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issue 418 | 19 Sep 2021

Africa

Aktivco signs EUR60-million credit facility to supply green energy to telecom towers

Aktivco, the investment vehicle of the Camusat Group, has signed a EUR60-million credit facility with several investors. Camusat will use the credit to generate renewable energy and install energy efficiency solutions for telecommunications towers in several African countries. The credit is provided by the Energy Inclusion Facility (EIF). This financing facility is capitalised by the African Development Bank and other development finance institutions and managed by Lion’s Head Asset Management. In this loan, EUR27-million is allocated by the EIF, and EUR16-million by Proparco, the subsidiary of the French Development Agency group, responsible for private sector financing. Norfund, the Norwegian government’s private equity arm, is contributing EUR9-million, and EUR8-million from AfricaGoGreen, a fund launched by the KfW to promote private investments that mitigate or reduce greenhouse gas emissions.

Source: AFRIK 21

Africa

Nokia and ATU to speed up digital transformation and the knowledge economy in Africa

Nokia has signed a Memorandum of Understanding (MoU) with the African Telecommunications Union (ATU) to drive digital transformation and the knowledge economy for socio-economic development across the continent. The two parties will leverage the power of telecommunications, including 5G networks, to connect the unconnected and identify innovative use cases, as well as business models. In addition, the MoU will lay ground for both organisations to better help governments shape telecommunications policy, develop talent and promote inclusion and diversity. This includes women, as well as the underprivileged in both rural and urban areas. The MoU was signed in Nairobi, Kenya, by John Omo, secretary general at ATU and Rajiv Aggarwal, Nokia representative and head of Central, East and West Africa Market Unit at Nokia.

Source: Africa Business Communities

Africa

UN launches the first regional online portal to bring together all African countries with data and evidence on sustainable development

Measuring and evaluating progress on the Sustainable Development Goals (SDGs) in Africa became much easier as a group of regional United Nations (UN) entities launched the first online data portal that brings together statistical data harvested across all countries on the continent. On Monday, 13 September, 17 regional UN entities, under the Africa Regional Collaborative Platform (RCP), unveiled the Africa UN Data for Development Platform. This is the first platform to serve as a one-stop-shop repository that captures high-quality data and evidence on the 2030 Agenda and the SDGs from all the African countries. It is also the first of its kind to raise the profile of statistical progress toward the African Union vision – Agenda 2063. “With barely nine years left to achieve the SDGs, making use of common and harmonised data is essential to accelerate progress,” said assistant secretary-general Ahunna Eziakonwa, director of the Regional Bureau for Africa at the UN Development Programme, who also serves as vice-chair of the Africa RCP, at the virtual launch event. The new data portal looks into the 17 SDGs and breaks them down into their 169 targets and 231 indicators, allowing everyone to track progress at the granular level.

Source: United Nations Economic Commission for Africa

Angola

Angola oil company exchanges black for green in restructuring

Angola’s national oil company, Sonangol has announced it is going public – restructuring as a comprehensive national energy company rather than strictly oil-focused. Sebastião Gaspar Martins, Sonangol CEO, announced on Thursday, 9 September that the company has already seen positive outcomes in terms of cost savings from its restructuring programme, which involves the sale of non-core assets. The remaining entity will focus on the production of oil and gas as an operator, as well as engage in the production of energy through gas and renewable projects including solar, biogas and hydrogen. The government of Angola plans to list Sonangol once the restructuring programme is completed by the end of 2022. Gaspar Martins also announced Sonangol would expand its position as an oil and gas operator in Angola. The company is currently responsible for 2% of nationally-operated production. He believes the national energy company could take responsibility for up to 10% of national production over the next 10 years.

Source: ESI Africa

Botswana

Government optimistic of greylisting removal

The government is hopeful that the October plenary of the Financial Action Task Force (FATF) will remove the country’s greylisting for money laundering, ending a three-year censure that has impacted Botswana’s investment allure. The FATF, the world’s leading multinational anti-money laundering agency, placed Botswana on its greylist in 2018 citing deficiencies in its money laundering structures, leading the European Union to place the country on a blacklist in 2019. The listing increases the cost of local financial institutions doing business with international banks and other organisations due to the higher due diligence that will be applied to them. There are also delays in funds being transferred to and from Botswana, due to the need for greater due diligence. On Tuesday, 7 September, the Finance and Economic Development Minister, Peggy Serame, said an on-site assessment by the FATF in late August, as well as earlier progress noted at the organisation’s June plenary, had provided hope that the country would be exiting the adverse listings next month.

