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issue 371 | 27 Sep 2020

Coronavirus (COVID-19)

A non-exhaustive list of recent measures aimed at curbing the spread of Coronavirus (COVID-19)

World: The European Investment Bank (EIB) has approved EUR12.6-billion of new financing for projects across Europe and around the world. New financing includes more than EUR3.1-billion of COVID-19-related investment to improve public health, strengthen public services and back investment by companies in sectors hit by the pandemic. The EIB Board also backed investment in agriculture, water, housing, telecommunications and urban development across Europe, as well as in Africa, Asia and Latin America.

Source: EIB

Africa: The Africa Centers for Disease Control and Prevention (Africa CDC), a specialised healthcare agency of the African Union Commission, said in its periodic report issued on Wednesday, 23 September that some 17 African countries and regions are still under “full border closure” while closure of country-wide educational institutions has been activated across 33 African countries in an effort to halt the spread of the infectious virus. It noted that 9 African countries are practicing mandatory COVID-19 testing at borders.

Source: Xinhua

Africa: There is an urgent need for financing to reenergize Africa’s trade in the wake of the COVID-19 pandemic, according to the latest trade finance report released jointly by the African Development Bank (AfDB) and the African Export-Import Bank. According to the report, titled ‘Trade Finance in Africa: Trends Over the Past Decade and Opportunities Ahead’, only 40% of Africa’s trade is bank-intermediated – a far lower share than the global average of 80%. The trade finance gap also remains unacceptably high at USD81-billion in 2019. The report found that these are some of the structural challenges that hinder banks’ ability to effectively intermediate Africa’s trade with the world. It also highlighted the critical role of development finance institutions in supporting the industry. The study also found that unintended regulatory bottlenecks were one of the key constraints driving these patterns.

Source: AfDB

Angola: The reduction in drilling activity, whose financial losses are yet to be quantified, is one of the consequences of the impact of COVID-19 on the oil sector in Angola. This was announced in Luanda by the spokesman for the Association of Exploration and Production Companies of Angola (ACEPA), Andre Kostelnik, at the end of a meeting with the President of the Republic, João Lourenço. The director general of Exxon Mobil in Angola also noted that “the situation had prevented other investment opportunities,” reiterating that at this time the impact of the pandemic on the crude industry could not yet be quantified. According to Kostelnik, the future of oil activity in Angola is not far from the global situation in that segment and the resumption of its exploration will happen as the economy grows globally.

Source: Energy Mix Report

Ethiopia: Ethiopian Airlines announced that it will resume flights to Johannesburg and Cape Town as of 1 October 2020. With the easing of travel restrictions across the globe, Ethiopian Airlines has continued relaunching international flights and enforcing extra precautionary measures to ensure the health and safety of passengers and staff, it said in a statement.

Source: ENA

Ghana: Ghanaian President Nana Addo Dankwa Akufo-Addo announced late Sunday, 20 September, a three-month extension of multiple restrictions to strengthen the country's fight against the COVID-19 pandemic. In his televised broadcast, President Akufo-Addo said the restrictions include the wearing of face masks, the closures of public places such as beaches and cinemas, and land borders.

Source: Xinhua

Kenya: Kenya is set to launch a KES10-billion (about USD92-million) micro, small and medium enterprises (MSMEs) credit guarantee scheme in October to boost post-COVID-19 economic recovery, a government official said Wednesday, 23 September. Albert Mwenda, acting director-general of Budget Fiscal and Economic Affairs, National Treasury, told a meeting in Nairobi that the government is prioritising facilitating small firms due to their significant contribution to the gross domestic product. “The aim of the guarantee is to facilitate access to affordable credit to MSMEs by reducing their default risk on loans,” Mwenda said during the ninth edition of the Kenya Bankers Association (KBA) Annual Banking Research Conference. According to the National Treasury, the credit scheme received Cabinet approval early this month and will be funded through public resources.

Source: Xinhua

Namibia / Seychelles / Uganda: Qatar Airways is to resume services to Entebbe, Seychelles, and Windhoek, as well as many more global destinations. Flight resumptions are as follows: Entebbe (three weekly flights starting 2 October); Seychelles (three weekly flights starting 15 October); Windhoek (three weekly flights starting 15 October).

