issue: 284 | 4 December 2018


Anglo-Angolan partnership opens factory for distilled spirits in Angola

Angolan company Refriango and British group Diageo have teamed up to invest USD6.2-million in Angola in a distilled spirits factory, which opened the local press reported. The factory was built at the Refriango Industrial Complex in Kikuxi, and has daily capacity to produce 3,000 boxes of 12 bottles of 0.75 litres or 27,000 litres. The Director-General of Diref (the name given to the equal partnership) Edgar Sousa, said that 75% of the raw material for the production of spirits will be purchased in Angola, the remaining 25% being imported, and it is expected that within three years Angolan participation will increase to 90%. He added that the factory’s production will be for local consumption, with no exports planned.

Source: Macau Hub


Angola’s President concludes state visit to Portugal with the signing of 13 agreements

The Angolan president returned to Luanda after a three-day state visit to Portugal in which the two countries signed a set of 13 cooperation agreements, the Portuguese press reported. The agreements signed between Angola and Portugal cover areas such as justice, teacher training, engineering, tourism, culture, social reintegration, forensic medicine, health, science, innovation and the environment. In the final statement, the government delegations of Angola and Portugal considered that the visit by President João Lourenço to Portugal was of high political significance, which was clear in the meetings between the heads of state of the two countries. Lourenço was also given a guarantee by Prime Minister António Costa that Portugal will “provide all the cooperation needed so that the money that belongs to Angola, Angola is accounted for.”

Source: Macau Hub


Chinese group and Angolan partner launch fish farming project

Sino Agro Food, Inc. has signed a memorandum of understanding with Angolan company Nortus Aquacultura e Pesca, Lda for the development of an aquaculture project in the country, the group said in a statement. The document signed by the two groups will be used to request that the necessary financing for the development of the project be included by the Angolan authorities in the line of credit granted by China. The vertical integration system to be built will be modelled on the Chinese group’s Aquafarms no. 4 and 5, with annual production of 60,000 tonnes of fish and shellfish, including tilapia, African catfish and Malayan tiger shrimp, as well as 150,000 tonnes of feed and fruit and vegetables. Rui Sancho, director of Nortus, said the project will use land with access to water sources in the municipalities of Porto Amboim and Cela in the province of Kwanza Sul and Ambaca in Kwanza Norte.

Source: Macau Hub


MOD Resources intersects visible copper in another Dome

MOD Resources has reported potentially significant widths of visible copper mineralisation at very shallow depth, from the first two widely spaced diamond core drill holes at the large T23 Dome, in the Kalahari copper belt in Botswana. T23 Dome is the first new target to be drilled in the northern part of the regional scale T20 exploration project. T23 Dome is located ~15km west of the T4 prospect where MOD Resources intersected very promising copper mineralisation in shallow RC drilling in February 2016, including a notable high grade intersection of 2 m @ 6.1% Cu and 111 g/t Ag from 101 m depth. Drilling stopped at T4 once T3 was discovered in March 2016. The T20 exploration project occurs in the Central Structural Corridor (CSC) where several new copper discoveries have been made within three years.

Source: Mining Review Africa

Burkina Faso

Orezone to incorporate Phase 2 sulphide expansion at Bomboré project
TSXV-listed Orezone Gold Corporation plans to update the 2018 feasibility study on its 90%-owned Bomboré gold project in Burkina Faso to include a staged higher-grade sulphide expansion (Phase II Sulphide Expansion) to complement the oxide mine plan in the 2018 feasibility study. The Phase II Sulphide Expansion is envisioned as a 3 000 to 3 500 tpd sulphide circuit to process zones of higher-grade sulphide and lower transition oxide resources starting in year 3 of commercial production. Capital for this expansion is expected to be funded by future operating cash flows. Roscoe Postle Associates will update the current 5 January 2017 mineral resource estimate to include the oxide material within the previously termed ‘restricted zones’ and the free milling sulphide material at P17S in support of this Phase II Sulphide Expansion study.

Source: Mining Review Africa


Africa Finance Corporation invests in Cameroon’s energy supply as demand grows
Africa Finance Corporation, the leading infrastructure development finance institution in Africa, will invest in the Nachtigal Hydro Power Company, or NHPC, located 65km north of Yaounde in Cameroon. The EUR1.2-billion power generation project will consist of a 420MW hydro-electric power station as well as a 50km transmission line. The financing structure will take a 76:24 debt to equity ratio, with AFC providing EUR50-million in debt and an additional 18-year interest rate swaps of up to EUR75-million. Other high calibre lenders participating in the investment consortium include the International Finance Corporation, European Investment Bank, Proparco, Société Générale and Standard Chartered, with the following as project sponsors: Electricité de Farance International, globally recognised for its expertise in hydro-electric power (shareholding in NHPC: 40%), InfraVentures, the World Bank’s infrastructure project development find (shareholding in NHPC: 30%), and The Government of Cameroon (shareholding in NHPC: 30%).

