Seven reasons to be optimistic about Africa

Africa Brief: Business News from around the continent

MTN Group may buy Nigeria’s Visafone

ACQUISITION MTN Group has started the process of buying closely-held Visafone Communications of Nigeria as it seeks to expand in its largest market, according to two people familiar with the matter. Lagos-based Visafone is a wireless network provider founded in 2007 by Jim Ovia, a Nigerian businessman who also created Zenith Bank. The sources did not give the value of the transaction. “We will send a holding statement at the appropriate time,” Funmilayo Onajide, a spokeswoman for MTN’s Nigerian unit in Lagos, said yesterday. Bloomberg.

By Bloomberg

Publication: BUSINESS DAY

Read full story here

Buhari must now satisfy investors on appointments

MUHAMMADU Buhari won the race to lead Africa’s biggest economy by talking tough. The former Nigerian military ruler now faces the challenge of persuading investors he can assemble the right team to put those words into action.

Nigerian stocks were the world’s best performers over the five days through Tuesday At the end of February, they were global laggards. Dollar bonds rallied yesterday after posting the best returns in Africa last month.

Incumbent President Good-luck Jonathan conceded defeat, marking the first power shift since army rule ended in 1999.

By Neo Khanyile, Paul Wallace and Emele Onu


Read full story here

ZIMBABWE: Inflation likely to stay under 0%

ZIMBABWE’S inflation rate would probably remain below zero percent this year because of tight liquidity within the southern African nation and a weakening of the rand in neighbouring South Africa, the central bank said. Company closures, alongside “companies in distress”, had contributed to Zimbabwe’s lack of liquidity, the Harare-based central bank said in its quarterly report, released on Tuesday “A significant number of companies are also failing to pay their staff on a regular basis, accumulating salary arrears and further adversely impacting on aggregate demand,” it said. Zimbabwe trades mainly in US dollars, though other currencies including the rand, euro and British pound are also legal tender.

By Bloomberg


Read full story here

Eskom woes dim SA’s growth by 10%

SOUTH Africa’s economy could have been 10 percent larger if power shortages had not stifled growth and investment and put the nation’s debt at risk of being cut to junk, economists’ estimates show.

Eskom, which supplies about 95 percent of the coun­try’s electricity, is rationing supply because it cannot meet demand from aging plants following years of underinvest­ment. Its chairman stepped down last month after losing the board’s support over a deci­sion to suspend the chief exec­utive and three other top managers, leaving it without permanent leadership.

South Africa’s estimated economic expansion of 2 per­cent this year could have been at least 1 percentage point higher had it not been for the cuts, said Dawie Roodt, the chief economist at Efficient Group. Rolling blackouts have curbed mining and manufac­turing, both knocked by strikes that limited 2014 growth to the slowest pace since a 2009 reces­sion, and prompted rating downgrades.

Author: Rene Vollgraaff


Read full story here


Africa maybe on the rise but power supply is holding the continent back. It is estimated that 300 bn US dollars will be needed in order for all of Sub-Saharan Africa to have access to electricity in the next 15 years. On this Invest Africa special we get insights from Professor Mosad Elmissiry the head of the Energy Programmes at NEPAD; Andrew Herscowitz from Power Africa; Yash Krishna the managing director for Cummins Cogeneration Kenya Limited; and Segun Sowande, partner at KPMG.

Publication: CNBC  Africa

Watch the episode here

David Okwara

, , , , , , , , , , , , , , , , ,

No comments yet.

Leave a Reply

Twitter Linkedin Facebook YouTube RSS