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issue 440 | 20 Mar 2022

East / Central Africa

Equity Bank’s USD6-billion ‘Marshall Plan’ for SMEs

Equity Bank, which is East Africa’s largest banking group and led by James Mwangi, is planning extensive assistance to boost the private sector in its six countries of operation. Through its Regional Private Sector Economic Recovery and Resilience Stimulus Plan, Equity Group intends to support small and medium-sized enterprises (SMEs) in East and Central Africa’s agriculture, manufacturing and logistics, trade and investment, social and environmental sectors over the next five years. The package is substantial: USD6-billion, which was equivalent to almost 70% of Equity’s total balance sheet in 2020. The group led by Kenya’s James Mwangi had a total balance sheet of about USD9-billion, according to the latest figures published on 31 December 2020. “This recovery and resilience plan is a kind of Marshall Plan, in which we commit USD6-billion to support the continent’s industrialisation by helping SMEs and creating 50 million direct and indirect jobs in our countries of operation over five years,” Mwangi told The Africa Report. The bank holding company has subsidiaries in Kenya, Uganda, South Sudan, Tanzania, Rwanda and the Democratic Republic of the Congo – as well as a representative office in Addis Ababa, Ethiopia.

Source: The Africa Report

Ethiopia

Addis inks USD29-million deals with China firms for public transport upgrade

Authorities in Ethiopia’s capital Addis Ababa have inked a deal worth USD29.17-million with two Chinese companies to modernise the transport sector, the state-run Ethiopia Press Agency (EPA) reported on Tuesday, 15 March. The first agreement valued at USD15-million will enable the Addis Ababa city government to purchase 110 buses from China’s leading bus maker, Yutong, within eight months. The city will also integrate digital systems in its public bus transport system among other upgrades at a cost of USD14.17-million, according to details in the second agreement. The pact was signed between the Addis Ababa city administration and Chinese Hisense TransTech Co., Ltd. The Ethiopian government is investing in the transport and logistics sector with a view to maintaining the country's economic growth trajectory. In a 10-year transport sector development plan for the construction of road and rail projects, the country hopes to build up to 1 600 kilometres (km) of roads up from the current 301 km, Road Infrastructure Planning Team Head at the Ethiopian Road Fund, Sadiya Beshir said on Monday, 14 March. Some of the expressways so far built in the country include the Addis Ababa (Adama and Modjo), Hawassa, and Dere Dawa (Dewele).

Source: The EastAfrican

Gabon

Gabon’s first private sector-led hydropower plant is in the works

The Multilateral Investment Guarantee Agency (MIGA) has issued guarantees to Meridiam for equity investments into Asonha Energie SA, which will build and operate the 35 megawatt Kinguélé Aval Hydropower Plant in Gabon. Gabon has among the highest potential for hydropower in Africa. The government of Gabon is therefore taking steps to transition into sustainable energy sources and create a single national integrated grid using hydropower. The government intends to rely on independent power producers (IPPs) to exploit its largely untapped hydro potential. The 20-year guarantees totalling EUR25.3-million (approximately USD28.7-million) provide protection from breach of contract, expropriation, transfer restriction and currency inconvertibility, and war and civil disturbance. Gabon has a comparatively high national electrification rate of 93% with about 374 000 customers connected to its five regional interconnected networks. However, the country’s power generation capacity is under strain due to the growing population, increased urbanisation and industrial development. 

Source: ESI Africa

Ghana

eCedi usage will be free of charges – Bank of Ghana

The Bank of Ghana (BoG) has disclosed that the eCedi, the Central Bank Digital Currency which it intends to issue will be free of transaction charges to consumers just as in the usage of cash. Additionally, the banking regulator said in a report released recently that the eCedi was the digital equivalent of the physical cedi by design and as such would not bear interest (i.e. has a zero interest rate), just as cash. By this approach, the BoG is hopeful that the eCedi would be a strong contender of cash, promote competition in the payment market and facilitate the provision of innovative value-added services to individuals and businesses by banks and payment service providers at affordable fees and charges. However, the BoG maintains that the eCedi model recognises and takes into account the value-added service provided by banks, specialised deposit-taking institutions and payment service providers to facilitate access to and use of eCedi and compensate accordingly. "In accordance with the liberalisation ethos of the Ghanaian financial service industry, the BoG does not intend to interfere with the business models of banks, FinTech companies, and merchants regarding fees for eCedi-related services," the report said. 