Source: Mining Review Africa


AfDB approves EUR17.96-million Ring-Road project to improve socio-economic growth in Cameroon
The African Development Bank (AfDB) has approved a EUR17.96-million loan to the Republic of Cameroon to finance the construction of a Ring-Road Project in the North-West Province of the country. The Ring Road project, which contributes to the transport sector support program, aims to improve the movement of goods and people. It will also strengthen the foundations for sustainable and sustainable growth by promoting domestic and regional trade. The loan for the 365 km Ring Road is the Bank's third intervention in the implementation of this important road network rehabilitation and upgrading project. The loop road crosses five of Cameroon's seven divisions of the North West Region and includes several links to the Nigerian border. The project will also include institutional support for the transport sector and related works such as the development of rural roads. 

Source: African Business Communities

Democratic Republic of Congo

Eurasian Resources secures electricity in DRC for copper mine
Eurasian Resources Group, a leading diversified natural resources group, has concluded power supply arrangements for its Frontier mine in the DRC. The contract was signed by the Société Nationale d’Électricité (“SNEL”), the national electricity company of the Democratic Republic of the Congo (DRC), with power supply of 41MW to be sourced from ZESCO, the national electricity company of the Republic of Zambia; and Rawbank, a top commercial bank in the DRC. Frontier mine is a cornerstone of ERG’s copper business and is situated on the DRC-Zambia border.. Eurasian Resources Group (ERG) also recently signed a supply agreement for Metalkol SA, a major cobalt and copper tailings reprocessing operation and a low-cost hydro-metallurgical facility owned by ERG, to secure its electricity supply or up to 10 years.

Source: Mining Review Africa


Altus Strategies discovers Simret silver prospect
Altus Strategies has announced the discovery of the Simret silver prospect at its 100% owned 412km2 Daro Cu-Au-Ag Volcanogenic Massive Sulphide project located in the Tigray Regional State of northern Ethiopia. “We are delighted to announce the discovery of the Simret prospect. Our exploration has returned very high silver grades including 944 g/t Ag, 540 g/t Ag, 277 g/t Ag and 191 g/t Ag from rock chip sampling of quartz veins," comments CE, Steven Poulton. "These veins also returned gold grades of 3.55 g/t Au, 2.56 g/t Au and 2.11 g/t Au along with lead grades of 2.72% Pb and 2.73% Pb. "Geological mapping and stream sampling indicate the potential strike length of the Simret prospect is approximately 2.8km and 0.5km in width. "The prospect is located approximately 3km south of our existing Teklil prospect. At Teklil we have mapped copper oxide mineralisation and discontinuous gossanous outcrop for over 900m in strike length.

Source: Mining Review Africa


Ethiopia overtakes Dubai as top feeder of air traffic to Africa

Ethiopia has overtaken Dubai as a conduit for long-haul passengers to Africa, highlighting the success of the state airline’s expansion drive and the reforms of its new prime minister. Travel consultancy Forward Keys said Addis Ababa airport had increased the number of international transfer passengers to sub-Saharan Africa for five years in a row, and in 2018 had surpassed Dubai, one of the world’s busiest airports, as the transfer hub for long-haul travel to the region. Analysing data from travel booking systems that record 17 million flight bookings a day, Forward Keys found the number of long-haul transfers to sub-Saharan Africa via Addis Ababa jumped by 85% from 2013 to 2017. Transfers via Dubai over the same period rose by 31%. So far this year, Addis Ababa’s growth is 18%, versus 3% for Dubai, according to SABC News. Dubai has long been a major global air travel hub because it is the base of Gulf carrier Emirates.

Source: Fana Broadcasting Corporate


SMB, Winning sign deal with Guinea for alumina refinery
A consortium of the Societe Miniere de Boke (SMB) and Singapore’s Winning Shipping signed an agreement with Guinea’s government to build the country’s first refinery of alumina, which is used to make aluminium. The 1 million tonne per year refinery is part of a USD3-billion project to develop Guinea’s bauxite industry, the largest in Africa. The West African nation is home to about a third of the world’s bauxite reserves, and output of the aluminium ore more than doubled last year to about 50 million tonnes on the back of investments by aluminium giant Alcoa , Rio Tinto Alcan and private investment gorup Dadco. But the country has no facilities to transform those reserves into higher-grade alumina, which can fetch higher prices on world markets.

