issue: 290 | 4 February 2019


The IMF revises Sub Saharan countries’ 2019 and 2020 growth downward

The International Monetary Fund (IMF) announced that the economy of Sub Saharan countries should rise from 2.9% in 2018 to 3.5% and 3.6% in 2019 and 2020 respectively. These two figures are 0.3 points below the forecast published in October 2018 due to the drop in oil prices that prompted a downward revision for Angola and Nigeria. In its report on the world outlook, the institution indicated that the economy of more than a third of Sub Saharan countries should grow by more than 5% in 2019 and 2020. It also reduced the 2019 forecasts for the world economy. It expects it to grow by 3.5% this year, a figure 0.2 points below the October 2018 forecasts that had also been revised downward.

Source: Ecofin Agency


Eastern, southern Africa power line interconnector: coming next year

June 2020 has been set as the deadline for completion of the power line interconnector project which will link the Eastern Africa Power Pool (EAPP) and Southern Africa Power Pool (SAPP). Electricity interconnector project manager, engineer Peter Kigadye made the announcement, reports Tanzania Daily News. Kigadye noted that upon completion of the project, Tanzania will be able to sell electricity to neighbouring countries. “Likewise, the country will be able to purchase electricity from its neighbouring countries in case of the power crisis in the country," he told the Project Manager while briefing the Tanzania Electric Supply Company (Tanesco) board of directors at Zuzu Power Substation.

Source: ESI Africa


AfreximBank supports Orascom Investment Holdings’ expansion with a USD170-million loan

Orascom Investment Holdings, the telecommunications group controlled by the Sawaris (51.1% of the shares), has finalised the obtention of a USD170-million loan from AfreximBank. The fund will help it expand to Rwanda, Togo, Nigeria, Eritrea as well as in Sao Tome and Principe. In these countries, Orascom Investment Holdings will seek business and investment opportunities. AfreximBank committed itself to the support of intra-African trade expertise. It supports many projects but, it hesitates to support some investment leaders on the continent. Some of the billionaires supported by the bank are Dangote and Tony Elumelu.

Source: Ecofin Agency


Italy to contribute EUR5.8-million to three new UNIDO projects in Africa and the MENA region
The Director-General Giorgio Marrapodi of the Italian Ministry of Foreign Affairs and International Cooperation signed EUR5.8-million for projects in Mozambique, Tunisia and MENA regions with the Director General of the United Nations Industrial Development Organization (UNIDO), LI Yong in the presence of representatives of the recipient countries. EUR4.5-million will facilitate the Mozambique and Tunisia projects, whereas EUR1.3-million will facilitate the second phase of a project to be implemented in the MENA region. Two projects, in Mozambique and the MENA region, promote value chain development in agro-industries, where UNIDO has a unique competitive advantage. and other agricultural produce.

Source: Africa Business Communities


World Bank Group and Germany launch collaboration on Africa development projects

The World Bank Group and the German Federal Ministry for Economic Cooperation and Development (BMZ) have announced a deeper partnership for economic development in six countries in Africa. BMZ will provide significant additional financial support through the partnership, which will harness World Bank Group expertise on the ground in order to catalyse investment, job creation and sustainable economic growth. The partnership flows from a Joint Declaration of Intent between BMZ and the Bank Group. It sets out parameters for joint action in Morocco and Tunisia in North Africa, and Côte d’Ivoire, Ethiopia, Ghana, and Senegal in Sub-Saharan Africa.

Source: Africa Business Communities


Angolan consortium starts mining gold deposits in Bengo province

A project to mine gold deposits in the municipality of Nambuangongo, in Angola’s Bengo province, is expected to start operating in August, with an annual production of 450 kilograms of gold expected, according to the chief executive of Angola’s national iron company Empresa Nacional de Ferro de Angola (Ferrangol). João Paulino Júlio Chimuco, presenting the project to the Minister of Mineral Resources and Oil, Diamantino Azevedo, who visited the province, said that initially 90,000 tonnes of ore will be processed, a figure previously determined through collection and analysis that showed the deposits contain an average of five grams of gold per tonne.

Source: Macau Hub


Benin secures loan of FCFA10-billion for drinking water project

The government of Benin and the Kuwaiti Fund for Arab Economic Development signed a FCFA10-billion loan agreement meant for financing a project to strengthen drinking water supply systems in the cities of Boukoumbe (North), Cove and Zagnanado (Center). The loan deal, according to the minister of Water and Mines, Samou Adambi, complements the efforts to complete all the funding necessary for realising the project aimed at improving drinking water supply systems with a view to ensuring universal access to it by 2021. Through the loan, the Kuwaiti Fund is looking to maintain a progressive partnership with the Beninese government in meeting its objectives, including universal access to drinking water by 2021, said Hisham Al-Waqiyan, the Deputy Managing Director of the Kuwaiti Fund.

