the “Agreement for the avoidance of Double Taxation and the prevention of Fiscal Evasion with respect to taxes on income,” which would help alleviate territorial double taxation of the same income by Ghana and the State of Qatar. The agreements were signed when President Nana Addo Dankwa Akufo-Addo, who is on a day’s official visit to Qatar, held bilateral talks with the Emir, Sheikh Tamim bin Hamad Al Thani in Doha. The other agreements comprised “The Regulation of Manpower Employment in the State of Qatar,” signed on behalf of Ghana by Foreign Affairs Minister Shirley Ayorkor Botchway, and, on behalf of Qatar, by Mr Uposif Bin Mohammed Al Othman, Minister for Administrative Development and Labour and Social Affairs.

Source: Ghana Business News

Guinea Bissau

Guinea-Bissau and European Union sign new fisheries agreement
Guinea-Bissau and the European Union (EU) signed a fisheries agreement to allow vessels from some European countries to operate in the country’s territorial waters, the fisheries minister said in Bissau. Minister Adiatu Nandigna said that the European Union agreed to pay Guinea-Bissau EUR15.6-million per year for five years, compared with the previous agreement with Bissau, which stipulated payments of EUR9.5-million annually. The new agreement stipulates that of the EUR15.6-million per year, EUR11.6-million will be channelled into the Guinean government’s general budget, and the remaining EUR4-million will be used to support fisheries facilities, supervision of territorial waters and for research. The agreement between the EU and Guinea-Bissau, in place since 2007, allows vessels from Spain, Italy, Greece, France and Portugal to fish for tuna, cephalopods (octopus, squid, cuttlefish), shrimp and demersal species (flatfish and groupers).

Source: Macau Hub

Kenya

IFC injects Sh1-billion into Twiga Foods
Internet-based food-market platform Twiga Foods has received Sh1-billion to scale up its fresh produce buying for direct sales to select formal markets. The funding was jointly raised by World Bank’s private investment arm International Finance Corporation (IFC), private equity firm TLcom and the Global Agriculture and Food Security Programme (GAFSP). It will be spent on creating a formal farmer-market linkage. The investment was co-led by IFC and TLcom — a pan-African venture capital firm — with participation from previous investors Wamda Capital, DOB Equity, 1776 and Adolph H.Lundin. As part of the deal, Wale Ayeni, who leads IFCs’ venture capital activities in Africa, and Maurizio Caio, managing partner at TLcom will join the board.

Source: Business Daily

Kenya

Kenya to issue USD489-million domestic bonds to fund infrastructure projects

Kenya will issue USD489-million of domestic bonds to fund infrastructure projects, a release published by Central Bank of Kenya informed.  These bonds which were issued on November 14, 2018, will have a maturity period of 20 years with an 11.950% coupon. The proceeds of this issuance will be used to finance the construction of a road and water adduction as well as electricity projects, the same source revealed. Late October 2018, the public treasury announced its intention to issue Eurobonds and take syndicated loans to raise about USD2.8-billion in the framework of the "Big Four" agenda of the president Uhuru Kenyatta: affordable houses, food security, industrialisation, and health access. According to the International Monetary Fund’s estimates, Kenya’s public debt should average 63.2% of GDP by the end of 2018 against 58% a year earlier.

Source: Ecofin Agency

Lesotho

Lesotho Highlands Water Project Phase II Advance Infrastructure project update

The Lesotho Highlands Water Project Phase II Advance Infrastructure construction at Polihali and Katse is set to commence on 9 January 2019, following the award of a contract to the WBHO/LSP Joint Venture. The WBHO/LSP Joint Venture comprises WBHO of South Africa and LSP Construction (Pty) Ltd, a Lesotho-registered company. At Polihali, where the  Phase II Polihali Dam is to be built,  the scope of work includes earthworks and the creation of platforms for buildings, water and wastewater systems, landfill, roads, drainage, electrical and telecommunications networks. At Katse village, the village built in Phase I to accommodate consultants and contractors working on the Project, the works cover the upgrade of existing water and wastewater systems, a landfill site, as well as roads and utilities.

Source: ESI Africa

Malawi

Firm partners Ecobank to finance agri-businesses
One of the country’s commercial banks, Ecobank, has partnered Global Communities Malawi to enhance access to finance for small and medium agri-businesses. The deal would see the bank setting up a USD5-million loans window for Small and Medium Enterprises (SMEs). Ecobank Managing Director, Charles Asiedu, said the partnership is targeting players in the agriculture value chain. He said the bank has set measures to facilitate growth of the businesses. Minister of Agriculture, Irrigation and Water Development, Joseph Mwanamvekha, said the partnership would complement government’s efforts to develop the agricultural sector. He said the government wanted to see the sector meaningfully contributing towards economic growth and development of the country.

Source: Times Malawi

Mozambique

Wegh Group invests in Mozambique sleeper plant
Italian company Wegh Group has increased its stake in concrete sleeper manufacturer Travessas Do Norte, which was already 52% owned by Wegh Mocambique. The company’s plant at Namialo on the Nacala – Nampula railway is one of the largest in southern Africa with a capacity of 1 600 sleepers per day. Established to support the reconstruction of the Nacala Corridor, it now supplies all railways in Mozambique, and plans to supply neighbouring countries. Announcing the acquisition of additional shares, Wegh Group said it was one of the most important Italian industrial investments in Mozambique and had decided to focus strongly on markets in the region that have great potential for development, particularly Tanzania, Zambia, South Africa and Namibia.