Source: Reuters


Centum Group to launch Sh50-billion private equity fund

Centum Investments Group  plans to raise between Sh40-billion and Sh50-billion in a fresh private equity (PE) fund as it seeks to cut finance costs from expensive borrowings. The Nairobi Securities Exchange-listed firm said between Sh30-billion and Sh35-billion of this amount will be sourced from high-net worth individuals and institutions such as pension schemes, with the additional Sh10-billion to Sh15-billion coming from its internal revenue sources. The fund will largely be deployed in mature cash-generative businesses and marketable securities such as government securities and equities, group chief executive James Mworia said. Centum, he added, will cut down on greenfield investments which take longer to generate returns contrary to shareholders’ expectations for returns in the short term.

Source: Business Daily


Outsourcing firm ISON BPO gets Sh5-billion funding for expansion

Kenya’s business processing and outsourcing firm iSON BPO Ltd has received Sh5.1-billion from two equity funds to power its expansion across Africa. iSON Group founding chairman Ramesh Awtaney said the new investment—through structured loans and equity from Gulf Capital and Africinvest—will help fast-track the planned entry into several African markets. “Gulf Capital and Africinvest bring deep industry and geography knowledge to our company that will facilitate rapid innovation enabling business transformations in emerging markets,” he said. He said the two funds provided Sh2.55-billion apiece with part of the funds expected to be spent on acquiring shares from a minority investor. iSON has 27 call centres in 13 sub-Saharan countries serving 425 million telecom end-users and is also present in India.

Source: Business Daily


Kenya, Canada explore new partnership in maritime sector

A Canadian delegation in Kenya for the Sustainable Blue Economy Conference has said that their country will explore new partnerships with Kenya. The delegation led by Jonathan Wilkinson, Minister of Fisheries, Oceans and Canadian Coast Guard said their country is willing to work with Kenya in exploring new opportunities for collaboration in the maritime sector including maritime security. The proposal was made when President Kenyatta held a meeting with the Canadian delegation to thank their country for co-hosting the ongoing Sustainable Blue Economy Conference. President Kenyatta welcomed the offer by the Canadian delegation for more partnership and further urged Canada to consider working with Kenya in developing the fishing sector, where Kenya has huge but untapped potential.

Source: African Business Communities


National Bank of Malawi gets license for SME development bank
The Reserve Bank of Malawi (RBM) has given National Bank of Malawi (NBM) a licence to establish a small and medium enterprises (SME) development bank. RBM Governor, Dalitso Kabambe, disclosed this during the 2018 Economics Association of Malawi (Ecama) Annual Conference. “We congratulate National Bank of Malawi for establishing the NB SME Development Bank, which will give medium to long term loans to small and medium scale businesses at concessional terms from Commercial Bank. “This is quite commendable and encouraging,” Kabambe said. NBM Head of Corporate Affairs and Strategy, Wilkins Mijiga, said SME development has been at the heart of his bank for a long time. Mijiga said that is the reason NBM bought Indebank in 2016 to turn it into a development bank for SMEs.

Source: Times Malawi


40MW solar hybrid power plant for Syama Gold Mine

Resolute Mining has signed a Joint Development Agreement (JDA) with an energy developer, Ignite Energy for the development of a 40MW independent solar hybrid power plant at the company’s Syama Gold Mine (Syama) in Mali. Once constructed, the innovative project is expected to be the world’s largest off-grid, fully integrated hybrid power plant for a stand-alone mining operation. The Syama Solar Hybrid Power Plant will combine solar, battery, and heavy fuel oil (HFO) technologies. The new power plant will replace the existing 28MW diesel-fired power station at Syama and is expected to be fully operational by the end of 2020. Managing director and CEO, John Welborn said the scale of this project will be a world first. “The project is a key component of delivering the expected sub-USD750 per ounce All-in-Sustaining-Cost for the Syama Underground Gold Mine,” he said.

Source: ESI Africa


Mauritius opts for floating PV
Mauritius is planning to deploy a 2MW floating solar power plant at its Tamarind Falls reservoir, a 6.3km stretch of water next to the Tamarin mountain range. The United Nations Development Programme has issued a tender to select consultants for a feasibility study for the project. The selected experts will have to undertake an in-depth analysis for the setting up of floating solar PV at the reservoir, while also carrying out a feasibility study for similar projects in lakes and reservoirs across Mauritius. The deadline for submission of proposals is December 6. The project will be financed with funds from the “Accelerating the transformational shift to a low carbon economy” initiative, which aims to remove the bottlenecks to investment in low-carbon development for grid-connected intermittent renewable energy.