Source: Political Analysis


Giyani signs USD1-million convertible loan facility and marketing agreement with Traxys

Canadian exploration company Giyani Metals Corp has entered into a non-binding term sheet with Traxys Africa Trading (Pty) Ltd which sets out terms for an investment of USD1-million in the form of a secured convertible loan facility under which Traxys will have exclusive rights to market all of the direct shipping ore manganese material processed and produced from the Company’s K.Hill and Otse reclamation projects in Botswana. Robin Birchall, CEO of the Company said. “We are very excited to be partnering with a global leader in metals marketing and trading like Traxys. These terms underline the shared vision we have with Traxys in terms of the importance and market potential of battery-grade manganese.

Source: Africa Business Communities


MIGA backs clean power developments in Cameroon
MIGA, a member of the World Bank Group, has issued EUR164.5-million in guarantees to two investors in the Nachtigal Hydropower Company. The Agency has provided Breach of Contract cover for up to 15 years to French power developer and operator EDF International, as well as STOA, a French infrastructure investment vehicle that focuses primarily on Africa. MIGA guarantees have been provided alongside payment and loan guarantees from the International Bank for Reconstruction and Development, and an investment, loan and risk management swaps by IFC. The Nachtigal Hydropower Project is a 420MW hydropower plant on the Sanaga River, about 65km north-east of Yaounde, and will contribute an additional 30% of installed generation capacity in Cameroon, along with significant climate co-benefits.

Source: ESI Africa

Cape Verde

Cabo Verde government takes over biggest bank

The government of Cabo Verde has taken a majority stake in the country’s largest bank, Caixa Económica de Cabo Verde (CECV), and the company that was previously its largest shareholder has sold its entire holding. State-owned Instituto Nacional de Previdência Social purchased the 12.5 % stake owned by private insurance company Impar. With the 32% it already owned, that took its stake to 44.5 %. State-owned Correios also has a stake of 15%. This takes to the government’s total share to 59.5%. Previously, the largest shareholder was Geocapital. Following the government’s move, it decided to sell its 27% stake to Enrique Banuelos de Castro, a Spanish shareholder of International Holding Cabo Verde, in a transaction outside the capital market that had already been approved by the Bank of Cabo Verde.

Source: CL Brief


Volkswagen signs agreement with Ethiopia government to develop automotive industry in the country

International car manufacturer Volkswagen has signed a Memorandum of Understanding (MoU) with the Government of Ethiopia to collaborate and deliver a joint vision for the development of an automotive industry in the country. The signing of the MoU paves way for Volkswagen and the Ethiopian Government to commence high-level and technical collaboration which is integral to the development of an automotive industry and policy framework. The MoU identifies four key pillars as important for the development of the Ethiopian automotive industry. These include the establishment of a vehicle assembly facility, localisation of automotive components, introduction of mobility concepts such as app-based car sharing and ride-hailing as well as the opening of local skills development training centre.

Source: Africa Business Communities


UAE industrial giant sees milestone in USD1.4-billion Guinea mining project

Emirates Global Aluminium (EGA) has announced a milestone at its under-construction Guinea bauxite mining project as the first loaded train travelled from its subsidiary Guinea Alumina Corporation’s (GAC) mine to the coast. The 80-wagon train carried some 6,800 tonnes of bauxite ore from GAC’s mine to the company’s facilities at Kamsar in Guinea. The ore will be used to begin building a base-layer of bauxite at GAC’s new stockyard. First bauxite exports are expected during the second half of 2019. GAC has a total budgeted project cost of approximately USD1.4-billion and is the largest greenfield investment in Guinea in the last four decades. 

Source: Arabian Business


Adenia Partners announces the acquisition of Kenyan retail chain Tumaini Self Service Ltd

Adenia Partners announced that it has finalised the acquisition of Tumaini Self Service Ltd, a retail chain in Kenya. “We were attracted to Tumaini as an investment because the Company’s stores offer an affordable product offering at convenient locations that complement customers’ busy lifestyles. We look forward to partnering with a strong management team that will leverage Adenia’s expertise in strategic and operational improvements”, informed Ms Moses Nditika, one of Adenia’s partners. For the operation, the Private equity firm, founded in 2002 and represented in five African countries apart from its headquarters which is Mauritius, has set a special investment vehicle called Sokoni Retail Kenya Ltd.

Source: Ecofin Agency


Medco pays Sh51.7-billion for Lamu oil explorer

Indonesian oil giant Medco Energi has struck a Sh51.7-billion deal to buy London-listed Ophir Energy, which announced the sale of its Kenyan oil and gas exploration interests almost three years ago. The firms said the agreement was for the purchase of all the shares of Ophir Energy in an arrangement expected to be sanctioned by a court of law. Medco is listed on the Jakarta Stock Exchange. Medco had up to January 28 to make an offer, which was done before the official announcement. Ophir sought to sell its oil exploration investments in Lamu County at Block L9, after writing off a loss of Sh6.3-billion it had incurred in the process of searching for hydrocarbons.