Source: Club of Mozambique

Nigeria

UPS adds Nigeria to its international delivery markets
American multinational package delivery and supply chain management company UPS has announced the addition of 14 new countries among them Nigeria served by UPS Worldwide Express, part of UPS’s international suite of shipping services that guarantees time- and day-definite delivery for urgent shippers. The sweeping expansion of global services also includes later pick-up times, improved time-in-transit and Saturday delivery in seven countries in Indian Subcontinent, Middle East, and Africa, all part of the company’s desire to better connect businesses to its smart global logistics network, while demonstrating the company’s strategic focus on international high-growth markets. The additional postal codes increases the footprint of this guaranteed service by five times, enabling shipments to over 35 countries and territories and the ability to receive packages from over 70 countries and territories.

Source: African Business Communities

São Tomé and Principe

French-Angolan consortium plans to prospect for oil in São Tomé and Principe

São Tomé and Príncipe’s National Oil Agency has begun negotiations with a consortium to sign an oil exploration contract in Block 01 of the archipelago’s Exclusive Economic Zone, the agency’s chief executive said. The consortium includes Total E&P Activités Pétrolières and Angola’s oil and gas company Sonangol. Orlando Pontes, who was speaking on the side-lines of a meeting with São Tome’s Prime Minister, accompanied by the director of Total E&P Activités Pétrolières, Charles Fernandes, representing the consortium, said that the agreement should be signed “in a few weeks.” The negotiations are the result the interest shown by Total E & P Activités Pétrolières in prospecting for oil in that block following a public tender launched by the National Oil Agency last May.

Source: Macau Hub

Senegal

Two solar PV plants achieve 25-year PPA

Global energy and services company ENGIE, alongside its investment partner Meridiam consortium and Fonsis, the Senegalese Sovereign Fund, signed a 25-year power purchase agreement (PPA) with Senelec, the Senegalese off-taker for two solar photovoltaic projects in Senegal, Africa. Developed by the Senegalese Government and the International Finance Corporation (member of the World Bank Group), the projects have a combined installed capacity of 60MW and are part of the wider Scaling Solar initiative in Senegal. This signing follows the preferred bidder announcement that was done in April of this year. With nearly half of the population unable to access electricity, the Scaling Solar project enables governments to rapidly mobilise privately funded projects to improve access to electricity. The construction and operation of the two projects that are located in Kahone within the Kaolack region, and Kaël in the Touba region will be managed and executed by ENGIE.

Source: ESI Africa

South Sudan

RCS-Communication launches new Ka-Band service in South Sudan

RCS-Communication, an ISP in South Sudan, has established the first site for Avanti’s HYLAS 4 high-speed satellite broadband service in-country. Following successful beam testing in early November 2018 in Juba, South Sudan, the new Ka-Band service with high throughput speeds of up to 35Mbps download and 4Mbps upload, is now available to RCS-Communication’s customers in South Sudan.  The site at RCS-Communication’s technical office in Juba is the first HYLAS 4 service in East and Central Africa. RCS-Communication partnered with iWayAfrica, an Avanti Master Distributor, to bring the service to South Sudan. “We have a long-standing relationship of almost 10 years with iWayAfrica for the provision of high throughput volume capped VSAT services and are pleased to extend this to the new HYLAS 4 service that offers much improved speeds,” says Flippie Odendal, Managing Director, RCS-Communication. 

Source: African Business Communities

South Sudan

South Sudan signs pact to develop the country’s power sector

In keeping with its vision to Light up Africa, Sahara Power Group has signed a Memorandum of Understanding (MoU) with the South Sudanese Ministry of Energy & Dams to develop the country’s power sector in the generation, transmission and distribution spaces. The MoU would enable the energy company expand the remit of its East African operations as well as develop the infrastructure necessary to grow the power sector and engender capacity building for economic transformation. Sahara Power Group's managing director, Kola Adesina, said: “We consider this to be another landmark and major milestone in our quest to facilitate fast paced development in Africa through seamless power supply. Under the agreement, both the company and the ministry will collaborate to develop transmission backbone infrastructure and the establishment of the grid code. There will be further collaboration between the two parties on the environmental impact study, load evacuation study and overall project development.

Source: ESI Africa

Tanzania

AfDB, Tanzania sign over USD150-million USD loan agreements to support development projects

The African Development Bank (AfDB) signed three agreements amounting to USD156-million with the government of Tanzania to support major development projects, said a senior official. Speaking shortly after the signing of the agreements in the commercial capital Dar es Salaam, Tanzania's Permanent Secretary in the Ministry of Finance and Planning, Dotto James, said the AfDB loans had favorable conditions. He said out of the USD156-million loan, USD123-million were earmarked for the construction of the North-West electricity transmission line, USD13-million for an initiative to prevent aflatoxins contamination in grains and USD20-million for the Global Agriculture and Food Security Program. "The loans from the AfDB have friendly terms. Their interest is almost zero and the loan repayment period is 40 years," said James.

Source: Xinhua Net

Uganda/Democratic Republic of Congo

Africell receives USD100-million from OPIC to grow foothold in Uganda and DR Congo

The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, and Africell Holdings Limited have signed a commitment letter for USD100-million to expand access to telecommunications in Africa. The project is expected to have a highly developmental impact particularly in Uganda and the Democratic Republic of the Congo by expanding the availability and quality of affordable mobile telephone and internet services in these countries. OPIC Managing Director for Africa Worku Gachou and Africell Chief Investment Officer Ian Paterson signed the commitment. Telecommunications are a critical part of development in emerging markets. This project seeks to promote better access to and higher usage of both mobile voice and broadband technologies in its markets by offering high-quality service at affordable rates.

Source: African Business Communities



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