Source: Mmegi

Burkina Faso

Nuclear security in Burkina Faso observed by IAEA advisory mission

On request from the Burkina Faso government, an International Atomic Energy Agency (IAEA) team of experts completed a nuclear security advisory mission to the country. The IAEA mission included four experts from Lebanon, Niger, Senegal and the agency. The team observed that Burkina Faso has established a nuclear security regime with essential elements of the IAEA’s guidance on the fundamentals of nuclear security. Good practices were identified that can serve as examples to other IAEA member states to help strengthen their nuclear security activities, while recommendations and suggestions were offered by the team to support Burkina Faso in further enhancing and sustaining nuclear security. The scope of the two-week International Physical Protection Advisory Service (IPPAS) mission included the legislative and regulatory framework for the security of radioactive material, regulatory practices (licensing, inspections and enforcement) and coordination between all stakeholders involved in nuclear security. The conduct of the mission included a review of the security systems and practices in place at selected facilities.

Source: ESI Africa

Democratic Republic of the Congo

DRC and the African Development Bank want to reinvigorate their cooperation

A high-level mission of the African Development Bank (AfDB) Group, led by the director general for the Central Africa Region, Serge Nguessan, visited Kinshasa from 30 August to 4 September 2021 to strengthen relations between the bank and the Democratic Republic of the Congo (DRC). The objective of this mission was to strengthen and revitalise cooperation between the bank and the DRC, in line with the desire of the new Congolese authorities to accelerate the implementation of major projects for the structural transformation of the economy and inclusive growth post-Coronavirus (COVID-19). Both sides praised the excellent progress of the work and the quality of the exchanges. The AfDB Group’s executive director for the DRC, Ilankir Matungulu, as well as the deputy director general for Central Africa and the bank's new country representative in the DRC, Solomane Koné, took part in this strategic mission, which also included experts from the country office in Kinshasa, in charge of key sectors, particularly in the economic and operational fields, infrastructure and social development.

Source: AfDB

Ethiopia

Addis Ababa to invest USD40-billion in 71 clean energy projects over 10 years

Ethiopia wants to become a major player on the African energy scene. The Ethiopian government wants to implement a 10-year plan to produce and export green electricity to the Horn of Africa and the whole of East Africa. As part of this strategy, Addis Ababa expects to invest USD40-billion in 71 renewable energy projects. The plan is ambitious for this East African country, which has an installed capacity of 4 965MW according to Power Africa. But this capacity is expected to double with the commissioning of the Grand Ethiopian Renaissance Dam (GERD), which will have a capacity of 6 450MW. The Ethiopian government will continue to develop its hydroelectric infrastructure as part of its new plan. Addis Ababa plans to build 16 hydropower dams in the coming years.

Source: AFRIK 21

Ethiopia

Ethiopia invites bids for 40% stake in giant Ethio Telecom

The Ethiopian government on Tuesday, 14 September announced that it has launched a bidding process for private investors to buy a 40% stake in state-owned telecommunications service provider, Ethio Telecom. The Ethiopian Ministry of Finance, which is leading the bidding process, released the request for proposal (RFP) for the partial privatisation. "The Government of Ethiopia has released an RFP for the partial privatisation of Ethio Telecom to invite proposals from interested parties who can add value to the company by bringing in best practices in operations, infrastructure management and technological capabilities," the ministry said. The RFP is open to all interested parties and is not limited to companies that have previously submitted an expression of interest. It also stated that any interested party must pay a non-refundable USD20 000 in order to obtain the RFP and must submit a confidentiality undertaking to the Ethiopian government. The privatisation process is part of the country's Indigenous Economic Reform Programme. The objective is to broaden the role of the private sector in the Ethiopian economy, improve the efficiency of public enterprises, enhance their competitiveness, increase their access to capital, and enhance the quality and accessibility of their services.

Source: The EastAfrican

Ghana

Moody's, S&P score Ghana B3 and B- respectively for showing strong growth prospects

Two credit rating agencies – Moody's Investor Services (Moody's) and S&P Global Ratings (S&P) have affirmed Ghana's Credit Rating at B3 and B- respectively. The rating agencies also maintained Ghana's outlook. A statement issued by the Public Relations Unit of the Ministry of Finance and made available to the Ghana News Agency in Accra, said the credit rating agencies, in making their decisions considered Ghana's improving growth prospects, resilient external sector performance, and continued access to the capital markets (domestic and international) as essential factors in maintaining the rating and the outlook. Notably, the two rating agencies recognised the efforts of government to “build back better” through the innovative Ghana CARES (Obaatanpa) Programme, it said. The statement noted that both credit rating agencies acknowledged that Ghana's economy was recovering from the effects of the pandemic faster than its peers, adding that government should, however, focus more on growth and the implementation of the Ghana CARES Programme.

