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Africa Business in Brief


25 Mar 2019


Japanese wind energy firm Eurus Energy invests in Windlab Africa

In order to promote wind power generation projects in the East Africa region with Windlab Limited, an Australian-based company that carries out wind analysis and the development of wind power projects, Eurus Group has contributed funding to Windlab’s subsidiary Windlab Africa Pty Ltd. Windlab Africa is currently developing 16 wind power projects in Ethiopia, Kenya, Tanzania, Zambia, Uganda, Rwanda, Burundi and Malawi, totalling 1,650MW, and from now will work on this in partnership with Eurus Group. Africa’s Sub-Saharan area already has a population exceeding 1 billion, and each country in the region is showing a remarkable GDP growth rate.

Source: Energy Mix Report

Capo Verde

Capo Verde Government wants to raise EUR500-million in financing

The Cape Verdean government intends to raise a minimum of EUR500-million with the first edition of the Cabo Verde Investment Forum (CVIF) next July on the island of Sal, the deputy prime minister and minister of Finance said in Praia. Olavo Correia, who spoke in the capital during the presentation of the event, said that entrepreneurs have to prepare, “as an idea is not a project, and the project has to meet the necessary conditions so that it can compete for funding,” according to Radio Morabeza. “The projects have to be well put together, they have to have a good capital structure, they have to have a market, and the respective promoters need a record of success,” the minister said.

Source: Macau Hub


Maroc Telecom and Millicom sign agreement for acquisition of Tigo Chad

Maroc Telecom has announced that it has signed an agreement with Millicom to acquire the entire share capital of its subsidiary Tigo Chad, the leading mobile operator in Chad. This acquisition, which is part of its international development strategy, aims to expand and consolidate the Maroc Telecom Group's presence in the region. The completion of the operation and its final agreement, are subject to certain conditions, in particular, the approval of the Chadian authorities.

Source: Africa Business Communities


AU celebrates Ethiopia's ratification of AfCFTA

Ethiopia’s parliament approved the membership of the country into the Africa Continental Free Trade Agreement (AfCFTA), bringing the number of ratifications across the continent to 21. The African Union (AU) Commissioner for Trade and Industry, Albert Muchanga took to Twitter to celebrate the news, describing the decision as timely and historic. While up to 44 African countries enacted the AfCFTA last year in Rwanda, 22 ratifications are required to effectively bring the agreement into force. Once in force AfCFTA will be the largest trade zone in the world, increase intra-African trade by 52% by the year 2022, remove tariffs on 90% of goods, liberalise services and tackle other barriers to intra-African trade, such as long delays at border posts.

Source: Africa News


Gabon Oil Company farms into BW Offshore’s Dussafu licence

BW Energy Gabon (‘BWE’), a subsidiary of BW Offshore and the operator of the Dussafu licence, has entered into an agreement with Gabon Oil Company (GOC) for the acquisition of a 10% interest in the Dussafu production sharing contract. The transaction is subject to the fulfilment of certain conditions precedents, including approval from the government of Gabon and entails payment by GOC of USD28.5-million, representing a reimbursement equivalent to 10% of development and production costs from April 2017 and to-date. GOC’s interest will be retroactive from the date of First Oil, being 16 September 2018, and GOC shall assume 10% of historical costs as authorised by the government of Gabon.

Source: Energy Mix Review


World Bank grants USD66-million to Gambia to help fix electricity transmission problems

The World Bank approved a USD66-million grant to the Gambia government to support the access grid and electricity transmissions in the rural setting of the country under the ECOWAS Regional Electricity Access Project. The project will increase power capacity and transmission network of the National Water and Electricity Company (Nawec) to scale up its transmission and distribution networks. Baba Fatajo, the Managing Director of Nawec said; “This huge project will increase our access from 48% to 65% power coverage and this is in line with our national development plan to have universal access by 2025.”

Source: Energy Mix Report


Ghana to get USD1-billion FDI from Turkey

Turkey has pledged to increase its Foreign Direct Investment (FDI) to Ghana from USD400-million to USD1-billion. The new Turkish Ambassador to Ghana, Ozlem Ergun Ulueren made this known in Accra when she paid a courtesy call on Information Minister, Kojo Oppong Nkrumah. Discussions during the brief meeting focused primarily on how to deepen the bilateral relationship between Ghana and Turkey. Mr. Oppong Nkrumah was mainly concerned about how Ghana could have what he described as an outbound trade relationship with Turkey moving forward. The Ambassador indicated that Turkish construction companies have invested about half a billion in Ghana and that there were ongoing Turkish projects in Ghana, including those in the energy sector.