Source: Africa Business Communities

Rwanda: RwandAir will resume flights to and from London and Brussels to Kigali from 3 October, as it reinstates its passenger network. The resumption of European services will see the carrier switch its United Kingdom (UK) operations from London Gatwick, with commercial flights to the Rwandan capital now departing from London Heathrow for the first time. The inaugural RwandAir service from Kigali to Brussels and London Heathrow will depart on 3 October. Flights will initially resume on a bi-weekly basis, before increasing to three flights weekly from 25 October, reconnecting the UK with Rwanda for passenger and critical cargo operations.

Source: RwandAir

Uganda: Government has clarified that Entebbe airport and borders will reopen on 1 October for both tourists and other travellers. The minister for Information and Communication Technology (ICT), Mr Peter Ogwang, told Daily Monitor that emphasis will be put on the travellers presenting certificates of negative test results for COVID-19, which must be done 72 hours before arriving in Uganda. Ms Judith Nabakooba, the ICT and National Guidance minister, further clarified that the airport will be open to all travellers entering or leaving Uganda. With regard to “travelling out, it is now mandatory to have negative test results for COVID-19 done within 72 hours before the flight. The same applies to all those travelling to Uganda from other countries,” she said.

Source: Daily Monitor

Africa

Africa trade pact negotiators to fast-track e-commerce talks

Negotiations for e-commerce and digital trade under an Africa-wide free trade pact will be fast-tracked as the COVID-19 pandemic heightens the need for a legal and governance framework, according to the zone’s most senior official. The talks that were to have been part of phase 3 of what could be the world’s biggest free trade area will now take place alongside phase 2 negotiations on competition policy, intellectual property rights and investment protocols, said Wamkele Mene, the secretary general of the African Continental Free Trade Area. Discussions are expected to begin early next year. Talks on digital trade will include measures to harmonise and speed up customs-clearance procedures between countries, Mene said. Delays at borders and regulations that differ from country to country slow regional commerce.

Source: Bloomberg

Angola

Angolan 2020 onshore bid round to open in January 2021

Angola 2020 Onshore Bid Round will officially open in January 2021 and bids must be submitted by 10 March 2021. Nine blocks are on offer, in the Lower Congo and Kwanza Basins. The country’s International Competitive Bid Round for oil and gas licensing, announced last year, is a scheduled offering for onshore and offshore, in the period 2019-2025. Last year, Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG), awarded three blocks: 27, 28, and 29, offshore in the deep-water Namibe Basin. This year, the bidding plans have been disrupted by COVID-19 complications. Data available includes 2D seismic coverage of the LowerCongo Basin, a recently updated Geological Map and Database of the Onshore Kwanza Basin, and a compilation of recent aeromagnetic data covering the Transition Zone and Shallow Waters of the Lower Congo and Kwanza Basins.

Source: Africa Oil + Gas Report

Cameroon

Cameroon’s Grand Eweng dam to be built by 2028 in collaboration with America’s Hydromine

Cameroon has launched the project to build the hydroelectric dam at Grand Eweng with a capacity of 810 MW. The infrastructure, worth an estimated USD3-billion, will be set up in partnership with the American company, Hydromine. It will be built on the Sanaga River, of which it will be the fifth hydroelectric power station and will come into service by 2028. The power of the infrastructure will subsequently be increased to 1,000 MW according to Lucas Briger, vice president of development and operations at Hydromine. “The Grand Eweng was originally intended for supplying the aluminium sector,” the official said in an interview. It was then decided that part of it would supply the population of 25 million Cameroonians, whose electricity demand is constantly increasing and that the rest would be exported to Chad, in particular. Cameroon, which currently has an installed capacity of 1.5 GW, will see its electricity demand increase to 3 GW by 2035 according to the Ministry of Energy. Hydromine is still looking for partners for the implementation of the project. These should be known by the end of the year. The company aims to finance the project with 20% to 25% equity and 75% to 80% debt. The plant’s output will likely be bought by ENEO, the country’s main distribution company.