Source: ModernGhana

Kenya

Kenya to manufacture COVID-19 vaccines starting next year

Kenya will next year start manufacturing COVID-19 vaccines locally in collaboration with unnamed pharmaceutical firms in a move aimed at easing supply hitches that have derailed mass inoculation. Health Cabinet Secretary Mutahi Kagwe revealed in an internal vaccination blue print that the country has started the process of building a filling plant for the COVID-19 vaccines. A full-fledged vaccine manufacturing plant will be built by 2024, said Mr Kagwe. A fill and finish facility helps third parties put the vaccine from the main manufacturers into vials or syringes, sealing them and packaging them up for distribution. Many manufacturers use third parties to fill and finish their vaccines and African countries like Senegal, Rwanda and South Africa are in talks with investors to start the production of COVID-19 vaccines. Kenya plans to vaccinate 26 million adult Kenyans by the end of June next year and at least 10 million by Christmas this year. It has been acquiring doses of vaccines from Pfizer and Johnson & Johnson to supplement the Astrazeneca vaccines. Kenya would need to secure a partnership with a vaccine patent holder to manufacture COVID-19 vaccines.

Source: The EastAfrican

Kenya / Rwanda / Uganda

The East African Tourist Visa: an easy and cost effective way to visit Kenya, Rwanda and Uganda

The East African Tourist Visa (EATV) is an electronic travel permit for those travelling to and within Kenya, Rwanda and Uganda for tourism purposes. The EATV was introduced in 2014 as a joint initiative between these three partnering countries to boost regional travel and create opportunities for tourists to explore the diverse and exciting locations in East Africa. The EATV makes travelling to the East Africa region easier and financially more attractive, allowing any individual to visit all three participating countries in a single trip. The visa is a multi-entry, so there is no limit to the number of times a traveller could visit each of the three participating countries. Having a common visa also means that that the three participating states can jointly market their tourism attractiveness and collectively showcase a single product to consumers and potential travellers. With this comes renewed opportunities and cross border collaboration. Although the EATV experienced slow implementation initially, the participating nations intend to speed up the process post the COVID-19 pandemic to increase the ease of travel.

Source: ENSafrica

Nigeria

Uncertainty trails Nigeria’s production despite OPEC projection

Nigeria’s capacity to improve its crude oil production despite a higher price regime, remains undermined by deteriorating production capacity and technical disruptions, even as the Organization of the Petroleum Exporting Countries (OPEC) adjusts global demand potential. OPEC’s latest Monthly Oil Market Report (MOMR), published on Monday, 13 September showed that Nigeria pumped 1.27 million barrels per day (mbpd) last month, lower than 1.38mbpd in July. Oil has continued to trade above USD70 a barrel, with Nigeria unable to take advantage of the rally due to fuel subsidy and poor production capacity. According to the 2021 crude oil and condensate production report released by the Department of Petroleum Resources (DPR), Nigeria’s crude fell from an average 1.36mbpd in January to 1.23mbpd in August, representing a 9% decline. The DPR report revealed that difficulties in some oil terminals caused the decline in Nigeria’s oil output. In August, Shell Petroleum Development Company of Nigeria declared force majeure on Forcados crude oil.

Source: The Guardian

Rwanda / Democratic Republic of the Congo

RwandAir expanding its DRC presence

RwandAir will expand its footprint in the Democratic Republic of the Congo (DRC) this month through new routes of Kigali-Lubumbashi and Kigali-Goma, adding to the Kigali-Kinshasa one, which has been one of the busiest these past two years. The Kigali-Lubumbashi route will be launched on 29 September, followed by Kigali-Goma flights, as the airline moves to cement its presence in the DRC. The continued improvement in relations between the DRC and Rwanda since President Félix Tshisekedi came to power, has increasingly opened up the Congolese frontier to RwandAir. RwandAir’s launch of its first flights to Kinshasa a few years ago proved to be a masterstroke, as Congolese businessmen from the DRC hinterland embraced the airline with both hands, while transportation was also eased for Rwandans going to the DRC.

Source: The EastAfrican

Somalia

Somalia’s economy rebounding from “triple shock”

Somalia’s economy is rebounding from the “triple shock” that ravaged the country in 2020 – the COVID-19 pandemic, extreme flooding and the locust infestation. Real gross domestic product (GDP) growth is projected at 2.4% in 2021. This growth momentum is expected to continue in the medium term and reach pre-COVID-19 levels of 3.2% in 2023. The latest World Bank Somalia Economic Update reports that the economy contracted by 0.4% in 2020, less severe than the 1.5% contraction projected at the onset of the global pandemic. Higher-than-anticipated aid flows, fiscal policy measures put in place by the Federal Government of Somalia to aid businesses, social protection measures to cushion vulnerable households, and higher-than-expected remittance inflows mitigated the adverse effects of the triple shock. The report notes that the disruptions stemming from COVID-19 containment measures reduced federal and state revenue collection while increasing pressure to spend more on health and disaster relief.

