This website uses cookies to ensure you get the best experience. If you continue to use this site without changing your cookie settings we assume you consent to the use of cookies on this site.

find an article

African regulatory and business intelligence | issue 308 | 11 Jun 2019

Africa Business in Brief

African regulatory and business intelligence


Madagascar

Tirupati Graphite commences production at Madagascar plant

Tirupati Graphite, the flake-graphite company with primary mining and processing projects in Madagascar and downstream processing projects in India, has announced the commissioning of a 3,000 tpa plant at the Sahamamy Project.
This the first of six planned flake-graphite production plant modules to be built in Madagascar. This is a major milestone in the Tirupati Graphite’s development as it rolls out the first production and looks to build its operations to an integrated graphite mining, production and processing company. This is a major milestone in the Tirupati Graphite’s development as it rolls out the first production and looks to build its operations to an integrated graphite mining, production and processing company.

Source: Mining Review Africa

Africa

AfDB provides EUR100-million partial guarantee for commercial agriculture in Africa

The Board of Directors of the African Development Bank (AfDB), meeting in Abidjan approved a EUR100-million partial credit guarantee (PCG) to the structured finance company, African Agriculture Impact Investments Ltd (Mauritius), to develop commercial agriculture in Africa. The Mauritius-based company will leverage the Bank's PCG to catalyse additional financing from international pension funds through an Agri-linked Note to facilitate investments in sustainable farmland and agricultural infrastructure across Africa. It will be authorised to operate in various African countries through a special purpose entity that will include two other active portfolios worth EUR62.5-million.

Source: Africa Business Communities

Africa

Mondelēz International completes sale of cheese business in Africa and Middle East to Arla Foods

Mondelēz International, Inc. has completed the sale of its Kraft-branded Cheese business in Middle East and Africa (MEA) to Arla Foods of Denmark. All Kraft-branded Cheese products in the MEA markets, as well as a Cheese manufacturing site in Bahrain, are part of this agreement. The transaction enables Mondelēz International to focus on faster-growing snacks categories, including Chocolate, Biscuits, Powdered Beverages and Gum & Candy offerings. The cream cheese brand Philadelphia and Jocca Cottage Cheese are not included in the deal and remain under the ownership of Mondelēz International.


Source: Africa Business Communities

Angola

Angola launches 10 oil blocks in the Namibe and Benguela Basins

Angola made another stride in becoming Africa’s hottest oil and gas frontier by launching the first phase of its brand new six-year oil licensing strategy. The licensing round was launched by CEO of the National Agency of Petroleum, Gas and Biofuels (ANPG) H.E. Paulino Jerónimo during the opening ceremony of the Angola Oil & Gas Conference 2019. It covers a total of 10 blocks, including Blocks 11, 12, 13, 27, 28, 29, 41, 42 and 43 in the Namibe Basin, and Block 10 in the Benguela Basin. This is the first public auction in Angola since the pre-salt layer blocks auction of 2011, and the first of a series of licensing rounds that will see as many as 55 blocks put up for public bidding or direct negotiations until 2025.

Source: Africa Business Communities

Angola

ExxonMobil, partners to redevelop Angola Block 15 to increase production

ExxonMobil and its partners said they will further invest in Block 15 offshore Angola to increase production as part of an agreement with Angola’s recently established National Agency for Petroleum, Gas and Biofuels. As part of the agreement, Sonangol, Angola’s state oil company, will receive a 10% equity interest. “This renewed collaboration will enable Angola to optimise recovery and add production from mature fields,” said Hunter Farris, senior vice president of ExxonMobil Upstream Oil & Gas Company. As the operator, ExxonMobil will complete a multi-year drilling program in the block and install new infrastructure technology to increase the capacity of existing subsea flow lines. The project will generate about 1,000 local jobs during the execution phase and will produce approximately 40,000 additional barrels of oil per day once online.


Source: Africa Business Communities

Angola

SPIE gets new contract from Cabinda Gulf Oil Company Ltd in Angola

Cabinda Gulf Oil Company Limited, a subsidiary of the Chevron oil company, has awarded SPIE Oil & Gas Services, a subsidiary of SPIE, an independent European leader in multi-technology services in the energy sectors. communications, the provision of services on the onshore and offshore sites of oil blocks 0 and 14, located in the far north of Angola (Cabinda province). A strategic contract for SPIE Oil & Gas Services, enabling it to enter into a key partnership with a major oil player and to explore other opportunities for development and implementation in the region.

