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issue 359 | 05 Jul 2020

Coronavirus (COVID-19)

A non-exhaustive list of recent measures aimed at curbing the spread of Coronavirus (COVID-19) Africa: As countries continue to rebuild from the COVID-19 pandemic, a new guide by Sustainable Energy for All (SEforALL) shows how clean energy investment can support countries to ‘Recover Better’, and use this unique moment to reset their economies and close energy access gaps. According to ‘The Recover Better with Sustainable Energy Guide for African Countries’, released by SEforALL, countries that commit to an ambitious recover better strategy today can deliver economic growth, new jobs, and sustainable energy for all in the long-term. Source: ESI Africa Africa: The International Finance Corporation (IFC), a member of the World Bank Group, is boosting its response to the COVID-19 pandemic by offering new incentives for financial institutions to provide loans to small and medium-sized enterprises (SMEs) in the poorest countries and to women entrepreneurs across all emerging markets. Under the new initiative, up to USD215-million in blended finance support will be available to encourage working-capital loans in low-income countries eligible for support under the International Development Association’s (IDA) Private Sector Window (PSW). Support from the IDA PSW will be in the form of pooled first-loss guarantees to support approximately USD860-million in new working capital loans to SMEs in critical need of additional short-term liquidity to continue operating during the pandemic. Source: Africa Business Communities Africa: The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has signed a USD200-million syndicated Murabaha financing agreement with the African Export-Import Bank (Afreximbank). The facility seeks to help African countries address some of the economic impacts of the COVID-19 pandemic. This syndication is supported by number of partners and financial institutions who allocated resources to the agriculture sector in African. The agreement, which is indicative of ITFC’s ongoing commitment to and trust in Africa, will finance the export of soft commodities, such as raw cashew nuts, cocoa, sesame seeds and maize. Source: Africa Business Communities Africa: The outlook for 2020 for sub-Saharan Africa is considerably worse than was anticipated in April and subject to much uncertainty. Economic activity this year is now projected to contract by some 3.2%, reflecting a weaker external environment and measures to contain the COVID-19 outbreak. Growth is projected to recover to 3.4% in 2021 subject to the continued gradual easing of restrictions that has started in recent weeks and, importantly, if the region avoids the same epidemic dynamics that have played out elsewhere. Africa’s authorities have acted swiftly to support the economy, but these efforts have been constrained by falling revenues and limited fiscal space. Regional policies should remain focused on safeguarding public health, supporting people and businesses hardest hit by the crisis, and facilitating the recovery. The region cannot tackle these challenges alone, and a coordinated effort by all development partners will be key. Source: International Monetary Fund East Africa: The Board of Directors of the African Development Fund (ADF) have approved grants totaling USD9.52-million to strengthen responses to the COVID-19 pandemic in East Africa and the Horn, and in the Comoros. The grant, approved on 26 June, is part of the USD10-billion COVID-19 Rapid Response Facility (CRF) approved by the Board of Directors in April 2020 and complements the Bank’s direct support to regional member countries across the continent. The beneficiaries are Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Somalia, Kenya, Rwanda, South Sudan, Sudan, Tanzania and Uganda. Funding will also go toward the procurement of essential medical supplies, including testing kits and to train health workers. Source: African Development Bank Group Gabon: The African Development Bank (AfDB) approved a loan for Gabon worth just over USD100-million (FCFA66-billion). Aimed at helping the country cope with a double health and economic crisis, the loan is in addition to the International Monetary Fund’s (IMF) FCFA88-billion in the same framework. Source: aLibreville.com Gabon: The government announced the decision to resume commercial flights from 1 July, as