Source: Ghana Web

Ghana and Guinea

Ghana and Guinea to cooperate on development of bauxite industry

Ghana and Guinea are set to begin discussions for bilateral cooperation in bauxite industry development, similar to the trade cooperation between Ghana and Ivory Coast in the Cocoa sector. In a brief interview with the media after the meeting, Vice President Bawumia indicated: “You know what we are trying to do in the extractives sector as far as bauxite is concerned is quite similar to Guinea but different in many perspectives. Guinea has the bauxite resources and they have the mine. We are trying to move up the value chain by not just doing mining but also refining. After refining, we have VALCO to smelter”.

Source: 3 News

Ivory Coast

Maiden drilling at Ivory Coast gold prospect identifies widespread mineralisation for Exore Resources

Perth-based Exore Resources has identified widespread insitu gold mineralisation during an aggressive exploration program at its Veronique gold prospect within the Bagoe project in northern Côte d’Ivoire. Initial results from aircore drilling at the large target highlighted a significant new discovery, with shallow intersections such as 12 metres at 3.63 grams per tonne gold, including 4m at 10.12g/t gold from 8m. Other results were 4m at 7.58g/t gold from 20m, 4m at 4.45g/t gold from 12m, and 4m at 3.31g/t gold from 16m. The assays were taken from five holes spaced 400m apart to test 1.6 kilometres of strike along the Veronique anomaly, estimated at 8km in length and 2km in width.

Source: Small Caps


Gemstone value addition centre set to open in Voi

Kenya will open a Sh50-million mineral centre in Voi, Taita Taveta to add value to gemstones before selling them abroad in raw form. Voi sub county commissioner Joseph Mtile said plans are at an advanced stage to open the centre that will transform the gemstone industry not only in Taita Taveta, but also in neighbouring counties like Makueni, Kitui and Kwale. This will set the stage for the government’s move to ban the export of uncut gemstones that had been set for 2018. Taita Taveta is endowed with various gemstones including Tsavorite, rubi, tourmaline, red garnets, green garnet, Tanzanite and iron ore.

Source: Business Daily


Devki to acquire West Pokot cement company

The Competition Authority of Kenya (CAK) has approved the acquisition of a West Pokot-based cement business Cemtech Limited by Simba Cement Limited in a move that is set to give the factory a lifeline after several failed attempts to start operations. The regulator gave Simba Cement, a subsidiary of the Devki Group of Companies, the go-ahead to buy 100% of the business and assets of Cemtech owned by Indian conglomerate Sanghi Group. Following the nod, Devki Group is set to acquire all its land, intellectual property, business records, equipment, goodwill, licences, stock and third party rights for an undisclosed amount of money.

Source: Business Daily


USD2.2-million committed for two solar projects in Kenya

InfraCo Africa has signed USD2.2-million convertible loan agreements with energy developer Gigawatt Global for the development of the Samburu Solar and Transmara Solar projects in Kenya. Each with a capacity of 10MWAC, the sister facilities will generate clean, reliable electricity in some of the poorest counties in the country. The financing committed by InfraCo Africa will enable these projects to complete development activities and secure the financing needed for construction. Both projects will be developed in partnership with Gigawatt Global, building from their experience in Rwanda.

Source: ESI Africa


OFID invests USD12-million in Mozambique fisheries project

OFID – the OPEC Fund for International Development – has signed a USD12-million loan agreement with Mozambique to co-finance a project aimed at strengthening artisanal and industrial fishing to boost food security and improve living standards. The loan will support the Angoche Fishing Port Project by financing the construction of port infrastructure in Mozambique’s Nampula Province. On completion, the project – which is co-financed by the Arab Bank for Economic Development in Africa and the government of Mozambique – will promote more competitive and sustainable trade, strengthen the fisheries value chain and facilitate exports.