Source: Energy Mix Report

Angola

Eni, Sonangol to form renewables JV in Angola

Eni and Sonangol signed in Luanda the Heads of Agreement for the incorporation of Solenova Ltd, a joint controlled company set up to assess and develop renewable energy opportunities in Angola. The creation of this new company is consistent with the country’s energy strategy that establishes a target of 800 MW of installed renewable capacity by 2025, with a specific focus on utility-scale solar projects. The first business opportunity jointly identified in the renewable energy sector consists in the phased development of a 50 MWp photovoltaic plant in the Southern part of the country, which currently relies mainly on diesel thermal plants for electricity production.

Source: Energy Mix Report

Cameroon

Oriole Resources confirms gold potential in Cameroon

AIM-listed gold and base metals explorer Oriole Resources has defined significant gold anomalism during the Phase 2 soils programme at the Wapouzé project in Cameroon, where it is earning up to a 90% interest. The Wapouzé gold project is held by Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL (BEIG3), through its wholly-owned subsidiaries Reservoir Minerals (BVI) Cameroon and Reservoir Minerals Cameroon Sarl. The Phase 2 infill soil sampling at the Bataol Zone has returned up to 210 parts per billion (ppb) gold, providing support for the multiple >10 ppb gold-in-soil anomalies identified during the Phase 1 programme and defining more clearly the zones of higher-grade mineralisation within those anomalies.

Source: Mining Review Africa

Djibouti

Rome Research awarded USD8-million contract for installation of telecommunication infrastructure in Djibouti

Global provider of software, systems, and service solutions PAR Technology Corporation has announced that its subsidiary, Rome Research Corporation (RRC), has been awarded a 5-year, USD8.3-million prime contract to provide engineering and installation of critical telecommunications infrastructure at Camp Lemonnier, Djibouti (CLDJ). Camp Lemonnier is the primary U.S. Navy base for all operations in the Horn of Africa region. Commenting on the award, Matt Cicchinelli, President of PAR’s Government Business, stated, “We are proud to continue our support of NCTAMS LANT Detachment Djibouti (NCTL-DJ) mission requirements in support of Combined Joint Task Force-Horn of Africa (CJTF-HOA).

Source: Africa Business Communities

Eswatini

Afreximbank to provide USD140-million credit facility to Eswatini to fund strategic economic goals

The African Export-Import Bank (Afreximbank) will provide a credit facility valued at up to two billion Rands, about USD140-million, to the Kingdom of Eswatini to enable the Kingdom to achieve required funding to meet trade and strategic economic goals, Bank President Prof. Benedict Oramah, has announced in Mbabane. Prof. Oramah, who was addressing King Mswati III of the Kingdom of Eswatini when he led an Afreximbank delegation to visit the King during a two-day state visit to the Kingdom, was briefing him on a joint declaration which Afreximbank signed with officials of the Kingdom. He said that the facility would also enable the Kingdom to leverage its future financial flows as a tool for economic development.

Source: Africa Business Communities

Ethiopia

Altau Resources granted Zager exploration licence in Ethiopia

Multi-listed Altus Strategies has announced that its 100% owned Ethiopian subsidiary, Altau Resources, has been granted the Zager exploration licence, targeting VMS hosted copper and gold deposits in the Tigray National Regional State of northern Ethiopia. “The grant of Zager increases our strategic exploration holdings across the highly prospective Arabian Nubian Shield of northern Ethiopia to over 877km2,” says Altus CEO, Steve Poulton. “Altus selected the licence based on our in-house remote sensing study, which included an extensive review of historical geological data. These highlighted Zager’s geological prospectivity and identified numerous artisanal alluvial gold workings."

Source: Mining Review Africa

Ethiopia

KEFI gets final consent for Tulu Kapi gold project

KEFI Minerals has received the last federal government consent for the financing and development of its Tulu Kapi Gold Project from the National Bank of Ethiopia. The National Bank of Ethiopia has now provided its formal approval of the terms of the proposed full Project finance package. KEFI and Tulu Kapi Gold Mines Share Company (TKGM) Chairman, Harry Anagnostaras-Adams, says: "KEFI would like to express its appreciation of the enormous efforts by the Ministry of Finance, the Ethiopian central bank and other authorities to establish regulatory frameworks to oversee and support policies and actions being dealt with for the first time, as the Tulu Kapi Gold Project is the first-mover in modern Ethiopian mining.