Source: Graphic Online

Guinea

Nimba Development Company to develop iron ore industry in Guinea

Nimba Development Company (NDC), a modern mining company focused on resource development in West Africa, has been transferred control of Société de Développement Nimba (SDN), formerly Zali Mining S.A. and prior to that West African Exploration S.A. (WAE), the owner of the Nimba Iron Ore Project. Alongside NDC, which has an 85% shareholding, the government of Guinea holds the remaining 15% in SDN. NDC and the government of Guinea have agreed to work together to advance the development of the Nimba Iron Ore Project and associated transport infrastructure to encourage responsible economic development in the Nimba region of Guinea. NDC is a United Kingdom registered company with an international, mining experienced management team and Guinean and international shareholders. SDN is a Guinean registered company with rights to develop the iron ore assets adjacent to, but not intruding into, the Mount Nimba Strict Nature Reserve.

Source: Mining Review Africa

Kenya

IFC to buy KES4.2-billion of mortgage firm’s bonds

The International Finance Corporation (IFC) will buy USD36.97-million (KES4.2 billion) worth of bonds issued by Kenya Mortgage Refinance Company (KMRC), becoming one of the largest debt investors in the firm. The disclosure comes after KMRC kicked off its fundraising last month when it raised KES1.4-billion in the first of a series of bond sales that will ultimately raise an aggregate of KES10.5-billion. “IFC will serve as an anchor investor in KMRC's first medium-term note programme of up to KES10.5-billion (USD93-million) by purchasing up to 40% of the bonds,” the institutional investor said. To this end, the global financier says its board of directors has approved an estimated total investment of USD36.97-million (KES4.2-billion). The IFC indicated that it participated in KMRC’s first bond sale, committing USD5.5-million (KES628-million) to the transaction which was oversubscribed nearly six times as investors placed bids of KES8.1-billion. “IFC is expected to provide up to USD5.5-million (KES628-million) in the form of a local currency facility to support the first issuance (approximately USD12-million) of a bond by KMRC that will contribute to improved access to competitive housing finance,” the global financier said.

Source: Business Daily

Kenya

Kenya receives a USD750-million boost to support economic transformation post-pandemic

In an effort to help accelerate Kenya’s ongoing inclusive and resilient recovery from the COVID-19 crisis, the World Bank has approved a USD750-million Development Policy Operation (DPO) that will help strengthen fiscal sustainability through reforms that contribute to greater transparency and the fight against corruption. The DPO is the second in a two-part series of development operations initiated in 2020 that provides low-cost budget financing along with support to key policy and institutional reforms. The DPO organises the multi-sector reforms into three pillars: (1) fiscal and debt reforms to make spending more transparent and efficient, and enhance domestic debt market performance; (2) electricity sector and public-private partnership (PPP) reforms to place Kenya on an efficient, green energy path, and boost private infrastructure investment; and (3) strengthening the governance framework of Kenya’s natural and human capital which includes the environment, land, water and healthcare.

Source: World Bank

Kenya

NOCK gets 30% fuel quota in new plan to avert shortages

The National Oil Corporation of Kenya (NOCK) will be handed exclusive rights to import a third of all fuel products into the country, in changes aimed at protecting the parastatal in a deep financial crisis. If the sector regulator has its way, NOCK will ship in 30% of Kenya’s super, diesel, kerosene and cooking gas and the imports will be used to provide strategic stocks for the country and avert shortage of the commodities mainly due to disruptions globally. The proposals are contained in the Draft Petroleum (Importation) (Quota Allocations) Regulations, 2022 and are aimed at boosting NOCK’s cash flows in an industry where it has struggled to keep pace with multinationals. But they are likely to be met by stiff opposition from the rest of the industry players since they would tip the scales in favour of NOCK. “The Petroleum Products Quota Allocation shall be imported by the [NOCK],” reads draft regulations that were published by the Energy and Petroleum Regulatory Authority last month for public scrutiny.