Source: African Business Communities


AfDB, Portugal and Mozambique sign Lusophone compact to accelerate private sector development

The African Development Bank and the governments of Mozambique and Portugal have signed a Mozambique-specific Memorandum of Understanding for the implementation of the Lusophone Compact. The Lusophone Compact is a financing platform, involving the Bank, Portugal, Angola, Cabo Verde, Guinea Bissau, Equatorial Guinea Mozambique and Sao Tome and Principe, which provides risk mitigation, investment products and technical assistance to accelerate private sector development in Lusophone African countries. The signing which took place in Maputo, was witnessed by over 200 Mozambican and international entrepreneurs.

Source: Africa Business Communities


Mozambique’s insurers negotiate requirements to participate in natural gas projects

The requirements set out by foreign groups for the participation of Mozambican insurance companies in natural gas projects are being negotiated and may be revised, said the president of Mozambican insurance company Emose. Joaquim Langa said that the requirements “completely removed the possibility of participation of Mozambican insurers,” and added that Emose was already working with the Mozambican subsidiary of US group Anadarko Petroleum, “to find a solution that fits the reality of the country.” One of the problems focuses on reinsurance, “and the focus is for Mozambican companies, led by Emose, to take on 100% of the risk, a significant part of which will be passed on to re-insurers deemed by the foreign groups to meet requirements.”

Source: Macau Hub


Farmcrowdy closes on additional USD1-million seed funding

Farmcrowdy, Nigerian digital agriculture platform which allows Nigerians to invest in agriculture, has closed on additional seed funding of USD1-million. This follows the company’s initial investments of USD1-million in 2017. International investors Cox Enterprises and Techstars, along with local investor Ajayi Solutions have participated in the round as the startup prepares for an upcoming Series A fundraiser later in 2019. Farmcrowdy will use the investment to continue building their award-winning model, whilst expanding across Nigeria to cover 50% of all 36 states in the country over the next 12 months.

Source: Africa Business Communities


Nigeria to sell stakes in joint ventures with oil firms to boost revenue – Udo Udoma

Nigeria plans to cut its stake in joint oil ventures with multinational oil companies to 40% this year, its budget minister said, as the country seeks to boost revenue to grow an economy recovering from the recession. Oil companies including Royal Dutch Shell, Chevron and Exxon Mobil Corp., operate in Nigeria through joint ventures with the state-owned NNPC. NNPC owns 55% stake in its joint venture with Shell and 60% stakes with others. The government has considered reducing its majority stakes in these joint ventures for more than a decade but was under little pressure as higher oil prices boosted state coffers. Budgets under Muhammadu Buhari have been Nigeria’s largest ever and the government has been seeking to boost revenue after it emerged from a 2016 recession two years ago.

Source: Energy Mix Review


Nigerian Breweries pioneers 1st solar powered brewery in Africa

Nigerian Breweries Plc (NB) and CrossBoundary Energy announced the signing of Heineken’s first solar project in Africa. CrossBoundary Energy will be installing and operating a 650 kW solar plant located at NB’s Ibadan Brewery, which will be operational in 2019. The landmark project is the first of its kind for Nigeria – a fully-financed solar Power Purchase Agreement for a major Nigerian business customer. CrossBoundary Energy will operate the rooftop facility on behalf of Nigerian Breweries as part of a 15-year solar services agreement. Under the agreement, NB will only pay for solar power produced, receiving a single monthly bill that incorporates all maintenance, monitoring, insurance and financing costs.

Source: Energy Mix Report


Qatar deputy premier visits, to strengthen trade ties

The Governments of Rwanda and Qatar are on course to enhance trade relations in multiple sectors including agriculture, technology, mining and transport. The Qatar Deputy Prime Minister Sheikh Mohamed bin Abdulrahman Al Thani is in the country for a two-day visit with negotiations expected to part of the agenda. Al Thani, who is also the Minister of Foreign Affairs, arrived in the country and held talks with Rwanda’s high ranking government officials led by Foreign Affairs Minister Dr Richard Sezibera. One of the areas Qatar is interested in is aviation and may look into investing in the new Bugesera International Airport.

Source: The New Times

Rwanda, Kenya

Rwanda, Kenya senates sign cooperation MoU

Rwanda and Kenya senates signed a memorandum of understanding (MoU) following the visit by Ken Lusaka- the Senate Speaker, Republic of Kenya. According to Rwanda’s senate President Bernard Makuza, the MoU is a commitment to the important role they must play as legislators in complementarity with their governments to enhance bilateral relations. In expression to the commitment of deepening this relationship, Lusaka told the Rwandan senate that there is no better time than now to explore opportunities for inter-parliamentary cooperation between our parliaments.