Source: Energy Mix Report

Equatorial Guinea

Equatorial Guinea to build its first modular refinery in Punta Europa

Gabriel Mbega Obiang Lima, during the presentation of the Punta Europa Modular Refinery project at Hotel Colinas in Malabo, explained with reference to the delay in Equatorial Guinea having its own national refinery: “The scenario of equipping the country with its own refinery had not yet been handled since the exploitation of hydrocarbons began, due to viability issues, costs and the financing involved.” According to a technical feasibility study, the project will consist of two phases; the first, the installation of a CDU unit and its auxiliary equipment will be carried out, within a completion period of 20 to 24 months, while the second, the reformer for gasoline production will be installed, with the period of 30 to 36 months. According to the technicians of the oil company, Marathon GE and the Ministry of Mines, two scenarios are being considered for the implementation of this project. With a refining capacity of 10,000 barrels per day, more than USD200-million would be needed, with an estimated income in the first year of USD67.6-million and amortization in 34 months; and the other refinement scenario of about 5,000 barrels per day projected at more than USD147-miilion will be needed, while it is estimated that around USD13-million can be raised with a repayment plan of 60 months.

Source: Africanian

Kenya

Kenya to ink own UK deal as bloc trade talks delay

Kenya will go at it alone in the negotiation for an economic partnership agreement with the United Kingdom (UK), leaving its East African neighbours with an option of joining later. The decision follows delays by Tanzania and Uganda to agree on joining Kenya to conclude the trade deal as a regional bloc as time ticks closer to the 31 December Brexit date. Brexit will close thecurtain on the current trade arrangement in which East African Community (EAC) partner states enjoy duty-free and quota-free access to the lucrative UK market. Kenya and Rwanda had previously proposed to be allowed to carry on with the negotiation and later allow other EAC partners to join but Uganda opposed the move. A delay to midwife a deal beyond the December deadline will, however, only affect Kenya which is the only Lower-Middle Income country. The country’s exports to the UK would be subjected to taxes and other restrictions while the other EAC member states, which are classified as Least Developed Countries (LDCs), will continue to enjoy unrestricted access to the British market.

Source: Business Daily

Kenya

NSE unveils chat platform for investors

The Nairobi Securities Exchange (NSE) has launched an artificial intelligence (AI)-powered chatbot that responds directly and automatically to investors’ enquiries. It is designed to provide market participants, especially retail investors, convenient, faster and real-time access to data and information from the Exchange. Besides providing a conversational interface for investors, the digital platform will support investors in buying and selling stocks, tracking stock prices, generating statements and making funds transfers. It will also allow them to link their brokerage accounts with the mobile application. Kenya’s securities exchange is the second in the continent to launch the product after Nigeria which unveiled the Facebook enabled chat box in 2018. According to the NSE chief executive, Geoffrey Odundo, the chatbot actively matches investors’ increased thirst for information to make sound investment decisions and is timely for the new normal brought about by COVID-19.

Source: The Star

Kenya

Taxpayers to foot bills for elderly home, medical care

Taxpayers will foot the cost of providing homes and medical care for elderly Kenyans if the National Assembly supports a Bill passed in the Senate. National and county governments will be required to establish residential care centres, social centres and other facilities for the care of older people. Both levels of government will be compelled to partner in the development of physical infrastructure for the care, rehabilitation and provision of basic services to the elderly. Kenyans who have attained 60 years, are unable to care for themselves and have often been neglected will qualify for the state benefits. The beneficiaries will live in state sponsored homes, which will be built to accommodate an undisclosed number of people. The cost of constructing the homes for the elderly across the 47 counties has not been disclosed.

Source: Business Daily

Namibia

Walvis Bay wants to recycle wastewater into drinking water for its population

The municipality of Walvis Bay plans to recycle wastewater into drinking water to supply its population. The solution, which does not meet with unanimous approval in this port city, has already been applied in the Namibian capital Windhoek for 50 years. The municipality launched the reliability studies that should lead to the selection of a company and “a competing consultant” for the construction of a plant for the direct reuse of treated wastewater (DPR). It is likely after this stage that details will be provided regarding the future drinking water supply system. According to John Esterhuizen, the general manager for wastewater and environmental management in the municipality of Walvis Bay, the use of a wastewater recycling plant for drinking water aims to meet the population growth of this port city of more than 52,000 inhabitants. Currently, the municipality depends on two main sources for the water supply of its population.