Source: Mining Review Africa

Ethiopia

Chinese Huajian Group to invest USD100-million in shoe manufacturing and coffee processing

Chinese group Huajian Group signed an agreement with Ethiopian authorities, for the management of Jimma industrial park. In the framework of that agreement, the Chinese group will invest USD100million in the construction of shoe manufacturing and coffee processing plants. It will also help attract other Chinese groups in this 75-hectare park. Lelise Neme, managing director of the Ethiopia Industrial Parks Development Corporation, indicated that Jimma park would create 15,000 jobs in the long term. Built by the China Communications Construction Company, Jimma industrial park was inaugurated in December 2018 by Ethiopian prime minister Abiy Ahmed.

Source: Ecofin Agency

Ghana

GOIL to build biggest bitumen plant in West Africa

Goil Company Ltd says it is on course to complete the construction of one of West Africa’s biggest bitumen processing plant in Tema. The about USD25-million plant expected to deliver quality bitumen for road construction in the sub-region is a partnership between the company and its Ivorian counterparts. Besides the bitumen plant, the company has disclosed that it has begun the establishment of a gas plant for the cylinder re-circulation model in the country and looking forward to partner some banks to fund the projects. The engineering, procurement and construction company Sterling along with Wilson Solar are commencing with civil and electrical construction works.

Source: My Joy Online

Ghana/Sierra Leone

Local governments of Ghana and Sierra Leone sign MoU to deepen cooperation

To strengthen the relationship, and bring about a number of mutual benefits, a Memorandum of Understanding (MoU) has been signed by the National Association of Local Authorities of Ghana (NALAG) and the Local Council Association of Sierra Leone (LoCASL). The two, longstanding members of CLGF signed the MoU at NALAG House in Accra, Ghana at a short ceremony which brought together a number of key stakeholders and partners of NALAG and LoCASL to witness the event. The purpose of the MoU is to provide the two West Africa associations with a national framework and the terms of reference for closer cooperation and engagement. The areas of cooperation covered in the MoU include:

Source: Africa Business Communities

Ivory Coast

IronRidge completes due diligence at Ivory Coast project

IronRidge Resources has completed due diligence over the Zaranou Gold Project and that the Joint Venture Agreement with a GeoServices Côte d’Ivoire SA and Atlas Resources is now unconditional. Commenting on the IronRidge Resources' progress, Vincent Mascolo, CEO & MD of says: “We are very pleased that due diligence has been successfully completed; with the Joint Venture Agreement between IronRidge and Geoservices now ratified. “In an effort to expedite the project we have already secured high-resolution satellite imagery which has successfully defined 40 km strike of artisanal mining sites and helped define high-priority target areas ahead of fieldwork commencing.

Source: Mining Review Africa

Kenya

Azuri Technologies raises USD26-million to expand to new African markets

Azuri Technologies has raised USD26-million led by Japan’s Marubeni Corporation with additional participation from existing shareholders, including IP Group Plc. The pay-as-you-go solar solutions firm says it will use the funds to accelerate its growth plans in both East and West Africa and open up new opportunities for the business. Azuri will also use the funds to roll-out its solar lighting, TV and additional services into the new markets. The company has been investing in solar energy businesses for over 20 years. Since 2012, Azuri has been providing affordable pay-as-you-go solar home solutions to off-grid households across sub-Saharan Africa, with offices in Nigeria, Kenya, Tanzania, Uganda and Zambia.

Source: Africa Business Communities

Kenya

First utility-scale IPP solar project achieves financial close

The 40MWAC (52MWp) Malindi Solar project in Malindi, Kenya has reached financial close and is now ready to commence with construction. Project developer, Globeleq, a power sector leader in Africa, has advised that the electricity will be sold through a 20-year agreement with the national distribution company, Kenya Power. The USD69-million solar photovoltaic project is located in Langobaya, Malindi District, Kilifi County, about 120km north-east of Mombasa and is one of the first IPP owned utility-scale solar power plants in Kenya to begin construction. Globeleq has been working with the project originator, Africa Energy Development Corporation (AEDC), who will retain 10% ownership of the project, and its partner, IDEA Power, to bring the project to construction by providing equity, project development and construction management experience.


