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29 Apr 2019

Africa

AECF launches USD20-million solar fund for West Africa

The Africa Enterprise Challenge Fund (AECF) in partnership with United Kingdom Government has launched the Household Solar Round 2 competition worth USD20-million. The competition seeks to accelerate access to transformative solar home systems to the rural poor households in Ethiopia, Somalia, Ghana, Nigeria, and Senegal. “The increasing demand for electricity, high cost of power generation and limited supply of electricity to rural areas in sub-Saharan African is a narrative that constantly repeats its self across the continent,” said Dr Christian Rogg, Head of Office, DFID Ethiopia. In Ethiopia, approximately 11 million rural households do not have access to electricity, making the off-grid market attractive for the private sector.

Source: ESI Africa

Africa

AfDB signs USD50-million agreement with Natixis to boost trade finance in Africa

The African Development Bank (AfDB) signed a USD50-million risk participation agreement (APR) with investment and corporate bank Natixis. The 50/50 risk-sharing agreement covers a portfolio of commercial transactions totalling USD100-million, which will support commercial operations worth USD600-million in Africa over the next three years. "This historic agreement allows us not only to better support our clients in Africa but also to further strengthen the strategic relationship that we have the privilege of developing with the African Development Bank," said Marc Jaskowiak, Senior Banker representing Natixis, who signed the agreement. The RPA will meet the growing demand of African markets for trade finance in key economic sectors such as agribusiness, health, services and industry.

Source: ESI Africa

Africa

OPEC provides USD81-million to fund projects in four African countries

The Organization of the Petroleum Exporting Countries (OPEC) will provide USD81-million support to four African countries, the Emirates News Agency revealed. The new support will be provided to Burkina Faso, Ethiopia, Guinea and Malawi via the OPEC Fund for International Development (OFID). It will help develop the infrastructure and agriculture sectors as well as support poverty reduction activities. The first tranche of USD19-million will be provided to Burkina Faso for the renovation of 94-km Tougan-Ouahigouya road, thus improving the connection between production zones and the capital city Ouagadougou. It will also facilitate access to basic services for up to 250,000 residents.

Source: Ecofin Agency

Africa

Kasada Capital Management raises USD500-million for new hospitality fund dedicated to Sub Saharan Africa

Sub-Saharan hospitality investment platform Kasada Capital Management has reached a first close on its maiden fund Kasada Hospitality Fund LP with equity commitments of over USD500-million. This is in line with a first announcement disclosed in July 2018 by Katara Hospitality and Accor who are respectively contributing USD350-million and USD150-million. In a region which offers robust growth opportunities, the fund will target both greenfield and brownfield projects. The hospitality market is currently one of the most promising and yet underserviced sectors in Sub-Saharan Africa where growing economies and emerging middle class are creating high-growth markets that are left largely untapped.

Source: Africa Business Communities

Africa

ITFC announces more than USD880-million funding for African countries

The International Islamic Trade Finance Corporation (ITFC) announces new financing agreements of more than USD880-million with some African countries. These agreements will help provide public-private financing and capacity-building programs for export initiatives and for the development of SMEs. High growth industrial sectors (agriculture products, energy and medical supply) should be favoured. ITFC announces the signature of financing agreements of more than USD500-million with Afreximbank. These agreements will help strengthen the Arab-African Trade Finance and Promotion Program (AATFPP). Via the AATFPP, ITFC wants to boost trade cooperation between African and Arab countries and also promote economic integration between the two parties.

Source: Ecofin Agency

Botswana

AfDB extends USD80-million line of credit to boost Botswana's industrialisation and regional integration projects

The Board of Directors of the African Development Bank Group (AfDB) has approved an USD80-million line of credit to the Botswana Development Corporation Ltd, BDC, to help the country’s industrialisation and regional integration. The line of credit will be provided via the AfDb’s private sector window and will be used to finance local companies in Botswana's manufacturing, transport, logistics and services sectors. In total, the projects are expected to create between 2500 and 2800 jobs, including 1200 to 1300 for women, in particular in these sectors. The proposed projects will also support regional integration as most of these products and services are exported in the Southern African Development Community (SADC).