Source: PV Magazine


Fura raising USD5.25-million for gemstone operations in Mozambique and Colombia
Fura Gems Inc. said that it is proceeding with a USD5.25-million private placement that will be used to fund development of the company’s emerald and ruby assets in Colombia and Mozambique. Fura is a member of the Forbes & Manhattan Group, a Toronto-based merchant banking group. Fura is developing the Montepuez ruby project in Mozambique and expanded its ruby holdings in the country in July when it acquired nine licences and two wash-plants from Mustang Resources and its major shareholder Regius Resources Group for an USD2.2-million upfront payment and AUS12-million worth of shares to be issued in three lots. Fura said it intends to complete a private placement offering of up to 13.1 million common shares at 40 cents per share.

Source: Club of Mozambique


Sinopec could take stake in Mozambican LNG and Angolan Oil through Galp

Chinese company Sinopec could take a stake in Portuguese oil company Galp Energia and is one of two major international oil firms interested, according to the weekly Jornal Economico. Angolan oil company Sonangol is considering a sale of its stake in Galp Energia, and Sinopec is reported to be among the strongest suitors for the acquisition. It would give it substantial positions in Mozambican LNG and Angolan oil blocks, as well as other assets in Brazil. This deal enabled Galp Energia to finance exploration activities in its blocks in very deep waters off Brazil. Among Galp´s most coveted assets is a 10% stake in the Area 4 concession of the Rovuma basin of northern Mozambique. This is expected to become one of the major natural gas-producing areas of the world in four to five years.

Source: China Lusophone Brief


MTN Rwanda gets Rwf50-billion loan from eight local banks
MTN Rwanda on secured a Rwf50-billion loan from a syndicate of eight local banks. The local commercial banks include; Ecobank Rwanda, Cogebanque, BPR Atlas Mara, I&M Rwanda, Bank of Kigali, KCB Rwanda, Equity Bank, and GT Trust Bank. A syndicate is formed when a lender invites others to service a client’s request for a loan. In this instance, the agents of the facility were led by Ecobank Rwanda alongside Cogebanque and BPR Atlas Mara. The three banks are the main lenders and they invite fellow financiers. The loan has a seven-year tenure. MTN Rwanda officials say that the loan is earmarked for a capital expenditure programme for the next two years targeting expansion and modernisation of the network and related IT systems.

Source: The New Times

Southern Africa

Eskom, AfDB ink deal to expand Southern Africa power pool
The African Development Bank Group (AfDB) and South Africa’s national power utility, Eskom, have signed a loan agreement of R2,886-billion and USD25-million, which will be used to improve power transmission in Southern Africa. This project contributes to the realisation of the New Deal on Energy in Southern Africa, one of the Bank’s priority development areas, by ensuring capacity to add new connections in South Africa and the region. Dr. Kapil Kapoor, Director General of the AfDB Group’s Southern Africa bureau said: “The AfDB and Eskom have had a long-standing partnership, through which the Bank is supporting the transformation of this critically important utility. “The financing of the Eskom Transmission Project will result in a significant strengthening of South Africa’s transmission infrastructure.

Source: ESI Africa

South Sudan

South Sudan launches development strategy to stabilise economy
South Sudan has launched a National Development Strategy in an effort to help consolidate peace and stabilise the economy. Salvatore Garang Mabiordit, the finance minister, said the three-year medium-term strategy for development will guide the government to articulate investment in key areas such as agriculture, livestock, petroleum, security sector reforms, including basic service delivery to the citizens. “The objective of this national development strategy is to operationalise and streamline implementation of the revitalised peace agreement through development,” the minister said in Juba during the launch of the strategy.  “We have taken keen attention to leverage and align the strategy to other national and international development frameworks to which the government has committed,” said the official.  

Source: The New Times


Tycoon signs deal for car assembly in Tanzania
Dar es Salaam-based industrialist Reginald Mengi last week signed a deal with a South Korean firm to set up a vehicle assembly plant in the country. The USD10-million deal between Mengi’s IPP Automobile Company Ltd and Youngsan Glonet Corporation will bring to two the number of vehicle assembly plants in Tanzania. The other one is Ursus, a Polish tractor assembly plant at Kibaha. Mr Mengi, the IPP group executive chairman, also has interests in processing, mining and the media. Speaking after signing of the deal, Mr Mengi announced that the plant, to be built at Kurasini, will be up and running by September next year. He added that it is expected to assemble around 1,000 vehicles per year. Tanzania joins Rwanda and Kenya in establishing car assembly plants in the region.

Source: The East African

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