part of the gradual lifting of COVID-19 travel restrictions. Source: IHS Markit Liberia: Liberia has opened its international airport to regular air traffic after it was closed to contain the spread of COVID-19. However, Liberia will remain in a state of emergency until 22 July to curb the spread of COVID-19 in the country. Source: Pulse NG Nigeria: The Federal Government on Monday, 29 June, lifted the ban on interstate movement effective from 1 July 2020. The Presidential Task Force (PTF) on COVID-19, however, reaffirmed the continuation of the nationwide curfew between 22:00 and 04:00 adding that “travels are not expected at this period.” Source: The Nation Nigeria: The minister of Aviation, Hadi Sirika, has announced that Abuja and Lagos airports will reopen for domestic operations on 8 July. Sirika added that Kano, Port Harcourt, Owerri and Maiduguri airports would resume on 11 July while other airports would follow on 15 July. International flights would soon be announced, he noted. Source: Economic Confidential Republic of Congo: The Government announced mandatory COVID-19 testing at all national airports, at travelers' own cost. Source: Journaldebrazza.com Rwanda: France, through its development bank, Agence Française de Développement (AFD), and Rwanda on Tuesday, 30 June 2020 signed two financing agreements worth EUR49.5-million (RWF54-billion) that will support Rwanda's response to the COVID-19 pandemic. Source: The New Times Rwanda: Rwanda Convention Bureau (RCB) on Wednesday, 1 July, announced the reopening of meetings and conferences, as the country tries to gradually revive tourism and hospitality sectors, key foreign exchange earners. In light of the move, RCB has directed event organisers and revenue owners to establish measures to prevent infections. Source: The New Times Rwanda: The European Union (EU) has officially included Rwanda among its list of 15 COVID-19 ‘Safe Countries’ that will be permitted to enter the EU from 1 July. “The “safe list” will be reviewed every two weeks and adjusted depending on the latest COVID-19 developments in each country,” the EU said. Source: KT Press Rwanda: The travel restriction on Rubavu District that has been in place since early June, has been lifted following an evaluation of the COVID-19 situation in the country. This was one of the resolutions by an extraordinary cabinet meeting held in Kigali on Tuesday, 30 June. Source: The New Times Seychelles: The government of Seychelles has confirmed that the construction of a floating solar PV power plant will be delayed due to consequences of the COVID-19 pandemic. Seychelles announced its plan to install a utility-scale floating solar PV system, the first in Africa, in April 2018. Construction of the system which will be located on the lagoon at Le Rocher, in the central Mahe district of Les Mamelles, was due to start this year. Source: ESI Africa Uganda: The Ugandan High Court has set out guidelines for obtaining informed consent from the subjects of human clinical drug trials. In Harriet Mukoda v International AIDS Vaccine Initiative, the petitioner claimed that her consent was unlawfully obtained through misrepresentation of the potential effects and benefits of the drug trial. She further claimed that the consent obtained was ineffective as it was not administered in her native language. The High Court decision is a timely ruling as the world continues to grapple with the COVID-19 pandemic and scientists push to develop a vaccine. Human clinical trials will be necessary and given the dangers of COVID-19, informed consent will be all the more important. Source: ENSafrica  Uganda: The World Bank Board of Directors approved, on 29 June, a USD300-million budget support operation for Uganda to boost the Government’s capacity to prevent, detect and treat COVID-19, protect the poor and vulnerable population, and support economic recovery. To stimulate recovery of private sector, businesses in distress will receive tax relief alongside the liquidity measures from the Central Bank to commercial banks, microfinance institutions and credit institutions, that allows them to provide a moratorium on loan repayment for businesses and individual borrowers that have been affected by the pandemic for up to 12 months. In addition, government has committed to stronger transparency and management of state-owned enterprises debt and payment of domestic arears to suppliers.  Source: World Bank Group