Source: Africa Business Communities

East Africa

KawiSafi raises USD70-million from Acumen to invest in energy projects in East Africa

Acumen, a non-profit organisation that invests philanthropic capital in companies and leaders tackling poverty, has announced an approximately USD70-million close of the for-profit fund, KawiSafi Ventures. KawiSafi aims to deliver clean, affordable energy to 10 million people, at least half of whom live in poverty, and displace more than one million tonnes of carbon dioxide in the next 10 years, to address energy poverty and help avert the current climate crisis. To date, KawiSafi has invested USD21-million to impact 4.3 million people and avert 360 thousand tonnes of carbon dioxide emissions. In Sub-Saharan Africa, more than 600 million people currently live without electricity and spend USD17-billion a year on dirty, inefficient energy.

Source: Africa Business Communities

Ethiopia

Ministry, KOICA sign USD7.5-million grant agreement to modernise trading system

The Ministry of Revenues and the Korea International Cooperation Agency (KOICA) signed a USD7.5-million grant agreement. The agreement was signed by Adanech Abiebie, Minister of Revenues and KOICA Ethiopia Country Director Kim Su Jin. According to the agreement, the grant will be used to modernise the trading system, develop the first phase of a one-stop shop online platform and for capacity building activities.

Source: FANA Broadcasting Corporation

Ethiopia

Ethiopia, China sign USD1.8-billion investment agreement

Ethiopia and China have signed a USD1.8 billion investment agreement which covers the provision of electric power transmission and distribution lines. The agreement was signed following Prime Minister Dr Abiy Ahmed’s meeting with State Grid Corporation of China, according to Office of the Prime Minister. PM Dr Abiy also oversaw the signing of the agreement in Beijing, China. The project will supply power for up to 16 industrial parks; the Addis Ababa to Djibouti 2nd railway line and for different cities in the country, the office added. The agreement will facilitate not only uninterrupted power supply but also enable the creation of jobs, it was noted. In a related development, the Prime Minister met with the leadership of the China Railway Construction Corporation (CRCC) in Beijing.

Source: FANA Broadcasting Corporation

Ivory Coast

Roxgold acquires gold exploration permits in Ivory Coast

Roxgold has completed its previously announced acquisition of 11 exploration permits in Ivory Coast from Newcrest West Africa Holdings. The acquisition, which includes the Séguéla gold project, is valued at USD20-million. Roxgold will pay an additional USD10-million in cash following gold production from any area within the acquired tenements. The total acquired prospective exploration permits encompass an area of 3,298km2. With near-term development potential, the flagship Séguéla project features the Antenna deposit hosting a mineral resource containing an inferred resource of 5.8Mt at 2.3 g/t Au for 430koz Au. Additionally, it includes several other satellite opportunities.

Source: Mining Technology

Kenya

Tatu City development completes its first solar installation

As part of a 30MW strategy for Tatu City real estate developer Rendeavour has installed its first solar power plant in Kenya. Tatu City is a 5,000-acre mixed-use development with homes, schools, offices, a shopping district, medical clinics, nature areas, a sport and entertainment complex, and a manufacturing area for more than 150,000 residents. The city's first solar power plant – installed on the roof of Dormans Coffee's global headquarters at Tatu Industrial Park – provides 1MW of electricity. Installation of the entire plant, including 15km of cables, took only six days to complete. The installation is in line with Rendeavour's long-term commitment to environmental conservation through harnessing renewable energy sources.

Source: ESI Africa

Mauritius

Saudi mining giant says to make first international acquisition

Saudi Arabia’s largest mining company, Ma’aden, will make its first international acquisition with the purchase of an African fertiliser distribution company. The deal for an 85% stake in the Mauritius-based Meridian Group is due to be completed by September for an undisclosed fee, the company said in a statement. Publicly-listed Saudi Arabian Mining Company, better known as Ma'aden, is seeking an all-cash deal that will provide one of the Middle East’s largest phosphate producers with 3,000 staff and a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe and Zambia. The Saudi global mining giant said it will secure the remaining 15% of Meridian’s equity over four years on agreed terms linked to the performance of the African company.

Source: Arabian Business

Mozambique

ExxonMobil signs 20-year LNG agreement with Zhejiang Energy

ExxonMobil that it signed a sales and purchase agreement with Zhejiang Provincial Energy Group for liquefied natural gas (LNG) supply. Under the agreement, Zhejiang Energy is expected to receive 1 million metric tonnes per annum of LNG over 20 years. “This sales and purchase agreement represents an important milestone and provides a solid foundation for our strategic partnership with Zhejiang Provincial Energy Group,” said Peter Clarke, senior vice president of LNG at ExxonMobil. “ExxonMobil shares Zhejiang Energy’s vision in developing a major LNG gateway in the Ningbo-Zhoushan region,” Clarke said.