Source: The World Bank

Tanzania

Tanzania acquires USD2.7-million more stake in Shelter Afrique

Tanzania has acquired an additional 1.24% stake in pan African housing financier Shelter Afrique for USD2.7-million. The extra capital injection has moved Tanzania’s shareholding to 1.54% from the 0.3% it held. Shelter Afrique chief executive Andrew Chimphondah said the support by shareholders is a vote of confidence in the company, which last year posted the first profit in six years. “We thank the government of Tanzania for choosing to increase her stake in Shelter Afrique despite the prevailing condition,” he said. “We are also grateful to other shareholders who have increased their stakes recently.” Tanzania’s capital payment reduces the shareholding of the top three shareholders – Kenya, Nigeria and the African Development Bank (AfDB). Kenya now owns 17.78% of the company from 18.72% it held in July. Nigeria and the AfDB now own 13.27% and 12.83%, respectively.

Source: The EastAfrican

Tanzania

Tanzania ratifies Africa free trade area treaty

Tanzania on Thursday, 9 September, ratified the agreement establishing the African Continental Free Trade Area (AfCFTA), effectively joining a pact connecting countries with a total gross domestic product of USD3.4-trillion. The Minister of Industry and Trade, Kitila Mkumbo, made the announcement via Twitter, noting that the country has joined a market of 1.2 billion customers. The ratification is an indicator of President Samia Suluhu Hassan's intention to return the country to regional integration. The ratification comes barely two months after the AfCFTA secretary general Wamkele Mene held discussions with President Samia Suluhu Hassan. Mr Mene sought the assurance of Tanzania’s commitment to the agreement to which the president promised to join “very soon”.

Source: The EastAfrican

Uganda

Uganda offers free land and tax incentives to Kenyan investors

Ugandan government officials have promised free land and tax incentives to Kenyan investors who want to set up processing industries in the land-locked country. Ugandan Agriculture State Minister Bright Rwamirama said the country has large tracks of land and farm produce, noting that investors only need to set up industries to process and do value addition on the farm produce. Mr Rwamirama said Uganda requires 20 tea processing plants to cover the surplus tea and package it for the international market. He reckons that the business climate is good – from production to post-harvesting and value addition. He said the country also needs modern storage warehouses to address post-harvest wastage. “When we call you to come and invest, we will also help you find a new market. We provide cheap credit to farmers... and Kenyans who invest in Uganda will get credit at the same rates as Ugandans,” explained Rwamirama.

Source: The Standard

Zambia

Zambia’s debt service arrears hit USD1.5-billion

The Zambian government has accrued cumulative debt service arrears of about USD1.5-billion following the debt service standstill put in place for all its non-multilateral creditors not participating in the Debt Service Suspension Initiative (DSSI). The Ministry of Finance however spent a reduced total of USD88.09-million as debt service payments comprising of principal pay down of USD65.17-million and interest payments of USD22.92-million, respectively, in the first half of 2021. According to information made available to the Zambian Business Times (ZBT), the significant reduction in external debt service payments in comparison to USD410.62-million recorded in 2020 for the same period was due to the debt service standstill that the government put in place for all its non-multilateral creditors not participating in the DSSI. This was aimed at allowing government time to review its debt portfolio in view of the scheduled restructuring discussions with the creditors.

Source: ZBT

Zambia

Zambian president promises to cut deficit, review mining policies

Zambian President Hakainde Hichilema recently said his new government would implement policies to reduce the fiscal deficit, restore economic growth and review mining policies. In his first address to a new session of parliament since his election in August, Hichilema said officials would also review agricultural policies, revise electricity prices and reform state power firm ZESCO. Last November Africa's second-biggest copper producer became the first country on the continent to default on its sovereign debt during the pandemic, after failing to keep up with payments on its nearly USD13-billion of international debt. "Rebuilding our economy is top on our agenda. We will implement policies to address the fiscal deficit while ensuring that confidence is restored in the markets," Hichilema said. "We have indeed inherited an economy that is in dire straits and requires bold and decisive action to be taken," he said, adding that his government was committed to halting the accumulation of expensive public debt. Zambia's external debt includes about USD3-billion in Eurobonds, USD3.5-billion in bilateral debt, USD2.1-billion owed to multilateral agencies and USD2.9-billion in commercial bank debt.

Source: Reuters