Africa

Southern and East Africa rank top regions in attracting venture capital in Africa

A recent report from the African Private Equity and Venture Capital Association (AVCA) recognises that 2019 was a record year in terms of VC deal value in Africa, reaching USD1.4-billion; the highest on record. The report titled, Venture Capital in Africa: Mapping Africa’s Start-Up Investment Landscape, notes that South Africa had the most venture capital deals with 21% of the total early-stage investments, Kenya got 18% and Nigeria 14%. Kenya ranked within the top African countries that attracted the highest share of financing for start-ups and small businesses with exceptional growth prospects in the past five years (2014-2019). According to the report, as a region, Southern Africa attracted the highest number of VC deals (25%) in Africa, followed by East Africa (23%) and West Africa (21%). Financials (19%), Information Technology (19%) and Consumer Discretionary (18%) accounted for the largest share of VC deals by volume from 2014 – 2019. Deals in Consumer Discretionary (28%), Financials (23%) and Industrials (18%) attracted the largest share of VC deals by value. Utilities is another sector that has been quite popular among early-stage deals, with investors being attracted by companies providing alternative power solutions.

Source: ESI Africa

Africa

Web promotion of business opportunities in Portuguese-speaking countries to begin

An eight-month web promotion campaign on business opportunities in Portuguese-speaking countries, co-sponsored by the Macao Trade and Investment Promotion Institute and the Permanent Secretariat of the Forum for Economic and Trade Co-operation between China and Portuguese-speaking Countries, will be launched. Starting from July till February 2021, the campaign will feature one Portuguese-speaking country each month, showcasing the latest trade and commercial information of Angola, Brazil, Cape Verde, Guinea Bissau, Mozambique, Portugal, São Tomé and Príncipe, as well as Timor-Leste. The web campaign will offer video clips and infographics on the business and cultural environments of the above-mentioned Portuguese-speaking countries. Representatives of the eight Portuguese-speaking countries will also answer online questions about the trade and investment trends of their respective countries.

Source: Macauhub

Africa

World Bank realigns Africa into two Vice Presidencies for greater focus on country progress

As a sign of its strong commitment to Africa, the World Bank’s sub-Saharan Africa Regional portfolio will now be managed by two Vice Presidents, covering Western and Central and Eastern and Southern Africa, respectively. The institution announced the change in early 2020, which took effect on 1 July 2020. This year the World Bank is expected to lend about USD50-billion to 48 countries in sub-Saharan Africa – significantly more than any other region and making up about one-third of the World Bank’s entire portfolio. These financing volumes are almost double what the region delivered ten years ago. The Bank’s portfolio includes projects and programs in areas such as agriculture, trade and transport, energy, education, health, water and sanitation. Furthermore, the growth in financing to fragile states has been even higher with about two-thirds of World Bank financing to fragile states happening in Africa. The region has been led since 2018 by Hafez Ghanem, who takes on the role of Vice President for Eastern and Southern Africa. Ousmane Diagana takes on the role of Vice President for Western and Central Africa.

Source: World Bank Group

East / Southern Africa

World Bank provides USD425-million to support the provision of infrastructure financing in Eastern and Southern Africa

On 30 June 2020, the World Bank Board of Directors approved a total amount of USD425-million in International Development Association (IDA) financing to support the provision of infrastructure finance in Eastern and Southern Africa. The Regional Infrastructure Financing Facility project (RIFF) aims to expand long-term finance to private firms in selected infrastructure in the power sector, as well as in the transport, logistics and social sectors. This is the first regional facility of this kind in Africa. The Project harnesses a regional approach to address the financing needs of private sector infrastructure companies, by building capacity in regional institutions, the Trade Development Bank (TDB) and the Common Market for Eastern and Southern Africa (COMESA), to provide a longer and sustainable source of infrastructure finance and to support the enabling environment for infrastructure finance. Infrastructure is expected to be a key driver of economic recovery post COVID-19. This is the first time IDA and the Multilateral Investment Guarantee Agency (MIGA) are jointly supporting a regional development bank. MIGA is providing TDB a first-of-its-kind credit enhancement of EUR334.4-million on a ten-year loan from private commercial banks, that will help TDB expand trade finance activities. The two operations are complementary and cover TDB’s two main business lines (infrastructure finance and trade finance).

Source: World Bank Group

Ethiopia

Ethiopia to set up regulator for first stock exchange this year

Ethiopia has drafted a bill to create a stock market authority that will come into effect before the end of the year, according to the Ministry of Finance. Ethiopia is among the biggest five economies in sub-Saharan Africa and the second-largest by population, but does not have a stock market. Since Prime Minister Abiy Ahmed came to power in 2018, the country has pursued economic reforms, including opening up formerly closed-off sectors such as telecommunications. “As we are at a stage where a vibrant private sector is starting to emerge, we have companies that are ready to be listed in the stock exchange,” Eyob Tekalign, the state minister for finance, said in an emailed response to questions. “We are on a good track to commence the implementation.” The ministry is working on building the infrastructure and human skills needed to introduce a stock market, he said.

