Africa Brief: Local banks join power plant deal in Ghana and more…
Local banks join power plant deal in Ghana
South African banks and construction companies have been expanding activities in the rest of Africa, where energy is one of the fastest-growing sectors.
The $900m of debt and equity project finance for the Kpone Independent Power Plant and associated infrastructure in Ghana was closed by financiers and industrialists, including several South African banks.
Group Five announced in August it had been awarded the engineering, procurement and construction (EPC) contract worth R4bn for the Kpone project which is expected to take about three years to complete.
by Charlotte Matthews published in Business Day on 06/10/2014
Three African currencies to trade on JSE
THE JSE listed three African currencies on a new foreign exchange futures platform, the Nigerian naira, the Kenyan shilling and the Zambian kwacha, where they will be quoted against the rand.
The platform will allow participants to trade anonymously, with the JSE assuming the role of credit counterparty to all transactions.
by Reuters published in The Star, Business Report on 06/10/2014
SA can help pull African arbitration from overseas hands
Former Kenyan High Court judge, Edward Torgbor, says the parties in 99 percent of all African disputes are represented by lawyers and law firms based in the UK, the US and France. He warns that the time has come for Africa to wake up to the realisation that it remains a perennial outsider by choice.
South Africa is well placed to play a leading role as an important regional arbitration centre.
by Des Williams published in The Star, Business Report on 06/10/2014
Uganda: Chinese firms to mine copper
A consortium of Chinese firms won a contract to develop copper mines in Uganda after pledging $175 million (R2 billion) for upgrades.
Plans have been made to restart the Kilembe copper mine in Uganda, more than three decades after the facility was closed.
by Bloomberg published in The Star, Business Report on 06/10/2014
Zambia: Mineral royalty hike in pipeline
Zambia considers raising its mineral royalty rate and removing corporate tax for mining companies.
by Bloomberg published in The Star, Business Report on 06/10/2014
Zimbabwe power deal delayed
The penning of a $l.lbn (R12bn) deal with China’s Sinohydro has been “rescheduled to a later date”. On completion, the project is expected to add 600MW to the national grid.
The country produces an aver¬age of I200MW against a peak demand of 2200MW and relies on imports to supplement its production.
Excerpt from Zimbabwe power deal delayed published in The New Age on 06/10/2014
Ghana’s electrifying landmark project
THE $900m (R9bn) Kpone Independent Power Producer (Kipp) project in Ghana promises to be the start of a successful partnership between the private sector and the government, in delivering power infrastructure to the people of Ghana.
RMB is acting as global coordinator, initial mandated lead arranger, book-runner and hedging coordinator for the $650m debt facilities to fund the construction of the 350MW gas-fired power station to be located in Tema.
The plant will take just under three years to build by South African contractor, Group Five.
Excerpt from Ghana’s electrifying landmark project published in The New Age on 06/10/2014
Jury out on Nedbank’s Ecobank gamble
JSE-listed Nedbank maintains it knows what it is getting into by paying R5-billion for 20% of Togo’s Ecobank Transnational, but investors aren’t convinced Nedbank is getting a great deal. Last year, Ecobank’s financial director said she had been pressured to misstate financial results.
Ecobank is a powerhouse in West Africa — it is the top bank in Ghana, the third-largest in lucratively populous Nigeria and has a presence in three dozen sub-Saharan African countries.
Nedbank hopes to build a pan-African banking network, the strongest pillar of which will be Ecobank.
Excerpt from Jury out on Nedbank’s Ecobank gamble published in Business Times on 06/10/2014
Ebola health staff consider strike
Liberia faced a nationwide walkout by healthcare workers demanding danger money to care for Ebola patients, in an epidemic that has already killed 95 healthcare workers killed in Liberia alone, according to the World Health Organisation.
Dozens of patients at the clinic have died since then, but Liberia has banned reporters from Ebola clinics, making the claim impossible to verify.
National Nurses United is demanding protective equipment, including hazardous materials suits, and special Ebola training.
by AFP published in Business Day on 14/10/2014
Rothschild seeks African partners
“Where we have clients that see opportunities in Africa, we’ll work with them,” Mr Kingston said.
Rothschild said it has hired Trevor Manuel to help the firm meet client needs and identify opportunities across the continent.
by Renee Bonorchis published in Business Day on 14/10/2014
Nigeria set to expand its steel pipe output
The 2010 Nigerian Content Act requires international energy companies working in the oil and gas industry to end imports of pipes and buy from local firms to meet annual demand of 800 000 tons a year.
Since the law came into force four years ago, the NCDMB has been working out terms of engagement with prospective investors in mills.
by Yinka Ibukun published in The Star, Business Report on 14/10/2014
SABMiller relies on other African units after Zim’s Delta disappoints
Revenue and volumes of Zimbabwe’s Delta Corporation had taken a knock from declining disposable incomes.
Delta said it had since implemented “further interventions to stimulate volume and grow value”, while the “excise duty increase effected in December 2012 has continued to limit the affordability of Delta’s products” for the period under review.
by Tawanda Karombo published in The Star, Business Report on 14/10/2014
Cement firm sues minister
Zambia’s labour minister, Fackson Shamenda, accused an executive of the Nigerian company, Dangote, of attempting to bribe him.
Dangote said in a writ of summons: “The plaintiff has been brought into public scandal and its reputation has been injured.”
Excerpt from Cement firm sues minister published in The Star, Business Report on 14/10/2014
Growth rises in spite of attacks
Kenya’s economy accelerated in the second quarter thanks to fast growth in construction, manufacturing and financial services, which offset a slump in tourism following attacks blamed on Islamist militants.
Excerpt from Growth rises in spite of attacks published in The Star, Business Report on 14/10/2014
Race for Africa car markets speeds up
Developments in the wider African motor industry and their impact on South Africa’s automotive sector was one of the key focus areas at the South African Automotive two-day conference.
“Africa is being considered by the world as one of the final automotive frontiers and the South African supply chain is quite literally in a race to capture a significant share of the opportunities that exist,” said Robert Houdet, the executive director at the National Association of Automotive Components and Allied Manufacturers of South Africa (Naacam).
Excerpt from Race for Africa car markets speeds up published in The New Age on 14/10/2014