Source: AFRIK 21

Rwanda / Tanzania / Uganda

Tanzania, Rwanda and Uganda race ahead to forge a single stock market

Three East African countries have joined forces to implement a World Bank-funded financial project that aims to connect regional stock markets electronically. This means they can operate as a single market with a view of reducing the cost and time of trading in shares of companies listed on markets across the borders. Rwanda, Tanzania, Uganda are set to start trading as a single market before the end of this year after interconnecting their trading systems and hooking to the East African Community (EAC) Capital Markets Infrastructure (CMI) Information Technology platform. Investors in the three countries will buy and sell shares of companies listed in any of the countries without going through different stockbrokers. The East Africa Securities Exchange Association (EASEA) said the project that has dragged for more than five years largely due to payment dispute with the software provider and lack of integration between CMI software and the trading systems of the three participating states will remove obstacles on stock trading in regional markets, spur activities and boost liquidity in underperforming markets once operational.

Source: The EastAfrican

Tanzania

Government reviews investment policy

The government has embarked on a review of the investment policy to improve domestic direct investment (DDI) and foreign direct investment (FDI). The move is also aimed at improving a business and investment climate for the country to continue building the economy by exploring available opportunities. Under review, is the National Investment Promotion Policy of 1996 that paved the way for the enactment of the Investment Act of 1997 for which the Tanzania Investment Centre (TIC) was established. Director of planning in the Prime Minister’s Office, Packshard Mkongwa mentioned three areas that needed more attention to improve the sector. “A lot has been done so far on improving the sector, but there are still challenges in investment coordination, investment promotion and investment facilitation,” he said.

Source: Daily News

Tanzania

Tanzania’s petroleum products market sees sizeable annual expansion

The liquefied petroleum gas (LPG) market registered double-digit growth last year as companies and the sector’s regulator foster public awareness campaigns on the benefits for using the environmentally friendly energy source. A new report by the Energy and Water Utilities Regulatory Authority (EWURA) shows that the LPG business segment grew by 16% last year, fuelled partly by increased imports and investments in storage and refilling plants. In 2019, a total of 166,436 MT of LPG were imported, compared to 142,939 MT of the same imported in 2018. The partly-released report notes that about 65% of the imports was for the domestic market, while the remaining 35% was transited to neighboring countries, 70% of which went to Kenya. The increase in LPG imports is due to government efforts and LPG marketing companies to create public awareness on the importance of using LPG against traditional fuels such as charcoal and firewood. EWURA’s director of the petroleum division, Mr Gerald Maganga, said despite the increased LPG consumption in the country, there was still limited distribution of the product in rural areas. According to Maganga, the regulator has continued to encourage construction of petrol stations in rural areas so as to ensure that petroleum products are distributed in a reliable and safe manner.

Source: The Citizen

Togo

Togo’s Lomé airport begins its energy transition to solar

The Lomé-Tokoin Airport Company (SALT) is launching a call for tenders for the control and supervision of construction work for a solar power plant intended to supply energy to Lomé airport. The closing date for receipt of applications is 12 October 2020. Gnassingbé Eyadéma International Airport (AIGE) is starting its transition to renewable energy, with a project to build a photovoltaic solar power plant in its enclosure. The future plant will have to meet all the energy needs of the airport, currently covered by the CEET and generators. For the control and supervision of works, SALT invites interested companies to submit until 12 October 2020 to the secretariat of the Finance and Accounting director of SALT, their technical file with a view to establishing a list of prequalified candidates.

Source: Energy Mix Report

Zambia

DBZ, ZDA speak local firms growth

Development Bank of Zambia (DBZ) and Zambia Development Agency (ZDA) have signed a memorandum of understanding (MoU) that will support growth of local enterprises and facilitate access to tailor-made finance. The MoU will among others, enhance provision of affordable credit facilities and business development services to small and medium enterprises, including start-ups and innovators. DBZ managing director Dr Samuel Bwalya said the mandate of the two institutions builds around a common vision of fostering socio-economic development of the country. Dr Bwalya said DBZ is committed to supporting measures aimed at expanding export-oriented value chains and strengthening backward and forward linkages between enterprises and help them move up the ladder on the global value chains.

Source: Zambia Daily Mail

Zambia

Government to revise Mines and Minerals Act

Acting mines director in the Ministry of Mines and Minerals Development, Brighton Kateka says the government is in the process of revising the Mines And Minerals Act of 2015 to allow for the proper regulation of mining industry operations. Kateka said one of the issues to be looked at is the incorporation of gold as a strategic mineral in the Act so that it is well managed. Kateka explained that Zambian contractors have observed and complained that they are not being given sufficient businesses in terms of contracts by mining companies and therefore, the review of the Act will address such challenges.

Source: Lusakatimes