Source: Bloomberg

Kenya

Boost for firms as KEBS extends standard marks validity to two years

Manufacturers have been spared the annual hustle and expenses of renewing certification after the Kenya Bureau of Standards (KEBS) extended validity of standardisation marks by two years. Managing director Bernard Njiraini said starting 1 July 2020, the standardisation marks (SM) permits will also be electronically dispatched to individual manufacturers who will be required to make cashless payments. “The revision of the standardisation mark scheme improves efficiency and enhances Kenya’s ease of doing business by reducing logistical and administrative challenges, including delays in the processing of SM permits,” he said. KEBS will also issue guidelines for accepting test reports which have been done in accredited laboratories for product certification. The bureau also released a guideline document for remote assessment during extraordinary events or circumstances such as the COVID-19 pandemic as part of its business continuity strategy. So far, the agency has issued 14,400 SM permits to manufacturers. The SM permit, which is a mandatory requirement for placement of goods in the Kenyan market, is issued to manufacturers for products whose compliance with established standards has been ascertained.

Source: Business Daily

Kenya

State mortgage financier admits IFC, Shelter Afrique

State-backed home loans financier Kenya Mortgage Refinance Company (KMRC) has admitted International Finance Corporation (IFC) and Shelter Afrique as shareholders. The firm also announced it was good to go after picking directors and crafting a financing strategy. KMRC has so far raised KES2-billion as capital from shareholders among them National Treasury, 20 primary mortgage lenders, eight banks, one micro-finance bank and 11 savings and credit co-operatives. A further commitment of KES35-billion from development partners would fund KMRC’s operations. During a first virtual AGM, World Bank private sector arm, IFC and pan-African mass housing development funder Shelter Afrique were admitted as shareholders of KMRC after each contributed KES200-million. Acting KMRC chief executive Johnstone Oltetia said the firm has a fully constituted board now tasked with offering long-term finance to local lenders that will, in turn, oversee the disbursement of mortgages to Kenyans on low-interest terms. Speaking during the meeting, Mr Oltetia said the financier has applied for a licence to offer mortgage refinance services. Acting chairman Haron Sirima said the financier had formulated an effective mechanism to roll out financial products that enable local banks to dish out cheaper house loans.

Source: Business Daily

Kenya

CMA seeks views on shares buyback

Nairobi Securities Exchange (NSE)-listed firms may soon be able to buy back shares from the market after the regulator published new guidelines directing the process. The Capital Markets Authority (CMA) in a notice invited stakeholders to provide input on the regulations. The Companies Act, 2015 allows firms to repurchase stock but such transactions have been put on hold awaiting guidance from the regulator. The new rules will see companies disclose all the critical information, including the risks and pricing of the share repurchase. “The draft guidelines provide additional requirements for share buyback transactions by listed companies, including disclosures, approval requirements and timelines,” said the CMA. “The guidelines seek to enhance investor protection, promote liquidity and ensure transparency in share buyback transactions.”

Source: Business Daily

Madagascar

Telma and Ericsson launch commercial 5G services in Madagascar

Telma Madagascar has switched on its 5G commercial network to offer subscribers high-speed services enabled by the new generation of mobile connectivity. Powered by Ericsson (NASDAQ: ERIC), the 5G network is now live in multiple cities in Madagascar. Two key 5G use cases for the Madagascar market are enhanced mobile broadband (eMBB) and Fixed Wireless Access (FWA). With greater capacity, higher data speeds and reduced latency, 5G will power new experiences for Telma customers, from gaming and entertainment services, to IoT and business applications. Healthcare and education are areas that will deeply benefit from this technology. Ericsson was selected by Telma in October 2019 to upgrade its core and radio network in Madagascar building on the two companies’ existing 5G partnership. With Telma’s launch, Ericsson currently has 41 live 5G networks in 24 countries. Ericsson’s live networks are part of the 95 commercial 5G agreements or contracts the company has with unique operators globally, of which 55 are publicly announced 5G deals.