Source: Club of Mozambique

Mozambique

Mozambican Zambe Invest to close financial agreement with Chinese counterpart

Zambe Invest, a company of Mozambican capitals, expects to conclude a financing agreement for the construction of a dam in the Licungo basin with a Chinese counterpart, Rádio Moçambique reports. The package under negotiation is worth USD1-billion. The dam is to be located in Mocuba district, in Zambézia province. The amount that Zambe Invest is negotiating with its Chinese counterpart will also fund projects in the future special economic and industrial free zone of Macuse, in Zambezia, and in other provinces of the country, reads the report. The information was provided by the Chairman of the Board of Directors of Zambe Invest, Almeida Tomás, who is in Beijing to attend the second “One Belt, One Road” International Cooperation Forum.

Source: Club of Mozambique

Mozambique

Mozambican Tmcel inks multi-million dollar deal with Huawei

The Mozambican publicly owned cellphone company Tmcel has agreed, with Chinese partners, to invest USD153-million in state-of-the-art technologies. An agreement signed in Beijing between Tmcel and the Chinese telecommunications giant Huawei, says that in an initial phase USD23-million will come from the Mozambican company’s own capital, resulting from the sale of assets that are not the main focus of its business. Sources in the Chinese capital told AIM that the terms of the agreement indicate that the project should begin “with the necessary urgency”. The project involves the renovation of communications technology at a national scale, with the implementation of further fibre-optic service, linking the north of the south of Mozambique and all the knots which connect neighbouring countries.

Source: Club of Mozambique

Namibia

Telecom Namibia launches services in Kavango West Region

Telecom Namibia has launched its services in various parts of the Kavango West Region. The telco has also unveiled a brand-new ultramodern store at Nkurenkuru’s Five Season Town Square mall, serving as a one-stop-shop for customers to experience new products and services. The new design store is in line with Telecom Namibia’s broader plan of redesigning its outlets for the improved retail presentation of its products and services while introducing new technologies and solutions that will boost the country’s telecommunications sector.

Source: Africa Business Communities

Nigeria

Waste management startup Wecyclers receives USD227,000 to scale its operations

Lagos based waste management startup Wecyclers has received the USD227,000 King Baudouin Foundation African Development Prize award to scale in Nigeria. The Prize will allow Wecyclers to develop further their business and increase their impact at national and international levels. WeCyclers’ model is designed to help fill this gap and reduce solid waste in the street of Lagos, improving both the environment and the wellbeing of populations. The startup uses low and high technology solutions to collect waste. The technology comprises SMS technology and a mobile application, as well as low-cost collection vehicles, which collect recyclable waste directly from households to sell to recycling plants before being made into new products.

Source: Africa Business Communities

Nigeria

Nigerian telcos to invest USD8.5-billion to bridge network gap

Nigerian mobile network operators are planning to invest USD8.5-billion in the next two years to bridge the telecommunication infrastructure gap in the country. The latest report by Global System for Mobile communication Association said this represented an increase of USD1.6-billion over the past two years. The GSMA Mobile Economy West Africa 2019 report had put the mobile Internet gap in the country at 30%, adding that 29% of the Nigerian population were mobile Internet users. The report said about 41% of the Nigerian population had access to mobile network broadband but didn’t subscribe to mobile Internet services. In the report, Nigeria was named among the four countries in West Africa that scored higher than the sub-Saharan Africa average index score in the Mobile Connectivity Index.

Source: Punch Nigeria

Rwanda

Rwanda, Netherlands seek deeper ties with focus on private sector

Rwanda and the Kingdom of Netherlands are seeking to strengthen bilateral ties, with special focus on public-private partnerships. The Dutch Ambassador to Rwanda, Frédérique de Man, announced that even though the embassy will be phasing out their bilateral development programme in Rwanda by 2022, the embassy will not be closing as it looks forward to other public-private partnerships in various sectors. The Netherlands has over the years been supporting Rwanda in integrated water resource management, agriculture and horticulture, the justice sector and civil society, while several Dutch companies have their presence in Rwanda.