Source: Business Daily

Mozambique

Mozambique joins collaborative ICT data collection initiative developed by AfDB

The African Development Bank (AfDB) has extended membership of a digital data supervision system known as the Remote Appraisal Supervision, Monitoring, and Evaluation (RASME) project to Mozambique, making it the sixth African country to benefit from the tool which enhances project-related data collection in remote areas. RASME is a partnership of the AfDB and the World Bank's Geo-Enabling initiative for Monitoring and Supervision and KoBoToolbox teams. The digital data gathering suite of tools being used for the RASME project is based on the KoBoToolbox platform, an open-source information and communications technology (ICT) solution developed by researchers affiliated with the Harvard Humanitarian Initiative. The initiative uses mobile devices and personal computers to enable bank staff to remotely collect digital project data directly from the field in real-time. The onset of the COVID-19 crisis has sharpened the need for remote data collection tools. Mozambique's Deputy Minister of Economy and Finance, Carla Alexandra Louveira, and the AfDB's country manager, Cesar Mba Abogo officially launched the initiative.

Source: AfDB

Namibia

Namibia export earnings drop by 24%

For the month of January 2022, Namibia's export earnings stood at NAD7.6-billion, representing a decrease of 24% monthly, while the imports bill amounted to NAD11.7-billion, down by 6% monthly. According to the Namibia Trade Statistics bulletin for January 2022 recently released by the Namibia Statistics Agency (NSA), these trade figures resulted in a trade deficit of NAD4.1-billion, compared to NAD2.5-billion recorded in December 2021. The value of exports in January 2022 decreased by 24% to NAD7.6-billion from its December 2021 level of NAD10-billion. On the other hand, when compared to its level of NAD6.2-billion recorded in January 2021, exports increased by 22%. Imports stood at NAD11.7-billion, reflecting a decrease of 6% month-on-month and an increase of 24.9% on a yearly basis. Following these developments in both directions, NSA stated that Namibia’s total merchandise trade (exports plus imports) with the rest of the world decreased by 14% from its December 2021 level of NAD22.5-billion to NAD19.3-billion recorded in January 2022. On the contrary, total trade value increased by 23.8% when compared to NAD16.8-billion recorded in January 2021.

Source: New Era

Nigeria

AfDB secures USD15.6-billion for Lagos-Abidjan highway corridor

The president of the African Development Bank (AfDB), Dr Akinwumi Adesina, announced that the bank has secured USD15.6-billion for the construction of the Lagos-Abidjan highway corridor, which would ease transportation across West Africa. He made this announcement during the 2021 Africa Investment Forum virtual boardroom closing session on Thursday, 17 March. The AfDB president said, “the biggest deal for the boardroom is the USD15.6-billion deal for the Lagos-Abidjan highway corridor. The 46-lane highway corridor will connect Lagos, Cotonou, Lome, Accra and Abidjan.” According to him, this project would support trade in West Africa, impacting the lives of over 500 million people, reducing transport costs and increasing intra-regional trade volume. “It will support 75% of the trade in the West African region. It would reduce transport cost by 48%. It would increase intra-regional trade volume by 15% to 25%. It would connect land-locked cities to port countries,” he added.

Source: The Punch

Nigeria

Federal government to auction NIMEP to fund mineral exploration

The federal government has announced plans to conduct more exploration activities in the nation’s mining sector from the sale of its National Integrated Mineral Exploration Project (NIMEP). According to the Minister of Mines and Steel Development, Olamilekan Adegbite, at the Nigeria Mining Summit organised by the Lagos Chamber of Commerce and Industry (LCCI), NIMEP would be sold through auction to have a revolving fund to carry out more exploration activities in the country. He added that under the scheme, about USD50-million has been spent to explore four solid minerals out of the 44 minerals discovered. He added, “NIMEP is a government programme to show the way, but the money is still very small and [with] the USD50-million we had, we were only able to do four minerals out of the 44 minerals discovered. Exploration is a very huge capital intensive project so the USD50-million could only target four minerals… We need our banks, especially the CBN, to establish a desk in commercial banks to understand mining and design the risk portfolio to unlock the enormous benefits from the sector.”

Source: The Guardian

Nigeria

Lekki seaport will contribute USD360-billion to Nigeria’s GDP – FG

The Lekki Deep Seaport in Lagos Free Trade Zone is going to add about USD360-billion to Nigeria’s GDP within 45 years, the federal government has announced. The Minister of Transportation, Rotimi Amaechi, who announced this after inspecting the seaport, also stated that the facility would begin commercial operations in September this year. He said the private sector-funded seaport was being constructed in accordance with the time schedule, stressing that in three months’ time the facility would have cranes. Amaechi said, “I am impressed with what has been done here compared with the last time we came here. There is a huge improvement. And I am being told by the management that by June we will be expecting the cranes and by September as we agreed, they should commence commercial activities.” 