Source: Ericsson

Malawi

Malawi exports revenue hit MWK668.6-billion in 2019 – 4.5% increase from 2018

Malawi’s export earnings went up by 4.5% in 2019 to hit MWK668.6-billion from MWK639.2-billion in 2018, latest figures from the International Trade Centre (ITC) Trade Map show. However, the earnings remain lower than the record MWK734.5-billion worth of exports earned in 2017. The report shows that top five export-destinations for Malawi products include Belgium, Kenya, Egypt, South Africa and the United States. This means that Kenya became Malawi’s top export market in Africa, replacing South Africa. Top export commodities including tobacco and manufactured tobacco substitutes, sugars and sugar confectionery, coffee, tea, maté and spices, oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit, and edible vegetables and certain roots and tubers. However, the country imported goods worth MWK2.1-trillion from the global market during the year. The imports have also increased by 10.5% when compared to MWK1.9-trillion recorded in 2018. Top five imports include machinery and mechanical appliances, products of the printing industry, electrical machinery and equipment, fuels, and fertilizers.

Source: BusinessMalawi™

Mozambique

World Bank announces USD117-million to strengthen Mozambique’s urban development

The World Bank approved, on 26 June, a USD117-million grant from the International Development Association (IDA) in support of the Government of Mozambique’s Urban Development and Decentralization Project. This financing seeks to harness the benefits of urbanization in participating municipalities across the country by improving urban infrastructure and service delivery as well as by supporting institutional reforms and capacities. The project will also help any municipality of Mozambique that has feasible initiatives to leverage private sector finance in urban infrastructure and service delivery. The timing of the project is also particularly important as it will help the cities in Mozambique to respond to the COVID-19 pandemic.  

Source: World Bank Group

Nigeria

CAC to issue incorporation certificates with tax numbers

Certificates of incorporation of companies registered under Part A of the Companies and Allied Matters Act (CAMA) will now be issued with Tax Identification Numbers (TIN). According to the Corporate Affairs Commission (CAC), the registration certificates of business and non-business entities provided in the Act will henceforth be issued with TIN. The management of CAC disclosed this in separate tweets via the Commission’s official Twitter handle. It explained that the move was part of measures aimed at boosting the country’s Ease of Doing Business initiative. The Commission said, “This is to inform our dear esteemed customers that as part of the Ease of Doing Business initiative, Certificates of Incorporation of Companies registered under Part A of CAMA will henceforth carry Tax Identification Numbers issued by the Federal Inland Revenue Service.” “This has dispensed the need for companies to apply for the issuance of Tax Identification Numbers from the FIRS after incorporation,” the Commission stated.

Source: MMS plus

Nigeria

AKK Gas Pipeline to revive deteriorating industries in Nigeria

On Tuesday, 30 June, using a virtual platform, President Muhammadu Buhari launched the construction of the 40-inch x 614km Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project. According to a media statement issued by the Nigerian National Petroleum Corporation (NNPC), Buhari noted on completion the project will provide gas for generation of power and feedstock for gas-based industries, and also facilitate the revival of declining industries and the development of new ones along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State. “Today marks an important chapter in the history of our great nation. It marks the day when our domestic natural gas pipeline networks from Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano states thereby further enhancing national energy security,” he said. President Buhari stated that the project will create numerous direct and indirect employment opportunities while fostering the development and utilisation of local skills and manpower, technology transfer and promotion of local manufacturing.

Source: ESI Africa

Rwanda

Rwanda to host East Africa Tourism Platform secretariat

Rwanda will host the secretariat of the East Africa Tourism Platform, a regional private sector body for tourism in the East African region, which was set up by TradeMark East Africa in 2011. The platform was established as an initiative to promote the East African Community as one tourism destination. Trademark East Africa announced a financial package of USD250,000 (approximately RWF238.4-million) towards supporting the body’s operations, including market development, advocacy, and institutional capacity, among others. The launch of the platform comes at a time when tourism in the region is struggling after taking a heavy hit from the COVID-19 pandemic. As countries get ready to reopen business, operators think there is a need for harmonised tourism strategies in the region to revive the sector and turn around its fortunes in the long term. Fred Odek, the incoming chairperson of the East Africa Tourism Platform (EATP), highlighted that one of the priority focus areas will be to revive the sector in the region. EATP works with national ministries responsible for tourism, wildlife, trade and transport portfolios, the EAC Secretariat, and private sector organisations.