Source: The New Times

Rwanda

African Legal Support Facility supports USD200-million energy plant in Rwanda

The African Legal Support Facility has provided advisory services support to the Government of Rwanda for the negotiation of its deal with Symbion Power to develop a USD200-million-dollar energy plant by Lake Kivu in Rwanda. The energy plant is expected to generate an additional 56 MW of electricity for Rwanda, marking a significant step in Rwanda’s efforts to increase its installed power generation capacity by 291MW to 512MW by 2024. The plant will extract methane gas from the production area at Lake Kivu and use it to produce electricity. The Symbion Power project is part of a larger ALSF project providing assistance to Rwanda’s Ministry of Infrastructure (Rwanda MININFRA project), including support for the Nyabarongo II project, which will have a 43.5 MW generation capacity and will increase overall installed capacity by 11.5%.

Source: Africa Business Communities

South Sudan

Afreximbank provides USD500-million for development projects

Afreximbank announced that it would provide USD500-million to South Sudan for energy transmissions, infrastructures and agriculture projects. In the past two years, the bank has provided USD200-million to the country to boost its economy. After years of civil war, South Sudan is trying to find solutions to its economic and political crisis. In September 2018, the country’s president Salva Kiir and his rival Riek Machar reached an agreement that brought hopes of a way out of the crisis. “We want to help South Sudan make the investments it needs to develop…We are seeing a country beginning to rise from the ashes and offering opportunities to its people. Afreximbank will support those who want to go to South Sudan,” said Afreximbank’s president Benedict Oramah, according to statements quoted by Reuters.

Source: Ecofin Agency

Sudan

The UAE and Saudia Arabia announce USD3-billion support for Sudan

The United Arab Emirates and Saudi Arabia announced that they would provide USD3-billion to Sudan. This financial support is aimed at helping the east African country find solutions to the economic crisis it is going through. It consists of a USD500-million deposit in the Central Bank of Sudan to alleviate pressures on the Sudanese Pound. The remaining fund will be used to cover various needs for food, drugs and fuel. Far from appeasing the social tension, the downfall of president Omar el-Béchir (deposed days ago) exacerbated the social protests demanding a civilian government. With this financial support, the two Gulf countries are trying to restore political stability in a country which has always been one of their traditional allies, in the Yemeni war notably.

Source: Ecofin Agency

Tanzania

Tanzania makes USD310-million advance payment for dam on heritage site

Tanzania made an advance payment of USD310-million to a joint venture of Egyptian companies for the construction of a hydropower dam on a UNESCO World Heritage site, despite strong opposition to the project from conservationists. Tanzania signed a deal with two Egyptian companies, Arab Contractors and El Sewedy Electric Co, to build the USD3-billion Rufiji hydroelectric project at Stiegler’s gorge inside the Selous Game Reserve. The Permanent Secretary of Tanzania’s Finance and Planning Ministry, Doto James, who is also the government’s paymaster general, issued the advance payment to a representative of the Egyptian companies.

Source: Reuters

Tanzania

Tanzania to ramp up energy generation efforts by 2025

Tanzania's deputy energy minister Subira Mgalu told Parliament that the country aims to have six times its current power generation capacity by 2025 through investment in thermal and renewable energy. Reuters reported that the country boasts reserves of over 57-trillion cubic feet of natural gas, but faces periodic power shortages. Mgalu said: "Implementation of various power generation projects will increase the capacity of our national power grid from 1,602MW presently to 10,000MW by 2025." The 300MW Miombo Hewani wind project was announced, which once completed will generate enough to power a million people, mainly in the city of Makambako.

Source: ESI Africa

Uganda

Banks to leverage on agent banking to improve penetration

Uganda Bankers Association (UBA) and the International Finance Corporation (IFC) have signed USD1.9-million agreement that seeks to increase financial inclusion through agent banking. The agreement, which was signed in Kampala will leverage on agent banking to deepen financial inclusion, a key growth aspect in a relatively unbanked Uganda. Uganda, according to data from the Bank of Uganda has slightly above five million accounts, which indicates that a number of people are locked out of the banking sector. However, the advent of agent banking has seen tremendous growth in terms of penetration with the banking sector recording at least 8,805 agents across the divide, according to UBA.

Source: Daily Monitor