Source: The Punch

Rwanda

KfW signs EUR56-million cheque for climate and sustainable development

Rwanda gets EUR56-million from Germany to support its climate goals. The funds will also support the implementation of sustainable development projects in the East African country. Relations between Rwanda and Germany are accelerating on the climate front. In this financing allocated by the German Development Agency (KfW), USD26-million is intended to support measures to adapt to climate change. This is to support Rwanda in the implementation of its nationally determined contributions (NDCs). Upon signing the Paris Climate Agreement in 2015, Rwanda committed to reducing its greenhouse gas emissions by 38% by 2030. In 2020, Rwanda announced an ambitious climate plan, with an overall cost of USD11-billion. As part of this policy, the Rwandan government plans to reduce its emissions by 4.6 million tonnes through the deployment of renewable energy (solar and hydroelectric), improving energy efficiency in industrial processes, introducing emission standards for vehicles, deploying electric vehicles and promoting the use of biogas on farms. 

Source: AFRIK 21

Tanzania / Kenya

Tanzania, Kenya resolve 10 more trade hindrances

Tanzania and Kenya have resolved 10 more trade barriers to grow the trade between the two member states of the East African Community (EAC). President Samia Suluhu Hassan visited Kenya last May and met her counterpart Uhuru Kenyatta to mend the then deteriorating bilateral ties. The two leaders ordered ministers and other officials to meet and discuss the issues. Through the follow-up meetings, some 56 issues were reported to have been resolved in 2021, prompting the growth of trade between the two countries by 38% to USD765-million in the same year, according to a communique of the latest meeting. Recently, the ministers and other government officials met for the follow-up meeting where 10 more issues were resolved while 14 outstanding issues are expected to be resolved by June this year, according to the communiqué of the recent meeting. “The meeting commended the ministries, departments and agencies (MDAs) for their outstanding work in supporting this bilateral trade meeting. Further, the meeting called upon the MDAs to remain engaged in supporting the implementation of the commitments made in resolving trade-related issues,” the communiqué stated.

Source: The Citizen

Uganda / Democratic Republic of the Congo

Kinshasa to host the 2nd edition of the Uganda-DRC Business Forum

The Ugandan Embassy in Kinshasa and the government of the Democratic Republic of the Congo (DRC) will host a Joint Business Forum from 22-24 March aimed at building foundations that will lead to bolstering bilateral trade between Kampala and the DRC. The Joint Business Forum will present opportunities for increased collaboration between the DRC and Uganda, with presentations and panel sessions that will include Ugandan private and public sector organisations trading with the DRC's growing sectors. According to organisers, the much-anticipated second edition of the forum will be hosted under the theme: Deepening Bilateral Trade, Partnerships, Knowledge Transfer for Mutual Peace and Prosperity”. The other areas of the forum’s focus will include promoting trade between the two countries through sharing information on improved trade facilitation, enhanced trade in goods and services, as well as investment opportunities. The forum will offer a platform for sharing the rich business potential that exists between the two neighbouring countries and exploring ways of economically leveraging from the cordial bilateral relations that have been heightened by continuous engagements at the highest level.

Source: The Independent

Zambia

New mining policy coming – Kabuswe

Minister of Mines and Minerals Development, Paul Kabuswe, says his ministry will soon announce the new mining policy. Mr Kabuswe says the new mining policy will allow many young people to participate in the mining sector. He says previously, only few youths were benefitting from the mining industry, a thing he said will not be embraced because of the high numbers of unemployed youths in the country. The minister said this shortly after President Hakainde Hichilema’s national address to the nation on the progress made on the application of national values and principles recently. Minister of Commerce, Trade and Industry, Chipoka Mulenga, said his ministry will work round the clock to ensure that people begin to consider buying local products as directed by President Hichilema.

Source: Lusakatimes

Zambia

Zambian entities to be given preferential treatment

President Hakainde Hichilema has signed the Electronic Government Act which will allow Zambian registered entities to be given preferential treatment in the procurement of information and communications technology (ICT) services and goods. This development means that multinational corporations (MNCs) will be required to partner with local companies whenever there is a requirement to supply and deliver ICT services to government. Confirming the development, Smart Zambia Institute national coordinator, Percy Chinyama said President Hichilema signed the Electronic Government Act No. 41 of 2021 on 7 January 2022. “This Act empowers Smart Zambia Institute to issue, implement and enforce guidelines that will require international companies to partner with local entities for any ICT project or services to be undertaken in the country.

Source: Zambia Daily Mail