Source: The New Times

Rwanda

Rwanda’s move to stop illegal mineral imports

Rwanda has launched a new mineral export certificate to curb allegations of smuggling of precious metals from the Democratic Republic of Congo. “The new export certificate is for all minerals not usually covered by the International Conference on the Great Lakes Region (ICGLR) export certificate. The aim of this certificate is to make sure we can account for all exports with the right paperwork,” Francis Gatare, the chief executive of Rwanda Mines Board, told The EastAfrican. The country now has two different mineral export certificates namely the ICGLR mineral export certificate designated for principal minerals of tin, tungsten and tantalum – commonly known as “The 3 Ts” – and the second one for the rest of minerals, including gold. Issuance of the new certificate started in April, with applicants required to apply online through the Mineral Certificate Information System, a move further aimed at curbing irregularities. Exporters must also show that they already have a contract with a prospective mineral buyer before getting the new certificate.

Source: The EastAfrican

Tanzania

Tanzania to introduce new grape varieties to boost wine production

The Tanzania Agricultural Research Institute (TARI) said plans were afoot to introduce 13 new grape varieties from South Africa to boost production of wine in the country. "The new grape varieties will also improve the country's production of grapes," said Cornel Massawe, head of TARI at Makutopora centre in Dodoma region, the country's leading grape producer. Lack of wine grape varieties was stalling massive production of wines in the east African nation, said Massawe. He said the varieties to be introduced from South Africa were a mixture of red and white grafted scions as well as root stocks. Massawe said introduction of the hybrid varieties will go in tandem with many interventions to increase cultivation of grapes within the country, a move anticipated to stimulate wine making industries across the country. Available statistics by the Ministry of Agriculture indicate that there are at least 1,696 grape farmers in Dodoma region with an annual production volume of 10,052 tonnes.

Source: Xinhua

Uganda

Uganda’s second licensing round: joining Africa’s next oil & gas frontier

Among the few ongoing licensing rounds on the continent this year is Uganda’s Second Licensing Round, announced by the Ministry of Energy and Mineral Resources last year. The deadline for submitting the application for qualification on the five blocks on offer in the Albertine Graben is 30 September 2020. The acreages on offer have become even more attractive since Tullow Oil announced the sale of its entire stake in the Lake Albert Development Project earlier this year to Total.  As Total and CNOOC develop billions of barrels of proven oil reserves near Lake Albert, the government is committed to attracting more investment into the development of its hydrocarbons potential through the Second Licensing Round. The Uganda National Oil Company is now also inviting interested entities to establish joint-venture partnership and participate in the licensing round in order to apply and secure an exploration license. The joint venture proposals will need to be submitted no later than 17:00 local time on 24 July 2020.

Source: African Energy Chamber

Uganda / Tanzania

Uganda-Tanzania USD3.5-billion oil pipe decision seen in December

The final investment decision on a planned USD3.5-billion oil pipeline from Uganda to Tanzania’s coast is expected to be reached in December, according to the Tanzanian national oil company. “Construction of the project’s infrastructure is scheduled to begin in early 2021,” the Tanzania Petroleum Development Corporation said in a statement on its website. “We expect to relaunch a call for tenders soon and conclude negotiations between the project’s joint venture partners and the governments of Uganda and Tanzania by September.” Uganda plans to start producing and exporting oil via the conduit from 2023-24 following its discovery of commercially viable deposits in 2006. Plans to develop the oil fields resumed after Tullow Oil Plc resolved tax disagreements with Uganda, allowing it sell its assets in that country to Total SA. CNOOC Ltd. of China also owns fields there.

Source: BloombergQuint