Africa Brief: Angola: investment in its minerals, $1bn Eurobond issue, Nigeria, South Sudan and more
Angola goes full steam ahead in attracting investment in its minerals
Angola, the world’s fifth-largest diamond producer, had cut mine taxes and would spend billions of dollars to attract investment into mineral deposits. The new law is very clear with lots of security for investors, which gives them certainty, transparency and guaranteed mining rights. Angola wanted to diversify its earnings away from the crude oil and diamonds that made up almost all its. Companies with ties to Israel’s LR Group had projects to mine Angola’s estimated 400 million tons of phosphorus and make fertiliser. Australian-listed Minbos Resources had an equal share of the Cabinda Phosphate Project with Petril Projects, a subsidiary of LR Group, and planned to start production in 2015.
Vale Fertil, an Angolan division of LR Group, would begin output by the end of next year from a project in the northern province of Zaire. The Zaire project is estimated to cost $lbn to construct a power plant, sea port and factories to process phosphate into ammonia, state news agency. Talks with Alcoa were ongoing to build an aluminium smelter to produce 750 000 tons of the metal a year. In October 2011, Alcoa said it was targeting first production in 2020 and had signed a deal for a 12-month exclusivity period to negotiate a power contract and cooperation agreement with the government.
For the full story, read Angola goes full steam ahead in attracting investment in its minerals by Colin McClelland, published by The Star, Business Report on 08/04/13
Angola plans $1bn eurobond issue
Thwarted by the global financial crisis in 2009 and debt arrears in 2011, the chance of Angola launching a debut eurobond are better third time around thanks to its booming oil economy and foreign hunger for African debt. When Angola raised $1bn last year in a private placement of seven-year paper via a Russian bank, market sources said the deal was opaque but added that it was well subscribed. Other African countries are also seizing the opportunity. Kenya plans to sell a debut $1bn eurobond in September, Nigeria is planning its second issuance and Ghana is mulling re-financing one bond and issuing another.
For the full story, read Angola plans $1bn Eurobond issue by Reuters, published by The Star, Business Report on 08/04/13
Nigeria: Bonds added to Barclays index
Nigerian sovereign bonds were added to a $1.7 trillion (R15.4 trillion) local currency emerging-market index by Barclays. The debt had a weighting of 0.97 percent at Thursday’s close. It predicted adding the debt of Africa’s biggest oil producer to its indices would lure $1.5 billion to the west African nation.
For the full story, read Nigeria: Bonds added to Barclays index by Bloomberg, published by The Star, Business Report on 08/04/13
Ghana: Surging bourse attracts listings
Ghana’s stock index, the world’s best performer this year, was poised to extend its gains as it attracted three new listings. The 35-member Ghana Stock Exchange composite has risen 46 percent so far this year. It leads Kenya’s Nairobi all share index and the Nigeria Stock Exchange all share index, the next best performers.
For the full story, read Ghana: Surging bourse attracts listing, by Bloomberg, published by The Star, Business Report on 08/04/13
South Sudan: Oil production starts up again
South Sudan restarted oil production on Saturday, ending a 15-month row with former civil war foe Sudan, marking a breakthrough in relations after bloody border clashes last year.
For the full story, read South Sudan: Oil production starts up again by SAPA- AFP, published by The Star, Business Report on 08/04/13
Shunned Zimbabwe turns to Dubai deals
For years, President Robert Mugabe’s Zimbabwe has faced opprobrium for its human rights abuses, farm seizures and political repression. Over the past five years, Dubai — known for its relentless pursuit of new markets and willingness to deal with all manner of regimes — has become a significant conduit for legal Zimbabwean exports of rough diamonds. For Zimbabwe’s cash-strapped government, diamond sales should be an important source of revenue. The diamond bourse is in Almas Tower, the region’s tallest commercial tower, part of the fast-growing Dubai Multi Commodities Centre, which boasts five new corporate registrations a day. Not only has the emirate become a go-to hub for African business, but many Asian firms also now choose Dubai as a bridgehead into sub-Saharan Africa, observers say, as well as a Middle East centre. Three big Chinese banks have moved to Dubai, joining other international lenders that use their global presence to finance Chinese construction and manufacturing companies.
For the full story, read Shunned Zimbabwe turns to Dubai Deals Shunned Zimbabwe turns to Dubai deals by Simeon Kerr and Andrew England, published by Business Day on 08/04/13