Source: Business Daily


NIC, Commercial Bank of Africa finalise merger plan
NIC Group PLC and Commercial Bank of Africa Limited, CBA board directors have agreed to the merger of NIC and CBA. The merger will be completed upon fulfilment of a certain set of conditions precedent, customary to transactions of this nature, including but not limited to, the parties obtaining applicable shareholder and regulatory approvals, and the parties entering into and completing various transactional agreements to complete the merger. The proposed merger will create a bank with the financial strength, expertise, and regional reach to support Kenya’s and the regions’ economic growth aspirations. The combined bank will be amongst the largest financial institutions in the East Africa region with a total asset base in excess of KES444-billion and shareholders’ equity of KES65-billion.

Source: Africa Business Communities


Mozambique merges TdM and MCel to create new telecom company

Mozambique has just created an incumbent telecommunications firm baptised Mozambique Telecom. This telecom firm is the result of the merger of state-owned firms Telecomunicações de Moçambique (TdM) and Moçambique Celular (MCel), decided during the ministerial council of July 26, 2016, following financial problems experienced by those two companies. Those problems were revealed in 2015 by the prime minister Carlos Agostinho Rosário during a visit to the two companies. At the time, TdM needed USD500-million to solve its problems. In addition, the local media A Verdade indicated that up to 2016, Moçambique Celular had a net debt of MT12.8-billion, out of which MT5.1-billion was owed to suppliers and MT3.8-billion to national as well as foreign banks.

Source: Ecofin Agency


Coca-Cola completes acquisition of Chi Limited in Nigeria

Global beverage company Coca-Cola Company has completed its acquisition of Chi Ltd. in Nigeria. Coca-Cola first announced a minority investment in Chi three years ago and, as planned, has now acquired full ownership of the company. Chi is recognized in West Africa as an innovative, fast-growing leader in expanding beverage categories, including juices, value-added dairy and iced tea. The company, founded in Lagos, Nigeria, in 1980, produces juice under the Chivita brand and value-added dairy under the Hollandia brand, among many other products. Coca-Cola acquired a 40% stake in Chi in 2016 from Tropical General Investments Group, the holding company for Chi Ltd. Juices and value-added dairy categories rank among the fastest-growing beverage segments in Nigeria and Africa.

Source: Africa Business Community


Six large firms to build 19 roads in the framework of a PPP
In Nigeria, six large firms will finance the construction of new roads, the Global Construction Review indicated. The new project, part of a public-private partnership (PPP) initiated by the country’s president Muhammadu Buhari, should help build 19 new roads, of 794 km long in total, in eleven states. Dangote Industries Limited, Lafarge Africa Plc, Unilever Nigeria Plc, Flour Mills of Nigeria Plc, Nigeria LNG Limited as well as the China Road and Bridge Corporation Nigeria Limited would be the main investors in this project. In return, the government would offer tax incentives. The road construction program is structured through the 2019 budget of more than USD28-billion resolutely focused on the infrastructures sector to reduce Nigeria’s dependency on the oil sector.

Source: Ecofin Agency


Mining gets investment boost of USD18.3-million

Eight mining firms are set to invest over USD18.3-million, in a move expected to boost professionalism in a sector which is grappling with accusations of poor working conditions for miners. The firms received the cabinet nod for 25 mining and quarrying licenses. The firms which received approval will be involved in exploration, large scale mining, small scale mining and quarrying. Piran Rwanda Ltd, a mining company from the UK, was granted two exploration licenses for four years. The firm will be involved in the exploration of cassiterite, Coltan and Wolfram in Rwamagana District. The firm has pledged an investment of USD0.6-million for exploration. Ngali Mining Ltd received three large scale mining licenses for exploitation of gold in Karongi District in a total area of 1200ha.

Source: The New Times


Togo gets FCFA12-billion from Kuwait Fund KFAED, for a drinking water project in Kara
The Kuwait Fund for Arab Economic Development (KFAED) just provided Togo FCFA12-billion financing for its drinking water supply project in Kara (414km north of Lomé) and its surroundings. The related signing ceremony took place on January 31, 2019, in the presence of Sani Yaya, Togo’s minister of economy and finances, and Nedhal A. Al-Olayan, Managing Director of KFAED. The concerned project aims at meeting the needs of the people of Kara and improving their living standards. In the long run, it should help mobilize 10,000 m3/day from close sources and bring daily supply capacity from 7,500 m3 to 17,500 m3, the minister indicated.

Source: Togo First

Sierra Leone

K3 Telecom launches its operations in Sierra Leone

Telecom operator K3 Telecom, a subsidiary of the Swiss group K3 Telecom AG has launched its operations in Sierra Leone. This marks the official start of the ISP with triple-play services in Freetown, on its own wireless broadband network. Mohammed Nasrallah, chief executive officer of K3 Telecom Sierra Leone, explained that the company has opted for wireless because deploying a cable that connects each home and that offers broadband Internet, TV services and IP telephony, is very expensive in terms of time and money in developing markets that express a strong need for connectivity services. He said even though Freetown will be the starting point of their operation, the company has plans to expand it to other parts of the country in the coming months.

Source: Africa Business Communities

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