issue: 287 | 14 January 2019


Japan to sign USD650-million contract for Namibe Port Expansion

Japan may soon launch its first major investment in Angola. Indeed, two of the largest private companies in the country are vying to sign a USD650-million contract for the expansion of Namibe Port. According to information relayed by the site of the Global Construction Review, the commercial company Toyota Tsusho and Japan Bank for International Cooperation (JBIC) should sign, the investment agreement in the third largest port of Angola. The agreement should allow JBIC to finance a USD650-million credit line for the implementation of the project while Toyota Tsusho plans to install Japanese equipment to increase the port's export capacity. connected by rails to the country's iron mines. This deal could mark the Japanese state's offensive policy to counter the growing influence of China, of which Angola is the main trading partner in Africa.

Source: Agence Ecofin


Strata-X announces Serowe CSG Project drilling

The directors and management of Strata-X Energy Ltd have announced that the company has entered into a turnkey contract for 1 firm plus one optional vertical well with Danos Drilling of Gabarone, Botswana for the initial appraisal drilling of the Company’s 100% owned Serowe CSG Project. The Company has received all the necessary government approvals for the appraisal program and is set to begin drilling operations during the first week of February. Following the Company’s internal interpretation of historical coal and CSG drilling in Botswana last year, Strata-X focused on the upper stratigraphic section within a high graded area. The stratigraphic section has bright and gas saturated coals that are interpreted to be highly prospective for commercial CSG.

Source: Africa Business Communities


EUR60-million for Cameroon-Chad electrical interconnection and trans-Saharan fiber optic backbone

The European Commission and the African Development Bank have signed two co-financing agreements for the Cameroon-Chad electricity interconnection project and the Trans-Saharan Dorsal fiber optic (DTS). It was at the headquarters of the European Commission in Brussels. Mr. Ousmane Doré, Director General of the Bank for Central Africa, and Ms. Francesca Di Mauro, Head of the Central and Southern Africa Unit, and Indian Ocean, Directorate General for International Cooperation for Development of Central Africa European Commission, have co-signed these agreements for a cumulative amount of nearly EUR60-million granted in the form of grants. At the regional level, these two projects will increase energy and data exchanges, in addition to greater integration of the member States of the Economic Community of Central African States (ECCAS), thus contributing to their socio-economic transformation.

Source: Agence Ecofin

Democratic Republic of Congo

AVZ Minerals ups its lithium aspirations
AVZ Minerals, who is developing the Manono lithium project in southern DRC, is currently underway with a 5 Mtpa and 10 Mtpa scoping study. The study is aimed at further improving the project economics, especially in the areas of transport, processing, lowering strip ratio and increasing of mine life. The Manono project, which is located about 500km north of Lubumbashi, comprises one main exploration permit covering 242.25 km2, surrounding the world-class historic Manono tin mine. AVZ Minerals acquired the Manono lithium project in December 2016 and has since proved up a JORC-compliant total measured, indicated and inferred resource of 259.9 Mt grading 1.63% Li2O (spodumene) containing 4.25 Mt of lithium oxide (Li2O); 219 Kt of tin as cassiterite grading 844 ppm tin (Sn); and 11.2 Kt of tantalum grading 43 ppm tantalum pentoxide, (Ta2O5) in August 2018.

Source: Mining Review Africa

Democratic Republic of Congo

Armadale reaches formal agreement to sell non-core DRC gold project
AIM-listed mining company Armadale has entered into a formal sale agreement with African Royalty Company for the sale of the Mpokoto gold project in the Democratic Republic of Congo. This stage has been reached after Arrow Mining and African Royalty completed due diligence and formal terms were finalised and agreed. The transaction allows Armadale to focus on advancing its primary value driver, the high-grade Mahenge Liandu graphite project in Tanzania. Arrow Mining will take over the operations on the Mpokoto project and is obliged to pay Armadale a 1.5% royalty on gold sales achieved once in production. The Mpokoto project has a feasibility study based on a 720 000 tpa operation over 4.5 year producing an average of 24 900 ozpa with a substantial sulphide resource that could further extend the mine life.

Source: Mining Review Africa


House approves cooperation agreements with Morocco, Rwanda

The House of People’s Representatives (HPR) in its session approved four cooperation agreements that the government of Ethiopia has signed with Rwanda and Morocco. The agreement on protection and promotion of investments between Ethiopia and Morocco would help to elevate the diplomatic ties between the two countries, create jobs, improve productivity, and promote technology transfer, the House said. Similarly, the agreements signed between Ethiopia and Rwanda in the areas of information and media as well as agriculture would help to distribute information worldwide from Addis Ababa, the seat of various international organisations, and emulate Rwanda’s experience in agriculture.

Source: FANA Broadcasting Corporation


AfDB to finance construction of two hydropower plants in Gabon

The African Development Bank (AfDB) and the GPC-ERANOVE Consortium signed a letter of intent for the financing in Gabon of the Ngoulmendjim (73MW) and Dibwangui (15MW). According to the terms of this document, submitted following a call for expressions of interest, the ADB confirms its intention to act as co-arranger and co-lender, up to EUR160-million, with the company Africa Finance Corporation (AFC), in financing these hydropower projects. It should be noted that this letter of intent comes after the signature, with the Gabonese Republic in Libreville, of the purchase of electrical energy contracts of Ngoulmendjim and Dibwangui, carried respectively by the companies Asokh Energy and Louetsi Hydro.