Source: ESI Africa

Madagascar

French consortium to develop Madagascar’s biggest ever hydro project

A framework agreement was signed for the construction of Madagascar’s largest hydroelectric project between the country’s government and a French consortium made up of contractor Eiffage, utility Eranove and bank Themis. The 200MW Sahofika plant will be located 100km south of Antananarivo, Madagascar’s capital, on the Onive river. According to the NEHO consortium, the capacity can be increased to 300MW when demand justifies the expansion. When complete, the plant will be operated by the Eranove group. The consortium will now carry out preliminary studies, financing, construction, commissioning and maintenance. A power purchase agreement is due to be signed with national electricity company JIRAMA by August


Source: Global Construction View

Malawi

Egenco signs Likoma-Chizumulu 1.3MW power contract

Electricity Generation Company (Malawi) Limited (Egenco) has signed a contract with NR Electric Company of China to design, supply, install and commission 1.3 megawatt (MW) solar photovoltaic power on Likoma and Chizumulu islands. Speaking during the signing in Blantyre, the company’s chief executive officer William Liabunya said the contractor will soon start mobilising equipment to start the works. “As you are aware, we generate electricity on the two islands using diesel. Apart from the fact that diesel is expensive, the logistics of getting fuel to the islands is also challenging,” he said. Liabunya said Egenco spends a lot of money on fuel to generate power on the two islands, but the return on the investment is negative. “This is not sustainable. We are generating and supplying power at the islands as a social responsibility,” he said.

Source: Malawi Nation

Mali

Good news for Altus in Mali

Multi-listed Altus Strategies has defined a series of drill and trench targets at its 100%-owned Djelimangara and Sebessounkoto Sud gold licences. The project is located 2km east of the Altus’ Korali Sud licence, which hosts the Diba gold project and is approximately 20 km southeast of the multi-million ounce Sadiola gold mine in the ‘Kenieba Window’ gold belt in the west of the Republic of Mali. “Our detailed review of the historic data on the gold projects has defined a number of priority drill and trench targets," says CEO, Steven Poulton. "With a cumulative strike length of over 5.5 km the targets are often coincident with hard rock artisanal gold workings that can extend for up to 150 m in length with individual shafts reportedly down to 40 m.

Source: Mining Review Africa

Mozambique

McDermott announces contract agreement for Mozambique LNG development

McDermott International announced that CCS JV, a joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) development. CCS JV's project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development. McDermott's initial portion of the EPC contract award is approximately USD2-billion.


Source: Africa Business Communities

Nigeria

Thor Explorations signs EPC contract for Segilola gold project

TSXV-listed mineral exploration company Thor Explorations has signed an engineering, procurement and construction contract with Norinco International for its 100% owned Segilola gold project in Nigeria. The engineering, procurement and construction (EPC) contract was signed during the 10th International Infrastructure Investment and Construction Forum in Macao, China. The EPC contract has been agreed on a lump sum turnkey (LSTK) basis which provides Thor with a fixed price of USD67.5-million for the full delivery of design, engineering, procurement, construction and commissioning of the proposed 650 000 tpa gold ore processing plant within 18 months of the commencement date and includes guarantees for construction schedule and plant performance.

Source: Mining Review Africa

Nigeria

Nigeria moves to its second green bond issuance

Nigeria is set to undertake a second issuance; a Series II Green Bond of up to NGN15billion. This follows the country's successful debut green bond issuance of NGN10.69 billion in December 2017 - by which Nigeria became the first African country to issue a green bond. The Nigerian Debt Management Office noted that the Series II Green Bond issuance is a further demonstration of the government’s commitment to the reduction of greenhouse gas emissions by 20% (unconditionally) by 2030, as outlined under the Paris Agreement signed on 21 September 2016. Through the Offer, the federal government seeks to raise NGN15-billion to finance projects with green credentials. These eligible green projects can be classified under three themes within the green bond framework, namely: renewable energy, afforestation, and transportation.


Source: ESI Africa