Source: Taarifa


AfDB Multi-Partner Somalia Infrastructure Fund to receive EUR1-million from Italy

The Italian Government has signed an agreement for an additional EUR1-million contribution to the African Develpment Bank (AfDB) Multi-Partner Somalia Infrastructure Fund. Established by the Bank in October 2016, the Fund is one of the financing windows under the Somalia Development and Reconstruction Facility of the New Deal Compact for Somalia. It aims to support and accelerate Somalia’s inclusive and sustainable economic recovery, peace and state building, through rehabilitation and development of the country’s infrastructure. This will be Italy’s third injection of funds to the Bank-managed Fund, bringing its total contribution to date to EUR3.5-million.

Source: Africa Business Communities


DP World invests USD12-million to improve ops at Somaliland port

DP World Berbera has announced it has invested USD12-million to improve operations at the Port of Berbera in Somaliland. The Dubai-based port operator said it has commissioned the first mobile harbour cranes (MHCs) so the port will be able to offer shoreside crane support, substantially improving vessel operations. The investment on the three new cranes will double productivity at the port, significantly reducing vessel turn-around time and stabilising operations during monsoon season, DP World said in a statement. Suhail Al Banna, CEO and managing director of DP World Middle East and Africa, said: “The three mobile harbour cranes currently being commissioned are strategically important for the development of the Port of Berbera.

Source: Arabian Business


Tanzania, Qatar forge cooperation in investment on gas, mining and tourism

Tanzania and Qatar have pledged to build up cooperation in investments in gas, mining, tourism and infrastructure, the State House said. The two countries promised to strengthen their bilateral relations during talks between President John Magufuli and Qatari Deputy Prime Minister and Minister for Foreign Affairs, Mohammed bin Abdulrahman bin Jassim Al Thani, said a statement released by the Directorate of Presidential Communication. The statement issued by State House in the commercial capital Dar es Salaam said President Magufuli assured Qatar of Tanzania's determination to work closely with foreign investors. Tanzania has more than 57 trillion cubic feet of total estimated recoverable natural gas reserves.

Source: Xinhua Net


300MW wind farm on the cards for Tanzania

Japan’s wind energy developer Eurus Energy has acquired a share in Winlab Africa, a subsidiary of the Australian group Winlab Limited, with an investment of USD10-million. The money will be used to finance several projects, including the Miombo Hewani wind farm in southwest Tanzania. The development of this project will require a total investment of USD750-million, making it the largest wind power project in Tanzania. The Miombo Hewani wind project will be implemented in three phases of 100MW each. The first involves the installation of 34 wind turbines for an investment of USD250-million. This project also includes the construction of a high-voltage line for the transmission of energy from the park to the Makambako substation, where the energy will be fed into the national grid.

Source: ESI Africa


Ugandan government seeks Shs847-billion for stake in oil pipeline

Government through the Uganda National Oil Company (Unoc) will require between Shs578-billion and Shs847-billion to finance its equity stake in the proposed East African Crude Oil Pipeline (EACOP). The exact financing structure is still being worked out but sources familiar with the matter told Daily Monitor that if the ongoing negotiations agree to-debt-to equity ratios of 60:40, Unoc will have to mobilise Shs847-billion as its take; if the debt to equity ratios is 70:30, then Uganda’s financing will be in the ranges of about Shs578-billion. Unoc’s equity stake in the pipeline is equivalent to 15%, which government similarly carries in each of the 10 production licences so far issued for the oil fields.

Source: Energy Mining Mix


Bank of Zambia, FSD Africa and FSD Zambia partner for second phase of Credit Market Monitoring Programme

The Bank of Zambia has come together with its long-term partners, FSD Africa and FSD Zambia, to sign a Memorandum of Understanding for the implementation of the second phase of its Credit Market Monitoring Programme (CMMP). This is in recognition of the need for responsible credit market development and its overall contribution to Zambia’s economy. The CMMP, the first phase of which commenced in 2014 with the support of FSD Africa, is an initiative that is improving access to quality data and analysis on Zambia’s credit markets. Under the initiative, regulated credit providers submit supplemental quarterly returns on their loan book data to the central bank which is published, in aggregate, on the Bank of Zambia website.

Source: Africa Business Communities