Source: Agence Ecofin


Aker Energy makes successful oil discovery in Ghana
Aker Energy has announced that its oil exploration in the Deepwater Cape Three Points block in Ghana have been successful. The company explained that initial works done show that its Pecan4A well in the block could be holding some 450 to 550 million barrels of oil. This, the company said has paved the way for further works on other wells in the block as it completes the main well—the Pecan4A.  A statement published by the company and sighted by Citi Business News explained that “the main purpose of Pecan-4A appraisal well was to confirm Aker Energy’s understanding of the geology in the area and to identify deep oil water contact in the Pecan reservoir. This was successfully proven”.

Source: Ghana Web


India grants credit line to Mozambique to buy railway equipment

The Exports and Import Bank (ExIm) of India has opened a credit line of USD95-million for Mozambique to acquire railway equipment under an agreement recently signed in Maputo, the bank said. The credit line will enable the Mozambican government to acquire rolling stock, such as locomotives, passenger cars and wagons of various types. The signing of the agreement for this new credit line represents the thirteenth such financing granted by the Indian bank on behalf of the country’s government to its counterpart in Mozambique, whose aggregate amount currently totals USD734.44-million. The credit lines opened to Mozambique are aimed at financing projects such as rural electrification, increasing agricultural productivity, building solar panels, rebuilding roads and building 900 houses.

Source: Macau Hub


Gas-fired power plant planned for Temane in Mozambique
The government of the Mozambican province of Inhambane and qualified strategic partners are planning to start construction of a gas-fired power station in Temane in the Inhassoro district this year, the AIM news agency reported. The strategic partners were identified as Electricidade de Moçambique (EdM), Hidroeléctrica de Cahora Bassa (HCB), Empresa Nacional de Hidrocarbonetos (ENH) and the National Oil Institute as well as South African group Sasol, which operates natural gas deposits in Pande and Temane, in that province.  The natural gas-fired power station aims to improve the quality of electricity supplied to most districts in the province of Inhambane as well as that of Sofala.

Source: Macau Hub


Stiegler’s Gorge hydropower project gains further support

Tanzania’s National Environmental Management Council (Nemc) has approved the construction of the planned 2,100MW hydroelectric dam at Stiegler's Gorge, assuring that it will have no adverse impact on the local ecology. The director general of the Council, Dr Samuel Gwamaka, said that implementation of the hydroelectric power project will comply with all the relevant environmental protection measures at all levels, The Citizen reported. “We are determined to make sure that all water sources in Morogoro, Iringa, Dodoma, Njombe, Mbeya and Ruvuma regions are well protected and sustained,” said Dr Gwamaka in Dar es Salaam. He further highlighted that the Stigler's Gorge hydroelectric project is vital in building a strong industrial economy, hence the need to develop it without affecting all sources of Rufiji River.

Source: ESI Africa


Dutch, Swiss and Kenyan institutions in a USD9-million deal in the solar energy sector in Uganda
Two institutional investors based in Switzerland (ResponsAbility) and the Netherlands (Oikocredit), led by SunFunder, a firm founded by a former US banker based in Kenya, provided additional financing of USD9-million to SolarNow, a specialist in off-grid solar installations in Uganda. The facility comes after a USD6-million first round brought by SunFunder and its two co-investors, ResponsAbility and Oikocredit, in October 2017. This new investment brings to USD19-million the total resources provided by SunFunder and its partners to the solar energy supplier based in Kampala. The resource will allow the energy company to finance its expansion with a focus on promoting women's and rural communities' access to the benefits of solar energy.

Source: Agence Ecofin


Uganda opts for public-private partnership to build USD1.5-billion highway
Uganda has opted for the USD1.5-billion public-private partnership (PPP) model for the construction and operation of a highway, the report said citing an official from the Uganda national roads Authority (UNRA). "The highway, which will span 95 km, will connect the capital Kampala to Jinja (East). It is the first road project that will be implemented as part of a PPP in Uganda, " said Patrick Muleme, the project design director at UNRA. Mr.Muleme also said that the private partner who will design, build and operate the road for 30 years will be selected by the end of 2019. "We expect this project to be awarded to one of the bidders. by the end of the year, "he said, noting that construction is expected to begin in 2020.

Source: Agence Ecofin

West Africa

IFC and West African Stock Exchange partner to strengthen corporate governance
The International Finance Corporation (IFC), a member of the World Bank Group, and West Africa Regional Stock Exchange, Bourse Régionale des Valeurs Mobilières, have signed an agreement to cooperate toward improving corporate governance practices of listed companies. Under the agreement, IFC will help Bourse Régionale des Valeurs Mobilières SA (BRVM) design, develop, draft and implement a Corporate Governance Code. Corporate governance practices among West African companies lag international standards. IFC and BRVM seek to provide market participants with a platform of governance principles and standards that would help them strengthen their practices in a progressive and sustainable way.

Source: African Business Communities

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